Shareholders in Scottish & Newcastle have voted overwhelmingly to back the £10 billion bid for Britain's biggest brewer by a consortium of Carlsberg and Heineken, according to Scottish & Newcastle’s press release, March 31.

At an extraordinary general meeting today in Edinburgh, shareholders voted by an overwhelming majority to accept the bid. The decision requires further court approval with the final handover expected to take place on April 28.

The decision will result in S&N's businesses in the UK and Ireland, Finland, Portugal, Belgium and India going to Dutch multinational Heineken; with S&N's businesses in France, Greece, Russia, China and Vietnam going to Danish brewer Carlsberg.

S&N chairman Sir Brian Stewart told shareholders it was a 'momentous and historic day for Scottish & Newcastle, Britain's largest brewer and one of Scotland's oldest independent companies.'

S&N was founded 259 years ago in Edinburgh and first listed on the stock market over 120 years ago.

Sir Brian said: "While there is sadness at the passing of two and a half centuries of brewing history, the prevalent emotion today is pride:

- Pride in our people in building such a valuable and desirable global business - Pride that our strong brands and the Scottish & Newcastle spirit will continue - Pride ...More Info

Anadolu Efes’ consolidated sales volume (including beer and soft drink volumes) was up 11.4% in 2007 over 2006, according to company’s press release, March 28.

- In 2007 Anadolu Efes’ consolidated net sales revenue reached YTL3,030.4 million, by increasing 16.8% over the previous year. The revenue growth, which was ahead of the volume growth, was mainly due to the increase in average prices in all lines of businesses.

- The consolidated gross profit of Anadolu Efes increased by 22.8% in 2007 over the previous year and reached YTL1,534.7 million. The improvement in the gross profit margin to 50.6% from 48.2% year ago was assisted by the improvement in the gross profits of the soft drinks business and Turkey beer operations and achieved despite the challenging conditions in the global commodity markets, impacting especially our international beer operations.

- Our consolidated profit from operations increased 30.4% in 2007 and reached YTL515.8 million, while consolidated profit from operations margin increased to 17.0% from 15.2% in the previous year, as a result of improved operational profitability in all lines of businesses. Consequently, Anadolu Efes’ consolidated EBITDA increased by 24.0% over the previous year and reached YTL734.9 million with an EBITDA margin expansion to 24.3% from 22.9% in 2006.

- Anadolu Efes’ ...More Info

Anheuser-Busch announced it will build a new brewery in the Fengnan District of Tangshan to replace a smaller downtown brewery, according to company’s press release, March 28. The move supports the local government’s efforts to relocate industrial facilities outside the city and redevelop Tangshan’s downtown into a more residential and commercial area.

“Anheuser-Busch has a long-standing commitment to support the communities where it operates,” said YR Cheng, president, Anheuser-Busch China. “The local government asked us to support efforts to redevelop downtown Tangshan by relocating and expanding our existing brewery. We worked together to develop a plan that benefited the Tangshan community and Anheuser-Busch’s business.”

Scheduled for completion in late 2009, the new Tangshan brewery will be built on a 160,000 square meter site and cost $49 million (346 million RMB) for the first phase. The facility will have an initial production capacity of 3.1 million hectoliters (2.6 million barrels). After the project is completed, the old Tangshan brewery will be shut down and the site will be prepared for future residential or commercial development.

“Tangshan is a growing city and continues to attract more tourists and investors each year,” said Li Zhong, governor of Fengnan District, Tangshan Municipal People’s Government. “Our goal is ...More Info

China Resources Enterprise, Limited announced its final results for the twelve months ended 31 December 2007, in a press release, March 31. Profit attributable to the Company’s shareholders rose to a record HK$4,961 million, an increase of 79%. Earning per share grew 76% to HK$2.09, also a new high. Excluding the turnover contribution of the discontinued petroleum business, consolidated turnover was up 28% to HK$51.5 billion.

Excluding the after-tax effect of revaluation of investment properties and major disposals, underlying net profit was up 11% to HK$2,051 million driven by the 41% profit growth of the continuing businesses. The Board of Directors proposed a final dividend of HK$0.30 per share. Together with the interim dividend of HK$0.15 per share, the full year basic dividend will be HK$0.45 per share, an increase of 13%. The basic dividend payout ratio edged up to 41.9% from 41.1% in 2006. This has excluded the special dividend of HK$0.60 per share paid in August 2007 following the disposal of the petroleum distribution operation in Hong Kong.

Beverage business achieved impressive growth in both profitability and sales volume. Earnings rose by 74% to HK$303 million, including HK$239 million from beer operation and the balance HK$64 million from purified water ...More Info

Brewer SABMiller Plc SAB.Li said Peruvian per capita beer consumption would grow in 2008 as the Andean country's economy surges, Reuters reported March 31.

Speaking at the Reuters Latin American Investment Summit in Lima, SABMiller Peru Chief Executive Robert Priday said sales growth in its Peruvian brewery, Backus y Johnston (BKJi.LM: Quote, Profile, Research), would be "a bit above" the general growth rate of Peru's economy, which expanded some 9 percent last year.

"Let's look at the history. Our growth has been higher than the growth in the economy....You can imagine our calculations are based upon numbers like that," Priday said.

On Friday, Peru's central bank president said he expected Peru's economy to grow 7.5 percent in 2008.

Sales growth for Backus y Johnston in 2007 was 12 percent.

Per capita beer consumption in Peru was 38 liters (10 U.S. gallons) last year, up from 33 in 2006 (8.7 U.S. gallons) but below 42 (11.1 gallons), which was hit in 1987 and remains a record for Peruvian beer consumption.

Backus y Johnston expects 2008 consumption to surpass the 1987 figure.

SABMiller moved into Peru in 2005 when it completed its acquisition of Colombian-based Bavaria, which then owned Backus. Backus produces the Cristal, Pilsen, San Juan and Cusquena ...More Info

The most interesting feature of world malt markets is the continuing interest of brewers in malt for delivery in 2008, analysts reported March 28. It is impossible to assess the total uncovered demand, but inquiries from Eastern Europe, Latin America, Africa and Asia point to a rather large quantity.

LTA’s and traditional fixed price sales have covered a large portion of the 2009 needs in the world, but there remains at least 30 – 40 % to be covered. Action in March has been limited, Brazil and Japan were reported as buyers. Prices of EU malt ranged from EUR 540,- to 550,- FOB in bulk in vessel, and from EUR 555,- to 570,- FOB in bulk in container. Australian levels were similar, however, it has been difficult to compare prices in different currencies because of the strong currency fluctuations during the month.

The crop year of 2007/08 approaches its end. The frequently reported quality (germination) problems remain a marginal factor, the analysts reported March 28. Good quality barley is still buyable. Most likely the import of 150 – 200.000 tons of Argentinian malting barley has calmed any fear of a lack of supplies.

The attention is on new crop. Markets came down by EUR 10,- per ton from a month ago, which, however, was not the price collapse that industries had hoped for. Last week’s offers and trades were: France, July 2008, FOB Creil, 2rs EUR 273,-, 6rw Esterel 250,-, Cervoise 233,-. FOB Moselle plus EUR 10,-. U.K. 2rs traded basis October, FOB seaport EUR 270,- helped by a weak Pound Sterling, Danish 2rs, same position is quoted 273,-. In South Germany bids of EUR 270,-/275,- ex harvest are not accepted by farmers after earlier trades at EUR 300,-, parity delivered warehouses. Czech maltsters and traders try vainly to buy unscreened barley at EUR 240,- for 12,5 %, and 255,- for max. 11,5 % protein. Slovak maltsters purchased good quantities at EUR 230,-. Czechs and Slovaks were caught last year by non-fulfilment of their purchase contracts and have therefore put very strict ...More Info

Canada expects to export 2.5 Mill. tons of barley vs. 1.2 Mill. tons in 2006/07, analysts said, march 28. 1,20 – 1,25 Mil. tons will be malting barley, of which 700.000 tons will go to the U.S. and Mexico. Present price level is US$ 400,- FOB seaport. Feed usage is disappointing and may be 1.5 Mill. tons less than in the year before. New crop acreage is expected at least 5 % down.

The government continues its fight in parliament against the exclusive barley marketing rights of the CWB, but the outcome is uncertain. The general market panic had led to sky-high malting barley prices in the U.S., where maltsters and brewers are confronted with a dangerously small barley acreage. Top prices paid in the Western States were above US$ 500,- for new crop barley. Meantime markets calmed down, but new crop barley is till quoted at US$ 400,- in the West track and US$ 460,- for two-row resp. US$ 370,- for six-row grades at Minneapolis.

Barley growers plan to plant 4.15 million acres for 2008, 3% more from last year, according to this year's USDA estimates, the media reported March 31.

If realized, this will be the fourth lowest barley planted acreage on record.

In North Dakota, the largest barley-producing State, expected planted area is 1.55 million acres, up 5% from 2007. Growers in California, Wyoming, and Virginia intend to increase their acreage by 35% or more. In Michigan, New York, and Utah, acreage is expected to decline to record low levels and Nevada producers intend to match their lowest acreage on record established last year.

D.E. Evans1, C. Li2, J.K. Eglinton3 1TIAR, University of Tasmania, Private Bag 54, Hobart, Tasmania, 7001, Australia; 2Dept of Agriculture Western Austraia, 3 Baron-Hay Court, Sth Perth, WA 6151, Australia; 3School of Agriculture and Wine, University of Adelaide, Glen Osmond, SA, 5064, Australia

SUMMARY
Data is presented to support the replacement of the diastatic power (DP) malt specification in favour of the measurement of the DP enzymes (DPE), alpha-amylase, limit dextrinase, beta-amylase, and beta-amylase thermostability. The use of the DPE via a multi-linear regression equation predicts ~90% of variation in malt attenuation compared to <50% of variation by DP alone. The measurement of the individual DPE would most likely have a number of advantages over DP or the time consuming AAL parameter for maltsters and their brewer customers. Firstly, the three DPE determinants of fermentability are independently assessed. This is important information as the ratios of alpha-amylase to limit dextrinase to beta-amylase vary between malt samples from the same variety. Knowledge of the levels of these enzymes would allow maltsters to potentially to blend their malt batches more precisely within or between varieties to balance the levels of DPE to better satisfy brewers fermentability expectations. At very least brewers could be fore warned when a delivery of malt was being made that differed from the specifications desired, thus take steps in the brew house to accommodate such changes. The application of these insights in the brewing industry is predicted to result in substantial improvements in brewing consistency and enable more specific quality targets for barley breeders to be defined.
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