Russia's industries and trade ministry has proposed drastic limits on beer sales. According to an industry expert, the proposal could affect over 25 percent of sales in Russia, Reuters reported on September, 29.

The proposals, which have yet to be reviewed and approved by the government and parliament, came only a month after President Dmitry Medvedev ordered tough measures to curb alcohol abuse, describing alcoholism as a "national disaster".

"It would be fatal (for the brewing industry)," said a source at a major Western brewer in Russia, who asked not to be named due to the sensitivity of the issue.

The ministry said in its documents it was proposing changes to legislation that would ban sales of beer via kiosks and in markets without affecting big shops and supermarkets.

Shares in Danish brewer Carlsberg, which owns Russia's largest brewer, Baltika, fell as much as 4.6 percent to a four-week low of 359.75 crowns but pared losses to close down at 363 crowns. Shares of SABMiller fell 0.4 percent, and Heineken's were down 0.3 percent.

An executive at Russia's brewers union said he estimated sales of beer via kiosks and in markets at 50 percent of total sales if restaurants are excluded, and 25 ...More Info

Belgium-based brewing giant AB InBev announced on September, 29 that it has completed the previously announced sale of Tennent’s Lager brand and associated trading assets in Scotland, Northern Ireland and the Republic of Ireland (part of InBev UK Limited) to C&C Group plc (“C&C”) for a total enterprise value of £180 million ($285.8 mln).

As part of the agreement, Anheuser-Busch InBev has appointed C&C as distributor of certain AB InBev brands in Scotland, Northern Ireland and the Republic of Ireland, and C&C has granted Anheuser-Busch InBev the right to use the Tennent’s Super and Tennent’s Pilsner brands in certain worldwide geographies.

The sale of these assets unlocks value for Anheuser-Busch InBev shareholders and is part of the company’s ongoing program to de-leverage the company as quickly as possible.

Lazard and Freshfields Bruckhaus Deringer LLP acted as financial and legal advisors, respectively, to Anheuser-Busch InBev.

Danish brewer Carlsberg will take over Scottish & Newcastle's 17.46% stake in Chongqing Brewery Co., Ltd. to become the Chinese company's second largest shareholder, SinoCast Daily Business Beat reported on September, 29.

Moreover, Carlsberg is considering relocating its headquarters in China to Chongqing. The company's plan to relocate the headquarters reflects the growing importance of the vast beer market in western China, according to an executive from the company.

By now Carlsberg has dominated the local beer market in Xinjiang, Tibet and Yunnan through purchases and equity participation.

Carlsberg currently runs over 20 breweries in China either as full owner or as a partner in a joint venture. With staff of over 6,000, most of these plants are in western China.

Chongqing Brewery, based in south-western China's Chongqing municipality, is the fourth largest brewer in China and one of four listed breweries. It has annual production capacity of over 2.8 mln tons.

Despite hopeful signs of an economic recovery in Western Europe and the United States, most countries reported extremely poor beer sales for the first half of 2009, a research note published earlier this month states.

The good exceptions are China (+ 6 %), Brazil, Africa. Japan had a remarkable figure of plus 0.2% for the first semester, but apparently a bad breakdown in July.

Other country figures are: Czech Jan/June minus 6%; France Jan/July minus 1%; Germany Jan/July minus 4.6%; Hungary Jan/April minus 10%; Romania Jan/June minus 10%; U.K. Jan/March minus 7.8%, April/June minus 4.8%; Ukraine Feb/June minus 18.3%.

Brewers: Efes minus 1.9%, Heineken minus 6.6%, SABMiller Europe minus 7%, all America minus 1%, Asia/Africa plus 11%.

Canadean’s estimate of 4% less beer sales in Western Europe seems too positive. An added negative feature for Europe is the transfer of production of several European premium beers (Beck’s, Stella Artois) to North America, analysts report.

Andhra Pradesh is one the few states in which India’s largest brewer United Breweries (UB) yields to SABMiller’s India unit, The Wall Street Journal communicated on September, 27.

UB wants to dislodge SABMiller Plc from its dominant perch in the key Andhra Pradesh market with a new Rs150 crore brewery in Medak that will start production by January.

Andhra Pradesh is one the few states in which UB, which sells Kingfisher beer, plays second fiddle to SABMiller’s India unit, which brews Haywards, Knock Out and Indus Pride. UB says it has about 33% market share in Andhra Pradesh, behind SABMiller’s more than 60%.

“With this we hope to take our market share closer to the national average,” said Shekhar Ramamurthy, deputy president, UB. The company says it has at least a 50% share of the Indian beer market as of the first quarter of this fiscal.

Vijay Mallya’s UB wants to build its share of the market in the southern state as it consumes about 18% of the annual 172 million cases of beer sold in India. Each case contains 12 bottles.

The new brewery, located in Medak district, will add to two existing facilities in Andhra Pradesh, and will be able to produce ...More Info

Mexico’s leading brewer Grupo Modelo projects a 20 percent rise in beer sales next year in Chile, El Mercurio reported on September, 29.

According to commercial director for Latin America and the Caribbean, Roberto Viejo, despite a troubled global economy, sales are doing well and the company recorded double-digit growth in Chile.

Chile is the most important market in South America for Grupo Modelo. Last year, the company shipped over one million crates of beer to Chile. As consumers continue to seek premium beers, the outlook appears positive for the future. The company plans to increase distribution quantity and coverage, and consolidate its leadership in the region, Viejo said.

Grupo Modelo’s two brands exported to Chile are Corona and Negra Modelo. Corona is the most popular imported beer in the country. Although Grupo Modelo has 13 brands, it has no immediate plans to bring other brands to Chile.

Thai Beverage PCL, the country's largest brewer and distiller, aims for 2009 revenue and net profit to be no lower than last year and expects sales to rise in 2010, Reuters cited the company’s top official on September, 30.

ThaiBev, which is number two in terms of market share, wants to boost sales to become market leader over the next two years, director and senior Vice President Ueychai Tantha-Obhas said.

"In the next two years, we aim to be number one in the Thai beer market, which means we should have market share of more than 42 percent," Ueychai said.

In 2008, the company made a net profit of 10.6 billion baht ($316 million) on revenue of 105 billion baht.

Five analysts polled by earnings tracker Thomson Reuters I/B/E/S expected 2009 revenue and net profit to rise almost 2 percent. Revenue was expected to rise 5.6 percent to 113 billion baht in 2010.

Thai Beverage, owned by liquor tycoon Charoen Sirivadhanabhakdi, makes the country's leading beer, Chang, and top-selling Mekong whisky.

This week, the company launched a marketing campaign to rebrand its Chang beer products to attract more customers, Ueychai said.

It has about 35 percent of the Thai beer market, down from about 70 percent in ...More Info

Demand for beer is expected to decline by 8% year on year to 33 million hl in 2009 in Poland, Polish Market reported on September, 28.

Between January and June 2009 beer producers reported a 12.5% year-on-year reduction in sales to 15.9 million hl. June 2009 brought the weakest results – there was an 18.3% reduction, the most substantial since 1989, in beer consumption in comparison with the analogous month of 2008.

The Association of Beer Industry Employers, “Browary Polskie” (ZPPP), explains that the decline in beer consumption was prompted by the 13.6% increase in excise duty in March 2009, the economic recession, increases in beer prices caused by the higher costs of ingredients and packaging, and the cold weather reported at the beginning of the summer of 2009. Furthermore, the Polish beer market has reached saturation point – Poles consume 95 litres of beer per capita every year.

Kompania Piwowarska, the largest brewery in Poland, reported a 4% decline in sales in the first half of 2009. Nevertheless, the company has succeeded in increasing its market share from 41.2% to 44.9%.

Grupa Zywiec, the runner-up on the Polish beer market, sold 6 million hl of beer in the first six months of ...More Info

About 1.5 mln tons of good winter malting barley are available in France, Germany and the U.K., not counting the variety Cervoise, which will hardly find its way into the industry this year, industry observers reported in a research note published at the beginning of September.

As prices for spring and winter malting barley are more or less at the same level, less winter barley will be used in 2008/09, it is expected.

However, pre-harvest malt and barley contracts do include winter barley, and so will new sales to the Mediterranean countries and other export destinations, experts point out.

Known deficit regions will be the EU Mediterranean area with an import demand of 3-400,000 tons. Especially Spain must purchase 1-200,000 tons from North of the Pyrenees this year.

Poland may need more than last year’s imports of 200,000 tons; the Balkan countries may buy some small quantities.

On the other hand Sweden, Finland and the Baltic States could turn up as small exporters as well, industry sources said.

European grain farmers will resort to selling large amounts of barley and possibly some wheat to public stores this season to benefit from a guaranteed minimum price amid a slump in grain markets, Reuters cited analysts’ opinions on September, 25.

Big harvests this summer in much of Europe have swollen already ample stocks and pushed prices to near or below the level at which the European Union buys grain offered by producers under its intervention system.

The scheme, which operates from November in most member states, allows producers to sell certain grains to EU stores for 101.31 euros a tonne, including delivery costs, to which are added carrying charges of 0.46 euros a tonne per month.

The situation is most acute in barley, which could even attract intervention offers in top EU grains producer France, where producers rarely use the safety net.

Farm office FranceAgriMer forecasts barley ending stocks will more than double in 2009/10 to 3.4 million tonnes, bloated by a second straight record crop, while feed barley prices in some French regions have slid below 100 euros since the harvest.

"Large-scale intervention is not common practice in France," said Vincent Magdelaine, head of grains at the country's association of farm cooperatives. "But for ...More Info

Statistics Canada’s official barley crop forecast reflects a smaller acreage, late planting, and poor conditions during spring and early summer, industry observers communicated at the beginning of September.

Canadian acreage has shrunk from 3.544 mln ha in 2008 to 3.038 mln ha this year, 14% will be abandoned, expected yields will be 2.9 ha vs. 3.3 tons last year, it is reported.

The country’s total barley production is expected to reach 8.948 mln tons in 2009 versus 11.781 mln tons last year.

The US barley acreage is down from 1.524 mln to 1.272 mln ha this year, industry sources summed up this month.

Yields are forecast slightly better at 3.54 vs. 3.42 tons per ha.

USDA production forecasts were reduced for North Dakota and Montana and slightly raised for Idaho:

North Dakota – 1.4 mln tons this year versus 1.877 mln last year; Montana – 0.762 mln tons versus 0.822 mln tons in 2008; Idaho – 1.142 mln tons in 2009 (1.086 mln tons last year).

Total USA barley production forecast is set at 4.501 mln tons (5.214 mln in 2008).

R. A. Speers and Scott Stokes

Abstract:
J. Inst. Brew. 115(2), 148–150, 2009 This paper statistically examines the effect of tank shape and size, fermenting volume and yeast pitching number on fermentation parameters routinely monitored in a series of industrial fermentations. With the fermenter tanks employed in this pilot study, little effect of tank shape existed between any of the parameters. The number of brews fermented or fermenting volume had a significant difference (p<0.05) on the apparent extract at 48 h, the final pH and the apparent degree of fermentation (ADF). Interestingly, the number of yeast repitchings (up to 13) did not show any effect on any of the parameters. We conclude, as have other studies, that the automatic practise of discarding the yeast crop after 10 fermentations (and the related expense of early yeast repropagation) could be questioned and is worthy of further study. Key words: beer flavour, fermentation kinetics, tank geometry. Load full article, 3 pages, 145 kb , PDF file