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E-Malt.com Newsletter 09a
February 24 - February 26, 2014
Quote of the Week
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Currency Rates
Base Currency: US Dollar
on February 26, 2014 |
Base Currency: Canadian Dollar
on February 26, 2014 |
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1 USD = 0.7277 EUR
1 USD = 0.5997 GBP
1 USD = 1.1072 CAD
1 USD = 1.1080 AUD
1 USD = 102.3700 JPY
1 USD = 2.3412 BRL
1 USD = 35.6249 RUB
1 USD = 6.1292 CNY
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1 CAD = 0.9033 USD
1 CAD = 0.5417 GBP
1 CAD = 0.6574 EUR
1 CAD = 1.0008 AUD
1 CAD = 92.4737 JPY
1 CAD = 2.1148 BRL
1 CAD = 32.1809 RUB
1 CAD = 5.5367 CNY
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Currency Rates Chart
Equities of the Largest Breweries
USA: Malt use by craft brewers seen as at least 3 times higher than that of large brewers
...Click here
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USA: The Boston Beer Company enjoys core shipment and revenue growth last year
...Click here
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USA: Feed barley prices remain unchanged, malting prices are lower
...Click here
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USA, MD: Maryland craft beer producers want lawmakers to help them grow
...Click here
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USA: MillerCoors to introduce voluntary nutritional labelling on its beer in US
...Click here
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Canada, ON: Interest in craft beer exploding in Ontario’s Windsor-Essex Region
...Click here
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USA, AL: Folklore Brewery and Meadery in Dothan now produces five beers
...Click here
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USA, WA: Whitewall Brewing Company opening in Marysville
...Click here
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USA, IN: Grand Junction Brewing Co. to open in Westfield
...Click here
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USA, NY: Lost Borough Brewing Company plans expansion
...Click here
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Brazil: Ambev’s Q4 profit increases significantly despite decline in beer sales
...Click here
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The Philippines: Beer sales overcome tax increases to grow to 16.3 mln hl last year
...Click here
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World: 2013/14 grain, rice and oilseed crops are huge and of good quality
...Click here
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The Philippines: San Miguel Brewery Inc. planning bond offering
...Click here
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New Zealand: Volume of alcoholic beverage available for consumption increases in 2013
...Click here
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Colombia: SABMiller’s sales affected by government’s drunk-driving crackdown
...Click here
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Saudi Arabia: Largest feed barley importer’s purchases are decisive for world barley price levels
...Click here
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UK: Heineken to offer four new low and no-alcohol drinks
...Click here
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Brazil: AB InBev to launch limited-edition beer made from barley grown on legendary training soccer field
...Click here
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Graph of the Week
Table of the Week
World Barley Production by Country
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
February 24
1921 1st transcontinental flight in 24 hours flying time
1986 Texas Air buys Eastern Airlines for $676 million
1995 Dow-Jones hits record 4011.74
February 25
1791 1st Bank of U.S. chartered
1837 1st U.S. electric printing press patented by Thomas Davenport
1862 Paper currency introduced in U.S. by President Abraham Lincoln
February 26
1848 2nd French Republic proclaimed
1907 Royal Oil and Shell merge to form British Petroleum (BP)
1995 Barings Bank, one of the oldest and most distinguished investment banks in the world, declares bankruptcy
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
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: Malt use by craft brewers seen as at least 3 times higher than that of large brewers
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uThe Economic Research Service of the USDA compared the malt use of large brewers of 13.5 kg/hl to craft brewers use of 53 kg/hl,
...More info on site
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USA: The Boston Beer Company enjoys core shipment and revenue growth last year
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The Boston Beer Company, Inc. reported this week fourth quarter 2013 net revenue of $205.4 million, an increase of $52.4 million or 34% over
...More info on site
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Canada: Barley market overview and projections
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Cash barley values in the Lethbridge area have been hovering at C$155/mt delivered in January. The barley market has been functioning to encourage demand as the market adjusts to the larger barley and wheat crops in Western Canada. Offshore movement has been limited due to tight fobbing capacity on the West Coast and rail delays have also contributed to the slower export program. Given the larger wheat crop, we’ve also seen lower-quality milling wheat move into feed channels as the elevator system is virtually plugged. Farmers who want to clean up piles of wheat in temporary storage are being forced to move wheat into the domestic feed market, Canadiancattlemen reported on February 21.
Feedlot margins have been in positive territory given the lower feed grain prices and feedlot managers have been anxious to book their forward requirements and lock in the margin structure. Lower feed grain prices have also caused feeder cattle values to move to historical highs.
Statistics Canada estimated the barley crop at 10.2 million mt, which is up two million mt from last year and very similar to the 10-year average production of 10.3 million mt. The average Canadian yield was a whopping 71.7 bushels per acre, compared
...More info on site
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USA: Feed barley prices remain unchanged, malting prices are lower
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The latest USDA Feed Outlook Report that was released on February 12, focused on two major points impacting barley prices at this time – the large barley crop produced in both the U.S. and Canada this year, and the difficulty in moving that barley from the farm to where it’s needed, Farmandranchguide.com reported on February 23.
Using U.S. Census data, it appears the pace of barley imports at this time is slower than expected, therefore the Economic Research Service, the author of the Feed Outlook Report, lowered the marketing year imports by 5 million bushels. The report noted that the substantial domestic barley harvest, which is estimated at 215 million bushels, has tempered imported malting barley demand.
In addition, transportation difficulties in Canada, who also had a larger than average crop this year, are also contributing to the sluggish pace of exports to the U.S.
Abundant corn supplies also was a factor in the equation, since the Feed Outlook report decreased the barley feed and residual amount by 5 million bushels. This action, according to the report, was justified by abundant domestic corn supplies.
The number of grain consuming animal units is forecast at 91.38 million units, 0.61 percent higher than the December forecast,
...More info on site
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USA, MD: Maryland craft beer producers want lawmakers to help them grow
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Adam Benesch, a co-founder of Union Craft Brewing in Hampden, would like to take his Duckpin Pale Ale to a farmers' market and let consumers taste and buy it.
John Knorr, co-owner of Evolution Craft Brewing in Salisbury, just wants to brew more beer.
Both want the General Assembly to pass legislation that would help Maryland's burgeoning microbrewery industry continue to grow, Baltimore Sun reported on February 22.
Bills that would open farmers' markets and county fairs to tastings and sales by the state's beer producers and raise the limit on how many barrels brewpubs can produce top the 2014 wish list of the Brewers Association of Maryland. A House subcommittee is expected to consider the production limit bill on February 24.
"We're here because we're a growing industry — both here in Maryland and across the country," J. T. Smith, the association's executive director, told a Senate committee.
The legislation faces stiff opposition from the state's powerful liquor lobby, which sees both bills as a threat to the venerable three-tier liquor distribution structure. That system has kept Maryland's producers, wholesalers and retailers mostly separate since the end of Prohibition — with a few exceptions the distributors aren't thrilled about.
"It has been undermined progressively," Jay
...More info on site
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USA: MillerCoors to introduce voluntary nutritional labelling on its beer in US
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Brewing major MillerCoors is set to introduce a new detailed voluntary nutritional labeling on its Miller64 beer in the US, Drinks Business Review reported on February 21.
The move is in response to the new guidelines by US Department of Treasury's Alcohol and Tobacco Tax and Trade Bureau about the nutritional information disclosed on labels for all brewers, vintners and hard liquor distillers.
Under the new ruling, alcohol brands can feature nutritional information such as serving size, servings per container, alcohol content by volume, calories, protein and fat per serving on their packaging.
MillerCoors brand marketing vice president Gannon Jones said that Miller64 contains 64cal and 2.4g of carbs per 12oz serving.
"Adding the new nutritional label will provide the kind of detail that will give consumers one more reason to reach for a Miller64 when they want to enjoy a beer that fits their way of life," Jones added.
Besides this, the company plans to expand the voluntary nutritional labeling in future, but will start after consumer reaction on Miller64.
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Canada, ON: Interest in craft beer exploding in Ontario’s Windsor-Essex Region
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The Windsor-Essex region of Ontario will soon be experiencing a boom of brewery openings, with up to seven new breweries aiming to launch this year, according to a blog post of February 20 on food & drink website Windsor Eats.
Three of the planned new arrivals are:
Banded Goose Brewing: An on-site nanobrewery at Jack’s Gastropub in Kingsville that owner Trevor Loop plans to have up and running next month.
Craft Heads Brewing: Founded by Steve Fabischek and Bryan Datoc, who are hoping to open somewhere in Windsor’s Old Walkerville historic area in time to have beer available at the second annual Windsor Craft Beer Festival in October.
Brew: A brewery and tied gastropub from brothers and local restaurant industry veterans Jordan and Josh Goure that is currently under construction.
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USA, AL: Folklore Brewery and Meadery in Dothan now produces five beers
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It started with a $65 homebrewing kit and the nastiest batch of beer Jeremy Pate had ever tasted. "My first home brew was just horrible," said Jeremy Pate, standing behind the bar of the Dothan microbrewery he and his family opened last year. "I didn't know what I was doing, that was in 1997."
Pate bought the kit from a Florida winery. He wanted to know whether he could actually brew good beer. He couldn't, at least not the first time. Over time, however, the taste of his home-brewed beer improved and kept improving, Dailyjournal.net reported on February 23.
"It was a curiosity," Pate said.
Folklore Brewery and Meadery now brews up to five beers: Wiregrass Wheat, Grateful Red, Front Porch Pale, Shadowcaster Porter and Snipe Hunt IPA. Folklore had its first public tasting in September at the Porktoberque festival and officially opened on October 31.
Pate's brewing background includes working for the popular Dothan brewery Poplar Head in the 1990s. He later moved to Atlanta and worked for the Dogwood Brewing Co. and Texas Cattle Co. When the Texas Cattle owner decided to sell the brewery, Pate helped find a buyer. The commission he received allowed him to move to Auburn in 2007,
...More info on site
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USA, WA: Whitewall Brewing Company opening in Marysville
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Whitewall Brewing Company is scheduled to open in Marysville on March 1, Seattle Post Intelligencer reported on February 24.
Sean Wallner and Aaron Wight were both members of the same homebrew club in Snohomish County – the Stilly Mashers. The original idea to open a brewery was Sean’s. He knew he couldn’t go it alone and still keep his day job, so he approached Aaron as a potential business partner.
The brewery’s name is a play on the combination of their last names. Sean and Aaron have a good plan for moving forward and also seem to be realistic in their expectations.
The beers are solid. Whitewall’s IPA clocks in at a modest 5.2 percent ABV, it is very close to being a session IPA. It is balanced, quaffable and has a pleasant lingering bitterness. Sean and Aaron are brewing on a two-barrel system and therefore qualify as a nano-brewery. They already scored some oak barrels and intend to start some sour beer projects soon.
According to the Whitewall Brewing, “We are focused on producing quality craft ales and lagers. We will have ten taps that will feature a core set of beer we produce, as well as seasonal ales/lagers. We plan
...More info on site
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USA, IN: Grand Junction Brewing Co. to open in Westfield
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Something’s brewing in downtown Westfield – literally. Co-owners Jon P. Knight of Westfield and Charlie Wood of Fishers are working to update a former restaurant into Grand Junction Brewing Co. Officials said the business plans to open at the end of March or the first week of April, Current in Carmel reported on February 20.
“The key compound is passion. You have to be extremely passionate about brewing. You have to be adamant about producing the best product possible,” Knight said.
The naming of Grand Junction Brewing is a nod to Westfield’s history and future. Knight said the railroad-themed name is derived from the city’s connection point of the Monon and Midland railroads and the rich Quaker history that helped establish Westfield.
“We have the actual physical railroad and the underground railroad,” he said. “In the future – in a year-and-a-half to two years – we’ll have Grand Junction Plaza. Grand Junction Brewing seemed like a good fit.”
Just across the street from the business is where Westfield will create the civic plaza community gathering space, which is intended to become the “gem of the city.”
“We hope we are going to be a part of the renaissance. Westfield is at the beginning of some
...More info on site
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USA, NC: Fortnight Brewing Company opens in Cary
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Fortnight is Cary’s first brew pub. It’s also the first brewery in the Triangle focusing primarily on English beer. For now, Fortnight is mostly relying on social media and word of mouth to draw customers to its bar, Cary News reported on February 23.
The company’s investors are confident business will pick up quickly, and Fortnight’s 24,000-square-foot building reflects their optimism.
“Cary is an untapped market,” said David Urben, the commercial real-estate agent who found Fortnight’s Cary site.
The brewery is surrounded by residential subdivisions and is less than a mile southwest of downtown Cary.
On the outside, the brewery is nondescript. On the inside, it has high ceilings, bar stools, booths and even a couple of leather chairs.
Stuart, 48, has brewed beer recreationally since he was a youngster in Maltby, England. He was inspired by his grandfather, a forager who used to make his own wine.
The fermenting process “fascinated me,” he said.
English beer tends to be more malty than hoppy, and some – like Fortnight’s English ale – have a lower-than-average alcohol content.
It’s usually served at warmer temperatures than American beers, though Fortnight serves its brews on the colder side.
Most English beers take two weeks to craft, hence the name Fortnight. It’s a
...More info on site
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USA, NY: Lost Borough Brewing Company plans expansion
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The Lost Borough Brewing currently occupies a garage in Webster, not an ideal spot for an aspiring microbrewery. However, the company has launched a Kickstarter campaign to help move it into a proper building in Rochester, Rocherster Democrat and Chronicle reported on February 24.
"We always joked around that we should start our own brewery someday," says Dave Finger, co-founder and co-owner of Lost Borough. These initial ideas came from a guys' night ritual in which Finger and his friend, Dan Western, visited a new restaurant or bar every Wednesday.
"One of the things we really noticed is that there's not a lot of selection ... of craft beer," Finger says.
Convinced he could do better, Western bought a home brew kit. For the next couple years, Wednesdays became brewing night. The friends started with an extract kit, which provides a carton of grain sugar goo to be combined with yeast and fermented into beer. It only took three batches for Western to lose satisfaction with the paint by numbers approach, skip several steps in the natural brewery progression, and go straight to all-grain brewing, which calls for raw, natural ingredients.
"Brewing is something I'm very passionate about," Western says. "I wanted to get
...More info on site
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World: AB InBev reports 13% hike in Q4 2013 profit
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Anheuser-Busch InBev, the world's largest brewer, forecast a return to growth of Brazilian and Mexican beer sales this year and improvement in the United
...More info on site
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Brazil: Ambev’s Q4 profit increases significantly despite decline in beer sales
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Ambev S.A., the Brazilian division of the world’s No. 1 brewer AB InBev, reported on February 26 that its fourth-quarter of 2013 profit attributable
...More info on site
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The Philippines: Beer sales overcome tax increases to grow to 16.3 mln hl last year
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A series of the so-called sin tax hikes appear to have failed to dent beer drinking among Filipinos, with the per capita consumption of
...More info on site
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World: 2013/14 grain, rice and oilseed crops are huge and of good quality
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The 2013/14 grain, rice and oilseed crops are huge and of good quality. Both the USDA and IGC increased their crop estimates once more
...More info on site
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UK: Craft beer sales rose by 8% last year
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British drinkers’ thirst for artisan and craft beers appears unquenchable as sales of local brews rose by an estimated 8pc last year to 1.55
...More info on site
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The Philippines: San Miguel Brewery Inc. planning bond offering
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Philippine beer giant San Miguel Brewery Inc. plans to tap the local bond market to raise as much as P20 billion to refinance older
...More info on site
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New Zealand: Volume of alcoholic beverage available for consumption increases in 2013
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The volume of alcoholic beverage available for consumption in New Zealand increased 8.9 million litres (1.9 percent) in 2013, following a 15 million litre decrease in 2012, Statistics New Zealand said on February 25. In 2013, 466 million litres were available, compared with the 2008 high point (486 million litres).
"Beer and wine drove the increase in total beverage available for consumption in 2013," industry and labour statistics manager Louise Holmes-Oliver said. "However, spirit-based drinks fell, following rises in recent years".
The total volume of beer increased 8.9 million litres (3.2 percent), led by medium-strength beer, which was up 11 million litres. The total volume of wine increased 3.7 million litres (3.6 percent), due to nongrape table wine (including cider) increasing 5.2 million litres. Spirit-based drinks partly offset these increases, falling 3.9 million litres (6.2 percent).
The volume of pure alcohol available increased 0.8 percent, to 33 million litres in 2013. Beer led this increase, up 387,000 litres, but was partly offset by spirit-based drinks, down 297,000 litres.
The volume of pure alcohol available per person aged 15 years and over (15+) was unchanged from 2012, at 9.2 litres per person. This is equivalent to an average of 2.0 standard drinks per person per
...More info on site
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Colombia: SABMiller’s sales affected by government’s drunk-driving crackdown
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The Colombian government’s drunk-driving crackdown, which has included fines of up to $14,000 and jail sentences as long as 18 years, is taking a toll on the nation’s biggest beer seller: SABMiller Plc, Bloomberg reported on February 24.
A series of drink-fueled accidents in the run-up to Christmas, including one case of a motorist who mowed down nine people in southern Bogota, provoked a national outcry and caused President Juan Manuel Santos to denounce “the criminal cocktail of alcohol and gasoline.” The tougher rules, which SABMiller supports, led to lower-than-expected drink sales in December and January, according to Grant Harries, president of Bavaria, the London-based company’s Colombia unit.
“In December, this latest enforcement -- and the level of penalties applied to drinking and driving -- has placed the alcohol industry under a lot of pressure,” Harries said in an interview last week in Bogota. “What we do see is that its impact seems to be reducing, but initially everybody just really stopped their usual consumption patterns.”
December is the biggest month for Colombian beer drinking, as workers go out to spend an end-of-year bonus that employers must pay them by law. And SABMiller is the biggest beneficiary of those sales: It accounts for
...More info on site
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Saudi Arabia: Largest feed barley importer’s purchases are decisive for world barley price levels
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Saudi Arabia, the largest feed barley importer of the world is decisive for price levels, indirectly also for malting barley, an industry report said
...More info on site
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UK: Heineken to offer four new low and no-alcohol drinks
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Heineken is to roll out four new low and no-alcohol drinks - including two 2.8% abv ciders, The Grocer reported on February 23.
Bulmers Five Fruit Harvest and Bulmers Indian Summer launch next month, when two additions to the Foster’s Radler low-alcohol beer brand also roll out - a lime and ginger flavour and a non-alcoholic variant.
Heineken said it aimed to transform the market by leading development of the “lower-alcohol moderation” category. Up 62.4% year on year to Ł45m [IRI 52 w/e 4 January 2014], the sector could account for 5% of beer and cider sales in 10 years, it claimed.
“An increasing number of consumers want to make informed choices on alcoholic strength preferences, which will often differ from occasion to occasion,” said off-trade MD Martin Porter. “Despite growing demand, lower-alcohol options are relatively limited, and our new variants have been created to offer a wider choice.”
Bulmers Five Fruit Harvest is an “easy-drinking” cider made with apple, pear, plum, quince and grape; while Indian Summer is made with apples and “a hint” of ginger and cardamom. Sold in 568ml single bottles, they are designed to appeal to 18 to 34-year-olds and are targeted at midweek and after work.
Foster’s
...More info on site
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UK: Carlsberg launching blackcurrant lager
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Carlsberg is following up last year’s launch of 2.8% ABV Citrus with a low ABV Blackcurrant variant, Morning Advertiser reported on February 24.
Described as an ‘easy to drink’ 2.8% ABV lager blended with natural blackcurrants, Carlsberg Blackcurrant is rolling out to both the on and off-trade following an exclusive launch period with Asda in February.
It was developed by Carlsberg’s UK innovation team following the launch of Carlsberg Citrus in 2013. Citrus has sold more than 50,000 hectolitres in its first year, the brewer claimed.
Dharmesh Rana, senior brand manager for Carlsberg UK, said: “Our insight shows consumers are looking for a range of flavours from established everyday categories and the brands within them.
“This trend, combined with the explosive growth of the easy-to-drink beer category, means new products like Blackcurrant are creating a sizeable opportunity for businesses.”
Carlsberg entered the low ABV segment last year following the launch of Heineken's 2.0% ABV Foster’s Radler last spring and Molson Coor's 2.8% ABV Carling Zest in 2012.
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Brazil: AB InBev to launch limited-edition beer made from barley grown on legendary training soccer field
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In a unique - and bizarre - convergence of beer and soccer, Anheuser-Busch InBev will launch a limited edition of its popular Brahma beer made from barley grown on the soccer field where Brazil's iconic World Cup teams have trained for decades. Brahma Selecao Especial will be sold in Brazil starting in March, three months before the Brazil-hosted World Cup kicks off, AdvertisingAge reported on February 24.
"Brahma is the official sponsor of the Brazilian soccer team, and the official beer of the World Cup," said Sergio Gordilho, co-president and chief creative officer of Brahma agency Africa. "We wanted to launch a product that got inside the team itself. How do you unite soccer and beer?"
The training center, called Granja Comary, is considered sacred ground to Brazilian soccer fans, and one of the two iconic symbols of Brazilian soccer, along with Rio de Janeiro's Maracana stadium, he said. That inspired the idea of making beer from ingredients sown on the field where Brazil grew more World Cup-winning teams - five - than any other country. It's usually not available for growing a crop of barley, but in a stroke of luck the Brazilian Soccer Confederation was remodelling its headquarters at the
...More info on site
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