Molson Coors Brewing Company announced on November 1 higher consolidated net sales and sales volume, and higher net income for the third quarter of 2005 compared to the third quarter of 2004. Higher consolidated sales volume, net sales and net income were attributable to including Molson Inc. results in the third quarter of 2005 but not in the third quarter of 2004. Net income in the third quarter was $108.2 million.

For the 13-week third quarter ended September 25, 2005, the company reported net sales of $1.6 billion and sales volume of 12.8 million barrels, or 15.1 million hectoliters (hl). Excluding special items, the company reported after-tax income of $129.5 million* (or $1.51 per share) for the third quarter, down 4.1 percent from 2004 on a pro forma basis. Excluding special items and merger-related amortization expense, after-tax income was $139.1 million* (or $1.62 per share), down 3.7 percent from 2004 on a pro forma basis. (*See table below for reconciliation to nearest U.S. GAAP measure.)

The company's effective tax rate for the third quarter 2005 was 6.4 percent, or 13.1 percent excluding special items, and 15.0 percent excluding special items and merger-related amortization. For comparative purposes, ...More Info

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Fomento Economico Mexicano, S.A. de C.V. (FEMSA) announced on October 28 its operational and financial results for the third quarter and nine months of 2005. FEMSA’s total revenues increased 8.1% to Ps. 26.625 billion (US$ 2.5 billion), led by 21% growth at Oxxo, combined with strong performance at FEMSA Cerveza and Coca-Cola FEMSA.

Income from operations increased 10.7% to Ps. 4.144 billion (US$ 383 million), driven by growth of 17% at FEMSA Cerveza and 18% at Oxxo. Net majority income increased 9.5% to Ps. 1.641 billion (US$ 152 million). Net debt of Ps. 28.017 billion (US$ 2.6 billion) in 3Q05, a reduction of US$ 273 million from 2Q05.

Business unit FEMSA Cerveza’s total beer sales volume increased 6.7% (5.5% domestic and 18.7% exports) and expanded its operating margin by 160 basis points to 25% of total revenues.

Oxxo increased its total revenues by 20.7%, driven by the opening of 122 net new stores and a 7.4% increase in same-store sales during the quarter. Oxxo remains on track to open approximately 600 net new stores for the full year.

"In the third quarter we continued to deliver solid growth, demonstrating the strength of our integrated beverage strategy. I am very pleased with the ...More Info

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Yangjing Brewery Group, a leading Chinese beer maker based in Beijing, announced on October 28 that it has carried on further its expansion scheme in south China by inaugurating the Yanjing Brewery (Yulin) Co., Ltd. in Yulin city, Guangxi, recently, according to Asia Pulse.

Earlier, Yanjing Group has taken over the No.1 beer brand in Guangxi Guilin Liquan and set up the Yanjing Brewery (Guilin Liquan) Co., Ltd.

The newly launched Yanjing Brewery (Yulin) Company was jointly funded by the Beijing Yanjing Brewery Co., Ltd. and Yanjing Brewery (Guilin Liquan) Co., Ltd. Beijing Yanjing Brewery Co., Ltd. (SSE:000729) is listed on the Shenzhen Stock Exchange, in which Yanjing Group takes a controlling 68.13 percentage stake.

Yanjing Brewery (Yulin) Company is designed to have an annual beer output capacity of 0.4 million tons, including 100,000 tons during the first phase that will cost 210 million yuan.

Since 2002, Yanjing Group has carried out a strategy of consolidating the Beijing market, expanding the north China market, tapping the nationwide market, and penetrating into the international market. Yanjing Brewery (Guilin Liquan) now has an annual output of 0.5 million tons.

Beijing Yanjing Beer Group Corporation, with its quality beer and first class beverage products has developed ...More Info

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World’s brewing giant SABMiller has launched a $1,36-billion (R9,1-billion) tender offer to minority shareholders of Colombian brewer Bavaria SA, in which it recently purchased a 71,8% stake, Reuters communicated on October 28.

SABMiller, the manufacture of of Miller Lite, Castle and Peroni beers, announced in a statement on October 28 it is offering $19,48 per share cash. Should all minorities accept the offer, it will cost SABMiller a total of $1,36-billion, according to Reuters.

The move comes shortly after SABMiller launched a tender offer of $25,34 per share to buy out the remaining shareholders in Backus y Johnston, Peru's largest brewer. SABMiller holds a 79,7% stake in Backus as a result of its Bavaria acquisition, I-Net Bridge commented.

That offer remains open until November 3, and could cost up to $478-million.

Colombia's Santo Domingo family, which holds 15,1% of SABMiller as their price for selling Bavaria to the global brewer, as well as the International Finance Corporation (IFC), the multilateral development finance body, have already committed to selling a combined 4,62% stake in Bavaria to SABMiller.

The family have reaffirmed their long-term commitment to holding SABMiller shares, however. This leaves smaller shareholders, in Colombia but also scattered in other South American countries, to ...More Info

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Dutch brewing force, Heineken NV, plans acquisitions and branding to win over young consumers as it fights back in a consolidating industry, the Financial Times reported on October 31.

Without citing its source, the paper said Brazilian brewer Cervejarias Kaiser, owned by Molson Coors Brewing Co., was one possible target. It said the brewer was also looking at opportunities in China. Speaking to reporters on October 25, Carlos Fernandez, Modelo’s chief executive and chairman said that he believes Molson Coors will offload its Brazilian subsidiary to Heineken.

The Dutch brewer currently distributes its beer in Brazil through Kaiser, and is seen as the brand’s most likely buyer together with Mexican beverage conglomerate Fomento Economico Mexicano, or Femsa, which distributes its beer in the US through Heineken, and sells Coors Light in Mexico for Molson Coors.

Molson Coors bought Kaiser in 2002 for US$765m but the unit has proved problematic for the recently-merged North American company.

The newspaper cited Heineken Chief Operating Officer Marc Bolland as saying the firm wants to pursue "worldwide scale" through local and regional buys as well as organic growth.

Heineken declined comment on a report by Belgian newspaper Le Soir on Saturday that Heineken and Belgian rival InBev have ...More Info

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Companhia de Bebidas das Americas (AmBev), the Brazilian arm of the InBev NV group, is expected to report that earnings nearly tripled in the third quarter as robust beer sales helped offset a foreign exchange impact, Reuters posted on October 28. Five analysts surveyed by Reuters forecast, on average, net profit of 384.2 million reais, up from 131.7 million reais a year earlier and 305.2 million reais in the second quarter.

AmBev, which was bought last year by Belgium's Interbrew, now called InBev, is slated to report earnings on November 3. Third-quarter net revenue is expected to rise 30.5 % from a year earlier and 4 % from the second quarter, to 3.85 billion reais, buoyed by healthy sales at home and abroad.

AmBev reported earlier this month that the volume of its overall beer sales rose 4.4 percent in the quarter from a year earlier, and rose 3.4 percent in Brazil, its biggest market. So far this year, total beer sales are up 8.3 percent, including a 10 percent rise in Brazil, where the company has 68.3 percent of the beer market, according to AC Nielsen.

The increase in sales is likely to have helped offset the negative effect of a prolonged ...More Info

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ABB Grain Ltd announced on November 1 that it has reviewed its gross barley pool indicators for 2005/2006 for its east coast pools and has left unchanged its estimate for Malting Barley, at A$190/tonne.The company’s estimate for Feed Barley also remains unchanged at A$155/t.

However, ABB has begun a new Malt 3 grade on the ‘east coast’ to capture malting barley of insufficient quality to make the higher grade of Malt 1. It will include Schooner, Sloop, Gairdner and Grimmett varieties.

Malt 3 currently attracts an indicative price of A$170/t, or A$20/t less than Malt 1.ABB Grain’s general manager marketing, Nigel Officer, said ABB was making a concerted drive to secure more barley, especially in New South Wales.

“This is the first time ABB has been able to offer pool products to New South Wales and Queensland growers and we’re very keen to demonstrate we’re here to secure their barley,” Mr Officer said.

“Growers will be able to see what marketing options we have for their grain – whether it’s barley, wheat or a range of other commodities – and compare our products with our competitors.

“ABB has extensive experience and knowledge in running pools and we’re keen to provide growers in New ...More Info

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OSU Scientist, Fred Stevens has been studying the compounds found in hops for the last ten years. He says the small yellow powder is generating a lot of interest across the globe,

OSU Scientist Fred Stevens said: "Now people are duplicating our results and building it further so theres now a lot of literature appearing on this particular compound." The value may be huge for preventing prostate, breast or colon cancers.

OSU Scientist Emily Ho says, "Xanthahumol is able to stop the cell growth. Basically with the Xanthahumol we can see the slows the cell growth of cancer cells compared to the untreated cells. So that's a good thing for cancer. You want to slow growth."

This doesn't mean you should go out and hit your local pub or pick up a six pack. Scientists don't go as far to say drinking beer will prevent cancer, they still don't know how well the body absorbs Xanthahumol. But you should know not all beer is equal.

The domestic brews have low levels of the compound while porter, stout and ale brews contain higher levels. The compound also appears to be a powerful antioxidant, even more so than vitamin E. It also looks like it ...More Info

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