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E-Malt.com Newsletter 13a
March 23 - March 25, 2009
Open!
Click here to get full size Newsletter


Quote of the week

"When the bee comes to your house, let her have beer; you may want to visit the bee's house some day."
Congolese Proverb
Currency Rates
Base Currency: Euro, EUR
on 25-March-2009

1 EUR = 1.3596 USD
1 EUR = 0.9268 GBP
1 EUR = 1.6642 CAD
1 EUR = 1.9334 AUD
1 EUR = 133.062 JPY
1 EUR = 3.0617 BRL
1 EUR = 45.4391 RUB
1 EUR = 9.2987 CNY
Base Currency: US Dollar
on 25-March-2009

1 USD = 0.7356 EUR
1 USD = 0.6817 GBP
1 USD = 1.2241 CAD
1 USD = 1.422 AUD
1 USD = 97.868 JPY
1 USD = 2.252 BRL
1 USD = 33.4221 RUB
1 USD = 6.8396 CNY
Currency Rates Chart

Equities of the Largest Breweries

Equities of the Largest Breweries

Average Market Prices Change trend

March 25, 2009

Type Crop 2008 Crop 2009
2rs Barley EUR110.0-114.0 1.75% EUR136.0-140.0 1.43%
6rw Barley EUR104.0-108.0 1.85% EUR118.0-122.0 0.83%
2rs Malt EUR327.5-331.5 0.60% EUR351.0-355.0 0.70%
6rw Malt EUR319.0-323.0 0.77% EUR327.5-331.5 0.45%
Feed Barley EUR96.0-100.0 1.01% 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

Czech Republic: Budejovicky Budvar the only big Czech brewer failing to increase export in 2008 ...Click here
Belgium: Duvel Moortgat brewery reports a 15.5% increase in turnover in 2008 ...Click here
EU: Court upholds a ruling denying AB InBev to register Budweiser trade mark in the EU ...Click here
Australia: Beer sales forecast to be hurt by lower taxes on ready-to-drink beverages ...Click here
Ireland: Beer volumes decline 5% in 2008 ...Click here
Latvia: Aldaris beer export reaches 398,000 litres in 2008 ...Click here
Tanzania: Tanzania Breweries expects an 11% higher revenue for the financial year ending this month ...Click here
Australia: ABB Grain to pay the first quarterly distribution for malting barley pools at the end of this month ...Click here




Belgium: AB InBev discloses outstanding capital and shares information ...More Info
United Kingdom: Coors Brewers to tempt women with yet unnamed clear beer ...More Info
United States: Molson Coors shares still seen as “compelling” despite a recent drop in volume ...More Info
United Kingdom: Pubs should pin their faith on cask ale - report ...More Info
Russia & Mongolia: Baltika Breweries gets exclusive right to sell licensed Carlsberg and Tuborg beer in Mongolia ...More Info
Kenya: Keroche brewery fighting several wars, confident to stay the course and win ...More Info
Sudan: SABMiller expects its Sudan business to be successful, new beer brand to be a draw ...More Info
United Kingdom: Classic lager Skol to be represented in a “contemporary” 4% abv version ...More Info
Australia: WA micro-brewers demand bigger tax concessions ...More Info
Russia: AB InBev’s Russian unit starts production of non-alcoholic Stella Artois ...More Info
Belgium: AB InBev earnings power seen shrinking with each asset shed to pay down debts ...More Info
The Netherlands: Heineken sets guidance on 5-year euro bond at the tight end of market speculations ...More Info
Finland: Lapin Kulta beer to become a strong regional brand ...More Info
World: AB InBev eliminates roster agencies in order to redirect budgets ...More Info
Czech Republic: Plzeňský Prazdroj to reorganize its staff ...More Info
Mexico & United States: Pacifico Beer to be available in 7 oz. bottle in 6-pack and 4/6-pack case ...More Info
Norway: Carlsberg’s Ringnes brewery improves logistics through IBM sensor technology ...More Info
United Kingdom: Diageo to close its central London office as part of cost cutting programme ...More Info
Go to our news database with more than 14618 articles.
Today with the possibility to be translated in 7 different languages!
DE FR SP IT PT RU CN

Brewery News

Czech Republic: Budejovicky Budvar the only big Czech brewer failing to increase export in 2008

Plzensky Prazdroj, the number one brewer on the Czech market, raised direct exports by more than 4 percent year-on-year to 881,000 hectolitres in 2008, CTK cited on March, 23 data obtained from Czech breweries as well as the latest estimates of the Czech Beer and Malt Association.

Brewing group Heineken Ceska republika raised exports by 13 percent year-on-year to 858,653 hectolitres last year.

The group, comprising Czech brewers Starobrno, Kralovsky pivovar Krusovice and a group of breweries Drinks Union, exports its beer mainly to Germany, Russia and Ukraine.

Pivovary Staropramen, the second largest Czech brewing group, exported around 690,000 hectolitres of beer in 2008, a growth of around 0.5 percent against the previous year.

"Exports of the Staropramen brand rose by 3 percent and its production under licence increased by 19 percent," the company said. Apart from Staropramen, the firm's product portfolio also comprises the Branik, Velvet, Ostravar and Kelt brands.

Budejovicky Budvar was the only exception among the largest domestic brewers as its sales abroad dropped by 1 percent to 581,522 hectolitres, but still were the second highest in the firm's existence.

Budejovicky Budvar exports its output to more than 50 countries. It sells most of its beer in the states of the European Union ...More Info


Belgium: Duvel Moortgat brewery reports a 15.5% increase in turnover in 2008

Belgium’s Duvel Moortgat brewery reported on March, 20 a 15.5% increase in consolidated turnover for 2008, as compared to the financial year 2007.

According to a company press release, its consolidated turnover amounted to EUR101 mln during the 2008 financial year. Its operating income rose by 17% to EUR105.8 mln.

Over the reporting period, Duvel’s EBIT increased by 8.3% to EUR19 mln. Of the total 2008 marketing cost, 56% was spent in the first six months and 44% in the last six months, the brewer said.

The EBIT margin decreased from 20% in 2007 to 18.8%, but increased compared to 30 June 2008, when the margin amounted to 17.4%.

The results of operating activities after net finance costs grew by 5.1% to EUR18.1 million. According to Duvel, its financial results in 2008 were negatively influenced mainly by the results of conversions of receivables, debts and foreign currency credits at the final rate per 31/12/2008 (€560,000). The higher debt costs and lower interest profits from working capital provided a negative effect to the amount of EUR150,000.

The consolidated profit increased by 3% to EUR12.2 million. The gross operating cash flow (EBITDA) rose by 17.9% to EUR30.9 million.

2008 has been an excellent year for Duvel Moortgat, despite ...More Info


EU: Court upholds a ruling denying AB InBev to register Budweiser trade mark in the EU

A European Union court on March, 25 upheld a ruling denying Anheuser-Busch InBev the right to register the Budweiser name as a trade mark in the EU, Reuters communicated on the same day.

U.S. brewer Anheuser-Busch, bought by Belgian counterpart InBev last year, applied for an EU trade mark in 1996 for the name "Budweiser" for its "beer, ale, porter, malted alcoholic and non-alcoholic beverages".

The application was opposed by Czech brewer Budejovicky Budvar, which makes beer marketed in the European Union as Budweiser Budvar, or Czechvar in North America.

Budvar's opposition was upheld by the European trade mark office, OHIM. After a failed appeal at OHIM, Anheuser-Busch took the case to the Luxembourg-based EU Court of First Instance.

"The Court of First Instance upholds OHIM's decision not to register the word 'Budweiser' as a community trade mark, inter alia for beer, for the American brewer, Anheuser-Busch," the court, Europe's second-highest, said in a statement.


Australia: Beer sales forecast to be hurt by lower taxes on ready-to-drink beverages

Shares in alcoholic beverages firms Foster's Group Ltd and Lion Nathan were lower in intraday trading on March, 25 as brokers said the recent failure by federal parliament to validate a tax increase on ready-to-drink beverages (RTDs) would hurt beer sales, The Sydney Morning Herald reported on the same day.

"Beer consumption is likely to flatten again as RTD spirits fall in price to reflect the return to the lower excise rate," Credit Suisse analyst Larry Gandler said in a research note.

Mr Gandler said Australian brewers had been enjoying "very pleasant growth" mostly as a result of the tax-induced shift from RTDs to beer.

He is tipping 3.3 per cent volume growth for Foster’s and 1.8 per cent for Lion Nathan this year, noting each 1 per cent fall in volume cuts Foster’s net profit by 1 per cent and by 1.6 per cent for Lion.

"Unfortunately, with the Australian Senate's failure to ratify the ready-to-drink spirits excise tax increase, we expect the halcyon days are to be short-lived," Mr Gandler said.

Mr Gandler said beer volumes grew by more than seven per cent in February compared to the prior corresponding period, and grew ten per cent by value, which was above forecasts.

Hot weather, ...More Info


Ireland: Beer volumes decline 5% in 2008

Alcohol consumption in Ireland dropped dramatically last year because of the weak economy and cross-border sales in Northern Ireland, bringing average consumption levels in 2008 back to where they were a decade ago, The Associated Press cited an industry association on March, 24.

An estimated 1500 pubs have closed in the past six years, the Drinks Industry Group of Ireland said in a report.

Irish shoppers have flocked to the British territory of Northern Ireland during the past year to capitalise on the strength of the euro, buying not just alcohol but other goods as well, the chairman of the industry group, Kieran Tobin, said.

Beer volumes declined 5% last year. This year will be even worse if current trends continue, the chairman of the industry group believes.

Tobin called on the government to take the report into consideration when announcing the supplementary budget next week and to forgo any increase in alcohol taxes.

"The clear conclusion from this report is that all sectors of our industry manufacturers, distributors and retailers both in the on- and off-trade are under immense pressure and we call on the government not to add to this burden by considering any increases in alcohol taxes," Tobin said.


Latvia: Aldaris beer export reaches 398,000 litres in 2008

Latvia’s largest brewer Aldaris exported 385,000 litres of beer in 2008, Ilze Ulinska, head of Aldaris Export Department, was quoted as saying by DELFI on March, 24.

According to Ms Ulinska, Zelta beer accounted for 206,000 of the brewer’s total exports last year.

Latvian beer is most popular in Ireland and the UK, which account for a fourth of the company’s total export volume. Thus, 89,000 litres of Aldaris beer was sold in Ireland and about 24,000 litres – in the UK in 2008.

Besides, the company exported 49,000 litres of beer to the United States and about 40,000 litres to Canada.

Aldaris plans to increase its export volume and find new markets in the current year, it is reported.


Tanzania: Tanzania Breweries expects an 11% higher revenue for the financial year ending this month

Tanzania Breweries, a subsidiary of South African SABMiller, said revenue for the March year could rise by up to 11 percent on the previous year's 383 billion shillings ($290 million), Reuters reported on March, 23.

According to Managing Director Robin Goetzsche, the company also has plans to boost its production capacity by 600,000 hectolitres before November, by building a $55 million brewery.

"We should see good double-digit growth, around 10 to 11 percent in revenue growth, which is positive for us, bearing in mind the tough couple of sessions ahead of us in terms of world economy," he said.

TBL, majority-owned by SABMiller has beer production capacity of just over 3.4 million hectolitres, against sales of about 3.25 million hectolitres per year.

"We are building a new brewery which we will be commissioning in November in Mbeya. The brewery in the south is an investment of $55 million," Goetzsche said.

"The new plant will have an annual capacity of, to start with, 600,000 hectolitres."

Goetzsche said the Mbeya plant would easily be upgraded to double its capacity as needed.

The company is expanding to meet rising demand fuelled by a booming economy in recent years.

He said TBL was also add a new 48,000 bottles an hour bottling ...More Info


Barley News

Australia: ABB Grain to pay the first quarterly distribution for malting barley pools at the end of this month

ABB Grain will pay the first quarterly distribution from its national pools at the end of March 2009, the Australian agribusiness announced on March, 25.

The payment will be distributed to all growers who selected the Quarterly Distribution payment alternative of ABB’s national wheat, barley and canola pools.

ABB’s pooled grain business unit manager Anthony Fitzgerald said ABB had had an active grain sales program since harvest and, as a result, its delivery program was well under way.

“Once receipts from sales and logistics costs are netted off, most pool participants will receive between 20-30% of the total net return in this first payment, however this will vary depending on the location growers delivered to,” Mr Fitzgerald said.

“A large percentage of the total pool costs, including storage and handling, fobbing and freight, will be deducted from this first payment, which is consistent with what we outlined at the start of the season.

“We indicated 100% of costs incurred would be deducted at the time of each distribution and, given we’ve had a front-ended program to date, a lot of the costs have already been incurred.”

“Given our grain marketing activity will be weighted to the front end of this year there is a ...More Info

Scientific Digest

The Effect of Hydroxycinnamic Acids and Volatile Phenols on Beer Quality

S. E. Iyuke, E. M. Madigoe and R. Maponya

Abstract:
J. Inst. Brew. 114(4), 300–305, 2008 To the consumer, beer should be an agreeable beverage of attractive colour, clarity, pleasing flavour and should carry no toxic substances. One of the major constituents of barley is phenolic acids and their direct effect on the quality of beer is still a mystery. The aim of the study therefore was to investigate the relationship between phenolic acids during mashing at different temperatures and the quality of the beer. The mash regime and liquor to malt ratios were optimised and the carbohydrates obtained were analysed at 3.5 L of water per kg of malt and a total mash time of 105 min. Carbohydrate and phenolic acid analyses were performed by HPLC coupled with a UV-vis detector. The three different malts used had a phenolic acid content of 33.25 μg/mL, 25.44 μg/mL and 19.98 μg/mL for malt A, B and C, respectively. The plot of 1/T versus Ln(t) gave a negative slope with activation energy (Ea) = 209 KJ/mol, rate constant (k) = 4.6 × 10��4 mg/L min, which are comparable to similar data reported in the literature. The kinetics studies showed that the optimised mashing temperature of 90°C was adequate to form 4-vinylguaiacol by thermal decarboxylation from the hydroxycinnamic acids. This study has shown that there is no direct correlation between phenolic acids and oxidative flavour stability of beer while the corresponding volatile phenols may affect beer flavour. Key words: Beer quality, HPLC, hydroxycinnamic acids, kinetics, volatile phenols, wort. Load full article, 6 pages, 12913 Kb, PDF file


Barley Prices

French Malting Barley Prices. Nominal prices
EURO = USD 1.3596 March 25, 2009 
 Crop year   2008   2009 
 Parity   FOB Creil   FOB Creil 
 Position   July 2008   July 2009 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  114.00  155.00  140.00  190.50 
2RS  Prestige  113.00  154.00  139.00  189.00 
2RS  Cellar  112.00  152.50  138.00  188.00 
2RS  Sebastien  111.00  151.00  137.00  186.50 
2RS  Tipple  111.00  151.00  137.00  186.50 
2RS  Henley  111.00  151.00  137.00  186.50 
6RW  Esterel   106.00  144.50  120.00  163.50 

French Feed Barley Prices. Nominal prices
EURO = USD 1.3596 March 25, 2009
Crop year 2008
Parity FOB Creil
Position July 2008
Type EURO USD
Feed Barley 98.00 133.24


Theoretical Malt Prices

EURO = USD 1.3541 March 20, 2009, 2009 
Crop year  2008 
Parity  FOB Antwerp 
Position  Mar 2009 - Sept 2009 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO USD EURO  USD EURO USD  EURO  USD
2RS  Scarlett  334.50  452.50  365.50  494.50  357.50  484.50  372.00  503.50 
2RS  Prestige  333.00  451.00  364.00  493.00  356.50  482.50  370.50  502.00 
2RS  Cellar  331.50  449.00  363.00  491.50  355.50  481.00  369.50  500.50 
2RS  Sebastien  330.50  447.50  361.50  489.50  354.00  479.50  368.50  498.50 
2RS  Tipple  330.50  447.50  361.50  489.50  354.00  479.50  368.50  498.50 
2RS  Henley  330.50  447.50  361.50  489.50  354.00  479.50  368.50  498.50 
2RS   Average price  331.50  449.00  363.00  491.50  355.50  481.00  369.50  500.50 
6RW  Esterel   323.50  439.00  355.50  481.50  348.00  471.00  362.00  490.50 
Asia Malt 70/30  329.50  446.00  360.50  488.50  353.00  478.00  367.50  497.50 
**  Asia Malt 50/50  328.00  444.00  359.50  486.50  351.50  476.00  366.00  495.50 


EURO = USD 1.3596 March 25, 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  355.50  483.00  386.50  525.50  378.50  515.00  393.00  534.50 
2RS  Prestige  354.00  481.50  385.50  523.50  377.50  513.50  391.50  532.50 
2RS  Cellar  353.00  479.50  384.00  522.00  376.50  511.50  390.50  531.00 
2RS  Sebastien  351.50  478.00  382.50  520.50  375.00  510.00  389.50  529.50 
2RS  Tipple  351.50  478.00  382.50  520.50  375.00  510.00  389.50  529.50 
2RS  Henley  351.50  478.00  382.50  520.50  375.00  510.00  389.50  529.50 
2RS   Average price  353.00  479.50  384.00  522.00  376.50  511.50  390.50  531.00 
6RW  Esterel   329.50  449.50  362.00  492.00  354.00  481.50  368.50  501.00 
Asia Malt 70/30  346.00  470.50  377.50  513.00  369.50  502.50  384.00  522.00 
**  Asia Malt 50/50  341.50  464.50  373.00  507.00  365.50  496.50  379.50  516.00 
-->

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

Australian Barley Supply and Disposal 2003 - 2009f

in thousand tonnes 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008s 2008-2009f
Production 10 382 7 740 9 482 4 257 5 920 6 820
   Domestic use 2 476 2 670 2 760 3 153 2 460 2 531
   as malt and other human use 168 172 176 166 165 169
   feed 2 100 2 300 2 400 2 784 2 100 2 163
   seed 208 198 184 203 195 200
 Exports  6 999 4 862 5 917 2 562 4 053 4 313
   as malting barley 2 135 1 464 2 067 659 1 083 1 072
   malt (grain equivalent) 624 601 660 627 668 662
   feed barley 4 241 2 798 3 191 1 192 2 303 2 579
s - ABARE estimated, f-ABARE forecast. Source - ABARE March, 2009
Graph of the Week


Source: Union of Russian Brewers

These Days in Business History
March 23
1836 Coin Press invented by Franklin Beale
1857 Elisha Graves Otis installs the world's first safety elevator for passengers in the E.V. Haughwout and Co. store in New York City.
1861 London's 1st tramcars, designed by Mr. Train of New York, begins operating
1951 Wages in France increase 11%

March 24
1867 Metropolitan Life Insurance Co. forms
1898 1st automobile sold
1955 1st seagoing oil drill rig placed in service

March 25
1814 Netherlands Bank established
1954 RCA manufactures 1st color TV set (12½" screen at $1,000)
1957 Treaty of Rome establishes European Economic Community (Common Market)
1970 Concorde makes its 1st supersonic flight (700 MPH/1,127 KPH)
Agenda