E-Malt.com Flash 13a. March 28

Russia: Molson Coors Brewing Co., the world's fifth-largest brewer, announced on March 30 it is planning to start producing and selling beer at one of Russia's largest breweries, OOO PIT Co as early as next month...more info

China: China Resources Breweries Limited (CRBL) announced on March 30 that it will purchase Zhijiang Jingxing Breweries for 100 million yuan (US$12 million) and make it a beer production base in Yichang...more info

Belgium, Brussels: InBev announced on March 30 the preliminary results of the mandatory tender offer launched on AmBev common shares in Brazil (“MTO”). The MTO started on February 14, 2005 and ended on March 29, 2005, on which date the “auction” was held in Brazil. InBev announced that the preliminary results of the MTO are the following: 1,612,915,545 common AmBev shares have been tendered to the cash option; 1,347,155,632 common AmBev shares have been tendered to the stock-for-stock option. The AmBev common shares tendered to the cash option and to the stock-for-stock option represent, on an aggregate basis, 81,23 % of the total number of outstanding AmBev common shares concerned by the MTO and will bring the total participation held, directly or indirectly, by InBev in AmBev to a 80,99 % voting interest and a 54,16 % economic interest. InBev is a publicly traded company (Euronext: INB) based in Leuven, Belgium. The company's origins date back to 1366, and today it is the leading global brewer by volume. InBev’s strategy is to strengthen its local platforms by building significant positions in the world's major beer markets through organic growth, world-class efficiency, targeted acquisitions, and by putting consumers first. InBev has a portfolio of more than 200 brands, including Stella Artois®, BRAHMA®, Beck’s®, Skol®—the third-largest selling beer brand in the world—Leffe®, Hoegaarden®, Staropramen® and Bass®. InBev employs some 77,000 people, running operations in over 30 countries across the Americas, Europe and Asia Pacific. In 2004, InBev realized a net turnover of 8.57 billion euro (including four months of AmBev).

Czech Republic: In 2004 Czech per capita consumption of beer dipped to 158 litres from 161 litres in 2003 and Czech brewers are increasingly looking abroad. The decrease is attributed by analysts to the saturation reached by the country’s beer market. In spite of the flat performance in 2004, Czech brewers exported a record amount of 2.64 million hectolitres or 14 % of all 18.75 million hectolitres produced, a 24-percent rise on the 2003 figure, AFP and EUbusiness press posted on March 26. Last May's EU accession for the Czech Republic and nine other countries meant the easing of administration, long border queues and prohibitive import duties in some countries. "Paradoxically, EU accession brought more advantages in terms of exports to the new EU member states than the older members in western Europe," Robert Chrt, sales manager with the third largest Czech brewer Budejovicky Budvar, told AFP. "Countries such as Hungary, Poland and the Baltics previously had restrictively high customs duties but with us all in the EU now there is free trade between us," he added. The brewer, which despite a wave of privatisation and consolidation in the Czech beer industry since the end of Communism in 1989 remains in state hands, exports 46 % of its output. Neighbouring Germany is its biggest market, accounting for 40 % of all exports, followed by Slovakia and Britain. Budvar is also moving into new markets such as Australia, New Zealand and Turkey, always first having to clear the way in a trademark dispute with American brewing giant Anheuser-Busch. Germany with an equally strong beer tradition is the biggest foreign market for Czech brewers, accounting for one third of exports, followed by neighbouring Slovakia and Britain, where exports last year rose 42 %. In all, Czech beer is now sold in 60 countries. "The retail price of beer is two to three times higher abroad so exporting can be more profitable," Jan Vesely, head of the Czech Brewers' Association, told AFP. Since the end of Communism, brewers have faced new challenges on the domestic market, he said. "Domestic consumption is stagnating as beer faces increasing competition from other types of drink, particularly wine. Lifestyles are also changing -- people are more career-orientated and have more opportunities and responsibilities than they did under Communism, when workers often went to the pub at lunchtime and didn't return to work," he added. Czechs' exceptionally high beer brand loyalty also makes it difficult to increase market share on the domestic market, according to Chrt. Even small breweries are successfully expanding abroad. Of the 41 Czech brewers, 38 are exporting. Several have gone further by launching licensed production abroad. The biggest brewer and exporter, Plzensky Prazdroj, recently began licensed production in Hungary, having done likewise in Poland, Slovakia and Russia...more info

USA: The shares of Molson Coors Brewing Co. were snapped up by investors on Monday, March 28, after the investment bank Credit Suisse First Boston (CSFB) predicted its stock could strengthen 30 % this year as the newly merged company continues to develop high-margin markets, Associated Press communicated on March 28. CSFB raised its rating to "Outperform" from "Neutral," and raised its 12-month price target for the stock to $100 from $80. The investment bank also raised its 2005 earnings forecast to $4.85 per share from $4.75, and increased its 2006 forecast to $5.79 per share from $5.36. Analysts surveyed by Thomson First Call expect Molson Coors to report earnings per share of $4.89 in 2005, and $5.62 the following year. "As a standalone company, Coors was the levered play on the U.S. beer industry," CSFB analyst Corey Horsch said in a report to clients. "Investors favored the shares when industry volume and pricing growth were accelerating, and avoided the shares when industry conditions were difficult." The stock has bounced around quite a bit since it opened for trade at $75.65 on Feb. 9 - the day the merger was completed. Some two weeks later shares dipped to $67.73 before a recovery last month. Monday, the stock rose $2.18, or 2.9 percent, to $77.08 in afternoon trading on the New York Stock Exchange. Horsch commented in a statement to investors that Molson Coors secured a strong competitive position in two high-margin beer markets - Canada and Britain. He believes the company has the potential to double the profitability of its U.S. business through a number of steps, including cost savings and merger synergies. Adolph Coors Co. and Canada's Molson Inc., both family-run breweries, combined in a $3.4 billion deal with the aim of staying in the race for new international markets. Molson Coors is now the world's fifth-largest brewer with such brands as Molson Canadian, Coors Light, and Keystone.

Colombia, Bogota: Colombian brewery, Grupo Empresarial Bavaria, South America's second-largest beer maker, is not up for sale, but would strongly consider a share-swap with a leading international company if it receives an offer...more info

Barley News

USA: According to trade sources, the U.S. has secured a 55,000 metric tonnes (2,165,185 bushels) barley tender in Japan...more info

Bulgaria. Barley S&D Balance: High prices for grains in the season of 2003/04 promoted a significant rise of sown areas under barley of the 2004' harvest...more info

Theoretical malt prices.

* - 70/30 = 70% Average Two Row Spring and 30% Six Row Winter
** - 50/50 = 50% Average Two Row Spring and 50% Six Row Winter

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

Malt Price Evolution

Malt Market Price Evolution, Crop 2005

Source: E-malt.com

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

Number of German Breweries classified by production capacity

Production capacity, hl of beer	1997	1998	1999	2000	2001	2002	2003	2004
up to 5,000 hl	686	718	725	746	781	789	774	796
up to 10,000 hl	116	105	107	97	88	93	82	85
up to 50,000 hl	241	237	233	222	231	212	219	195
up to 100,000 hl	85	85	77	85	77	71	72	72
up to 200,000 hl	51	54	52	43	41	45	46	44
up to 500,000 hl	43	35	36	35	28	25	29	32
up to 1 Million hl	18	21	21	21	23	21	26	21
over 1 Million hl	33	30	30	30	29	31	27	29
Total German Breweries	1,273	1,285	1,281	1,279	1,298	1,287	1,275	1,274

Source: Deutscher Brauer-Bund

Graph of the week

Agenda

March 2005:
Night of Great thirst, Belgium;
Zythos Beer Festival, Belgium;
Institute and Guild of Brewing Africa Section 10th Convention, South Africa;
China Drinktec China International Exhibition on Beverage, Brewery and Wine Technology;
FOODEX JAPAN 2005 / INTERNATIONAL FOOD & BEVERAGE EXH;
International Food and Drink (IFE), UK;
BLACK SEA GRAIN: A NEW ENVIRONMENT IN UKRAINE AND REGIONAL PROSPECTS FOR GROWTH;
Deltabierfestival, The Netherlands;
UzFood. International Exhibition for Food, Drink Packaging Technology. Uzbekistan.;
Spring Beer Festival "Hops on Equinox", Seattle;
Brew and Beverage Industry - Beer Auction International Trade Fair, Russia;
Siebel Institute Brewing Profitability Workshop;

April 2005:
Helsinki Beer Festival;
Tour de Geuze 2005. Payottenland, Belgium;
FAB 2005 - BC Food & Beverage Conference. Vancouver, BC;
Grains Week 2005. Queensland, Australia;
Concise Course in Brewing Technology;
World Barley, Malt & Beer Conference 2005;
JOINT LEGISLATIVE CONFERENCE. Washington, D.C., USA;
BEER. Exhibition Pavilion Minsk.;
Craft Brewers Conference & BrewExpo America;
Classic City Brewfest, Athens, GA;
SOUTH-UKRAINIAN DAYS OF FOOD AND DRINKS;
SIBFOODEXPO, Siberian Beer. Novosibirsk;
SAMARA DRINKS. SAMARA, RUSSIA;
WINES, BEERS AND DRINKS Exhibition for the Beverage Industry. Krasnoyarsk, Russia;
Malting Course BRi Nutfield United Kingdom;
INTERPAK 2005 Duessledorf, Germany;
Excursion to West-Flanders;

May 2005:
HOFEX 2005. 11th Asian International Exhibition of Food & Drink. Hong Kong;
30th Congress of the European Brewery Convention;
Pivo-2005. Beer International Brewing Technology Exhibition. Sochi, Russia.;
Export Credit Guarantee Programs Seminar. USDA;
California Festival of Beers;

More events are available on site e-malt.com