E-Malt.com Flash 24b. June 16

Brazil: Schincariol brewery’s owners charged with tax evasion

Executives of Primo Schincariol Industria de Cervejas e Refrigerantes SA (Schincariol brewery), Brazilian second largest beer maker...more info

Europe: Carlsberg review of its media planning and buying in Europe

Danish brewing giant, Carlsberg A/S, announced on June 16 that it has signed a letter of intent with OMD to handle its media planning...more info

Colombia: SABMiller, Heineken are to make new proposals to buy Bavaria

SABMiller and Heineken are expected to make fresh proposals before end-June to buy Grupo Empresarial Bavaria, Financial Times said on June 16. Dow Jones reported on 15 June that there is a deadline to present offers for the Colombian brewer, citing a person familiar with the situation. However the deadline was not communicated.

The potential USD 7 billion sale of the Colombian brewer is apparently moving into an advanced stage, with both suitors having been asked to renew their interest, the newspaper added.

A bidding war could push the price of the Colombian brewer as high as USD 9 billion, according to analysts estimations .

Although Bavaria has said it is not up for sale, but would consider a merger, reports over the last few months have linked SABMiller, Heineken, Scottish & Newcastle and InBev with making a bid for the brewer. SABMiller is widely thought to be the front runner. InBev distanced itself from talk of a bid late last week, while shares in S&N rose last month on talk that it was pulling out of the race.

Romania: Ursus Breweries is the new name for SABMiller operations in Romania

Ursus Breweries is the new name for SABMiller’s operations in Romania, SABMiller announced on June 14. Ursus Breweries has in its portfolio Ursus...more info

Japan: Suntory will release a new “third category” beer in July 2005

Suntory Ltd. announced on June 16 it will release a new beer-like sparkling alcoholic beverage called Kireaji-Nama (that means "fresh and crispy") brewed from corn on July 26, according to Kyodo News. The brewer said it had made a drink that tastes strikingly like beer out of corn, aiming for budget-conscious brew guzzlers looking to take advantage of lower taxes.

The "Kire-Aji Nama" beverage features a pure and sharp taste and is the first carbohydrate-free drink of its kind, Suntory said. The new product will come in 350- and 500-mililiter cans. Prices are expected to be around 120 yen to 130 yen for a 350-ml can.

Suntory hopes to ship 7 million cases by the end of the year. One case is equivalent to 20 633 ml bottlers.

Major Japanese brewers are promoting the so-called "third category" beers which, unlike conventional beer, use ingredients other than malt and wheat and thus are subject to lower liquor taxes. Compared with other third-category beers as well as "happoshu" low-malt beers, the Kire-Aji Nama has a relatively high alcohol content of 5 %.

But shipments of low-malt liquor began to drop last year when the government tried to close the gap and raised the tax. Brewers responded by developing so-called "third-sector" products, such as beer-like drinks made of beans.

Barley News

World: Morocco imports influenced world barley trade forecast

Due to the robust malting demand from China and Russia and increased feed requirements in North Africa, world barley trade in 2005/06 is expected to grow modestly...more info

Hops News

China: Carlsberg buys 46% stake in Xinjiang Hops Company

Danish brewing giant, Carlsberg Breweries A/S, has acquired a 46.09 % stake in Xinjiang Hops Co, China's largest barley and hops producer...more info