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E-Malt.com Newsletter 04a
January 20 - January 22, 2014
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Currency Rates
Base Currency: US Dollar
on January 22, 2014 |
Base Currency: Canadian Dollar
on January 22, 2014 |
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1 USD = 0.7383 EUR
1 USD = 0.6083 GBP
1 USD = 1.0973 CAD
1 USD = 1.1358 AUD
1 USD = 104.4630 JPY
1 USD = 2.3544 BRL
1 USD = 33.9100 RUB
1 USD = 6.0992 CNY
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1 CAD = 0.9115 USD
1 CAD = 0.5545 GBP
1 CAD = 0.6730 EUR
1 CAD = 1.0353 AUD
1 CAD = 95.2161 JPY
1 CAD = 2.1460 BRL
1 CAD = 30.9085 RUB
1 CAD = 5.5593 CNY
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Currency Rates Chart
Equities of the Largest Breweries
USA, WI: Lakefront Brewery increases production by 21.4 percent
...Click here
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Canada, MB: Manitoba Wheat & Barley Growers Association officially established
...Click here
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USA, MI: Pilot Malt House supplies Michigan breweries with locally produced malt
...Click here
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USA, OH: Warped Wing Brewing opens, becomes largest production brewery in Dayton
...Click here
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USA, DE: Dogfish Head passed the 200,000 barrel mark in 2013
...Click here
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USA, FL: 7venth Sun Brewing looking for second location
...Click here
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USA, CO: Avery Brewing Company to build a brewery in Boulder
...Click here
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Canada, ON: Northwinds Brewhouse plans to open in Collingwood in May
...Click here
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USA, MA: Somerville's Aeronaut Brewery plans to open in spring
...Click here
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World: SABMiller shares dip on disappointing Q3 sales
...Click here
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Belgium & South Korea: AB InBev to pay $5.8 bln for South Korea’s Oriental Brewery Company
...Click here
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France: Activity mostly focused on spring malting barley of crop 2014
...Click here
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Zambia: Zambian Breweries to build malting plant in Lusaka
...Click here
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Japan & India: Suntory denies trying to buy Whyte & Mackay whiskey
...Click here
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Australia: Coopers Brewery had highest selling month on record in December 2013
...Click here
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Romania: Romania ranks sixth in Europe for beer consumption
...Click here
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Australia: Restrictive supply contracts prevent small brewers from selling beer to pubs and hotels
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Zimbabwe: Delta Corporation closes opaque beer breweries in Marondera and Karoi
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Graph of the Week
Table of the Week
EU Malt Exports
Prices Evolution
Barley Prices
Canadian Malting and Feed Barley Prices
US Malting and Feed Barley Prices
French Malting and Feed Barley Prices
Theoretical Malt Prices
Canadian Malt Prices
US Malt Prices
Theoretical EU Malt Prices
These Days in Business History
January 20
1781 1st edition of Pieter It Hoens "Post of Neder-Rhijn" published
1872 Californian Stock Exchange Board organized
1995 Russian ruble drops to 3,947 per dollar (record)
January 21
1846 1st edition of Charles Dickens' "Daily News"
1976 Supersonic Concorde, 1st commercial flights, by Britain and France
1994 Dow Jones passes 3900 (record 3,914.20)
January 22
1970 1st commercial Boeing 747 flight, New York to London in 6 hours
1967 The microwave oven is invented
Agenda
World Beer Cup 2014 key dates:
-Call for Entries: Oct. 28, 2013-Nov. 1, 2013
-Judging: April 7-8, 2014 in Denver, Colorado
-Gala Awards Ceremony: April 11, 2014 in Denver, Colorado
January 2014:
18-22: RHEX - Rimini Horeca Expo 2014 (Rimini, Italy)
February 2014:
19-22: National Winter Ales Festival 2014 (Derby, UK)
March 2014:
12-15: Brazilian Beer Festival (Blumenau, Brazil)
18-19: Food and Drink Technology Africa 2014 (Johannesburg, South Africa)
23-28: IBD Convention - Asia Pacific Section (Ho Chi Minh City, Vietnam)
April 2014:
07-08: World Beer Cup 2014 (Denver, USA)
08-11: Craft Brewers Conference 2014 (Denver, USA)
13-17: Trends in Brewing 2014 (Ghent, Belgium)
22-24: Pivovar (Brewer) 2014 (Moscow, Russia)
26-27: Zythos Beer Festival 2014 (Leuven, Belgium)
May 2014:
21-24: Pivo (Beer) 2014 (Sochi, Russia)
22-24: Copenhagen Beer Festival 2014 (Copenhagen, Denmark)
June 2014:
11-15: Mondial de la Biere 2014 (Montreal, Canada)
August 2014:
12-16: Great British Beer Festival 2014 (London, UK)
September 2014:
08-11: Worldwide Distilled Spirits Conference 2014 - IBD Scottish Section (Glasgow, UK)
25-27: Drink Technology India 2014 (Mumbai, India)
October 2014:
13-16: China Brew and Beverage 2014 (Beijing, China)
November 2014:
11-13: Brau Beviale 2014 (Nuremberg, Germany)
12-14: Vietbrew 2014 (Ho Chi Minh City, Vietnam)
More events are available on site www.e-malt.com
News Articles
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USA, WI: Lakefront Brewery increases production by 21.4 percent
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Milwaukee-based craft brewery Lakefront Brewery Inc. increased production by 21.4 percent in 2013, filling 40,496 barrels of beer, BizTimes.com reported on January 20.
The 26-year-old company attributed the growth to the double-digit growth of its core brands and additional brewing capacity.
Lakefront President Russ Klisch also pointed to Beer Capitol, the brewery’s distributor, which delivered the equivalent of 237,000 cases in 2013, up 17.8 percent from a year ago.
“Our distribution partners did a great job promoting our beers to achieve this growth,” Klisch said.
Strong draft sales drove the growth Lakefront experienced.
“Our Wisconsin distributors had an incredible year with on premise draft sales,” said Chris Johnson, marketing director. “I was pleased with our out-of-state distributors’ enthusiasm when we gave them the option to order kegs.”
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Canada, MB: Manitoba Wheat & Barley Growers Association officially established
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The newly created Manitoba Wheat and Barley Growers Association (MWBGA) has cleared the final regulatory hurdle in creating a grower-driven organization. As of February 1, 2014, the group will begin collecting a refundable checkoff of C$0.52/tonne of wheat and C$0.50/tonne of barley. The checkoff will be collected by all buyers in Manitoba — feed mills and ethanol plants included, Realagriculture.com reported on January 20.
Interim board chair Don Dewar says the check-off funds will be strategically invested in research and market development projects that will advance the profitability and sustainability of wheat and barley production for Manitoba growers.
“We have already been working with wheat and barley grower organizations in other provinces,” says Dewar. “This approval of our funding mechanism now allows us to be full collaborative partners on multi-province and national research and market development projects that are crucial to wheat and barley production.”
The Manitoba Wheat and Barley Growers Association currently have an administrative support agreement with the Manitoba Corn Growers and a technical support agreement with Agri Skills Inc. to minimize overhead costs through this early phase of organizational development.
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USA, MI: Pilot Malt House supplies Michigan breweries with locally produced malt
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Being able to support the local economy by drinking a beer brewed by a neighbor is just one of the perks of living in Grand Rapids. Many breweries in Grand Rapids and all over Michigan strive to locally source as many ingredients as possible, and the goal of creating a brew from ingredients entirely Michigan-grown and -produced persists. Pilot Malt House in Jenison, Michigan is contributing to achieving this goal by making malt from scratch with ingredients grown in Michigan, The Rapidian reported on January 17.
"Malt is the 'backbone' of beer," says Erik May, co-owner of Pilot Malt House. "If the beer has color and gives you a buzz, like every beer does, it's from the malt and its interaction with the yeast, water, etc. during brewing."
May and his partner Paul Schelhaas got the idea to start a malt house after a conversation had while sipping some of Schelhaas's home brew. They discussed the geographic origins of the components of beer.
"As our discussion went from water to yeast, to hops and finally onto malt the idea for Pilot was created," says May. "We almost immediately became obsessed and began doing small three-pound batches of malt in Paul Schelhaas's kitchen and
...More info on site
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USA, OH: Warped Wing Brewing opens, becomes largest production brewery in Dayton
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Warped Wing Brewing Co. has verticality. At least that’s what President and Chief Executive Officer Joe Waizmann says about the 35-foot high ceiling inside the new Dayton brewery, which opened last weekend in a two-story, red brick building downtown, Ohio.com reported on January 20.
Waizmann, who's widely known for organizing the AleFest beer tasting events, might as well have used the word to describe the brand itself. Warped Wing instantly became the largest production brewery in the area and its ceiling is unknown -- thanks in part to talented brewmaster John Haggerty, who once headed the brewing operations for the well-respected New Holland Brewing in Holland, Michigan.
Warped Wing certainly has set itself apart from the local competition. Dayton is now dotted with mostly nanobreweries, and many of them are operating out of strip malls in the suburbs. None come close to Warped Wing’s production capability, with its 30-barrel stainless steel brewhouse and 60-barrel fermenters.
Warped Wing, a production brewery and taproom, is filled with impressive, industrial visuals ranging from the non-working, giant yellow crane that hovers above to the glass block windows near the roof that welcome in ambient light. The brewery doesn't have to fake the industrial feel. The building, constructed
...More info on site
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USA, DE: Dogfish Head passed the 200,000 barrel mark in 2013
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Dogfish Head finally eclipsed the 200,000 barrel mark in 2013, a milestone that only 11 other regional brewing companies had achieved the year prior, Brewbound reported on January 17.
Led by its “family of IPA offerings” — 60-minute, 75-Minute, 90-minute, 120-minute, Sixty-One, Indian Brown Ale, Aprihop, Burton Baton and Rhizing Bines — Dogfish Head production numbers soared to 202,000 barrels, up 17 percent over last year.
It’s not the 30-plus percent growth that some other craft breweries have enjoyed in recent years, but that’s just fine for Adam Lambert, the company’s vice president of sales, who said he prefers “slow and steady growth.”
“In this day and age, with the amount of craft breweries entering the space, distributor consolidations, new SKUs, big brewers playing in craft, I think 17 percent growth is pretty incredible,” he said. “We are marching to the beat of our own growth. We want slow, methodical, profitable growth for us and our wholesalers.”
Lambert attributes Dogfish Head’s continued ability to grow in the “high-teens” to its diverse portfolio of offerings — one that included 38 different styles in 2013. Collectively, Dogfish Head’s IPA-styled beers accounted for 79 percent of production, or about 159,000 barrels.
“We have a very well-rounded portfolio of
...More info on site
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USA, FL: 7venth Sun Brewing looking for second location
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7venth Sun Brewing, the two-year-old Dunedin brewery that has earned raves for its Belgian-style beers, IPAs, barrel-aged ales and sours, is scoping sites for a second location, Cltampa.com reported on January 20.
Co-owner and head brewer Justin Stange says he isn't just seeking to expand but to push the craft beer envelope even further this time.
The new production brewery and tasting room will be somewhere in North Pinellas — Dunedin and Ozona sites are under consideration — and will focus on barrel-aged beers.
“I want to do something new,’’ said Stange. “I want to keep changing it, experiment, see how people react to it. We’re really pushing it this time.’’
The brewery, located a short walk from the Dunedin Brewery, Florida’s oldest craft production brewery, has experienced slow but steady growth since it poured its first pint on January 7, 2012, producing 250 barrels its first year, 850 barrels last year and shooting for 1,000 this year, with limited local distribution, mostly draft with an expanding bottle selection.
The tasting room has a laid-back vibe that reflects the easy-going ways of Stange and co-owner Devon Kreps. They met at Sweetwater Brewing in Atlanta, where Kreps was production manager and Stange was a brewer.
Stange had
...More info on site
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USA, CO: Avery Brewing Company to build a brewery in Boulder
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Three years in the making, Avery Brewing Co.'s "world-class" brewery is under construction in Boulder. Workers on Monday, January 20 broke ground on what eventually will be a nearly 96,000-square-foot brewery and restaurant in Boulder. The more than $27 million project — to be constructed in two phases — was designed to help Avery Brewing respond to skyrocketing demand and to establish a base where the 20-year-old craft brewery could grow well into the future, The Daily Camera reported on January 20.
If all goes as planned, Avery Brewing's new facility could be operational in 12 months, said Adam Avery, who co-founded the brewery with his father in 1993.
"It's a huge, huge relief," Adam Avery said. Avery has spent the past three years searching for sites, pulling together money and working to change city regulations.
Avery Brewing's 25,000-square-foot current brewery has hit capacity, Avery said. The operation that is sprawled out across several warehouse units is churning out close to 50,000 barrels of beer — roughly 1.55 million gallons — annually, but the facility and its limitations have forced the Boulder brewery to stop distribution to some markets and rein in expansion plans.
"It obviously caused a lot of pain," he said. "We've
...More info on site
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Canada, ON: Northwinds Brewhouse plans to open in Collingwood in May
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After several months of having its beer produced at other breweries on a contract basis, Northwinds Brewery has announced that construction is now underway on a brewery and tied house that will open later this year, Canadian Beer News reported on January 20.
The Northwinds Brewhouse & Eatery will be located in Collingwood, and will feature a commercial brewery, a full-service restaurant serving locally-sourced fare, and a retail store & bottle shop selling full Northwinds line-up of flagship and seasonal brands.
If all goes as planned, the Northwinds brewery and restaurant will open in late May.
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USA, FL: Six Ten Brewing to open in Tampa in March
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Leslie and Chris Johnson were in corporate information technology for 25 years. They worked long hours but still had time for home brewing and a certain amount of "beer tourism." At the beginning of March, in time for Tampa Bay Beer Week, the couple will debut Six Ten Brewing in Tampa, Tampabay.com reported on January 20.
Chris, who has been brewing for more than 20 years, was a founding member of Tampa's first home brewing club, the Tampa Bay Beers, back in 1990. He started brewing competitively about three years ago, and his beers have won numerous medals in local, regional and national brewing competitions.
Six Ten, named for the couple's commitment to getting beyond the "9 to 5 grind," will be a full-production, three-vessel, 10-barrel brewhouse with a 60-seat tasting room and 20 seats outside. Although there will not be food on site, food trucks will provide beer drinkers with dining options.
They chose a building in central location. According to Leslie, the launch of Six Ten reflects their own readiness to change careers as well as the groundwork laid by other area brewers.
"Tampa hadn't been known for its craft beer community," said Leslie Johnson. "Joey Redner's Cigar City, David Doble from
...More info on site
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USA, NY: New brewery coming to Victor
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The Victor Brewery opened January 16, providing local beer lovers with everything from "light cream ales to bitter IPAs and Belgians and porters," says owner and brewmaster Tom Bullinger.
Victor Brewery currently has eight beers on tap with plans for four more in the coming weeks, Rochester Democrat and Chronicle reported on January 20.
Bullinger has been brewing professionally for three years (he divested himself from a partnership with another regional microbrewery) and was a home brewer before that. He is using hops from Bluebell Hopyard in Victor, and as malt houses begin to open in the state, he will integrate locally grown malt into his beers as well.
Victor Brewery is selling beer in flights, by the pint and in growlers. In the coming months Bullinger will be distributing his beer to local restaurants.
Victor Brewery will also host monthly Community Brew Nights for home brewers and guest breweries to come, taste and talk about beer.
A grand opening is scheduled for March 1 and 2.
Victor Brewery is at 6606 State Route 96 in Victor, NY.
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USA, MA: Somerville's Aeronaut Brewery plans to open in spring
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Somerville is close to having its own commercial brewery: an actual industrial space, in Somerville, with actual fermentation tanks and a canning line, Somerville Patch reported on January 21.
Aeronaut Brewery, which plans to open this spring, recently received its federal permit and hopes to receive state permits soon, according to Ben Holmes, CEO of the venture.
Other Somerville-based breweries, such as Somerville Brewing Company (a.k.a. Slumbrew) and Pretty Things Beer and Ale Project, conduct their commercial brewing operations outside Somerville, but Aeronaut will brew suds in the city.
Holmes recently gave Somerville Patch a brief tour of the facility, which was under construction, and he said Aeronaut will be making some important announcements in the middle of February.
Aeronaut was founded by three Somerville residents: Holmes, Dan Rassi and Ronn Friedlander. A fourth member of the team, Steven Reilly, will be joining soon, and brewmaster Mike Labbe is also contributing his expertise.
The founders, many of them now finishing up graduate programs, all come from the world of science, Holmes explained. Friedlander studies microbiology at Harvard and MIT. Rassi is in the field of computer science and engineering. Reilly, now at Yale, is a biologist, and Holmes, a graduate student at MIT, has
...More info on site
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World: SABMiller shares dip on disappointing Q3 sales
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SABMiller, the world's No. 2 brewer, reported disappointing third-quarter sales, hurt by weaker beer volume, sending its shares down 2% in morning trading.
The maker
...More info on site
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Belgium & South Korea: AB InBev to pay $5.8 bln for South Korea’s Oriental Brewery Company
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Anheuser-Busch InBev agreed to pay $5.8 billion for South Korea’s Oriental Brewery Co., regaining control of a company that became the Asian nation’s biggest
...More info on site
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Brazil: Premium beer industry grows in Brazil
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When Marcelo Ramos opened a bar in one of Rio de Janeiro’s biggest slums selling Belgian beer for R$200 ($83) a bottle, his friends thought he had lost his mind, Financial Times reported on January 20.
“They all told me: you’re crazy, you’re throwing your money away – people here are poor!”, says Ramos, a 39-year-old mobile phone technician who set up the bar in his father-in-law’s garage at the end of 2012.
Just over a year later his Bistrô Estação R & R (Bistro Stop R & R) in Rio’s Complexo do Alemão favela now sells more than 200 beers – the most expensive of which is Belgium’s Deus champagne beer.
But it is not just the residents of Rio’s slums that have started to venture away from the country’s notoriously bland mainstream beers. While total lager sales across Brazil rose 92 per cent from 2007 to $44.37 bln in 2012, premium lager sales jumped 131% over the same period. Imported premium lager sales surged 184%.
For investors, the niche market offers one of the few remaining bright spots in Brazil, where slowing economic growth and rising indebtedness have cast a shadow over mainstream beer sales and many other previously buoyant consumer industries.
Lauren
...More info on site
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France: Activity mostly focused on spring malting barley of crop 2014
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The activity on France’s barley markets is mostly focused on spring malting barley of crop 2014, however, the number of deals is far from
...More info on site
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Zambia: Zambian Breweries to build malting plant in Lusaka
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Zambian Breweries will commence the construction of a US$32.6 million malting plant in the Lusaka South Multi-Facility Economic Zone (MFEZ) in the second half of 2014. The construction of the malting plant is part of the company's plan of local sourcing barley programme in support of the Zambia's agricultural development, Allafrica.com reported on January 14.
The firm said despite the anticipation of the impact of the excise rate increase, it will not affect its investment in malting plant but has, among other investments, pulled back its plan to invest $15 million in a new packaging line at the Ndola Brewery.
ZB corporate affairs manager Yuyo Nachali-Kambikambi said the company was expected to begin the construction of the malting plant in the second half of this year.
In an interview in Lusaka on January 13, Nachali-Kambikambi was confident that the company would engage local suppliers during the construction phase but could not, however, disclose the number of jobs to be created.
"We are still looking at the contractual issues, our suppliers and the equipment that needs to be bought so we will be able to say something before we start because right now it is too early to talk about how many jobs will be
...More info on site
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Japan & India: Suntory denies trying to buy Whyte & Mackay whiskey
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Suntory Holdings Ltd., which last week agreed to buy Beam Inc. for $16 billion, is not in talks to acquire the Whyte & Mackay business from India’s United Spirits Ltd. (UNSP), Bloomberg.com quoted Naoko Tsuda, a company spokeswoman, on January 21.
Billionaire Nobutada Saji’s whiskey and soft-drinks company denied a report by India’s CNBC TV18 network on January 20 that the Osaka-based company had offered to buy Scotch whisky maker Whyte & Mackay and valued it at less than $1 billion.
Diageo, the world’s biggest distiller, last year agreed to buy a controlling stake in United Spirits that would give it control of Whyte & Mackay. The London-based company in November offered to sell most of the Whyte & Mackay whiskey business after U.K. regulators expressed competition concerns.
Prakash Mirpuri, a spokesman for Bangalore-based United Spirits and UB Group, declined to comment.
A court in India’s Karnataka state in December ruled Diageo’s purchase of a stake in United Spirits void, after a petition filed by creditor banks. In the order, the judges said a lower court didn’t have the jurisdiction to approve the deal when creditors had filed petitions seeking to wind up the company for non-payment of dues by its parent United
...More info on site
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Australia: Coopers Brewery had highest selling month on record in December 2013
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For the first time in the company’s history, Coopers Brewery passed 70 million litres in beer sales last year, FOOD Magazine – Australia reported on January 22.
Total sales for the year reached 72 million litres, up 4.7 percent on the 68.8 million litres sold in 2012.
“December 2013 was our highest selling month on record, with 8.55 million litres of beer sold. This was 13 percent more than the previous record month in December 2012,” said managing director, Tim Cooper.
December also saw record sales of Coopers Original Pale Ale and Coopers Sparking Ale, at almost 400,000 and 100,000 cases sold, respectively.
“A significant portion of our growth for 2013 can be attributed to our international beer portfolio, as well as good growth from the mid-strength Coopers Mild Ale. Strong sales in Pale Ale and Sparkling Ale also drove the volume increase,” Cooper said.
He said the ongoing growth of the company at a time when total beer consumption in Australia was falling was pleasing.
“Coopers has enjoyed average growth of more than 9.8 percent per year for the past 20 years and now represents more than 4.5 percent of the total Australian beer market.
“The second bottling line, opened in December, will provide greater flexibility
...More info on site
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Romania: Romania ranks sixth in Europe for beer consumption
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Romania ranks sixth in Europe in terms of beer consumption, but ranks last when it comes to exports, according to the recent Contribution Made by Beer to the European Economy report, quoted by local business daily Ziarul Financiar and Romania-Insider.com.
With a consumption of 90 litres per capita in 2012, Romania is 20 percent above the European average.
However, while the European countries export, on average, 19 percent of the output, Romania delivers only 2 percent of its production to other countries.
And while over 850 breweries have been established in Europe between 2010 and 2012, Romania has lost four production centres.
The beer market in Romania went up by 7 percent in 2012, to some 18.2 million hectolitres, according to the Romanian Brewers Association.
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Australia: Restrictive supply contracts prevent small brewers from selling beer to pubs and hotels
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The Australian Competition & Consumer Commission is investigating brewing giants CUB and Lion over their use of "tap contracts" to prevent hotel owners from selling rival beers, after a number of small operators complained that they could not sell their beer to pubs, The Australian reported on January 22.
The Commission has written to several small brewers asking for information "to better understand aspects of the supply conditions within the wholesale draught beer market" so it can assess whether "certain conduct" might be prohibited under the Competition and Consumer Act.
It is understood that the letter goes on to question the brewers on whether they have been unable to sell to venues because the publicans had signed restrictive supply contracts with the major brewers preventing them from stocking competitors' beers.
Queensland brewer Wade Curtis, who posted his letter from the ACCC on Facebook and Twitter this week, said he had complained to the regulator three years ago about being unable to sell his Four Hearts beer to pubs because all of their taps were under contract.
"I had just started my own craft brewing business and had a launch at a venue in Brisbane -- we got through two or three kegs, they were
...More info on site
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Zimbabwe: Delta Corporation closes opaque beer breweries in Marondera and Karoi
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Delta Corporation is closing its Marondera and Karoi opaque beer breweries in Zimbabwe in a rationalisation process that will result in more closures as the company consolidates production and marketing of its new product, Chibuku Super, The Zimbabwe Standard quoted the company on January 19.
The company said Chibuku Super has a longer shelf life than opaque brew. New technology and machinery necessitated the changes as the company now produces Chibuku Super with a 21-day shelf life compared with the four days for opaque beer.
This development is pushing the company to restructure its production plants, marketing and distribution models.
Delta company secretary, Alex Makamure confirmed the closure of the breweries as a result of the rationalisation strategy.
“The national establishment of 15 sorghum beer breweries was also part of the distribution network due to the limited shelf life of the product,” said Makamure. “Chibuku Super is a result of a significant leap in product innovation and manufacturing technologies for this category, which allows for the establishment of mega breweries. The increase in shelf life will result in the redundancy of some of the production sites.”
He however hastened to say that no permanent jobs would be lost in the process.
“As a consequence, we will
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