E-Malt.com Flash 50a. December 06

Vietnam: Saigon Beer, Alcohol and Beverages Corporation (SABECO) and Anheuser-Busch International, Inc., signed on December 5 a Memorandum of Understanding (MOU) for cooperation and experience sharing in the beer business...more info

Russia: Russia's upper house of parliament on Wednesday, December 08, 2004 passed a tougher version of a bill controlling public beer sales and consumption after rejecting the original last month...more info

Germany: Danish brewing force, Carlsberg, plans to expand its Holsten brand in Eastern Europe and Asia, Nils Andersen, the company’s CEO told the Club of Hamburg Economy Journalists last week. Mr. Andersen thinks that Hoslten’s export and licensed sales abroad can be far higher than the actual figure of 1 million hectolitres. The Holsten group is one of the front-runners in the German beverage manufacturing market with a global production volume of 12.9 million hectolitres (hl) of beer and soft drinks and value sales of €752 million in 2003. In March 2004 it became part of Carlsberg, the world’s fifth largest, internationally active brewery group. The group's beer business was started by the Holsten-Brauerei AG, a brewery founded in 1879 in what is now the Altona district of Hamburg. Over the next 125 years, this company grew into one of Germany’s leading brewery groups pursuing a broad, multi-brand strategy in its domestic market and doing a flourishing business elsewhere through exports and licensees. In addition to the Holsten brewery in Hamburg, the group also includes the Mecklenburg brewery in Lübz, the Feldschlösschen breweries in Dresden and Brunswick and the Landskron brewery in Görlitz. The König brewery in Duisburg and the Licher brewery in the state of Hesse were also Holsten subsidiaries until their disposal in mid-2004. The group’s 2003 beer sales totalled around 9.1 million hl (5.6 million barrels), of which 7.6 million hl (4.6 million barrels) were sold in the domestic market and some 1.0 million hl (611,000 barrels) exported to 90 different countries. In addition to the group's own production, 0.6 million hl (366,000 barrels) of Holsten beer were brewed under licence in Russia, Hungary, England and the Dominican Republic.

Netherlands, Amsterdam: Shares in Heineken NV moved lower in morning trade (December 6) after the company told analysts it expects the weak dollar to eat into 2005 profits by more than previously forecast. Heineken sees the weak dollar denting net profit by EUR 51 million next year, versus a previous estimate of EUR 35 million, analyst Jan-Kees Mons at Cheuvreux said. The negative effect on operating profit has been raised to EUR 79 million from EUR 54 million, according to AFX News. The company has 57 pct of the expected US$ 800 million in cash inflow next year already hedged, with an implied rate of 1.33 usd to the euro, the analyst said. Estimates for 2004 were also adjusted slightly, with the brewer now expecting the negative currency impact to be EUR 83 million at the net level and EUR 127 million on operating profit. Heineken's current guidance is for lower net profit this year, as negative currency effects outweigh organic growth and contributions from acquisitions. A spokeswoman for Heineken was not able to immediately confirm the new currency effect estimates. The analyst said the new estimates reduce 2005 earnings per share by 0.03 eur. Given that part of its dollar exposure is not yet hedged, the new estimates from Heineken should come as "no surprise", the broker said. Cheuvreux repeated a 'underperform' rating on the shares. While the stock is below an estimated fair value of EUR 29, they see few triggers in the short-term for price gains and believe the discount to rival InBev is justified given the lower growth prospects of the Dutch brewer. At 11.46 am, December 6, the shares were down 1.6 pct to EUR 23.74 while AEX slipped 0.46 pct to EUR 341.90.

India: Cobra Beer Ltd., based in United Kingdom is to start commercial production of its Cobra brand of beer this week in Rajasthan...more info

Malt News

Vietnam: The Man Sugar Company launched on Monday, December 6 the first malt plant in Vietnam with a production capacity of 45,000 tonne malt per annum...more info

France: Champagne Céréales, Nourricia and EMC2 are creating a joint holding company, which will control the shares that every part will hold in its subsidiaries after the transformation. That will give the possibility to the Company to be a majority where each part was not able to be as individuals. It is the case in particular for Nutrixo and Malteurop. Champagne Céréales is the leading cereal group in Europe in term of collect. With a staff of 1500, the group has a turnover of near one billion Euros. The group pursues the diversification of its activities throughout its transformation network so as to ensure its farmers the best possible outlets for their crops, in spite of the uncertainties of the markets, agricultural policies, and business negotiations world-wide.

France: Malteurop has invested EUR 26 million into a new production unit in Vitry-le-François (Marne) aiming to develop the malting barley culture in North-Eastern France...more info

Barley News

World markets of feed barley are very firm due to a disappointing crop in Australia, high domestic prices in Canada and Russia, low EU export restitutions and most recently the political crisis in the Ukraine. Quotes FOB EU and Black Sea ports are around US$ 130,-. The Euro/U.S. Dollar exchange of 1.33 and the firm freight markets impede world trade. Statistics: U.S. barley exports June 1 – November 20 144.000 tons, Canadian August 1 - November 21 275,000 tonnes, Russian July-October 302,000 tonnes, Ukrainian July-October 2.2 million tonnes, EU export licences granted July-November 970,000 tonnes. USDA/IGC estimate the world import demand at 15.2-15.7 million tonnes. Compared to above figures (Australian exports n.a.), it leaves about 10 million tonnes still to be executed in the crop year 2004/05.

The EU Commission has to cope with a record crop, with the accession of 10 new member states, and the resulting problems of a large surplus...more info

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 2005 are available on site www.e-malt.com/MarketPrices

Malt Price Evolution

	Maximum average price for 2RS Malt, crop 2004: 270.50 EUR/tonne - in December 2003
	Minimum average price for 2RS Malt, crop 2004: 237.50 EUR/tonne - in September 2004
	Maximum average price for 6RW Malt, crop 2004: 252.50 EUR/tonne - in December 2003
	Minimum average price for 6RW Malt, crop 2004: 225.00 EUR/tonne - in October 2004

Source: E-malt.com

Malting barley prices. French barley prices.

Nominal prices.

EURO = USD 1.3431 December 08, 2004
Crop year		2004		2005
Parity		FOB Creil		FOB Creil
Position		July 2004		July 2005
Type	Variety	EURO	USD	EURO	USD
2RS	Scarlett	112.00	150.50	120.50	162.00
2RS	Prestige	108.50	146.00	119.50	160.50
2RS	Cellar	109.00	146.50	120.00	161.50
2RS	Aspen	108.00	145.50	119.00	160.00
2RS	Optic	108.00	145.50	119.00	160.00
2RS	Astoria	107.50	144.50	118.50	159.50
2RS	Cork	107.50	144.50	118.50	159.50
6RW	Esterel	101.00	136.00	105.00	141.50

nq - Not quoted
Prices for Danish and UK malting barley are available on site www.e-malt.com/MarketPrices

Table of the week

EU malt export licence fixations:

Graph of the week
Canada Malt Exports in 2003

Agenda

November 2004:
World Brewing Academy Applied Brewing Techniques. Munich, Germany;
World Brewing Academy Concise Course in Brewing Technology. Chicago, Illinois, United States;
INTERNATIONAL EXH FOR FOOD & DRINK INDUSTRY / WORLD FOOD UKRAINE 2004;
INT'L EXH OF WINES, ALCOHOLIC & NON ALCOHOLIC DRINKS & PROTECTION EQUIPMENT / EXPO DRINK 2004. Romania;
TALLINN FOODFEST 2004;
Belgian Beer Fest, Boston MA;
Teach a Friend to Brew Day;
FOOD PROCESSING MACHINERY EXPO 2004;
FISPAL RECIFE 2004 / INTERNATIONAL FOOD FAIR. Brazil.;
BRAU Beviale 2004. Nürnberg, Germany.;
Brewers' Association of America Conference;
Fall Fest-Of-Ale. Janesville, Wisconsin, United States;
Accrington Beer Festival. UK;
FOODAPEST 2004. 7th International Food, Drink and Food Processing Trade Fair;
INTERNATIONAL EXH FOR FOOD INGREDIENTS, ADDITIVES & FLAVOURINGS / INGREDIENTS RUSSIA 2004;
BELPRODUKT International Exhibition for Food and Beverages. Minsk, Belarus ;

December 2004:
FOODEX Food, Beverages and Food Technologies Fair. Ankara, Turkey;
Eten & Genieten Food, Beverages and Kitchen Supplies Exhibition. Amsterdam, Netherlands;
Americas Food & beverage Show and Conference;
Holiday Ale Festival;
Sint Niklaas Visits Brewery Ommegang;
IWEX 2004;
WORLD OF FOOD INDIA 2004;
KerstBierFestival 10th edition! Belgium;
VIETFOOD & DRINK 2004 / 3RD INTERNATIONAL EXH ON FOOD AND DRINK;

January 2005:
Big Beers, Belgians & Barleywines Festival. Vail CO;
35th Barley Improvement Conference. The American Malting Barley Association;
VIETFOOD (HANOI) 2005;
Atlanta Cask Ale Tasting;

More events are available on site e-malt.com