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E-Malt.com Newsletter 42a
October 13 - October 15, 2014
Quote of the Week
"The roots and herbs beaten and put into new ale or beer and daily drunk, cleareth, strengthen and quicken the sight of the eyes."
Nicholas Culpeper
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Currency Rates
Base Currency: US Dollar
on October 15, 2014 |
Base Currency: Canadian Dollar
on October 15, 2014 |
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1 USD = 0.7881 EUR
1 USD = 0.6252 GBP
1 USD = 1.1233 CAD
1 USD = 1.1430 AUD
1 USD = 107.0660 JPY
1 USD = 2.3988 BRL
1 USD = 40.6980 RUB
1 USD = 6.1436 CNY
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1 CAD = 0.8904 USD
1 CAD = 0.5567 GBP
1 CAD = 0.7017 EUR
1 CAD = 1.0177 AUD
1 CAD = 95.3285 JPY
1 CAD = 2.1358 BRL
1 CAD = 36.2362 RUB
1 CAD = 5.4701 CNY
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Currency Rates Chart
Equities of the Largest Breweries
World: Thirst for beer down in US, Germany, Japan, Russia
...Click here
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Canada: Molson Canada and Miller Brewing Co. settle fight over Miller Genuine Draft distribution
...Click here
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USA, CA & VA: Green Flash Brewing to begin construction on its second location in Virginia
...Click here
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USA, WI: Karben4 Brewing to double beer production as the brewery starts releasing bottles
...Click here
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USA, HI & OH: Kona Brewing Company chooses Cincinnati to make mainland debut of new beers
...Click here
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USA, WI: Ale Haus brewing to quadruple its capacity by 2015
...Click here
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USA, VA: Richmond to land more than $30 mln in grants and bonds to Stone Brewing
...Click here
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USA, NH: Henniker Brewing Company expands distribution to Vermont and Massachusetts
...Click here
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Canada, ON: The Hamilton Brewery to open in November
...Click here
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Australia: Australia’s reputation as malt exporter may have been damaged by Joe White Maltings quality scandal
...Click here
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World: SABMiller and Diageo expected to report stagnated or even lower first-quarter alcohol sales
...Click here
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World: Barley trade forecast increased by 1 mln tonnes
...Click here
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World: World barley crop estimate increased, trade forecast most likely to be revised upwards as well
...Click here
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World: AB InBev may also look into buying PepsiCo Inc. - analysts
...Click here
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UK: Barley output marginally lower than last year’s, wheat crop the biggest since 2008
...Click here
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Japan: Sales of “happoshu” low-malt quasi-beer jump 24% in September
...Click here
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Graph of the Week
Table of the Week
German Hops Acreage and Production 2010-2013
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
1.3-pentadiene in hops
ABSTRACT
Of course hops deliver beautiful flavours into beer. But
once in a while something not so appealing is detected as
well. These US researchers identified 1,3-pentadiene in
commercial CO2 hop extract and hop pellets. The
compound was initially thought to be a contaminant from
either the process or packaging but has now been shown to
be a naturally derived degradation product of hop acids.
The researchers were also able to propose a plausible
mechanism for its formation from alpha or beta hop acids
that can be also transferred into beer. This substance is
described as an fusel oil-like off flavor. However threshold
values in beer are unknown so the impact on flavor yet has
to be investigated.
Read more
Source: Barth Innovations
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These Days in Business History
October 13
1884 Greenwich established as universal time meridian of longitude
1971 Intel Corp. goes public on NASDAQ
1987 Walter H Brattain, U.S. physicist (transistors, Nobel 1956), dies at 85
October 14
1884 George Eastman patented photographic film
1947 Chuck Yeager makes the first 'Supersonic' flight over Edwards Air Force Base California
1968 The first successful live telecast from a manned U.S. spacecraft was transmitted from Apollo 7
October 15
1878 Edison Electric Light Company incorporated
1908 John Kenneth Galbraith is born, economist, Affluent Society-58 Hillman Award
1993 Amstel brewery on Curacao produces 1,000,000,000th bottle
Agenda
News Articles
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World: Thirst for beer down in US, Germany, Japan, Russia
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Thirst for beer dropped in August, available statistics show the U.S. minus 4.6% for the month and minus 0.6% for the year.
Germany reports
...More info on site
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Canada: Molson Canada and Miller Brewing Co. settle fight over Miller Genuine Draft distribution
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Beer giants Molson Canada and Miller Brewing Co. have settled their fight over who gets to sell Miller Genuine Draft in Canada, The Globe and Mail reported on October 10.
The two companies announced last week that they have amicably settled a legal dispute that has been going on for years. As of April 2015, Miller will take over the sales of Miller products, including the key Genuine Draft brand, which had been part of the Molson portfolio of beer in Canada.
Molson, a unit of Molson Coors Brewing Co., has had the exclusive rights to distribute Miller products – such as Genuine Draft – under an arrangement that goes back decades. But Miller wanted to end the arrangement, because it thinks it can do a better job of selling its own beer in Canada. Miller gave official notice in January 2013 that it wanted to end the deal as of July of that year, but Molson said that couldn’t be done under the terms of the contract. It went to court in May 2013 to get a temporary injunction to keep the distribution arrangement in place until the merits of the dispute could be heard in court.
A court date was set,
...More info on site
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USA, CA & VA: Green Flash Brewing to begin construction on its second location in Virginia
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San Diego’s Green Flash Brewing announced it will begin construction on its second location, a 58,000 sq. ft. brewing facility in Virginia Beach that will eventually be capable of producing 100,000 barrels of beer per year, brewbound.com reported on October, 13.
Officially scheduled to open in 2016, the $20 mln brewery will be built on a 9-acre lot in the area’s Corporate Landing Business Park.
“I’m pleased to welcome Green Flash to Virginia Beach,” said Virginia Senator Jeff McWaters. “As a legislator, it is very rewarding when legislation you’ve worked on makes a visible and significant impact on industry and spurs job creation. With the passage of Senate Bill 604, Green Flash chose to take another look at Virginia and ultimately decided to make Virginia Beach their east coast home. I am grateful for the investment Green Flash is making in our community, and I look forward to the grand opening in 2016.”
“After announcing plans to build our facility in Virginia Beach, we have been moving forward step-by-step towards breaking ground,” states Mike Hinkley Co-founder and CEO of Green Flash Brewing Co. “We are breaking ground to enter the first phase of construction, focused on the layout and building orientation on the
...More info on site
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USA, WI: Karben4 Brewing to double beer production as the brewery starts releasing bottles
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Karben4 Brewing fired up some long-dormant machinery for the first time and started filling bottles with its most popular beer, Fantasy Factory India Pale Ale, isthmus.com reported on October, 10.
Since opening nearly two years ago, the brewery has concentrated building demand for its beers through draught-only sales to local bars, restaurants and in its own taproom. "We wanted to build brand equity so that our beers are pulled onto the shelves, rather than fighting for space in local stores," says Karben4 co-owner and brewmaster Ryan Koga.
Fantasy Factory, a vigorously hoppy IPA, is central to the young brewery's efforts at building a name for itself, especially among craft beer fans serious about bitter brews. "It's our most popular beer; we've gotten a huge response from the marketplace," says Koga about the decision to make it their first bottled brew.
"A lot of breweries start bottling right away, and they struggle because they are also buying tanks, kegs and all the stuff to grow," he explains. "We thought, let's build our business on draught lines first, and that will help us get a business built with the cash flow we need to support bottling.”
Karben4 beers are packaged in short stubby brown bottles, and
...More info on site
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USA, HI & OH: Kona Brewing Company chooses Cincinnati to make mainland debut of new beers
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Kona Brewing Company is hosting beach parties at Jungle Jim’s Eastgate and The Party Source on Halloween and Nov. 2, respectively, to introduce three new beers to the contiguous 48 states, bizjournals.com reported on October, 13.
Kua Bay IPA, Lavaman Red and Black Lava Lager will be poured at those parties. It will be the first time the beers are sampled off of the islands. Other Kona beers are already available in Greater Cincinnati.
“With all the new breweries and craft beer lovers in Cincinnati and Northern Kentucky, it’s obvious that there is a wave of interest in craft beer within the heart of the country,” Mattson Davis, Kona Brewing’s managing director of restaurant and retail, said.
He also added: “This growing interest in new craft beers sparked a casual conversation between two beer lovers who agreed Cincinnati would be a great place for Kona Brewing to do something special.”
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USA, WI: Ale Haus brewing to quadruple its capacity by 2015
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The 8th Street Ale Haus hopes it will have more of its own beer on tap in the new year, postcrescent.com reported on October, 14.
The Sheboygan brewpub is in the process of building storage next door for its new brewing operations, which general manager Kurt Jensen says will quadruple its craft beer capacity in 2015. The brewery will operate during the day prior to the bar’s service hour.
The 8th Street Ale Haus has been the meeting place of the local homebrew, Sheboygan Sudzzers, since 2010 and has been making small batches of its own beers to put on tap for about a year. The popularity of those beers has been evident in how quickly they disappear from the list of available taps.
“We’ve been making 20 gallons a week and pretty much selling it as fast as we can make it,” said owner Randy Oskey.
The brewpub has been focused on four flagship beers: Kolsch-style Freshwater Surfsider, which is described as a “nice easy-drinking beer” for the summer; a brown ale; a coffee porter; and Rebel Kurt the French, a honey saison whose name is a reference to Sheboygan-based 3 Sheeps Brewery’s Rebel Kent the First amber ale.
Jensen said it’s an homage
...More info on site
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USA, VA: Richmond to land more than $30 mln in grants and bonds to Stone Brewing
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The city of Richmond, VA is throwing in more than $30 mln in grants and bonds to help Stone Brewing build out an east coast facility that could be operational as early as late next year, brewbound.com reported on October, 13.
As reported by Richmond Bizsense, the Richmond mayor’s office will issue $23 mln in bonds to fund development of the project and kick in another $8 mln in bonds for the brewery’s restaurant and beer garden. Additionally, the city plans to support the project with $2 mln in grant money from taxes generated by the new facility.
“We are working very hard on the economic development front to expand the city’s tax base, increase economic opportunity, and to provide opportunities for jobs and growth,” said Richmond Mayor Dwight Jones of his city’s successful campaign.
Gov. Terry McAuliffe, who in September declared, “We’ve got to get [Stone] here in Virginia,” is opening up the state’s coffers as well. The state will offer up $5 mln from its Governor’s Opportunity Fund and $250,000 more from the Governor’s Agriculture and Forestry Industries Development Fund.
Stone’s plans call for a 200,000 sq. ft. production brewery – equipped with a 250-barrel brewhouse and a distribution center – as
...More info on site
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USA, NH: Henniker Brewing Company expands distribution to Vermont and Massachusetts
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Henniker Brewing Company announced on October, 9 the expansion into the neighboring states of Vermont and Massachusetts.
Henniker Brewing Company has partnered with Horizon Beverage in Massachusetts and G.Housen Co in Vermont, to start distribution of the brewery’s full line-up of beers, in both 22oz bottles and on draft beginning in October.
For the launch, Henniker Brewing is setting up tastings, pint nights, and other various events across each state.
“We are excited to expand our reach across the New Hampshire state border and begin our goal of becoming a regional brewery,” says Henniker Brewing Company Marketing Director Ryan Maiola. “We are confident that we are positioned for a successful partnership with both Horizon Beverage and G.Housen Co, and we look forward to getting our beer into the hands of beer retailers and beer drinkers in the great states of Massachusetts and Vermont.”
Henniker Brewing is bringing all of its highly rated beers to bars, restaurants, grocery stores, and bottle shops throughout the states of Vermont and Massachusetts.
Henniker Brewing Co’s four year round beers, Hop Slinger IPA, Amber Apparition, Whipple’s Wheat, and Working Man’s Porter as well as their seasonal line-up will be available in 22oz bottles, 1/6 barrels, and ½ barrels.
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USA, IL: Black Belt Brewery to open in Lake Zurich
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The Lake Zurich Village Board unanimously approved a special use permit for Black Belt Brewery to produce beer, suntimes.com reported on October, 9.
“We are going to be a production craft brewery,” said Island Lake resident Mark Abraham, one of Black Belt Brewery’s three owners. “We are not going to be a bar, restaurant or tavern.”
The brewery’s amber ale was chosen best in its category at two American Homebrewers Association-sanctioned competitions in the summer of 2013.
That beer is the only one the brewery plans to produce, unless Abraham, Petti and fellow business owner Caren Asher develop and produce another in the future.
At the village Plan Commission’s September meeting, Asher said it would take about four months to get the necessary equipment, after which the company would start brewing immediately.
Within the first three months of production, Asher predicted Black Belt would produce one batch per week, bringing in revenues of more than $120,000 each month.
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Canada, ON: The Hamilton Brewery to open in November
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Over a year after it was first announced, The Hamilton Brewery is getting close to pouring its first pints in its namesake city – with the caveat that it will be a while before the beer being sold under the label is actually brewed there, Canadian Beer News reported on October, 8.
Owner Warren Pyper originally intended to open a bricks-and-mortar brewery in Hamilton, but due to financial constraints, he has decided to launch with a contract brewed product to build brand awareness, while still working towards opening a physical location at a later date.
Once all of the required permits are in place, Pyper plans to have the first commercial batch of Blue Collar Pale Ale brewed at a facility elsewhere in Ontario, and available on tap at bars and restaurants in Hamilton sometime in November.
While the beer may not be truly homegrown at first, Pyper said that “glasses, tap handles, apparel, coasters, and a host of other products and services” for the brewery will all be sourced in Hamilton.
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Australia: Australia’s reputation as malt exporter may have been damaged by Joe White Maltings quality scandal
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Australia’s reputation for exporting high-quality malt and barley may have been damaged by allegations the nation’s biggest malt maker, Joe White Maltings, routinely supplied
...More info on site
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World: SABMiller reports first half results
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SABMiller plc on October 14 issued the following update on trading for the six months ended 30 September 2014.
Alan Clark, Chief Executive of
...More info on site
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World: SABMiller and Diageo expected to report stagnated or even lower first-quarter alcohol sales
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The heads of two of the UK’s biggest companies have a drinks problem – how to find growth, The Financial Times reported on October 12.
Alan Clark at SABMiller, the brewer, and Ivan Menezes of Diageo, the world’s largest spirits group, are both expected to report that alcohol sales in the last quarter stagnated – or even fell – when they give updates to the market this week.
A cocktail of factors over the past year, including weakness in emerging markets, unfavourable currency movements but also falling consumption in the competitive markets of North America and Europe, have held back growth.
Diageo, the producer of Johnnie Walker Scotch whisky, Smirnoff vodka and Guinness beer, suffered a 9 per cent drop in sales to £10.3 bln in the year to the end of June and an 11 per cent fall in pre-tax profits to £2.7 bln – its weakest result in three years.
At SABMiller, net sales fell 1 per cent in the year to the end of March to $26.7 bln, while pre-tax profits rose 3 per cent to $4.8 bln.
Given that the two men took the helm of their respective companies only last year from long-serving predecessors, the weaker trading means the
...More info on site
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Brazil: Beer sector may grow by 3% this year
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In spite of a drop in Brazil’s beer consumption in the third quarter, the likelihood of good beer sales in the remaining three months
...More info on site
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World: Barley trade forecast increased by 1 mln tonnes
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The US Department of Agriculture increased this month its forecast for the global barley trade to 21.8 mln tonnes in 2014/15, vs. 20.8 mln
...More info on site
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World: World barley crop estimate increased, trade forecast most likely to be revised upwards as well
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In September, the IGC increased its world barley crop estimate from 135 to 138 mln tons. Crops are very large in the EU, Russia,
...More info on site
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EU: Malting barley harvest results mixed this year
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Results of the malting barley harvest in the EU are mixed this year, industry analysts said in a report on October 1.
Almost everywhere
...More info on site
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World: AB InBev may also look into buying PepsiCo Inc. - analysts
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If Anheuser-Busch InBev NV can’t grab the beer of its choice, it could settle for a Pepsi, Bloomberg reported on October 12.
With almost $90 billion in deals over the last 10 years, including the 2008 acquisition of the maker of Budweiser, no other beverage company spends like AB InBev does. Most of the speculation on the $170 billion beer behemoth’s next move has focused on the industry’s No. 2 brewer, SABMiller Plc. A company of AB InBev’s size and ambitions has other options though, including PepsiCo Inc.
AB InBev and its advisers have long studied whether a merger with the $142 billion soda and snacks company makes strategic and financial sense, said people familiar with the matter. However, no talks are happening now, no deal is imminent, and the scenario is among many it has looked at, one of the people added, asking not to be identified because the information is private. AB InBev should think beyond the beer market, said Albert Fried & Co. That could put Monster Beverage Corp. or Keurig Green Mountain Inc. even further away from the brewer’s core, on its radar. Either way, AB InBev probably won’t walk away empty-handed.
The culture of AB
...More info on site
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UK: Barley output marginally lower than last year’s, wheat crop the biggest since 2008
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This year’s hotly anticipated provisional estimates for the 2014 UK wheat and barley harvest were released on October 10 by Defra.
The provisional figures
...More info on site
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Japan: Sales of “happoshu” low-malt quasi-beer jump 24% in September
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Brewers’ domestic sales of “happoshu” low-malt quasi-beer jumped about 24 percent from a year earlier in September, thanks to the release of new products that their makers say are free from purine bodies, which may cause gout if their intake is excessive, The Japan News reported on October 11.
As for purine-free happoshu brands released in September, Kirin Brewery Co. sold 940,000 cases of “Kirin Tanrei Platinum Double,” Asahi Breweries Ltd. 540,000 cases of “Super Zero” and Suntory Liquors Ltd., a Suntory Holdings Ltd. unit, 360,000 cases of “Oishi Zero.” Each case contains the equivalent of 20 633-milliliter bottles.
Meanwhile, sales of “Goku Zero” of Sapporo Breweries Ltd., the pioneer purine-free brand, relaunched as a happoshu product in July, amounted to 520,000 cases.
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