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E-Malt.com Newsletter 35a
August 24 - August 26, 2009
Open!
Click here to get full size Newsletter


Quote of the week

"The roots and herbs beaten and put into new ale or beer and daily drunk, cleareth, strengthen and quicken the sight of the eyes."
Nicholas Culpeper
E-Malt.com recommends:


Currency Rates
Base Currency: Euro, EUR
on 26-August-2009

1 EUR = 1.4305 USD
1 EUR = 0.8731 GBP
1 EUR = 1.5434 CAD
1 EUR = 1.7086 AUD
1 EUR = 134.782 JPY
1 EUR = 2.6375 BRL
1 EUR = 45.0047 RUB
1 EUR = 9.7868 CNY
Base Currency: US Dollar
on 26-August-2009

1 USD = 0.6991 EUR
1 USD = 0.6103 GBP
1 USD = 1.0789 CAD
1 USD = 1.1943 AUD
1 USD = 94.2241 JPY
1 USD = 1.8438 BRL
1 USD = 31.4615 RUB
1 USD = 6.8417 CNY
Currency Rates Chart

Equities of the Largest Breweries

Equities of the Largest Breweries

Average Market Prices Change trend

August 26, 2009

Type Crop 2008 Crop 2009
2rs Barley nq   EUR100.0-102.0 -2.88%
6rw Barley nq   EUR101.0-103.0 -1.92%
2rs Malt EUR320.0-322.0 -0.31% EUR294.5-296.50 -1.83%
6rw Malt EUR313.5-317.5 -0.32% EUR293.0-297.0 -1.50%
Feed Barley nq    EUR95.0-98.0

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

The Netherlands: Heineken reports first half 2009 results ...Click here
China: Beer output up 6% in the first half paves the way for record annual results ...Click here
CIS: Efes Breweries report a 2.4% increase in EBITDA as sales volume and net sales revenue drop in the first quarter ...Click here
Australia: Foster’s reports increased profit and strong beer sales for fiscal 2009 ...Click here
India: United Breweries and Heineken reportedly taking a step towards reconciliation ...Click here
Tanzania & Kenya: East African Breweries issues a notice to terminate brewing and distribution agreement with Tanzania Breweries ...Click here
Russia: New malting plant put into operation ...Click here
World: ICG forecasts a 141.7 mln tons barley crop for 2009/10 ...Click here
Canada: Low barley production expected this year not to make happy Canadian maltsters - source ...Click here
World: Hop crop 2009 not to reach last year’s results ...Click here


More News


Croatia: New Carlsberg brewery inaugurated by the President of Croatia ...More Info
United States: The nation’s two largest brewers to raise prices ...More Info
Cyprus: Beer consumption falls on lack of tourists ...More Info
World: Diageo expected to report higher profits despite the impact of the economic downturn ...More Info
Australia: Maltsters encourage brewers to try new malts ...More Info
United Kingdom: UK barley exports in 2008/09 up 101.2% yoy ...More Info
Denmark: Danish malting barley to be in reasonable availabilities this year ...More Info
Mexico & United States: Grupo Modelo to keep Corona beer prices steady despite consumers turning to cheaper brands ...More Info
Brazil: Beverage Association request antitrust investigation into AmBev’s bottling policy ...More Info
United Kingdom: Malting barley quality in the South found wanting ...More Info
Australia: Preferences for premium beers gaining strength ...More Info
Rwanda: Government to sell its stake in Bralirwa brewery ...More Info
India: Budweiser now available in the north ...More Info
Go to our news database with more than 15663 articles.
Today with the possibility to be translated in 7 different languages!
DE FR SP IT PT RU CN

Brewery News

The Netherlands: Heineken reports first half 2009 results

Heineken N. V., the Netherlands-based brewing giant, announced on August, 26 organic net profit (beia) growth of 12%, despite lower volumes, driven by robust pricing and cost reductions in the first half of 2009.

Net profit (beia – before exceptional items and amortization) amounted to EUR483 million, diluted by financing costs related to acquisitions. Net profit increased by 20% to EUR489 million due to organic growth and an exceptional gain on the purchase of Globe notes and bank debt, Heineken said.

Organic EBIT (beia) growth constituted 13% to EUR993 million. Heineken’s revenue grew 11% to EUR7.147 bln. First time consolidation added EUR963 million (15%) to revenue. Organically, revenue declined 0.4%.

A weakening of foreign currencies against the euro accounted for a 3.2% decrease in revenue, mainly due to the Polish zloty, Russian rouble, British pound and Nigerian naira, which was only partly offset by a positive effect of the US dollar, Heineken said.

The brewer also reported EUR50 million of cost savings from Total Cost Management programme, which equates to annualised savings of EUR120 million. Free Operating Cash Flow was EUR383 million in the first half of 2009, EUR531 million more than prior year; net debt/EBITDA (beia) ratio improved to 3.1x (year-end 2008: 3.3x).

The ...More Info


China: Beer output up 6% in the first half paves the way for record annual results

China's beer output increased by 6% to 20.51 mln tons in the first half of 2009, the China Business News cited the head of the industrial association on August, 24.

The volume of beer produced in China in the first six months of the current year paves the way for the country to be the world's largest beer producer and consumer for the eighth consecutive year, experts believe.

China's annual beer output is about 40 million tons, higher than the US' 24 million tons and Germany's 12 million tons, said Wang Yancai, director general of the China Alcoholic Drinks Industry Association.

Beer output and sales volume are expected to grow 3 to 5 percent annually, said Wang.

There are 251 beer companies in China, operating 550 beer manufacturing plants across the country, according to China Business News.

China's top three beer makers - Snow Beer, Tsingtao, and Yanjing Beer - took about 40 percent of the market, Wang noted.

China became the world's largest beer producer in 2002.


CIS: Efes Breweries report a 2.4% increase in EBITDA as sales volume and net sales revenue drop in the first quarter

Efes Breweries International N.V. (EBI) announced on August, 24 its consolidated reviewed financial results for the six months period ended 30 June 2009 in accordance with IFRS.

EBI’s H1 2009 sales volume fell by 4.6% to 6.7 mln hl (7.1 mln hl in the first half of 2008). Organic sales volume declined by 2.8% in the period (By excluding 1) January – February 2009 sales volume of JSC Lomisi in Georgia, which EBI acquired in February 2008 and started full consolidation starting from March 1st 2008; 2) the sales volume of Efes Serbia, which is excluded from EBI’s financials after the end of 1H2008).

Second quarter sales volume was down by 4.8% compared to a year ago due to the continued effects of a sharp economic slowdown in the region combined with the strong base of last year, when sales volume was up by 10%.

H1 2009 consolidated net sales revenue was US$416.9 million, indicating a decline of 20.4% year on year. Net sales revenue per litre was down by 16.6% in the period. The decline was mainly attributable to the depreciation of local currencies versus EBI’s reporting currency USD.

On an organic basis (by excluding the effect of Georgia and Serbia), EBI’s consolidated ...More Info


Australia: Foster’s reports increased profit and strong beer sales for fiscal 2009

Foster's Group Ltd, Australia's largest brewer, reported on August, 25 a 4% increase in net profit (before significant items and SGARA*) to A$741.5 million for the twelve month period ended 30 June 2009.

Cash flow was robust and benefited from tighter management of working capital. Cash conversion increased 8.7 percentage points to 101.9% of EBITDAS** and cash flow after dividends was A$308.9 million, Foster’s said.

Net sales revenue increased 2.7% to A$4.49 bln and EBITS*** was up 2.3% to A$1.17 bln. On a constant currency basis net sales revenue declined 1.6%, EBITS declined 2.7% and earnings per share increased 2.4%.

Reported net profit increased to A$438.3 million and included significant items totalling A$397.6 million (A$287.2 million after tax) identified in February 2009.

Foster’s said it retains a robust financial position with significant available liquidity. Interest cover was 7.9 times and at 30 June 2009 Foster’s had cash balances of A$133 million and A$1.6 billion of committed undrawn bank facilities.

Net debt increased A$208.7 million as cash flow from operations after dividends of A$308.9 million were primarily offset by payments associated with the business Transformation Agenda and a A$404.1 million non-cash impact from exchange rate movements since June 2008. Reflecting the increase in net debt, gearing ...More Info


India: United Breweries and Heineken reportedly taking a step towards reconciliation

India’s leading brewer United Breweries (UB) has offered the Dutch beer giant Heineken the right to have equal representation on the UB board, The Economic Times reported on August, 26.

The move represents another effort by UB to settle differences over the foreign company’s role in the Indian entity, more than one-and-a-half years after Heineken gained an entry into UB by buying Scottish & Newcastle’s (S&N) stake.

As stated by a person close to the development, an informal understanding has been reached, and the parties would soon unveil a new business pact as joint owners of India’s largest beer maker, UB. He added that the formalities of wrapping up court cases and arbitration have been initiated.

“Discussions are proceeding on the right track. We are hopeful of clinching a deal in the near future, maybe in 4-6 weeks,” UB chairman Vijay Mallya said.

The broad contours of the deal suggest that Heineken will get the same rights, such as the power to nominate the chief financial officer and equal board representation, which S&N used to enjoy during its association with UB. Heineken has been asking for these rights ever since it acquired S&N’s 37.5% in UB, equal to Mr Mallya’s stake, in January 2008. ...More Info


Tanzania & Kenya: East African Breweries issues a notice to terminate brewing and distribution agreement with Tanzania Breweries

The East African Breweries Ltd (EABL), a subsidiary of Diageo plc, has issued a 12-month notice to terminate its Brewing and Distribution Agreement (BDA) with Tanzania Breweries Limited (TBL), a subsidiary of SABMiller, The Daily News reported on August, 22.

The EABL's notice has come a few days after Judge Christopher Clarke of the UK commercial court has temporarily suspended a move by the EABL to acquire Serengeti Breweries Ltd (SBL) until arbitration between Diageo and SABMiller is concluded. Mr Clarke made the ruling last week following a suit by SABMiller that such acquisition violates a non-compete agreement between EABL and TBL.

According to the EABL Corporate Affairs Manager, Ken Kariuki, the notice was as a separate matter to another notice of terminating the agreement reached in 2002.

The initial term of the BDA and SPA agreement with TBL was for five years. It expired in 2007. Since then the contract has continued to roll forward in accordance with its terms and despite a long series of discussions with SABM to renew, "we have been unable to agree the terms of a permanent renewal," he said.

The 2002 deal stopped competition in Tanzania and Kenya which had stagnated beer prices for close to five ...More Info


Malt News

Russia: New malting plant put into operation

Breweries Supply International group has set in operation a new malting plant in St. Petersburg last month, RBC Daily reported on August, 26.

The capacity of the new facility is 105 thousand tons per year, which represents about 7% of the Russia’s total malt output. Total investments in the plant amounted to EUR65 mln.

According to industry experts, several years ago Russia experienced a real boom in construction of malting plants. Today, however, the situation has changed and the country’s malting plants are working at 60-70% of their capacity.

In 2008, Russia’s malt production was 1.38 mln tons (down 8% versus 2007). In January – July 2009, the nation’s malt output volume decreased by 15.6% as compared to the same period last year. The drop is due to falling demand for beer, as beer output shrunk by 6.9% in the first half of 2009.


Barley News

World: ICG forecasts a 141.7 mln tons barley crop for 2009/10

World barley production in 2009/10 will amount to 141.7 mln tons, 8% below last year’s bumper crop, IGC said in a report published at the end of the last month.

The July forecast is 1.1 mln tons less than projected in June this year as reduced forecasts for Canada, the United States outweigh increases in the CIS and North Africa, IGC said.

World barley consumption is expected to fall by 2 mln tons to 144 mln. World malting and industrial barley consumption is forecast to increase by 1% in 2009/10, due to rising production of barley-based ethanol in the EU.

World closing stocks at the end of 2009/10 are forecast to decline by 9%, to 27.3 mln tons. The forecast is reduced by 1.2 mln tons from June as a result of a smaller carry-in estimate and a lower global crop figure. Carryover stocks in the EU, which typically account for over 25% of the world total, are forecast 0.5 mln tons lower than before, at 8.0 mln (9.2 mln in 2008/09).

World barley trade (excluding malt) in 2009/10 is forecast at 17.1 mln tons, unchanged from a month ago.

Due to much lower import needs in Near East Asia and North Africa, total shipments ...More Info


Canada: Low barley production expected this year not to make happy Canadian maltsters - source

StatsCan expects Canada’s 2009-10 barley production to amount to 8.948 mln tonnes, Resource News International communicated on August, 21.

Pre-report expectations had ranged from 8.750 to 9.470 million tonnes while output in 2008-09 totalled 11.781 million tonnes.

"Anytime barley output drops below nine million tonnes a year, the industry does take notice as this normally translates into some tight ending stocks," said Mike Jubinville, an analyst with ProFarmer Canada in Winnipeg.

“The upside in barley, however, will be muted from a feed perspective, especially in view of the amount of distillers dried grains available from the ethanol sector and the potentially large U.S. corn harvest,” he added.

Canada's malting industry, however, will not be happy with the production estimate and could step up purchases of high quality barley in order to cover future requirements, said a private trade source, who did not want his name used.


Hops News

World: Hop crop 2009 not to reach last year’s results

World’s hop crop 2009 is expected to be slightly less than last year’s, Hopsteiner, one of the world’s leading hop suppliers, communicated on August, 20.

World’s total hop production is to reach just about 105.7 thousand tons as compared to 111.18 thousand tons harvested in 2008.

Germany’s hop production is expected to fall this year by 15.2% to 33.6 thousand tons. The US hop crop is estimated to have increased by 0.3% to 36.7 thousand tons. China’s hop output is forecast to increase by 8.8%. The Czech Republic is set to harvest 6.6 thousand tons, or 2.9% less than last year’s production. Both Australia and New Zealand are expected to report increases, whereas France’s hop production is estimated to have suffered a 95% decline to about 796 tons this year.

Growing conditions continue to be normal, Hopsteiner said.

Scientific Digest

Analysis of Protein and Total Usable Nitrogen in Beer and Wine Using a Microwell Ninhydrin Assay

Daniel G Abernathy, Gary Spedding and Barry Starcher

Abstract:
J. Inst. Brew. 115(2), 122–127, 2009 In this study we present a ninhydrin based microwell assay that can be utilized in place of the traditional Kjeldahl method for the determination of the protein content of beer or wine. In addition, the assay is ideal for the determination of free amino acids in beer (FAN), a term understood and used by brewers, and yeast assimilable nitrogen (YAN) used by enologists. The assay only measures alpha amino acids and ammonia so other nitrogen sources are not detected, resulting in a 30% reduction in total protein of a variety of beers compared to the Kjeldahl method, which measures nitrogen from all sources. The results also showed that only 25% of the total “protein” in beer is actually derived from peptides larger than 3,500 Kd. Analysis of beer or wine with the microwell assay for total usable nitrogen was compared to the standard FAN and YAN methods and conditions were determined for maximal efficiency and precision. Superior results were obtained with low reaction volumes and a stable sodium acetate buffered ninhydrin reagent at pH 5.5. As an alternative, for use with cuvettes, a reduced volume FAN assay using the same pH 5.5 sodium acetate buffered ninhydrin reagent gave comparable results. The assay is economical, rapid, accurate and applicable to large numbers of samples. Key words: beer, FAN, protein, wine, YAN Load full article, 6 pages, 405 kb , PDF file

Barley Prices
EURO = USD 1.4305 August 26, 2009  
 Crop year   2008   2009 
 Parity   FOB Creil   FOB Creil 
 Position   July 2008   July 2009 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  nq nq 103.00  147.00 
2RS  Prestige  nq nq 102.00  146.50 
2RS  Cellar  nq nq 101.00  144.50 
2RS  Sebastien  nq nq 100.00  143.50 
2RS  Tipple  nq nq 100.00  143.50 
2RS  Henley  nq nq 100.00  143.50 
6RW  Esterel   nq nq 102.00  146.00 


Theoretical Malt Prices

  EURO = USD 1.4305 August 26, 2009 
Crop year  2008 
Parity  FOB Antwerp 
Position  Aug 2009 - Sept 2009 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  323.50  463.00  355.00  507.50  347.00  496.50  361.50  517.00 
2RS  Prestige  322.50  461.00  353.50  505.50  346.00  494.50  360.00  515.00 
2RS  Cellar  321.00  459.50  352.50  504.00  344.50  493.00  359.00  513.50 
2RS  Sebastien  320.00  457.50  351.00  502.00  343.50  491.50  357.50  511.50 
2RS  Tipple  320.00  457.50  351.00  502.00  343.50  491.50  357.50  511.50 
2RS  Henley  320.00  457.50  351.00  502.00  343.50  491.50  357.50  511.50 
2RS   Average price  321.00  459.50  352.50  504.00  344.50  493.00  359.00  513.50 
6RW  Esterel   315.50  452.50  347.50  497.00  339.50  486.00  354.00  506.50 
Asia Malt 70/30  319.50  457.50  351.00  502.00  343.00  491.00  357.50  511.50 
**  Asia Malt 50/50  318.50  456.00  350.00  500.50  342.50  489.50  356.50  509.50 


  EURO = USD 1.4305 August 26, 2009 
Crop year  2009 
Parity  FOB Antwerp 
Position  Oct 2009 - Sept 2010 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  297.50  426.00  329.00  470.50  321.50  459.50  335.50  480.00 
2RS  Prestige  296.50  424.00  327.50  468.50  320.00  457.50  334.50  478.00 
2RS  Cellar  295.50  422.50  326.50  467.00  319.00  456.00  333.00  476.50 
2RS  Sebastien  294.00  420.50  325.50  465.50  317.50  454.50  332.00  474.50 
2RS  Tipple  294.00  420.50  325.50  465.50  317.50  454.50  332.00  474.50 
2RS  Henley  294.00  420.50  325.50  465.50  317.50  454.50  332.00  474.50 
2RS   Average price  295.50  422.50  326.50  467.00  319.00  456.00  333.00  476.50 
6RW  Esterel   295.50  424.00  327.50  468.50  320.00  457.50  334.50  478.00 
Asia Malt 70/30  295.50  423.00  327.00  467.50  319.00  456.50  333.50  477.00 
**  Asia Malt 50/50  296.00  423.50  327.00  468.00  319.50  457.00  333.50  477.50 

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

Italian Beer Market
(in 000 hl)
YearProductionImportExport Consumption
1998 12,193 3,681 373 15,501
1999 12,179 3,875 379 15,675
2000 12,575 4,142 428 16,289
2001 12,782 4,414 502 16,694
2002 12,592 4,437 689 16,340
2003 13,673 4,664 884 17,453
2004 13,170 4,873 849 17,194
2005 12,798 5,258 716 17,340
2006 12,818 5,814 781 17,851
2007 13,462 6,119 1,068 18,513
2008 13,273 5,996 1,503 17,776
Source: Assobirra
Graph of the Week


Source: Agriculture and Agri-Food Canada

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August 24
1853 1st potato chips prepared by Chef George Crum (Saratoga Springs, NY)
1869 Cornelius Swarthout patents waffle iron
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August 25
1609 Galileo demonstrates his 1st telescope to Venetian lawmakers
1900 Friedrich Nietzsche philosopher, dies in Weimar, Germany
1956 1st non-stop transcontinental helicopter flight arrived Washington D.C.

August 26
1541 Turkish sultan Suleiman occupies Budapest and annexes Hungary
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Agenda