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• Australia's ABB Grain acquires grain packing firm, Asia Pulse revealed on March 5. The sale included a $A3.85 million ($US2.88 million) cash payment and the issue of $A250,000 ...more info



• The new CEO of InterbrewAmBev has defended the merger against criticisms that the deal is overly complicated and clouds control ...more info



• Interbrew’s rating has been cut on the back of its merger with AmBev. ING said on March 4 that it had moved its rating on the Belgian brewer downwards ...more info



• Beer and bottling company Femsa bucked the stock market's negative trend, rising 2.20 % to 53.04 pesos on news that a 30 % stake in its beer operation ...more info



• USA: The latest print and radio advertising campaign from Molson USA informs beer drinkers that the barley used in its beer is not an aphrodisiac ...more info



• USA: Coors is prepared for a “challenging” first half of 2004, according to the company’s chief financial officer. Speaking to analysts in New York on March 3 ...more info



• USA: Coors Brewing Company, the US operating subsidiary of Adolph Coors Company, announced on March 4 Aspen Edge(TM), its super-premium, low-carb light lager, is available ...more info



• Denmark: Country’s brewing force, Carlsberg A/S, announced on 4 March 2004 about the organizational changes in Carlsberg ...more info



• Australia: The Board of Foster’s Group Limited (Foster’s) announced on March 3 the appointment of Mr Trevor O’Hoy as the next President and Chief Executive Officer of Foster’s ...more info



• Belgian brewing giant, Interbrew, announced on March 3 it realized solid organic growth of volumes and operating profit in 2003 ...more info

Brewery News

Danish brewing giant, Carlsberg A/S, announced on March 3 to the Copenhagen Stock Exchange about the approval of Carlsberg's acquisition of Orkla's shareholding in Carlsberg Breweries. According to Carlsberg A/S Orkla’s Corporate Assembly approved on March 3 that Carlsberg A/S acquires Orkla ASA’s 40 % shareholding in Carlsberg Breweries A/S. Completion of the transaction is anticipated to occur 8 March 2004. Following that date the partnership between Carlsberg A/S and Orkla ASA ends and thereafter Carlsberg A/S is the sole owner of Carlsberg Breweries’ share capital.

Mexican brewer and bottler Femsa, hoping to end wrangling over a U.S. distribution venture, said on March 4 it will seek to strike a deal with Belgium's Interbrew and Brazil's AmBev, which plan to form the world's biggest brewer, "Femsa is going to have to sit down with Interbrew and AmBev to see what we want," a Femsa source told Reuters, requesting to remain anonymous. Interbrew agreed on March 3 to buy a majority stake in AmBev in a 9.2 billion euro ($11.5 billion) deal to create the world's biggest brewer by volume. The new brewer, to be called InterbrewAmBev, will surpass U.S. rival Anheuser-Busch. Interbrew has a 30 percent stake in Femsa's beer unit, which brews Sol, Tecate and Dos Equis brands. Femsa has a similar stake in Interbrew's Labatt USA, which promotes and distributes both their beers in the United States. Femsa-Interbrew relations hit rocky ground when Interbrew acquired Becks beers in August 2001. The Belgian brewer wanted to merge its Labatt USA and Becks distribution networks in the United States to cut costs. Femsa blocked the merger with an injunction, saying it was not consulted...more info

Canada's Sleeman Breweries Ltd. said on March 4, that its fourth-quarter profits doubled on higher selling prices and an increase in core volumes. Guelph, Ontario Sleeman said it earned C$3.9 million ($2.9 million), or 24 Canadian cents a share, for the quarter ended Dec. 27, compared with C$2 million, or 12 Canadian cents a share, for the fourth quarter of 2002. It said it would spend between C$15 million and C$17 million to expand its breweries in three Canadian provinces and expects to name a company in the next month that will be able to import and distribute Sleeman brands in Britain. Three analysts surveyed by Reuters Research, a unit of Reuters Group PLC, had expected on average, a profit of 26 Canadian cents a share. Net revenue rose 29 percent to C$48.7 million in the quarter, partly on higher sales of Sapporo, a Japanese beer. Core volumes, which include Clear, Sleeman's new low-carbohydrate beer, grew 9 percent in the quarter, "We grew our core volumes by 9 percent while the industry was essentially flat at only 0.3 percent growth," said Sleeman's chief executive, John Sleeman. Sleeman is Canada's third-largest brewer, with a market share of 6 percent, although it trails well behind Labatt Brewery, a unit of Belgium's Interbrew and Molson Inc.. Sleeman shares rose as high as C$11.90, the highest level since mid 2002, before retreating to close at C$11.32, on the Toronto Stock Exchange, for a gain of 47 Canadian cents.

US beer giant, Anheuser-Busch, announced on March 4 that in a survey of 10,000 business leaders and securities analysts, Anheuser-Busch Cos. Inc. ranked first overall in quality of products and services among nearly 600 companies researched in FORTUNE magazine's 2004 “America's Most Admired Companies” listing. The company also placed first overall in the beverage industry. “We're honored that our peers in business have given us this recognition,” said Patrick Stokes, Anheuser-Busch president and chief executive officer. “The quality of our products and the service we provide to our customers is of paramount importance to us, and leading in this category shows that our commitment to excellence is paying off.” Anheuser-Busch ranked first in its industry in all eight categories: innovation, employee talent, use of corporate assets, social responsibility, quality of management, financial soundness, long-term investment and quality of products/services. Besides quality of products and services, the company ranked in the top 10 overall among nearly 600 companies in the areas of use of corporate assets, quality of management, financial soundness and long-term investment value...more info

Brazil, Sao Paulo: Voting shares in AmBev jumped 8% to close at 939.99 reaison March 3 following the announcement of the brewer's merger with Interbrew. But the company's preferred shares, which are more liquid but do not carry voting rights, fell nearly 20 % at one point before finishing a hefty 14.96 % lower at 647.99 reais, according to Reuters. Analysts attributed the drop to fears that minority shareholders will see their investment diluted by new shares that will be issued to Interbrew. "The market sees the new share issue as something bad for minority shareholders," said Sergio Goldman, head of equity research at Unibanco Asset Management in Sao Paulo. "But I think that reading may be wrong, because in the long term this is going to create synergies that will make up for the impact of issuing new shares." Speaking after the two companies announced the agreement, in which Belgium's Interbrew will buy a controlling stake in AmBev, equity strategist Marcelo Mesquita told reporters: "At first glance, (the deal) seems positive because there will be increased synergies and gains of scale. "There's also going to be money up front for AmBev, but just how much and how soon is not clear yet," he added...more info

Malt News

The East European market shows some life. Belarus has purchased malt from neighbouring countries, and is in the market for more. The Ukraine has also requested offers. In both countries there is a lack of good malting barley of crop 2003. Belarus has opened a tender for the purchase of 60,000 tonnes of malting barley. It is unlikely that the Ukraine will import barley, more likely malt. Russia is a regular importer of small quantities of malting barley, and has also passed bids for the purchase of malt. Buyers' price ideas are usually too low, as the new Russian trade maltster offers malt, produced from imported Danish barley, at prices, which cannot be matched by imported malt.

Barley News

Russia: Barley exports were 2.525 million tonnes in July/December 2003. The USDA estimates total exports for the grain year at 2.8 million tonnes. Average FCA prices in Russia have increased from US $ 121.50 at the end of 2003 to US $ 158.65 on February 16, of this year. Therefore the competitiveness of Russian barley is sharply reduced. Rumours are that the Russian government fears that stocks of all grains will be exhausted end May. Winter damage of new crop grains was definitely much less so far than a year ago, but in recent weeks there were significant variations in temperatures and levels of snowcover. Russia imported 140,000 tonnes of malting and feed (Kazakhstan) barley in July/December. A further demand of a few hundred thousand tons of malting barley is anticipated.

South Australian grain companies ABB Grain Ltd and AusBulk Ltd conceded on March 3 there was no chance they would ever join together, after failing for the third time to reach a merger agreement. Despite the benefits to both companies of a merger - including synergies of up to $10 million - they have been unable to agree on each other's company valuations. AusBulk chairman Kevin O'Driscoll said there were also cultural differences between the companies."I'm disappointed that our mutual shareholders are not going to see the benefits of those synergies and cost savings," Mr O'Driscoll said. "But I think the reality is that there are just very large cultural differences between the two organisations which became evident during negotiations, and I think that the chances of any future merger are dead and buried." Analysts had said the two companies would complement one another. ABB Grain's main activity is the marketing of grain, particularly barley, to countries around the world, while AusBulk specialises in grain storage. However ABB Grain and AusBulk had twice previously discussed mergers, and both times failed to come to an agreement. Mr O'Driscoll said AusBulk's focus now would be on listing on the Australian Stock Exchange in July 2004. He said there were no plans for AusBulk to merge with any other companies. "We will be looking for organic growth," he said...more info

Theoretical malt prices.

* - 70/30 = 70% Average two Rows Spring and 30% Six Rows Winter
** - 50/50 = 50% Average two Rows Spring and 50% Six Rows Winter

Theoretical malt prices for crop 2004 are available on site www.e-malt.com/MarketPrices

Malting barley prices. French barley prices. Nominal prices.

EURO = USD 1.2192 March 05, 2004
Crop year		2003		2004
Parity		FOB Creil		FOB Creil
Position		July 2003		July 2004
Type	Variety	EURO	USD	EURO	USD
2RS	Scarlett	129.00	157.50	129.00	157.50
2RS	Prestige/Cellar	128.00	156.50	128.00	156.50
2RS	Aspen	127.00	155.00	127.00	155.00
2RS	Optic	127.00	155.00	127.00	155.00
2RS	Astoria	126.00	154.00	126.00	154.00
2RS	Cork	126.00	154.00	126.00	154.00
6RW	Esterel	nq	nq	118.00	144.00

nq - Not quoted

Prices for Danish and UK malting barley are available on site www.e-malt.com/MarketPrices

Graph of the week

Agenda

March 2004: PIVEX - INTERNATIONAL BREWING & MALTING FAIR ; New York City Real Beer Festival; Real Ale Festival; The Night of Large Thirst; Zythos Beer Festival; International course - Malting and Brewing Science; ALIMENTARIA 2004; FOODEX Japan 2004; ANTAD 2004; FOOD & DRINK EXPO 2004; Forth Russian Conference on Non-alcoholic Beer; 2004 BIENNIAL CONVENTION; Beer Auction 2004, the international exhibition of beer, technology and equipment; China Drinktec 2004. China International Exhibition on Beverage and Brewing Processing Technology
April 2004: InterFood; INTERFOOD UZBEKISTAN /INTERFOODTECH 2004; INTERFOOD ST. PETERSBURG 2004; SIBFOODEXPO 2004; BEER. WINES & DRINKS International Beer; World Beer Cup; 2004 National Craft Brewers Conference; FOODASIA 2004; ASTANA FOOD 2004; INTERFOOD AZERBAIJAN/ INTERFOODTECH 2004; 43rd MBAA District Caribbean Convention; IFEX 2004; EXPOVIVIENDA 2004;
May 2004: EBC SYMPOSIUM 'FOOD SAFETY & TRACEABILITY'; CANADEAN'S 4th INTERNATIONAL BEER CONFERENCE; CITBUSMED 2004; PIVO, GASTRO, BAKERY / Bulgaria; ALCO + SOFT 2004 / Ukraine; FOOD & DRINKS/FOOD TECHNOLOGY 2004 / Moldova; Beer International Brewing Technology Exhibition / Russia;

More events are available on site e-malt.com

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