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• USA: Patrick Stokes, president and chief executive officer of Anheuser-Busch Companies, Inc., announced on January 14 that the Board of Directors has declared a regular quarterly dividend ...more info



• Russia: Grain exports in November fell to 954,200 tonnes from 1.19 million tonnes in October and 2.09 million tonnes last November ...more info



• Canada: A sharp recovery in the barley harvest and less competition from Europe will help Canadian exports return to a more normal 2.0 million tonnes ...more info



• SABMiller's plans to become China's biggest brewer are being challenged by a recent scramble for acquisitions by multinational brewers as China starts to surpass the US ...more info



• USA: Operating profit of Cargill, Inc. in the second quarter ended Nov. 30 increased 62% to US$513 million, the company said on January 13 ...more info



• Scottish & Newcastle announced on January 16 that Henry Fairweather, Group Human Resources Director would be taking early retirement at his own request later this year ...more info



• Ukraine: Scandinavian company, Baltic Beverages Holding (BBH), which owns Slavutich brewery (Zaporojie) and Lvov Brewery in Ukraine, plans to increase its stake in the Ukrainian beer market ...more info



• The Danish brewing force, Carlsberg, is losing its cache in its home market, a report in the Danish newspaper Boersen said on January 9 ...more info



• Netherlands: Royal Grolsch N.V. announced on January 8 that it will recognise non-recurring exceptional income in 2003 of €8 million, in respect of higher residual values of assets ...more info



• The per capita beer consumption in the Czech Republic reached 162 litres in 2003, placing the country traditionally first in the world in this respect ...more info

Brewery News

China: Belgian brewing giant, Interbrew, The World's Local Brewer©, announced on January 16 the closing of its transaction with the Malaysian Lion Group, originally announced in September 2003, to acquire a controlling interest in Lion Group's beer business in China. Along with Interbrew's other existing investments in China, this transaction positions the group as the third largest brewer in China with 21 million hectolitres sold per annum by 17 breweries present in 6 major provinces: Zhejiang, Guangdong, Hubei, Hunan, Jiangsu and Shandong. More specifically, it will achieve: a number one position in the Zhejiang (47 m inhabitants), Guangdong* (78 m inhabitants) and Hubei (60 m inhabitants) provinces; a top 3 position in Hunan (64 m inhabitants) and Jiangsu (74 m inhabitants); and a small presence in the Shandong province (91 m inhabitants). Patrice J. Thys, Interbrew Zone President Asia-Pacific, said: "In addition to strong volumes, well entrenched brands and local dominance, we have, through this transaction inherited a strong local management team which is a key resource we intend to fully leverage through ongoing training and development to deliver Interbrew's vision for the country." Interbrew acquired 50% of Lion Group’s interests in 11 breweries in China for US$131.5 million. Sale and purchase agreement was signed on September 5, 2003. Transaction closed on January 16, 2004. Interbrew has a call option to acquire the remaining 50% for US$131.5 million, exercisable 12 months after closing...more info

Chile's largest brewer, Compania Cervecerias Unidas (CCU), announced on January 8 its sales volume in the fourth quarter of 2003 climbed by 8.9% year-on-year. The rise was driven by sales growth in almost all of its beverage products in Argentina and in Chile. CCU has seen big success this year with a new joint venture to bottle Dutch brew Heineken in the region. CCU began producing and selling Heineken in June 2003. The company is controlled by Chile's Chile's Quinenco and Heineken NV of the Netherlands. CCU also sells juice, mineral water and wine and saw volume growth in the fourth quarter in most of those lines as well. According to press reports from January 13, CCU is considering entering the Brazilian market. The Chilean beverage maker is thinking about branching out of Chile and Argentina. “In the future there might be news on the matter,” Chilean newswire ValorFuturo quoted Guillermo Luksic, the president of Quinenco, CCU’s controlling shareholder. Beer sales volume in Chile grew by 7.2% in the fourth quarter of 2003, compared with the same quarter of 2002, to 1.2 million hectoliters. Argentina beer volume rose by 8.8% to 643,007 hectolitres.

Russia: The country’s second largest brewing force, SUN Interbrew, is the most probable buyer of the majority stake in Russia’s brewing plant based in Ekaterinburg, Patra, according to analysts. Another potential buyer could be Russia’s number six brewery, PIT. Experts’ estimations regarding the company’s cost is US$50 million, however the seller’s estimations are US$75 million, Russian newspaper Vedomosti reported on January 14. Last year Patra output 69 million litres of beer and held 0.9% of national beer market, according to Business Analitika. Majority stake of the company’s shares (50.56%) is held by ZAO Patra management, 25.5% - by RedkaufInvest and other 23.82% - by Damsel Ventures Ltd. In December last year, Sun Interbew reported third-quarter net profits of €19.1m, a leap of 71% on the same period last year.

Japan: Combined shipments of beer and "happoshu" low-malt beer by Japan's five major breweries in 2003 fell 6.3% from the previous year, down for the second straight year, according to data released January 15 by the brewers. Beer and happoshu shipments by Kirin Brewery Co, Asahi Breweries Ltd, Sapporo Holdings Ltd, Suntory Ltd and Orion Breweries Ltd totaled 513.2 million cases last year. One case holds 12.66 liters of happoshu or beer. Beer shipments dropped for the seventh year running, by 9.4% to 311.69m cases. Happoshu slid by 1.0% to 201.51m cases. This was Happoshu’s first year-on-year drop since it was launched in 1994. Happoshu overtook beer for the first time, however, in the market for households. The malt beer registered 52.2% share. It is the second consecutive year that shipments have slipped, with an unseasonably mild summer and a tax hike on happoshu being blamed. The sharpest ever fall was in 1976, when the government raised tax on beer. Asahi was the top brewer for the third straight year, gaining 1.5 pints in market share to 39.9%. Kirin slipped by half a point to 35.7% market share, while Sapporo was third with 13.1%, down one point.

Malt News

Ukrainian malting companies belonging to ZAO Ukrpivo output 135,091.2 tonnes of brewing malt in 2003, 7.8% more than in 2002, Ukrpivo revealed on January 14 to APK-Inform. According to the report, in December 2003 malting plants produced 14,505 tonnes of brewing malt. The largest Ukrainian producers of malt in 2003 were Slavutsky malting plant which output 67.4 thousand tones of malt, 5% more than in 2002; Berdichevsky malting plant with 26.5 thousand tonnes, 97.9% more than in 2002, Sarmat company with 14.1 thousand tonnes, 5.2% less than in 2002, ZAO Ukrpivo reported.

Barley News

Australia: With harvest now close to over in Australia it is clear that they have a significant improvement in supply compared to last year, HGCA reported on January 12. Latest crop estimates from ABARE suggest a barley crop of 7.74 million tones for 2003/04 (3.7 million tonnes in 2002/03). The planted barley area is estimated to be at 3.8 million hectares in 2003/04 (3.77 million hectares in 2002/03), achieving an average yield of 2.02 tonnes per hectare (0.98 tonnes per hectare in 2002/03). Australia is expected to see barley exports to increase this season compared to last year’s low level. Exports are forecast to return to 2001/02 level with 5 million tonnes of barley (2.5 million tonnes in 2002/03). Buying interest for Australian grain has been reported from China, amongst others, following its good quality and reliable delivery. Given this season’s low world stocks, the Australian crop should play an important role on world grain markets this year.

USA: A soft market and increasing demand for barley has prompted winter wheat producers to plant their smallest acreage since 1962, Idaho States Man reported on January 13. The U.S. Department of Agriculture on Monday estimated farmers committed only 720,000 acres to winter wheat this fall, down 40,000 from a year earlier. Farmers planted 703,000 acres in in 1962. Idaho Grain Producers Association Director Steve Johnson said the grain market is being affected by the rising presence of malt barley operators. “There´s a little more encouragement to produce other crops,” Johnson said. “In Idaho, we´re seeing the benefits of good barely contracts through Anheuser-Busch, Modello and Great Western. They´re competing to get the supplies and offering good contracts.” In addition, conditions and the market for wheat have been less than attractive since the mid-1990s, Weston grain grower Ray Buttars said. “One of the reasons is the lack of both topsoil and deeper soil moisture,” said Buttars, an association executive committee member. “And with the increased opportunities for growing malt barley, there´s at least an option that is more attractive to growers.” Prices last year averaged under $3.50 a bushel for wheat, but Buttars doubted the 5 percent reduction in acreage would do much to strengthen the market because of the huge amount of wheat produced worldwide.


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 1.2568 January 16, 2004
Crop year		2003		2004
Parity		FOB Creil		FOB Creil
Position		July 2003		July 2004
Type	Variety	EURO	USD	EURO	USD
2RS	Scarlett	143.50	180.50	141.00	177.50
2RS	Prestige/Cellar	143.00	180.00	140.00	176.00
2RS	Aspen	142.00	178.50	139.00	175.00
2RS	Optic	142.00	178.50	139.00	175.00
2RS	Astoria	141.00	177.50	138.00	173.50
2RS	Cork	141.00	177.50	138.00	173.50
6RW	Esterel	138.50	174.50	125.00	157.50

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; 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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