World’s No. 1 brewer, Belgium-based AB InBev, is expected to report on November, 12 a decline in consumption of its beers such as Budweiser, Stella Artois and Beck's, weighing on profits in the first half, Reuters communicated on November, 10.

The world's largest brewer is expected to have suffered a 3 percent decline in beer volumes, according to a Reuters survey of 16 banks and brokerages, partly due to sluggish European markets and partly because U.S. volumes grew strongly a year ago due to the launch of Bud Light Lime.

World number two SABMiller reported a 1 percent decline in volumes for its half year to end September. Heineken's volumes were down 4.7 percent on a like-for-like basis in the third quarter, while Carlsberg's were off 5 percent.

For AB InBev, higher prices should partly compensate for slowing sales, notably in the United States where rival MillerCoors said pricing was strong, and the company's tight cost control should lead to an improvement in the core profit margin.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are forecast at $3.52 billion, down 1 percent from the figure reported a year ago, but up some 7 percent on a like-for-like basis.

AB InBev said in August it ...More Info

Efes Breweries International N.V. (“EBI” or “the Company”) announced on November, 10 its consolidated unaudited financial results in accordance with IFRS for the nine months period ended 30 September 2009.

In 9M2009 EBI’s consolidated sales volume was 10.8 mln hl, down by 3.7% compared to the same period of the previous year. Organic sales volume (By excluding i) 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, ii) the sales volume of Efes Serbia, which is excluded from EBI’s financials after the end of 1H2008) declined by 2.6% in the period. Although consolidated sales volumes in the third quarter continued to be under pressure by declining 2.3% compared to the same quarter of previous year, volume performance was better vs. the first half of the year, mainly due to better performance in Russia.

In Russia, 9M2009 sales volume declined by 4.3% to 8.4 mln hl compared to 9M2008. The downward trend in the Russian beer market, resulting from the deteriorating consumer demand as a result of the global financial crisis, continued in the third quarter of 2009, albeit at a slightly slower rate. EBI has ...More Info

Russia's lower house of parliament accepted in the first reading a bill to triple duties on beer, Reuters reported on November, 6.

The bill was approved by a majority of 315 votes to include amendments to the tax code to increase the duty on beer to 9 roubles from the current 3 roubles.

The bill implies the duties will rise to 10 roubles from Jan. 1 2011 and to 12 roubles from Jan. 1 2012 for the beer which averaged from 0.5 percent to 8.6 percent alcohol per one litre and makes more than 90 percent of all beer sold in Russia.

Government officials have said the bill will bring in an extra 65 billion roubles ($2.24 billion) of budget revenues in 2010, specifying this would go into the regional and federal budgets, which is seen running a deficit of 6.8 percent of GDP next year, or around 3 trillion roubles.

It was not immediately clear when the Duma will hear the bill in the key second reading, when most draft bills can be amended.

Danish brewer Carlsberg has said the firm could shut down some factories in Russia while new higher duties could cost the country some 100,000 jobs.

The shares of Carlsberg, ...More Info

Coopers Brewery said on November, 6 that it has withstood the impact of the Global Financial Crisis and high malt prices to continue its growth in sales and profits during the 2008-09 financial year.

The company’s turnover for 2008-09 increased 5% to A$169 million, compared with A$161 million in 2007-08, while after tax profit rose to A$20.3 million, compared with A$20.2 million in the previous year.

Total sales volume for beer rose by 1%, led by a 6.3% increase in sales outside Coopers’ home markets of South Australia and the Northern Territory. Coopers now accounts for 3.4% of the total Australian beer market, up from 3.3% at the end of the 2007-08 financial year.

Coopers Managing Director, Dr Tim Cooper, said profits for the year were affected by the high malt prices that prevailed throughout the year, while the financial slowdown had reduced the growth in sales enjoyed in previous years.

“While the financial slowdown did impact on beer sales, this was partially offset by a rise of 3.9% in home brew sales,” he said.

“Part of this improvement was attributed to the tighter economic conditions resulting from the Global Financial Crisis, as sales of home brew concentrates have historically been seen to rise in ...More Info

Heineken Romania reported 12% increase in turnover for the first half of 2009 compared to same period last year, reaching EUR 509 million (gross) and EUR 436 million (net), FoodBizDaily communicated on November, 9.

"Our investments are focused on our key brands and our strategy to focus on the assets of the company. Moreover, since the beginning of the year, we have improved our ability to generate cash flow, "said Jan Derck van Karnebeek, General Manager Heineken Romania.

In the first half of 2009, the Romanian beer market decreased by approximately 11% in terms of volume according to the estimates presented by Heineken Romania in a press release. The decrease in the Romanian beer market is the result of the local and international economic situation, which led to a lowering of the Romanian purchasing power and of their confidence.

In the first half of the year, the Super Premium segment had a market share of 9.5%, the Premium segment – 12,2%, the Mainstream segment – 36,5%, the Cheap segment– 39% and the alcohol free segment – 2,8%.

For Heineken it is important to keep on investing in its brands on the long run. The company’s target for the end of 2009 and the ...More Info

UK maltster Simpsons says it is on track to exceed last year's record sales of £120 mln but expects economic crisis will slow growth in 2010, Nebusiness.co.uk communicated on November, 9.

Falling pub beer sales and brewery closures are expected to deter progress next year but the Berwick firm says it is anticipating growth after that and well into the next decade.

The malting company was founded by James Parker Simpson in 1862 and is today the second largest maltster in the UK supplying over a quarter of the brewing and distilling industry.

In 2008 it recorded sales of around £120 mln which was well up on 2007’s £80 mln with much of this being accounted for by the spike in barley prices.

Tim McCreath, group managing director, said: “We are trading well and having just completed a major investment programme the business is in good shape. We have in place some long-term strategic contracts with some of the main brewers and distillers and as they grow we will grow with them.”

Historically the brewing, distilling and malting industries are the last into recession and the last out, McCreath said.

“With brewery closures looming in Leeds, with Tetley and the Berkshire Brewery in Reading, a ...More Info

For 2009-10, Canadian barley production is expected to decrease significantly due to the decline in seeded area and lower yields, Agriculture and Agri-Food Canada communicated on November, 6.

Barley usage is expected to fall due to lower feed demand, although demand for malt and food barley is expected to remain stable. Exports of barley will be constrained by increased world supplies and stable world demand. Consequently, prices for feed and malt barley are expected to decline sharply from year ago levels. Over the medium term, barley production is projected to decline moderately for several years before rebounding slowly.

World barley production is expected by the USDA to decline by about 4 per cent, to 147 million tonnes (Mt) due to lower production in the EU-27, Russia and Canada which was partly offset by minor increases in Australia, Morocco, Ukraine, Turkey and Iran. However, supplies of barley are expected to decline only marginally due to the sharp rise in carry-in stocks.

Total consumption of barley is expected to rise by 3 per cent due to higher feed use in the EU-27, India, Morocco and Ukraine. World trade in barley is forecast to fall by 7 per cent due to lower exports from Russia and ...More Info

The oversupply in the US malting barley market has led the maltsters to roll over some of the 2009 contracts to later delivery dates with a storage payment included for those growers holding 2009 contracts, Farm & Ranch Guide communicated on November, 6.

In addition, some 2010 contracts are being offered to those who are willing to take the deferred delivery 2009 contracts.

“There's a large abundance of barley out there. We're pushing the whole malting barley contracts further out there into the next new crop,” Kelly Kotowicz of the Alvarado Elevator in Alvarado, Minn., said.

He said the 2010 contracts being offered are for delivery during the later months.

“We aren't offering any contracts for delivery off the field or during September or October,” he said. “Instead we will be pushing the delivery out into December or even as late as March 2011. The contracts are also being limited pretty much to existing growers.”

Kotowicz notes a few factors that have contributed to the large backlog of barley, including a huge drop off in export sales, a world-wide reduction in beer consumption, and the reluctance of the brewers and maltsters to hold on to a huge supply of barley. This came at a time ...More Info

The supply of British-grown malting barley is forecast to lurch further into surplus next year, with the surfeit expected to sail past the 1 million-tonne mark, Brewers’ Guardian cited on November, 6 experts preparing for the launch of a new barley variety.

Production of malting barley in 2008/09 reached 2.43 million tonnes, outstripping demand by 660,000 tonnes. For 2009/10 production is forecast to reach 2.78 million tonnes while demand is expected to be just 1.7 million tonnes.

“With demand predicted to be similar to that for 2009, a good quality crop in 2010 could mean another surplus, putting further pressure on malting barley prices,” said Bob King, commercial director at the UK’s Crisp Malting.

“However a poor quality crop in the UK or other parts of Europe could bring supply and demand into balance, resulting in a tight market.”

Despite the toll the recession has taken on global demand for brewing and distilling malt, King maintained that the sector continues to offer growers situated close to maltings or ports good prospects.

The current imbalance between supply and demand has been exacerbated by the growth in acreage of high yielding barley varieties, increased production, a crop that reached a ...More Info

Declan L. Goode, Catherine Halbert and Elke K. Arendt

Abstract:
The effects on wort quality when mashing with unmalted sorghum (0-100%) and malted barley (100-0%) in combination with industrial enzymes were evaluated. A mashing program with temperature stands at 50°C, 95°C and 60°C was used. Different combinations of commercial enzymes were evaluated. A heat stable α-amylase was found to be essential for efficient saccharification. The inclusion of a fungal α-amylase in mashes with a high sorghum content improved filtration rates to that of 100% malted barley mashes. Addition of a bacterial protease increased the amount of nitrogen solubilisation and peptide degradation. An increase of the relative proportion of sorghum in the grist resulted in decreases in wort filtration, colour, viscosity, attenuation limit, free amino nitrogen, high molecular weight nitrogen, and a corresponding increase in pH (p < 0.01). Overall the addition of malted barley in small proportions to unmalted sorghum mashes together with commercial enzymes was found to improve the potential for brewing a high quality lager beer from unmalted sorghum.
Key words: Adjuncts, enzymes, heat stable α-amylase, malted barley, sorghum, unmalted sorghum.
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