FEMSA Cerveza, a subsidiary of Fomento Economico Mexicano, announced on January 2, that it will increase beer prices in Mexico beginning on January first. Similar to previous years, the weighted average price increase will be differentiated by region, point of sale, brand and presentation. The amount of the increase is expected to be in-line with Mexico's inflation for 2007 and full roll-out of the price increase is expected to be complete by mid-February.

The price increase will enable FEMSA Cerveza to compensate for Mexico's inflation and for higher costs in raw materials, particularly aluminum, barley and glass bottles, which have generated cost pressure since 2006.

Due to its information technology platform, FEMSA Cerveza is able to manage differentiated pricing by region, distribution channel, brand and product presentation.

FEMSA is the leading beverage company in Latin America. It controls an integrated beverage platform that comprises Coca-Cola FEMSA, the largest Coca-Cola bottler in the region; FEMSA Cerveza, one of the leading brewers in Mexico and important beer exporter to the United States; and Oxxo, the largest and fastest growing convenience store chain in Mexico with over 4,000 stores.

Beer production in Russia could grow to 100 mil hl by 2009, according to Economic Development and Trade Ministry’s forecast for 2007-2010, Interfax announced on December 28.

Beer production is to grow to 95 million hl in 2006 compared to 91 million hl in 2005, the forecast says. Output is to grow to 98 million hl in 2007, 99 million hl in 2008 and 100 million hl in 2010.

Beer imports will increase to 2.8 million hl in 2009 from 2.5 million hl in 2005, the ministry said.

Beer production at Budejovicky Budvar, the last Czech state-owned brewery, will increase by five percent to 1.15 million hectoliters this year, the company's PR agency announced on December 28.

Sale on the domestic market will grow some three percent, while exports will be seven percent higher than last year.

"We are especially pleased with the results in the Czech Republic where the market for beer is stagnant. But we also treasure the significant increase in sale on our most important export markets, that is, in Germany, Great Britain, Slovakia and Austria," said Budvar trade director Robert Chrt.

"Many projects and changes launched in the past years have borne fruit this year. We of course want to maintain the growth trend in future. We are already implementing other planned projects that will help us achieve that," Chrt said.

Budejovicky Budvar, established in 1895, was transferred to state hands in 1946. Budvar is the third largest brewery in the country and one of leading domestic beer exporters. Roughly half of its annual production is exported to 50 countries.

Obviously farmers have second thoughts about their plantings of malting barley. For years the production of spring barley had been a financial disappointment to them, and the acreage had declined year after year.

According to analysts, new crop market prices leave farmers an ex-harvest price of EUR 150,-/160,- per ton, about 50% more than a year ago. The large demand for bio-energy grains and rapeseed and the excellent planting weather in autumn have led to a further expansion of winter grain acres and consequently a smaller open acreage for spring grains.