InBev SA shareholders approved the company’s US$52 billion (€32.8 billion) takeover of Anheuser-Busch at an extraordinary general meeting which took place on September, 29, the brewing giant reported on its official website.

They also approved changing the company's name to Anheuser-Busch InBev and a capital increase and share issue that would raise up to US$10 billion (€6.9 billion) to pay for part of the deal.

That covers the existing equity bridge financing of US$9.8 billion in place since the deal was announced in July, InBev says, with an extra margin to cover any major currency fluctuations until the company decides the detail of the share issue.

Besides, InBev’s shareholders approved the appointment of Anheuser-Busch chief executive August Busch IV as a director in the new company and changing control of Anheuser-Busch's existing US$45 billion senior credit facility and the equity bridge financing of US$9.8 billion.

InBev had already said its controlling shareholder - Stichting InBev, which owns a 52 percent stake - backed these changes with the support of at least another 11 percent.

Stichting InBev is controlled by three Brazilian financiers - including the investment banker and billionaire Jorge Paulo Lemann - and a group of Belgian aristocratic families.

The takeover ...More Info

The construction project of SABMiller RUS brewery in Russia’s Ulyanovsk region was given the status of “priority investment project in the Ulyanovsk region” by the regional authorities, Prime-Tass reported on September, 29.

The priority status gives SABMiller the right for tax benefits, as well as for support and advisement from the region’s authorities.

SABMiller RUS announced its decision to build a new high-tech brewery in the Ulyanovsk region in March 2007. Direct investments in the development of the region are expected to exceed $220 mln - $50 mln more than it was reported previously. The facility’s initial power will be 3 mln hl of beer annually, and the inauguration of the brewery is planned for spring 2009.

SABMiller’s Russian unit already owns two breweries in the country – in Kaluga and Vladivostok. Its portfolio includes such popular international brands as Miller Genuine Draft, Pilsner Urquell, Velkopopovicky Kozel, Peroni Nastro Azzurro, Grolsch and a leading local brand Zolotaya Bochka, as well as the licensed Redd’s and Holsten.

Peter Swinburn, the new chief executive officer of Molson Coors Brewing Co., said the company has now improved its shareholder value in the last three years by 90%, ReportonBusiness.com published on September, 29.

According to Mr Swinburn, the company is now in a very good position with cash, so if the the right opportunities come up, Molson Coors would like to take advantage.

As to the question where the company was looking to buy, the CEO answered: “We will not be myopic. We will look to where the advantages are. We want depth rather than breadth, so we will look to a position where we would be No. 1 or No. 2 in a market if that came up. We're not interested in just planting the flag for the sake of it.”

Peter Swinburn said a full merger with SABMiller might create truly global scale. “It would be a deal that would create value,” he said, “but the issue is we're not in that market. We are in the market of making sure we grow our company just as Miller wants to grow its company and so we will be competitors outside the U.S.”

“The deal in the U.S. made sense for both parents; ...More Info

Carlsberg Polska reported that in the first half of 2008 it sold 2.23 mln hl of beer, which is comparable with the results achieved last year, the Polish Market posted on September, 29.

The brewer’s sales revenue increased by 8% year on year to PLN488.2 mln (€145.3 mln). Operating profit grew by 32%, reaching PLN33 mln (€9.8 mln).

The increase in profitability resulted from the dynamic growth of the premium brands Carlsberg and Okocim, in addition to improved effectiveness, the company said.

Carlsberg was the main sponsor of UEFA EURO 2008. The numerous promotional activities relating to the event led to a 35% boost in sales, which increased the market share of the company to 2.5% in terms of value and gave it pride of place on the international premium beer market in Poland.

Harnas remains the most prominent of Carlsberg’s brands in Poland, it is reported. The company also introduced a new seasonal variety of Kasztelan – Kasztelan Niepasteryzowane (non-pasteurised beer), and Bosman beer has now new labelling.

According to experts, sales volume growth in the beer industry in Poland fell short of expectations because of an increase in the prices of raw materials. Nevertheless, Carlsberg Polska succeeded in strengthening its position ...More Info

A shipment of 23 tonnes of malt extract produced by Coopers is due to arrive in Vostochniy, a major port at the eastern end of the Trans-Siberian Railway in Russia, in the next few days, the maltster reported on October, 1.

Coopers marketing manager, brewing products Scott Harris, said the malt extract that had been ordered was going to be used in the production of beer.

“The order was for a lighter colour of malt extract to suit the beer style required,” he said. “We are hopeful this will develop as a long-term contract for Coopers.”

Harris said the Russian sale had been arranged through agents in Australia and was the first time Coopers had exported malt extract into that country.

“Russia is a huge potential market and we are hopeful we can build our business further in coming months,” he said.

Coopers is Australia's largest producer of malt extract and already exports to food producers in the USA, Canada, Japan, China, Malaysia, Indonesia, Hong Kong, Thailand, Korea and India, as well as throughout Australia.

Elevator cash prices for both feed and malting barley continued to retreat now that the 2008 harvest is completed in the region, but for differing reasons. Since feed barley prices are tied to corn prices, the recent decline in that commodity has had a negative impact on feed barley prices, Larry Raap, grain merchandiser for Sun Prairie Grain in Minot, was quoted as saying by Farm & Ranch Guide on September, 25.

Malting barley, on the other hand, has seen little movement, since the maltsters are pretty well filled up at this time. This lower spot demand has softened the malting barley prices.

“It seems like there is enough barley for right now,” Raap said. “The crop around here was larger than anybody anticipated. Although I don't have exact yield figures, I would say there were many places where the average was over 70 (bushels per acre), and overall the quality will be fine.”

Raap said there were some issues with the early seeded barley in relation to the plump where there might be some minor discounts. Because there wasn't a VOM issue this year, it's just plump or protein that is of concern.

“It's hard to move malting barley right now because they ...More Info

Canadian Wheat Board released its September Pool Return Outlook (PRO) for the 2008 – 2009 crop year on its official website on September, 25.

Feed barley prices decreased by C$23 and designated barley declined C$13 from the mid-September PRO, the Board reported.

The global grain trade is closely linked to international financial markets for currency, credit, and other commodities. Recent extraordinary events are creating high levels of volatility and uncertainty in all markets. These events are also having a negative impact on global economic growth and are changing the buying behaviour of grain customers. These conditions are expected to take some time to stabilize and have the potential to significantly impact overall pool, the Board said.

PRO Commentary

Feed barley

Feed barley prices in North America dropped during the past month due to the ongoing barley harvest, with good yields in Canada and the United States. Corn futures values have dropped by almost five per cent since the last forecast. Export competition from Europe and the Black Sea region, each with larger crops than 2007, has pressured international prices against limited buying interest in the Mediterranean and Middle Eastern markets. Dryness in Australia is still providing limited support for international values.

Designated barley

International malting barley prices ...More Info

The Estimated Pool Return for Grain Pool's No.1 Feed Barley Pool has dropped AU$10 this week and is now AU$255 - AU$265 per tonne, Farm Online communicated on September, 29.

According to CBH, the decline is due to large export surpluses from the Black Sea and former Soviet Union which continue to flood the Saudi Arabian feed barley market.

A drop in freight rates, as well as the weakening Euro against the US dollar, has seen European grain more competitive in the world market, the company reported.

The CBH Group’s marketing arm, Grain Pool Pty Ltd is a specialist marketing organisation supplying grain to the major markets of the world. Since its formation in 1922 as the Wheat Pool of Western Australia, the Grain Pool has grown substantially and is now Western Australia’s third-largest exporter selling around three million tonnes of grain for an annual turn-over in excess of AU$800 million.

Ukraine’s Ministry of Agrarian Policy has established the minimum and maximum purchasing price for barley, Zerno Online communicated on October, 1.

According to the decree, the minimum price for first class barley (for the food industry) is 1,127 UAH/t, maximum – 1,306 UAH/t.

Minimum price for second class barley (for the malt industry) is 1,090 UAH/t, maximum – 1,263 UAH/t.

Prices set for third class barley (for the fodder industry) are 850 UAH/t and 985 UAH/t respectively.

D. M. Armitage, D. A. Cook, and D. E. Baxter

Abstract

J. Inst. Brew. 108(2), 178–186, 2002 Comparison of changes in temperature, moisture content, infestation and germination were made in six aerated 20 t bins of malting barley. Two were at about 13.5% moisture content, three at about 15.5% moisture content, and one at about 16.5% moisture content. The grain started at between 20-25°C and, during aeration, fell at a rate dependent on the moisture content, damper grain being cooler, presumably due to evaporative cooling. The ‘high’ moisture content grain was often over 5°C cooler at 1m and 2m than the ‘low’ moisture content bins. Moisture uptake at the surface was related to bulk moisture content and trends in mite population changes were related to moisture content. Mite population achieved highest numbers at the grain surface but usually before the moisture content absorption was at its peak. They were commonest in the ‘high’ moisture content bin and least numerous in the ‘low’ moisture content bins. There were no apparent differences between bins in the numbers of insects trapped, for instance they were not less numerous in the coolest ‘high’ moisture content bin. However, the trends of numbers trapped followed a similar pattern in all bins; normally O. surinamensis Load full article, 9 pages, 299 Kb, PDF file