-
UK: Analysts at Merrill Lynch announced on April 6 it maintained their "buy" rating on Interbrew (ITK). The price objective has been raised from €25 to €27
...more info
-
Russia: The Dutch brewer Heineken refused to confirm reports on Friday that it was planning to invest some US$40m to build a brewery in Russia's Sverdlovsk province in the Ural
...more info
-
Peru's only brewer, Backus y Johnston, is continuing to meet local demand for its products in spite of a strike at the company’s Lima brewery
...more info
-
Czech Republic: Over 16 million hectoliters of beer was drunk in the Czech Republic in 2003. The Czechs lead the world in annual consumption at 162 liters per capita
...more info
-
China: US brewing giant Anheuser-Busch Inc is in talks with Shandong Jinan Beer Group Co Ltd for the possible purchase of a stake in the east China brewer, Jinan Beer
...more info
-
The Chinese brewer Huiquan Brewage Group said it expects to post a first-quarter loss this year, as pressure was brought to bear from higher raw material and energy prices
...more info
-
Ukrainian beer market is to grow 13% this year or with 2 million hectolitres up to 17,2 million hectolitres versus 2003, Sun Interbrew Ukraine revealed its forecast for 2004
...more info
-
The Belgian brewing giant Interbrew has come under fire form the country’s Prime Minister Guy Verhofstadt
...more info
-
USA: The Gambrinus Co. President Carlos Alvarez announced on April 2 that he had reached an exclusive agreement with the Trumer Brauerei in Obertrum, Austria, to brew
...more info
-
Africa: The Kenya Breweries Limited (KBL) has invested an estimated Sh255 million in a wastewater treatment plant
...more info
Brewery News
India: Cobra Beer, UK best-known Indian beer brand, is to start its local production. Cobra Beer has announced its collaboration with Mount Shivalik Group, the largest independent brewing company in India. Under the terms of the agreement, Mount Shivalik will brew Cobra under licence at its facility in Rajasthan, for the domestic Indian market. The companies have made a joint investment of $1 million in a Rajasthani brewery, which will begin production by September this year.
Mount Shivalik also brews Thunderbolt, Punjab Extra Strong, Golden Peacock and Stroh’s.
Announcing the deal, Cobra Beer founder and CEO Karan Bilimoria said: "It has been my dream to brew Cobra Beer in India again, and I am pleased to announce Cobra's partnership with Mount Shivalik. India's beer market is an emerging one with tremendous growth opportunities, and I am confident that we can provide Indian consumers with a truly international, super premium beer at affordable prices."
Sanjiv Bali, executive director, Mount Shivalik Group, said: “This agreement complements the strengths and strategies of both parties. Mount Shivalik Group is proud to be associated with a leading international brand like Cobra Beer and we are confident in the success that lies ahead.”
As part of the agreement, Cobra Beer will deploy its technical expertise at the brewery in Rajasthan, which is currently being upgraded to meet Cobra's stringent quality standards. Trial brewing is expected to commence in mid-April, with the first batch of locally brewed Cobra anticipated for September 2004...more info
The U.S. craft beer industry saw a 3.4 % growth in production in 2003, according to figures gathered and released by the Association of Brewers on April 5. Craft beer, often referred to as “microbrews,” celebrates its 34th year of consecutive growth. “2003 was a difficult year for the beer industry, but it was another solid year for craft breweries,” comments Paul Gatza, director of the Association of Brewers. “Overall consumption was down, and import’s growth rate of 1.9 % was the lowest figure for import growth in 12 years. What this means is that craft beers are increasingly making headway in the areas of market share and consumer enjoyment.”
Industry trends identified by the Association of Brewers include more brewery openings (81) than closings (73), several microbreweries becoming regional in size and distribution, brewpubs (restaurants with breweries) starting bottling or canning lines, brewpub operators opening second and third locations, a shift in sales toward off-premise locations and a 10 percent growth among regional specialty brewers.
The 3.4 percent growth rate in 2003 parallels the 3.4 percent growth rate posted by the craft beer industry in 2002. “One difference,“ Gatza says, “is the 2003 growth rate occurred in a year when the overall beer market in the U.S. declined due to extreme weather, a sluggish economy and war concerns. The fact that the craft beer industry grew at a greater rate than imports for the first time since 1996 shows a shift in the choices being made by the American consumer.”
In 2003, the craft beer industry produced 6,653,461 million barrels of craft beer in the United States. This 3.4 percent growth from 2002 means the net volume increase for 2003 was 220,714 barrels. (One barrel = 31 US gallons or 13.78 cases of 24 12-ounce bottles)). This is the equivalent to over 3 million cases of new craft beer sales. The total U.S. craft beer industry annual retail sales value for 2003 was over $3.5 billion...more info
Vietnam: Anheuser-Busch International Inc. is looking for investment opportunities in Vietnam, AFX-Asia said on April 5. Steve Burrows, chief executive officer and president of Anheuser-Busch International, will visit the communist nation this month for talks with the government and two state-owned breweries.
"The purpose of my visit to Vietnam is to meet with senior government and industry officials to discuss the future of the beer industry in Vietnam," he said in a letter to the Ministry of Planning and Investment carried by the ministry's mouthpiece, the Vietnam Investment Review.
Burrows said he wanted to discuss sharing "our experience in management, marketing, technology transfer and other disciplines" with Hanoi Brewery Corp (HABECO) and Saigon Brewery Corp (SABECO). "We would also like to discuss how we could cooperate with these two brewers to deal with the future challenges of increased competition, on both domestic and international levels, and to develop the popularity of their brands in Vietnam and in the region."
Anheuser-Busch International does not have any operations in Vietnam, but a ministry official told the newspaper it was considering taking a stake in one of the domestic brewers. "ABII (Anheuser-Busch) is interested in acquiring a minor share in HABECO or SABECO or going into a joint venture with one of the two corporations," the official was quoted as saying.
The company could not Ube contacted for confirmation. Anheuser-Busch is the world's largest brewer, operating 14 breweries, 12 in the US and two overseas. The company currently brews approximately 30 types of beer for sale in the US.
Brazil's second-largest brewer, Schincariol, filed a request with antitrust authorities on April 1 asking them to suspend a merger deal between its main rival, AmBev, and Belgium's Interbrew. AmBev and Interbrew announced last month they planned to merge operations in an $11.5 billion agreement to create the world's largest brewer in terms of volume, according to Reuters and The National Post. The deal has yet to be closed and needs approval from Brazilian and Belgium authorities.
Schincariol said in a statement the accord could hurt local competition. "The operation being studied increases the viability of AmBev engaging in predatory practices in the market by creating a company with an unimaginable potential for cash flow," Schincariol said. AmBev's press office said the company had been expecting the complaint and said it was ready to respond to any queries by authorities.
Because Interbrew had an almost negligible presence in Brazil before the deal was announced, analysts generally expect antitrust authorities to approve it.
Russia, Siberia: In May this year Russian beer maker Ochakovo is to start building its affiliated brewery in Tyumen, Siberia. On March 30 the company started to prepare the area designated for the construction. Firstly Ochakovo signed an agreement with OAO TyumenEnergostroy for carrying out the preparatory stage. OOO Ochakovo in Tyumen, the subsidiary of Moscow based Ochakovo Brewery, was already registered on February 18, 2004. The area of construction covers 4.3 ha.
Brewing production at Ochakovo in Tymen is to be launched in the second quarter of 2006. Soft drinks output will start in the second quarter of 2007. The planned production capacity of the plant is 120 million litres of beer and 40 million litres of soft drinks. Total investments will come to US$ 40 million.
Malt News
Mexican Imports of Malt, in Million US$
| Country |
1998 |
1999 |
2000 |
2001 |
2002 |
2003 (Jan-Aug) |
2002 (Jan-Aug) |
Growth (03/02) |
| United States |
24.0 |
19.6 |
23.7 |
41.5 |
32.1 |
4.6 |
24.9 |
-81.5% |
| Canada |
10.6 |
11.8 |
10.6 |
13.7 |
11.9 |
23.5 |
6.8 |
245.6% |
| Czech Rep. |
|
|
|
0.007 |
|
|
0.006 |
-100.0% |
| Others |
|
|
0.007 |
|
|
|
|
|
| Total |
34.6 |
31.4 |
34.3 |
55.2 |
44.0 |
28.1 |
31.7 |
-11.4% |
Source: Mexican Ministry of Economy
During the analyzed period the exports of Canadian and U.S. malt to Mexico were subject to tariff rate quotas (TRQs) as established under the provisions of NAFTA. However, as of January 1, 2003 these TRQs were completely eliminated, providing duty free access to Canadian and U.S. malt into the Mexican market.
Canada has taken advantage of the new market access conditions in Mexico and during the first 8 months of 2003 increased its exports up to 76,109 tonnes with a value of US$23.5 million, which represented an increase of more than 300% from the total exports reported during the first 8 months of 2002. On the other hand, during the first 8 months of 2003 the U.S. exports of malt to Mexico registered a decline of 79.4% from the exports reported during the first 8 months of 2002.
It is important to note that Canadian exports of malt to the world jumped from US$139 million in 1998 to US$154.4 million in 2002. However, only around 8% of those exports were sent to Mexico, which indicates that still there is a large potential to increase exports of malt to the Mexican market.
The two main beer producers in Mexico have announced multimillion dollars investments to increase their production capacity over the next few years. The expansion of the Mexican beer industry and the new market access conditions under NAFTA provide good opportunities for Canadian exporters of malt in the Mexican market.
Australia: A merger of two of the country's biggest grain companies - AusBulk and ABB Grain - is set to be negotiated within two weeks, despite the last talks between the two collapsing less than a month ago, Metro posted on April 3. As flagged in this paper on Wednesday, the two South Australian-based companies announced yesterday they had resumed discussions over a merger, just days after a sudden board spill at AusBulk, which saw its previous long-standing chairman and deputy chairman replaced. AusBulk's new chairman, Max Venning, said they had determined that discussions would resume with new approaches tabled to resolve the outstanding issues, which had led to the previous breakdown.
The main disagreement was over the two grower-controlled companies' relative valuations, with AusBulk unlisted but ABB Grain trading at near-record highs during the talks. A further dispute surrounded the role of United Grower Holdings, which controls 54 per cent of AusBulk.
It is understood ABB Grain has shifted its position and the two companies are now confident of reaching agreement and signing a memorandum of understanding on a merger in around two weeks, ahead of a joint board meeting to conclude the deal. That would allow the merger to be put to shareholders, who will have to give 75 per cent support, in time for it to be in operational before next harvest...more info
Barley News
EU malting barley plantings are estimated 6 to 7 % lower than last year by the German malt trading company Jochen Mautner Gmbh. Unlike last year when frost damaged winter grain areas were replanted mainly with malting barley in spring, a mild winter in most of Europe is expected to reduce the level of replanting for this spring, HGCA posted on April 5.
Theoretical malt prices.
| EURO = USD 1.2093 April 07, 2004 |
| Crop year |
2003 |
| Parity |
FOB Antwerp |
| Position |
Apr 2004-Sept 2004 |
| Conditioning |
Bulk |
In bags |
Bulk containers |
In bags in containers |
| Malting barley variety |
EURO |
USD |
EURO |
USD |
EURO |
USD |
EURO |
USD |
| 2RS |
Scarlett |
252.00 |
304.50 |
267.00 |
323.00 |
263.50 |
318.50 |
273.00 |
330.00 |
| 2RS |
Prestige/Cellar |
250.50 |
303.00 |
266.00 |
321.50 |
262.50 |
317.00 |
271.50 |
328.50 |
| 2RS |
Aspen |
249.50 |
301.50 |
264.50 |
320.00 |
261.00 |
315.50 |
270.50 |
327.00 |
| 2RS |
Optic |
249.50 |
301.50 |
264.50 |
320.00 |
261.00 |
315.50 |
270.50 |
327.00 |
| 2RS |
Astoria |
248.50 |
300.00 |
263.50 |
318.50 |
259.50 |
314.00 |
269.50 |
325.50 |
| 2RS |
Cork |
248.50 |
300.00 |
263.50 |
318.50 |
259.50 |
314.00 |
269.50 |
325.50 |
| 2RS |
Average price |
250.00 |
302.50 |
265.00 |
320.50 |
261.50 |
316.00 |
271.00 |
327.50 |
| 2RS |
FAQ |
247.00 |
298.50 |
262.00 |
317.00 |
258.50 |
312.50 |
268.00 |
324.00 |
| 6RW |
Esterel |
nq |
nq |
nq |
nq |
nq |
nq |
nq |
nq |
| * |
Asia Malt 70/30 |
nq |
nq |
nq |
nq |
nq |
nq |
nq |
nq |
| ** |
Asia Malt 50/50 |
nq |
nq |
nq |
nq |
nq |
nq |
nq |
nq |
|
* - 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 1.2093 April 07, 2004 |
| Crop year |
2003 |
2004 |
| Parity |
FOB Creil |
FOB Creil |
| Position |
July 2003 |
July 2004 |
| Type |
Variety |
EURO |
USD |
EURO |
USD |
| 2RS |
Scarlett |
121.00 |
146.50 |
126.50 |
153.00 |
| 2RS |
Prestige/Cellar |
120.00 |
145.50 |
125.50 |
152.00 |
| 2RS |
Aspen |
119.00 |
144.00 |
124.50 |
150.50 |
| 2RS |
Optic |
119.00 |
144.00 |
124.50 |
150.50 |
| 2RS |
Astoria |
118.00 |
143.00 |
123.50 |
149.50 |
| 2RS |
Cork |
118.00 |
143.00 |
123.50 |
149.50 |
| 6RW |
Esterel |
nq |
nq |
116.00 |
140.50 |
Graph of the week
Agenda
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;
June 2004:
ALIMENTARIA MEXICO International Food and Beverages Exhibition;
Hotelympia;
10th international symposium on pre-harvest sprouting in cereals;
BevTek / BrewTek;
IGC GRAINS CONFERENCE 2004;
26th Annual National Homebrewers Conference;
Coceral Congress 2004;
The 9th International Barley Genetics Symposium;
Little Oktoberfest;
More events are available on site e-malt.com
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