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• Beer maker, Danish Brewery Group, is to brew Heineken in Denmark, going head-to-head with Carlsberg ...more info



• Germany: The German brewer Holsten, which is subject to a takeover bid from Carlsberg, saw its sales volumes fall 10% in 2003, to 12.9m hectolitres ...more info



• Chile's largest brewer, Compania Cervecerias Unidas (CCU), announced on February 5 it has seen its fourth quarter net profit increase 59% versus last year to 18.117 billion pesos ...more info



• Poland: Polish brewing company, Zywiec, intends to merge with its subsidiary Warka ...more info



• Britain's Diageo Plc said on February 4 it amended its 2003 annual report filed with U.S. securities regulators, reducing reported income by about $97 million ...more info



• Brazilian beverage company AmBev , the world's fifth-largest brewer, said on February 4 it aimed to raise some 600 million reais ($206 million) to cover investment ...more info



• World brewing giant, Anheuser-Busch Cos., Inc. reported record sales and earnings for the fourth quarter and full year 2003 ...more info

Brewery News

USA: A California couple whose 20-year-old daughter was killed by an underage drunk driver filed a lawsuit against brewers Anheuser-Busch Cos. Inc. and SABMiller Plc unit Miller Brewing, claiming their advertising is targeted at minors, Reuters reported on February 4. The suit, which names Anheuser-Busch Cos. Inc. SABMiller Plc unit Miller Brewing as defendants, was filed in Los Angeles County Superior Court. A similar case filed in November did not involve the two brewers. "We allege and intend to prove that these manufacturers are luring underage drinkers into potentially life-threatening addictions before they have the maturity necessary to make an informed decision whether to consume alcohol," plaintiff's attorney Steve Berman said in a statement. The lawsuit, which seeks restitution based on profit gained from marketing to underage consumers, claims that packaging on some products such as Anheuser-Busch's "Doc" Otis' Hard Lemon Malt Beverage and Miller's Jack Daniel's Original Hard Cola resemble packaging on soda. Anheuser-Busch, maker of brands such as Bud Light and Michelob Ultra, said it had not seen the lawsuit, but defended its advertising. "Our advertising practices are sound, as was confirmed by the Federal Trade Commission report on advertising and youth released in September 2003," Anheuser-Busch Vice President Francine Katz said in a statement. A Miller spokesman did not return calls seeking comment. This lawsuit follows a similar case in which a plastic surgeon sued a group of alcohol companies, contending their advertising is aimed at teenagers. Miller and Anheuser-Busch were not named in that lawsuit. The earlier suit, filed in the District of Columbia, named as defendants the Beer Institute, the trade group for the malt beverage industry, as well as Dutch brewer Heineken NV , Coors Brewing Co., a unit of Adolph Coors Co., Diageo PLC, Bacardi, Mike's Hard Lemonade Co., Kobrand Corp. and Brown-Forman Corp...more info

Thailand: Thai Asia Pacific Brewery Co, local producer and distributor of Heineken beer, has doubled the brewing capacity at its Nonthaburi plant. The Bt2.9-billion (US$74 million) expansion - to 200 million litres annually - will give Thailand the most modern and efficient Heineken brewery in the region. The plant employs about 300 people. Heineken has invested more than Bt8 billion (US$205 million) in the Kingdom since the factory in Nonthaburi opened in 1995, according to Associated Press. Anthony Ruys, global chairman of Heineken, and Koh Poh Tiong, chief executive officer of Asia Pacific Breweries (APB) of Singapore, was present in Bangkok on February 4 to preside over the opening ceremony of the expanded plant. APB is a Singapore-listed company with 14 brewery operations in eight countries in the Asia Pacific - Singapore, Malaysia, Thailand, Cambodia, Vietnam, China, New Zealand and Papua New Guinea. It is a joint venture between Singapore's soft-drink giant Fraser & Neave Ltd and Heineken NV of the Netherlands. The company manages a portfolio of over 40 beer brands and brand variants, with Tiger Beer and Heineken as its flagships. Thai Asia Pacific Brewery is a joint venture between APB and local partners, which are Thai Life Insurance Group, Thai Pure Drinks and Thai Military Bank. Panya Pongtanya, general manager of Thai Asia Pacific Brewery, said the expansion of the Nonthaburi plant would facilitate the company's plan to export Heineken beer from Thailand and the launch of new beer products to the Thai market later this year. He said the plant would serve the growth of the local premium-beer segment, where Heineken dominates the market with a share of 80 percent...more info

Japan's second-biggest beer maker, Kirin Brewery Co said on February 4 it expected to book a record operating profit of 100 billion yen ($948 million) for 2003 as cost cuts more than offset sluggish beer sales. Net profits seem to have stayed flat at around 32.5 billion yen as appraisal losses on fixed assets and other special losses rose, a company spokeswoman said. Revenue in the year to December 31 seems to have stayed at 1.6 trillion yen, falling 10 billion yen short of the company's target, but marketing and raw material costs were reduced by nearly 24 billion yen from 2002, she said. Kirin's 46-percent-owned Australian brewer Lion Nathan Ltd also performed well, with its operating profit likely to be three billion yen over target, she said. But sales of Kirin's beer and low-malt beer substitute "happoshu" were down one percent in 2003, hit by an unusually cool summer, a tax increase on happoshu and sluggish consumer spending. Kirin will reveal business results for 2003 on February 19. The company reported 32.54 billion yen in net profit on revenues of 1.58 trillion yen for 2002. It posted an operating profit of 89.79 billion yen.

Venezuela beer sales are forecasted to reach 1.75 billion litres in 2004, versus 1.5 billion litres of beer sold in 2003. Every Venezuelan consumes about 70 litres of beer per annum and Venezuela is still the biggest per capita beer consumers in Latin America. For comparison Mexico and Brazil, the nearest rivals, consume 50 litres of beer per capita. Analysts said that the whole beer consumption of Venezuela in 2004 is to improve versus 2003, when the country’s political and economic crisis worsened. However it still remains below the 2 billion litres registered in 2001 and 2002. “Light beers have proved the success story of recent years, replacing traditional pilsners as Venezuela’s most popular brands,” analysts said.

Republic of Moldova: Vitanta-Intravest SA, owned by Efes Breweries International B.V., has registered a turnover of US$ 25 million and a net profit of US$ 2.5 million in 2003, the brewery reported at a press-conference. Company’s beer sales increased 31% versus 2002. Vitanta holds two thirds of Moldova beer market. According to company’s analysts, national beer market is increasing 10-15% every year. For two years the company invested about US$ 8 million in equipment update and plans to spend about US$ 5 million in 2004. Efes Breweries International B.V. purchased 96.5% of Vitanta-Intravest for USD 12 million at the beginning of 2003.

Malt News

Canada: The Rahr Malting Company of Shakopee, MN and Alix, Alberta, Canada, announced on February 2, 2004 the purchase of Mid America Brewing Supply, a wholesale distributor of brewing ingredients based in Kasota, MN, according to Jim Halbur, Mid America Brewing Supply. “Mid America has emerged as a front runner in the craft brewery sales segment” said Gary Lee, President of Rahr Malting. “We are committed to supporting Mid America’s current customers and to bringing the wider craft brewery segment the best malt and brewing ingredients available.” “This was the next logical step for us” said James Halbur, Mid America’s General Manager. “The Rahr name has been synonymous with superior malt quality since 1847. We couldn’t ask for a better business partner to assist us in supplying our customers with the finest North American produced pale and wheat malts, backed by world class technical and customer support.” “This is as close as I think I’ll ever come to realizing my vision of the ultimate one-stop brewing supply shopping experience” said newly promoted Vice President of Sales Kelly Kuehl. “With Rahr’s backing we are looking forward to bringing the Mid America shopping experience to a larger audience while keeping the Mid America name and our same high level of customer service intact. With the 125 plus malts that we inventory in addition to hops, filters, filter aids and brewing adjuncts, we are ready to service the needs of breweries of all sizes.”...more info

Ukraine: French malt producer MALTEUROP Group intends to launch a malting plant on May 15 this year in Kharkov, Ukraine, Daniel Huvet, Malteurop’s CEO told Ukrainian press on February 4. According to the reports, the new plant will supply with malt Ukrainian breweries from Kharkov, Donetsk, Nikolaev and Dnepropetrovsk. In the future it will also sell malt to Russia and Belarus. Malteurop’s USD 14.7 million malting plant will be the largest in Ukraine and will process about 70-130 thousand tonnes of barley. The company intends to purchase the barley from the local farmers. The plant is being built on the territory of Rogan Brewery. It is known that Malteurop is investing 3 million Ukrainian hrivnas in Kharkov agriculture.

Barley News

Australian, Canadian and U.S. feed barley are offered at round about US $ 140,- FOB, EU feed barley at min. US$ 180. Reasons are: first of all our protectionist market system, but also the lack of cheap grain supplies from Eastern Europe, firm markets of oilmeals and other feeders and finally the firm Euro currency. Price levels of milling wheat and all feed grains are 50 % above intervention price levels on average. Feed barley costs above EUR 150,- in the consumption centers of Brittany, Vlanders, South Holland, Northwest Germany and Jutland, and little less in the U.K. Therefore malting barley of crop 2003 is EUR 160,- and more, delivered malthouse. As there is a variable freight cost from growers and coops to malthouses, feed mills and seaports, the malting barley premium is reduced to almost zero in some places, and quality barley disappears in the feed sector.

South Africa: A barley crop of 220,000 tonnes of barley of good quality was harvested in 2003 versus 150,000 tonnes in 2002. This quantity provides for most of the needs of 270,000 tonnes. Purchases from Canada and Australia secure total demand well into 2005.

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 1.2544 February 06, 2004
Crop year		2003		2004
Parity		FOB Creil		FOB Creil
Position		July 2003		July 2004
Type	Variety	EURO	USD	EURO	USD
2RS	Scarlett	139.50	175.00	134.00	168.50
2RS	Prestige/Cellar	139.00	174.50	133.00	167.00
2RS	Aspen	137.00	172.00	132.00	165.50
2RS	Optic	137.00	172.00	132.00	165.50
2RS	Astoria	137.00	172.00	131.00	164.50
2RS	Cork	136.00	170.50	131.00	164.50
6RW	Esterel	135.00	169.50	123.00	154.50

nq - Not quoted

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

French Malting Barley Price Evolution

	Maximum average price for 2RS Malting Barley, Crop 2003: 148.50 EUR/tonne - in November 2002
	Minimum average price for 2RS Malting Barley, Crop 2003: 124.00 EUR/tonne - in June 2003
	Maximum average price for 6RW Malting Barley, Crop 2003: 129.00 EUR/tonne - in November 2003
	Minimum average price for 6RW Malting Barley, Crop 2003: 115.00 EUR/tonne - in June 2003

Graph of the week

Agenda

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; GrainWorld 2004;
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
April 2004: World Beer Cup; 2004 National Craft Brewers Conference and trade show BrewExpo America;

More events are available on site e-malt.com

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