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E-Malt.com Newsletter 41a
October 06 - October 08, 2014
Quote of the Week
"Don't watch the clock; do what it does. Keep going."
Sam Levenson
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Currency Rates
Base Currency: US Dollar
on October 08, 2014 |
Base Currency: Canadian Dollar
on October 08, 2014 |
| |
1 USD = 0.7916 EUR
1 USD = 0.6221 GBP
1 USD = 1.1166 CAD
1 USD = 1.1383 AUD
1 USD = 108.5870 JPY
1 USD = 2.4220 BRL
1 USD = 39.8450 RUB
1 USD = 6.1464 CNY
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1 CAD = 0.8957 USD
1 CAD = 0.5572 GBP
1 CAD = 0.7091 EUR
1 CAD = 1.0197 AUD
1 CAD = 97.2653 JPY
1 CAD = 2.1695 BRL
1 CAD = 35.6906 RUB
1 CAD = 5.5055 CNY
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Currency Rates Chart
Equities of the Largest Breweries
USA: Maltsters concerned about supply of malting barley this year
...Click here
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USA: Craft beer drinkers are more diverse than ever
...Click here
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USA: TTB simplifies excise tax regulations for small brewers
...Click here
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USA, ID: Rains cause significant damages to Idaho barley fields
...Click here
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Canada: New beer standard to support Canada's brewers
...Click here
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USA, MO & SC: Boulevard Brewing to have seven distributors in South Carolina
...Click here
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USA, IN: Goshen Brewing Company to open by spring 2015
...Click here
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USA, AL & TN: Back Forty Beer Co. beers to be distributed in Nashville
...Click here
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Japan: Asahi under pressure to step up acquisitions - CEO
...Click here
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World: SABMiller boss says attempt to buy Heineken was not a defensive move
...Click here
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France: Wheat and barley exports increase in July 2014
...Click here
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South Korea: Oriental Brewery quickly losing market dominance after “disinfectant odor” scandal
...Click here
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Romania: First-half beer sales drop 9% because of excises increase
...Click here
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Japan: Asahi Group Holdings head optimistic about Japan’s alcohol industry
...Click here
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World: Global Scotch whisky sales down 0.8% last year
...Click here
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Germany: Spring and winter barley production expected to increase this year
...Click here
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Australia: Any takeover of Australia’s Coopers Brewery is now much harder to succeed
...Click here
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UK: Second set of AHDB/HGCA Cereal Quality Survey confirms lowest average nitrogen content of barley since 1977
...Click here
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World: SABMiller convinced it has the right marketing brew to woo female consumers
...Click here
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Australia: Australia’s beer industry being redefined by craft breweries
...Click here
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The Czech Republic: Microbreweries and craft brands reviving Czech beer industry
...Click here
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Germany: Beer consumption down at this year’s Oktoberfest
...Click here
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Graph of the Week
Table of the Week
France Barley Supply and Distribution
Prices Evolution
Barley Prices
Canadian Malting and Feed Barley Prices
US Malting and Feed Barley Prices
French Malting and Feed Barley Prices
Theoretical Malt Prices
Canadian Malt Prices
US Malt Prices
Theoretical EU Malt Prices
Scientific Digest
Why are dry hopped beers more bitter?
ABSTRACT
This is a popular questions, and though it was not really
proven so far, the idea that additional alpha acids and
polyphenols as well as a certain brain illusion is well
accepted. But here are some facts: This US team analysed
dry hopped beers for their content of alpha and beta acids,
humulinones and polyphenols. The correlation testing with
the sensory trials showed that the bitterness contributed by
dry hopping is a combination of polyphenols and
humulinones! Also a strong correlation of aroma intensity
and bitterness intensity was proven. So it is a combination
of actual bitter tasting compounds and a portion of a brain
based illusion - cheers!
Read more
Source: Barth Innovations
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These Days in Business History
October 06
1781 Benjamin Hanks patents self-winding clock
1889 Thomas Edison shows his 1st motion picture
October 07
1806 Carbon paper patented in London by inventor Ralph Wedgewood
1910 Henry Ford institutes moving assembly line
1930 1st infra-red photograph, Rochester, NY
October 08
1846 George Westinghouse, Jr., is born in Central Bridge, N.Y. He later invents the Westinghouse air brake, making train travel safe and comfortable, and founds the Westinghouse Electric Co.
1869 J Frank Duryea was born, inventor of 1st auto built & operated in USA
2003 Arnold Schwarzenegger is elected the governor of California
Agenda
News Articles
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USA: Maltsters concerned about supply of malting barley this year
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With the barley harvest wrapped up in most US areas, the maltsters are finally able to assess the total crop and there is concern
...More info on site
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USA: Craft beer drinkers are more diverse than ever
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A new report from Bart Watson, the US Brewers Association’s (BA) staff economist, found that an influx of female drinkers, greater engagement in the Hispanic market, and geographic diversity of brewery locations have played pivotal roles in shaping a more well-rounded craft consumer base, brewbound.com reported on October, 7.
Today’s drinkers look a bit differently than they did in 2001.
According to data from the University of Maryland’s survey research center, the typical craft beer drinker in 2001 was a few things, if not totally stereotypical: white, male, 39 years of age and bearded. That same 39-year old male drinker also boasted a higher education, a “relatively high income,” and was “geographically concentrated,” the survey found.
While no updated median has been provided, specific statistics support the claim of a new demographic.
Using Nielsen panel data and analyses from Esri, a supplier of geographic information software, Watson found that women between the ages of 21 and 34 now consume 15 percent of total craft volume. Citing a recent report from Technomic outlining invigorated interest both on and off-premise from Hispanic consumers, Watson concludes that today’s beer drinkers are much more ethnically diverse as well.
If craft is to reach the oft-stated goal of gaining 20
...More info on site
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USA: TTB simplifies excise tax regulations for small brewers
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The Beer Institute, the national trade association representing brewers and beer importers, praised the Alcohol and Tobacco Tax and Trade Bureau’s (TTB) decision to simplify excise tax regulations for small brewers, brewbound.com reported on October, 2.
“The brewing industry appreciates the work that the TTB has done to refine their rules and regulations to reduce unnecessary bureaucracy,” said Jim McGreevy, Beer Institute president and CEO. “The beer industry is experiencing immense change right now, thanks to efforts like this that open pathways to the marketplace for small brewers.”
This rule is for the benefit of small brewers, essentially defined by TTB as those which produce less than 7,200 barrels. The TTB’s rule would institute a flat $1,000 penal sum for the brewer’s bond for these small brewers whose excise tax liability is expected to be less than $50,000 in a given calendar year and who were liable for no more than $50,000 in such taxes during the preceding calendar year.
The rule also allows these small brewers to move from monthly reports on operations and taxes to a quarterly report. The goal of this rule change is to reduce administrative costs for small brewers and create greater efficiency for TTB.
The new rules will
...More info on site
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USA, VA: Hops industry to grow in Virginia
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Virginia farmers are turning to an important ingredient in brewing beer as a potential cash crop for the state known for its agricultural past and present, miamiherald.com reported on October, 5.
Over the past few years, more than a dozen states including Virginia have added hops to their list of crops, mirroring the growing demand and interest in craft beer, as well as the use of local ingredients.
"Increased hop production represents an interesting and potentially lucrative opportunity," state Secretary of Agriculture and Forestry Todd Haymore said.
Hops have been growing in Virginia since the 1700s but are now most notably grown in the Pacific Northwest.
For many years, the U.S. Department of Agriculture reports only included Washington state, Oregon and Idaho but the latest numbers include 14 additional states that are growing the bittering flower, according to the Hop Growers of America. By some accounts, craft brewers now use nearly 50 percent of all the hops produced in the U.S., according to the Brewers Association.
While industry figures show only 25 acres of hops being grown in Virginia this year — compared with more than 29,000 acres in Washington state — farmers are hopeful the state's industry will grow.
"Right now we're laughable to
...More info on site
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USA, ID: Rains cause significant damages to Idaho barley fields
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Too much rain in recent months has caused an estimated $100 mln in damages to barley crops in Idaho, kboi2.com reported on October, 4.
The wet weather ruined an estimated 15 mln to 20 mln bushels of barley, out of 48 mln bushels of barley, said Kelly Olson, administrator for the Idaho Barley Commission.
"This harvest is going to have significant economic impacts through the entire barley chain," said Olson. "It's not an exaggeration to say this is a significant hit on the farming community of Idaho."
The grain shortage will likely affect the brewing industry as well, the Post-Register reported.
Idaho produces more barley than any other state, with the bulk going to brewing beer. Some of the barley is sold to local craft brewers, but much of it goes to brewing giants such as Anheuser-Busch InBev, which processes 336,000 tons of malted grain each year at its Idaho Falls plant.
In August and September, nearly 5 inches of rain was recorded at the Idaho Falls Regional Airport. That rain caused sprout damage on barley fields throughout eastern and southern Idaho and wiped out entire crops.
Paul Patterson, an agricultural economist in Idaho Falls with the University of Idaho Extension office, said the damages to
...More info on site
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Canada: New beer standard to support Canada's brewers
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Pierre Lemieux, Parliamentary Secretary to Agriculture Minister Gerry Ritz and Member of Parliament for Glengarry-Prescott-Russell, announced on October, 3 that the Government of Canada is fulfilling its commitment made as part of Economic Action Plan 2014 to modernize Canada's beer standards.
Canada's compositional standard for beer outlines the specific requirements that must be met for a product to be labelled, packaged, sold or advertised as beer. Brewers have expressed concerns that the existing standard is outdated and can create barriers for the introduction of new products.
The new proposed standard, which was developed in collaboration with industry, would provide for clearer and more modern regulations that would enable the industry to take full advantage of innovation and market developments. For example, the new standard would expand the definition of beer to allow for non-traditional ingredients such as spices and fruit. These changes would lead to more choices for consumers.
The consultation period will run until November 16, 2014.
The brewing industry is an important contributor to the Canadian economy, representing more than C $14 bln in economic activity or 0.9 per cent of total gross domestic product.
"The brewing industry is an important contributor to the Canadian economy. Modernizing the compositional
...More info on site
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USA, MO & SC: Boulevard Brewing to have seven distributors in South Carolina
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Having finalized agreements with seven wholesalers in the state, Boulevard Brewing will expand its distribution throughout South Carolina by the end of the month, the company announced on October, 6.
The brewery, which was acquired by Belgium-based Duvel Moortgat in 2013, has inked deals with Lee Distributing, Comer Distributing, Greenco Beverage Co., Beverage South, H&S Wholesalers, Better Brands, and Crown Beverages, per company statement.
South Carolina makes for the 29th state in Boulevard’s distribution footprint.
“Very simply, we’re seeing some really tremendous room for expansion in craft in South Carolina right now,” Simon Thorpe, president and CEO of Duvel Moortgat USA, said. “Traditionally, it’s been a market that has fairly decent volume growth. The really interesting thing for us is the expansion of revenues in the last 18 months or 2 years or so. In that sense we see South Carolina as one of the very interesting developing markets over the next three to five years.”
Boulevard will hit the market with its “most popular offering,” Unfiltered Wheat Ale, as well as Pop-Up IPA, 80-Acre Hoppy Wheat Beer, and its Smokestack Series. Seasonal and limited releases will be introduced gradually.
The brewery’s foray into South Carolina marks the fourth time the company has expanded its
...More info on site
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USA, NC: New Sarum Brewing Company to expand
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The New Sarum Brewing Company in downtown Salisbury had plenty of success in its first year of business, and now its owners are planning to expand, salisburypost.com reported on October, 4.
The craft brewery started operations near the end of summer in 2013 and focused on creating beers that reflect the history and people of Rowan County, according to Edward Moscardini, whose family owns and operates the brewery.
“It was a complete success,” Moscardini said about the brewery’s first year. He said that he, his father, Gianni, and brother, Gian, thought it was the right time to open a craft brewery in Salisbury.
The family, along with brewmaster and co-owner Andy Maben, style their beer after the history of the area. The name “New Sarum” is a tribute to Salisbury’s sister city in England, where the original settlement was called “Old Sarum.”
The brewery’s flagship beer, 142, got its name from the number of alcohol licenses issued in Rowan County between 1753 and 1772, Moscardini said.
“We created New Sarum. We’re creating our identity around Salisbury and Rowan County,” he said.
Other beers the brewery makes include High Rock Red and Old Stone House IPA. Edwards said the brewery has developed 12 recipes so far and
...More info on site
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USA, NY: Steuben Brewing Co. opens in Hammondsport
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Steuben Brewing Co. opened in the Hammondsport area, democratandchronicle.com reported on October, 6.
Steuben Brewing Co. (SBC) is owned and operated by James and Candice Zimar and their sons Rick and Chad Zimar. SBC is a New York State Farm Brewery, meaning that at least 20 percent of their ingredients are locally produced.
The brewery offers flights of beers to taste and sells by the pint and half pint.
Among its beers are N.Y. Rye; Steuben Pilsner; Hopyard IPA; Steuben Brown and Vacation ales; the experimental beers Steuben Cream and Amber ales; and the seasonal beers Strawberry Blonde and Steuben Fall ales.
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USA, IN: Goshen Brewing Company to open by spring 2015
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Goshen Brewing Company is looking to launch its brand, wndu.com reported on October, 5.
With construction finally underway, a spring opening is expected.
Construction is underway at the former NIPSCO building.
It's been locked up for years owned by the Maple City until a purchase agreement last September promised to transform it into a brew pub.
Jesse Sensenig, from the Goshen Brewing Company, says, “It is great to see that things are going on with the building and they can see progress actually happening even though for the past two years there's been a lot of things behind the scenes that are happening.”
Construction started 7 weeks ago, converting the industrial interior into a restaurant and brewery.
“That's been our vision all along is to take the character in the building and really use that and create really a neat, unique atmosphere,” he says.
In the upper level, there is space for the mill and kitchen. A soon-to-be constructed eating and bar area will be downstairs.
“The high majority of people that we talk with are super excited,” Sensenig says.
Goshen Brewing Company raised $22,000 through crowd-funding and hopes to raise a little more.
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USA, AL & TN: Back Forty Beer Co. beers to be distributed in Nashville
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Back Forty Beer Co. announced on October, 3 it is now available on tap and for purchase in Nashville, marking the company's first expansion into Tennessee.
The Gadsden-based brewery, the largest in Alabama, is currently distributed in Alabama, Mississippi, Georgia and Florida, as well as Washington, D.C.
Available are Truck Stop Honey Brown Ale, Naked Pig Pale Ale, Freckle Belly IPA and Fence Post Session Ale, in 12-ounce glass bottles, 12-ounce aluminum cans and draft.
"We've been waiting for the right opportunity to grow into Tennessee for quite some time," Back Forty Beer Co. President and CEO Jason Wilson said. "The Southern culture and commitment to local artisans that defines Back Forty Beer Co. is alive and well in Nashville, and we're excited to get started."
Tennessee-based Ajax Turner Co. Inc. will distribute the beer in the middle Tennessee area. Kyle Lawing, Ajax Turner craft and import beer manager, said his company expects Back Forty "will be a big player in our market."
In August, Condé Nast Traveller announced Back Forty as one of its best local breweries in the U.S., as chosen by readers. Back Forty was the only brewery named from the South.
Earlier this year, Back Forty took small manufacturer of the year
...More info on site
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 Australia: Substandard malt supplied to customers
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Brewers have been routinely supplied with substandard malt by Australia’s biggest producer, Joe White Maltings, which covered up the deception by altering chemical analysis
...More info on site
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Japan: Asahi under pressure to step up acquisitions - CEO
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Asahi, Japan’s biggest brewer, is under pressure to step up acquisitions in an effort to double its overseas business and challenge the dominance of
...More info on site
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World: SABMiller boss says attempt to buy Heineken was not a defensive move
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SABMiller boss Alan Clark said on October 6 there was no truth in speculation the brewer's interest in buying Dutch rival Heineken was a
...More info on site
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Italy: Beer production declines by 0.3% in 2013
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Italy’s 16 industrial plants and approximately 500 microbreweries last year produced a total of 13,256,000 hl of beer, down 0.3% from the 13,293,000 hl
...More info on site
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France: Wheat and barley exports increase in July 2014
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According to the French government, France exported 996,000 tonnes of wheat (excluding durum) in July 2014, which is up from the 829,000 tonnes exported
...More info on site
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South Korea: Oriental Brewery quickly losing market dominance after “disinfectant odor” scandal
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Oriental Brewery (OB) is quickly losing its market dominance after a “disinfectant odor” scandal that began in June, The Korea Times reported on October
...More info on site
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Romania: First-half beer sales drop 9% because of excises increase
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Beer sales in Romania dropped by 9% in the first half of this year compared to the same period of 2013, to 7.3 million
...More info on site
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Japan: Asahi Group Holdings head optimistic about Japan’s alcohol industry
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Naoki Izumiya, the busy chief executive of Japan’s largest beer company, does not look the kind of man who would spend his mornings in
...More info on site
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World: Global Scotch whisky sales down 0.8% last year
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Global Scotch whisky sales fell last year by 0.8% to 96 mln cases, according to data in a new just-drinks/The IWSR report, with 14
...More info on site
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Germany: Spring and winter barley production expected to increase this year
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According to the agricultural ministry, Germany’s grain production is likely to total 52.0 mln tonnes this year which would be an increase by 8%
...More info on site
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Australia: Any takeover of Australia’s Coopers Brewery is now much harder to succeed
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The family that controls South Australia’s Coopers Brewery, Australia’s biggest locally owned brewer, has quietly changed the beverage company’s century-old constitution, which could make it almost impregnable to a hostile takeover by one of the global multinationals that control Australia’s A$7 billion beer market, The Australian reported on October 8.
The changes will likely dampen any appetite the nation’s biggest brewer Lion might have to re-enter the bruising and sometimes heated battle it fought in 2005 to grab control of Coopers in its ultimately failed A$420 million bid for the brewer.
It also puts up the “not for sale” sign to any other interloper such as second biggest player Carlton & United Breweries, which is owned by global brewing behemoth SABMiller.
Documents obtained by The Australian show that at a closed-door meeting of its tight-knit 143 shareholders held at the Coopers’ brewery in Adelaide, a tiny amendment was made to its constitution, which governs the way fair value of Coopers’ shares is calculated against the backdrop of a takeover.
The Coopers constitution, a complex document created in the 1920s and which was instrumental in sinking the hostile bid by Lion, then known as Lion Nathan, has been strengthened even more to what is referred
...More info on site
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UK: Second set of AHDB/HGCA Cereal Quality Survey confirms lowest average nitrogen content of barley since 1977
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The second set of results from the AHDB/HGCA Cereal Quality Survey have confirmed the average nitrogen content of UK barley is the lowest since records began in 1977, Farmers Guardian reported on October 7.
The final set of results is still to be collated, and the concluding report will be released at the end of October/early November.
The survey, which analysed 26,513 barley samples from across the UK, showed average nitrogen content was 1.53 per cent, which is lower than the three-year average of 1.68 per cent and the lowest recorded result since 1977.
The larger sample size gives a better regional representation than the August results, says HGCA.
Screening grades have improved from the first set of results and indicate grain size is currently above the three-year average says HGCA. Results from harvest 2012 are not included in the three-year average due to adverse harvest conditions leading to particularly poor results.
However, despite the increase in grain size, the average specific weight is lower than seen in the results collated in August.
AHDB/HGCA senior cereals and oilseeds analyst, Dr Amandeep Kaur Purewal, says: “Overall GB barley quality is reasonable in terms of specific weight and grain size, and the low average nitrogen levels
...More info on site
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World: SABMiller convinced it has the right marketing brew to woo female consumers
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Tapping the female market has long been the Holy Grail for beer marketers in an industry desperately in need of extending its consumer base. Despite many high profile failures, the world’s second largest brewer SABMiller is convinced it has the right marketing brew to woo women, Marketing Week reported on October 7.
The Peroni maker says shifting the image of beer among females could take up to 20 years but believes there is an untapped thirst that has been ignored to date. SABMiller sees female drinkers as a key beneficiary of its wider bid to attract more consumers on more occasions through a mix of innovation, packaging and advertising.
Future attempts will revolve around more flavoursome beers, which make use of the 86 per cent hops SABMiller claims are not used by the industry, alongside marketing that pushes six distinctive experiences; family occasions such as BBQs, mixed gender casual parties, mixed gender casual meals, mixed gender evening meals, colleagues socialising and men together in bars.
At an event for analysts in London this week, Nick Fell, marketing director at SABMiller, says unlocking those consumers and occasions will flow from distribution, packaging and tie-ups with local retailers and is not be “hidden in the
...More info on site
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Australia: Australia’s beer industry being redefined by craft breweries
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One enduring legacy of Bruce Beresford's 1972 hit film, The Adventures of Barry McKenzie, is that many people overseas think Australians all run around guzzling Fosters lager, goodfood.com.au reported on October 5.
In reality, of course, the stuff in the blue can is something of a rarity in its homeland. The idea that beer can help characterise a region, or a culture, however, is increasingly finding support.
Australia, it seems, is steadily being redefined, not by its iconic draughts, nor even its wines, but by its hand-made beers.
"All of the craft breweries are doing well," said Doug Brooke, eponymous owner of Bendigo-based Brooke's Beer and board member of the peak Craft Beer Industry Association.
"Precise figures are difficult, but we estimate the sector is growing by around 10 per cent each year, with some individual breweries growing by as much as 100 per cent a year."
Definitions of what exactly comprises a craft beer can be tricky, but industry commentators concur that domestically produced posh squirt is going through the roof. Business analysts Ibis World describe the craft beer sector as "robust" – at a time when over-all beer consumption is at its lowest per capita level for almost seven decades.
There are about
...More info on site
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The Czech Republic: Microbreweries and craft brands reviving Czech beer industry
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Only in the Czech Republic – where the population leads the world in beer consumption at an annual 144 litres per capita – can a brewer become a media star, The Financial Times reported on October 7.
Stanislav Bernard, a flamboyant, 59-year-old former electrical engineer, has become a household name with his eye-catching advertisements. A recent campaign depicted the tousled haired entrepreneur in uniform by a sentry box, replete with the slogan: “Be on your guard against Eurobeer”.
Intended to stress Mr Bernard’s commitment to ‘genuine’ Czech brews made according to traditional methods – as opposed to mass-produced industrial lager – the hoardings send an important marketing message, raise a chuckle from passing motorists and, most importantly, increase sales.
Buying a near-derelict, state-owned brewery in the small town of Humpolec after the Velvet Revolution, his small team sold 107,000 hectolitres in 1992 – four times the previous year’s volume.
“The beer they had been making lacked character,” Mr Bernard says. “We decided to have our own Pilsner-taste, but full-bodied and bitter, from Czech ingredients, and with no short cuts. It remains one of our core beliefs.”
This year, sales from the Bernard Family Brewery are expected to top 250,000 hectolitres.
While this is but 1.5 per
...More info on site
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Germany: Beer consumption down at this year’s Oktoberfest
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Visitors to Munich's 181th Oktoberfest, which came to an end on October 5, drank substantially less beer than last year, ioL News reported.
About 6.3 million visitors consumed a total of 6.5 million litres of beer while in 2013, 6.4 million guests were served 7.7 million litres.
Munich Mayor Dieter Reiter called this year's festival “unbelievably pleasant,” and police and rescue services also were generally pleased.
Poor weather at the start of the festival resulted in fewer visitors, it is reported.
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