Plzensky Prazdroj, a leading Czech producer and exporter of beer, announced on May, 22 its financial results for the fiscal year ending on 31 March 2009.

Over the reporting period, revenues from main activities increased by 1% to CZK 15.8 billion, SABMiller’s Czech brewing subsidiary said in an official statement.

Profit before tax of CZK 4.6 billion was ahead prior year despite the challenging economic climate, while the net income was slightly behind prior due to once-off accounting adjustments for taxation in the prior year. The exceptional tax items resulted in the tax base being incomparable against prior. Plzensky Prazdroj is one of the leading contributors to the Czech economy, having paid a total of CZK 4.4 billion in taxes during the past fiscal year.

Mike Short, Chairman of the Board of Directors and Managing Director of Plzensky Prazdroj, a. s., stressed the ongoing focus on premiumisation of the market and export. “The Czech beer market experienced declining volumes last year, and Prazdroj was not an exception. Even during these turbulent times we have managed well through the crisis and retained our focus on premium and upper mainstream brands which should further help the Czech beer market to increase value.”

In the ...More Info

Decks have been cleared for the merger of the Indian operations of Asia Pacific Breweries (APB), makers of Tiger beer, with the Vijay Mallya-led United Breweries (UB), The Economic Times posted on May, 27.

Singapore-based Asia Pacific Breweries (APB) announced on May, 18 that it has entered into an agreement to acquire the remaining 33% stake in Asia Pacific Breweries - Pearl Private Limited (APB Pearl) from Jaipuria Beverages & Food Industries Private Limited.

This has removed a stumbling block in way of UB’s boardroom settlement with Heineken, analysts claim.

The joint venture was called off as both parents (APB and Jaipuria) gave up resistance to integrate their business with UB.

Mr Mallya has been insisting on bringing APB’s Indian operations under UB fold as a condition to strike peace with the Dutch brewing giant Heineken.

Heineken acquired 37.5% in UB following a worldwide takeover of Scottish & Newcastle (S&N) in January last year. Mr Mallya has been arguing that Heineken, which holds 42% interest in APB, cannot be allowed to run parallel market operations while being a substantial shareholder in UB.

Last week, APB ended its local joint venture with CK Jaipuria as a precursor to a settlement between Mr Mallya and Heineken. APB ...More Info

Despite reaching a historically high beer consumption level, Italy is still ranked among the European countries with the lowest beer consumption rate, Euromonitor analysts communicated earlier this year.

One of the reasons behind this trend is that beer is considered as a “summer drink” in Italy. However, beer is becoming increasingly appreciated by consumers in Italy, who start to drink it in wintertime as well.

Beer is increasingly considered as a trendy beverage, and is increasingly appreciated for its being natural and genuine. Its low alcohol content is particularly appreciated: at present beer with the alcohol content of around 5 abv accounts for almost 95% of Italian beer sales, and low alcohol beer for an increasing 1%.

The rate of growth in 2008 was due to a better knowledge of beer by Italian consumers, who are drinking it not only when eating a pizza but more as a drink before or after the main meal. Growth in value terms was due to increasing consumption, as well as to an increase in the average price, an increase that was only partially absorbed by manufacturers, mostly in the case of the off-trade channel.

The fastest growth was registered by low/non-alcohol beer. Although it still remains a ...More Info

Poland’s beer producers report a decline in sales during the first quarter of this year, Rzeczpospolita communicated on May, 25.

According to industry participants, sales of beer in Poland dropped by 10% in comparison with the first quarter of last year.

Unlike high-proof spirits, the fall of demand for beer was not caused by higher excise tax, analysts comment.

“Beer sale in Poland has been decreasing since 2008,” claims Melania Popiel from Carlsberg Polska. She predicts that, in 2009, the demand for beer in Poland might be even five percent lower than in 2008.

The economic crisis has not been significantly affecting Budweiser Budvar, N.C. for the time being, the Czech brewer posted on its web site on May, 13.

During this year’s first four months, the brewery sold the total of 374,538 hectolitres of beer, which represents an annual decrease of 1.6%. Sales revenues for this period, however, annually rose by 2.28%.

The production fall was a result of sales decrease in January and February; nonetheless since March the brewery has been distinctively increasing its production, Budweiser Budvar reported.

In March, Budweiser Budvar’s rise in sales reached 4% and in April even 8% compared to the same months last year. April 2009 thus made the most successful April in the brewery’s history. The record-setting April results were significantly helped by the export with its 20% annual increase.

“We believe that we will manage to make up for the sales deficit from the beginning of the year. April export results as well as local sales results indicate a good start for the forthcoming season,” says Budweiser Budvar’s business manager Robert Chrt, adding “Nevertheless, it is indeed too early to estimate this year’s overall results, as the most important selling period still lies before us. However, it is pleasant ...More Info

After Thailand’s government raised the excise taxes on beer, another danger is impending over the nation’s brewing industry - the Asean Free Trade Agreement (AFTA) is to abolish import tariffs on beer as from 2010, Bangkok Post reported on May, 26.

Prin Malakul, corporate affairs director of Thai Asia Pacific Brewery Co, the local producer of Heineken beer, said Thai beer producers might not be seriously aware of the zero import tariff on beer under Afta by 2010.

As a result, the Thai beer industry may face a flood of cheap imported beers, experts maintain. When the zero import tariff takes effect, international beers with production in countries such as Laos, Vietnam and China, will probably flood into Thailand.

These imported beers would have very low production costs and would threaten local beers, priced much higher largely due to huge tax burdens.

“I think many of us are frustrated about the current hike in excise tax on alcoholic beverages,” said Mr Prin. “But the threat of a zero import tariff will happen next year for sure. If we are not strong enough to fight a possible flood of imported beer, we will suffer a lot.”

It is widely expected that giant international beer brands ...More Info

The cash crisis at Cobra Beer, the Indian lager group controlled by Lord Bilimoria, is expected to precipitate a company voluntary arrangement (CVA) or a pre-pack administration as the company is restructured ahead of a sale, The Times communicated on May, 23.

According to sources, the group, which in November appointed Rothschild to find a buyer, is understood to be close to agreeing the sale of the Cobra brand in the UK to a new joint venture controlled by Molson Coors, the American brewer behind the Carling and Worthington brands.

A mooted sale of the smaller Indian business to Wilbur Ross, the wealthy American investor, is understood to have hit a wall and alternative options, including a refinancing, are being considered. It has also launched a restructuring to reduce costs, scaling down its presence from 24 states to 13, renegotiating its brewing and distribution arrangements and halving its staff.

Negotiations over the sale of the British business have been complicated by mounting losses. While its main business supplying Indian restaurants is performing well, it has sought to buy market share in the pub and retail sectors with low pricing, while spending heavily on marketing.

According to the sale memorandum, it reported underlying ...More Info

France’s barley production in 2008/2009 will not reach 12.3 mln tons, ONIGC cited a FranceAgriMer report on May, 13.

About 10.7 mln tons will be available on the market, taking into account the 0.7 mln tons stock of the beginning of the crop year and the imports estimated at 50,000 tons.

France’s domestic barley consumption is set at 2.5 mln tons, of which 1.6 mln tons for feed use (+ 100,000 tons as compared to the previous forecast).

France is expected to sell about 3.6 mln tons of barley to other EU nations in the current crop year (estimate revised upwards by 190,000 tons from last month due to good sales prospects in Belgium, Germany, and Spain).

Exports to third countries are maintained at 1.2 mln tons of barley. Malt exports are expected to remain flat on the previous year, at about 1.2 mln tons.

The estimate of France’s ending stocks of barley has been reduced to 2.1 mln tons, or by 370,000 tons from the last month’s forecast.

Canada's biggest grain business Viterra Inc's chief executive says ABB Grain Ltd shareholders have been offered a premium price and the chance to increase sales overseas through his company's A$1.6 billion takeover offer, The Age reported on May, 24.

"It is a rather substantial premium for the combination," Viterra CEO Mayo Schmidt said.

Mr Schmidt said his company was paying a "material premium" for Adelaide-based ABB, equivalent to about 30 per cent above the closing price on April 27, the day before the companies said they were in discussions.

The offer, announced on May 19 and backed by ABB, was also worth up to 60 per cent more than the volume weighted average price for the three months until April 27, according to the agreement.

Viterra's offer, which allows investors to choose the proportion of cash and shares, is worth between A$9.11 and A$9.41 per share including a special dividend of 41 cents per share to be paid by ABB.

ABB shareholders, 46 per cent of whom are growers or ex-growers, need to approve the deal and overturn a 15 per cent shareholder cap clause in its constitution.

Mr Schmidt said Viterra would open up premium markets for grain producers.

"We see for producers... having access to ...More Info

Ch. Schönberger

Introduction
Bitter is, or should be, a descriptive term for beers. What makes the beer bitter in the first place is the use of hops. The range of bitter units in beers used to be between 20 and 50 IBU (International Bitterness Units). Nowadays there is a very clear trend towards mild beers with bitter units between 10 –25 and sometimes even lower. Originally used as a preservative in beer, newest findings show us what hop-derived substances offer in regard to health benefits. So there is hope that a new triumphant success of hops might go along with a new increase of bitterness in beer. Bitterness is a topic which is very important for all brewers and being a question of taste it can be discussed to everyone’s taste. This article is to give a review on the knowledge about bitterness in beer and the challenges in sensory and analytical evaluation of bitterness. The bitter taste reception is different from the reception of the other four taste qualities, which are sour, sweet, salty and umami, because evolution told us to be alert to bitter foods and rightly so since it can be equated with dietary danger. Rancid fats, hydrolysed proteins, plant-derived alkaloids, and toxins generally have an unpleasant bitter taste. Also microbial fermentation often results in bitter tasting compounds (1). But bitter flavours also contribute to the palatability and digestibility of food and beverages. Beer is not the only consumer good with the tendency of decreasing bitterness. Responding to taste-driven consumer demand of less bitter food, the food industry generally tries to remove bitter compounds like phenolic compounds, flavonoids, isoflavones, terpenes, and tannins from foods destined for human consumption. Because of such efforts, current food supply is less bitter than it might otherwise be (2,3). Load full article, 15 pages, 286 Kb, PDF file