E-Malt.com Flash 31b. August 04

Spain: InBev sells its stake in Spanish Brewer Damm

World’s leading beer maker by volumes, InBev S.A. announced on August 5 that it has reached an agreement to sell the totality of its 12.02% minority stake in the Spanish brewer Damm S.A. (“Damm”) for a minimum cash consideration of 176 million euro.

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Italy: Beer consumption decreased two years in a row due to the excise rise

Italian beer consumption has decreased by 2.2% in the first half of 2005, compared to the same period last year and fell by 7% over the first half of 2003.

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Russia : Russians help BBH to steppe up beer sales in Q2 and H1 2005

Baltic Beverages Holding AB (BBH) announced on August 3 its first half and second quarter 2005 results (April to June 2005).

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Czech Republic: Plzensky Prazdroj plans large-scale reconstruction

The main production facility of brewery Plzensky Prazdroj in Plzen will undergo a large-scale reconstruction in the next few years, Prague Monitor Daily communicated on August 3.

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Latin America: Purchase of shares of Quilmes International (Bermuda) Ltd.

Quilmes Industrial (Quinsa) S.A. announced on August 4 that it has entered into an agreement with its controlling shareholders, Beverage Associates (BAC) Corp. and Companhia de Bebidas das Americas - AmBev, pursuant to which it has agreed to purchase from BAC its 5.32% equity interest in Quinsa's subsidiary, Quilmes International (Bermuda) Ltd (QIB). The purchase price for the QIB shares will be determined pursuant to a formula that calculates the value of QIB based on QIB's audited financial statements for the year ended December 31, 2005. Under this formula, QIB will be valued at 6 times QIB's EBITDA for 2005 less QIB's net debt as of the end of 2005. The estimated purchase price is $110 million. Upon completion of this transaction, Quinsa will own 92.95% of QIB and AmBev will own the remaining 7.05%.

Quinsa expects to acquire title to BAC's QIB shares and to deposit the estimated purchase price into an escrow account within approximately 30 days. Once the final purchase price is determined and certain other conditions are satisfied, the escrowed funds will be released to BAC and Quinsa and BAC will make any payments necessary to reflect any difference between the funds released to BAC and the final purchase price plus interest thereon (accrued at a rate of LIBOR plus 2%) from the fifth business day after the date hereof until the full purchase price is paid to BAC.

The agreement also amends certain other provisions of the existing stock purchase agreement between BAC and AmBev.

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Malt News

EU: EU malt exporters booked licences for 180,000 tonnes in July

EU malt exporters booked licences for 180,000 tonnes in July. Converted to a year’s figure, it would be close to 2.2 million tonnes. Such figure matches the EU malt exports of the past crop year. ...

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Barley News

Australia: Crop estimates now range from 7.0 to almost 8.0 million tonnes

Crop estimates now range from 7.0 to almost 8.0 million tonnes. Beneficial rainfalls continued during the month, in some places they were overabundant. In South Australia and Victoria planting was finally only two to four weeks late, crops are looking fine today. ....

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USA: Barley prices still pressured by carryover stocks and high-energy costs

The malting barley industry is still pressured by the carryover supplies that have accumulated over the past few years; by the high-energy costs,

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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.