Scottish & Newcastle PLC is confident it can win full control of Baltic Beverages Holding from Carlsberg A/S at arbitration and introduce a new minority partner into the business, but stressed once again that returning to the status quo is not an option, Hemscott reported November 23.

Speaking during a conference call after the group unveiled plans for a new streamlined structure, chief executive John Dunsmore said: 'It's clear that Carlsberg's actions have split the partnership, we intend to take control of BBH and we're prepared to introduce a minority partner. To be absolutely clear, a return to a 50/50 arrangement with Carlsberg is not an option.'

S&N reiterated its position that the improved 750 pence a share proposal from the Carlsberg and Heineken NV consortium fails to reflect the true value of the Russian-focused joint venture. Based on the valuations of the other parts of the business, it said the proposal's implied equity value for S&N's 50 pct stake in BBH is 3.2 bln stg, with the implied enterprise value, including debt and minority shareholdings, 3.94 bln, which Dunsmore said was too low.

S&N said 'shareholder value maximisation is paramount', with Dunsmore saying shareholders will see a crystallisation of value through BBH, ...More Info

SABMiller will invest $100 million every year for the next five years and set up four greenfield breweries in India as part of its plans to consolidate its operations in the country, The Hindu Business Line reported November 22.

“We will add about 9 million cases every year and hence need to expand our existing capacities as well as set up newer ones,” the SABMiller India Managing Director, Mr Jean Marc Delpon de Vaux, told Business Line.

SAB Miller plans to set up between three and four greenfield breweries including one each in Karnataka and Haryana during the next 3-4 years, he said. The beer maker, which already has 10 breweries in the country, is also planning to launch more international brands in the country and look at launching local brands too. Market share

SABMiller with a share of 36 per cent of the market is the second largest beer maker in India. The new investments does not include $150 million, which the company has earmarked for increasing capacities as well as modernisation of its plants during the current fiscal (2007-08). SAB Miller has invested about $650 million in its Indian operations during the last five years. Its current capacity is about 57.6 million ...More Info

Breweries in the Czech Republic raised beer production by 1.6 percent year-on-year to 15.4 million hectolitres in January-September, according to the Association of Breweries and Malt Houses, CTK reported November 21.

Exports grew by 4 percent to 2.796 million hectolitres. Domestic sales increased as well.

However, the growth in output slowed compared with the 4 percent increase in H1. The Association's executive director Jan Vesely is convinced, though, that in the full year, the Czech beer industry will see a record 20 million hectolitre output.

Beer production was pulled mainly by exports in the last few years, but the growth pace has slowed.

"After several years of two-digit growth, it will be not as simple to raise the output further," Vesely noted.

Most Czech beer exports go to Germany. Further export territories are Slovakia, Britain and Russia where sale is growing notably, and next is Sweden.

The one percent growth in sales on the domestic market - to 12.6 million hectolitres is quite surprising, Vesely said, adding that it can partly be ascribed to foreign tourists.

Popularity of non-alcoholic beer is growing as well. Its output jumped by 57 percent to 390,000 hectolitres in Q1-3.

Most of the output is draught beer, whose production, however, dropped by 342,000 ...More Info

Efes Breweries International N.V. announced its consolidated financial results for the nine months ended 30 September 2007 prepared in accordance with IFRS, in a press release, November 22.

“We are pleased to complete the nine month period of 2007 with a strong top line growth, exceeding FY2006 revenues, driven especially by the strong performance in Russia, outstanding growth in Kazakhstan and remarkable growth in other countries” commented Alejandro Jimenez, CEO and Chairman of the Board of Management of Efes Breweries International (“EBI”). “We are happy to deliver this strong performance albeit the start of a very challenging raw material cost inflation period for the global markets.”

EBI’s consolidated sales volume increased by 13.9% in YTD 3Q2007 over the comparable period of previous year and reached 10.4 million hectoliters (“mhl”). However the like-for-like sales volume growth in the nine months period of 2007 was 18.0% and is calculated by;

1) including the sales volume in the first two months of 2006 of the Krasny Vostok Brewing Group (“KV Group”), which EBI acquired in February 2006 and by

2) excluding the sales volume of Interbrew Efes Brewery (“Efes Romania”), EBI’s 50% operating subsidiary in Romania, in which EBI disposed its shareholding in August 2006, from YTD 3Q2006 results.

On ...More Info

Lion Nathan Limited (Lion Nathan) has exceeded guidance with a solid result, lifting operating net profit after tax by 3.8% to $267.2 million for the year to 30 September 2007, according to company’s press release, November 21.

After the impact of individually significant items (ISIs), reported NPAT increased 24.4% to $282.1 million. Group net sales revenue grew strongly, increasing 6.6% to $1.97 billion. Operating EBIT grew 4.1% to $472.4 million, while reported EBIT increased 10.4% to $452.7 million.

Lion Nathan CEO Rob Murray said: “We have continued to grow earnings and deliver strong cash flow while making a significant investment in the long term health of our business. We have made real progress in building people capability and investing in our brands and our production assets to achieve higher sustainable long term earnings growth from the 2009 financial year”.

“This result reflects a solid performance from all our business units. The strong revenue growth reflects successful brand and NPD1 investment in our core businesses, along with continued mix shift to national and premium brands,” Mr Murray continued.

Profit growth was achieved despite higher aluminium prices, higher barley costs due to the drought in Australia in addition to further investment to build a presence in the spirits ...More Info

Belarusian president issued a resolution by which all the malt imports will be controlled by state authority of food control Belgospischeprom, according to Reuters, November 20. All the import requests for barley malt and no roasted malt have to pass through this organization.

The CWB released its latest Pool Return Outlook (PRO) for the 2007-08 crop year and the first PRO of the year for feed barley in Pool B, which runs from Feb. 1 to July 31, 2008, according to CWB’s press release, November 22. The PRO for Pool A feed barley is unchanged from last month. Two-row malting barley is $3 lower, while six-row is unchanged.

PRO commentary 2007-08 crop year

Feed barley

Pool A - The small pool size of Pool A reflects limited delivery opportunities due to logistical capacity constraints in the Pool A delivery window. The feed-grain situation in Europe has stabilized as corn from Latin America and sorghum from the U.S. have reached the market. Corn continues to provide a price floor for feed barley; however, the corn-wheat spread has narrowed over the past month.

Pool B - The feed barley market is expected to remain highly volatile. Saudi Arabia has uncovered demand but, given high ocean-freight rates, Canada has a significant freight disadvantage for shipping to Saudi Arabia relative to Europe. The tightness of the global feed grain supply situation should ease as a record-sized U.S. corn crop will be available for export and new-crop corn will be available from ...More Info

Australian barley growers who supported ABB’s pre-harvest commitment pools have begun receiving record first advances, according to ABB’s press release, November 22.

ABB’s managing director, Michael Iwaniw, said that unprecedented, recent international grain prices had meant ABB was able to provide record advances for its Select pools against very attractive estimated returns.

“The advances* will be $370/tonne for malting 1 barley and $350/tonne for feed 1 barley for growers who supported ABB’s Select 1 pool on offer from late August until October 8; $325/t for malting 1 and $300/t for feed 1 in the Select 2 pool and $325/t and $262/t for the Select 3 pool,” Mr Iwaniw said.

“These harvest advances are extremely high and they reflect the confidence ABB has in achieving the current estimated returns.

“ABB was pleased with the support for these pools which demonstrate ABB’s willingness to provide options that remain popular and relevant to the majority of local barley growers.”

ABB Select was opened as a pre-harvest commitment option for growers who preferred the flexibility and convenience of ABB’s various pool options. This option allowed growers who prefer to market their grain via pools, the opportunity to take part in the buoyant domestic barley market that existed just before ...More Info

As to State Statistics Committee, within this year January-October agricultural companies have reduced barley sales to 2.076 Mt, down 1.845 Mt (- 47.1%) against last year same period, Agro Perspectiva reported November 23.

As for barley sales structure, companies have sold 4.2% total barley to processors; 2.7% barley were given to population (incl. public catering system) on account of salaries, 7.5% – to shareholders on account of land plots/property shares rental payment. As to Committee, 10.6% of total barley were sold on markets, while 75% were sold off through other trade channels.

In last year Jan-Oct agrarians had sold 3.921 Mt of barley.

As to Agro Perspective earlier report, within this year Jan-Sept agricultural companies had shortened barley sales to 1.916 Mt, down 1.51 MT (- 44%) as of last year Jan-Sept.

With 9.5 Mt, 2007 barley crop is 9% down from that of 2006 and 10% down of five years average, La Depeche published November 21.

A new decrease in malting barley prices is registered. The market is so narrow that more and more people already don’t pay much attention to this product. Nevertheless, some deals have been made with Scandinavian barley.