Shareholders of InBev SA will vote on September, 29 about the company's US$52 billion bid for U.S. rival Anheuser-Busch Cos., InBev announced on September, 4.

The company is also going to ask shareholders to back a capital increase and the issuing of new shares that would raise up to US$10 billion to pay for part of the deal.

The sum would cover the existing equity bridge financing of US$9.8 billion in place since the deal was announced in July, the brewer said.

InBev said it did not plan to increase capital by more than US$9.8 billion but was adding an extra margin to cover any significant currency fluctuations until the company's board decides how many new shares to issue and at what price.

Three-quarters of InBev's shareholders must approve the Anheuser-Busch acquisition, the capital increase and changing the name of the company to Anheuser-Busch InBev.

At least half of the shareholders represented at the meeting also must approve the appointment of Anheuser-Busch chief executive August Busch IV as a company director and changing control of the company's existing US$45 billion senior credit facility and the equity bridge financing of US$9.8 billion.

InBev says its controlling shareholder - Stichting InBev, which owns a 52 percent stake in ...More Info

China Resources Enterprise Ltd., China’s top beer brewer, announced it had increased by 28.44 per cent its first-half earnings, Reuters communicated on September 3.

The achievement was realised due to rising incomes and booming domestic consumption, the company said.

A net profit of HK$1.49 bln (about $190.8 mln) was posted for the six months ended June 2008. The same period last year revealed a HK$1.16 bln net profit, Reuters calculations state.

The company’s turnover amounted to HK$8.7 bln rising by 30% over last year’s data, Trading Markets posted.

Beer sales by volume in the first half added 4.6% and grew to 3.49 mln kilolitres led by a 21.7 percent gain in sales of its premium "SNOW" brand, with sales volume of 2.89 million litres, despite the losses from the major earthquake in Sichuan earlier this year.

In money terms, the company's sales hit HK$31.81 billion, compared with HK$35.15 billion a year ago. Earnings per share were HK$0.62 against last year's HK$1.58.

Beer prices have risen significantly this year to compensate for increased raw material and financing costs.

The company declared an interim dividend of HK$0.15.

As of end June, the company operates 60 breweries across China with a total capacity of 11 million kilolitres. Beijing-backed China Resources ...More Info

InBev is considering selling its South Korean beer business to help raise $2 billion for its $52 billion takeover of Anheuser-Busch, Reuters quoted unnamed sources on September, 2.

Deutsche Bank and JPMorgan Chase will run the auction for the business, called Oriental Brewery.

However, the the auction is not likely to start until the closing of InBev's planned $52 billion takeover of Anheuser-Busch.

Earlier, InBev said it was considering the disposal of noncore assets.

"Financing for the combination with Anheuser-Busch includes a $7 billion bridge financing for divestitures of noncore assets from both companies," a spokeswoman for InBev said.

"However, we cannot comment at this stage on which businesses specifically would be considered," she added.

Oriental Brewery sold 6.9 million hectoliters (182.3 million gallons) of its product in 2007, a figure that in part led sources to estimate the roughly $2 billion price tag. The business is South Korea's second-largest brewer behind Hite Brewery Co Ltd.

JPMorgan and Deutsche Bank also advised InBev on the deal with Anheuser, which ended in an amicable resolution after a month-long saga that had become increasingly hostile. According to sources, Japanese brewers Kirin Holdings Co Ltd and Asahi Breweries Ltd may be among the interested bidders for the unit.

Oriental Brewery ...More Info

Czech breweries saw their output fall by 0.5% on the year to 9.873 million hectolitres of beer at end-June, Jan Vesely, chairman of the Czech Beer and Malt Association, was quoted as saying by ČTK on September, 4.

According to Vesely, domestic sales decreased by 2.3 percent to less than 8 million hl, while exports rose by 7.8 percent to a record 1.92 million hl of beer.

"The first-half results of our breweries confirm the trend of recent years, namely domestic market stagnation and ongoing very solid growth in exports," said Vesely.

In spite of the strong crown and the market’s stagnation, domestic breweries manage to penetrate foreign markets, he added.

In 2007, a record beer output amounted to 19.897 mln hl.

While in H1 2000, the share of beer exports in the output of domestic breweries stood at 9 percent, by end-June 2008 it climbed to 19 percent.

The highest exports went to Germany (700,000 hectolitres), Slovakia (330,000 hectolitres) and Russia (161,000 hectolitres).

Czech breweries export mainly lagers but interest in Czech draught beer has lately been growing as well. Lagers contributed 72 percent to Czech beer exports in H1.

Lagers also raised their share in the domestic market - from last year's 28.8 percent to 30 ...More Info

The Dutch government risks killing the golden goose if it raises duties on beer, hitting the country's brewers at a highly sensitive time, the Dutch brewers' industry body CBK was quoted as saying by Reuters on September, 3.

According to CBK chairman Jack Verhoek, the industry fears the Netherland's first rise in duty on beer since 2002 will come next year, while brewers are already battling soaring raw materials prices, high energy and transport costs, and smoking bans.

The association, which represents brewers such as Heineken and Grolsch, owned by SABMiller, says the brewing industry is a crucial motor of the Dutch economy.

Raising duties on beer would hit domestic sales, see consumers favour wine over beer, drive them to neighbouring Germany and Belgium to purchase their pils, and have broad repercussions throughout the Dutch economy, Verhoek said.

“Everything is coinciding, the smoking ban, the price of grain, of energy, of transportation. We are in a difficult corner and everything is coming at once,” Verhoek said in an interview on September, 2.

The government is considering raising duty on beer and according to an Ernst & Young report commissioned by CBK the hike could be 30 percent from Jan. 1 2009 -- a ...More Info

Sapporo Breweries Ltd. will terminate beer coupon sales on February, 27, 2009, Jiji Press reported on September 2.

The move was partly caused by shrinking demand, the company said.

The firm also finds it difficult to continue coupon sales due to growing costs of printing, delivery and forgery prevention.

Sapporo’s rivals Rivals Asahi Breweries Ltd., Kirin Brewery Co. and Suntory Ltd. ended beer coupon sales at the end of December 2004.

Beer coupon sales were started by Sapporo in 1970. At the peak in 2005, the company sold some 90 million coupons. But sales then started to fall, totalling 60 million in 2007 and estimated at 50 million this year.

Increasing affluence, personal wealth and rising average household incomes on a global basis has been a key driver for beer consumption throughout the cyclical fluctuations of economic activity, Global Industry Analysts, Inc. stated in a report made public on September 4.

Subdued demand in developed markets of Western Europe and North America will be offset by surging demand in emerging markets including China, Brazil and Mexico.

Spiralling sales in developing countries, lifestyle shifts, new flavour enhancements, rising interest in organic and imported beer and the development of non-alcoholic beer sector are providing significant impetus for growth in the beer industry. Beer industry is expanding as more varieties and better quality beers become available. Another factor in growing importance has been the specialty and craft beer type, which responds to consumers’ desire for healthier and differentiated products.

According to experts, large number of habitual beer consumers, increasing affluent and discerning population, and demographic shifts will continue to fuel consumption in the global beer market. Moreover, the rise in number of nightclubs and restaurants serving alcoholic beverages along with the expansion of organized retail outlets for alcoholic beverages will further boost up beer consumption.

Globalization of consumer preferences will rub on Western cultures and habits to ...More Info

Malt exporters do not have to book export licences any more. The regulation came into effect on July, 1 this year.

The industry appreciates a smaller workload and a small financial advantage, as bank guarantees for export licences are not needed any more.

What is missing now is the up-to-date information on exports from each EU country. The bad news, experts lament, is that the export figures from the large EU malt export countries will be reported only with a two months’ delay, and total EU exports will be known with a delay of three months.

As per information from Eurostat there will remain a question, whether statistics are fully correct, as some EU countries base their figures on country of production, others on country of export shipments.

After modest activities in North African and Middle East markets during the past weeks, Saudi Arabia entered the market and has purchased an estimated 300 – 400,000 tons at slowly increasing price levels. Latest known price paid is US$ 340 - C&F. The corresponding FOB prices are around US$ 260 - in Northern Europe and the Black Sea.

Market prices, however, showed wide margins for small and large ports, small lots purchased inside countries and top-off quantities purchased at last minute in seaports, from US$ 235 to 275 FOB vessel.

The U.S. won the last Japanese tender with an offer of US$ 250 - FOB, Canada at US$ 270 is not competitive. Domestic feed markets in Australia are quite firm, new crop barley is worth the equivalent of US$ 240/250 - FOB in the West and 260 in the East.

Prices given above are as of September, 1.

Active for a long time in the port regions, the market of feed barley now allows itself to be drawn towards fall by the drop in prices for wheat and maize, the French La Depeche communicated on September 4.

Business activity on the domestic market remains irregular, the feed barley rate abating by about €10 per tonne since last week.

Malting barley is weakening, experts report. A number of small-scale deals enlivened the malting barley market. Prices are slightly falling, as a rule, following the course of other cereals.

The barley crop forecast* for 2008 presented by Statistics Canada is as follows:

976.1 ths tons for Manitoba (1,195.3 in 2007) 4,006.1 for Saskatchewan (3,945.2 in 2007) 5,177.5 for Alberta (5,114.3 in 2007)

Thus, total Canada barley crop may amount to 10,876.2 ths tons (10,983.9 in 2007).

Harvest has started in the south, but will hardly be finished before the end of September, experts say. Initial results are encouraging, but there is a risk of too much rain and even frost in September, the crop result will be known, when the barley is in the silo.

The CWB forecasts a local feed demand of 7.5 mln tons, which is keeping price levels too high for export markets. Nevertheless the Board hopes to sell 2.5 mln tons of barley during the crop year, a few hundred thousand tons of feed barley, and round about 1 mln tons of malting barley each to local maltsters and into export.

Malting barley FOB offers at US$ 350 are too high for markets abroad, but U.S. customers across the border pay even better prices (calculated back to places of loading).

*(in 1000 tons)

Kent's hop growers predict a good harvest this year, Kent on Line published on September, 4.

According to experts, optimism is returning to the industry. In the UK, a rainy spring favoured the country’s hops, but a damp August ruined the farmers’ hopes for a bumper harves.

"The wet weather just prior to the harvest means the quality of this year’s hops will be ok, but not spectacular," said Tony Redsell, who grows some 200 acres of hops at a farm near Canterbury.

Hops like sunny weather in August to ripen their cones - the part of the hop that is harvested: this August was the wettest on record.

"It means the size and weight will be somewhat down on last year, but still reasonable," said Mr Redsell.

Hop prices had been declining for years. Some Kent growers complained of getting as little as £16 per kilo for a crop that cost up to £24 per kilo to grow in 2006.

But last year saw drastic changes, when a worldwide shortage of hops led to some brewers being forced to pay up to £400 per kilo in order to maintain their production.

"It’s unlikely we’ll see those sorts of spot prices again this year, but we anticipate ...More Info

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