Kirin Holdings Co Ltd said its 2007 operating profit rose 4 percent as belt-tightening offset a steep rise in raw material costs, and it forecast 10 percent growth this year, according to Reuters, February 7.

Japan's beer market has been shrinking for more than a decade as the population ages and consumer tastes diversify. Volume sales have fallen more than 10 percent since peaking in 1994.

Japanese brewers are also grappling with higher costs for raw materials such as aluminium, malt and cardboard. To help offset those costs, Kirin and its competitors decided to raise beer prices for the first time in 18 years.

Kirin and its competitors have decided to raise the price of their beer in Japan this year -- the first such hike in 18 years.

The company, which closely trails Asahi Breweries in the Japanese beer market, said its operating profit came to 120.6 billion yen ($1.14 billion) in 2007, up from 116.4 billion yen the previous year.

Kirin, which makes "Ichiban-shibori" beer, forecast group operating profit of 133 billion yen for 2008. That compares with 124 billion yen in a poll of seven analysts by Reuters Estimates.

The company has stayed ahead of rivals in diversification, reducing its reliance on the ...More Info

InBev, the world's second-largest beer producer by volume, and U.S. Anheuser-Busch are in talks that could lead to a merger of the two, Belgian business magazine Trends said, according to Reuters February 7.

InBev, whose key brands are Stella Artois, Beck's, Brahma and Leffe, and Budweiser and Bud Light maker Anheuser-Busch have been the subject of consistent merger speculation over the past year.

Last week, the Wall Street Journal said talks between the brewing giants had become more serious and that a deal was possible this year.

Both brewers have repeatedly declined to comment.

Trends noted that InBev was not obliged by Belgian financial markets watchdog CBFA to comment on rumors, but would have to if there were concrete information.

"If InBev is not communicating it must be concluded that there is no information that has a specific character," the magazine continued.

Brazilian newspaper Valor Economico said a year ago that the two were in talks.

Both that report and the renewed speculation emerged in the build-up to carnival time in Rio de Janeiro. Some observers have suggested executives of the two companies have chosen to meet during the festivities.

InBev, overtaken by SABMiller Plc last year as world number one, was formed from the 2004 merger of ...More Info

SABMiller Plc , the world's biggest brewer, said it would build a new brewery in Australia with its partner Coca-Cola Amatil Ltd to tap into the fast-growing premium beer market, according to Reuters, February 8.

The new brewery will be built by the two group's joint venture, Pacific Beverages, in the central coast region of New South Wales, some 100 kilometres from Sydney. It will have a capacity of 500,000 hectolitres a year and be completed in 2010.

The new site will enable Pacific Beverages to increase production of Bluetongue and Bondi Blonde beer after the venture bought the small nearby Bluetongue brewery near Newcastle, north of Sydney, last December, for an estimated US$20 million.

The move will mean SABMiller and its partner can expand production in the Australian premium beer market which has grown at 15 percent a year over the last six years, and allow production of SABMiller brands such as Peroni in Australia.

No financial details for the brewery were given.

London-based SABMiller formed its Australian venture in 2006 to distribute its Peroni Nastro Azzurro, Pilsner Urquell, Miller Genuine Draft and Miller Chill, in a beer market dominated by Foster's Group Ltd with a 50 percent share and Lion Nathan Ltd with ...More Info

Efes Breweries International has signed a deal to buy 100 percent of Lomisi Ltd, the leader in the Georgian beer market, its Turkish parent company Anadolu Efes said, according to Reuters, February 8.

Lomisi is the leader in the Georgian beer market with an estimated market share of 42 percent by volume in 2007, up from 35 percent in 2006, Anadolu Efes said in a statement to the Istanbul Stock Exchange.

No value for the deal was given.

Anadolu Efes said Lomisi had a total annual brewing capacity of approximately 0.55 million hectolitres and operates two breweries in Alkhagori and Natakhtari, making six brands of beer.

"This acquisition will be both value and profit enhancing for EBI's business," EBI Chief Executive Alejandro Jimenez said.

The statement said the Georgian beer market has grown 16 percent on a compounded annual basis between 2002 and 2007.

Anadolu Efes has a 70 percent stake in Holland-based EBI, which is listed on the London Stock Exchange and which operates across Eastern Europe.

A decade ago, Anheuser-Busch Cos. began dangling financial incentives to get beer distributors to jettison rival brands, according to The Wall Street Journal, February 6. The campaign, known as "100 percent Share of Mind," was a big hit, helping the King of Beers tighten its grip on the U.S. market.

But now, some distributors are finding that selling only Anheuser products might not be smart in the fast-changing alcohol-beverage industry.

In the past year, distributors in Texas, Tennessee and elsewhere have decided to eschew Anheuser's incentives and begin selling rival beers such as Yuengling Lager, as well as wine and spirits. Recently, R.H. Barringer Co. became the first Anheuser distributor in North Carolina to start selling other brands, acquiring a rival that sells wine and imported beer. Today, about 60 percent of Anheuser's sales flow through distributors carrying only its brands, down from about 70 percent at its peak.

The shift might help competing alcohol brands gain market share, as distributors divert some of their attention from Anheuser, which accounts for about 48 percent of U.S. beer sales. For consumers, it means greater choice at their local bars and liquor stores. Wall Street analysts say the movement signals a weakening of the St. ...More Info

22% sales increase had marked Carlsberg Bulgaria for 2007 compared to the previous year, with common sale growth of the market with 9%, News.bg reported January 31.

The comparing shows that Carlsberg Company generates the main growth on the market in the passed year.

The Brewery Union official statistics say that the Bulgarian firm continues its sale increase reaching almost 25%.

Like several years before, main reasons for the good results is the growth of Shumensko beer sales - 21% more compared to 2006.

In the last 5 years Shumensko increased its production 4 times. Impressive growth also realized Pirinsko beer - 17,4% and Tuborg - 22%.

Carlsberg Bulgaria also leads the classification for biggest investor in the branch for 2007.

Until now the company had invested 31 million BGN (15 million EUR) in production works in the factories in Shumen and Blagoevgrad cities, transport and equipment.

United Romanian Breweries Bereprod (URBB), the producer of Tuborg and Carlsberg beers, intends to increase its market share by 6% this year, till 15%, Ziarul Financiar published January 31.

“At the end of 2007 the group’s production reached 1.7 million hectoliters. Its market share was of 9% in volume and 12% in value”. After the construction of URBB’s second brewery and this year investments to increase the production capacity till 2.5 mil hl, our market share will be of 15%”, according to Shachar Shaine, URBB’s president.

Malt markets seem quiet at present, analysts reported February 4. The large international brewing groups have secured large parts of their demand by long term contracts, which usually leave open barley prices, some of them also energy and transport cost.

Barley is usually purchased by the maltster partner of LTA’s, upon request of the brewer, and spread over the year. Brewers, who purchase fixed price malt as before, also seem to spread their activities over a longer period. Thereby shock waves in the market have been avoided lately.

The maltsters’ policies have not changed at all; they cannot and will not be long or short barley, because both could be wrong. Therefore any future large size activity may easily drive up barley markets and malt prices again. Malt markets for 2009 delivery in the EU interior range from EUR 550,- to 570,- per ton, delivered breweries. FOB seaport levels, in bulk, are similar, in bulk in container another EUR 15,- to 20,- higher.

Spring barley plantings could increase by as much as 10 to 15 per cent this spring as a large proportion of previously un-cropped and rotational set-aside land is brought back into production, Farmers Guardian published February 8.

With the results of a telephone survey conducted by Defra indicating that the total arable area is up by some 6 per cent, Masstock’s national seed business manager, Barry Barker, confirms seed sales for all crops are well ahead of last year.

“But clearly spring barley will see the biggest increase in area, particularly in Scotland and especially as oat contracts have not been that attractive,” said Mr Barker.

He also believed there would be small increases in spring wheat and spring bean plantings.

“Most set-aside land that was pulled up towards the end of last year would either have gone into winter wheat or be going into spring barley.

“However, a small amount may be going into spring wheat and in some cases some growers may have switched round land and put spring beans in other non-set-aside areas.

“When set-aside land is being pulled out it is difficult to know how much of that land will actually be cropped, because some land is so marginal that it’s not ...More Info

Malting barley prices continue to decrease both for 2007 and 2008 harvest, according to La Depeche, February 7.

In feed barley the trade activity is still too limited with prices slowly increasing as the result of the sharp growth of wheat.

J. Matula, M. Pechová Research Institute of Crop Production, Prague-Ruzyne, Czech Republic

Abstract
The aim of the present paper was to determine the impact of gypsum treatment of soils on initial growth and nutrient uptake by spring barley. Topsoil from 36 different farmed fields was used for the research. Two variants were established for each soil: control – without gypsum application, and response variant – with the application of 3.3 ppm CaSO4.2 H2O. Barley was grown on these soils for 21 days in a plant growth chamber under controlled conditions of cultivation. Concentrations of nutrients (N, NO3 –, P, S, K, Mg, Ca, Na, Fe, Mn, Zn, Cu, B and Mo) were determined in the yield of barley shoot biomass. Paired t-test was used for the evaluation of results. After the gypsum treatment the yield of barley shoot biomass was significantly higher (by 15% on average) and nitrogen utilisation was better on all soils. The concentration of sulphur increased five times on average and Ca concentration increased by 22%. Significant increases were measured in Mg, Mn and Cu. Insignificant differences were recorded in K, Na, Fe and Zn. The uptake of anion nutrients (P, B and Mo) was influenced significantly. The concentration of P and Mo decreased on average by 28% and 31%, respectively. B concentration was higher by 10% on average. Keywords: soils; gypsum; nutrient uptake; barley; N; P; S; K; Mg; Ca; Na; Fe; Mn; Zn; Cu; B; Mo
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