E-Malt.com Flash 28a. July 11

Russia: Heineken conquers Siberia, acquiring the sixth brewer in Russia

Heineken N.V. announced on July 13 that it has signed an agreement to acquire 100% of Baikal Beer Company in Irkutsk, Russia...more info

Japan: Shipments of beer, beer-like drinks drop 2.7 % in the first half

Shipments in Japan of beer and beer-like alcoholic beverages by five major domestic brewers dropped 2.7 % in the first half of 2005 from a year before for the fourth straight decline on a first-half basis, Kyodo News cited industry data released on Tuesday, July 12.

Overall shipments by Kirin Brewery Co., Asahi Breweries Ltd., Suntory Ltd., Orion Breweries Ltd. and Sapporo Breweries Ltd. totaled 228.26 million cases. All five suffered first-half falls for the first time since the data were first gathered in 1992. One case holds 12.66 liters, or the equivalent of 20 633-milliliter bottles.

Shipments of a beer-like sparkling alcoholic beverage, known as "third-category" beer, more than tripled to 32.66 million cases, reflecting its popularity for its cheap prices stemming from lower liquor taxes. It accounted for 14.3 percent of overall shipments, up sharply from 4.4 percent a year before.

But shipments of "happoshu" low-malt beer slumped 20.2 percent to 70.46 million cases with a 30.9 percent share. Those of traditional beer fell 8.0 percent to 125.13 million cases with a 54.8 percent share, dropping for the ninth consecutive first-half period. ...more info

Brazil & Belgium: InBev and AmBev announced merger of Brazilian entities

InBev announced on July 11 the proposed merger between InBev Holding Brasil and AmBev. The merger will lead to financial benefits for shareholders.

AmBev’s Board of Directors called on July 11 an extraordinary shareholders meeting to be held on July 28, 2005. The meeting will decide on the merger into AmBev of InBev Holding Brasil, the 100 % InBev Brazilian subsidiary owning a 55.5% economic stake in AmBev.

The Merger is part of a corporate structure simplification which already resulted in the merger of other Brazilian companies into AmBev and into InBev Holding Brasil.

The Merger will result in financial benefits to AmBev and InBev. The goodwill resulting from the acquisition of AmBev’s shares through (1) the Labatt contribution dated August 27, 2004 and (2) the mandatory tender offer for AmBev common shares dated March 29, 2005 will be, following the Merger, amortized by AmBev up to 10 years, according to the applicable tax legislation. The total goodwill arising from the 2 transactions detailed above, amounts to 8,5 billion BRL [3 billion EUR at an exchange rate of 1 EUR = 2.8 BRL].

According to Brazilian legislation, the goodwill tax benefits resulting from the Merger will be capitalized into AmBev to the advantage of InBev Holding Brasil’s shareholder, InBev – upon the actual obtaining of the tax benefit by AmBev. Nevertheless, all AmBev shareholders will have preemptive rights in the subscription of the capital increase resulting therefrom. ...more info

Kenya: East African Breweries invests to produce more cheap beer

East African Breweries, the region's largest company by market capitalisation, said on July 12 that it was investing in additional machinery...more info

Canada: Brick Brewery starts importing beer

Brick Brewing Co. Limited, founded by Jim Brickman in 1984 announced on July 12 that besides brewing beer...more info

Malt News

EU: Malt licence bookings in 2004/2005 decreased by 11.7% year-on-year

Malt licence bookings during the past grain year, July 01, 2004 - June 28, 2005, were of 2.22 million tonnes...more info

Germany: Bestmalz AG agrees to cooperation with two more partners

Bestmalz AG announced on July 12 that Heine Malz and Malzfabrik Langkopf have become members of the Bestmalz group of companies...more info

Barley News

USA: Barley harvest may slip 13% in USA

This year's barley crop in the United States is expected to reach 243 million bushels (5.29 million metric tonnes), 13% below 2004, according to the latest USDA crop report of July 11.

Based on conditions as of July 1, the average yield is forecast at 70.0 bushels (1.52 metric tonnes) per acre, up 0.6 bushel ( 0.013 metric tonnes) from last year. If realized, this would be the highest yield on record. Area for harvest, at 3.47 million acres, is down 14% from 2004 and the lowest since 1890.

Production declines are expected for all of last year's 13 largest producing States, mostly due to decreased acreage. Area harvested is expected to decrease in all of last year's 12 largest producing States.

Forecast yields are at or above 2004 in most States, and, if realized, would set new record highs in Colorado and Montana and tie record high yields in Idaho and Utah. In North Dakota, yield is forecast at 70 bushels per acre, up 1 bushel from last year, but area harvested, at 1.15 million acres, is down 22% from last year and the lowest since 1936, resulting in a 21% decrease in expected production.

Hops News

New Zealand: 2005 HOP CROP

The 2005 New Zealand hop harvest was completed in March. The 2004/05 growing season was characterised by a mild Spring...more info