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E-Malt.com Newsletter 32a
August 04 - August 06, 2014
Quote of the Week
"Perpetual optimism is a force multiplier."
Colin Powell
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Currency Rates
Base Currency: US Dollar
on August 06, 2014 |
Base Currency: Canadian Dollar
on August 06, 2014 |
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1 USD = 0.7464 EUR
1 USD = 0.5929 GBP
1 USD = 1.0933 CAD
1 USD = 1.0730 AUD
1 USD = 102.6310 JPY
1 USD = 2.2689 BRL
1 USD = 35.8992 RUB
1 USD = 6.1650 CNY
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1 CAD = 0.9148 USD
1 CAD = 0.5424 GBP
1 CAD = 0.6828 EUR
1 CAD = 0.9815 AUD
1 CAD = 93.8848 JPY
1 CAD = 2.0756 BRL
1 CAD = 32.8398 RUB
1 CAD = 5.6396 CNY
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Currency Rates Chart
Equities of the Largest Breweries
USA: Guinness trying to attract Americans with new Blonde American Lager
...Click here
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USA, OR: Hop Valley Brewing Co. growing and pushing into new markets
...Click here
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Canada, ON: MacLean’s Ales officially open in Hanover, ON
...Click here
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USA, WI: Demand for Wisconsin-grown barley increases among local craft brewers
...Click here
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Canada, PE & NS: Gahan House to open second brewpub in Halifax
...Click here
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USA, OH: Aqueduct Brewing Co. hopes to open later this month in Akron
...Click here
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USA, NC: Wicked Weed Brewing investing $5 mln in new plant in Candler
...Click here
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USA, OH: Lager Heads Brewing Co. building new production brewery in Medina
...Click here
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USA, NY: Upstate Brewing Co. expecting approval of expansion project
...Click here
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Canada, ON: Sawdust City Brewing finally opens own location
...Click here
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USA, CA: Richmond among short list of cities for Stone Brewing’s new facility
...Click here
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USA, CO & KY: Faster than expected sales growth makes New Belgium Brewing delay distribution in Kentucky
...Click here
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Japan: Asahi Group’s net income up 25.5% in Q2 2014
...Click here
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Vietnam: Alcoholic beverage industry grew an average 17.61% per year in 2009/13
...Click here
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India: United Breweries to commission new plant in Bihar by end of financial year
...Click here
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World: Barley production forecast at 133.1 mln tonnes in 2014/15
...Click here
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Japan: Sapporo Holdings Ltd. to post loss for current year for the first time since its establishment in 2003
...Click here
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World: Hop companies Yakima Chief and Hopunion unite their worldwide operations
...Click here
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France: 100% of winter and 67% of spring barley already harvested
...Click here
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UK: Cobra Beer out of difficulties and with plans of renewed push
...Click here
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World: SABMiller plans to appoint Jan du Plessis as chairman in a year
...Click here
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South Korea: Sales of high-priced beers on the rise, study shows
...Click here
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Vietnam: US brewer to launch craft brewery in Ho Chi Minh City
...Click here
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Kenya: Tequila-flavoured Desperados beer launched in Kenya
...Click here
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Graph of the Week
Table of the Week
World Beer Production by Continent 2000 - 2013
Prices Evolution
Barley Prices
Canadian Malting and Feed Barley Prices
US Malting and Feed Barley Prices
French Malting and Feed Barley Prices
Theoretical Malt Prices
Canadian Malt Prices
US Malt Prices
Theoretical EU Malt Prices
These Days in Business History
04 August
1693 Dom Perignon invents champagne
1790 Congress enacts Alexander Hamilton's plan to fund the public debt and giving birth to the American securities markets
1930 Michael J. Cullen opens his first King Kullen store. He calls it a "supermarket," one of the nation's first - and it is a smash hit, as people drive from miles around for the new shopping experience
05 August
1914 1st traffic light installed (Euclid Ave & E 105th St, Cleveland)
1926 1st talkie movie "Don Juan" at Warner Theatre, NY
1930 Birth of Neil Armstrong , X-15 pilot, 1st Moonwalker (Gemini 8, Apollo 11)
1991 Soichiro Hondo, CEO & founder (Honda), dies of liver cancer at 84
06 August
1661 Holland sells Brazil to Portugal for 8 million guilders
1945 Hiroshima Peace Day-atom bomb dropped on Hiroshima by "Enola Gay"
1990 UN Security Council votes 13-0 (2 abstentions Cuba & Yemen) to place economic sanctions against Iraq
Agenda
News Articles
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USA: MillerCoors net income up 8% in Q2 2014
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SABMiller plc and Molson Coors Brewing Company on August 6 reported that MillerCoors second quarter underlying net income grew 8.0 percent to $445.7
...More info on site
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USA: Guinness trying to attract Americans with new Blonde American Lager
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Volume sales of Guinness in North America fell 6 percent in the 12 months ended June 30, reported Guinness maker Diageo, following a 2 percent decline a year earlier.
Among other efforts to revive Guinness sales—including a “Made of More” ad campaign—Diageo is introducing beers that many people wouldn’t recognize as Guinness at all. First up: Blonde American Lager, which comes out next month. The great black beer is going blond, Bloomberg reported on August 4.
This is not Guinness’s first shot at lightening up for American palates. In 1988, it launched Guinness Gold, but the lager never attracted a following outside a few East Coast markets. “It was outstanding from a taste standpoint and had a strong group of loyalists, but was sort of diverting the focus from the huge opportunities with Guinness,” Guinness Import’s then-chief executive officer told Brandweek in 1993, the year Guinness Gold was discontinued. The problem, execs felt at the time, was that the extension undermined Guinness’s brand equity as “a rich, black beer.”
Twenty years later and Guinness is rethinking its identity in the U.S. again. It started with Black Lager in 2011, which resulted in a short-lived sales bump. Like other big brewers, Diageo cited competition
...More info on site
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USA, OR: Hop Valley Brewing Co. growing and pushing into new markets
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Hop Valley Brewing Co. is again growing as it pushes into new markets, takes on a new distributor and makes plans for another plant expansion, The Register-Guard reported on August 5.
The company, which has operated a brewery and restaurant in Springfield’s Gateway area since 2009, last year opened a brew house and tasting room in Eugene’s Whiteaker neighborhood.
Since then, the staff has doubled, to 120 employees in Eugene and Springfield, and production has more than tripled.
“We did 8,000 barrels last year; we’ll do 25,000 to 30,000 barrels this year,” said Walter Macbeth, a partner in Hop Valley. Hop Valley does not disclose revenues.
The brewery took delivery on August 4 of four new tanks, two with a capacity of 120 barrels and two with a capacity of 180 barrels. In late September, two more tanks — one with a capacity of 280 barrels, the other 240 barrels — will arrive, Macbeth said, followed by the delivery in October of “the biggest tanks we’ve ever received — two 360-barrel tanks.
“They’re so big they will be placed outside. They’re too big to fit in the building.”
All told, the company will be investing $675,000 by the end of the year in the new barrels,
...More info on site
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Canada, ON: MacLean’s Ales officially open in Hanover, ON
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The newest iteration of MacLean’s Ales – the brewery headed by veteran brewmaster Charles MacLean – has officially opened its doors in the small town of Hanover in Ontario’s Grey County, Canadian Beer News reported on August 5.
The roots of MacLean’s Ales extend back to the 1990s, when MacLean was a partner and brewmaster at Guelph’s F&M Brewery, and released MacLean’s Pale Ale as one of the brewery’s brands. He continued brewing there under contact after his retirement in the early 2000s, and then moved back into full time brewing in 2009 with the opening of MacLean’s Ales as a nanobrewery in West Grey township.
Five years later, a much larger version of the brewery is now open in Hanover, with the Pale Ale and MacLean’s Farmhouse Blonde being brewed as year-round brands, and seasonals expected to join the rotation in the future.
MacLean’s Pale Ale and Farmhouse Blonde are both available now in the MacLean’s retail store – Pale Ale in 500 ml bottles, Farmhouse Blonde in 473 ml cans – and the Pale is also on shelves at select LCBO locations throughout Ontario.
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USA, WI: Demand for Wisconsin-grown barley increases among local craft brewers
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Wisconsin-grown hops are all the rage among state craft beer makers, Wisconsin State Journal reported on August 4.
Gorst Valley Hops in Mazomanie has been growing hops since 2008 and the Midwest Hops and Barley Cooperative grows hops in central Wisconsin for five state breweries. Along Highway 69 in northern Green County, New Glarus Brewing Co. provides visitors an up-close view of the hop-growing process with hop trellises near its entrance.
But barley, another important beer ingredient, is beginning to be grown specifically for the state’s craft beer industry. And if it can reach its potential, it could be a boon for farmers, craft breweries and those who crave more local ingredients in their glass of beer.
“The quality has to be super premium. It needs to be the best quality,” said Dan Carey, brewmaster and co-founder of New Glarus Brewing Co., the state’s largest craft brewery. “Hops are sexy and hops are hot right now. Barley’s not something people think about.”
But the wheels are turning.
In two fields that combine for 80 acres northeast of Monroe, stands of two-row Scarlett barley are now more than 2 feet tall. The seed for the grain was planted on Easter Sunday on 30- and 50-acre fields
...More info on site
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Canada, PE & NS: Gahan House to open second brewpub in Halifax
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The PEI Beer Guy blog reported on August 5 that Gahan House, the brewpub arm of Prince Edward Island Brewing, will soon be opening a second location across the bridge in Halifax.
The expansion was first mentioned on the Gahan House Twitter feed and Facebook page last week, although no exact location was noted at the time. PEI Beer Guy subsequently investigated and confirmed that the pub will be located in the waterfront space that most recently housed The Hart & Thistle, a brewpub that closed down earlier this year after almost five years in business.
According to job listings that have been posted on Gahan House’s social media accounts in the last couple of days, the Halifax location is expected to open next month.
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USA, OH: Aqueduct Brewing Co. hopes to open later this month in Akron
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Akron is getting a new nanobrewery.
Aqueduct Brewing Co. hopes to open later this month in the former Burkhardt Brewing Co. building on Grant Street — the same building now occupied by Thirsty Dog Brewing Co, Ohio.com reported on August 4.
Aqueduct, tucked in a far back corner of the complex, is industrial chic. The small tasting room and brewery has a concrete floor, poured concrete bar, exposed brick and a ceiling fashioned of red tin.
Co-owners Robert Hernandez and Dale Dorn want to create a synergy of sorts with the much larger Thirsty Dog, with craft beer drinkers flowing between the two taprooms. Aqueduct will employ a two-barrel brewing system. In addition to having a tasting room, it will distribute beer to local bars and restaurants.
Hernandez, 42, who lives on Aqueduct Street in Akron and thus the name of the brewery, said the back story for Aqueduct is pretty typical.
He and Dorn started homebrewing. They honed their skills. And now the amateurs are turning professional. “I got tired of cleaning my house after all my buddies left after we were done brewing,” joked Dorn, 43, an Akron police officer.
Hernandez is focusing on the brewery full time.
“It makes no money now, but it’s
...More info on site
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USA, NC: Wicked Weed Brewing investing $5 mln in new plant in Candler
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Only 18 months after launching their popular downtown brewpub, Wicked Weed Brewing will invest $5 million in a new plant in Candler that could produce 50,000 barrels of craft beer annually, Citizen-Times reported on August 1.
The company will add another 82 jobs over the next three years, boosting its current staff of 145 workers to include not only brewmasters, but also serving staff, sales and marketing, distribution and administrative staff.
Wicked Weed plans to buy a county-owned 40,000-square-foot facility, originally built in 2006 in the Enka Commerce Park off Sand Hill Road. Part of the $5 million investment will go toward finishing the interior of the building shell. With the installation of a $3.2 million semi-automatic 30-barrel production system, the company will be able to bottle some of its existing recipes, now served on draft at the Wicked Weed brewpub on Biltmore Avenue, explained partner Luke Dickinson.
The downtown brewpub produced some 2,800 barrels in its first year and is on track to produce around 5,000 barrels in 2014.
The surprise announcement came on August 1 as the partners hosted a preview of a second downtown location opening on Coxe Avenue. The new barrel house and tasting room on Coxe, the Funkatorium, will
...More info on site
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USA, OH: Lager Heads Brewing Co. building new production brewery in Medina
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Lager Heads Brewing Co. is building a new production brewery and tasting room in Medina, The Beer Blog reported on August 5.
“The long and short of it is we’ve just kind of outgrown where we’re at,” co-owner Matt Kiene said.
Lager Heads is renovating a concrete block building — a former tool and die shop at 325 W. Smith Road — just a few blocks from the historic Medina Square. The brewery is still months away from moving its brewing equipment there and expanding its capacity, Kiene said.
Lager Heads, now located just north of Medina, started in 2004 as a barbecue restaurant. It wasn’t until 2010 when brothers Matt and Jon Kiene decided to add a brewery. They then started bottling and distributing the following year as the popular brewpub continued to grow.
Anyone who has visited the brewpub knows it’s small and finding a parking spot at peak times can be tough. The brewing system, located in the back, also is cramped.
While the brewery is moving, the restaurant is staying put. That said, there will still be some brewing done at the restaurant.
“We are going to have a small pilot brewery at the restaurant in which we’ll brew some one-offs and
...More info on site
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USA, NY: Upstate Brewing Co. expecting approval of expansion project
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Just two years since Upstate Brewing Co. opened, the craft brewer in Horseheads is already experiencing growing pains, Stargazette reported on August 4.
The site plans for the brewery’s 432-square-foot expansion were recently approved by Chemung County planners. The plans will also be reviewed by Horseheads town planners at a meeting scheduled on August 6.
Mark Neumann, co-owner of the brewery, said he feels confident the town planners will OK the project.
“This is the second time we’ve come before them,” he said. “The first time, they didn’t have any issues but wanted to wait for the county’s recommendation.”
If Neumann’s prediction holds true, ground should be broken for the addition at the end of August, with a seven- to eight-week build time. The brewery may have to close for a brief period during the construction period, he said.
The addition will be built on the north side of Upstate’s building at 3028 Lake Road. It will create space for an enlarged tap room — nearly three times the size of the brewery’s present tap room. Two walls of the current tap room will then be torn down to make room for three new 500-gallon tanks.
“The demand for the beer is outpacing our ability to
...More info on site
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Canada, ON: Sawdust City Brewing finally opens own location
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Almost three years after the debut of the first beer from Sawdust City Brewing, the hitherto contract brewing operation finally has a home to call its own, with the public opening this past weekend of the Sawdust City brewery and retail store in Gravenhurst, Canadian Beer News reported on August 5.
Located at 397 Muskoka Rd. N., Sawdust City is currently selling 473 ml cans of three flagship brands out of its retail store – Ol’ Woody Alt, Golden Beach Pale Ale and Lone Pine IPA – with cans of the latter soon to replace the 650 ml bottles that are available at LCBO locations across Ontario.
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USA, CA: Richmond among short list of cities for Stone Brewing’s new facility
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Richmond is among a short list of cities to become the East Coast base of operations for Stone Brewing Co., reports the Richmond Times-Dispatch.
The Richmond City Council has called a special meeting on August 5 regarding permits for publicly owned land near the James River between downtown and Rocketts Landing, and several City Hall sources said the measures were being brought forward to clear the way for the Stone Brewing project.
The council typically takes August off, and had cancelled all its meetings for the month.
The San Diego-based company was the 10th largest craft brewery in the United States as of last year, and has been named to several annual lists of fastest-growing private companies since its founding in 1996.
The company has gone public with a request for proposals for a facility east of the Mississippi River that could serve as a production brewery and distribution center for the eastern U.S.
Richmond — along with Norfolk, VA; Columbus, Ohio; and others — are among the brewery’s top choices.
Stone Brewing Co. said it expects to spend $20 million on the East Coast facility and to create hundreds of jobs.
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USA, CO & KY: Faster than expected sales growth makes New Belgium Brewing delay distribution in Kentucky
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Faster than expected sales growth this year has New Belgium Brewing applying the brakes to some of its territorial expansion, Northern Colorado Business Report posted on August 1.
The Fort Collins-based craft brewery on August 1 announced that it has already signed deals with 10 distributing partners in the state of Kentucky. But actual distribution in that state, originally slated to start this year, won't occur now until New Belgium's second brewery in Asheville, N.C., begins operating late next year.
"In Fort Collins, we're having a really good year, which is awesome," New Belgium spokesman Bryan Simpson said. "But we're also bumping into capacity."
New Belgium brewed 792,000 barrels of beer last year. Simpson said capacity in Fort Collins is about 950,000 depending on the portfolio mix of beers being brewed and the requirements of each. He said the company at this point is projecting production to be in the high 800,000s for 2014.
A recent packaging makeover and the launch of a new year-round beer, Snapshot Wheat, have been more successful than expected in driving sales, Simpson said. Launches into Ohio and Florida last year have been contributing factors in sales growth.
"So we're ahead of forecast and had to adjust the schedule," Simpson
...More info on site
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Japan: Asahi Group’s net income up 25.5% in Q2 2014
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Japan’s Asahi Group reported on August 6 second-quarter net sales at 811.3 mln yen, up 3.9% on the same period in 2013.
The company’s operating
...More info on site
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Vietnam: Alcoholic beverage industry grew an average 17.61% per year in 2009/13
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Vietnam's alcoholic beverage industry grew an average 17.61 percent per year over the 2009-2013 period despite an economic downturn that hurt most sectors in
...More info on site
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India: United Breweries to commission new plant in Bihar by end of financial year
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United Breweries (UB), India's largest publicly held brewing company in which Dutch brewer Heineken has a majority stake, is set to commission a 12-million
...More info on site
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World: Barley production forecast at 133.1 mln tonnes in 2014/15
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The IGC in its latest report forecasts global barley production in 2014/15 at 133.1 mln tonnes (previous forecast 133.0, previous year 144.8), thereof in
...More info on site
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Japan: Sapporo Holdings Ltd. to post loss for current year for the first time since its establishment in 2003
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Sapporo Holdings Ltd. said on August 5 it will post a loss for the current year due to an extraordinary charge in the form
...More info on site
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World: Hop companies Yakima Chief and Hopunion unite their worldwide operations
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Yakima Chief, Inc. of Sunnyside, WA and Hopunion LLC of Yakima, WA announced that the companies are combining their worldwide operations under a new
...More info on site
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France: 100% of winter and 67% of spring barley already harvested
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FranceAgriMer reported on August 4 that as of July 28, 2014, 76% (previous week 44; previous year 26) of the wheat crop has been harvested, as well as 100% (99; 96) of the winter barley and 67% (15; 11) of the spring barley.
84% (previous week 84; previous year 54) of the corn crop in France was in good to excellent condition, the ministry said.
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UK: Cobra Beer out of difficulties and with plans of renewed push
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Lord Bilimoria speaks openly and honestly about the difficulties his company Cobra Beer faced back in 2008.
The producer of one of the UK's most popular lagers, his business had grown too fast and over-extended itself. It was making a loss, and had built up substantial debts, which it was struggling to service, BBC reported on August 5.
While this situation may have been rectifiable in benign economic conditions, the global financial crisis that exploded in 2008 meant that Cobra had to put itself up for sale in November of that year.
"We had lots of debt and we didn't see the crisis coming," says Lord Bilimoria, speaking at Cobra's headquarters in London.
At the time the company had been growing by an average 40% every year since it was set up in 1989.
All potential profits had been invested back into continuing to grow the company, so its cash reserves were running very low at a time when Lord Bilimoria says "cash didn't just become king - it became emperor".
He adds: "What I could have done - should have done, with hindsight - is proven the profitability [of the business] for two or three years, and slowed down the growth. But at that stage...
...More info on site
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World: SABMiller plans to appoint Jan du Plessis as chairman in a year
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Brewing giant SABMiller PLC on August 6 said it has plans to appoint Jan du Plessis as chairman in July next year, to succeed John Manser.
In December last year, Chairman Graham Mackay died after battling with a long-term illness. The board appointed acting Chairman John Manser as chairman with immediate effect, and appointed Guy Elliott as senior independent director in succession to Manser.
In a statement on August 6, SABMiller said du Plessis, aged 60, will join the board as an independent non-executive director with effect from September 1, after which it intends to appoint him as chairman in succession to Manser at the conclusion of its annual general meeting in July 2015, when Manser retires.
"This will allow for an appropriate period of familiarisation and handover, and facilitate orderly succession planning," SAB Miller said.
Du Plessis is currently chairman of Rio Tinto PLC, and has been a non-executive director of Marks and Spencer Group PLC since 2008 and senior independent director since March 2012.
"Du Plessis has agreed with the chairman of Marks and Spencer that he will stand down from the board of Marks and Spencer during the first half of 2015, before being appointed as chairman of SABMiller," the company added.
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South Korea: Sales of high-priced beers on the rise, study shows
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According to a study by South Korea’s Lotte Mart based on five-year sales records on canned beers, the sales of high-priced domestically brewed beers have increased by a large margin. In addition, the study found that both high- and low-priced import beers have sold well at the expense of medium-priced beer brands, The Korea Bizwire reported on August 3.
For example, import beers whose prices are lower than 2,000 won (US$1.93) accounted for only 13.3 percent of all canned beer sales in 2010. But the share increased to 35.0 percent this year. During the same period, the ratio of import beers with prices over 3,000 won ($2.89) rose to 44.3 percent from 26.0 percent.
Meanwhile, the market share of upscale domestic beer brands priced over 1,500 won ($1.45) almost doubled to 12.3 percent from 6.8 percent in 2010. That’s largely because of the launch of new premium domestic beer brands such as Kloud, Aleston, and Queen’s Ale in efforts to compete head-on with import brands.
In addition, the previously common 355-milliliter can will be gradually replaced by a longer 500-ml can. The share of 500-ml import beers was less than 20 percent by 2010 but it shot up to 65.2 percent this year.
...More info on site
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Vietnam: US brewer to launch craft brewery in Ho Chi Minh City
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A US brewer is making the move to Vietnam to set up a new craft brewery in Ho Chi Minh City, The Drinks Business reported on August 5.
Alex Violette has spent the last five years as head brewer at Upslope Brewing in Boulder, Colorado but is now setting out to Vietnam to bring craft brewing to the country.
According to the Daily Camera, Violette is moving to Ho Chi Minh on 14 August and is partnering with a fellow American, John Reid, who has lived in Vietnam for the last six years and has taken the dearth of good craft beer in the country into his own hands by founding his own brewery.
Together they will open the Pasteur Street Brewing Company later in the year and aim to use local ingredients such as herbs, spices and fruits in some of the beers as well.
Violette told the paper there is real potential for craft beer in Vietnam but it will not be easy. He said: “There’s the potential in that part of the world to introduce them to craft beer.
“We go over there and we’re not just selling our brand, we have to sell an entire style of beer.
“There will be a
...More info on site
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Kenya: Tequila-flavoured Desperados beer launched in Kenya
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Heineken East Africa Import Company has expanded its portfolio in East Africa with the introduction of Desperados, a tequila-flavoured beer, Capital FM reported on August 1.
The product is a unique combination of gold colored, full bodied lager beer with a kick of real Tequila flavour to achieve a fine balanced premium beer with distinct accessible taste, light bitterness and refreshing citric notes.
Desperados is a 5.9% alcohol beer, and the ultimate party beer for young energetic adults over legal drinking age who are looking for better and unforgettable experiences during the night.
“This is a unique product proposition that will help to further expand the beer category as it is at the boundary between the beer and spirit territories,” says Uche Unigwe, Heineken’s General Manager East Africa. “The launch of Desperados in Kenya marks another milestone for us in this market as we seek to tap the opportunities we see for alternatives to plain lagers and spirits, which we believe is what consumers are looking for.”
Desperados was first launched in France in 1995, and is now present in bars and clubs in 66 markets around the globe. It has been delivering double-digit growth for the last 6 years, accelerated by its growth
...More info on site
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