SABMiller Plc, the world's third- largest brewer, agreed to buy Royal Grolsch NV for 816 million euros ($1.2 billion), according to SABMiller’s press release, November 19.

• SABMiller intends to make an offer of €48.25 per Share for 100% of the outstanding Shares of Grolsch. This Offer represents an 84.3% premium to Grolsch’s average closing share price over the last month and a total consideration of €816 million;

• Grolsch is an iconic Dutch brand whose rich Northern European heritage and premium positioning will complement and further build SABMiller’s existing international brand portfolio;

• SABMiller sees significant additional potential for the Grolsch brand across Africa and Latin America, where the premium segment is still in its infancy, and in the more developed markets of Central and Eastern Europe;

• SABMiller anticipates that production volumes at the modern Enschede brewery will increase following the transaction;

• The Management and Supervisory Boards of Grolsch unanimously support the intended Offer although they did not seek a takeover approach;

• An irrevocable undertaking has been entered into by Stichting NBC on behalf of certain shareholders (the “Committed Shareholders”) and SABMiller to tender the Shares held by the Committed Shareholders, representing some 37% of the outstanding Shares; and

• The acquisition will be marked by the establishment of an ...More Info

China Resources Enterprise Ltd, the country's largest brewer of beer, posted a 21 percent rise in third-quarter profit thanks to strong retail and beverage turnover driven by its booming premium beer brand, Reuters reported November 19.

The Beijing-backed firm -- which sold its petroleum business this year to focus on the consumer segment -- makes fabrics, operates supermarkets, processes meat, produces beer with SABMiller Plc and owns slices of container ports across the world's fourth-largest economy.

Beverage-to-ports conglomerate China Resources posted a net profit of HK$765 million (US$98.1 million) for the three months ended September, up from HK$629.78 million in the same period last year.

Beer sales volumes jumped nearly 34 percent in the first nine months, led by a 74 percent leap in sales of its premium "SNOW" brand, which competes with offerings from the likes of Tsingtao Brewery and Yanjing Brewery.

"The increase in turnover and sales volume was mainly driven by successful brand integration through initiatives in the "SNOW" promotion and market distribution," managing director Chen Shulin said in a statement. Consolidation is brewing in China's fragmented beer market, where a 640-ml bottle can cost just 12 U.S. cents.

The market -- the world's largest by volume -- grew more than 16 ...More Info

Lion Nathan has chosen a site in the industrial suburb of East Tamaki for its new $NZ250 million ($A214.92 million) Auckland brewery, The Sidney Morning Herald published November 21.

The Sydney-based company, in which Japanese brewery Kirin Holdings has a 46.1 percent stake, said it had secured the site - subject to approval by the Overseas Investment Office.

The new Auckland facility was expected to be up and running in about four years, Lion said.

In July, Lion announced it had entered into an agreement to sell its Auckland brewery site in Newmarket, nowadays a swanky upmarket area of the city, to AMP Capital Investors for $NZ162 million ($A139.27 million).

Most of the sale price will be payable when Lion leaves the site in about four years, but $NZ50 million ($A42.98 million) would be realised this financial year.

A new manufacturing and warehousing facility to be built in Auckland for about $NZ250 million ($A214.92 million) would better align production and its supply chain with market demand.

Beer sales have increased 2.5% in 2006/2007, according to Swiss TXT, November 19. The per capita consumption has grown 0.7 liters up to 57.1 liters. The beer production increased 1.5% while beer imports surged 7.1%.

The exports (1.6 % of domestic production) have also grown 22.23 thousand hectoliters or 66.2%, according to Swiss Brewers Association. The market share of imports has been of 19.1% (18.3% last year).

Top Mexican brewer Modelo, maker of the popular Corona beer, said it signed a deal with Molson Coors Brewing Co to expand a joint venture in Canada, according to Reuters, November 20.

Modelo said Molson Coors will import, distribute and sell Modelo's beers in all of Canada's provinces from January 2008. Currently, Molson Coors only sells Modelo brands in Ontario, Quebec and the Atlantic provinces of Canada.

Modelo is half owned by Anheuser Busch Cos Inc, the U.S. beer giant.

Carlsberg Brewery Malaysia Bhd said third-quarter net profit improved marginally to 27 million ringgit from 24 million ringgit in the same period last year as the company benefited from a restructuring program to optimize inventory levels and working capital, Thomson Financial reported November 21.

But sales fell 4.7 percent to 245 milion ringgit from 257 million ringgit the year before.

Earnings per share grew to 8.71 sen against 7.97 sen.

It did not declare a dividend.

For the nine months to September, net profit dropped to 54 million ringgit against 80 million ringgit the previous year.

Sales also declined to 694 million ringgit from 751 million ringgit.

'The decline in (the nine-month) profit was mainly attributable to the weak first-half performance due to lower domestic sales and higher costs,'' the company said in notes accompanying the results.

Carlsberg said it expects a better fourth-quarter this year over last year.

It also sees improving sales as the Malaysian government has decided not to increase duties for beer and stout products for next year.

(1 US dollar = 3.37 ringgit)

EU malt export licence fixations of 616.000 tons during July 1 – October 30 run exactly at the pace of last year’s bookings, analysts recently reported. As Bulgaria and Romania are now domestic instead of export markets, this year’s figure shows a slight improvement. If the past pace of export shipments is maintained, the year’s figure would be 1.85 Mill. tons vs. 1.75 last year. During 2006/07 exports dropped off in the latter half of the campaign.

India's barley prices have soared on growing demand from beer makers in India, besides higher export orders, analysts, traders and beermakers said, according to Reuters, November 20.

"While export demand remained strong, an interest from domestic buyers made barley prices soar," said Rajesh Gupta, a trader based in Jaipur, a major barley trading hub.

Since July 10, India's spot barley prices have risen about 62 percent to 1,238 rupees per 100 kg on November 19, while benchmark December futures gained 42.5 percent to 1,211 rupees.

"Growing beer consumption in India is putting the focus on barley, its raw material," said a cereal analyst with Motilal Oswal Commodities Broker Pvt Ltd.

India, which produced 1.30 million tonnes of barley in 2006/07, has targeted 2 million tonnes this year, farm ministry data showed.

"Barley is likely to cover more area this winter as growers will try to cash in on the strong demand and higher prices," said Manoj Gupta, a barley trader who is also director of Northern India Foodgrain Association .

Barley consumption by beer companies grew 27 percent on yearin 2006/07, said C. Prabhu, associate director-strategic advisory and research, food and agribusiness, north and east, Rabo India Finance Ltd.

The Indian unit of UK-based brewer SABMiller has ...More Info

Graincorp's sudden closure of its new-season barley pool has sparked anger among growers who have not even had a chance to harvest yet, The Land reported November 21.

The decision to close the pool to protect it from falling international markets, is being held up by the pro-single desk lobby as a sign of things to come if the wheat market is deregulated.

The estimated returns from the 2007-08 No2 barley pool now being offered by GrainCorp is roughly $40/t below that of the No1 pool price, which closed last Friday before harvest had started in many areas of Victoria and South Australia.

In a special report to be published in The Land, NSW, on November 22, GrainCorp national barley pool manager, Adam Robinson, says it was decided to protect the equity of growers who had delivered, after the barley market fell by more than $50/tonne in three weeks.

UkrAgroConsult estimates the Ukrainian barley crop at 6.15 Mill. tons, analysts recently reported. The administration introduced a quota system for exports, which will allow exports of 400.000 tons till March 31. Exports under the earlier quota of 5000 tons since July resulted in negligible shipments to-date. So far the government has not granted licences against the announced quota; major delays are anticipated, before export shipments will commence.