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E-Malt.com Newsletter 48a
November 23 - November 25, 2009
Open!
Click here to get full size Newsletter


Quote of the week

"When the bee comes to your house, let her have beer; you may want to visit the bee's house some day."
Congolese Proverb
Currency Rates
Base Currency: Euro, EUR
on 25-November-2009

1 EUR = 1.495 USD
1 EUR = 0.9023 GBP
1 EUR = 1.584 CAD
1 EUR = 1.6257 AUD
1 EUR = 132.636 JPY
1 EUR = 2.5884 BRL
1 EUR = 43.1038 RUB
1 EUR = 10.2243 CNY
Base Currency: US Dollar
on 25-November-2009

1 USD = 0.6689 EUR
1 USD = 0.6036 GBP
1 USD = 1.0595 CAD
1 USD = 1.0874 AUD
1 USD = 88.7154 JPY
1 USD = 1.7313 BRL
1 USD = 28.8312 RUB
1 USD = 6.8388 CNY
Currency Rates Chart

Equities of the Largest Breweries

Equities of the Largest Breweries

Average Market Prices Change trend

November 25, 2009

Type Crop 2009 Crop 2010
2rs Barley EUR98.0-102.0 EUR120.0-124.0
6rw Barley EUR94.0-98.0 1.03% EUR112.0-116.0 0.88%
2rs Malt EUR283.0-287.0 EUR309.0-313.0
6rw Malt EUR277.0-281.0 0.36% EUR298.5-302.5 0.50%
Feed Barley EUR94.0-98.0 1.04% nq nq

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 Czech Republic & Canada: Brewer Budejovicky Budvar increases exports to Canada ...Click here
Malaysia: Beer consumption expected to grow despite cultural challenges ...Click here
Australia: SABMiller’s cost-cutting program not to affect its Australian joint venture ...Click here
Nigeria: Guinness Nigeria Q1 pre-tax profit down 34% ...Click here
United States: Boston Beer CEO to sell shares in the company ...Click here
Ukraine: Malt output to decline dragging down barley farmers’ revenues ...Click here
Russia: Arbitrary court rules Russian Malt must pay a RUB90 mln fine ...Click here


More News


Slovakia: SABMiller’s subsidiary to close a brewery ...More Info
World: Analysts upgrade forecasts for SABMiller’s EPS in 2010 and 2011 ...More Info
United Kingdom: S&N to give free-of-tie leases on some pubs ...More Info
Nigeria: SABMiller recognizes the importance of Nigeria’s beer market ...More Info
United Kingdom: Alcohol prices may rise by 10% - AB InBev UK CEO ...More Info
United States & Canada: Molson Coors names new head for its international division ...More Info
United Kingdom: Carlsberg to launch a female friendly beer-like drink nationwide ...More Info
Estonia: Brewer A. Le Coq serves a special Christmas beer ...More Info
Finland: The Federation of the Brewing and Soft Drinks Industry appoints a new Chairman ...More Info
Go to our news database with more than 16180 articles.
Today with the possibility to be translated in 7 different languages!
DE FR SP IT PT RU CN

Brewery News

The Czech Republic & Canada: Brewer Budejovicky Budvar increases exports to Canada

Czech state-owned brewer Budejovicky Budvar, or Budvar, has stepped up exports of its Czechvar lager to Canada while it continues to wage a legal battle over Budweiser and Bud trademarks with Anheuser-Busch InBev, Dow Jones reported on November, 23.

In January through September Budvar boosted its beer shipments to Canada 21% on the year to 7,000 hectolitres, reaching the same level of exports there recorded in all 2008, the Czech company said.

Budvar - based in the southern Czech city of Ceske Budejovice, called Budweis in German - has been engaged in a century-long intellectual property struggle over the "Budweiser" and "Bud" trademarks and appellations of origin with US brewer Anheuser-Busch Inc., now part of AB InBev.

Legal battles between Budvar between Anheuser-Busch have intensified since the fall of the Iron Curtain.

In September, Budvar faced a setback when Europe's highest court issued a ruling that could end Budvar's attempts to use its Bud brand in Austria. The ruling could lead to reopening challenges by AB InBev against Budweiser and Bud trademarks currently held by Budvar in other countries, legal experts have said.

In Canada and US Budvar sells its beer under the Czechvar brand.


Malaysia: Beer consumption expected to grow despite cultural challenges

Malaysia’s leading brewer Guinness Anchor targets its activities squarely towards the Malaysian Chinese and Malaysian Indian community bases, Charles Ireland, the brewer’s managing director, was quoted as saying by The New York Times on November, 24.

Guinness Anchor, which has the largest market share of the three brewers in Malaysia, recently celebrated Guinness’s 250th anniversary with a concert near Kuala Lumpur featuring the Black Eyed Peas. The company had to create a separate area where alcohol could be served and agreed not to use the word “Guinness” at the concert or in advertising promoting the event.

Initially, Muslims were not allowed to attend; however, the authorities later changed their minds. The concert did not sell out, but about 16,000 people went through the gates. It is not known how many were Muslim.

Despite such cultural challenges — and the fact that Malaysia has one of the world’s highest excise taxes on alcohol — beer consumption here has remained relatively steady in the last decade. Analysts and local manufacturers are cautiously optimistic that sales may gradually increase as the economy improves, disposable incomes rise and the population of 28 million people grows.

Euromonitor International, an independent market research group, has forecast that beer consumption ...More Info


Australia: SABMiller’s cost-cutting program not to affect its Australian joint venture

A cost-cutting drive announced by the world’s second-largest brewer SABMiller plc is unlikely to affect its Australian joint venture with Coca-Cola Amatil, The Australian cited analysts’ opinion on November, 23.

SABMiller has unveiled a four-year restructuring program aimed at generating $US300 million in annual cost savings from 2014, following a 6 per cent fall in sales revenue over the six months to the end of September.

Australian analysts said Pacific Beverages, SAB's Australian alcohol distribution joint venture with CCA, was unlikely to be targeted by the efficiency drive because it did not represent a substantial cost to the company.

Pacific Beverages, which distributes SABMiller's Peroni, Miller and Pilsner Urquell beer brands, is building a $120 mln brewery on New South Wales's central coast to produce its own Bluetongue brand.


Nigeria: Guinness Nigeria Q1 pre-tax profit down 34%

Diageo’s subsidiary Guinness Nigeria Plc reported a 34% decline in pre-tax profit for the three months to Sept 30, Reuters communicated on November, 23.

The company’s pre-tax profit amounted to 2.56 billion naira ($17 million) in the quarter.

Turnover rose 22 percent to 20.62 billion naira, the brewer said in a filing to the Nigerian Stock Exchange.


United States: Boston Beer CEO to sell shares in the company

US craft brewer Boston Beer has disclosed that its president and CEO has entered into a stock trading plan that would allow him to sell company shares, The Street communicated on November, 24.

The pre-arranged plan will allow Martin Roper, also a Boston Beer director, to sell 56,000 shares of common stock in the Boston Beer.

Roper would be trading the shares to raise cash and diversify investments. The idea behind such plans is to allow individuals to accumulate prudent and gradual asset diversification over time.

The Boston Beer shares will be obtained under the company's Employee Equity Incentive Plan and sold according to undisclosed trading prices and volumes that would be on file with the SEC.


Malt News

Ukraine: Malt output to decline dragging down barley farmers’ revenues

Ukraine’s farmers may suffer from a loss of up to UAH115 mln as a result of a decreasing demand for malting barley, Interfax reported on November, 23.

The nation’s beer production is expected to shrink by 11% in 2009.

“At the beginning of this year, nobody could expect such a drastic market decline, as all the forecasts were made taking into account an excise duty of UAH0.31 per litre of beer. However, the excise was almost doubled in the middle of the year, so it turned out the forecast for barley use by maltsters was significantly overrated,” Galina Korenkova, general director of association of Ukrainian brewers Ukrpivo, said.

The unclaimed stock amounts to almost 300 thousand tonnes of barley and now farmers are selling their high-quality malting barley for feed use, she added.

If the current decline in the beer market persists in 2010, the nation’s barley acreage will be reduced, analysts said.

If the excise duty on beer is doubled again or the planned restrictions for the brewing industry approved by the parliament, farmers’ losses will be even more important.

According to Ukrpivo data, Ukrainian malt production increased from 75.8 thousand tonnes in 1998 to 541 thousand tonnes in 2008. In 2009, the nation’s malt ...More Info


Russia: Arbitrary court rules Russian Malt must pay a RUB90 mln fine

Moscow’s Arbitrary court has confirmed the legality of a decree by Russian Federal Antimonopoly Service, according to which Russia’s leading maltster Russian Malt (Russkiy Solod) was fined RUB90 mln, Kommersant reported on November, 25.

The malting company was penalized for abusing its dominant position on the market by establishing a monopoly price on its malt in 2008.

The legal case was brought on the basis of an application on the part of Baltika Breweries.

Scientific Digest

A Preference Study for No Alcohol Beer in Italy Using Quantitative Concept Analysis

S. Porretta and G. Donadini

Abstract:
J. Inst. Brew. 114(4), 315–321, 2008 The aim of this paper is to understand the consumer’s attitude towards alcohol free beers in Italy by using a quantitative concept analysis. The method uses conjoint analysis with consumers of Italian beer, living in different geographical areas. Results show that packaging (RI = 56.24%) is the main attribute considered, followed by price, flavour, claims and colour. As far as part-worths are concerned, glass and twist-off caps are the utilities that most increase the preference. They are followed by malty and fruity characters, a price of less than 0.80 Euros, a remarkable body and intended for young adults. In contrast, plastics, a price of over 1.25 Euros, organic raw materials and imports showed the greatest negative impact on preference. These findings can be used as a base for new product development and for media communication purposes.
Key words: Conjoint analysis, consumer preference, no alcohol beer, quantitative concept analysis.
Load full article, 7 pages, 3.79 MB , PDF file

Barley Prices
EURO = USD 1.495 November 25, 2009  
 Crop year   2009   2010 
 Parity   FOB Creil   FOB Creil 
 Position   July 2009   July 2010 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  102.00  152.50  124.00  185.50 
2RS  Prestige  101.00  151.00  123.00  184.00 
2RS  Cellar  100.00  149.50  122.00  182.50 
2RS  Sebastien  99.00  148.50  121.00  181.00 
2RS  Tipple  99.00  148.50  121.00  181.00 
2RS  Henley  99.00  148.50  121.00  181.00 
6RW  Esterel   96.00  143.50  114.00  170.50 

French Feed Barley Prices. Nominal prices
EURO = USD 1.495 November 25,2009
Crop year 2009
Parity FOB Creil
Position July 2009
Type EURO USD
Feed Barley 95.00 142.03


Theoretical Malt Prices

  EURO = USD 1.495 November 25, 2009 
Crop year  2009 
Parity  FOB Antwerp 
Position  Nov 2009 - Sept 2010 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  287.50  429.50  318.50  476.00  310.50  464.50  325.00  486.00 
2RS  Prestige  286.00  427.50  317.50  474.00  309.50  462.50  323.50  484.00 
2RS  Cellar  285.00  425.50  316.00  472.50  308.50  461.00  322.50  482.00 
2RS  Sebastien  283.50  424.00  314.50  470.50  307.00  459.00  321.50  480.50 
2RS  Tipple  283.50  424.00  314.50  470.50  307.00  459.00  321.50  480.50 
2RS  Henley  283.50  424.00  314.50  470.50  307.00  459.00  321.50  480.50 
2RS   Average price  285.00  425.50  316.00  472.50  308.50  461.00  322.50  482.00 
6RW  Esterel   279.00  418.50  311.00  465.00  303.50  453.50  317.50  474.50 
Asia Malt 70/30  283.50  423.50  314.50  470.00  307.00  458.50  321.00  480.00 
**  Asia Malt 50/50  282.50  422.00  313.50  468.50  306.00  457.00  320.00  478.50 


EURO = USD 1.495 November 25, 2009, 
Crop year  2010 
Parity  FOB Antwerp 
Position  Oct 2010 - Sept 2011 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  313.50  468.50  344.50  515.50  337.00  504.00  351.50  525.00 
2RS  Prestige  312.50  467.00  343.50  513.50  336.00  502.00  350.00  523.50 
2RS  Cellar  311.00  465.00  342.50  511.50  334.50  500.50  349.00  521.50 
2RS  Sebastien  310.00  463.50  341.00  510.00  333.50  498.50  347.50  519.50 
2RS  Tipple  310.00  463.50  341.00  510.00  333.50  498.50  347.50  519.50 
2RS  Henley  310.00  463.50  341.00  510.00  333.50  498.50  347.50  519.50 
2RS   Average price  311.00  465.00  342.50  511.50  334.50  500.50  349.00  521.50 
6RW  Esterel   300.50  450.50  332.50  497.00  325.00  485.50  339.00  506.50 
Asia Malt 70/30  308.00  460.50  339.50  507.50  331.50  495.50  346.00  517.00 
**  Asia Malt 50/50  306.50  457.50  337.50  504.50  329.50  493.00  344.00  514.00 

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

Beer Sales In France Per Distribution Channels
in thousand hl
  1991 1995 2000 2007 2008 % 2008/2007
On-trade sales* 8722 7776 6634 5200 4600 -13.0
Off-trade sales** 14158 14914 14786 14400 14020 -2.7
Total 22880 22690 21420 19600 18620 -5.3
*Sales through bars, restaurants, cafes etc; **Sales through retail outlets
Source: Union of French Brewers
Graph of the Week


In thousand metric tons
Sourse: USDA

These Days in Business History
November 23
1863 Patent granted for a process of making color photographs
1936 1st issue of Life, picture magazine created by Henry R Luce
1992 10,000,000 cellular telephone sold

November 24
1914 Louis de Raet, Belgian economist/Flemish People Party, dies
1951 British auto manufacturers Austin/Moris Motors merge

November 25
1867 Alfred Nobel patents dynamite
1884 John B Meyenberg of St. Louis patents evaporated milk
Agenda