New Zealand & Belgium: InBev beers to be sold by Lion Nathan in New Zealand
InBev, the world’s largest beer company by volumes, announced on August 1, 2005 that it has signed a distribution agreement with Lion Nathan NZ (LNNZ) which gives LNNZ the right to import, distribute and market InBev’s international specialties Leffe® and Hoegaarden® until 2014.
The distribution agreement follows the success LNNZ has had with InBev’s premium portfolio of Belgian beer brands for several years. It reaffirms the commitment the two companies made to each other in 2002, when they signed a ten-year license contract giving LNNZ the right to brew, distribute and market Stella Artois®, one of InBev’s global flagship brands and one of the fastest growing premium beers in the New Zealand market.
New Zealand beer drinkers’ consumption tastes are changing – they are becoming more experimental, seeking out new experiences and taste profiles that fall outside the traditional mainstream beer territory.
Belgian beers, in particular, have enjoyed a massive surge in popularity over the past few years. InBev’s specialty brands like Hoegaarden®, the white beer, and the Leffe® range of Abbey beers have been growing successfully in the past years, especially in their export markets.
“The growth of our Belgian beer portfolio is outstanding,” says Peter Kean, Managing Director for Lion Nathan New Zealand. “We are delighted to have taken our relationship with InBev to another level by formalizing our commitment to several of InBev’s premium brands. We are committed to the expansion of the premium segment in New Zealand and have no doubt that the exceptional performance of Stella Artois®, Hoegaarden® and Leffe® will continue as New Zealand consumers’ demand for specialty beers increases.”
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Hungary & Czech Republic: Plzenský Prazdroj’s Velkopopovický Kozel brand launched in Hungary
Plzenský Prazdroj, the largest Czech brewer, announced on August 1, 2005 that as of July the largest Hungarian brewery, Dreher, started brewing its Velkopopovický Kozel brand under the licence. Hungary has become the third country outside the Czech Republic where Velkopopovický Kozel is produced under licence. This traditional Czech brand with strong quality credentials currently experiences a great success in foreign markets. In the past 12 months its sales abroad boosted to almost 1 million hectolitres, largely thanks to the licensed production in Russia and Slovakia. Dreher brewery is a part of the global brewing group SABMiller plc, as well as Plzensky Prazdroj, the Velkopopovicky Kozel producer for the Czech market.
"The decision to launch licensed production of Velkopopovický Kozel for yet another market outside the Czech Republic is a natural follow-up to the international success the brand has been enjoying so far. Velkopopovický Kozel represents a quality Czech beer with long tradition and at the same time it is a strong competitor to both imported and local beers in the specific markets. Licensed production will be supervised by the most experienced brew masters from Plzensky Prazdroj,“ says Alexej Bechtin, company spokesperson.
Velkopopovický Kozel Light variant is launched for the Hungarian market in a 0.5l bottle and can packaging. Apart from its licensed production Velkopopovický Kozel is also exported, predominantly into the Scandinavian and Baltic countries, e. g. in Finland it is the the biggest imported brand.
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USA: Molson Coors Reports 2005 Second Quarter Results
Molson Coors Brewing Company announced on August 2, higher consolidated net sales and sales volume, and lower net income for the second quarter of 2005 compared to the second quarter of 2004. Higher consolidated sales volume and net sales
were attributable to the inclusion of Molson Inc. results in the second
quarter of 2005 but not in the second quarter of 2004. Lower net income of
$38.5 million, or $0.45 per share, was primarily attributable to special
charges totalling $87.7 million in the second quarter 2005.
For the 13-week second quarter ended June 26, 2005, the company reported
net sales of $1.6 billion and sales volume of 12,799,000 barrels, or
15,019,100 hl. Excluding special items and merger-related
amortization expense, the company reported after-tax income of
$105.1 million*, or $1.22 per share, for the 2005 second quarter, down
12.4 percent from 2004 on a pro forma basis. The company's effective tax
rate during the second quarter 2005 was 53.0 percent, or 37.5 percent
excluding special items and merger-related amortization.
The company plans to file an amended first quarter 2005 Form 10-Q later
this week to correct the initial recording of a U.S. deferred tax asset as
part of the purchase accounting for its U.K. acquisition in 2002. Due to the
change, the company will restate its first quarter 2005 tax provision and
earnings. The company still expects its long-term effective tax rate
excluding Brazil losses to be in the range of 25 to 30 percent.
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China: Budvar’s victory in the dispute with Anheuser-Busch
Czech brewery Budejovicky Budvar has won a trademark dispute with its rival Anheuser-Busch in China, Prague Daily Monitor communicated on Tuesday, August 2. "Our trademarks will be registered only if the Americans do not appeal by the set deadline," stated Petr Samec, Budvar spokesman. The dispute in China begun in 1999.
"Still, we are glad. Demand for foreign beer is only beginning to grow, but this market has big potential for us in the future," said Jiri Bocek, Budvar chief executive.
Budejovicky Budvar and Anheuser-Busch have been arguing over the right to use the Budweiser name and other trademarks for 99 years.
They are involved in 40 trademark disputes and more than 70 administrative proceedings at patent offices worldwide. Budvar has registered in more than one hundred countries 380 trademarks.
UK: Interbrew UK changes name
Starting with August 1, 2005 Interbrew UK has the name of “InBev UK”. This change in name is the result of the merger of its parent company, Interbrew SA, with AmBev brewer in August 2004.
InBev UK’s trading companies Bass Ireland Ltd and Interbrew Ireland change as well their names into InBev Ireland Limited and InBev Ireland, correspondingly.
The InBev UK name and logo will be used on all new communications. A special programme will be carried out to substitute the Interbrew UK logo and name.
InBev is today, the leading global brewer by volume and has a portfolio of more than 200 brands.
Malt News
Germany& UK: Malt industry analysts about factories shutdowns
In view of the existing and growing overcapacity in the malt industry, analysts point out that they have seen permanent and temporary shutdowns of factories in several countries. In the U.K. demand of malting barley was 1.935 million tonnes in 2003/04, but only 1.770 million tonnes in the past crop year, malt production will drop by 130,000 tonnes.
German statistics show that malt production in July-April 2004/05 fell from 1.682 to 1.580 million tonnes, all of the reduction took place in January- April. "In Germany we see 5 factories with a total capacity of 130-140,000 tonnes closed permanently or at least for a longer term," analysts said.
EU: EU malt export sales for July 2005
Malt export sales in July were small. Africa (Group Castel), Brazil, Japan acquired limited quantities. Reported prices were better than in June, FOB seaport in bulk EUR 228,-/230,-, FOB in bulk in container EUR 255,-. Many large buyers in Brazil, Venezuela, Thailand, Vietnam, Philippines and Japan are still sitting on the side lines, analysts say.
Barley News
United Kingdom: Analysts about UK malting barley crop
Muntons PLC reported to E-Malt on July 28, 2005 that despite some interruptions because of rain, the majority of the winter malting barley crop in the East Anglia has been combined.
Buying for use their Stowmarket Maltings, Mike Norfolk, Muntons Grain Manager said, ”This has to be one of the better harvests for a while. As far as our contract winter malting barleys are concerned every sample has passed. Quality is good and prospects are excellent. ”
“In Yorkshire and Lincolnshire, Pearl malting barley has again performed well,” commented Bridlington Grain Manager, Mark Ineson. “Flagon has also been a success with excellent quality and nitrogen levels”
Around 70% of East Anglian winter malting barley crop and 50%of the Yorkshire/Lincolnshire crop has been harvested. One or two spring barleys are now appearing but it is too early to comment although prospects look good at this stage.
There are reports that malting barley in the south of England is less good than in the rest of the country but this represents only a small percentage of the requirements of the UK malting industry and is unlikely to cause any supply difficulties.
China: Analysts’ opinion on Chinese malting barley market
According to the forecasts of Chinese analysts the total barley crop will be of 3.1 million tonnes, of which 1.6 million tonnes of malting varieties. Assuming another increase of the beer output by only 10 % (last year were almost 15 %), China would need 3.6 to 4.0 million tonnes of malting barley. This figure is calculated from a usage of 9 or 10 kilos of malt per hl of beer. Therefore barley imports should reach 2.0 to 2.4 million tonnes.
Imports in January/June of this year were 1.357 million tonnes, up 35 % from a year ago, 830,000 tons came from Australia, 480,000 tons from Canada. It is estimated that also 150,000 tonnes of French barley have been sold and are on the way to China. European offers are US$ 195,- CIF for Esterel and 205,- CIF for spring barley. Some old crop Canadian barley with lower specifications sold below these levels, and Chinese buyers are rumoured to show interest in new crop Australian barley at or above the 200,- mark. Lower ocean freight rates put malting barley to China back into bulk vessels instead of containers.
Hops News
Europe: Joh. Barth & Sohn GmbH & Co. KG evaluates European hops growth as normal
The European hop growing areas report normal growing conditions, Joh. Barth & Sohn GmbH & Co. KG, the agricultural company that processes and trades hops and hop products worldwide reported at the beginning of July 2005.
The growth delay caused by cool climatic conditions in early May was completely compensated by the end of June. The plants have reached full trellis height. Some varieties have already started with the early stage of flowering. Rain at the end of June and in early July brought the necessary humidity and provides for further healthy plant development. There have been no visible problems with pests and diseases up to now.
In Poland, Czech Republic and Slovenia plant growth is average to good. Joh. Barth & Sohn GmbH & Co. KG assumes that some hops from these countries will be used to balance the deficit in German aroma hops (e.g. Aurora, Marynka).
Joh. Barth & Sohn GmbH & Co. KG notifies also that the Slovenian variety known as "Super Styrian" will only be certified as "Aurora" by the authorities, as this is the correct botanical name.
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