E-Malt.com Flash 24a. June 13

Brazil & Belgium: Inbev is to buy back its shares and increase its ownership in AmBev

InBev S.A. announced on June 14 share buy-back program, as well as its intention to increase economic ownership in AmBev...more info

India: SABMiller plans further strategic investment in India

SABMiller plc announced on June 14 its intention to invest further in India, which it has identified as a strategic growth market for the Group. The global brewing company’s Indian subsidiaries intend to commit in excess of $125 million in capital expenditure and marketing initiatives over five years to expand current operations and further develop market-leading brands in India.

SABMiller recently announced that its Indian subsidiary, MBL Investments, acquired the Shaw Wallace Group’s residual interest in the brewing operations of SABMiller’s Indian joint-venture. The Group’s brewing operations comprise 10 breweries across the subcontinent constituting India’s second largest brewer. Its key brands include Hayward’s 5000, the leading beer brand in the rapidly-growing strong beer segment; Royal Challenge Premium Lager, the second-largest mild beer in the country; Knock-Out and the international premium brand Castle Lager.

Graham Mackay, Chief Executive of SABMiller plc said: “It is widely known that India is a rapidly expanding economy and represents an exciting growth opportunity for SABMiller. We firmly believe that a vibrant beer business will not only contribute significantly to the economic development of the country, but a well regulated industry will encourage responsibility in the consumption of alcohol throughout the subcontinent. This can only be achieved, in our view, by working with the Indian authorities to reform the prevailing structure and reduce the complexity of the restrictions that are currently in place.” ...more info

Bulgaria: Beer consumption has dropped by 8.3% for the first five months of this year

Beer consumption in Bulgaria has dropped by 8.3% for the first five months of this year, due to the cool weather and the 50% excise duty imposed...more info

Japan: Asahi Breweries "overweight," target price reduced. Results for May 2005

Analyst Taizo Demura of Morgan Stanley maintains his "overweight" rating on Asahi Breweries Ltd., Japan's largest beer maker...more info

Colombia: Bavaria’s shares rose on SABMiller offer rumour

Shares in Colombian brewer Bavaria rose 5.15 % on June 14 on rumours that London-based SABMiller Plc had made a take-over offer, brokers said. A spokesman for Colombia's biggest brewer declined to comment on the rumours, Reuters said. No spokesman for SABMiller in London was immediately available.

Shares in Bavaria, which dominates brewing in Colombia, Ecuador, Panama and Peru, and is 70-percent controlled by the Santo Domingo family, closed at 47,800 pesos, up 5.15 percent from Monday's close. Several traders said SABMiller had made an offer although they said they did not know the details.

Bogota-based Bavaria said earlier this year it would consider a share-swap with a leading international brewer but does not want to sell out.

London-based SABMiller Plc and Dutch Heineken NV, the world's third and fourth biggest brewers, are leading the race for Bavaria, which is valued at around $6.4 billion including $1.7 billion of debt, sources close to the situation said last week. ...more info

Malt News

UK: Malt exports in April 2005 decreased by 46.7% year-on-year

In April 2005 United Kingdom exported 19,378 tonnes of malt of which 1,902 tonnes to EU countries and 17,476 tonnes to non-EU countries...more info

Barley News

USDA: World barley trade 2004/2005 and 2005/2006

United States Department of Agriculture (USDA) published on June 11 its latest forecast of world trade changes of barley in 2004/2005 and 2005/2006.

World barley trade 2004/2005: According to USDA estimations, 2004/2005 Australia barley export is raised by 700,000 tonnes to 4.5 million based on strong demand from the Middle East and North Africa. Iran barley import is raised by 300,000 tonnes to 550,000 tonnes based on higher-than-expected imports from Australia.

World barley trade 2005/2006: According to USDA estimations, 2005/2006 Canada barley export raised by 200,000 tons to 2.0 million based on less Black Sea competition. EU barley export raised 300,000 tonnes to 3.6 million on less Black Sea area competition. Ukraine barley export lowered 300,000 tonnes to 3.5 million tonnes due to a sizeable drop in production and tight exportable supplies.

According to USDA estimations, 2005/2006 Iran barley import increased 200,000 tonnes to 500,000 tonnes reflecting expanded demand. Morocco barley import is raised 200,000 tonnes to 400,000 tonnes based on a drop in production caused by regional drought. Turkey barley import is lowered 300,000 tonnes to 100,000 tonnes on expectations for a larger crop.

Hops News

China: Carlsberg buys 46% stake in Xinjiang Hops Company

Danish brewing giant, Carlsberg Breweries A/S, has acquired a 46.09 % stake in Xinjiang Hops Co, China's largest barley and hops producer...more info