Vietnam: Competition is heating up in the beer sector
This year, Vietnam's brewing industry is expected to produce about 1.5 billion litres of beer compared to 1.37 billion litres in 2004...more info
Russia & Colombia: Heineken should better invest in Russia than buy Bavaria, analyst says
Dutch brewing giant, Heineken NV, should focus on Russian expansion and let SABMiller Plc buy Colombia's Grupo Empresarial Bavaria
, Bloomberg cited Fortis analyst Sebastiaan Schreijen.
"We believe the best outcome for Heineken might actually be that SABMiller buys Bavaria," Schreijen wrote in a note to investors today. “A stake in Bavaria would likely stretch the financial room in the balance sheet. We rather see Heineken using its financial headroom for acquisitions in Russia.''
The limiting factor for Heineken in making such a bid is the Heineken family, which has a controlling stake that it apparently isn't ready to dilute, Schreijen wrote. Heineken can probably manage to pay 4.2 billion euros ($5.1 billion) and Bavaria may go for $6 billion to $11 billion based on current valuations, he wrote. He has a ``buy'' rating on the shares.
Heineken said in April that it was one of several brewers interested in Bavaria as demand for beer in emerging markets outpaces consumption in the U.S. and Western Europe. Heineken has said it wouldn't be interested in the brewer for $9 billion.
Beermakers have spent more than $72 billion on acquisitions in the past five years to seek growth in new markets, data compiled by Bloomberg show. Heineken agreed to buy Russia's Patra Brewery in May to help boost its share of that market, adding almost 1 percentage point to 8.3 %.
Czech Republic: Plzenský Prazdroj announced its financial results for fiscal year
Major Czech beer maker, Plzenský Prazdroj, a.s., a unit of SABMiller plc, announced on June 24 the financial results for the fiscal year ended 31st March 2005...more info
China: Talks to sell a further Kingway stake to Heineken are still preliminary
Kingway Brewery Holdings Ltd. announced on Friday, June 24, that talks to possibly sell a further stake to Netherlands’ brewing force, Heineken N.V.
, are still at a preliminary stage, according to Reuters.
In May 2005, Kingway said there had been no progress in discussions with the Dutch brewer, which is considering increasing its stake in the Chinese beer maker from 21.44 %. Heineken is competing with global rivals such as Anheuser-Busch and SABMiller to expand its share of China's fast-consolidating beer market, the world's largest by volume.
Early last year, the Dutch brewer paid HK$1.85 per share for its stake in Kingway. Shares in Kingway, which has a leading market position in the affluent southern province of Guangdong, have risen 2.8 % over the past month to close at HK$2.75 Thursday, June 23. (US$1=HK$7.8)
Bulgaria & Macedonia: Kamenitza Brewery enters Macedonian market
Kamenitza AD, a unit of Inbev, has been selling beer on the Macedonian market since May, the company announced on June 14...more info
Belgium & Vietnam: Belgian forwarder gains Belgian malt export business
Ho Chi Minh City based Aan Boord Cargo, a Belgian owned freight forwarder, has begun shipping Belgian produced malt for the brewing industry in Vietnam
, PR Leap communicated on June 25, 2005. The malt is produced by Flanders based leading malt producer and exporter Boortmalt NV and sold to Vietnam buyers under sales contract of the Belgian trading firm Mondoo to be used in brewing beer in Vietnam. Currently the major brewers in Vietnam are Heineken/Tiger, Carlsberg, Fosters/La Rue Export, San Miguel as well as several locally well known Vietnamese beers.
Aan Boord Cargo, a founding member of Aeroceanetwork, is one of only two Belgian logistics firms on the ground in Vietnam, the other being Ahlers Vina Logistics joint-venture of the well-known Ahlers Group. But Aan Boord Cargo has the distinction of being the only Belgian owned logistics company with Belgian management in country. Aan Boord Cargo’s managing director, Mr. Geert Van Doorslaer, who came originally to Vietnam from Dubai three years ago in order to win business for Barwil, worked closely in pursuit of this malt business with Aan Boord Cargo’s Belgian partner, fellow Aeroceanetwork member De Keyser Expeditions BV to, win this account. “I worked very hard with De Keyser Expeditions’s point man, Jan Segers, to nail down this business” said Van Doorslaer, “and in thanks our combined persistence, the hard work is paying off.”
Geert’s activities are not only limited to leading Aan Boord Cargo and representing them within Aeroceanetwork.
Ukraine: Sarmat brewing group has increased its malt production capacity
On June 20 Sarmat brewing company has finished the reconstruction of its malting unit at ZAO Dnepr Brewery...more info
USA: This year's barley crop is showing the potential for excellent yield
This year's barley crop continues to show the potential for excellent yield, Farm & Ranch Guide published on June 23...more info
USA: Proposal to limit sales of Northwest hops is to be halted
The U.S. Department of Agriculture announced on June 20 it would halt consideration of a proposal to limit the sale of hops that grow in the Pacific Northwest
and are sold to brewers to give beer its bitter taste, according to Associated Press.
A coalition of hops growers had asked the agency to establish a federal marketing agreement to regulate the quantity of hops that could be brought to market by growers. It was an attempt to boost prices and compensate for an oversupply of the alpha acid extracted from hops and used to flavor beer. Such supply-limiting curbs on agricultural production go into effect after a majority of growers approve the proposal through a referendum.
But after more than two years of deliberations, USDA's Agricultural Marketing Services said it had ended the marketing order proceedings prior to putting the issue to a vote. Agency officials determined there was no demonstrated need for limits on the amount of U.S.-produced hops released into the world market and that there would be no positive economic benefit on the hop industry from such an order.
"It's up to the advocates for the order to make their case, and on several levels, the case failed to reflect convincing industry support," said George Chartier, a spokesman for Agricultural Marketing Services in Washington, D.C.