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

• Finland: A drop in beer sales was registered in Finland in 2003, according to figures released recently ...more info



• Brazil: Schincariol intends to boost its spending on advertising. Executives at the Brazilian brewer said this week that they intend to keep up the pressure on AmBev ...more info



• Peru: Columbian beer and beverage company, Empresarial Bavaria, has emphatically denied rumours of the sale of its majority stake in Peru’s Union de Cervecerias Peruanas Backus & Johnston ...more info



• Canada: Unionized Molson Brewery workers voted 80.2 per cent in favour of a new seven-year collective agreement on January 25 ...more info



• The Chinese and German beer markets were not currently attractive markets, SABMiller’s chief executive officer, Graham Mackay, has warned ...
  
  
• Taiwan Tobacco and Liquor Corp. (TTLC) is hoping to establish a foothold in the mainland for Taiwan beer ...
  
  
• UK's Wolverhampton & Dudley Breweries Plc served up strong Christmas sales as its pubs in residential areas continued to weather a slowdown in consumer spending growth ...
  
  
• Top Russian brewer Baltika plans to launch water purification facilities at its Khabarovsk brewery in Russia’s Far East, early February ...
  
  
• Belgium's Interbrew is not likely to try to buy Brazilian peer AmBev as had been recently speculated as it had neither the money nor the interest to do it ...
  
  

Brewery News

China: Heineken N.V. announced on January 28, 2004 that it has reached an agreement, through its associated company Heineken Asia Pacific Breweries China Pte Ltd (Heineken APB), to acquire a stake in Guangdong Brewery Holdings Limited (Guangdong Brewery). Heineken APB has entered into an agreement to acquire an approximately 21%-stake in Guangdong Brewery through a combination of 133.8 million new shares in Guangdong Brewery and 165.5 million existing shares from GDH Limited at the price of HK$1.85 per share. The total acquisition is valued at EUR 57 million of which Heinekens share is EUR 28.5 million. The transaction will be funded from existing cash resources and will be earnings enhancing. GDH is the majority shareholder of Guangdong Brewery. Heineken APB is part of the 50-50 joint venture between Heineken and Fraser & Neave in the Asia-Pacific region. The deal is subject to approval by the independent shareholders of Guangdong Brewery. Mr Thony Ruys, Chairman of Heineken NV said, The Guangdong province is one of the most important beer markets in China. The strong position of Guangdong Breweries in this region offers an excellent platform for further growth of the Heineken brand. On 9 January 2004, it was announced that Heineken APB was to become the vehicle for the production and marketing of beer and other strategic activities such as investments, mergers and acquisitions in China. Heineken APB will combine the Chinese activities of Heineken and Asia Pacific Breweries...more info

Russian brewing companies output 75.76 million hectoliters of beer in 2003, 7.8% up versus 2002, according to data released by the State Statistics Committee on January 23. It is indicative that the biggest 11 Russian breweries hold 75% of the beer market and only 25% is held by the rest 290 beer makers. According to analysts, some small breweries are to disappear in 2004 if adequate action is not taken. The rumors about reaching the saturation of beer production growth in Russia started to be spread in 2001. However, now analysts say that the potential for the growth of Russian beer output was not exhausted. They also said that Russian beer market is to increase by 6% in 2004. In spite of excise politics of the government, which increase the excise on spirits with 35% and on beer with 47% in the last 3 years, Russians prefer more and more beer. Since 1999 to 2002 the share of beer consumption increased from 13% to 20%. Now Russia has a great potential for the premium beer segment. According to analysts, Russians prefer high priced premium beers to low priced beers. Premium beer segment held 3.5% share in the beer market in 2003 versus 2% in 2002, Business Analitika revealed. Number one brewery in this segment is again Baltika with 18.3% of premium beer in all its beer sales. Then there come Stary Melnik (14.7%), Bochkaryov (13.8%), Nevskoye (12.1%) and Zolotaya Bochka (8.6%). Regarding beer brands of the premium beer segment, first positions are held by Holsten (17.3%), Efes (16.7), Lowenbrau (12.9%), Miller (10.7%) and Tuborg (9.4%).

Mexico's top brewer Grupo Modelo said on January 26 it had raised the prices of some of its brands by between 4 and 5 % to adjust for inflation in 2003, Reuters released. Modelo spokesman Jose Pares said the price rise would affect certain brands in parts of the country, but declined to provide further details. He said he did not expect other rises for 2004. The rise comes after Modelo and its Mexican competitor, bottler and brewer Femsa, froze prices nearly two years ago amid a domestic economic slowdown and weak growth in Mexican beer consumption. "In early January certain (price) adjustments were made in certain areas of the country, not in all, and those adjustments reflect inflation," Pares told Reuters. "We don't expect other rises later in the year." Mexico's economy has been weak for the last three years, although inflation dropped to 3.98 percent in 2003, its lowest level in 35 years, amid conservative monetary and tax policies. According to personnel at two Modelo distributors contacted by Reuters, as of Jan. 1 prices had gone up by about 5 pesos (46 U.S. cents) per case. The price of a case of 20 half-liter bottles of its popular Corona brand, for example, rose to 91 pesos ($8.32) from 86 pesos. A case of 24 cans of Modelo beer rose to 183 pesos ($16.73) from 178 pesos. Analysts expect 2004 to be a better year for beer in Mexico, as the economy strengthens and more people buy beer. ($1=10.9340 pesos)

Japanese brewing force Asahi Breweries, Ltd. has recently announced that in 2004 it will pursue renewed growth as a comprehensive alcoholic beverage major. 2004 targets for beer and happoshu (low-malt beer) sales are of 205 million cases: 141.5 million cases of beer and 63.5 million cases of happoshu. (1 case = 633ml x 20 bottles) In 2003 Asahi Breweries’ sales volumes amounted to 149.8 million cases for beer (-7.8% ytd), and 54.2 million cases for happoshu (+15.3% ytd), for total beer and happoshu sales of 204.0 million cases (-2.6% ytd). Overall, the market for alcoholic beverages remained unfavorable during 2003, as domestic demand continued to be negatively affected by weak economic conditions and tax increases, resulting in the second consecutive year of declining sales volumes, Asahi Breweries said. The core of the alcoholic beverage market, beer and “happoshu” (low-malt beer), was negatively affected by tax increases of happoshu and an unusually cool summer, resulting in the first decline in the happoshu market, and the second year of declines in the combined beer and happoshu market. In 2003 the core beer brand, “Asahi Super Dry ”, recorded year-on-year declines in sales volumes against the backdrop of the prolonged weakness in the beer market, but faired better than the industry as a whole, and continued to expand its brand presence in the market place. In the happoshu segment, strategies to further cultivate and expand the Honnama brand, such as the introduction of Asahi Honnama Aqua Blue in July, helped to drive two-digit growth in sales volumes of happoshu, which was the highest growth recorded in the industry. In 2004 the Company aims to revitalize the beer market segment with compelling new products that will draw consumers, following the staple of our beer business, the flagship “Asahi Super Dry” brand. For “Asahi Super Dry”, the Company is working to maximize the product's potential by detailed market segmentation sales promotion strategies in both the home-use and the bar and restaurant-use markets. In 2004 Asahi Breweries intends to successively introduce innovative new products that leverage the attractiveness of Happoshu, and to further strengthen the market position of the popular Honnama brand.

Breweries in the United States

U.S. Breweries Operating in 2003:
Regional Specialty Breweries	48
Microbreweries	358
Brewpubs	920
Total Craft Breweries	1,326
Large Breweries	19
Regional Breweries	20
Total U.S. Breweries	1,365
2003 U.S. Openings:
brewpubs	50
microbreweries	23
2003 U.S. Closings:
brewpubs	47
microbreweries,	12
regional brewery	1
large brewery	1

Malt News

German malting plant Kreuznacher Malzfabrik was closed, media reported on January 21. Kreuznacher Malzfabrik based in Bad Kreuznach (Germany), had a production capacity of 35.000 metric tonnes per annum.

In 2003 the Slovak Republic exported 195 thousand tonnes of malt, 20% more than in 2002. It is indicative that the growth was registered in spite of diminishing by half the export aid, it was recently reported.

Barley News

Canada: Barley production for 2003-2004 increased by 65% from 2002-03 but supplies rose by only 41%, due to lower carry-in stocks, Agriculture and Agri-Food Canada revealed on January 20. Exports of malting barley and feed barley are both expected to increase sharply. Feed use of barley is expected to rise significantly from 2002-03, as barley displaces imports of US corn in western Canada. Barley carry-out stocks are forecast to increase but remain historically low. Off-Board feed barley prices are expected to decrease sharply. The CWB December PRO for No.1 CW Feed barley is $159/t, I/S VC/SL, versus the 2002-03 final realized price of $164/t. The CWB PRO for Special Select Two Row designated barley is $197/t, versus $242/t in 2002-03, due to higher supplies in North America and Australia. Barley protein levels of crop 2003-04 are also likely higher than normal, which may limit the amount selected for malting purposes. Fusarium is not a problem in wheat or barley. For 2003-04, total production of grains and oilseeds in Canada is estimated by Statistics Canada at 59.6 million tonnes (Mt) versus 43.3 Mt in 2002-03 and the 10-year average of 59.7 Mt. Canadian barley production for 2004-2005 is forecast to increase by 7%, Agriculture and Agri-Food Canada said on January 20. Farmers are forecast to decrease area seeded to barley by 3%, as area is shifted away from grains to oilseeds, following the strong oilseed prices in 2003-2004. The area of barley crop that is harvested for fodder is expected to be below the average in recent history. Average yields are expected to increase by 8% from 2003-2004, but remain below trend due to the dry subsoil conditions...more info

Ireland: GLANBIA’s malting barley growers were toasted on January 26 for their contribution to the production of quality pints, Irish Examiner.com reported. At the presentation in Kilkenny of Glanbia’s overall malting barley grower of the year award to Wexford tillage farmers John and Emily Kehoe, of Killscanlon, Foulksmills, growers heard their success in growing high quality malting barley reflects the high level of traceability now required by the brewing and distilling industry. Minister of State Liam Aylward, who presented the overall and regional awards, said quality and high standards are the cornerstones of the agriculture and food industry. He said consumers have a high level of awareness, not only about the final product, but also how that product is produced. “This competition promotes an awareness by farmers of the benefits of a clean and healthy environment for producers and consumers alike,” he said. Glanbia chairman Tom Corcoran said the group is delighted to be associated with a scheme that rewards growers who produce their malting barley under a quality assured system with excellent crop husbandry and farm records. In 2003, Glanbia handled 200,000 tonnes of grain at 41 grain intake plants in a catchment area stretching from Cork to Louth.


Theoretical malt prices.

* - 70/30 = 70% Average two Rows Spring and 30% Six Rows Winter
** - 50/50 = 50% Average two Rows Spring and 50% Six Rows Winter

Theoretical malt prices for crop 2004 are available on site www.e-malt.com/MarketPrices

Malting barley prices. French barley prices. Nominal prices.

EURO = USD 1.2641 January 28, 2004
Crop year		2003		2004
Parity		FOB Creil		FOB Creil
Position		July 2003		July 2004
Type	Variety	EURO	USD	EURO	USD
2RS	Scarlett	142.50	180.50	137.00	173.50
2RS	Prestige/Cellar	142.00	179.50	136.00	172.00
2RS	Aspen	140.00	177.00	134.00	169.50
2RS	Optic	140.00	177.00	134.00	169.50
2RS	Astoria	140.00	177.00	133.00	168.50
2RS	Cork	139.00	176.00	133.00	168.50
6RW	Esterel	138.00	174.50	122.00	154.50

nq - Not quoted

Prices for Danish and UK malting barley are available on site www.e-malt.com/MarketPrices

Graph of the week

Agenda

January 2004: INTERNATIONAL FOOD & DRINK EXHIBITION (IFDE 2004); The 2004 Barley Day; VLB Symposium Information Technology; Pianeta Birra - Beverage & Co. International Show of Beers, Beverages...;
February 2004: Pianeta Birra - Beverage & Co. International Show of Beers, Beverages; Orges brassicoles 2004: Des perspectives nouvelles de marchés; HOFEX 2004 Food & Drink; Canadian Food & Beverage Show; BIEREXPO;
March 2004: International course - Malting and Brewing Science; FOODEX Japan 2004; ANTAD 2004; 2004 BIENNIAL CONVENTION; Beer Auction 2004, the international exhibition of beer, technology and equipment; China Drinktec 2004. China International Exhibition on Beverage and Brewing Processing Technology

More events are available on site e-malt.com

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