Anheuser-Busch InBev, the world’s No. 1 brewer, said on May, 7 its revenues grew 25.9% during the first three months of this year.

AB InBev’s consolidated revenue grew 4.7% for 1Q09, reaching 8,197 million USD. The increase in revenue per hectolitre of 5.9% (excluding US entertainment and packaging activities) reflects effective revenue management programs, the company stated.

The brewer’s cost of sales (CoS) for 1Q09 decreased by 0.2% and CoS per hl (excluding US entertainment and packaging activities) increased by 2.5%.

“CoS remain a challenge, but we are starting to see the benefit of procurement best practices and brewery productivity enhancements (VPO),” the Belgian company said.

Operating expenses decreased 6.5% in 1Q09, with the following developments:

• Distribution expenses for 1Q09 decreased 12.3% to 600 million USD, mainly driven by the synergy generation in North America, lower tariffs in Central and Eastern Europe and lower fuel costs overall;

• Sales and marketing expenses declined 3.3% to 1,042 million USD, as a result of lower media costs;

• Administrative expenses for 1Q09 fell 3.8% to 503 million USD, as synergy savings in North America offset higher expenses in Latin America North and GEHC;

• Other operating income/expenses increased 3.9% to 76 million USD.

1Q09 PROFIT – Normalized profit attributable to ...More Info

The Boston Beer Company, Inc. reported on May, 6 a first quarter core product depletions decrease of 5% as compared to the first quarter of 2008, adjusted for comparable selling days.

Net income for the first quarter was $1.4 million, or $0.10 per diluted share, an increase of $5.1 million, or $0.37 per diluted share, from the first quarter of 2008, primarily as a result of provisions taken for the product recall in the first quarter of 2008, offset by lower core shipment volumes and gross profit.

Excluding the impact of the product recall, the company's net income decreased $3.7 million, or $0.25 per diluted share. Depletions decreases were primarily attributed to decreases in Samuel Adams Boston Lager(R), Sam Adams Light(R) and the Samuel Adams(R) Brewmaster's Collection, partially offset by increases in Samuel Adams(R) Seasonals and Twisted Tea(R).

Net revenue for the first quarter of 2009 was $81.1 million, an increase of $5.0 million, or 7%, over the same period last year, primarily due to provisions taken in 2008 for the product recall. Excluding the impact of the product recall, net revenue decreased by $4.1 million, or 5%, during the first quarter of 2009 as compared to the first quarter of ...More Info

Anheuser-Busch InBev’s Brazilian brewing division, Cia. de Bebidas das Americas, or AmBev, posted on May, 7 the results of its operations during the first three months of this year.

The company’s consolidated beer volumes increased by 4.1% organically to 26,314.9 thousand hl over the quarter. Net income added 32.2% reaching R$1,612.6 mln. Normalized EBITDA amounted to R$2,582.9 mln, whereas the organic growth of normalized EBITDA margin constituted 240 bps.

AMBEV MANAGEMENT COMMENTS

The first quarter of 2009 was an important positive start for what we believe could still be a very challenging year.

Although Brazil’s industry performance has been positively impacted by both macroeconomic drivers and good weather, we have already seen slowdown in industry volumes versus last year trends across most of the markets in which we operate as a result of current economic environment.

Our normalized consolidated EBITDA totaled R$2,582.9 million in Q1 2009, a 16.3% organic increase with margins expanding by 240 bps. Consolidated volumes delivered solid growth and were 5.1% higher in Q1 2009.

In Brazil, volumes for both Beer (+7.6%) and CSD & Nanc (+12.6%) in Q1 2009 delivered strong growth versus last year. This was primarily a result of: (i) real consumer disposable income growth for the first time in ...More Info

Anheuser-Busch InBev and Kohlberg Kravis Roberts & Co. L.P. (“KKR”) announced on May, 7 that they have entered into an agreement whereby Anheuser-Busch InBev will sell Oriental Brewery (“OB”), South Korea’s second largest brewery, to an affiliate of KKR, for 1.8 billion USD (equivalent to approximately 2.3 trillion KRW converted at the current spot rate of 1272.6).

AB InBev, the world’s largest brewer, said it would continue its relationship with OB through the exchange of best practices, granting KKR exclusive licenses to distribute certain brands in South Korea including Budweiser, Bud-Ice and Hoegaarden, and by having an ongoing interest in OB through an agreed earnout. In addition, the Belgian brewer will have the right but not the obligation to reacquire OB within five years after closing of the transaction at pre-determined financial terms.

The divestiture of OB is part of Anheuser-Busch InBev’s ongoing de-leveraging program and allows the company to unlock shareholder value, generating proceeds that will be used to repay debt incurred as a result of InBev’s acquisition of Anheuser-Busch in November 2008.

Carlos Brito, Chief Executive Officer of Anheuser-Busch InBev, said: "This transaction allows us to unlock value for our stakeholders while preserving a mutually beneficial relationship through ongoing distribution agreements. ...More Info

Kirin Holdings Co. said on May, 8 that its net loss deepened in the quarter ended March 31, due partly to securities valuation losses.

The Tokyo-based beer maker, which holds a 46% stake in Australia's Lion Nathan Ltd. and 20% of the Philippine's San Miguel Corp., posted a net loss of ¥6.17 billion for the fiscal first quarter, compared with the year-earlier loss of Y675 million.

Japanese brewers typically generate relatively low profits, or sometimes losses, in the January-March quarter. Beer demand is weak during the period, and breweries have high promotional expenses for new products ahead of the peak summer season.

The company’s alcohol beverage business reported for the quarter a consolidated operating income of ¥13.7 bln (- 16% from the first quarter of the last year).

Kirin's beer sales (including ordinary beer, happoshu and new genre) came to ¥183.3 billion, showing a 9.4% from the first quarter in the year earlier. The company expects its beer sales to drop 8.1% in the full year.

In natural terms, the sales of ordinary beer constituted 154 thousand kl (- 6.7%). Sales of happoshu (type of beer with low malt content) dropped by 6.9% to 155 thousand kl. Sales of new genre no-malt beer grew by ...More Info

Beer and spirits group Diageo plc said on May, 7 that in the nine months ended 31 March 2009 net sales were flat against the comparable period on an organic basis.

In the quarter ended 31 March 2009 net sales declined by 7% on the same basis, driven primarily by the planned stock reductions in Diageo’s US spirits and wine distributors where stock at 31 March 2009 was approximately one million cases lower than at 31 December 2008.

On a reported basis net sales grew by 16% in the nine months ended 31 March 2009 and by 11% in the quarter ended 31 March 2009, against the comparable prior period in each case. Growth was mainly driven by the impact of exchange rates movements since the comparable period, Diageo reported.

The only material change in the financial position of the group was the liability in respect of the interim dividend. Net assets were £4,192 million at 31 March 2009, having been £4,616 million at 31 December 2008, said the owner of the legendary Guinness.

Paul Walsh, Chief Executive of Diageo commented:

“As we anticipated trading in markets around the world has weakened in the second half of the fiscal year. In ...More Info

Baltika Breweries, the leader on the Russian beer market and a subsidiary of the Danish Carlsberg Group, announced its financial results for the first quarter of 2009 on May, 7.

Over the first three months of 2009, Baltika’s sales volumes dropped 5% to 8.5 mln hl, as compared to the first quarter of 2008. Sales revenue increased by 5.3% to RUR17.74 bln. The company’s EBITDA amounted to RUR5.09 bln (+ 21.4%), whereas its net profit climbed 18.5% to RUR2.53 bln.

According to the brewer, the Russian beer market has appeared to be one of the most resilient markets than other industries even in conditions of general economic decline. The current economic crisis undoubtedly was reflected in the trend of purchasing power of the population and in production and consumption volumes, which were lower in Q1 2009 than in the same period of 2008. The company estimates that beer market volume in Russia decreased in Q1 2009 by almost 7% compared to Q1 2008, which is noticeably better than the trend line of the main macroeconomic indicators and production volumes in other industries.

Moreover, the business of Baltika Breweries, the market leader with the strongest brand portfolio, was more resistant to the influence of ...More Info

Singapore-based Asia Pacific Breweries posted on May, 7 a 0.9% increase in revenue, to S$1.07 mln, for the first half ended 31 March 2009.

Despite operating amidst challenging trading conditions across almost all its markets, Asia Pacific Breweries announced a 9.6% increase in attributable net profit (after exceptional items) to S$94.5 million for the reporting period. The improvement is largely due to a one-time gain of S$3.5 million from the sale of Liquorland Limited, a chain of liquor retail stores in New Zealand, the company said.

Profit Before Interest, Taxation & Exceptional Item (PBIT) gained 2.2% or S$3.7 million to S$172.7 million as compared to the corresponding period last year. Excluding translation difference and gestation losses*, PBIT rose organically by 6% to S$184.4 million.

Attributable Net Profit before Exceptional Items (APBE), at S$91 million, is comparable with that of the corresponding period last year. Excluding translation difference and gestation losses*, APBE grew organically by 7% to S$100.9 million.

Earnings per share before exceptional items rose from 35 cents to 35.3 cents. Net asset value per share gained 15 cents to S$3.89 while net tangible assets per share increased from S$2.96 to S$3.04 when compared to March last year.

The Directors have recommended ...More Info

Anheuser-Busch InBev announced on May, 8 that it has entered into an agreement with Mr. Chen Fashu, a Chinese national and private investor, whereby Mr. Chen will acquire the remaining 7% stake which the Belgian brewing giant holds in Tsingtao Brewery Co., Ltd. for 235 million USD.

Under the agreement, Anheuser-Busch InBev will sell 91,641,342 H-shares of Tsingtao to Mr. Chen at a price of HKD 19.83 per share.

The parties expect the transaction to close on May 27, 2009.

As brewers and maltsters look for protection from volatile markets, already this year another bull market of grains cannot be excluded, and malt prices would certainly follow, analysts communicated at the beginning of this month.

Present activity in EU’s malt markets is minimal, local business for 2010 is reported at prices between EUR 335,- and 345,-, average price for the year, delivered breweries.

Average quotes for export sea, FOB, in bulk in container, is around EUR 350,- per ton. Especially overseas brewers have been very passive so far, EU maltsters report.

Ukraine’s largest brewer Obolon announced on May, 8 that it has started to export barley malt produced at its new malthouse in the Khmelnitsk region.

The malting plant was launched at full capacity at the end of last year. Its annual capacity amounts to 120 thousand tonnes of pilsen malt, which minimizes Obolon’s dependence on external malt markets. The company said it might export about 10 thousand tonnes of malt this year.

Taking into account the high quality of the product, several nations have already expressed interest in ordering malt produced by Obolon, among which Slovenia, Russia, Germany, and the Baltic countries, the Ukrainian company said.

IGC forecasts a world barley crop of 145.9 mln vs. 155.9 mln tons last year. Taking into account the EU Commission’s forecast of an EU crop of 60.7 mln tons instead of the IGC estimate of 62.9 mln tons, a note by industry analysts published on May, 4 set world barley crop at 143.7 mln tons, down 8 % from 2008.

As to IGC, the world barley trade will drop from 19.1 mln to 17.4 mln tons. Countries in North Africa and the Middle East, Morocco, Turkey, Syria and Iran recorded better rainfalls and will probably harvest much better barley crops, analysts assume. Total usage is estimated unchanged, which will leave closing stocks of 29 mln tons vs. 31 mln tons of barley at the end of the present campaign.

The EU barley crop was 65.7 mln tons in 2008 as compared to 58.1 and 56.2 mln tons, respectively in 2007 and 2006, that is, too large to sustain the high price levels of 2007/08, industry observers reminded earlier this week.

Neither the higher feed consumption of 41.9 mln tons nor exports of 3.3 mln tons against a very sharp competition from Black Sea countries could stop prices falling back to the intervention level just above EUR 100,- per ton.

Intervention started in November and will remain open till the end of May. Almost 750,000 tons have been tendered to intervention, latest data show; 250,000 tons have been accepted so far. As of July 1, 2010, there will be no more intervention of barley and maize (already since 2009) in the EU, only wheat will be bought by the authorities on a yet undefined tender basis, it is reported.

This campaign’s intervention is limited to Southeast Europe – Hungary 165,000, Czech Republic 144,000, Slovakia 18,000, Austria 6,000 tons; Baltic Region – Finland 125,000, Sweden 68,000, Lithuania 60,000, Poland 54,000, Estonia 3,000 tons; Central West Europe – Germany 102,000 tons.

According to sources, there has been no application in the deficit countries of the Mediterranean ...More Info

Eastern Europe looks like a major risk region for barley growing, industry sources reported earlier this week.

Winter crops in Russia were safe till the beginning of spring. The trouble started in April, delayed planting, extensive night frost causing anything from weakened plants to total damage, farmer’s lack of money curtailing fertilizer input, farmers turning away from spring barley will reduce the barley crop in the Black Soil area, and finally drought, sources maintain. Private estimates are that the Russian grain crop will drop by 15 to 20% from last year’s level.

In Ukraine there is limited damage from frost, however, there is also less input of fertilizer than in past years, but the dominating feature is dryness. South and South Central Ukraine received good rainfalls during the past weekend, but the Northern half of the Ukraine, which is the principal barley region, stayed dry.

Yield losses seem already certain, a major effect on yields and barley quality will happen, unless there is beneficial rainfall within the next weeks, industry observers believe.

Crop estimates of 17 mln tons of barley in Russia (last year 23.1 mln) and 9.8 mln tons (12.5) in the Ukraine will probably be corrected further down, sources estimate.

Barley planting in North America has hardly started, soils are saturated and rains don’t stop in North Dakota, Montana and Manitoba, news came on May, 4.

It remains to be seen, whether U.S. farmers will stick to their plans to seed 1.6 mln HA of barley this year, sources communicate. In Canada the prognosticated acreage is 3.835 mln HA of barley (last year 3.787).

Acreage in the Western provinces is as follows: Manitoba 348,000 HA, Saskatchewan 1,578,000 HA and Alberta 1,679,000 HA. There is some concern about yields and quality of the expected crop, industry sources shared.

Barbara Foszczynska, Ewelina Dziuba, Regina Stempniewicz

Abstract:
ABSTRACT The influence of chemical disinfection of barley grain and addition of biomass of Geotrichum candidum in the process of steeping or germinating the grain on the enzymatic and technological quality of malt was examined. Rudzik brewing barley grain disinfected using formalin or biologically protected using G. candidum strains 1, KC3 and KB5, was used as experiment material. The starter cultures were added during steeping or at the beginning of germination. It was observed that the use of formalin negatively influenced the modification of malts and resulted in, among others, lowered Kolbach index (by 4.3% avg.). Addition of starter cultures to the first steeping water was favourable for the creation of enzymatic potential of malts. As compared to the control sample, starter malts were characterised by higher activity of beta-glucanase (by 24 U·kg^-1) and alpha-amylase (by 20 U·g^-1) and by higher diastatic power (by 20 WK-u). The best enzymatic a Key words: brewing barley, Geotrichum candidum yeasts, malting.. Load full article, 9 pages, 247 Kb, PDF file