E-Malt.com Flash 51a. December 13

Germany: Original Oettinger is to become the leading beer brand in Germany this year. The Bayern based brewery Oettinger is forecasted to sell in the domestic market 6.4 million hl of Original Oettinger...more info

Russia: Baltic Beverages Holding AB (“BBH”), the 50:50 owned joint-venture between Scottish & Newcastle plc and Carlsberg Breweries A/S, informed the press on December 14 that Mr Taimuraz Bolloev...more info

Canada: Brick Brewing Co. Limited released on December 14 record financial results for the third quarter ended October 31, 2004. Net sales for the third quarter of 2004 increased to C$6.9 million compared to $4.0 million for the same period last year, an increase of 72%. Net beer revenues increased 153% to $6.8 million primarily as a result of growth in the Company's value and mainstream beer brands, coupled with the launch of the PC brands in Ontario and Quebec earlier in the year. Net income was a record $684 thousand compared to a loss of C$169 thousand in the third quarter last year, an improvement of C$853 thousand. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 565% (C$1.2 million) to C$1.4 million in the third quarter, compared to $.2 million for the same quarter last year. "Our strong financial performance during this period is extremely gratifying considering that domestic beer volumes in general have been poor," said Jim Brickman, Executive Chairman and Founder. "We are in an excellent position to capitalize on the growing popularity of our value brand portfolio at one end while promoting the growth of our premium brands at the other," he added. For the first nine months Company’s Net Revenue increased 41% to $17.4 million over the same period last year as the Company's beer volumes increased 265%. Net income was up 512% to $1.7 million, or $0.10 per share on a diluted basis, compared to $0.3 million, or $0.02 per share in the same period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $3.1 million compared to $1.3 million in the first nine months of last year, an increase of 138%. During the quarter volumes from co-packing were down by 87% versus the same period last year. The co-pack business was down primarily due to the erosion of volumes experienced by these non-owned brands. This was more than offset by sales gains and superior margins from the Company's value beer strategy. In August the Company announced that it had reached an agreement to obtain new term financing from Roynat Capital. This financing closed subsequent to the end of the quarter and provided the Company with financing to repay its existing term lender with supplemental available financing to further reduce costs and improve efficiencies. On November 4, 2004 the Company successfully raised approximately C$5.4 million by issuing common shares in a private placement. The funds will be used to invest in Brick's manufacturing infrastructure, sales and marketing to further grow the business and reduce manufacturing costs...more info

World: In its annual report on "Global Brewing" Deutsche Bank is listing all mergers and acquisitions in the 12 months period until September, 2004. Total capital involved was 32 Billion Dollars, as much in one year as in the four preceding years together. The outstanding event was the merger of Interbrew and Ambev at a price of 19.7 Billion $, followed by the merger of Coors and Molson at 4 Billion $, still to be confirmed by shareholders, and the repurchase of Carlsberg's shares from Orkla at 3.25 Billion $. Femsa repurchased Interbrew's shareholdings in its company. Anheuser Busch, Bitburger, Carlsberg, CREB (China Resources/SAB), Heineken, Inbev, S&N and Tsingtao spent a total of 4 Billion $ to strengthen their positions in the Chinese, German and Russian industries. Deutsche Bank believes that the consolidation of the industry worldwide will not only continue, but gather momentum.

Thailand, Bangkok: Thai Beverage PCL, Thailand’s largest alcoholic beverage company, marketing leading beer and spirits brands such as Chang, Mekhong and Sang Som, is likely to be listed on the Stock Exchange of Thailand by April 2004...more info

Bulgaria: Bulgaria’s beer sales in November were 27.3% down on the month but the 11-month sales rose by 15% on the year...more info

Malt News

EU malt exports in 2003 amounted 2.4 million tonnes. Licence bookings in July-June were 2.432 million tonnes, which included 45,000 tonnes booked in the new member countries...more info

Russia: Following an insect (Thrips) infestation of a flower import from Holland which went undetected at the origin...more info

Barley News

Australia: Harvest is done 70-80 % in the West, South and NSW, but only half in Victoria. ABARE lowered its barley crop forecast from 7.29 to 6.223 million tonnes. Other forecasts are 6.86 million tonnes by AWF, but 5.58 million tonnes by an industry source. Australia experienced dry conditions, frost and heat during the vegetation season, mostly in the West, South and Victoria. The usually drier states New South Wales and Queensland did better this year and harvested crops similar to last year’s. The unfavourable weather affected the quality adversely, mainly the grain size, viz. 20 % screenings in malting barley. Protein is alright, 10-11 %. ABARE estimates a selection of malting barley of 2.2 million tonnes vs. 2.9 million tonnes last year, other sources expect max. 1.4 million tonnes, of which no more than 6-700,000 tons can be exported. It would leave a feed barley surplus of 1.8-1.9 million tonnes.

Australia: Western Australian barley growers should persist with the new malting varieties Hamelin and Baudin despite higher screenings levels this season from dry spring conditions, SeedQuest commented on December 13. Department of Agriculture senior research scientist Blakely Paynter said many crops had been subjected to a dry August-September that contributed to higher screenings in all barley varieties. Mr Paynter said as a result, the level of malting barley being received as malting was lower this year in most regions of the State. The domestic market has received very promising results for these varieties and will be producing commercial batches this year. “The demand by markets for Stirling as a malting variety will change once export customers have had more experience with Hamelin and Baudin. Demand for Stirling however for the Japanese Shochu market is expected to remain sound for the next couple of years,” he said. “For this reason, growers would benefit from keeping seed of the new varieties to gain confidence in growing them across a range of seasons. “Our research shows that these new malting varieties have a role in Western Australia's farming systems and, over time, Hamelin is tipped to replace Stirling in the medium and low rainfall areas. Baudin will compliment Gairdner in higher rainfall areas and be sown in place of Gairdner in some of the medium rainfall areas due to its plumper grain shape.” Mr Paynter said screening levels in Hamelin and Baudin were expected to be higher than Stirling, but growers also needed to consider other aspects such as yield, market advantages, agronomic traits and disease susceptibility when selecting a variety. “In terms of grain plumpness (or screening levels), long term results from Department research trials show Hamelin is equivalent to Schooner barley,” he said. “We expect the screenings levels in Hamelin to be 3-5 per cent higher through a 2.5mm sieve than Stirling. Baudin’s screening levels are expected to be up to 6 per cent lower through a 2.5mm sieve than Gairdner, but between 2 to 2.5 times higher than Stirling.” Mr Paynter said that the outlook for malting barley was very positive and that Western Australian grain growers would benefit in the longer term from the success of both Hamelin and Baudin.

Theoretical malt prices.

* - 70/30 = 70% Average two Rows Spring and 30% Six Rows Winter
** - 50/50 = 50% Average two Rows Spring and 50% Six Rows Winter

Theoretical malt prices for crop 2005 are available on site www.e-malt.com/MarketPrices

Malting barley prices. French barley prices.

Nominal prices.

nq - Not quoted
Prices for Danish and UK malting barley are available on site www.e-malt.com/MarketPrices

Table of the week

EU Malting Barley Supply and Demand Estimate 2004/2005

Graph of the week
Italy Beer Market

Agenda

November 2004:
World Brewing Academy Applied Brewing Techniques. Munich, Germany;
World Brewing Academy Concise Course in Brewing Technology. Chicago, Illinois, United States;
INTERNATIONAL EXH FOR FOOD & DRINK INDUSTRY / WORLD FOOD UKRAINE 2004;
INT'L EXH OF WINES, ALCOHOLIC & NON ALCOHOLIC DRINKS & PROTECTION EQUIPMENT / EXPO DRINK 2004. Romania;
TALLINN FOODFEST 2004;
Belgian Beer Fest, Boston MA;
Teach a Friend to Brew Day;
FOOD PROCESSING MACHINERY EXPO 2004;
FISPAL RECIFE 2004 / INTERNATIONAL FOOD FAIR. Brazil.;
BRAU Beviale 2004. Nürnberg, Germany.;
Brewers' Association of America Conference;
Fall Fest-Of-Ale. Janesville, Wisconsin, United States;
Accrington Beer Festival. UK;
FOODAPEST 2004. 7th International Food, Drink and Food Processing Trade Fair;
INTERNATIONAL EXH FOR FOOD INGREDIENTS, ADDITIVES & FLAVOURINGS / INGREDIENTS RUSSIA 2004;
BELPRODUKT International Exhibition for Food and Beverages. Minsk, Belarus ;

December 2004:
FOODEX Food, Beverages and Food Technologies Fair. Ankara, Turkey;
Eten & Genieten Food, Beverages and Kitchen Supplies Exhibition. Amsterdam, Netherlands;
Americas Food & beverage Show and Conference;
Holiday Ale Festival;
Sint Niklaas Visits Brewery Ommegang;
IWEX 2004;
WORLD OF FOOD INDIA 2004;
KerstBierFestival 10th edition! Belgium;
VIETFOOD & DRINK 2004 / 3RD INTERNATIONAL EXH ON FOOD AND DRINK;

January 2005:
Big Beers, Belgians & Barleywines Festival. Vail CO;
35th Barley Improvement Conference. The American Malting Barley Association;
VIETFOOD (HANOI) 2005;
Atlanta Cask Ale Tasting;

More events are available on site e-malt.com