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

• The German brewer Holsten, which is subject to a takeover bid from Danish brewer Carlsberg, announced on March 15 that it saw its sales in 2003 fell 10% ...more info



• Australia: One of the world's biggest barley exporters, Adelaide-based ABB Grain, recently advised growers to expect a malting barley price of $175 to $185 a tonne ...more info



• Canada: Molson Inc. announced on March 15 the appointment of Kevin T. Boyce to the position of President and Chief Operating Officer, North America ...more info



• Brazil: One of AmBev’s minority shareholders has questioned the company’s merger with Interbrew ...more info



• USA: The boss of Anheuser-Busch, the world’s largest brewer, saw his total compensation package before options jump nearly 11% in 2003 ...more info



• Belgium: In 2003, Belgian brewery Duvel Moortgat's consolidated turnover has risen by at least 12%, the company has recently announced ...more info



• USA, Los Angeles: Chicago Pizza & Brewery Inc. said on March 12 that board member Louis Mucci would become chief financial officer on March 15 ...more info



• Canada's Sleeman Breweries Ltd., basking in the success of its new low-carb beer, hopes for an acquisition in the next six months ...more info

Brewery News

Mexico's top brewer Femsa filed a lawsuit on March 12 in the United States to block the transfer of U.S. assets in the recently announced merger deal between Belgium's Interbrew and Brazil's AmBev. Femsa, which brews Sol, Tecate and Dos Equis brands, said the lawsuit was filed in the U.S. federal court for the Southern District of New York on grounds its U.S. subsidiary Wisdom that owns a 30 percent chunk of Labatt USA, currently controlled by Interbrew, was not consulted about the Interbrew-AmBev deal. Femsa said one reason for filing the lawsuit is to try to stop the transfer of Interbrew's stake in Labatt USA to AmBev. "Femsa believes it is necessary to launch this legal action in order to preserve the rights of Wisdom as the owner of the minority stake in the association," Femsa said in a statement. FEMSA announced on March 12 that its United States subsidiary, Wisdom Import Sales Co. ("Wisdom"), has commenced litigation in the United States District Court for the Southern District of New York, in Manhattan, against Interbrew, Labatt Brewing Company Limited ("Labatt"), and certain of their affiliates. “The litigation seeks to enjoin certain aspects of the transaction announced on March 3, 2004 by Interbrew and the Brazilian brewer AmBev, including those parts of the transaction that involve a transfer of the majority interest in the limited liability company that governs the United States joint venture between FEMSA subsidiary FEMSA Cerveza and Interbrew subsidiary Labatt,” Femsa reported. “It is FEMSA's position that Wisdom's minority shareholder rights will be imminently violated because, among other things, the transfer of ownership is scheduled to occur in connection with the announced transaction, but without the required approval of Wisdom or its directors on the board of the joint venture company. FEMSA found it necessary to take this legal action in order to preserve Wisdom's rights as the holder of the minority interest in the joint venture company,” the company said...more info

Germany: European regulators are set on March 16 to rule on a proposed €1 billion merger between beer giants Carlsberg and Holsten, EUpolitix reported today. Danish group Carlsberg Breweries’ bid to acquire German Holsten-Brauerei was set up internally after the company received a green light from Christian Eisenbeiss - which holds a 51 per cent ownership share of the Munich-based company. Carlsberg plans to sell on Holsten's König and Licher breweries to another German beer manufacturer, Bitburger, and has an option to dispose of Holsten's mineral business. Commentators see a link in moves within the German beer industry to disarray resulting from the government’s deposit recycling scheme that has reduced sales and created deficits. If the tie-up is approved, Carlsberg would become the fifth-biggest brewer in Germany.

The Peruvian beer maker Backus, or Union de Cervecerias Peruanas Backus & Johnston, is under investigation from the country’s consumer protection agency Indecopi, following allegations from rival Latin American brewer Ambev it is involved in anti-competitive practices, according to media. The allegations revolve around the issue of beer bottles. All brewers in Peru use the same bottles to prevent competitors from smashing up bottles and allowing increased recycling. Ambev is currently building a US$40m brewery in Peru, which it hopes to be operational this year. However it claims Backus is trying to "impede or unjustifiably delay" its entry by stopping it from making the beer bottles. In order to manufacture the bottles, Ambev must join a private sector industry committee. However the committee, dominated by Backus, has so far disallowed AmBev from joining. A decision from Indecopi is expected in 120 days.

Thailand, Bangkok: Several leading international beer brands are set to enter Thailand's annual 1.3-billion-litre beer industry, currently dominated by local brands, Washington Times posted on March 16. Thai Asia Pacific Brewery, which makes Heineken locally and dominates the premium segment, is launching at least two new brands this year, including Tiger. Philippines-based San Miguel announced plans to enter the fray with beers to suit every budget. Established local brewers appear largely unconcerned. "We at Chang welcome the newcomers into this competitive market," said Thanit Thamsukati of Beer Thai, makers of Chang beer. Thai beer consumption has gone up from 200 million liters in 1995 to 1.3 billion liters last year.

Chinese beer maker Beijing Yanjing Brewery, one of China’s top three brewers, has posted a 20% increase of its 2003 net profit up to ¥241.9 million versus last year. The increase was attributed to the improved sales and reduced cost, which boosted the balance sheet. The company reported pretax earnings of ¥337.5m, up 43% from ¥235.4m in 2002. Revenue’s were up by close to a quarter to ¥3.43 billion in the year. Medium and high-priced beer accounted for more than one-fifth of its total production, Beijing Yanjing Brewery said. The company has had success in expanding its traditional sales territory of Beijing.

Malt News

Maltsters merge to strengthen global supply capability. Epis-Centre, the agricultural cooperative in the centre of France and owner of Malteries Franco-Suisses, expands in malting by acquiring shares of Boortmalt NV. The two companies have come to an agreement to join forces and become one of the major global European malt suppliers, under Boortmalt management with 500 000 T capacity in Belgium, France, Croatia and China. The company will further operate export silos in Antwerp (Samga & Sobelgra). The merger will create a strong malting group with the following competitive advantages : - A direct sourcing link to one of the main high quality barley growing areas in the centre of France and access via its Belgian operations to other European barley sources; - Control of barley from field to breweries in order to offer full trace-ability and food safety standards through the Epis-centre know-how including new malting barley varieties testing; - ISO certification of the plants, HACCP and GMP; - Appreciated first rank supplier by most of the major international and regional brewers; - Offering synergies between malt and barley trading; - Proprietary large storage capacity and vessels loading facilities in Antwerp and on the Mediterranean shore, and mastered logistics with own rail cars fleet to best answer of customer demand. - One of the most modern production facilities available with more than 50% of capacity built within the past five years with stainless steel state of the art technology according to customer requirement. - Excellent financial position of both companies that would enable further development in order to improve global offer to key customers...more info

Malt export licence bookings in the EU were 1.671 million tonnes from July 1, 2003 until February 24, 2004. If bookings continued at the same pace till the end of the crop year, they would reach a number of 2,5 million tonnes, but that is totally unbelievable. Nevertheless last year's licence total of 2.038 million tonnes may be topped this year. Since the time when export restitutions were abolished, malt exporters usually fix their licences a short while before shipments, thereby saving more expensive fees for long-term licences and bank interest. Only in September of last year, when exporters feared an export tax, additional licences were booked, but they should be used by now. In spite of these fixation practices there will always be differences between the actual days of licence taking and export shipments. As per Eurostat malt exports of the EU were 2.329 million tonnes in 2001, and 2.374 million tonnes in 2002. Early estimates for 2003 will be available soon.

EU malt export licence fixations:

(in tonnes)	2000 - 2001	2001 - 2002	2002 - 2003	July 1, 2003 - February 24, 2004
France	523,190	701,134	661,772	536,397
Germany	305,980	468,314	408,063	283,178
Belgium	277,584	296,368	287,850	247,532
U.K.	254,793	350,621	294,995	336,743
Finland	65,550	91,890	100,758	52,549
Denmark	52,326	96,812	94,791	52,437
Sweden	50,847	101,000	76,916	57,069
Netherlands	54,835	51,310	66,219	59,721
Ireland	26,003	35,145	31,140	26,900
Austria	4,850	8,840	8,620	7,636
Spain	3,000	2,400	5,640	10,000
Greece	1,800	1,744	1,306	600
Portugal	340	221	85	440
Italy	-	-	2	-
Total:	1,621,098	2,205,799	2,038,157	1,671,202

	Total Wheat malt, tonnes
Total 2000/2001	4,686
Total 2001/2002	12,805
Total 2002/2003	30,908
July 1/03 – February 24/04	4,872
	Total Roasted malt, tonnes
Total 2000/2001	23,967
Total 2001/2002	23,480
Total 2002/2003	23,603
July 1/03 – February 24/04	15,473

Barley News

With the lowest grain production in almost 40 years, Eastern Europe this year has turned from a net exporter to a major grain importer. Poor harvests in the EU and the Former Soviet Union—Eastern Europe’s traditional suppliers—have also created opportunities for the United States, Canada, and even Brazil to make significant sales into the region. Barley exports from Hungary, Romania, and Bulgaria are expected to drop by more than three-quarters to only 70,000 tonnes, while imports are forecast to double to nearly 300,000 tonnes, USDA reported on March 11, 2004. In 2003/2004 Australia barley export increases by 300,000 tonnes to 4.6 million tones in light of ample exportable supplies, USDA said in the same report. Turkey barley export is halved to 150,000 tonnes in 2003/2004 based on a tight domestic situation.

Canada: The CWB announced on March 15 in a news release that 2003-04 initial payments for wheat, durum, feed and designated barley will increase effective March 19, 2004. The increase in initial payments for feed barley will be $17.00 per tonne, while the increase for designated barley will be $10.00 per tonne. Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all sales revenue, less the costs of marketing, to Prairie farmers.

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 1.2274 March 16, 2004
Crop year		2003		2004
Parity		FOB Creil		FOB Creil
Position		July 2003		July 2004
Type	Variety	EURO	USD	EURO	USD
2RS	Scarlett	128.00	157.50	128.00	157.50
2RS	Prestige/Cellar	127.00	156.00	127.00	156.00
2RS	Aspen	126.00	155.00	126.00	155.00
2RS	Optic	126.00	155.00	126.00	155.00
2RS	Astoria	125.00	153.50	125.00	153.50
2RS	Cork	125.00	153.50	125.00	153.50
6RW	Esterel	nq	nq	117.00	144.00

nq - Not quoted

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

Graph of the week

Agenda

March 2004: PIVEX - INTERNATIONAL BREWING & MALTING FAIR ; New York City Real Beer Festival; Real Ale Festival; The Night of Large Thirst; Zythos Beer Festival; International course - Malting and Brewing Science; ALIMENTARIA 2004; FOODEX Japan 2004; ANTAD 2004; FOOD & DRINK EXPO 2004; Forth Russian Conference on Non-alcoholic Beer; 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: InterFood; INTERFOOD UZBEKISTAN /INTERFOODTECH 2004; INTERFOOD ST. PETERSBURG 2004; SIBFOODEXPO 2004; BEER. WINES & DRINKS International Beer; World Beer Cup; 2004 National Craft Brewers Conference; FOODASIA 2004; ASTANA FOOD 2004; INTERFOOD AZERBAIJAN/ INTERFOODTECH 2004; 43rd MBAA District Caribbean Convention; IFEX 2004; EXPOVIVIENDA 2004;
May 2004: EBC SYMPOSIUM 'FOOD SAFETY & TRACEABILITY'; CANADEAN'S 4th INTERNATIONAL BEER CONFERENCE; CITBUSMED 2004; PIVO, GASTRO, BAKERY / Bulgaria; ALCO + SOFT 2004 / Ukraine; FOOD & DRINKS/FOOD TECHNOLOGY 2004 / Moldova; Beer International Brewing Technology Exhibition / Russia;

More events are available on site e-malt.com

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