Base Currency: Euro, EUR on 28-July-2004 1 EUR = 1.2050 USD 1 EUR = 0.6614 GBP 1 EUR = 1.6058 CAD 1 EUR = 1.7235 AUD 1 EUR = 133.71 JPY 1 EUR = 3.6825 BRL 1 EUR = 35.0655 RUB	Base Currency: US Dollar on 28-July-2004 1 USD = 0.8302 EUR 1 USD = 0.5490 GBP 1 USD = 1.3326 CAD 1 USD = 1.4303 AUD 1 USD = 110.98 JPY 1 USD = 3.056 BRL 1 USD = 29.10 RUB
EUR/USD Chart

Singapore’s Asia Pacific Breweries Limited (APBL), announced on 26 July 2004 its intention to make an unconditional takeover offer for the purchase of the 23.09% of New Zealand brewer DB Breweries Limited (DB) that it does not already own. The offer price is NZ$9.50 cash per share. This represents a 20.25% premium to the last trade of NZ$7.90. The bid values DB at about NZ$479 million. In pre-bid agreements, Accident Compensation Corporation (ACC), the largest shareholder in DB after APBL and several other investors, have agreed to sell their entire holdings totalling 4,206,055 shares, into the offer. This means that APBL is entitled to record a relevant interest of 85.25% in the capital of DB. The offer is being made to enable APBL to privatise and de-list DB, and reflects APBL's strong long-term commitment to its business in New Zealand. APBL believes that DB's capital expenditure requirements can be met without the need to raise capital on the NZX, thereby making a stock exchange listing of DB less relevant. APBL's unconditional offer will allow all DB shareholders an excellent opportunity to exit their shares at a strong premium to a market price that is close to its highest level in more than a decade. The offer is expected to be mailed to all shareholders on August 9. If the offer is mailed on August 9, it will close on September 6, unless extended by APBL. APBL is a Singapore listed company with brewing operations throughout the Asia Pacific region. It is majority owned by a joint venture of Heineken N V and Singapore-based diversified group Fraser and Neave Limited. APBL produces and markets throughout Asia two of the world's best known beer brands, Heineken and Tiger Beer. DB produces and markets some of New Zealand's best-known beers including leading brands such as DB Draught, Export Gold, Tui, Heineken and Monteith's. APBL is being advised jointly by Societe Generale and Mariner Corporate Finance...more info

Japan: Sapporo Holdings Ltd said on July 26 it expects to post a profit in the first six months of the 2004 business year; the first time in four years; due mainly to higher sales of its Draft One beer-like alcoholic beverage. The Japanese company announced that it expects profit to rise by 120% to a record JPY14.7 billion (US$133.8 million) for the year to 31 December. The brewery had initially projected a 32% decline for 2004 to JPY4.6 billion. The company mentioned it believes group sales will rise by 2% this year, while net profit should leap by 110% to JPY5 billion. The major Japanese brewery said it expects its group net balance to swing into the black in the period to June 30 with a profit of 2.7 billion yen, a turnaround from a loss of 6.4 billion yen projected Feb 20. Sapporo’s preliminary annual sales target for Draft One, which it released nationwide in February, was 10 m cases, but it revised this target in April to 14 m and in July upgraded it to 17 m cases. The product sells for less than low-malt beer, boosting its popularity across a wide range of age groups, Sapporo said. Sapporo also said that cost-cutting efforts at its factories and in raw materials procurement are progressing better than planned.

Australia's third-largest brewer, Coopers Brewery, has started a A$7 million (US$8 million) expansion program to meet increasing demand. The company is to to boost capacity at its Regency Park brewery in Adelaide. The South Australia-based company said the expansion would include new fermenters and yeast tanks at its Regency Park brewery in Adelaide, The New Zealand Herald posted on July 27. “The program includes a major warehouse extension, the addition of two new fermenters and two new yeast tanks, the purchase of another 12,000 kegs and the acquisition of a new can seamer and a new keg filling line,” the company reported in a statement. Managing Director, Dr Tim Cooper, said the capital work was necessary because of Cooper’s continued sales growth since moving to Regency Park. “In the past 12 month, Coopers beer sales nationally rose by 16.4%, with sales of kegged beers in the eastern States up by almost 55%,” he said. “As a result, we have had to increase our production capacity by a similar amount to feel comfortable about meeting strong demand again next year.” Dr Cooper said work on the $3 million warehouse expansion had already commenced with steelwork now being erected. “We will be boosting the size of the warehouse by about 33%, with work expected to be completed early in October,” he said. Dr Cooper said that two additional 1700 hectolitre (170,000 litres) fermenters would be installed this month at a total cost of about $800,000, while two new yeast tanks were being installed at a cost of about $200,000. An additional 12,000 kegs, costing about $1.5 million, had been ordered from Belgium and were expected to arrive next month. “The new fermenters will increase our production capacity by about 20%, while the new kegs represent a 25% rise in our total keg numbers, which should see us through until next year when we’ll have to review the situation,” he said...more info

Brussels, Moscow, - SUN and Interbrew, the controlling shareholders of SUN Interbrew Ltd. (the "Company"), announced on 27 July 2004 that, as permitted by the Shareholders Agreement relating to SUN Interbrew Ltd., they have agreed to allow each other to make additional share purchases of the voting shares of SUN Interbrew Ltd. up to a combined level of 75.5%. SUN and Interbrew have also agreed to certain provisions that are designed to ensure that the balance of control between them is not affected by the possible purchases of additional voting shares. SUN and Interbrew exercise strategic and operational control over the Company under the Articles of Association and by virtue of the Shareholders Agreement entered into by SUN and Interbrew. The agreement regarding the purchase of additional voting shares is a clear demonstration of SUN and Interbrew's commitment to the continued successful development of SUN Interbrew Ltd. SUN and Interbrew have informed the Board of SUN Interbrew Ltd. that they will continue to abide by the Company's policies on dealing in the shares of SUN Interbrew Ltd. as posted on the Company's official website at www.suninterbrew.ru in connection with all such possible purchases and sales. SUN Group is an international investment group, active in building and investing in businesses in a variety of sectors around the world, including in India and the Russian Federation. SUN Group is the founding shareholder of SUN Interbrew Ltd. (formerly SUN Brewing Ltd.), which it established in 1992 and built into the second largest brewing group in Russia. Interbrew is a publicly traded company (INTB - Euronext) based in Belgium. The company's origins date back to 1366, and today it is one of the leading global brewers...more info

Peru, Lima: President Alejandro Toledo angrily denied reports July 26 that he had received a bribe of more than $5 million and pledged to open his bank accounts for investigators. Peru's leading news magazine, Caretas, had reported that Toledo's former adviser, Cesar Almeyda, who is awaiting trial on separate corruption charges, said in a jailhouse interview that a company paid the bribe to Toledo. Almeyda did not name the company or say where any such cash was deposited, the magazine said. Toledo denied the accusation. "I tell you today that this president will never stop his fight against corruption," he said, adding that he was willing to show his financial records to investigators if they demand them. Toledo said his wife, Eliane Karp, was cutting short an overseas vacation with their daughter "to show we are not afraid" of the allegations of corruption. In a televised message to the nation a week ago, Toledo vigorously denied bribery and electoral fraud allegations. Caretas did not quote Almeyda directly, but its report came after Peru's most influential newspaper, El Comercio, reported that Almeyda took a $2 million bribe from Latin America's No. 4 brewer, Bavaria, to help the company win a bidding war for Peru's only brewer, Backus & Johnston. Congress is investigating those allegations which Bavaria, a Colombian company, has denied. The news magazine said Almeyda, who is awaiting trial on charges of trying to bribe judges in the 1990s, had spoken of a commercial operation in which a company was pressured by Toledo. "As a result, a series of deposits were made," the magazine said, adding that Almeyda "did not want to mention specific amounts but noted they were well above $5 million." The Caretas report followed a week of allegations from witnesses that Toledo's sister, Margarita, had been involved, with the president's blessing, in running a "forgery factory" falsifying signatures to register his political party for the 2000 elections. Toledo promised to run a clean government after the corruption-plagued administration of President Alberto Fujimori but has lost seven ministers in corruption scandals in recent months...more info

Malt News

The Philippines imported 89,009 tonnes of malt valued at C$ 31 million at FOB value in 2002. This level of import makes the Philippines a significant target for malt exporters, according to Agriculture and Agri-Food Canada (AAFC). Trade sources comment that neither barley nor malt extract is used as an ingredient by local brewers. Malt is imported only for consumption in the domestic market. 10 different countries exported malt to the Philippines in the period from 2000 to 2002. In 2002, the major exporters of malt were: Australia, with 60% share of the total import market. Australia has dominated the supply of malt to the Philippines for many years. Belgium, with 39% share of the total import market. Trade sources comment that it took over as the second largest supplier of malt from France in 1997 due to its competitive price. According to trade sources, the bulk of imported malt is distributed to San Miguel Corp. Trade sources comment that: About 90% of imported malt are used by the Philippines' largest brewery, San Miguel Corp. It is the market leader in the Philippines beer market. The balance of the imported malt is used by Asia Brewery Inc., which holds the balance of the beer market. According to trade sources, Australia and Belgium suppliers are able to closely meet the quality, specifications and price expectations of the local brewery companies. One source in San Miguel Corp. comment that Canada was one of its supply source but this stopped when Canada's malt was not price competitive.

Barley News

European barley crop estimate. Production forecast in thousand tonnes.

Barley production in '000 tonnes		Spring barley		Total barley
		2003	2004	2003	2004
EU-15	Austria	538	467	869	878
	Denmark	3,002	2,864	3,763	3,657
	Finland	1,671	1,824	1,671	1,824
	France	3,973	3,405	9,818	10,577
	Germany	3,606	2,992	10,637	11,838
	Ireland	1,000	982	1,096	1,098
	Belgium/Lux.	31	26	335	339
	Netherlands	351	247	372	367
	Spain	6,607	7,410	8,388	9,880
	Sweden	1,514	1,611	1,547	1,641
	UK	3,517	2,915	6,370	6,209
	Italy			920	1,133
	Greece			310	372
	Portugal			33	53
TOTAL EU-15		25,811	24,744	46,128	49,866
EU-10	Czech Republic	1,628	1,260	2,080	1,824
	Hungary	380	513	825	1,311
	Poland	2,603	2,655	2,833	3,165
	Slovakia	682	567	832	602
	Cyprus			79	92
	Estonia			263	265
	Latvia			221	224
	Lithuania			756	775
	Slovenia			28	29
	Malta			3	3
TOTAL EU-10		5,293	4,995	7,919	8,289
TOTAL EU-25		31,103	29,739	54,047	58,155
Europe Non-EU	Romania	340	350	540	853
	Bulgaria	180	212	580	800
	Serbia			230	279
	Croatia			85	149
	Bosnia			60	53
	Macedonia			120	117
	Albania			30	30
TOTAL Europe Non-EU		520	562	1,645	2,282
TOTAL EUROPE 31		31,623	30,300	55,692	60,437

Source: Coceral, Brussels June 2004

Sweden: The tall and narrow Sweden is divided into two parts when it comes to barley: The early south region where the barley normally is sown in April and the later mid region where sowing usually takes place the second half of April – the first half of May. This year the sowing in the whole Sweden was very early and concentrated to a shorter period of time than normal as more or less all of the barley was sown before mid of April. Until mid of May everything looked very fine. We had enough rain directly after sowing to enable for the plants to establish well before a warmer period came. May has brought a lot less rain than normal and therefore some forecasts of the coming crop have been reduced to an estimated harvest of about 400 000 tons (originally about 430 000 tons) which is slightly more that for previous years. Both quantity and quality of the Swedish 2004 crop are strongly dependent on the weather during June and July. If we get adequate amount of rainfall, the possibility of an excellent crop is still possible. Estimated time for harvest in Sweden is about 3 1/2 months from sowing – around end of July beginning of August.

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 online www.e-malt.com/MarketPrices

Malting barley prices. French barley prices.

Graph of the week
Agenda

July 2004:
VI Moscow Beer Festival;
Lucky Baldwin's IPA Festival;
BevTek / BrewTek China;
Vermont Brewers Festival;
BEVTECH 2004 Thailand;
INTERNATIONAL QUALITY GRAINS CONFERENCE;
World Brewing Congress 2004;
Hop, malt and beer of Russia Exhibition;

August 2004:
Great British Beer Festival;
Worcester Beer and Cider Festival;
BeerTek China Beer and Brewing Technology Exhibition;
Peterborough Beer Festival 2004;
FOODWORLD Food and Beverage Exhibition;
TecnoBebida Latin America International Exhibition of Technologies for the Beverage Industry;

September 2004:
6th BELGIAN BEER WEEKEND;
China Brew 2004 / China Beverage 2004;
International Brewery and Soft Drinks Industry Exhibition;
FOOD & BEVERAGE PROCESSING & PACKAGING INDONESIA 2004;
Pivoindustria International Beer Industry Exhibition;
National Beer Wholesalers Show 2004;
PAN ASIAN FOOD & BEVERAGE TRADE SHOW 2004;
Barley Malt Quality Evaluation Short Course;
EUROMALT BARLEY SEMINAR 2004;
bevex Beverage Trade Fair;
InterBev 2004;
YUGOSLAVIA INTERNATIONAL FAIR OF FOOD & BEVERAGES 2004;
BevExpo 2004;
Great American Beer Festival;

More events are available on site e-malt.com