The world's four biggest brewers now account for over half the global market for beer, researcher Plato Logic communicated on February, 8.

Belgium-based Anheuser-Busch InBev, London-listed SABMiller, Dutch Heineken, and Denmark's Carlsberg have moved ahead of the rest of the pack led by China's Tsingtao Brewery in fifth place.

"The new Big 4 have established a clear lead, with combined market share estimated at just over 50 percent (pro forma 2009)," Plato said.

Budweiser-brewer AB InBev had beer volumes of around 350 million hectolitres in 2009, well ahead of Miller-brewer SABMiller at just under 250 million, Heineken at just over 200 million, and Carlsberg around 125 million, while Tsingtao trailed at just over 50 million hectolitres a year.

In sixth place was North American Molson-Coors Brewing Co, while Mexico's Grupo Modelo, China's Beijing Yanjing Brewery Co Ltd and Japanese brewers Kirin Holdings Co Ltd and Asahi Breweries Ltd made up the rest of the top 10.

Plato said the world beer market grew less than 0.1 percent in 2009, but expected it to pick up in 2010 to growth of about 3 percent.

"While this may appear quite optimistic, we would expect growth to resume in some emerging markets," Plato director Ian Pressnell said.

Japanese brewers Kirin and Suntory announced on February, 8 that they had terminated their merger negotiations.

Despite months of talks, Japan’s second- and third-largest brewers failed to resolve deep-rooted differences over who would own and manage the future company.

Suntory said it acknowledged discrepancy of understandings of two companies including integration ratio and considered that it would be difficult to realize a desirable new integrated company which Suntory had been seeking for.

Kirin claimed it had been negotiating on the premise that the new entity would be managed as a listed company in order to ensure appropriate management independence and transparency. However, it became apparent that Suntory held a different view on this matter, and Kirin determined that even if negotiations were to continue, they were unlikely to result in the establishment of a company that would fulfil Kirin's aim of developing as a leading global company and earn the understanding and approval of Kirin's domestic and overseas customers, employees, shareholders and other stakeholders. Kirin therefore resolved to terminate the negotiations.

The merger plan, first unveiled last July, would have created a company with annual revenue of about 3.8 trillion yen ($43 billion) rivalling the world's leading brewer Anheuser-Busch InBev N.V. ...More Info

US-Canadian Molson Coors Brewing Company reported on February, 9 a significant income growth for the fourth quarter (ended December 26, 2009), driven by the favourable resolution of tax positions.

Net income attributable to Molson Coors increased 137.0 percent to $222.1 million for the fourth quarter, up from $93.7 million a year ago. Underlying after-tax income increased 85.5 percent in the fourth quarter to $190.3 million, or $1.02 per diluted share, up from $102.6 million, or $0.55 per diluted share, a year ago.

Full-year net income attributable to Molson Coors increased 90.2 percent to $720.4 million, while 2009 underlying after-tax income increased 40.7 percent to $707.4 million, or $3.81 per diluted share.

“Underlying earnings for our company increased more than 85 percent in the 4th quarter versus a year ago, driven by a one-time reduction in tax rate. Behind the headline number, our results were affected by weak volumes across all markets, cost inflation in the U.S. and U.K. and brand investments in Canada,” said Peter Swinburn, Molson Coors president and chief executive officer.

“Overall consumer demand remains sluggish, and we see these conditions continuing to impact volume and mix in the near term. Our strategy remains consistent, however. We are focused on investing in ...More Info

MillerCoors, the US joint venture between SABMiller and Molson Coors, reported on February, 9 double-digit underlying earnings growth for its full year of operations ended December 31, 2009.

MillerCoors full-year underlying net income increased by $138.7 million or 18.4 percent, while fourth quarter underlying net income decreased 21.6 percent to $106.1 million versus prior year. Softening industry volumes and resulting cost deleverage were partly offset by pricing, synergies delivery, and reductions in marketing, general and administrative costs in the fourth quarter.

"It's tough out there, and we saw the effect of ongoing economic pressure and unemployment on beer sales, especially in the fourth quarter," said MillerCoors CEO Leo Kiely. "But we stayed focused on our strategy and invested to grow four out of our six national focus brands in 2009. Our people made it happen, delivering strong profit growth and exceeding our synergy commitments in the midst of a recession."

Key operating results for the fourth quarter are compared to the prior year quarter and include MillerCoors operations in the U.S. and Puerto Rico. Results for the full year are compared to the prior year on a pro forma basis (based on results for Miller and Coors reported under either ...More Info

Asahi Breweries Ltd reported on February 8 a 5.8% increase to its net profit in 2009.

Japan’s largest brewer said net profit for 2009 rose to ¥47.6 billion ($533 million) from ¥45 billion in 2008.

Asahi’s net sales increased from ¥1.46 trillion in 2008 to ¥1.47 trillion last year. But alcoholic drinks revenue dropped to ¥985.5 billion from ¥1.02 trillion in 2008 amid intense competition in the domestic beer market. Asahi’s alcoholic drinks business includes beer, low-malt happoshu, new genre beer, whisky, etc.

Operating income of Asahi’s alcoholic drinks unit decreased to ¥78.5 bln from ¥91.1 bln a year earlier.

Beer-type beverages category fell short of sales target, Asahi Breweries said.

The company targets net sales of ¥1.5 trillion and a net income of ¥52 bln for its fiscal 2010.

Asia Pacific Breweries announced on February, 10 it has completed the acquisition of Heineken International B.V.'s (Heineken) 65.1% interest in PT Multi Bintang Indonesia, Tbk (MBI) and 723,120 depository receipts of MBI shares (representing approximately 3.4% interest in MBI).

Besides, the Singapore-based company completed the acquisition of Heineken's 87.3% interest in Grande Brasserie de Nouvelle Caledonie S.A. (GBNC).

Mr Roland Pirmez, Chief Executive Officer, APB said, "This milestone marks a significant boost to our position as a leading brewery Group in the Asia Pacific, our bottom line and growth prospects. Not only have we expanded our regional footprint to Indonesia and New Caledonia, we are now able to participate in the two profitable beer markets via market leaders, MBI and GBNC. More importantly, both MBI and GBNC have good track records of profitable growth which will be immediately accretive to APB's earnings."

With the addition of Indonesia's iconic Bintang brand and New Caledonia's leading Number One brand, APB would have further extended one of Asia's most prized beer brand portfolios which already comprises international names such as Tiger and Heineken. The enhanced brand portfolio represents a strengthened regional competitive edge for APB.

Meanwhile, Tiger will continue to be made available in India. Discussions are ...More Info

Maize, canola and soybeans are so successful in America that the barley production is expected to decline further to a point, where even supplies for the brewing industry become a risk, according to an analysts note published on February, 1.

In Europe the trend towards maize and oilseeds and away from barley is only a threat so far, but it will show the planting figures of 2010 to some extent, industry experts said.

One day brewers and maltsters must pay better prices, if they want to save the production of malting barley. IGC estimates the needs of malting barley in the world to be 33.4 mln tons.

According to an estimate of the EU Commission the EU-27 has a surplus of 25 mln tons of barley, taking into account carry-over, production in 2009 against 55.4 mln tons of usage including 43 mln tons of feed, industry sources reported at the beginning of February.

The minimum carry-over at the change of the crop year is 7.5 mln tons, therefore the EU must still dispose of 17.5 mln tons. Export licences booked to-date are 433,000 tons, maybe it is the worst export campaign since the early days of the EU (EEC), experts said.

Licence bookings were mainly done in Germany – 328,000 tons – and France – 62,000 tons. Exports include a large share of malting barley, destined to China and Turkey.

Feed barley exports were impossible except for small lots to Morocco and Algeria, all major world markets were supplied from the Black Sea.

EU barley is being delivered to the safe haven of intervention. As of July 1 of this year there will be no intervention any more. EU farmers may have to accept lower prices for their barley, and will increasingly look for alternatives. There is, of course, hope for an economic recovery and a larger demand for agricultural products, ...More Info

As of January 25, Ukraine’s barley exports totalled 4.1 mln tonnes, BlackSeaGrain posted earlier this week.

UkrAgroConsult cuts its estimate for Ukraine’s barley export to 5.9 mln tonnes in 2009/10, because the pace of exports lags behind the expectations, it is reported.

Besides, rains in Saudi Arabia improved the conditions of pastures and this may reduce feed grain import.

Overall, experts believe the barley export from Ukraine will reach roughly 2 mln tonnes for January / June 2010.

Makoto Kanauchi, Jérôme Milet and Charles W. Bamforth

J. Inst. Brew. 115(3), 232–237, 2009 ABSTRACT
Barley kernels contain a single oxalate oxidase located in the embryo and aleurone. It is already present in substantial quantities in unmalted grain and increases in activity during germination. It displays a very broad pH optimum: the optimum was at pH 4.0, but the enzyme still displayed more than 50% of its activity at pH 7. Oxalate oxidase is highly resistant to heat. However, its low affinity for oxygen suggests that it probably does not play a major role in the consumption of oxygen in mashing. The decrease in oxalic acid levels late in germination may be a result of oxalate oxidase action. Oxalic acid was not detected in raw barley. Key words: barley, malting, mashing, oxalate oxidase, oxalic acid.
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