World’s beer markets still feel the impact of high prices of the past for raw materials, packing and energy, a report stated earlier in March.

Forecasts of beer sales are negative for the EU, Russia, China, Japan, but are still positive for Southeast Asia, Africa and Latin America. Experts suppose that beer sales will suffer in countries, where the price of beer is still high as compared to average incomes. So far it seems true in Russia and China, but not at all in Africa and Latin America.

In Western Europe the smoking ban in bars and restaurants has impacted beer sales very much, particularly in Britain and Ireland. Everywhere sales of draft beer in pubs went down in favour of bottles or cans sold in food markets for consumption at home. Especially cheaper brands are selling well, to the detriment of premium beers.

Grupo Modelo, S.A.B. de C.V. and Subsidiaries, Mexico’s No. 1 brewer, released its fourth quarter 2008 financial results on February, 27.

During the fourth quarter, Modelo’s total beer sales volume increased by 1.8% to 13.1 mln hl (12.87 mln hl in Q4 2007).

Modelo’s total domestic beer sales volume reached 9.6 million hectolitres, which represents an increase of 1.2% compared with the same period of the prior year. Volume in domestic brands grew 0.7% despite the difficult comparison base of 4Q07 when the company grew 7.1%. Likewise, the imported brand portfolio grew 27.4%.

Export volume increased 3.5% with respect to the same period of 2007 constituting 3.5 mln hl in Q4 2008. In the United States, volumes showed positive results, despite the economic slowdown registered during the latter part of the year. These results are mainly driven by the narrowing of the price gap between Modelo’s brands and those of its competitors, who increased their prices in the fourth quarter, as well as by the tactical promotions implemented by Crown Imports in that market.

Modelo said its Negra Modelo and Modelo Especial in draft have been successful in the test cities and the company will continue pushing the expansion of this presentation ...More Info

AB InBev has decided against selling its Oriental Brewery, express.be posted on March, 3.

According to sources, the bids for the brewer’s Korean subsidiary were too low. Bidders did not offer more than $1.3 bln for Oriental Brewery, whereas the Belgium-based brewing giant hoped to sell it for $2.5 bln.

The Malaysian Guinness Anchor Berhad brewery (GAB) announced in February the unaudited results of its performance in the second quarter ended December 31, 2008.

The brewer’s revenue amounted to RM 328.5 mln over the reporting period (+ 13% compared to the second quarter ended December 31, 2007). Revenue for the six months was RM 694.3 mln (+ 12.8%).

Operating expenses increased by 11% to RM 282.9 mln in the second quarter and by 12.1% to RM 586.2 mln in the six months to December 2008.

GAB’s net profit for the second quarter was RM 34.6 mln (+ 29%) and the net profit for the six months was RM 81.9 mln (+ 17.1%).

In light of this performance, GAB has declared an interim dividend of 10 sen per 50 sen stock unit tax exempt for the financial year ending 30 June 2009.

GAB’s share in the competitive malt liquor market (MLM) has increased to over 60 percent as of end of the second quarter of FY09 from 56 percent recorded 6 months ago. Correspondingly, GAB now has 72 percent of the MLM industry profit pool.

GAB’s latest earnings figures underline its position as Malaysia’s clear leader of the MLM, which is expected to experience low growth this ...More Info

There is certainly no uniform line of the effects of the economic crisis on the world’s malting industry, experts expressed their opinion this month.

Malt purchases for 2010 were limited to the LTA’s concluded in better times and to sales to German middle-size brewers, it is reported.

Most brewers and maltsters, however, believe in a modest reduction of beer and malt sales, and they hope for a good summer, which would compensate for losses of the Northern Hemisphere winter.

The EU malt market is now at a standstill. Prices for new crop malt are nominal, they range from EUR 355,- to 380,- in domestic EU markets, delivery 2010. Export price levels for new crop malt will be at or just below EUR 400,-, FOB, in bulk in container, it is estimated.

Beer sales figures and reliable estimates of barley plantings may revive markets in spring, analysts agree.

World barley trade is forecast to decline in 2009-10, as supplies in the major exporting countries of the Ukraine and the Russian Federation contract, ABARE said in its latest Australian Commodities report.

Chinese imports of malting barley are expected to be lower in 2009-10, reflecting slower Chinese income growth. The nation’s beer consumption is responsive to changes in income, and lower economic growth in 2009-10 is expected to slow the increase in Chinese beer consumption, ABARE said.

EU barley production is forecast to decline by 5 per cent to 62.3 million tonnes in 2009-10, reflecting a decline in both the area planted and yields.

In 2008-09, favourable growing conditions across much of Eastern Europe and the Russian Federation resulted in record yields and significantly higher coarse grain production. At the end of 2008, the Russian Government commenced buying stocks of wheat, rye and barley to support domestic prices received by farmers. In late December 2008, the Russian Government added corn to this list and for the first time commenced buying corn stocks. Such support is expected to maintain resources in crop production for 2009-10. In 2009-10, barley yields are assumed to decline by around 20 per cent. Consequently, barley production in the Ukraine ...More Info

IGC forecasts of EU barley exports are 4.8 mln tons for 2008/09 vs. 3.8 mln tons last year. Licence bookings to-date, however, are only 3.047 mln tons vs. 3.258 in 2007/08.

According to experts, the EU is not competitive against barley offers from the Black Sea.

Larger licence bookings, 33,000 tons early and 52,000 tons late February, applied to exports of malting barley to China.

EU’s domestic markets of feed barley dropped to new lows, delivered Rouen, basis July, to EUR 105,-, delivered Hamburg, basis March, to 112.50. EU consumption is absent from markets, but also farmers show little inclination to sell at present prices.

The Union’s intervention authorities accepted so far 54,000 tons of barley, further 136,000 tons are being offered. The market mood is decidedly bearish, because of large stocks, slow exports, good crop prospects for 2009 and the economic crisis threatening to cut down the demand for agricultural products.

Malting barley followed the general down trend. Old crop barley traded, FOB Creil, basis July, EUR 120,-, quotes are April, delivered Rhine EUR 138,-, Bavaria 145,-.

The reported number of EU malting barley sales to China remains unchanged at 250-300,000 tons for the campaign, present shipments result from earlier sales.

The difference between ...More Info

Barley trade in world markets was limited to a few sales to the Middle East in January – February this year, market sources reported at the beginning of this month.

Iran purchased 110,000 tons of feed barley (EUR 140,- CIF), Jordan – 125,000 tons (US$ 162,- to 168,-), and an estimated 160,000 tons went to Saudi Arabia (165,-).

Total imports of the Middle East for the campaign are forecast to reach 12.7 mln. tons, 40 % above last year’s number.

Japan purchased 215.000 feed, food and malting barley in SBS tenders, mainly from Australia.

Markets in most origins were weaker, feed barley FOB EU ports is quoted US$ 145,- to 148,-, FOB Black Sea US$ 130,- to 135,, FOB Australia approx. US$ 145,-. Canada and the U.S. are not competitive, the CWB quotes US$ 165,- FOB Vancouver, which reflects values in domestic markets.

No trade of malting barley in world markets was reported during February. China imported a mere 46.000 tons in January, of which 34.000 tons from Canada, 7000 tons from France and 5000 tons from Australia.

The Czech Republic exported 4,379 tonnes of domestic hops to 43 countries last year, up 1.8 percent against 2007's 4,298 tonnes, Zdenek Rosa of the Czech Hop Growers Association was quoted as saying by CTK on March, 3.

Poor results of harvests in the years 2006 and 2007 were still mirrored in granulated hops exports but the good year 2008 pulled up exports of unprocessed hops, Mr Rosa said.

Growers harvested 6,752 tonnes of hops last year, up 20 percent year-on-year.

Japan, traditionally the biggest buyer, took up over 35 percent of the exports last year.

There were two new buyer countries in the year - Botswana and Colombia.

"The total number of countries to which Czech hops have been exported since the year 1998 thus grew to 75," Rosa added.

Among the largest buyers, alongside Japan, are Germany, Poland, China, Russia and Great Britain.

Breweries in Finland, India, Slovakia, Romania and the USA also rank among important clients.

The current global financial crisis has also affected world beer production, which can have a negative impact on demand for hops in the future, Rosa said.

Hops yields reached 1.27 tonnes per hectare last year, while in 2007 it was 0.23 tonnes less.

The harvest, as well as the content of ...More Info

Radoslav Selecky Daniela Smogrovicova and Pavol Sulo

Abstract:
J. Inst. Brew. 114(2), 97–101, 2008 A collection of Saccharomyces cerevisiae strains deficient in the tricarboxylic acid cycle enzymes activities has been examined for the production of beer with reduced ethanol content. Strains deficient in fumarase and ?-ketoglutarate dehydrogenase encoded by the genes FUM1 (0.48%), KGD1 (0.42%) and KGD2 (0.48%) made non-alcoholic beers with an alcohol content lower than 0.5% (v/v). The rest of the yeast mutants also gave rise to low-alcoholic beers but with a slightly elevated ethanol concentration (mostly in the range of 0.57–0.84% and 1.64% for the lip5 mutant). Low ethanol content was compensated by the considerable increase of organic acids (citrate succinate, fumarate, and malate). In addition, some of the mutants released high levels of lactic acid (144 (fum1), 622 (kgd1) and 495 (kgd2) mg/L). Lactic acid protects beers against contamination and masks an unacceptable worty off-flavour. Key words: beer, Saccharomyces cerevisiae, tricarboxylic acid cycle. Load full article, 5 pages, 388 Kb, PDF file