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Newsletter Summary

Currency rates
Equities of largest breweries
Market prices change trend
Top industry news
Brewery news
Malt news
Barley news
Hops news
More news
Malting barley prices
Table of the week
Graph of the week
Agenda
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Average market prices Change trend

17 Oct - 18 Oct 2005
Crop 2005
2rs Barley €116.5-118.5 -0.18%
6rw Barley €104.0-106.0

Note: Just click on the price link and you will be led to our Market Price History. Average barley market prices are French and are estimated on FOB Creil basis.
The changes are compared to last Newsletter's prices. Arrows indicate the direction of the change.


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Newsletter 41b, 2005

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Newsletter 41a, 2005

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Newsletter 40b, 2005

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Newsletter 40a, 2005

See this Newsletter!
Newsletter 39b, 2005



Market price evolutions

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All e-malt.com tables are published in e-malt.com Statistics section. The Statistics section includes Barley statistics, Malt statistics and Beer statistics. The tables related to barley are published in Barley Statistics section, the tables related to malt in Malt Statistics section and the tables related to beer in Beer Statistics section.


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E-malt.com Newsletter 42a
October 17 - October 18, 2005

Currency Rates
Base Currency: Euro, EUR
on 18-October-2005

1 EUR = 1.2029 USD
1 EUR = 0.6858 GBP
1 EUR = 1.4186 CAD
1 EUR = 1.6067 AUD
1 EUR = 138.22 JPY
1 EUR = 2.6886 BRL
1 EUR = 34.3789 RUB
1 EUR = 9.743 CNY
Base Currency: US Dollar
on 18-October-2005

1 USD = 0.8316 EUR
1 USD = 0.5701 GBP
1 USD = 1.1793 CAD
1 USD = 1.3356 AUD
1 USD = 114.93 JPY
1 USD = 2.2351 BRL
1 USD = 28.58 RUB
1 USD = 8.0996 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
Australia: The South Australian Supreme Court hands out judgement on Coopers... Click here

Japan: The government plans to hike the tax on quasi-beer drinks... Click here

China & UK: Scottish & Newcastle plans building new breweries for expansion in China... Click here

Norway: Norway has the most expensive beer... Click here

Denmark: Royal Unibrew increases its holding of shares of Greenland production entity... Click here

Thailand: Asahi brewery starts a 3.7 mln US$ campaign to reposition its brand... Click here

Finland: Comments on the latest Finish malt shipments... Click here

USA: Jefferson Grain Processors buys a Cargill Malt plant in Jefferson... Click here

Australia: Malt barley pool estimate reduced by A$2/tonne... Click here

EU: The flow of malting barley in the EU will change for this campaign, analysts say... Click here

World: Hop acreage outline for 2002- 2005... Click here

More News
Russia: Ochakovo brewery launches a non-pasteurised, nutrient rich beer ...More Info

China: Carlsberg on hunt for Chinese breweries ...More Info

USA: Cargill Reports First-Quarter Fiscal 2006 Earnings ...More Info

Canada: Lakeport Brewing Income Fund announces monthly cash distribution ...More Info

Byelorussia: EBRD could become shareholder of Belarussian Olivaria Brewery ...More Info

Australia: Appointment of new executive positions at ABB Grain Ltd ...More Info

Belgium: John Brock, the world’s biggest beer boss in an interview ...More Info

EU: The main reason for lower malting barley markets is the domestic situation, analysts comment ...More Info

UK: InBev UK launches first advertising campaign for its premium lager, Brahma ...More Info

USA: USDA market projections for MY 2005/2006 ...More Info

UK: Diageo says trading for Q1 is in line with targets ...More Info

EU: EU Grains Management Committee rejecting bids to export free market barley ...More Info

Russia: Sun Interbrew launches a new brand, Tolstiak Krepkoye ...More Info

Ukraine: Barley export sales for September decreased by almost 50% comparing to August ...More Info

Canada: Lakeport Brewing ranks in Top 100 Marketing Power List 2005 by Marketing Magazine ...More Info

Netherlands: Leeuw Bier closes its facilities in Netherlands ...More Info



Brewery News
Australia: The South Australian Supreme Court hands out judgement on Coopers

The South Australian Supreme Court hands down a pivotal judgement on October 17 regarding Lion Nathan's hostile A$352 million takeover bid for Coopers Brewery, according to The New Zealand Herald .

The court has still to decide whether to overturn or uphold a decision that said Lion Nathan's pre-emptive rights could be removed by a vote of Coopers shareholders.


Japan: The government plans to hike the tax on quasi-beer drinks

The Japanese Finance Minister announced the government plans to overhaul the liquor tax system in fiscal 2006 and raise the tax rate on "third-segment" beer-like alcoholic beverages, Jiji Press Tokyo posted on October 18.

At a press conference Tuesday, October 18, Finance Minister Sadakazu Tanigaki predicted that the Tax Commission, a government panel, will discuss simplifying taxation categories for alcoholic beverages.

The government presently sets 10 different tax rates on a variety of alcoholic beverages based on materials and production processes. The ministry intends to consolidate them into around four categories, such as fermented liquor and distilled one, informed sources said.

The ministry is studying a plan to integrate regular beer, "happoshu" low-malt quasi-beer products and the third-segment beer- like drinks into a single category. It plans to narrow the difference of tax rates among them by lowering the rate on regular beer while raising the rate on the third-segment products, according to the sources.

The ministry's planned liquor tax reform is not intended to increase tax revenue, a Tax Bureau official said.

The third-segment beer-like drinks contain little or no malt. Sapporo Breweries Ltd.'s Draft One contains a pea protein. Kirin Brewery Co.'s "Nodogoshi" and Asahi Breweries Ltd.'s "Shinnama" ...
More Info


China & UK: Scottish & Newcastle plans building new breweries for expansion in China

Scottish & Newcastle makes an investment of £30 million to build three breweries in China as it plans to expand into the Chinese beer market. S&N's director for Asia, John Hunt, announced last week that the Edinburgh-based group's Chongqing Breweries joint venture in China would open the three plants over the coming year. He added that S&N would consider buying state-owned brewers if, as the company expects, the Chinese government put them up for sale.

The planned breweries will produce 264 million pints of beer yearly , compared with Chongqing's present output of two billion pints. While that increase may look modest, Hunt said S&N could easily double its production of beer in China.

According to Hunt’s statement S&N's joint venture addressed a potential market of between 20% and 40% of China's population, roughly the same as Western Europe. The company's beer is sold around the cities of Chongqing and Chengdu, and in the provinces surrounding Shanghai.

S&N purchased a 19.5% stake in Chongqing, China's fifth-biggest brewer, for £35m in November. It has an option to increase its shareholding in the brewer, whose biggest brand is Shancheng, to 25%. Chongqing holds about 4% of China's beer market, which is ...
More Info


Norway: Norway has the most expensive beer

Norway has the most expensive beer off all Nordic countries. The beer in Norway is twice as expensive as Danish beer. One litre of Danish beer costs NOK 7.32 when taxes have been deducted, while the Norwegian beer costs NOK 13.3, Norway Post reported on October 18. On the other side the Swedes have to spend NOK 11.26 plus tax.

Norway is first as well in this list when it comes to tax, since 62 % of what Norwegians pay in total for the beer ends up in the state coffers. In Finland 51 % of the total cost ends up as tax, while in Sweden the percentage is 49%, and in Denmark 42 %.


Denmark: Royal Unibrew increases its holding of shares of Greenland production entity

The Greenland Home Rule Government is selling its shares of the beer and soft drinks business Nuuk Imeq A/S, and the deal was closed on October 16. Since 1986, Nuuk Imeq has bottled and produced beer and soft drinks from Royal Unibrew and Carlsberg Breweries, respectively. To date, the shares have been held by the two brewery businesses, the Municipality of Nuup and the Greenland Home Rule Government.

The shares held by the Greenland Home Rule Government are distributed to Royal Unibrew A/S, Carlsberg Breweries A/S and the Municipality of Nuup proportionately to their existing holdings of shares of Nuuk Imeq A/S. The total acquisition price of the shares is DKK 34.4 million. The amount represented by the shares acquired by Royal Unibrew is some DKK 11 million.

Following the acquisition of the shares, the share capital breaks down as follows: Royal Unibrew A/S and Carlsberg Breweries A/S each hold 31.86% and the Municipality of Nuup holds 35.38% of the shares of Nuuk Imeq A/S.

The shares have been acquired with effect from 30 June 2005 in continuation of Royal Unibrew's existing beer and soft drinks activities in Greenland. For example, Royal Unibrew is the provider of the leading soft drink ...
More Info


Thailand: Asahi brewery starts a 3.7 mln US$ campaign to reposition its brand

Asahi brewery starts a 150-million-baht (about 3.7 mln US$) campaign in order to reposition its brand in Thailand and seeking to lift sales to one billion baht in 2006 and get more than a 10% share of the imported bottled beer market. Moreover, Asahi expected to create a stronger brand image among its target customers, said Kanchit Singsuwan, general manager of B&A Distribution Co, The Bankog Post announced on October 14.

The ''Forget the Line'' campaign will use television, radio, print, outdoor media and point-of-sale promotions, and will put a strong emphasis on event marketing. Activities will be held in Bangkok and other big centres such as Pattaya, Chiang Mai, Khon Kaen and Phuket.

Asahi expects 370 million baht in sales this year. In the first nine months, it reported sales of 300 million baht compared with 180 million year-on-year. Silver, as seen on Asahi beer cans, would be used the dominant colour in the campaign, and the company hopes that customers will begin to associate the colour with the beer.

Malt News
Finland: Comments on the latest Finish malt shipments

Finnish maltsters succeeded to sell large quantities to Russia, at undisclosed prices, for delivery in 2005/06. The quantities are estimated by analysts to be around 30-40.000 metric tonnes. Finland has the advantage of identical rail gauges as Russia, their deliveries can continue in winter, when Baltic sea navigation, and especially the entrance to the port of St. Petersburg are hindered by ice. Inquiries are also in the market from Ukraine, Moldova and Armenia.


USA: Jefferson Grain Processors buys a Cargill Malt plant in Jefferson

Jefferson Grain Processors, LLC announced on October 13 that it has agreed to buy the plant and assets of the Cargill Malt in Jefferson and plans to convert the site into an ethanol plant, fish farm and electric co-generation facility. The company has already signed a letter of intent to purchase Cargill Malt of Jefferson.

JGP plans to invest over $200 million into converting the malting plant on the 375 acre site into a multi-use facility ethanol plant, a tilapia fish farm, and an electric co-generation component Cargill Inc., Minneapolis, is closing the plant this month, resulting in the loss of 74 jobs.

Jefferson Grain said the changes will add 150 jobs in Jefferson.

Jefferson Grain expects the ethanol plant to produce 140 million gallons per year, making it three times larger than any other ethanol facility in Wisconsin.

The malting platforms in the plant will be turned into the largest tilapia fish farm in the United States, producing over 8 million pounds per year of fresh filets. The fish will be processed on site, adding to the employment impact. The company is also exploring the production of food grade corn oil as part of the process.

Terms of its purchase of ...
More Info

Barley News
Australia: Malt barley pool estimate reduced by A$2/tonne

ABB Grain Ltd has reviewed its gross barley pool indicators for 2005/2006 and has reduced its estimate by A$2/tonne for Malting Barley, to A$190/t, the company announced on October 17. This is for Vic, NSW and SA

The company’s estimate for Feed Barley remains unchanged at A$155/t.

ABB Grain general manager marketing, Nigel Officer, said the adjustment was in response to current supply and demand for malting barley within Australia.

“The increasing projected size of the malting barley crop for the coming harvest in Australia has influenced the decision to make this reduction,” Mr Officer said.

Current gross barley pool indicators for 2004/2005 are:

Victoria and New South Wales*

Pool 1
Malt A$220-A$230/t
Malt 3 A$195-A$205/t
Feed A$165-A$175/t
Feed A$160-A$170/t*

Pool 2
Malt A$218-A$228/t
Malt 3 A$190-A$200/t
Feed A$160-A$170/t


EU: The flow of malting barley in the EU will change for this campaign, analysts say

Finnish maltsters succeeded to sell large quantities to Russia, at undisclosed prices, for delivery in 2005/06. The quantities are estimated by analysts to be around 30-40.000 metric tonnes. Finland has the advantage of identical rail gauges as Russia, their deliveries can continue in winter, when Baltic sea navigation, and especially the entrance to the port of St. Petersburg are hindered by ice. Inquiries are also in the market from Ukraine, Moldova and Armenia.

Hops News
World: Hop acreage outline for 2002- 2005

In the last three years the world hop acreage declined by about 700 hectares. This is an effect of the shrinkage in the acreage in Germany, Czech Republic, Australia, U.S.A. and China, according to the Hopsteiner analysts. This trend was to some extent changed as the 2005 acreage in the USA has increased by 600 hectares.

The developments in the crop 2004 market showed that the time of overproduction and excess stock would be to end.

Thus there is an expectation that the 2005-06 bitter hops market will be balanced. In the case of aroma hops it is already apparent that demand is explicitly higher than the supply. Prices have already increased accordingly.


Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.2029 October 18, 2005 
 Crop year   2005 
 Parity   FOB Creil 
 Position   July 2005 
Type   Variety  EURO  USD 
2RS  Scarlett  118.50  142.50 
2RS  Prestige  118.00  142.00 
2RS  Cellar  118.00  142.00 
2RS  Sebastien  116.50  140.50 
2RS  Astoria  116.50  140.50 
2RS  Cork   115.50  139.00 
6RW  Esterel   105.00  126.50 
Table of the week

EU Malt Export Licence Fixations

(in tonnes)   2001-2002   2002-2003   2003-2004  2004-2005   July 01, 2005 -
September 27, 2005  
 France   701,134  661,772  774,761  674,140  128,200 
 Germany   468,314  408,063  422,047  295,876  53,563 
 Belgium   296,368  287,850  317,292  418,344  125,252 
 U.K. 350,621  294,995  443,501  201,892  57,420 
 Finland   91,890  100,758  114,165  64,986  9,044 
 Denmark    96,812  94,791  90,452  74,743  17,762 
 Sweden   101,000  76,916  78,369  88,840  19,000 
 Netherlands   51,310  66,219  80,703  49,128  10,280 
 Ireland   35,145  31,140  38,900  56,924  7,000 
 Austria   8,840  8,620  60,211  16,954  6,039 
 Spain   2,400  5,640  10,000 
 Greece   1,744  1,306  979  130 
 Portugal   221  85  695  850  272 
 Italy  
 Total EU 15  2,205,799  2,038,157  2,432,075  1,942,807  429,772
 New EU members  May-June, 04     
 Czech Republic       34,340  82,062  14,633 
 Poland       7,604  32,084 
 Hungary       2,830  85,792  10,403 
 Slovakia       1,000  76,916  26,040 
 Total EU 25   2,205,799  2,038,157  2,477,849  2,219,661  484,907 

  Total Wheat malt, tonnes  
Total 2001-2002    12,805 
Total 2002-2003    30,908 
Total 2003-2004    15,768 
Total 2004-2005    8,162 
July 01 –September 27, 2005    1,573 
   
  Total Roasted malt, tonnes  
Total 2001-2002    23,480 
Total 2002-2003    23,603 
Total 2003-2004    24,438 
Total 2004–2005    27,212 
July 01 - September 27, 2005    7,641 
Graph of the week

Agenda
October 2005:
Custom Brewcrafters Autumn Festival Of Ales
7th Annual Charlotte Oktoberfest
MBAA Brewing & Malting Science Course
BJ's Beer Appreciation Night Woodland Hills - Oktoberfest
International Beer Summit / Kokusai Beer Matsuri
5th 2005 Technical Symposium, "The US Brewing Industry Considered
10th Annual World Beer Festival
5th Annual Autumn Brew Review
Anuga 2005, is a biennial show and is known as the world
Maryland Brewer's Oktoberfest
Great Decatur Beer Tasting Festival 2005 organised in Georgia, USA
Falmouth Oyster Festival with beer and oysters
Nottingham Beer Festival.Over 350 different casks of real ale
Falmouth Beer Festival Cornwall CAMRA
28th Norwich Beer Festival, is organised by the Norwich & Norfolk Branch
New England Beer Fest,a celebration of the local New England Beer Scene
Malt and Malting Barley Symposium

November 2005:
Weekend of Belgian BeersFestival
THE DUTCH BEERFESTIVAL
Brew BLAST. Annual Beer, Lager, Ale, and Stout Tasting
Georgia Craft Brew Challenge
Maine Beer Festival
US Grains Council International Malt Barley & Malting Buyers Conference San Francisco,
GlobalGrain 2005 For more information on GlobalGrain 2005
Regina Festiv-Ale. A premium beer festival featuring the best beer from Canada
Brewtopia. The event has two tasting sessions, local brews, live entertainment, food
Festival of Barrel-Aged Beer
Great International Beer Festival
Phinney Neighborhood Association Beer Taste
Orlando Beer Festival
Great Brews of America Beerfest
5th International Forum " Drinks Industry 2005"

December 2005:
Americas Food & Beverage Show
BevTech / BrewTech International Exhibition
Holiday Ale Festival
Beer Tasting & Education
Great Welsh Beer & Cider Festival
10th Annual Holiday Ale Festival
9th Annual San Diego Strong Ale Festival
Charity Beer Walk features...
December Holidaze Beer Tasting
Kerstbierfestival (11th Christmas Beer Festival). O.B.E.R.



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