Mexico exported about 15.9 million hl of beer in 2005, an increase by 10.3% compared to the previous year that maintained Mexico as the world’s largest beer exporter for the third consecutive year, according to a statement of Food and Agriculture Organization (FAO).

The Netherlands and Germany have exported 14.9 and 14.8 million hl of beer respectively in 2005 taking the second and the third place in the world.

Mexico has become the leading beer exporting company in 2003, outpacing the Netherlands. Today Mexican beer accounts about 16.2% of world beer market, with an export revenue of about USD 1.5 billion per annum.

The Board of Baltika Breweries has on January 18 announced details of its proposed merger with the Pikra, Vena and Yarpivo brewing companies whose majority owner is Baltic Beverage Holding AB (“BBH”). BBH is a 50:50 joint venture between Scottish & Newcastle plc and Carlsberg Breweries A/S.

The Board of Baltika believes that the merger will strengthen the business and enable it to develop into the largest and most professional consumer goods business in Russia.

The key points of the transaction are as follows:

The proposed merger will result in a business with:

an unrivalled brand portfolio

leadership by volume

increased national coverage

strengthened management team

stronger financial profile

improved efficiency and potential synergies

BBH has confirmed its commitment to take shares, not cash, in the enlarged Baltika in exchange for its holdings in Pikra, Vena and Yarpivo. This demonstrates BBH’s commitment to the business and the Russian beer market.

ZAO Deloitte & Touche CIS was appointed to provide independent valuations. Citigroup provided the Board of Baltika with a fairness opinion.

The proposed merger, which is subject to approval by Baltika, Pikra, Vena and Yarpivo shareholders, is expected to complete by December 2006.

Weissheimer Malzfabrik's Albadomu Bt, Hungary's largest malt producer, is seeking bankruptcy protection as the company is struggling to pay off debts to suppliers, amounting to Ft 6.6 billion(26.5 Mio euro), daily Nepszabadsag reported. Albadomu's troubles started early last year when its owner, the German Friedrich Weissheimer Malzfabrik overstretched itself by buying the malt processing plant of Borsod Brewery Rt while upgrades at two of its existing plants were already underway. The company's management is set to meet debtors on Monday to settle the issue, but the latter signaled it would file criminal charges against Albadomu if a deal is not reached, claiming that it had siphoned off the suppliers' money into offshore companies.