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Newsletter Summary

Currency rates
Equities of largest breweries
Market prices change trend
Top industry news
Brewery news
Barley news
More news
Theoretical malt prices
Malting barley prices
Table of the week
Graph of the week
On These Days
Agenda
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Average market prices
Change trend

July 30 - August 01, 2007
Crop 2006
2rs Barley €197.0-199.0
6rw Barley €170.0-172.0
2rs Malt €418.0-420.0 0.12%
6rw Malt €383.5-385.5 0.13%
Crop 2007
2rs Barley €256.0-258.0 4.90%
6rw Barley €230.0-232.0 6.45%
2rs Malt €470.5-472.5 3.17%
6rw Malt €438.0-440.0 4.15%

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. Average Malt Prices are theoretical and based FOB Antwerp being estimated on French malting . The changes are compared to last Newsletter's prices. Arrows indicate the direction of the change.


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Newsletter 30b, 2007

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Newsletter 30a, 2007

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Newsletter 29b, 2007

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Newsletter 29a, 2007

See this Newsletter!
Newsletter 28b, 2007



Market price evolutions

The evolution of market prices for barley and malt, which are periodically issued with e-malt.com newsletters are published on e-malt.com site in Market Prices section. Just click here!


Available market price evolutions


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Belgium Beer Production, Export and Consumption (1980 - 2006)

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World Barley Production (1985/86 - 2007/08f)

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USA Malt Exports by country of destination 2006 & 2005

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Netherlands Beer Production and Export (1990 - 2006)

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Australia Barley Production and Malting Barley Export



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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 31a
July 30 - August 01, 2007

Quote of the week

"The most important single ingredient in the formula of success is knowing how to get along with people."

Theodore Roosevelt


Currency Rates
Base Currency: Euro, EUR
on 01-August-2007

1 EUR = 1.3705 USD
1 EUR = 0.6748 GBP
1 EUR = 1.4589 CAD
1 EUR = 1.5961 AUD
1 EUR = 163.191 JPY
1 EUR = 2.5717 BRL
1 EUR = 35.0134 RUB
1 EUR = 10.3899 CNY
Base Currency: US Dollar
on 01-August-2007

1 USD = 0.7297 EUR
1 USD = 0.4924 GBP
1 USD = 1.0646 CAD
1 USD = 1.1646 AUD
1 USD = 119.08 JPY
1 USD = 1.8765 BRL
1 USD = 25.5482 RUB
1 USD = 7.5812 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
UK: SABMiller announces 17% increase in lager beer sales on strong European growth... Click here

Mexico: FEMSA reports revenue growth of 7% in 2Q 2007... Click here

Europe: Baltic Beverages Holding AB announces 37.1% net sales growth in H1 2007... Click here

Canada: Molson to shut Edmonton brewery, cut 136 jobs... Click here

Czech Republic: New segments, export, hot weather boost beer sales... Click here

Canada: Russell Breweries announces completion of private placement to acquire Fort Garry Brewing Company... Click here

Belgium: Federation of Belgian drinks retailers attacks Inbev... Click here

Ukraine: Barley prices boosted on the domestic market... Click here

Australia: ABB shareholders voted to redeem their shares... Click here

Canada: Court upholds Canada Wheat Board barley monopoly... Click here

More News
Philippines: SEC recognizes San Miguel Brewery Inc. as separate from San Miguel Corp. in preparation for public listing ... More Info

Australia: Tax on beer to rise slightly ... More Info

UK: SABMiller offers to buy remaining shares of Panamanian units ... More Info

UK: Lack of sun hits Scots winter barley yields ... More Info

Romania: STK Emergent buys 1.7m-euro stake in Bermas ... More Info

USA: Aladdin Beverage to distribute Chilean beer ... More Info

USA: Pittsburgh Brewing buyer wants more time ... More Info

Australia: Lion Nathan affirms outlook, warns of the effect of commodity prices ... More Info

Europe: US craft beer sales grow in Europe ... More Info

Denmark: Carlsberg shares up on SABMiller growth ... More Info

Netherlands: Amsterdam shares slightly higher with Heineken in the lead ... More Info

USA: Americans prefer beer over wine ... More Info

China: Farmers ... More Info

USA: Miller says Chill brew having successful debut ... More Info

Japan: Kirin to build pilot ethanol plant using spent malt ... More Info

China: 275 Gallons of beer consumed every second in China in 2006 ... More Info



Brewery News
UK: SABMiller announces 17% increase in lager beer sales on strong European growth

At the Annual General Meeting of SABMiller plc, Graham Mackay, chief executive of SABMiller, commented on the group's performance for the three months ended 30 June 2007, according to company’s press release, July 31. The calculation of the organic growth rates included below excludes volumes for acquired businesses for the first 12 months after an acquisition.

Mr Mackay said: "The group has made a strong start to the year, recording 17% growth in lager volumes, with organic growth of 13%, and achieved a good financial performance in the first quarter, in which revenue growth was partially offset by higher input costs and increased investment across the business.

"In Latin America, lager volumes for the quarter rose by 12%. Strong volume performances in Colombia and Peru reflect continuing favourable economic conditions and the ongoing impact of our initiatives to rejuvenate the beer category. These initiatives include the introduction of new containers and brands and increased investment in marketing as well as in merchandising. In Colombia, our biggest brand, Aguila, has been relaunched successfully in the quarter and we are restructuring our route to market. In Peru, volumes of our leading brand, Cristal, remain strong following the recent packaging changes and have led to ...
More Info


Mexico: FEMSA reports revenue growth of 7% in 2Q 2007

Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA") announced its operational and financial results for the second quarter of 2007, in a press release, July 27.

Consolidated total revenues increased 7.4%. All operating units contributed to this top-line growth.

FEMSA Cerveza total revenues increased 2.7%; Mexico sales volume increased 3.2%, Brazil sales volume increased 8.1% and export sales volume increased 27.1%.
Income from operations decreased 16.8%, however our full-year outlook is still expected to be in-line with 2006 levels.

"The trends continue to improve gradually across our businesses after a rocky start to the year. At FEMSA Cerveza we are setting the conditions for a stronger second half of the year as the variables that drive our business, internal and external, gradually move in the right direction. Most importantly and beyond any short-term results, as we continue to execute our strategy and strengthen our competitive position in all our businesses, we are putting FEMSA in a position to pursue sustainable profitable growth, across operations and across territories", commented José Antonio Fernández, Chairman and CEO of FEMSA.

About FEMSA:

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 ...
More Info


Europe: Baltic Beverages Holding AB announces 37.1% net sales growth in H1 2007

Performance in the first half of 2007 has been very strong with net sales growth of 37.1% to €1317m and operating profit growth of 47.9% to €295M, according to Scottish & Newcastle’s press release, August 1. Operating margin growth of 170bps to 22.4% reflects continued operational leverage, positive mix effect and the final $20m of the previously guided $100m of integration benefits. Furthermore, marketing spend is skewed towards the second half of the year. This was partly offset by the impact of rising input costs and distribution costs, particularly in the second quarter. This will continue to be challenging going forward. The creation of the newly integrated Baltika, with its unrivalled brand portfolio, has been key to accelerating growth momentum in Russia.

RUSSIA

In Russia, the beer market grew by 22.7% during the first half of the year. The market benefited from unseasonably mild weather, particularly in the first quarter, as well as the continuing positive shift towards beer fuelled by rising disposable incomes and some lasting impact from the supply disruption in wine and spirits in the second half of 2006.

Baltika Breweries’ volume growth was ahead of the market at 30.8% extending its market leadership with 37.6% share, an improvement of ...
More Info


Canada: Molson to shut Edmonton brewery, cut 136 jobs

Molson Coors Brewing Co. said on Tuesday it will close its Edmonton, Alberta, brewery, resulting in the loss of 136 jobs and a $37 million charge to the company, Reuters reported July 31.

Molson Coors, which brews Molson Canadian and Coors Light, said it also expects costs ranging between $10 million and $12 million stemming from the settlement of a pension plan and the depreciation of certain brewery assets.

The Edmonton brewery produced less than 10 percent of Molson Canada's annual volume, according to a filing.

The company expects to transfer the brewery's operations to other Canadian plants in the fourth quarter, a transition that should be complete by the first quarter of 2008.

Union officials said they were disappointed and frustrated with the move, arguing the Edmonton facility was profitable. The 102 Canadian Auto Workers members have been on strike and locked out since the end of May in a dispute over wages, pensions and work rules.

"The Edmonton brewery is of world-class caliber and has won many awards for productivity, cost reduction, quality control and health and safety," Todd Romanow, CAW's national representative, said in a statement. "None of this was taken into consideration by Molson Coors."

The company also said it cannot reasonably ...
More Info


Czech Republic: New segments, export, hot weather boost beer sales

If it wasn’t for export and the consumption of beer by foreign visitors, the Czech Republic might have lost its position as the country with the world’s highest per capita beer consumption, at about 158.1 hectoliters, Czech Business Weekly reported July 30.

The country’s breweries exported about 18 percent of the overall beer output last year, an unusually high figure among leading beer countries, as the beverage is normally consumed in its country of origin, the Czech Beer and Malt Association (ČSPAS) said. “Beer export is globally growing by 6 percent, but the Czech Republic has a double-digit growth. It’s a miracle that we’re doing so well,” Jan Veselý, ČSPAS’ executive director told CBW earlier. Last year, breweries exported a record-high 3.53 million hectoliters, 14 per cent more than in 2005; and overall production increased by 3.8 percent to a record-high 19.79 million hecto-liters over the same period.

The country has 48 breweries and nearly 60 mini-breweries, with the market leaders maintaining their positions for a number of years. The Czech Republic’s top three breweries are Plzeň, West Bohemia-based Plzeň-ský Prazdroj, followed by Prague-based Pivovary Staropramen, and České Budě-jovice, South Bohemia-based Budějo-vický Budvar, according to ČSPAS, and these are ...
More Info


Canada: Russell Breweries announces completion of private placement to acquire Fort Garry Brewing Company

Russell Breweries Inc. is pleased to announce it has completed a $3,176,500 brokered private placement, in a press release, July 30. The Company has issued 5,294,166 Units at a price of $0.60 per Unit, with each Unit consisting of one common share and one non-transferable common share purchase Warrant. Each whole Warrant entitles the holder to purchase one additional share of the company at a price of $0.75 for a period of one year from the completion of the financing subject to an early expiry provision that once resale restrictions on the Shares having expired and upon the Issuer’s shares trading at or above a weighted average trading price of $1.00 for 15 consecutive days the Issuer may give notice that the Warrants will expire 30 days from the date of providing such notice.

The proceeds will be used for the acquisition of Fort Garry Brewing Company Ltd., assuming that the shareholders approve the transaction and the balance of funds will be used for the purchase of capital equipment and for general working capital.

The Units were sold by a syndicate consisting of Bolder Investment Partners, Ltd., Canaccord Capital Corporation and MGI Securities Inc., and other selling group members to ...
More Info


Belgium: Federation of Belgian drinks retailers attacks Inbev

The federation of Belgian drinks retailers (FeBed) says Inbev's pricing policy, which includes large discounts for supermarkets but not for individual retailers, is unfair and distorts competition in the sector, financial daily De Tijd reports, according to AFX News Limited, July 30.

FeBed will discuss the issue with the brewer in mid-August in the hope of convincing the brewer to change its pricing policy, but is considering filing a complaint with the Belgian competition authorities if the talks do not lead to adjusted prices.

Inbev denies that is is planning to hold talks with FeBed in two weeks time, but says it is 'aware of their complaints'.

The brewer rejects the charges as a spokesperson for the company told De Tijd: 'Our discount policy is legally sound'.

Barley News
Ukraine: Barley prices boosted on the domestic market

Significant shortage of crop and small quantity of offers on the domestic market caused boosting of barley prices, AgriMarket reported July 30.

According to the specialists of IA "APK-Inform", barley holders that have finance possibility and conditions for long-term storage, considering domestic buyers' and export-oriented companies' interests towards purchases, slow down the sales. Most buyers considering the high level of starting prices and supposing for their further increase plan to start sales in the maximal profitable for them price period.

According to the operative data, separate offers of barley were at 900-1050 UAH/t level on seller's ex-elevator terms.

Many processing plants considering high selling prices, increase demand prices to 800-950 UAH/t on ex-elevator terms.

At the same time, export-oriented companies, counting on cancellation of ban for grains export from October 1, started accumulating barley volumes. Consequently, exporters' purchasing prices were slightly low as compared to fixed recently. Companies declared their interest towards purchases, accumulating grains on their linear elevators at 850-1030 UAH/t.

Let us remind you that Ukrainian Government by its decree of No 844 from June 20, 2007, banned starting from July 1, 2007 export of wheat, rye, barley, maize from the country, providing quotas for export of 3.000 tons ...
More Info


Australia: ABB shareholders voted to redeem their shares

ABB Grain Ltd A-class (grower) shareholders voted to redeem their shares, enabling the Australian agribusiness to adopt a single-class of shareholding, according to ABB’s press release, July 31.

ABB chairman, Perry Gunner, said the result was a significant day for the company and its stakeholders.

Mr Gunner said that growers in the majority had seen the merit in the company’s move to a single, ordinary-class of shareholding and the longer-term benefits that would bring for all shareholders.

“Firstly, I thank growers who voted to redeem their A-class shares, so that we could become a company with a single-share structure, and so shareholders could endorse a new constitution that ensures ongoing grower representation on the ABB Board,” he said.

“But I also want to assure all growers that while ABB has changed its share structure, our commitment to growers remains strong.

“ABB has grown in the past 68 years through the support of growers and we look forward to building on these relationships. We aim to continue growing and prospering and growers are very much a part of our plans.”

Mr Gunner said as ABB continued to diversify, the company would be offering growers the opportunity to use its grain marketing products, store their grain, buy fertiliser, ...
More Info


Canada: Court upholds Canada Wheat Board barley monopoly

The federal government did not have the authority to regulate an end to the Canadian Wheat Board's monopoly on barley sales to maltsters and export markets, a Federal Court judge ruled, according to Reuters, July 31.

Hours before it was slated to take effect, Justice Dolores Hansen overturned a regulation that would have opened the market on Wednesday, allowing farmers to sell barley either through the CWB or directly to other buyers.

Hansen sided with the CWB, a group of farmers and two provincial governments, which had challenged the regulation on the grounds that the federal cabinet had overstepped its powers by making the change.

"The power to include barley is delegated to the Governor in Council (federal cabinet), but the power to exclude is reserved to Parliament," Hansen said in a written decision.

The farmer-run CWB has said it would not have been able to compete with grain companies for barley in an open market because it doesn't own grain handling facilities.

The CWB sold 2.5 million tons of barley worth almost C$400 million ($373.8 million) in the year through July 31, 2006. That's about 11 percent of its revenue, which comes largely from wheat sales.

On average, Canada is the world's fourth-largest barley ...
More Info


Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.3705 August 01, 2007 
 Crop year   2006   2007 
 Parity   FOB Creil   FOB Creil 
 Position   July 2006   July 2007 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  200.00  274.50  259.00  355.00 
2RS  Prestige  199.00  273.00  258.00  353.50 
2RS  Cellar  198.00  271.50  257.00  352.50 
2RS  Sebastien  197.00  270.00  256.00  351.00 
2RS  Astoria  197.00  270.00  256.00  351.00 
2RS  Cork   197.00  270.00  256.00  351.00 
6RW  Esterel   171.00  234.50  231.00  316.50 

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

Theoretical malt prices.
  EURO = USD 1.3705 August 01, 2007 
Crop year  2006 
Parity  FOB Antwerp 
Position  Aug 2007-Sept 2007 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  421.50  577.50  444.00  608.50  438.00  600.00  448.50  614.50 
2RS  Prestige  420.00  575.50  443.00  607.00  436.50  598.50  447.50  613.00 
2RS  Cellar  419.00  574.00  441.50  605.50  435.50  596.50  446.00  611.50 
2RS  Sebastien  417.50  572.50  440.50  603.50  434.50  595.00  445.00  609.50 
2RS  Astoria  417.50  572.50  440.50  603.50  434.50  595.00  445.00  609.50 
2RS  Cork   417.50  572.50  440.50  603.50  434.50  595.00  445.00  609.50 
2RS   Average price  419.00  574.00  441.50  605.50  435.50  596.50  446.00  611.50 
6RW  Esterel   384.50  528.50  408.50  559.50  402.50  551.50  413.00  565.50 
Asia Malt 70/30  409.00  560.50  431.50  591.50  425.50  583.00  436.00  597.50 
**  Asia Malt 50/50  402.50  551.50  425.00  582.50  419.00  574.00  429.50  588.50 


  EURO = USD 1.3705 August 01 , 2007 
Crop year  2007 
Parity  FOB Antwerp 
Position  Oct 2007-Sept 2008 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  474.50  650.00  497.00  681.00  491.00  672.50  501.50  687.00 
2RS  Prestige  473.00  648.50  495.50  679.50  489.50  671.00  500.00  685.50 
2RS  Cellar  471.50  646.50  494.50  677.50  488.50  669.50  499.00  683.50 
2RS  Sebastien  470.50  645.00  493.50  676.00  487.00  667.50  497.50  682.00 
2RS  Astoria  470.50  645.00  493.50  676.00  487.00  667.50  497.50  682.00 
2RS  Cork   470.50  645.00  493.50  676.00  487.00  667.50  497.50  682.00 
2RS   Average price  471.50  646.50  494.50  677.50  488.50  669.50  499.00  683.50 
6RW  Esterel   439.00  602.50  462.50  634.00  456.50  625.50  467.00  640.00 
Asia Malt 70/30  462.00  633.50  485.00  664.50  478.50  656.00  489.50  670.50 
**  Asia Malt 50/50  456.00  624.50  478.50  656.00  472.50  647.50  483.00  661.50 

NB: Prices published are theoretical malt prices including financial cost, THC (for bulk and bags container) and all administrative costs. This prices may fluctuate according to the quantity per delivery and technical specifications.

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

Table of the week

EU Malting Barley Supply and Demand Estimate 2007/2008

(in 1000 tonnes)  Malt Capacity on 01/10/2007  Estimated Barley Malt Production  Barley Demand  Spring Malting Barley Supply  Winter Malting Barley Supply  Net Plus/Minus Total 
 Northwest               
 Belgium  744  750  940  20  920 
 France  1260  1200  1500  1480  1520  1500 
 Germany  1990  1850  2300  1240  60  1000 
 Ireland  128  130  160  160   
 Netherlands  330  330  410  150  260 
 United Kingdom  1473  1450  1800  1350  600  150 
 TOTAL Northwest  5925  5710  7110  4400  2180  530 
 Baltic             
 Denmark  277  280  350  1050  700 
 Finland  172  175  220  350  130 
 Lithuania  82  80  100  100   
 Poland  305  320  400  200  200 
 Sweden  200  210  260  360  100 
 TOTAL Baltic  1036  1065  1330  2060  730 
 Southeast               
 Austria  150  150  190  190   
 Bulgaria  75  60  75  25  50 
 Czech Republic  515  500  625  600  25 
 Hungary  133  125  155  50  50  55 
 Romania  125  100  125  25  25  75 
 Slovakia  266  240  300  250  50 
 TOTAL Southeast  1264  1175  1470  1115  100  255 
 Mediteranian               
 Greece  45  45  55  55 
 Italy  70  70  90  45  45 
 Portugal  86  86  110  110 
 Spain  442  442  550  660  110 
 TOTAL Mediteranian  643  643  805  660  45  100 
 NET TOTAL 8868  8593  10715  8235  2325  155 
Newsletter SummaryTop

Graph of the week



These Days in Business History
30 July
1863 Henry Ford, car manufacturer was born
1897 German chemist named Felix Hoffman synthesizes a stable form of acetylsalicylic acid in a laboratory in Berlin. The head of Bayer’s pharmacological institute, Heinrich Dreser, soon names the product “aspirin,” and it becomes the best-selling drug of all time.
1928 George Eastman demonstrates 1st color movie

31 July
1790 1st US patent granted, to Samuel Hopkins for a potash process
1809 1st practical US railroad track (wooden, for horse-drawn cars), Phila
1925 Unemployment Insurance Act passed in England

01 August
1930 Clarence Birdseye is awarded a U.S. patent for the invention of packaged frozen food.
1950 Steve Wozniak, future co-inventor of the Apple computer, is born.
1981 Pres. Ronald Reagan signs into law the Economic Recovery Tax Act of 1981, the biggest tax cut in American history, which streamlines the Federal income tax brackets, lowers the top rate to 36%, and creates the universally-deductible Individual Retirement Account.
Agenda
August 2007:
Qingdao International Beer Festival, China
International Berlin Beer Festival
Great British Beer Festival
1st International Brewers Symposium Hop Flavor and Aroma
Great Japan Beer Festival 2007 in Osaka
Brew Drinks China 2007
The 13th Australian Barley Technical Symposium, Australia


September 2007:
Belgian Beer Weekend
Great Canadian Beer Festival
Great British Beer Festival
WBA Associate in Brewing Technology Program in Chicago
WBA International Diploma in Brewing Technology Program Chicago & Munich Campuses
WorldFood Moscow


October 2007:
The International Brewing Convention 2007 , UK
Newport International Oktoberfest, USA
World Beer Festival Durham , USA
Tasting Australia
2007 Master Brewers Association of the Americas Convention


November 2007:
The International Hop Growers' Convention (IHGC) Meetings, Germany
International convention for the drink technology and PET industry, India

More events are available on site e-malt.com

Copyright © E-Malt s.a. 2007