Global alcoholic drinks maker Diageo published on February, 12 the results of its performance during the six months ended December 31, 2008.

The company’s first-half net income rose to 1.14 billion pounds, exceeding the 1.08 billion-pound median estimate of seven analysts surveyed by Bloomberg. So-called organic operating profit, which excludes exchange rate movements and acquisitions, increased 6 percent. Sales, excluding acquisitions, rose 3 percent to 5.07 billion pounds, less than 2008’s 7 percent growth on that basis.

“Diageo's performance in this first half again demonstrates the resilience we have from our brand range across categories, price points and geography. The global economic slowdown has affected business in the period and in November and December this impact was more pronounced. In this difficult market environment Diageo has delivered 3% organic net sales growth, 6% organic operating profit growth and 9% underlying eps growth and we have maintained our financial strength,” Paul Walsh, Chief Executive of Diageo, commented.

According to Diageo’s report, its North American net sales of beer declined by 2%. The planned stock reduction was the main driver of a volume decline of 5% in beer. Guinness volume declined by 7% as the planned stock reduction was implemented. Price increases on over half ...More Info

The July 2008 merger of Belgian brewing giant InBev with America's Anheuser-Busch has upped the stakes in the battle for the Chinese beer market, China.org.cn posted analysts’ opinion on February, 12.

In China, apart from owning the Budweiser brand, AB InBev has inherited dominant positions in the southeast where InBev had 33 breweries, and the northeast where AB owned Harbin Beer.

The world's second largest brewer South African Breweries (SAB) owns Shenyang Snowflake Beer and Sichuan Blue Sword Beer as well as a 49 percent stake in China Resources Breweries.

Western China's beer market is dominated by Carlsberg Beer, which owns the Kunming Huashi Beer Company, Chongqing Brewery and the brewing division of the Xinjiang Hops Company.

In China as a whole, Yanjing Beer and Henan Jinxing Beer are the only two domestic brewers without foreign partners.

In 2007 the combined production of AB and InBev was 9.88 million kiloliters, compare with the 6.9 million kiloliters produced by South African Breweries (SAB) and Yanjing’s 4.2 million kiloliters.

Ding Feng, director of the Investment Advisory Professional Committee for National Food Industry Productivity Center says the fast growing China market, comprising the world's largest population of consumers, is shaping up as a major battleground for the ...More Info

Asia Pacific Breweries Ltd (APB) announced on February, 13 that attributable net profit (after exceptional items) for the group rose 13.4% to S$48.3 million for the first quarter ended 31 December 2008.

Group profit before interest, tax and exceptional items (PBIT) stood at S$87.3 million, an increase of S$4.0 million or 5% over last year. Without factoring in translation difference and gestation losses, PBIT rose 12% organically.

Attributable net profit before exceptional items (APBE) rose 2% or S$0.8 million to S$44.8 million. Excluding translation difference and gestation losses*, APBE increased organically by 12%.

Versus the same period last year, revenue increased 2.2% to S$580.2 million.

Mr Roland Pirmez, Chief Executive Officer, APB, commented on the results as follows: “APB is heartened to post first quarter gains amidst a very demanding economic climate.

We increased prices of our beers in several markets and coupled with enhanced volume, sales revenue improved by 2.2%. Attributable net profit enjoyed a healthy growth of 13.4% as we registered a one-time gain of S$3.5 million from the sale of Liquorland Limited in New Zealand. APB’s brewery operations in the Asia Pacific region have continued to actively participate in each market for greater volume and earnings. Amongst the ...More Info

SABMiller's Polish unit Kompania Piwowarska sold 15 mln hl of beer in Poland in 2008, up 6.2% versus 2007, Interfax cited a company press release on February, 12.

The company said its market share rose to 42.1% in 2008 from 40.4% at end-2007. The organic growth was at 4.7% in 2008, adjusted for Browar Belgia, which the company acquired in January 2008.

Kompania Piwowarska's flagship brand Tyskie boosted its market share to 17%. The company's other main brands all expanded on the market.

The company's total production capacities are currently at 18 mln hl a year after the completion of investments at Browar Belgia that cost PLN 250 mln and expanded the factory's standalone capacities to 7.5 mln hl.

The company’s growth compares favourably to the wider market results, with local brewing lobby ZPPP stating that beer sales rose by 1.7% to 35.6 million hectolitres in 2008.

Asahi’s total domestic beer volume sold in January, 2009 amounted to 93,154 kilolitres (7,358 thousand of cases), the brewer reported on February, 12.

The company’s sales this January were 14.2% lower than in January, 2008.

Domestic beer sales decreased by 19.5% to 64,650 kilolitres. Sales of low-malt happoshu beer fell by 17.3% to 15,782 kilolitres. New genre no-malt beer sales grew by 20% to 12,722 kilolitres.

Asahi said its Jukusen brand achieved the highest sales increase last month, + 50% to 60 cases. The Super Dry brand sold 5,400 cases (- 15.7%). Style Free sales increased by 11.5% to 680 cases in January 2009.

Canada’s prairie farmers earned a record C$7.2 billion from their wheat, durum and barley, with total pooled revenue up 94 per cent for designated barley, the CWB announced in its annual report published on February, 11.

The CWB said for designated barley it achieved C$29.47 per tonne above competitors’ prices, slightly below the target of C$33.70.

“The combination of single-desk marketing and pooled pricing worked very well for farmers in last year’s highly volatile international marketplace,” said Larry Hill, chair of the CWB’s farmer-controlled board of directors. “Not only was the CWB able to capture high international prices, its marketing structure allowed Prairie farmers to participate in price rallies when supplies were depleted in most other exporting nations.”

Hill said the volatile marketplace was not without its challenges for all participants in the grain markets. In the CWB’s case, the extreme volatility of futures and basis values, plus a large forward inverse in market values from December 2007 to March 2008, created risk-management issues for its Producer Payment Options (PPOs). Particularly challenging were the often poor correlations between U.S. futures markets and prices in other markets into which the CWB sells, coupled with the volatile basis levels. This led to a ...More Info

The interest in feed barley has completely disappeared from the French market, La Depeche reported on February, 13.

The prices of feed barley have been falling invariably. The producers of fodder are now absolutely inactive. Deals are very rare, not to say nonexistent, both for export and domestic sales.

The French malting barley market, as well as the seeding activities, has been completely immobilized by unfavourable weather forecasts. Prices show but small evolution, slightly moving downwards.

Australian agribusiness ABB Grain announced on February, 13 it has closed all of its 2008/09 season pools.

ABB’s previously open pools were its National Number 1 Wheat Pool, Number 2 Feed Barley Pool and Number 2 Malt Barley Pool, which have now all been closed effective immediately, the company said.

ABB’s pooled grain business unit manager Anthony Fitzgerald said these pools are closed for further deliveries except for existing contracts to deliver to the pools.

“The closure of these pools effectively ends our pool program for 2008/09, which is consistent with the approach we outlined in the run up to harvest,” said Mr Fitzgerald.

“History shows us that from this point onwards there are limited deliveries to pools, with the majority of remaining warehoused grain likely to be sold for cash.

“While grower deliveries to our pools have been finalised, the work involved in marketing the barley, wheat, and canola delivered to the pools continues,” said Mr Fitzgerald. “And the first distribution to growers that elected the quarterly distribution cash flow alternative will be in late March.”

ABB Grain has maintained the estimated pool returns for all its pools. ABB has reduced its grower indicator rate to 7.65%, down from 8.85%, following the recent move ...More Info

Despite the fact that domestically grown hops cover only 15% of the Ukrainian beer industry’s needs, the nation’s hop producers report problems with selling their crop 2008, Pivnoe-delo communicated on February, 13.

The situation is worsened by the economic crisis and the consequences of an extremely unsuccessful for the nation’s brewing sector year 2008. Besides, the Ukrainian market is invaded by resellers, and the hop growers are unable to sell their production directly to brewers.

According to Ivan Doskoch, General Director of NVP Zapad-Khmel, Ukraine produced more than 900 tonnes of hops last year. “This is not much, taking into account the needs of our beer industry,” he said. “According to Ukrpivo data, the hops needs of Ukrainian brewers in 2009 are 6 thousand tonnes (alpha acid 3.5). Consequently, domestically produced hops covers only 15% of the needs, and Ukraine’s brewers have to import the missing amounts,” he notes.

However, Ukrainian brewers are not eager for buying domestic hops. “The volumes and the quality of our hops are constantly improving. But this year we have faced difficulties in selling our production. Brewers take their times in purchasing hops. 2008 was unsuccessful for the beer industry, they had problems with sales. Besides, beer product ...More Info

Makoto Kanauchi and Charles W Bamforth

Abstract:
beta-Glucosidase and to a lesser extent endo-beta1-4-glucanase are present in significant quantity in raw barley. These enzymes, as well as endo-beta1-3, 1-4-glucanase, endo-beta1-3-glucanase and exo- beta1-3-glucanase, increase in activity during steeping and germination. Exo-beta1-3-glucanase stands apart through its very late development during germination and it may be a limiting enzyme in malts that have not received substantial modification. Three separate exo-glucanases were located in malt and each of them displayed a preference for beta1-3 linkages. As the principle product of endo-beta1-3, 1-4-glucanase is oligosaccharides with a beta1-4 linkage at the non-reducing end (from which end exo enzymes approach the substrate), this is likely to be a second reason (alongside the late development of the enzyme) why such oligosaccharides survive in significant quantities into wort. A third contributing factor may be the sensitivity of the exoglucanasesto ions such as potassium, sodium and magnesium. Key words: Barley, endo, exo, glucanase. Load full article, 6 pages, 347 Kb, PDF file