E-Malt.com Flash 19b. May 12

Singapore: Asia Pacific Breweries’ net profit grows 12% for H1 2005

Asia Pacific Breweries Limited (APB) announced on May 13 it continues to brew double-digit growth for the first half of the financial year...more info

Canada: Molson Coors has completed a preliminary assessment of its Brazilian operations

Molson Coors Brewing Co., the world's No. 5 beer maker, has completed a preliminary assessment of its troubled Brazilian operations. A decision on what to do could be coming soon, Company’s chief executive said on May 11 at the first annual shareholders meeting since the two brewers merged in February.

"In recent months, the team in Brazil has made significant progress rationalizing the cost base of the business, but clearly much more work is needed. We've had due diligence teams working in Brazil the past several weeks, and we'll be presenting our initial assessment to our board of directors tomorrow,” Leo Kiely told the meeting held at Molson's historic brewing plant in Montreal. "Making the right strategic choice in Brazil is critically important," Kiely said.

The CEO refused to speculate on what the company may do with the Brazil brewery, but said the company has to consider how much it would cost to turn it around. The distribution system also has to be examined and the company has to determine how much more it could cut costs, he said.

Molson acquired the Kaiser brand in Brazil in 2002 and the Bavaria brand in that country previously. Together they have 10 per cent of the large Brazilian beer market but sales and market share are on the decline due to distribution and marketing problems.

Poland: Heineken Polish arm, Zywiec, posted 25% net profit drop in Q1 2005

Heineken group's Zywiec, the second largest beer maker of Poland, announced on March 13 its consolidated net profit decreased by about 25%...more info

Thailand: Thai Beverage expects to see its listing plans move forward

Thai Beverage, the manufacture of Chang Beer, expects to see its listing plans move forward in the second half of the year, the sources from the Stock Exchange of Thailand have recently communicated. The listing, potentially the largest by a private company in Thai market history, has been delayed for months after strong protests by local religious and social activist groups.

"The next meeting by the SET board will bring a decision on the listing," a SET official said. The exchange board typically meets in the third week of each month, according to Bangkok.

Thai Beverage, controlled by billionaire Charoen Sirivadhanabhakdi, wants to list on the SET to help raise funds for future business expansion. But opponents argue that listing would be morally questionable and akin to using public funds to finance the company's business expansion, ultimately supporting greater alcohol consumption within the country.

Most of the SET directors however are believed to be in favour of the listing, given the company's huge size and the general trend worldwide to take a liberal view on the listing of companies on local stock markets. ...more info

UK: Debates brewing over Wolverhampton & Dudley Breweries’s takeover bid for Jennings

Jennings shareholders have until May 19 to decide whether to accept Wolverhampton & Dudley Breweries’s £45.8m takeover bid and decide the fate of the traditional brewer.

The Wolverhampton & Dudley Brewery has offered shareholders 430p a share, and promised that beer will continue to be brewed in the Lakeland town as it has for 180 years. Alistair Darby, managing director of W&DB Brands, said the Jennings brewery was not in danger. “The Jennings brands and brewery will be just as protected under our stewardship,” he said.

Wolverhampton & Dudley Breweries (W&DB) has defended its record on cask ale as the deal to buy Jennings draws closer, according to The Publican.

But Campaign for Real Ale (Camra) members in West Cumbria are sceptical and organised on May 13 a press conference at the Bitter End pub in Cockermouth to make their views crystal clear. Guest speaker Mr Cunningham urged the 2,000-plus shareholders, whose decisions will decide the future of Jennings, to think long and hard.

He said: “I’m not saying that W&D are lying when they say that they will not close the brewery at Cockermouth. But people and circumstances change – that is the nature of the market place. If this take-over takes place and in 10 years time there is an over-capacity in beer, I don’t imagine it will be Marston’s brewery that will face the axe, it will be that one in remote Cumbria. He said: “The name Jennings is synonymous with Cockermouth. It is important that the brewery remains open for tourism reasons just as much as for employment reasons.

Russia: Beer production in Russia slightly decreased in Q1 2005

In the first quarter of 2005 Russian brewers produced about 17.16 million hl of beer compared to 17.26 million hl produced in Q1 2004...more info

Malt News

EU: Analysts about malting industry expansion

In retrospect the malting industry expansion inside the EU was a great error: Austria 25,000 metric tonnes (mt), Belgium 60,000 mt...more info

Barley News

Australia & Japan: Australia is growing malting barley variety Lofty Nijo for Japan supply

ABB Grain Ltd announced on May 12 that growers are again being sought to participate in growing the malting barley variety Lofty Nijo...more info

World: Global barley trade for 2005/2006

Global barley trade is projected to increase slightly, with stronger demand from Turkey and Morocco caused by smaller crop prospects. Both Canada and the EU-25 are expected to increase exports by 500,000 tons each. Canada's exports will likely recover in 2005/06 after being constrained by poor quality this year. The EU-25 is expected to benefit from less competition from Russia and Ukraine, because of reduced production.

U.S. barley exports are forecast down 150,000 tons to 300,000 tons due to a smaller production forecast.

EU barley exports are forecast to rebound by 0.5 million tons to 3.3 million due to less competition from the Black Sea region.

Barley exports from Ukraine and Russia are projected to drop by a combined 400,000 tons on account of smaller crop prospects.

Canada is expected to boost barley exports (mostly for malting) by 0.5 million tons to 1.8 million as crop quality is expected to return to normal. Oat exports are forecast at a 5-year high due to larger production and less EU competition.

Turkey barley imports are forecast up 250,000 tons to 400,000 resulting from a drop in production.

Hops News

Czech Republic: Czech hop growers produced 6310,7 tonnes of hops in 2004

In 2004 Czech hop growers produced 6,310.7 metric tonnes of hops compared to 5,526.8 metric tonnes of hops in 2003 (+14.2%), according to the figures published by Hop Growers Union of the Czech Republic. The average yield for 2004 was 1,08 t/ha, which corresponds with the years 2001 and 2002 and is 16% higher than last year.

The production in the main growing region of Saaz reached 4435,5 t of hops, the highest yields were recorded in the Moravian Tirschitz region with 1,51 t/ha.

Saaz hops, the Czech variety, accounted for 87,4% of the Czech production with average yield of 1,02t/ha. The quality was very good and the alpha content also better than in two previous years. Very good yields and quality were also achieved with the new Czech varieties Premiant, Sladek and Agnus. The production of these varieties is slowly increasing year by year thanks to demand in the Czech breweries but also in many breweries abroad. Due to strong demand for high quality Czech hops there are no remaining quantities of hops at growers, Hop Growers Union of the Czech Republic said.

Czech Republic is the fourth largest hop producer after Germany, USA and China. In 2004 world hop production totalled about 92,300 metric tonnes, according to preliminary estimations. ...more info