Heineken N.V. has substantially completed its review of the acquired Scottish & Newcastle (S&N) businesses, the brewer’s official Web site stated on August 22.

The expected pre-tax synergies from the acquired S&N businesses were increased to GBP 145 million from GBP120 million previously (EUR 184 million and EUR 142 million respectively at GBP/EUR 1.27), to be achieved in four years. At the end of August 2008, EUR 60 million of annualised cost synergies have already been realised.

The company has prepared the unaudited provisional condensed opening balance sheet from 1 May 2008. In addition Heineken has compiled unaudited, pro-forma condensed income (beia) information for the whole of calendar year 2007 for the acquired S&N businesses. The adjustments have no effect on cash flows.

The brewer has refinanced in part its bank credit facilities related to the S&N acquisition through the raising of EUR 742 million of new long-term debt.

Total expected pre-tax synergies over four years increase 30% to GBP 145 million before tax up from GBP 120 million, as a result of an increase in cost synergies to GBP 110 million (EUR 140 million). Based on its review Heineken is also confident that it will realise the expected revenue synergies of GBP 35 ...More Info

Tsingtao Brewery Co Ltd, China’s best-known beer brand, achieved a 41.9 per cent rise in first-half net profit despite soaring raw materials prices, Reuters reported on August 20.

The company said it earned 381.13 mln yuan due to higher selling prices and a restatement to account for higher taxes.

In its interim report filed with the Shanghai Stock Exchange, Tsingtao said it sold 2.686 mln kiloliters of beer in the first six months, up only 5 pct from a year earlier, roughly in line with the industry total for China, which rose 5.6 pct year-on-year to 19.648 mln kiloliters.

The national total slowed from the growth rate of 16.2 pct from the previous year.

However, the company moderated the impact of slower growth by adjustments to prices and the product mix. No details were given.

Sales volume of its top four brands - Tsingtao, Shanshui, Laoshan and Hans - stood at 2.48 mln kiloliters, up 30 pct year-on-year and accounting for 92.4 pct of sales volume, while sales small bottled and canned high-quality beer rose 30.2 pct and 19.3 pct respectively.

In the first half, Tsingtao Brewery booked operating revenue of 7.904 bln yuan, up 15.67 pct year-on-year.

Revenue per kiloliter of ...More Info

Bulgarian breweries of the Bulgarian Brewers Union exported 78,358 hl of beer over the period of August 1, 2007 – July 31, 2008, the Investor published on August 15.

The export in H1 2008 (ended in June) was 69,173 hl of beer, it was reported.

At the end of H1 2008, the Union announced a 80% export increase for the first time in its history. The higher rate of beer export in July shows that the exported volumes are still growing. Bulgarian beer is mainly sold to the neighbouring nations, though the brewer’s destinations also include countries with big Bulgarian diasporas, such as Spain, Portugal, and the USA.

Over August 1, 2007 – July 31, 2008, Bulgarian breweries sold 5.399 mln hl of beer against 5.370 mln hl of August 1, 2006 – June 30, 2007. The data of the period August 1, 2006 – July 31, 2007 were not disclosed, though the Union announced a 2% increase in consumption on the domestic market.

Zagorka brewery achieved the highest sales in the period August 1, 2007 – July 31, 2008 – 1.716 mln hl. The figure includes the export of 2,399 hl of beer. Kamenitsa sold 1.571 mln hl, with an export of 17,882 ...More Info

The brewing giant SABMiller reports a decline in profits from its Indian operations during 2007-08 but is setting up a one million hectolitre capacity brownfield brewery in Haryana this year, Money Control posted on August 22.

SABMiller admitted the possibility of its incurring a loss of around Rs 41 crore during the current fiscal as the cost of malt and fuel have gone up nearly 100 per cent and because of higher depreciation and interest costs. However, it said in a report that a return to profits posting about Rs 20 crore is expected during 2009-10.

According to the report, SABMiller has restructured its organisation in India to make it more responsive to the current market conditions.

SABMiller and its competitor United Breweries collectively have over 90 per cent of the share of the beer market in India. For 2007-08, SABMiller’s net profit declined 14 per cent to Rs 34.4 crore while net turnover grew 25 per cent to Rs 1087 crore. United Breweries managed to nearly maintain its net profit to around Rs 55 crore while total income grew nearly 39 per cent to Rs 1591 crore during the same period, according to the Bombay Stock Exchange Web site.

The report said SABMiller’s ...More Info

The Dutch beer giant Heineken may purchase Lucerne's Eichhof brewery without conditions, Swissinfo cited the Federal Competition Commission of Switzerland on August 21.

The competition authority said there was "no sufficient evidence of a permanent dominance" by what will be the country's two main beer producers – Heineken-Eichhof and Switzerland's largest, Carlsberg/Feldschlösschen.

It is reported that previously, the competition body had expressed concern that the two firms would unfairly dominate the market, but after a review said local and regional competitors would remain viable.

"The beer market is open enough and competitors can enter the market without high barriers," it said.

The merger, first proposed in April, will give Heineken a 23 per cent market share.

In a statement, Eichhof said it was satisfied with the commission's ruling and that the sale process would continue according to plan.

Beer Capitol Distributing Inc., a wholly owned division of The Madrigrano Cos., agreed to acquire beer wholesaler Miller Brands-Milwaukee LLC of Wauwatosa, which distributes MillerCoors brands in Milwaukee County, the Business Journal posted on August 19.

The cost of the deal was not disclosed. The sale, which is to close by Oct. 31, will create one of the largest beer wholesale distributors in Wisconsin, with 250 employees and 2,000 sales accounts, said Aldo Madrigrano, Beer Capitol chairman.

“The joining of these two great companies represents a strategic move that better aligns both organizations with the newly formed MillerCoors joint venture, building upon each companies’ recognized strengths in delivering exemplary customer service and developing long-standing relationships within local operating communities,” said Aldo Madrigrano, who will serve as chairman following the sale.

Mike Merriman, president of Beer Capitol Distributing, will continue in that role and Dave Neville, currently the vice president of sales for Miller Brands, will lead the distributor’s sales operations.

Sources said, no other operational changes as a result of the sale are planned at this time.

Currently, nearly the entire portfolio carried by Miller Brands are brands produced by the former Miller Brewing Co. of Milwaukee, including domestic brands such as Miller Lite, Miller ...More Info

The consumption of beer by South Koreans has increased more than 45 times over the past 40 years, KBS posted on August 20.

The National Tax Service (NTS) says Korean people drank nearly 2 million kiloliters of beer last year, up from 44 thousand kiloliters in 1966.

As a consequence, taxes from beer sales surged. The NTS collected more than 1 billion U.S. dollars in taxes on beer in 2007. The amount accounted for 44 percent of all taxes collected on alcoholic drinks.

During the same period, overall alcohol sales increased four-and-a-half times. The consumption of the distilled liquor soju jumped more than nine times while that of the rice wine makgeoli declined by two-thirds.

This means that beer, once a high-end beverage, has become everybody's drink. Beer continues to be the biggest source of liquor tax, the NTS said.

Local beers date back to the Japanese colonial era, when two breweries were built in 1933 to produce beer as war supplies. Both belonged to major Japanese brewers.

The then Chosun Brewery has become Hite Brewery now and Showa Kirin is now Dongyang, manufacturer of the current OB brand. Still, both remain the nation's two biggest breweries.

It was in the 1990s that beer ...More Info

The IGC estimate as of early August stated that the world will harvest 145.9 mln tons of barley in 2008, compared to 134.9 mln tons last year, experts say.

World trade is forecasted to amount to 17.3 mln tons, up from 14.9 mln in 2007/08, consumption will rise from 139.8 to 144.8 mln tons, ending stocks are estimated at 21.4 mln tons, 1.1 mln tons better than in 2007/08.

The USDA report from earlier in the month included a barley trade figure of 18.4 mln tons.

Barley import demand in the Middle East and North Africa is officially estimated at 12 to 13 mln tons, trade estimates are even higher.

A bad drought had affected crops in all Middle Eastern countries, specifically Iran and Syria, but also Eastern Turkey. July sales to the region must have been close to 1 mln tons.

July barley shipments were 542,000 tons from the Ukraine, 72,000 tons from Russia, licence bookings = prompt shipments from the EU totalled 552,000 tons, it was reported.

Earlier, the IGC had reduced crop estimates to 10 mln tons for Canada and to 4.8 mln tons for the U.S. However, Canadian sources report a vast improvement due to recent rains: at least 1 mln tons more are expected.

Analysts say markets are very complicated, to put it mildly. Industries concluded very expensive pre-contracts, Anheuser Busch will increase usage of U.S. barley to the detriment of imports from Canada, and Midwestern feed barley markets are too high for export business from Pacific ports.

The stable figures are local malting demand of 1 mln tons in Canada almost 3 mln tons in the USA. Both malt and barley exports are also likely to Mexico.

The size of the malting barley pool of the CWB will depend on the export figures to the U.S. and China, experts communicated.

After the end of the strike and good rainfalls Argentine farmers were able to plant an estimated 650.000 HA of malting barley. Thus, crop estimate as of the beginning of August was approximatively 2.0 mln tons versus domestic needs of 900.00 tons.

Experts admitted the possibility of a surplus of malting barley not only in the Mercosur, but possibly even for the whole of South America.

V. Psota, K. Vejražka, O. Famera and M. Hrcka

Abstract

J. Inst. Brew. 113(1), 80–86, 2007 In a three-year period, protein content, polysaccharides and values of the selected malting parameters were determined in 12 varieties of barley. Hardness was assessed using the particle size index (PSI) and a Do-Corder apparatus (BRA). Significant differences in the levels of hardness between the varieties were detected. Hardness was affected by variety from 37% (PSI) and 71% (BRA). Significant correlations were determined between the PSI and extract content (0.64***), Kolbach index (0.66***), friability (0.57***), beta-glucans in wort (–0.51***) and colour of malt (0.57***). Significant correlations were found between BRA and content of non-starch polysaccharides in caryopses (0.64***), extract (–0.62***), Kolbach index (–0.70***), friability (–0.70***), beta-glucans in wort (0.79***) and wort colour (–0.56***). Correlation was determined between hardness and malting quality index (PSI 0.51***, BRA –0.71***). Key words: Barley, beta-glucans, Brabender, hardness, PSI, quality. Load full article, 7 pages, 129 Kb, PDF file