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E-Malt.com Newsletter 08a
February 16 - February 18, 2009
Open!
Click here to get full size Newsletter


Quote of the week

"There's only one corner of the universe you can be certain of improving, and that's your own self"
Aldous Huxley
Currency Rates
Base Currency: Euro, EUR
on 18-February-2009

1 EUR = 1.2653 USD
1 EUR = 0.889 GBP
1 EUR = 1.5886 CAD
1 EUR = 1.9715 AUD
1 EUR = 116.592 JPY
1 EUR = 2.9089 BRL
1 EUR = 45.7981 RUB
1 EUR = 8.663 CNY
Base Currency: US Dollar
on 18-February-2009

1 USD = 0.7904 EUR
1 USD = 0.7026 GBP
1 USD = 1.2555 CAD
1 USD = 1.5582 AUD
1 USD = 92.141 JPY
1 USD = 2.299 BRL
1 USD = 36.1957 RUB
1 USD = 6.8467 CNY
Currency Rates Chart

Equities of the Largest Breweries

Equities of the Largest Breweries

Average Market Prices Change trend

February 18, 2009

Type Crop 2008 Crop 2009
2rs Barley EUR125.0-129.0 EUR158.0-162.0
6rw Barley EUR118.0-120.0 EUR138.0-142.0
2rs Malt EUR346.0-348.0 EUR379.0-381.0
6rw Malt EUR335.5-337.5 EUR353.0-355.0
Feed Barley EUR107.0-111.0 nq  

Note: Just click on the price link and you will be led to our Market Price History. Average barley market prices are French and are estimated on FOB Creil basis. Average Malt Prices are theoretical and based FOB Antwerp being estimated on French malting barley. The changes are compared to last Newsletter's prices. Arrows indicate the direction of the change.


Top Industry News

World: Beer production on the rise in 2008 ...Click here
The Netherlands: Heineken reports 2008 results, cautious on revealing expectations for 2009 ...Click here
Australia: Foster’s reports results for six-month performance, wine review ...Click here
Denmark: Carlsberg’s total beer sales volume grows 10% in 2008 ...Click here
United States & Japan: Steel Partners changes mind on buying Sapporo’s outstanding rights ...Click here
South Korea: InBev said to have completed the process of accepting bids for its Korean unit, Lotte Group reportedly among the bidders ...Click here
Ukraine: New Obolon malthouse now in full operation ...Click here
Australia: Australia’s total winter barley production estimated at 6.8 mln tonnes in 2008/2009 ...Click here
United States: Despite weakening prices, barley still continues to show a profit - expert ...Click here
United Kingdom: Farmers still in the dark on contract barley prices though the malting industry fundamentals are reported to be strong ...Click here




Philippines: San Miguel Brewery considers a $300 mln backup plan - CEO ...More Info
Canada: CWB increases initial payments for malting barley ...More Info
Laos: Carlsberg expands its Lao Brewery with an eye for exporting to Thailand ...More Info
Mexico: Femsa says Mexico’s recession will slightly reduce sales in the Oxxo trading network ...More Info
Japan: Ministry of Agriculture purchases 185 thousand tonnes of feed barley via tender ...More Info
Australia: New low-carb Peroni beer to be available nationally from March ...More Info
Russia: Baltika board of directors recommends an increased dividend for 2008 ...More Info
Go to our news database with more than 14407 articles.
Today with the possibility to be translated in 7 different languages!
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Brewery News

World: Beer production on the rise in 2008

Beer consumption is rising in many countries but the crisis will most likely hamper the growth – this was the general opinion pronounced at the meeting organised by Arvalis in Lille (France) on February, 5, La Depeche reported.

Previously forecast to increase by 2.5%, world’s beer production is not expected to rise in 2009 anymore. The global beer output is expected to drop by 80 mln hl, according to Alain Caekert (Malteurop). He said the drop will be a direct consequence of the economic crisis which will hit the market in full growth: estimated at 1.8 bln hl in 2008, world’s beer production grew 14% in four years.

The economic environment affects beer consumption all around the world, but in different ways. In Western countries, the demand is expected to remain stable, or even to grow. Here, the beer will benefit from the decrease of demand of de luxe drinks – liquors and wine (except in France). Brewers should put stress on LowCost beers, experts advise.

On the contrary, in the zones with previously strong growth, the industry might face “a partial slow in demand”, beer being a de luxe beverage this time.

Beer production has grown sharply in many countries. Russia ...More Info


The Netherlands: Heineken reports 2008 results, cautious on revealing expectations for 2009

Dutch brewer Heineken NV reported on February, 18 a 74% fall in 2008 net profit due to lower than expected profits from new businesses and net financing charges of EUR757 million.

Heineken - the world's third largest brewer by volume after Anheuser-Busch InBev NV - said net profit fell to EUR209 million in 2008, from EUR807 million a year earlier, even though sales rose to EUR14.3 billion, up from EUR11.2 billion, mainly boosted by the acquisition of U.K. brewer Scottish & Newcastle, which Heineken bought with Carlsberg in April.

Heineken said the group's beer volume grew by 16% (of which 3.6% was organic) to 161.5 million hl in 2008, from 139.2 million hl in 2007. Consolidated beer volume totalled 125.8 million hectolitres, +19%, of which 3.5% was organic. First time consolidations added 16.7 million hectolitres, of which 12.8 million hectolitres came from Western Europe (mostly S&N), 3.0 million hectolitres from Central and Eastern Europe, and the remaining 900,000 from the Americas and Africa.

Volume of the Heineken brand increased 4.7%, adding 1.2 million hectolitres, mainly driven by performances in Africa and Asia. The brand gained share in the international premium segment. Total volume of the Heineken brand, including The Netherlands, was 29.1 million ...More Info


Australia: Foster’s reports results for six-month performance, wine review

Australia’s brewing giant Foster’s Group Limited published on February, 17 its results for the six months ended December 31, 2008.

Foster’s said its net profit increased by 4.5% to AU$411.1 million, with earnings per share up 6.5% to 21.4 cents.

Net sales revenue increased 2.2% to AU$2,407.6 mln and earnings before interest, tax, significant items and SGARA (EBITS) increased 4.5% to AU$663.2 mln. On a constant currency basis net sales revenue declined 0.9%, EBITS declined 1.8% and earnings per share increased 0.9%.

“In the face of very unique global trading conditions, our balance sheet is strong, our medium term funding secure and we continue to generate outstanding operating cash flows,” said Ian Johnston, Chief Executive Officer.

Beer, Cider and Spirits (BCS) in Australia, Asia and Pacific (AAP) continued to perform strongly with beer net sales revenue in Australia up 6.2% and AAP BCS EBITS up 5.6% on a constant currency basis.

“We’ve seen a strong comeback in Australian beer with underlying volume up over 3% for the half and we finished the year with around a 52% value share of the Australian beer market4,” Ian said.

In Australia Foster’s beer volume and net sales revenue growth improved through the first half. Foster’s underlying beer value share ...More Info


Denmark: Carlsberg’s total beer sales volume grows 10% in 2008

In 2008, Carlsberg’s pro rata organic beer volume growth totalled 3% (33% including acquisitions), driven by mid-single-digit growth in Eastern Europe and double-digit growth in Asia, the Danish brewer said in its report on the last year’s results on February, 18.

Carlsberg achieved progress in all geographic segments. Net revenue was DKK 59,944m (DKK 44,750m in 2007) with organic growth of 8% (5% in DKK), and operating profit before special items was DKK 7,979m (DKK 5,262m in 2007) with organic growth of 9% (6% in DKK).

Operating profit before special items increased by 52% to DKK 7,979 mln (DKK 5,262 mln in 2007) with organic growth of 9% (6% in DKK).

The company’s beer sales volume grew to 126.8 mln hl last year (115.2 mln hl in 2007). Carlsberg Group beer volumes were up 33% to 109.3 mln hl of beer (calculated pro rata) versus 82.0 mln hl in 2007. Organic growth accounted for 3% of this increase and acquisitions for 30%.

Strong focus on brand-driven value growth through pricing and mix continued, and price increases were implemented throughout the year. However, above-average volume growth in low-priced markets capped the net effect of growth on net revenue per hl beer at 5%, the brewer ...More Info


United States & Japan: Steel Partners changes mind on buying Sapporo’s outstanding rights

Steel Partners Japan Strategic Fund (Offshore), L.P. delivered to Sapporo Holdings Limited on February, 17 a letter stating that it is withdrawing its current proposal to acquire 33.3% of the outstanding voting rights of Sapporo at ¥875 per share, Business Wire reported on the same day.

Steel Partners said it was withdrawing the proposal due to the brewer’s ever-worsening financial and operational performance and continued refusal to negotiate the terms of an acceptable offer to shareholders.

In the letter addressed to Mr. Takao Murakami, Representative Director and President of Sapporo, Warren Lichtenstein of Steel Partners wrote: “Over the last two years, Steel Partners has repeatedly attempted to engage in an open dialogue with the company’s Board of Directors (the “Board”) and to discuss and negotiate our proposal with you. At no point were you or the Board willing to discuss, let alone meaningfully negotiate, an acceptable price or terms of a tender offer or other share acquisition plan.”

Mr. Lichtenstein added: “Unfortunately, Sapporo’s performance continues to deteriorate, negatively affecting shareholders and stakeholders who have watched the company’s prospects diminish and its share price drop lower and lower.”

As a result of management’s poor performance, Steel Partners said it intends to vote against the re-election ...More Info


South Korea: InBev said to have completed the process of accepting bids for its Korean unit, Lotte Group reportedly among the bidders

According to analysts and media reports, the Belgium-based brewing giant Anheuser-Busch InBev is believed to have completed the process of accepting bids to sell Oriental Brewery, the second-largest beer brewer in South Korea, Asia in Focus communicated on February, 17.

“Five to six companies are likely to join the final bids to acquire Oriental Brewery Co... Ten bidders may join the initial bidding, which takes place in Hong Kong today [on February, 17] including Lotte Chilsung Beverage Co., SABMiller PLC, Affinity Equity Partners and MBK Partners LP,” a report by edaily said.

According to Asia in Focus publication, South Korea's retail conglomerate Lotte Group hinted that it may have submitted a bid to buy InBev’s Korean brewer.

"Lotte has long considered acquiring Oriental Brewery," said a high-ranking official at the South Korean conglomerate.

"If we didn't submit a bid, we could say so," the official said on condition of anonymity. "But, we can't say that for now."

A successful takeover of Oriental Brewery would allow Lotte, the country's fifth-largest conglomerate, to enter the beer business.

Media reports have said the sale of Oriental Brewery is being arranged by the Hong Kong office of JPMorgan Chase & Co.


Malt News

Ukraine: New Obolon malthouse now in full operation

Obolon’s new malthouse has been in full operation since this January, the Ukrainian brewing company reported on February, 17.

“Total investments in Obolon’s malthouse situated in Tchemerovtsy (Khmelnitsk region) amounted to about UAH 500 mln. Amid global crisis, the launch of a modern malt factory is not just a company achievement but an event of national importance. This is a real breakthrough,” a company representative claimed.

The plant’s annual capacity is 120 thousand of malt, for which 170 thousand tonnes of barley is required.


Barley News

Australia: Australia’s total winter barley production estimated at 6.8 mln tonnes in 2008/2009

The Australian Bureau of Agricultural and Resource Economics (ABARE) published its Australian Crop Report on February, 17.

Poor spring conditions hampered barley production in 2008-09, which is estimated at 6.8 million tonnes, 900,000 tonnes more than was produced last season, but less than initially forecast, ABARE said.

New South Wales’ barley production is estimated to have more than doubled in 2008-09, to be 1.6 million tonnes (+ 139%), reflecting a significant improvement in yields (1.58 t/ha) from the previous year’s drought affected crop. The area planted to barley was 3 per cent lower in 2008-09, which is just less than 1 million hectares.

The area sown to barley in Victoria in 2008-09 was around 950,000 hectares, which is 3 per cent higher than the area sown in 2007-08. Despite the increase in area planted, barley production in 2008-09 fell relative to the previous year to an estimated 869,000 tonnes(- 21%). Barley production in 2008-09 is estimated to have been around 35 per cent below the average of 1.3 million tonnes in the five years ended 2006-07. Victoria’s barley yields were 0.92 t/ha in 2008 – 2009.

Queensland’s production of barley is estimated to have increased by nearly 40,000 tonnes to 197,000 tonnes in 2008-09 ...More Info


United States: Despite weakening prices, barley still continues to show a profit - expert

The current economic downturn has made its presence felt in the US barley markets the past few weeks, Farm & Ranch Guide cited on February, 16 Marvin Zutz, the executive director the Minnesota Barley Growers Association.

The overall weakening commodity prices have taken feed barley down with them and the lessening demand for beer has had a lowering influence on malting barley prices.

“The barley market has softened, along with the other markets,” Zutz said. “A large part of that is the uncertainty out there now, not only in the domestic market, but the global market as well.

“And for the malting barley, especially, the beer market is extremely flat at this time,” he continued. “The beer market hasn't been immune to the recession. Beer production rose around 14 percent on an annual basis from 2005 to 2008, but since that time we haven't seen any rise. We are now fighting to maintain our market share.”

The feed barley market, on the other hand, has been following the corn market, which in turn has been following the stock and oil markets down, according to Zutz.

“When the stock and oil markets start to turn around, maybe we will see the corn and feed barley markets ...More Info


United Kingdom: Farmers still in the dark on contract barley prices though the malting industry fundamentals are reported to be strong

Malting barley growers left a conference in Edinburgh on February, 12 still not knowing the price they will receive for this year's crop, The Press and Journal reported on February, 13.

The only guarantee Greencore Malt commercial director Adrian Dyter gave was that prices would be below the £165 a tonne that it is claimed farmers need to break even.

Growers have for weeks been calling on the Scotch whisky distillers and their maltster suppliers to declare their hand so that they can decide if the crop is going to be worthwhile to plant or not.

Mr Dyter did, however, use the event to give a clear analysis of a malting market where the fundamentals are strong with investment in distilleries under way for the first time in decades.

But he warned: “If there is a health warning here it circles around changes in the world economy affecting demand."

Mr Dyter also noted the planned increase in malting capacity. Bairds Malt at Arbroath will have 57,000 tonnes of extra capacity by January 2010, Greencore at Buckie has just added 19,000 tonnes, while Simpsons at Berwick will have another 80,000 tonnes of capacity on stream by this May. That all adds up to 156,000 tonnes of ...More Info

Scientific Digest

Flavour Instability of Pale Lager Beers: Determination of Analytical Markers in Relation to Sensory Ageing

Sofie Malfliet, Filip Van Opstaele, Jessika De Clippeleer, Evelien Syryn, Koen Goiris1, Luc De Cooman and Guido Aerts

Abstract:
J. Inst. Brew. 114(2), 180–192, 2008 Flavour changes of six Belgian pale lager beers were studied in order to estimate the importance of different parameters and reactions in relation to the ageing process. An attempt was made to link analytical data with sensory evaluation using multivariate statistical analysis. Partial least squares regression techniques (PLSR) were employed on the analytical and sensory data. As apparent from the PLSR model, significant indicators of lager beer ageing are aldehyde markers (especially total aldehydes, furfural, hexanal, 2-methylpropanal, 2-methylbutanal, and 3- methylbutanal), cold and permanent haze, and beer colour. Conversely, compounds or parameters that load negatively in the PLSR model for beer ageing are trans-isohumulones, cis-isohumulones, total bitterness, the T/C-ratio, polyphenolic markers (especially proanthocyanidins), the flavanoid content, and, to a lesser extent, the TB-index and reducing power (TRAP). The integrated analytical-sensorial methodology is proposed as a useful tool for evaluation of the flavour instability of pale lager beers. Key words: analytical markers, beer ageing, flavour instability, partial least squares regression. Load full article, 5 pages, 511 Kb, PDF file

Barley Prices

French Malting Barley Prices. Nominal prices
EURO = USD 1.2653 February 18, 2009 
 Crop year   2008   2009 
 Parity   FOB Creil   FOB Creil 
 Position   July 2008   July 2009 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  129.00  163.50  162.00  205.00 
2RS  Prestige  128.00  162.00  161.00  204.00 
2RS  Cellar  127.00  161.00  160.00  202.50 
2RS  Sebastien  126.00  159.50  159.00  201.50 
2RS  Tipple  126.00  159.50  159.00  201.50 
2RS  Henley  126.00  159.50  159.00  201.50 
6RW  Esterel   119.00  150.50  140.00  177.50 

French Feed Barley Prices. Nominal prices
EURO = USD 1.2653 February 18, 2009
Crop year 2008
Parity FOB Creil
Position July 2008
Type EURO USD
Feed Barley 109.00 137.92


Theoretical Malt Prices

EURO = USD 1.2653 February 18, 2009 
Crop year  2008 
Parity  FOB Antwerp 
Position  Feb 2009 - Sept 2009 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO USD EURO  USD EURO USD  EURO  USD
2RS  Scarlett  349.50  442.50  381.00  482.00  373.00  472.00  387.50  490.00 
2RS  Prestige  348.50  440.50  379.50  480.50  372.00  470.50  386.00  488.50 
2RS  Cellar  347.00  439.50  378.50  478.50  370.50  469.00  385.00  487.00 
2RS  Sebastien  346.00  437.50  377.00  477.00  369.50  467.50  383.50  485.50 
2RS  Tipple  346.00  437.50  377.00  477.00  369.50  467.50  383.50  485.50 
2RS  Henley  346.00  437.50  377.00  477.00  369.50  467.50  383.50  485.50 
2RS   Average price  347.00  439.50  378.50  478.50  370.50  469.00  385.00  487.00 
6RW  Esterel   336.50  426.50  368.50  466.50  361.00  456.50  375.00  474.50 
Asia Malt 70/30  344.50  435.50  375.50  475.00  367.50  465.50  382.00  483.50 
**  Asia Malt 50/50  342.50  433.00  373.50  472.50  365.50  462.50  380.00  480.50 


EURO = USD 1.2653 February 18, 2009
Crop year 2009
Parity FOB Antwerp
Position Oct 2009 - Sep 2010
Conditioning Bulk In bags Bulk containers Bags, containers
Malting barley variety EURO USD EURO USD EURO USD EURO USD
2RS  Scarlett  382.50  483.50  413.50  523.00  406.00  513.50  420.00  531.50 
2RS  Prestige  381.00  482.00  412.50  521.50  404.50  512.00  419.00  530.00 
2RS  Cellar  380.00  480.50  411.00  520.00  403.50  510.50  417.50  528.50 
2RS  Sebastien  378.50  479.00  410.00  518.50  402.00  509.00  416.50  527.00 
2RS  Tipple  378.50  479.00  410.00  518.50  402.00  509.00  416.50  527.00 
2RS  Henley  378.50  479.00  410.00  518.50  402.00  509.00  416.50  527.00 
2RS   Average price  380.00  480.50  411.00  520.00  403.50  510.50  417.50  528.50 
6RW  Esterel   354.50  449.50  386.50  489.00  378.50  479.50  393.00  497.50 
Asia Malt 70/30  372.50  471.50  403.50  510.50  396.00  501.00  410.50  519.00 
**  Asia Malt 50/50  367.50  465.00  398.50  504.50  391.00  494.50  405.50  512.50 

NB: Prices published are theoretical malt prices including financial cost, THC (for bulk and bags container) and all administrative costs. This prices may fluctuate according to the quantity per delivery and technical specifications.

* - 70/30 = 70% Average two Rows Spring and 30% Six Rows Winter
** - 50/50 = 50% Average two Rows Spring and 50% Six Rows Winter

Prices Evolution

Prices evolution

Table of the Week

World Malt Imports Estimate

in thousand tons 2005/2006 2006/2007 2007/2008
CIS & Baltic 395 361 254
Europe 161 143 138
N./C. America 641 722 1000
South America 1117 1290 1388
Asia 1302 1375 1485
Africa 555 567 519
Others 52 39 61
Total: 4223 4497 4845
Source: IGC
Graph of the Week



These Days in Business History
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February 17
1878 Silver dollar became U.S. legal tender
1986 1st Francophone Summit convenes at Versailles
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February 18
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Agenda