Turkish Efes Breweries International (EBI) posted an EBITDA of $81.6 mln for the first half of 2008 on its official site on August 28. In the corresponding period of 2007, the EBITDA was $71.7 mln.

EBITDA of Q2 2008 amounted to $65.2 mln from $56.1 mln in Q2 2007.

Financial review

EBI’s total sales volume increased to 7.1 mln hl, by growing 10.9% over the same period of previous year (6.4 mln hl). In the second quarter of 2008 sales volume constituted 4.5 mln hl whereas in Q2 2007 it was 4.1 mln hl.

In Russia the company’s sales volume increased to 5.6 mln hl in H1 2008, achieving a growth of 12.0% year‐on‐year. Despite the unfavorable weather conditions in the second quarter of the year and the cycling of a very strong base, Efes’s Russian sales volume grew 11.1% in Q2 2008. EBI’s market share in Russia increased to 9.1% in June 2008.

In Kazakhstan EBI’s sales volume in H1 2008 was 0.7 mln hl, up by 14.5% over the comparable period of the previous year. Double digit volume growth was achieved despite the strong base of H1 2007, when sales volume grew by 36.9% year‐on‐year. Second quarter sales volume growth in Kazakhstan was 15.2%. ...More Info

The UK's second-largest brewer, Coors Brewers, has become the latest to raise its beer prices for the second time this year, in an effort to claw back soaring input costs, the Independent posted on September 2.

The company announced an increase of its wholesale prices by 3p per pint from 29 September, which follows an earlier 4p a pint uplift for on-trade in February.

The Carling and Grolsch brewer said it made just 2p profit per pint in 2007 and the price of basic goods continues to rise.

Mark Hunter, Coors Brewers chief executive, said: "We are seeing input cost inflation of a magnitude that could cripple the UK beer industry."

Mr Hunter, who has been in the industry 20 years, said: "In living memory no one can recollect such a consistent level of increase." For instance, he said that the price of barley and metal, used for making cans, had rocketed by 50 per cent and 64 per cent respectively over the last two years, while its energy costs were up 150 per cent over a similar period.

Mr Hunter said that while no further price increases were planned for 2008, he said that if input costs continued on the same upward ...More Info

InBev announced on its official Web site on August 28 the successful completion of the primary syndication phase of the committed financing for the combination of InBev and Anheuser-Busch.

The Belgian beer giant reported that it received strong support from its key relationship banks providing positive momentum to the transaction ahead of a round of general syndication to take place in September 2008.

Felipe Dutra, CFO of InBev said, "I am pleased that the banking community recognizes the merits of the proposed combination between Anheuser-Busch and InBev, creating the world's leading brewer, and has fully subscribed to the primary syndication of the committed financing relating to the transaction.

“Following the closure of the primary syndication phase the Mandated Lead Arranger (MLA) group now represents a very diversified group of strong banks, giving InBev access to all significant capital markets. The MLA group of banks consists of: Bank of America, BayernLB / Banque LBLux S.A., Dresdner Bank AG, Intesa Sanpaolo S.p.A., KBC Bank NV, Rabobank International, Scotia Capital, Société Générale, and The Toronto-Dominion Bank."

In July 2008, InBev arranged fully committed financing with signed credit facilities from a group of leading financial institutions, including Banco Santander, Bank of Tokyo- Mitsubishi, Barclays Capital, BNP Paribas, ...More Info

Total alcohol consumption grew by 2.5% in Russia in January – July 2008 as compared to the corresponding period in 2007, Business Press reported citing the report by National Alcohol Association of Russia (NAA) on September 1.

The nation’s total alcohol consumption constituted 8.47 mln hl in terms of pure alcohol.

The share of beer amounted to 35.9% (29.5% in 2007), exceeded only by vodka and strong alcoholic beverages (49.6%).

According to NAA data, alcohol consumption volume in Russia increased by 4.8% compared to that in 2006, and by 5% versus the rate of 2005. Experts explain the general growth of alcohol consumption by increasing popularity of beer among Russians, for the share of vodka and hard alcohols fell by 8.8% this year.

The country’s production of strong alcoholic beverages decreased by 1.6% during the first seven months of 2008, Rosstat reported.

Besides, a drop was registered in the production volume of ethyl alcohol (- 17.8%) and malt (- 2.8%).

At the same time, the production of beer grew by 3% in Russia in January – July 2008.

Total beer sales accomplished by Heineken in Romania grew by 5.6 per cent in volume during the first semester, Emportal posted on September 1.

This is one of the most dynamic evolutions in Central and Eastern Europe, where the Dutch group reported a turnover advance of 6.1 pc, according to data presented in the financial report published by the producer.

In Romania, the operational profit decreased to last year’s value, due to investments in the “Ciuc” brand and changes in the customers’ preferences, the semester report of the group also mentioned.

The sales of the brand Heineken reached a rise of 35 per cent on the local market, compared to the similar period of the previous year.

Lord Karan Billimoria may be exploring an outright sale of his nearly two-decades-old Cobra Beer after drinks giant Diageo called off a transaction to pick up minority stake in the company, the Economic Times reported on August 29.

In the interim, Cobra Beer is lining up $50-70-million debt facility from ICICI Bank to meet operational requirements.

Experts say global brewing giants InBev, SABMiller, UB and buyout private equity funds may be interested in an acquisition opportunity. In the past, several players, SABMiller among them, have considered the asset, but stayed away from cutting a deal on valuation differences. The possibility of suitors making a serious bid now depends entirely on a negotiated price.

According to analysts, the Billimoria family may be seeking $350-400-million valuation, including debt, as they are likely to seek an earlier than anticipated exit in the wake of mounting pressure. “Mr Billimoria has hinted about an exit in 3-5 year time, but don’t be surprised if it happens in the next 12 months,” a source said.

“We can confirm that we held discussions with Diageo about a possible minority investment, and that these talks have now ended,” Cobra Beer CEO Adrian McKeon said.

A SABMiller spokesperson in London declined to comment while ...More Info

Rainfall and increased quality concerns remain the dominant feature of the 2008 European harvest, although quality so far appears reasonable. Overall, the crop is expected to be well above last year, Farmers Weekly reported on August 27.

Concern remains for UK crop quality, particularly if the nation has a significant exportable surplus to compete against increased supplies from EU and third country competitors. Winter barley is 97% complete in the UK and spring barley is about 30% cut, with yields of 6.65 t/ha and nitrogen levels 1.4-1.7%.

The German farmers union now estimates the grain crop at about 47 mln tonnes (17% up to 24 mln tonnes for wheat, 9% up to 9 mln tonnes for winter barley and 5% down to 5 mln tonnes rapeseed).

Russia has harvested more than 85% of its total 75.3m tonne grain crop, about 22 mln tonnes above last year. Some 43.2 mln tonnes wheat and 17 mln tonnes barley have been cut. As of August 15, 10% of the Kazakh crop had been harvested. Total grain production is about 17 mln tonnes, and the export potential could reach about 5.5 mln tonnes of grain.

Harvest pressures, which normally depress barley prices at this time of the year, haven't had too much impact on either the malting or feed barley markets in the past few weeks, Farm & Ranch Guide reported on August 29.

The malting barley prices remained strong even though good yields and high quality malting barley crops have been reported in much of eastern North Dakota and north-western Minnesota. An average elevator board price was around $6 per bushel, according to Kelly Kotowicz at the Alvarado Farmers Elevator in Alvarado, Minn., although he had been paying $6.20 for the last two weeks.

The barley harvest in his area is about 90 percent completed and farmers are reporting good quality and slightly above average yields as combining nears completion.

“The barley crop was good to excellent,” Kotowicz noted. “The VOM levels are very low, really good plump and test weights were good. And the yields were slightly above average. “As far as the future for malting barley, I feel we are going to stay at these levels until we can get a feel for what the crop is in Canada, and we are hearing some horror stories on the crop out in southwestern ...More Info

The latest Statistics Canada report estimated barley production at 10.88 million metric tonnes, the Manitoba Cooperator informed on August 28.

The estimates were increased due to bigger yield and harvested area numbers, it was reported.

The increase in harvested percentage is likely impacted by attractive malt barley returns and struggles in the livestock sector, while the higher predicted yields are consistent with recent reports of crop conditions across much of the Prairies.

Analysts say exports are likely to be lower than last year's as stiff competition from other feed barley suppliers enters the world markets. Neither Australia nor the Black Sea region were major players last year due to crop failures, but larger crops and a freight advantage to key export destinations will make these regions more competitive. As a result, Canadian feed barley exports will be mostly limited to the Japanese market.

Even with the expectation of above-average yield and a reduction in exports, the supply and demand balance for barley is not overly burdensome. Lower barley values and higher livestock prices later in the crop year could help increase domestic feed usage. Barley prices will also be heavily influenced by U.S. corn prices as well.

The renewed forecast by the International Grains Council for 2008/2009 world barley trade has been increased by 0.4 mln tonnes to 17.7 mln tonnes versus 15.3 mln tonnes last season, Agroperspectiva reported on September 1.

The augmentation was conditioned by higher feed barley trade, whereas malting barley trade forecast remained the same.

The projection for EU feed barley export was reduced by 0.5 mln tonnes in comparison with the July data. At the same time, the forecast for Ukraine was 0.5 mln tonnes higher, making Ukraine a global leader in feed barley exports.

The prognosis of barley exports was increased for Russia as well.

Among importers, the forecast was risen for Saudi Arabia, world’s biggest purchaser of feed barley.

E. Jeney-Nagymate and P. Fodor

Abstract

J. Inst. Brew. 113(1), 28–33, 2007 The electron spin resonance method can be used to analyse the effect of antioxidant vitamins such as vitamin E and C on the flavour stability of beer. The aim of this study was to examine the effect of vitamin addition on the lag time parameter at different beer production stages. The longest lag time values were measured when the vitamins were added to the wort after cooling. Lower pH value helped improve the lag time value when used with ascorbic acid. When the vitamin E concentration was higher than 4 mg/L at original pH, or the vitamin C concentration was higher than 30 mg/L at lower pH, the lag time was higher than 100 min. Key words: Ascorbic acid, -tocopherol, beer, ESR, lag time. Load full article, 6 pages, 367 Kb, PDF file