Carlsberg’s shares may rise 17 percent in the next 12 months, outpacing a 15 percent gain for InBev, Bloomberg cited analysts forecasts on September, 11.

The bigger beer maker is “really losing against Carlsberg” in Russia, said Vangelis Bratsikas, a portfolio manager at Clariden Leu in Zurich. He helps manage about 120 billion Swiss francs ($106 billion), including InBev and Carlsberg shares.

Sales growth at Carlsberg will accelerate to 40 percent this year from 9 percent in 2007, buoyed by the Baltika takeover, according to Alison Donohoe, an analyst at Natixis Securities in Paris who rates the shares “add”. InBev's growth will probably slow to 5.7 percent in 2008 from 8.3 percent. That excludes the purchase of Anheuser-Busch, which it aims to complete by year - end.

While InBev is set to get the bigger initial boost from its acquisition, the outlook for Russian growth is more favourable than in the U.S., data from London-based Euromonitor International suggest.

Euromonitor states that Russian beer sales will expand 6.7 percent to $20.7 billion this year, beating a 0.6 percent increase in Western Europe and 0.1 percent in the U.S.

Carlsberg took control of St. Petersburg-based Baltika in April as part of its $10 billion ...More Info

Even not being sold globally, China’s Snow Beer is forcing the US Bud Light out of the position as the world’s best selling beer, US News communicated on September, 11.

According to market analysts, Snow Beer, the product of a joint venture between London-based SABMiller PLC and China Resources Enterprise Ltd., will leave behind or has already done so to Anheuser-Busch Co.'s Bud Light in terms of consumption, depending on how the numbers are crunched.

"I can confirm that the Chinese brand Snow is now the largest beer brand in the world," says Kevin Baker, account director for alcoholic beverages at the U.K.-based market-research firm Canadean Ltd.

The firm says, about 51.2 million hectolitres, or about 1.35 billion gallons, of Snow were consumed last year, compared with 48.4 million for Bud Light as a stand-alone brand.

Another research firm in the U.K., Plato Logic, says Bud Light remained the top brand in 2007, with 51.8 million hectolitres consumed to Snow's 51.2 million. But that slim lead faces a challenge: China Resources said last week that the Snow brand's sales volume jumped 22% in the first half of this year compared with a year earlier, putting it on pace to unseat Bud Light, which ...More Info

Steel Partners Japan Strategic Fund delivered to Sapporo Holdings Limited a letter calling on the Board of Directors to immediately negotiate terms that would allow Steel Partners to increase its ownership in the company, MarketWatch reported on September, 9.

It was announced that, in case the Board is not prepared to enter into such negotiations, Steel Partners called on Sapporo to formally end the AWS process and allow Steel Partners to commence a tender offer, or engage an internationally recognized investment bank to fully explore strategic alternatives, including the possible sale of the company or certain business lines.

In Steel Partners’ opinion, the Board is out of touch with current market conditions and its unwillingness to enter negotiations runs counter to Tokyo Stock Exchange and METI regulations and guidance.

"The METI Corporate Value Study Group stated that the AWS is supposed to bring together potential bidders and companies' boards of directors for meaningful negotiations. Yet the Board has chosen to draw out this process while refusing to negotiate with Steel Partners," wrote Warren Lichtenstein of Steel Partners.

Steel Partners sent the letter in response to Sapporo’s request that Steel Partners meet with the Board and provide suggestions on how the improve the ...More Info

Asia Pacific Breweries (APB) appointed a new chief executive to head its India unit amid desperate attempts by it to fend off mounting pressure from Vijay Mallya-led United Breweries (UB) to close down independent operations, Trading Markets published on September, 9.

APB’s newly created Indian operation will be headed by Ashwin Deo.

The development comes even as UB chairman Vijay Mallya declared that he was unwilling to re-negotiate his opposition to APB continuing with parallel operations. UB's new partner, Dutch brewing giant Heineken, which inherited Scottish & Newcastle's 37.5 percent stake in the Indian beer maker, is also the lead shareholder in APB.

It was reported that Heineken and UB have been exploring several options to avoid a clash of interest in the market.

APB director Vivek Chhabra confirmed the appointment of Mr Deo, who will also head operations in Sri Lanka.

On September, 8, United Breweries said the latest indication from Heineken suggested the "unification of APB operations under UB management."

India's largest brewer also expects Heineken and APB to "unlock" local joint venture partner, CK Jaipuria Group, ahead of the unification process.

"I have told Heineken that my stand on APB and Tiger beer in India is non-negotiable," Mr Mallya said.

Experts expect ...More Info

Brick Brewing Co. Limited, Ontario's largest Canadian-owned and Canadian-based publicly held brewery, released its financial results for the second quarter and six months ended July 31, 2008, the brewery’s official site informed on September, 9.

The results of the second quarter of fiscal 2009 for Brick Brewing produced EBITDA (Earnings before interest, income taxes, depreciation and amortization) of CA$454 thousand, compared with CA$942 thousand in the same period last year. The reduction was the result of higher commodity/input costs and reduced volumes when compared to last year, the company published.

"Rising commodity costs continue to be a challenge and have reduced our earnings by CA$372 thousand in the quarter," said George Croft, President and CEO of Brick Brewing.

"We must continue to streamline our operations and seek to eliminate all non-strategic costs in the organization to offset these increased input costs," he added.

The second quarter net revenues fell by 9.9% to CA$8.7 million due primarily to a decline in beer volumes. The same period last year saw net revenues of CA$9.6 million.

The rainiest summer on record in Ontario was responsible for an overall industry volume decline during this period. The volume decline was also fostered by aggressive price promotion activity by ...More Info

India's United Breweries Group said that at least three strategic investors are interested in buying a stake in group company, United Spirits Ltd., Dow Jones communicated on September, 10.

"There are at least three strategic investors and Diageo (DGE.LN) is one among them," UB Group Chairman Vijay Mallya told reporters on the sidelines of United Breweries Ltd.'s annual shareholders meeting.

As for the amount of the stake sale, Mallya said: "Depends on various things, who the potential investor is, what is the price offered, what they bring to the table, what they will do for us, and what we will do for them."

United Spirits sells spirits such as McDowell's No. 1, Royal Challenge and Antiquity, while United Breweries, another UB Group firm, makes the popular Kingfisher and other brands of beer.

According to Mallya, the group is not interested in buying UK - based brewer Cobra Beer Ltd., which also sells beer in India.

"I have heard from merchant banking sources that Cobra Beer is looking for an investor. What will I do acquiring another brand of Indian beer," Mallya said.

Through last month’s acquisition of the malting division of Archer Daniels Midland Co, world's biggest malting company, Malteurop, became the owner of New Zealand’s sole malt supplier and now is looking to Asia for growth, the Stuff posted on September, 9.

The acquisition comprises New Zealand operations in Canterbury and Rangitikei.

Malteurop New Zealand managing director Ian Maccan said the new ownership could lead to organisation changes, but not redundancies.

"For Malteurop, it's business as usual. The business wasn't bought to be closed, it was bought to be strengthened and enhanced and hopefully grown."

The company is the sole supplier of malt to Lion Breweries and DB. It contracts farmers to grow 12,000 hectares of barley, mostly in Canterbury but also in Rangitikei and Wairarapa.

Some 15 per cent of its production is exported, but Maccan said the company was keen to grow that.

The Asia-Pacific region was one recording growth in the beer industry and New Zealand was well positioned to benefit from that, he said.

Similar varieties of barley were grown in New Zealand during the off-season in Europe, so it gave the company a degree of security of supply, Maccan said.

"Asia is a growing market for beer and the climate (in Asia) does not ...More Info

According to France’s Ministry for Agriculture and Fisheries estimates, this season’s barley crop is to reach record 12.042 mln tonnes, which is 27% more than last year’s harvest and by 18% higher than the average rates of the last five years, Zerno Online reported on September, 10.

The winter barley production is expected to grow by 27% to 8.6 mln tonnes, the spring barley – by 28% to 3.4 mln tonnes.

The total yield growth became possible mostly due to crop yield’s increase to record 68 centners/ha. Practically all regions report higher than usual crop productivity. Picardy is announced to have harvested the highest crop from a hectare – 90 centners/ha.

The nation’s 2008 barley acreage was increased by 4% compared to last year’s harvest.

Experts report that France’s malting barley crop is very large and of a very good quality.

Belgium, the Netherlands and Germany will have to cover the bulk of their import demand from France, analysts state.

Large European industries refuse to take in Cervoise barley, on the other hand the market reports sales of around 150,000 tons Cervoise to China.

As of the beginning of the month, harvest in Germany was finished except for some fields in higher altitudes. Experts communicated that harvested quantities are good, quality is quite satisfactory in the largest part of the country, only in Northeast Bavaria and the Baltic coast regions, where planting had taken place late in spring, proteins are too high.

According to experts, about 10% of the German malting barley crop had to be down-graded to feed barley.

The first official German crop estimate included 2.651 mln tons of spring barley, 550,000 tons more than last year.

The Malting Barley Association projected an availability of 1.527 mln tons of domestic spring malting barley, 440,000 tons above last year’s figure.

The Maltsters Association published a similar spring barley estimate plus expected receivals of 90,000 tons of two-row winter barley.

Industry needs were forecasted to amount to 2.3 – 2.4 mln tons, i.e. an import demand of 7 -800,000 tons. German maltsters also produce round about 100,000 wheat malt per year.

UK barley plantings had shown an ideal picture, winter barley up 10% to 416,000 ha and spring barley up 14% to 565,000 ha, of which 320,000 ha in Scotland, it was reported on September, 1.

As per the annual HGCA variety survey, 72% of the planted barley had been malting varieties.

The British winter barley crop was brought in with fine yields and qualities. As of the beginning of the month, the spring barley harvest in England was finally finished up to Lincolnshire. The last 20% were combined at the end of August and had suffered minor weather damage.

Rains had slowed down harvest in August and continued to prevent harvest progress in Yorkshire, where 30 – 40% of spring barley remained to be combined, and in Scotland, where 50% were still in the fields earlier in the month.

In Scotland, which produces half of the U.K.’s spring barley crop, around 35% are of the variety Oxbridge. This variety is very sensitive to high moisture; there are many reports of splits and pre-germination.

Experts predict that the total U.K. barley crop will be close to 6 million tons, but the final outcome of the malting barley crop will only be known in a few weeks’ ...More Info

95% of Denmark’s spring barley was harvested at the beginning of the month, experts reported. The country had expanded its spring barley acreage from 462 to 586,000 ha, however, dryness reduced average yields by about 20% to 4 tons/ha, resulting in a crop of 2.35 mln tons.

It is reported that drought conditions in May and June also provided for excessive protein contents. It is assumed that only 500 – 750,000 tons of the harvested spring barley qualify for malting under strict contract rules of max. 11.5% protein.

Under more relaxed specifications of max. 12 or rather 12.5% availability would be much larger.

Danish exporters had sold an estimated 750,000 tons of malting barley long before harvest and have meantime bought back one third of their sales. The washout suited both sellers and buyers, who could cover their cancelled purchases in France at cheaper prices. Danish export surplus is seen as not much more than 300,000 tons, therefore further washout transactions are likely to follow, experts suggest.

The Euromalt overview of malting barley varieties produced in the EU in 2007 – 2008 states as follows:

Austria grows the Bodega, Xanadu, Roxana, Bojos, Antigone, and Margret barleys. The new kinds in the country are Marthe and Class.

Finland produces such varieties as Scarlett, Barke, Braemar, Prestige, Saana and Annabel, whereas the Polartop barley is designed for special use.

Spring barley varieties preferred by France are: Henley, NFC Tipple, Pewter, Prestige, Scarlett, and Sebastian.

France’s winter barley 2007 – 2008 comprises the Vanessa (2 rows), and 6 rows Esterel and Azurel kinds.

The varieties in the country’s industrial and commercial observation are the spring Beatrix, Bellini JB Maltasia, Thorgall, and Vivaldi, as well as the winter Arturio, Cartel, and Cervoise (6 rows).

Spring barleys Azalea, Calcule, Concerto, and Victoriana, and winter Malicorne and Metaxa (2 rows) are the 2007 – 2008 varieties under technical validation in France.

Germany in 2007 – 2008 grows spring Braemar, Marthe, Belana, Pasadena; and winter Vanessa, Winmalt, Malwinta.

Optic, Scarlett, Barke, Carafe, Braemar, Regina are varieties produced this year by Italy.

The Netherlands approved initially the varieties of Clas and ...More Info

With a good hop harvest predicted for 2008, the demands of the brewing industry can be met for the first time since 2002. Small stockpiles can also be built up, Stephan Barth, managing partner of Joh. Barth & Sohn, in Nuremberg was quoted as saying on the company’s official site on September, 8.

According to Barth, Germany expects a record harvest in every respect. Other European hop-producing regions are also likely to have good harvests, he said.

However, he added that it was not yet possible to predict the total harvest yield, or even the expected alpha hop yield, because information regarding the predicted harvest in the USA is not yet available.

According to Barth, the steady partnerships maintained with the hop farmers throughout the last few difficult years, particularly in Germany and the USA, are now proving their worth.

“These farmers have been the backbone of the hop industry and that’s why they are now reaping their rewards in the form of advance contracts lasting up to ten years”.

“That means long-term security, which in turn enables farms and farmsteads to be enlarged, debts to be paid off, and means investment, success and better living standards,” he said.

In this situation in particular ...More Info

Birthe Møller, Jose Luis Molina-Cano and Lars Munck

Abstract

J. Inst. Brew. 108(3), 294–302, 2002 In earlier studies concerning vigour, where subsamples are heattreated before germination there was found heat-sensitive as well as heat-resistant barley samples. The vigour model developed by Ellis and Roberts and further developed at Carlsberg, could only describe the heat-sensitive barleys. Seventeen samples of the “Alexis” variety grown widely in Europe were collected from the EBC trials in 1994 in order to see if heat resistance in barley was influenced by different growing conditions. We found both heat-sensitive samples following the vigour model as well as pronounced heat-resistant samples, but these were not divided according to growing conditions. The germination curves dependent on heat treatment and germination time were evaluated by Principal Component Analysis (PCA). Heat-resistant barley samples could be differentiated from heat-sensitive samples already after ½ h of heat treatment at 68°C (12% moisture) and after 3 days of germination. The barley samples were analysed with regard to malting quality. The PCA evaluation of the data divided the samples according to growing location, mainly due to differences in protein and
-glucan. However, the malting analyses could not describe the differences in heat resistance and sensitivity of the barleys. The biochemical background of the heat resistance found is discussed on the basis of literature. Our findings should give an experimental basis for exploiting a biochemical principle for heat resistance, which is formed during grain filling and consumed during storage and germination. Key words: Heat resistance, malting barley quality, principal component analysis, vigour. Load full article, 9 pages, 278 Kb, PDF file