Base Currency: Euro, EUR on 29-September-2004 1 EUR = 1.2319 USD 1 EUR = 0.6798 GBP 1 EUR = 1.5677 CAD 1 EUR = 1.7189 AUD 1 EUR = 137.21 JPY 1 EUR = 3.5319 BRL 1 EUR = 35.9961 RUB	Base Currency: US Dollar on 29-September-2004 1 USD = 0.8120 EUR 1 USD = 0.5518 GBP 1 USD = 1.2726 CAD 1 USD = 1.3953 AUD 1 USD = 111.39 JPY 1 USD = 2.8670 BRL 1 USD = 29.22 RUB
EUR/USD Chart

Denmark: Carlsberg A/S announced on 28 September 2004 that it makes further investments in North-West China. Carlsberg has entered an agreement with Ongo Investment Pte Ltd., a Singapore registered company, and various minority shareholders to acquire 34.5% of Wusu Brewery, located in the Xinjiang Autonomous Region in North West China. The brewery will in the future be operated in a joint venture between Carlsberg and the Blue Sword Group, a local company in the region. The parties have agreed not to disclose the acquisition prise. Wusu Brewery has a capacity of approximately 2.5 million hl and a 60% market share in the region (equivalent to a total sales volume of 1.5 million hl beer). "Carlsberg has probably paid a maximum of about 100 million crowns ($16.5 million) for the company. It seems a sensible buy and is in keeping with Carlsberg's strategy in the region," said Handelsbanken analyst Torben Sand. He said the move would not prompt him to make any major revision to his Carlsberg forecasts. Annual per capita consumption of beer in the region is around 14 litres, which is below the national average of 20 litres per year, giving significant potential for growth. “The acquisition of Wusu Brewery is a further step in fulfilling Carlsberg's strategy to establish a strong position in the western Chinese provinces,” said Jesper B. Madsen, Carlsberg’s Senior Vice President for Asia. “Recently, Carlsberg invested in the market leaders in the Gansu Province and in Tibet. Carlsberg also has a joint venture with our partner in the Gansu province to build a greenfield brewery in Qinghai province. Finally, Carlsberg bought the leading brewery in the Yunnan Province last year. With future engagements in several breweries, Carlsberg is now in a market leading position as well as the only international brewer with significant presence in the western part of China which geographically constitutes about one third of China and has more than 100 million inhabitants.” Yours faithfully Carlsberg A/S Attached: Map of Carlsberg’s engagements in West China. At 0925 GMT, shares in Carlsberg were trading down 0.4 percent at 277 crowns, while the Copenhagen blue-chip KFX index was flat. In July, Carlsberg paid 115 million crowns for a 50 percent stake in Chinese Lanzhou Huanghe Brewery in the north-western province of Gansu. Carlsberg said the Lanzhou Brewery also had a capacity of 2.5 hectolitres. While it declined to give details, the company said the deal would have a slightly positive effect on its full-year guidance.

USA: Anheuser-Busch announced on September 28 that Budweiser becomes international beer sponsor to support Beijing 2008 Olympic Games. The International Olympic Committee (IOC), the Beijing Organizing Committee for the Games of the XXIX Olympiad (BOCOG) and Anheuser-Busch, Inc., announced today that Budweiser will be the official “i nternational beer sponsor” to support the Beijing 2008 Olympic Games. BOCOG Vice President and Secretary General Wang Wei, Chief Executive Officer and President of Anheuser-Busch Cos., Inc., Patrick Stokes and IOC representatives attended the press conference. As part of the sponsorship, Anheuser-Busch has rights to use the 2008 Olympic Games logo for promotional purposes in China and 29 other countries around the world. This marks Anheuser-Busch’s first sponsorship of a summer Olympic Games held outside the United States. “The development of the Olympic marketing program in the past two decades has proven that a closer relationship between the IOC, the Organizing Committee for the Olympic Games (OCOGs) and the business community constitutes a vital guarantee for the success of an Olympic Games. The participation of companies with international brand names has laid a solid material groundwork for a successful Olympic Games, and the Olympic platform, on the other hand, provides an important and rare opportunity for these companies to build up their corporate images on an international basis,” Wang Wei said at the press conference. “China is the most important international market for Anheuser-Busch, and Budweiser’s sponsorship of the 2008 Olympic Games reinforces our commitment to supporting the communities where we do business,” Stokes said. “We’re proud to support the Olympic movement in China and wish the best of luck to the China Olympic Team as they compete for gold in Beijing.” Budweiser plans to support its sponsorship of the 2008 Olympic Games by using the official marks on packaging, point-of-sale materials, sales promotions, branded merchandise and other marketing programs. The agreement also extends Budweiser’s sponsorship of the China Olympic Team through 2008. To underscore Budweiser’s support of the team, Wei, Stokes and Tony Ponturo, vice president, global media and sports marketing, Anheuser-Busch, Inc., today honored athletes GUO Jingjing (diving), LI Xiaopeng (gymnastics) and MA Lin (table tennis) with a gift in celebration of their recent medal-winning performances in the 2004 Athens Olympic Games. GUO captured gold medals in both the women’s 3-meter springboard and women’s synchronized 3-meter springboard diving events; LI earned an individual bronze medal in the men’s parallel bars competition; and MA captured gold in men’s doubles table tennis in Athens. Budweiser has been an official sponsor of the China Olympic Team since 2000 ...more info

Russia: “Baltika” brewery Co opens its new warehouse terminal in Irkutsk, of the Union of Russian Brewers announced last week. One of these days, official opening of class A seventh warehouse terminal of the Baltika Co. in Russia was held in Irkutsk. Baltika terminals already operate in Ekaterinburg, Novossibirsk, Ufa, Lermontov (Caucasian Mineral Waters), Nizhny Novgorod and Voronezh. The Baltika Co. makes high demands to storage conditions of beer produced at its own plants. Gross area of Irkutsk new terminal is equal to 5200 sq. m (capacity of 160 thousand cases). The warehouse is equipped with automatic ventilation and heating system, enabling to ensure ideal permanent temperature regime of beer storage, regardless of weather conditions. In the terminal, beer is completely isolated from access of direct sun’s rays, inside the premises special sunny lighting is provided. The products are transported to the warehouse by Japanese auto-loaders “Toyota”, irreproachably smooth concrete floor with special coverage is built to ensure their convenient movement. “Baltika” brewery Co. creates convenient conditions for its employees at all its enterprises. Terminal in Irkutsk is of no exception. Vast and light offices, equipped with modern office equipment and conditioning system have been built. The companies’ terminals all over Russia have been united into corporate computer network, which enables to control and manage operatively production flows. Before starting construction tender was announced, with the participation of local, non-resident and foreign companies. The tender commission considered feasibility of each bid from the viewpoint of logistics, building terms and conditions. In accordance with the tender results, Closed JSC “Inrkutskpromstroi” became general contractor. LLC “Veles” and LLC ‘’Baikal-Kami’’ also participated in the construction. The companies’ investments into the project amounted to about USD 3 mln. Warehouse complex was constructed and put into operation during 12 months, with application of advanced technologies and leading building materials.

Australia: Foster’s Group Limited announced on 29 September 2004 that it has successfully priced a US$300 million offering of 4.875% notes due October 1, 2014. The 10-year offering was priced at a spread of 88 basis points over the benchmark 10 year US Treasury or a re-offer yield of 4.884%. The securities were issued by Foster’s wholly owned subsidiary, Foster’s Finance Corp. and are fully and unconditionally guaranteed by Foster’s Group Limited. The issue is rated Baa1 by Moody’s and BBB+ by Standard & Poor’s. The net proceeds from the offering of the notes will be used to repurchase some or all of the company's US$200 million 6.75% Notes due 2005 and up to €120 million of the company's €300 million 5.75% Medium Term Notes due 2005, the tender of which was advised to the market on 24 September 2004. The note offering is a further step in the Group’s previously announced intention to restructure a portion of its interest rate and debt maturity profile.

China: Chongqing Brewery Co., China's sixth- biggest brewer by production, said the country's commerce ministry approved its plan to sell a 19.5 % stake to Scottish & Newcastle Plc., the brewer of John Smith's and Kronenbourg brands, Bloomberg announced on September 29. The company's parent got permission from the ministry to sell 50 million state-owned shares to the U.K.'s largest brewer, Chongqing Brewery said in a statement to the Shanghai stock exchange. Scottish & Newcastle said in February it will pay 35 million pounds ($65 million) for the stake. Scottish & Newcastle is making its first foray into China, where Anheuser-Busch Cos., SABMiller Plc and Carlsberg A/S are stepping up expansion as more Europeans and Americans cut back on beer drinking. China is the world's last beer producer, making 25.7 million tons last year, up 6.4 percent from 2002, according to Tsingtao Brewery Co., the nation's biggest brewer. Carlsberg yesterday said it agreed to buy 34.5 percent of Wusu Brewery in Xinjiang, northwestern China, for an undisclosed sum, bringing the number of Chinese breweries it's acquired stakes in since July to five. Wusu can brew 180,000 tons of beer a year, according to its Web site. Chongqing, in the southwest, is China's most populous city, with about 31 million people, almost the population of Canada.

Canada: Molson Inc.'s chances of completing a $3.4 billion merger with Adolph Coors Co. may be declining, as some of the company's biggest shareholders reject its plan to give stock-option holders a say in the transaction, Bloomberg revealed on September 26, 2004. Opposition to the deal has stiffened since Sept. 17, when Canada's biggest brewer restated in a regulatory filing that it intends to give company options the same voting rights as Class A shares. The options, most of which are held by Molson executives, represent 5.3 percent of the Montreal-based company's 111.2 million Class A votes. "I was leaning toward grudging acceptance of the merger, now I'm undecided," said Jim Hall, who oversees more than 214,000 Molson A shares at Calgary's Mawer Investment Management. "I'm uncertain about management's motivation." Molson faces resistance from shareholders with at least 9.6 percent of the A votes, including Caisse de Depot et Placement du Quebec, Jarislowsky Fraser Ltd., Janus Capital Group Inc., Bissett Investment Management, Mawer and Ontario Teachers' Pension Plan. Ontario Teachers said it's lobbying the Canadian Coalition for Good Governance, whose members held 25 percent of the A shares on Dec. 31, to join a suit against the option plan. That could jeopardize the merger, which requires the approval of two-thirds of the A shares. "I don't believe this is in the best interests of shareholders," Ron Sachs, who holds 594,000 Molson A shares in the Janus Orion Fund, said by telephone from Denver. "They could have gotten a premium or found another buyer who might pay more." Instead, Molson and Coors made it difficult for another bidder to trump the merger before the vote. In a Sept. 17 joint filing with the U.S. Securities and Exchange Commission, Coors said it would end a brewing agreement that generates 20 percent of Molson's profit if the Canadian company sells control or a "significant investment" to a direct or indirect competitor. The document also suggests that Molson may be forced to pay Coors $75 million if a competing bid emerges before the vote and shareholders then reject the merger. The Globe and Mail and the Wall Street Journal reported last week that SABMiller Plc, the world's No. 4 brewer, has held preliminary talks with Ian Molson, 49, a cousin of Molson Chairman Eric Molson who wants to defeat the merger. According to the SEC filing, Ian Molson notified the company in July that he was in talks with a group of investors considering an offer of $40 Canadian a share ...more info

Malt News

USA: Great Falls development officials have proposed a land transfer they hope will clear the way for construction of a railroad needed to serve International Malting Co.'s new malt-processing plant north of Great Falls. If everything goes as planned, construction on the railroad could begin as soon as November, John Kramer of the Great Falls Development Authority said on September 27. "Everybody wants to see this getting done; everybody realizes the importance of getting the rail spur done," he said. The land transfer still faces an environmental review, public comment and action by the state Fish, Wildlife and Parks Commission. The 4.5-mile rail line, which IMC officials have said is vital for operation of the plant, will be used to ship barley into the plant and finished product out of the plant. The $60 million plant is scheduled to open next spring. It is expected to employ 35 people, The Great Falls Tribunes posted on September 28. The plant will require about 11 million bushels (0.24 million metric tonnes) of barley each year and will produce about 12 million bushels (0.185 million metric tonnes) of malt. A legal snag discovered last month had threatened to delay construction of the rail line for several months. Part of the rail line must cross land protected by a state-owned conservation easement, just north of the Missouri River. The easement forbids any development on the land. Earlier this month, state officials said the Development Authority had to find some additional land to exchange for use of the protected land. The authority plans to build and finance the railroad spur. Kramer said Monday, September 27 the authority is arranging to buy 20 additional acres that adjoin the protected land and have those acres placed under the same protection. The 20 acres would be added to the 2,400 acres of protected land that is owned by PPL Montana and stretches along the north bank of the Missouri River.

Barley News

Australia: The merger of ABB Grain Ltd, AusBulk Ltd and United Grower Holdings has been finalized following the lodgement of documentation with the Australian Securities and Investments Commission on 27 September, ABB Grain posted on September 27. To facilitate the merger, ABB Grain issued approximately 90.67 million new B-Class shares on 27 September to UGH and AusBulk scheme shareholders (excluding UGH), as part of the two schemes of arrangement. Chairman of the merged entity, Perry Gunner, said the strong endorsement of shareholders at separate company meetings on September 21 had underscored the strength of support for a new entity in the grain industry that while locally-based would have a global, export-oriented focus. “Our shareholders have strongly endorsed our vision for a new company that will take the best of the three preceding entities to create an even stronger force going forward,” Mr Gunner said. ABB Grain was now a locally based, export-oriented company extending across the grain supply chain from the farm gate to the end-user and including interests in grain transport, storage, processing and marketing. Reflecting its antecedents ABB had unique expertise in barley marketing, malting and a strong grower focus. “Being competitive should not just be thought of in terms of the Australian industry but in the context of what is happening internationally,” Mr Gunner said. “As a company with a market capitalisation in excess of one billion dollars based on the recent market share price, ABB Grain will have the critical mass to expand globally and increase the value of the grain which is currently exported. “As an integrated business we will have a better ability to service international end-users and grow shareholder value in the longer term,” Mr Gunner said. It is expected that trading of the new ABB B-Class shares will start on the Australian Stock Exchange on a deferred settlement basis on Tuesday, September 28. Holding statements for the new ABB B-Class shares will be dispatched on October 5, three days earlier than previously advised.

Theoretical malt prices.


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

Theoretical malt prices for crop 2003 are not quoted.

Malting barley prices. French barley prices.

Nominal prices.

EURO = USD 1.2319 September 29, 2004
Crop year		2003		2004
Parity		FOB Creil		FOB Creil
Position		July 2003		July 2004
Type	Variety	EURO	USD	EURO	USD
2RS	Scarlett	nq	nq	112.00	137.00
2RS	Prestige	nq	nq	110.00	135.50
2RS	Cellar	nq	nq	110.50	136.50
2RS	Aspen	nq	nq	109.50	135.00
2RS	Optic	nq	nq	109.50	135.00
2RS	Astoria	nq	nq	109.00	134.50
2RS	Cork	nq	nq	109.00	134.50
6RW	Esterel	nq	nq	100.00	123.50

nq - Not quoted Prices for Danish and UK malting barley are available on site www.e-malt.com/MarketPrices

Table of the week

Australia barley crop estimates 2004-2005   Area s, ’000 ha  2004-05 Yield f, t/ha 2004-05 Production f, '000 t  2004-05 Production change from 2003-04, % Production, '000 t Five year average to 2002-03  New South Wales  640  2.00  1,293  13 %  1,070  Victoria  760  2.04  1,550  -11 %  1,173  Queensland  90  1.72  155  - 28 %  202  Western Australia  1,000  2.05  2,050  -31 %  1,511  South Australia  1,071  2.07  2,214  -13 %  2,000  Tasmania  11  2.64  29  45 %  25  Total Australia  3,572  2.04  7,291  -15.5 %  5,981 Source: ABARE forecast, 7 September, 2004. Graph of the week Agenda September 2004: 6th BELGIAN BEER WEEKEND; China Brew 2004 / China Beverage 2004; International Brewery and Soft Drinks Industry Exhibition; FOOD & BEVERAGE PROCESSING & PACKAGING INDONESIA 2004; Pivoindustria International Beer Industry Exhibition; National Beer Wholesalers Show 2004; PAN ASIAN FOOD & BEVERAGE TRADE SHOW 2004; Barley Malt Quality Evaluation Short Course; EUROMALT BARLEY SEMINAR 2004; OCTOBERFEST Famous German Beer Festival; Agro + Food + Drink + Tech Expo Georgia Food, Beverages and Processing Equipment Trade Fair; bevex Beverage Trade Fair; InterBev 2004; YUGOSLAVIA INTERNATIONAL FAIR OF FOOD & BEVERAGES 2004; BevExpo 2004; Great American Beer Festival; October 2004: OCTOBERFEST Famous German Beer Festival; Great American Beer Festival; bevex Beverage Trade Fair. Germany; Great Welsh Beer & Cider Festival; ST. PETERSBURG FOOD SALON 2004; Beer Fair. Spain; Expo Bebidas Beverage Exhibition. Mexico; EXPOALIMENTOS Y BEBIDAS 2004. Panama; Fall Eastern PA Breweriana; Knoxville Brewer's Jam - A Memorial to Tom Rutledge; INTERPRODTECH Food and Beverages Processing Exhibition. Russia; Alko and Drinks Show Alcoholic Beverages and Non-alcoholic Drinks Exhibition. Russia; WORLD FOOD KAZAKHSTAN 2004; PAN ASIAN FOOD & BEVERAGE TRADE SHOW 2004. Canada; More events are available on site e-malt.com