1. Trading offer & request

At this moment there are two OFFERS for 3500 tons of malt on the trading portal www.e-malt.com

• Offer for 1-1000 mtons of malt, 6RW, crop 2002, bags in container, delivery 1/6/2003 - 31/8/2003, at EUR 293.50 /mton, FOB Antwerp. (to see and make a bid to the malt offer, please click here to view code MF1104P1123)
  
  
• Offer for 1-2500 mtons of malt, 2RS Scarlet/ Aspen 50/50, crop 2002, bulk, delivery 1/5/2003 - 31/7/2003, at EUR 284.00 /mton, FOB Antwerp. (to see and make a bid to the malt offer, please click here to view code MF1104P1134)
  
  

 Top Industry News 

• The leading Russian brewer Baltika has successfully realized the construction of a new brewing plant “Baltika-Khabarovsk” ... Click here
  
  
• The largest brewer in Chile CCU has reported its sales volumes increased 7.6% for the first three months of 2003 ... Click here
  
  
• Increased leverage from the Kronenbourg acquisition has led the credit rating agency Fitch Ratings to downgraded the senior unsecured debt ... Click here
  
  
• The Leader in Latin Beverages, Fomento Económico Mexicano, S.A. de C.V.(FEMSA), and Belgian brewer Interbrew jointly announced ... Click here
  
  
• According to Belpivo Association, the volume of Byelorussian beer market accounts 300 million litres ... Click here
  
  
• In domestic EU markets more business has been done for malt of crop 2003 / delivery 2004 ... Click here
  
  
• The Russian electric power station OAO Riazanskaia has signed an agreement with the French Group Soufflet about building a malting plant ... Click here
  
  
• New barley crop prospects are good in Western Europe, fair to poor in Eastern Europe ... Click here
  
  
• World trade in feed and malting barley has been extremely thin in March ... Click here
  
  
• The remaining export surplus of old crop EU malting barley is 300 thousand tons ... Click here
  
  

More news is available on site www.e-malt.com  

• The Dutch brewer Heineken has successfully ended contract with the Russian distributor First Federation, despite a suit from the Russian claiming Heineken... ...more info



• The Board of Scottish & Newcastle, Britain’s leading brewer, announced on April 10 that Tony Froggatt, 54, would become Chief Executive of the group ...more info



• The Danish ingredients-company Chr. Hansen has signed a contract with the only brewery in Iran, Behnoush. Chr. Hansen shall supply the brewery with malt color for the beer brand Delster ...more info



• A Non-Residential Indian entrepreneur has launched a new brand of beer to go with the spicy Indian food in England ...more info



• USA: The Georgia House of Representatives has approved a bill that would raise the maximum alcohol content of what is defined as beer from 6% to 14% ...more info



• British Chancellor, Gordon Brown, proposed a tax raise of GBP 0.01 per pint of beer in a speech regarding the Budget on April 9 ...more info



• The Brewers' Association of America, the 61-year trade association for small brewers announced the release of its annual survey of brewery businesses, the Small Brewers' Growth Index ...more info



• One of the three biggest beer producers of Ukraine, ZAO Oboloni, has reported good results for the first quarter of the current year ...more info



• Some of the best growers in Western Canada say good fortune is the key to having their barley selected for malting year after year ...more info



• Cardiff-based brewer and pub company SA Brain & Co. Ltd has announced record profits for 2002. Turnover has risen by 9.1% ...more info



• Interbrew, the third largest brewer in the world, and HSBC, one of the largest banking and financial services groups in the world ...more info



• Craft beer sales were up last year in the US, according to two studies from the Association of Brewers and the Brewer's Association of America ...more info



• Molson may be pushing the boundaries of Canada's beer advertising regulation with its new campaign featuring the immensely popular sports commentator Don Cherry ...more info




2. Brewery News

The leading Russian brewery Baltika has successfully realized the construction of a new brewing plant “Baltika-Khabarovsk”, a Baltika press release reported. “The most up-to-date brewery in the Far East part of Russia and the whole region of Asia-Pacific Ocean was built only in 15 months.” Baltika invested about US$ 54 million. A solemn inauguration of the new plant was held on April 11, 2003. “Baltika-Khabarovsk” will produce about 100 million litres of beer per year. The plant starts working with the output of a new beer brand “DV” (Dalnii Vostok – Far East). The plant occupies an area of 10.5 ha.

The largest brewer in Chile CCU has reported its sales volumes increased 7.6% for the first three months of 2003, versus the same period last year. The company sold about 3.06 million hl in the quarter, of which 2.48 million hl were produced in Chile and 580,000 in Argentina, the company said in a statement. CCU is controled by Chile's Quinenco and German brewer Paulaner. Dutch brewer Heineken is in the process of acquiring Paulaner's stake in the company.

Increased leverage from the Kronenbourg acquisition has led the credit rating agency Fitch Ratings to downgraded the senior unsecured debt and short-term ratings of Scottish & Newcastle to BBB and F3 from A-and F2 respectively. The rating outlook was also changed to stable from negative on the UK's largest brewer. "The rating downgrades reflect the significantly increased leverage from the debt-financed Kronenbourg acquisition for 1.5 billion sterling... the group's negative cashflow given its capex demands going forward and the effect of a larger dividend payment on Scottish & Newcastle's enlarged equity base," Fitch said in a statement. It said current debt levels were not expected to decline. Fitch also pointed at possible increases in pension contributions, which would negatively impact financial ratings. It said it expected the company's pension deficit to have widened from 188 million sterling in April 2002, as 80% of its assets were held in shares.

The Leader in Latin Beverages, Fomento Económico Mexicano, S.A. de C.V.(FEMSA), and Belgian brewer Interbrew jointly announced on April 9 that Bass Ale® will enter the Labatt USA (LUSA) portfolio for a twelve to eighteen month period beginning July 1, 2003, when U.S. importing and marketing rights for the brand will be transferred from Guinness Bass Import Company to Interbrew. As part of the LUSA portfolio, Bass Ale® will be given the full support of Interbrew, including a commitment to the development of marketing plans, distributor programming and trade support. This agreement also allows the existing core brands of the Labatt USA portfolio to benefit from incremental marketing support and sales resources, Interbrew reported...more info

According to Belpivo Association, the volume of Byelorussian beer market accounts 300 million litres, and 200 million litres of beer is produced in Byelorussia. Russian brewery Baltika exports more actively to Byelorussia (13% of local market), then comes Pivovarni Ivana Taranova (about 10%) and Ochakovo (below 10%). Now the export conditions to Byelorussia are much harder. The companies should have license for every 100 thousand llitres of exported beer. According to Baltika importers should pay US$ 13500 for every 100 thousand llitres that is 25% more then before April 1, 2003. Consumer will pay the extra expenses.

3. Malt News

In domestic EU markets more business has been done for malt of crop 2003 / delivery 2004. Prices came under pressure from negative news of the old crop malt market and positive news of the expected barley crops in 2003. Reported prices ranged from EUR 300,- to 290,- later in the month (delivered breweries, average price for 2004).

The Russian electric power station OAO Riazanskaia has signed an agreement with the French Group Soufflet about building a malting plant in Novomichurinsk city. The plant will be built on the area near the electric power station. Project costs are estimated at US$ 31 million. Soufflet Company will make the investments. The production capacity of the plant is evaluated at 100 thousand tons.

4. Barley News

New barley crop prospects are good in Western Europe, fair to poor in Eastern Europe and fully dependent on rainfalls in North America and Australia. In view of the bad damage to winter grains in Russia and Ukraine and to a lesser extent all over Central and Eastern Europe, Germany and France the acreage of spring barley will be extended. However, late planting in the CEEC will affect yields. Trade in feed barley will possibly get a boost from little availability of Russian and Ukrainian feed wheat.

World trade in feed and malting barley has been extremely thin in March. The total EU licence program consisted of 28 thousand tons. In the Black Sea Markets, Russia claims to have no more old crop barley for sale and there are no Ukrainian FOB quotes either. Mediterranean buyers seem covered until their new crop positions, and traffic to the Middle East is certainly hampered by the war in Iraq. The EU is the cheapest barley origin at US $ 103,- to 106,- FOB main ports.

The remaining export surplus of old crop EU malting barley is 300 thousand tons, or maximum 400 thousand tons, if one includes lower quality grades. That is not much in view of possible demand from China, America and local industries. But business since the beginning of the calendar year has been close to zero, and the barley longs in France and Denmark have become increasingly nervous and depressed. Price levels crashed for old crop barley and pulled new crop down with them.