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E-Malt.com Newsletter 07a
February 13 - February 15, 2017
Quote of the Week
Never give up, for that is just the place and time that the tide will turn.
Harriet Beecher Stowe
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Currency Rates
Base Currency: US Dollar
on February 15, 2017 |
Base Currency: Canadian Dollar
on February 15, 2017 |
| |
1 USD = 0.9433 EUR
1 USD = 0.7999 GBP
1 USD = 1.3060 CAD
1 USD = 1.3047 AUD
1 USD = 113.7200 JPY
1 USD = 3.1048 BRL
1 USD = 57.7388 RUB
1 USD = 6.8706 CNY
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1 CAD = 0.7656 USD
1 CAD = 0.6124 GBP
1 CAD = 0.7222 EUR
1 CAD = 0.9988 AUD
1 CAD = 87.0600 JPY
1 CAD = 2.3770 BRL
1 CAD = 44.1053 RUB
1 CAD = 5.2600 CNY
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Currency Rates Chart
Equities of the Largest Breweries
Canada: Molson Coors takes US$495-million charge on its Molson brands in Canada
...Click here
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USA: MillerCoors’ domestic sales-to-wholesalers decline 1.3% in 2016
...Click here
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USA, NY: Blue Point Brewing Company to build 60,000 barrel, multi-million dollar brewery in Patchogue
...Click here
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USA, PA: Root Down Brewing Co. hoping to open by May in Phoenixville
...Click here
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USA, VA: Hammer & Forge Brewing Co. becomes Boones Mill’s first brewery
...Click here
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World: Heineken reports fastest earning growth in seven years
...Click here
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Brazil & the Netherlands & Japan: Heineken agrees to buy Kirin’s Brazilian breweries
...Click here
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Japan: Kirin Holding achieves net income in 2016 versus lost in the previous year
...Click here
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Germany: Experts list reasons for declining beer consumption in Germany
...Click here
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Thailand: Thai Beverage posts 28% increase in Q1 profit
...Click here
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Japan & Myanmar: Kirin to invest US4.3 mln in 51% of joint venture with Mandalay Brewery owner MEHL
...Click here
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India: Carlsberg India signs two deals to expand business in India
...Click here
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Malaysia: Heineken Malaysia Bhd records increased earnings in quarter to December 31
...Click here
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Vietnam: Carlsberg may not be Vietnam government’s only option in Habeco disposal
...Click here
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Sri Lanka: Lion Beer blames beer sales plunge on increased taxes
...Click here
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Ireland & UK: Guinness to release new beers over the next three years
...Click here
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New Zealand: Lion says newly acquired craft brand Panhead is ‘a runaway train’
...Click here
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Azerbaijan: Baltika-Baku Ltd renamed as Carlsberg Azerbaijan Ltd
...Click here
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Graph of the Week
Table of the Week
US Beer Sales, Import, and Export 2013 - 2016s
Prices Evolution
Barley Prices
Theoretical Malt Prices
Scientific Digest
DRY HOPPING: MORE OIL = MORE HOPPY?
ABSTRACT
If I would ask you if you think a higher addition of hop
oil equivalent for dry hopping would result in a hoppier
beer, I am sure all of you would be quite confident that
this is correct. However US researchers say perhaps
not. An unhopped beer was dry hopped with 23
individual Cascade hop lots, and the resultant beer was
evaluated with sensory descriptive analysis. The results
demonstrated a negligible role of total oil content (mL/
100 g) as an indicator of hoppiness. In fact, there was
no correlation between total oil content and overall hop
aroma intensity with this study. The Cascade samples had
oil contents ranging from 0.6 up to 2 ml/100g of hops.
I am as surprised as you are, but wouldn't life be boring
without occasional results such as these?
Vollmer, D: Influence of Hop Oil Content and Composition on Hop Aroma Intensity in Dry-Hopped
Beer
Read more
Source: Barth Innovations
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These Days in Business History
13 February
1741 - Andrew Bedford publishes 1st American magazine (American Magazine)
1895 - Moving picture projector patented
1980 - Apollo Computer Inc incorporated
2004 - The Harvard-Smithsonian Center for Astrophysics announces the discovery of the universe's largest known diamond, white dwarf star BPM 37093
14 February
1794 - 1st US textile machinery patent granted, to James Davenport
1924 - IBM Corporation founded by Thomas Watson
1946 - Bank of England nationalized
1946 - John W. Mauchly and J. Presper Eckert, Jr., officially unveil their Electronic Numerical Integrator and Computer, performing 5,000 additions and 300 multiplications per second and weighing more than 30 tons
2005 - YouTube is launched by a group of college students, eventually becoming the largest video sharing website in the world and a main source for viral videos
15 February
1946 - Bank of England nationalized
1955 - 1st pilot plant to produce man-made diamonds announced
1995 - Dow-Jones closes at record 3986.17
Agenda
February 2017:
01-03: Finest Spirits 2017 (Munich, Germany)
04-05: Bruges Beer Festival 2017 (Bruges, Belgium)
10-12: Brau Kunst Live 2017 (Munich, Germany)
10-13: HoReCa 2017 (Athens, Greece)
17-19: Mondial de la Biere 2017 (Mulhouse, France)
18-21: Beer Attraction 2017 (Rimini, Italy)
22-25: CAMRA's National Winter Ales Festival 2017 (Norwich, UK)
23-25: Alltech Craft Brews & Food Fair 2017 (Dublin, Ireland)
27-02 March: VLB Seminar for Brewers in Russia (Moscow, Russia)
28-02 March: Beviale Moscow 2017 (Moscow, Russia)
March 2017:
06-08: 104th Brewing and Engineering Conference (Munich, Germany)
08-10: Expo Antad & Alimentaria Mexico 2017 (Mexico City, Mexico)
08-11: Festival Brasileiro da Cerveja 2017 (Blumenau, Brazil)
16-19: BeerX 2017 (Sheffield, UK)
22-24: World Barley, Malt & Beer Conference 2017 (Vienna, Austria)
24-26: Barcelona Beer Festival 2017 (Barcelona, Spain)
April 2017:
07-08: Helsinki Beer Festival 2017 (Helsinki , Finland)
10-13: Craft Brewers Conference & BrewExpo America 2017 (Washington, D.C., USA)
12-14: Siberian Beer 2017 (Novosibirsk, Russia)
22-23: Zythos Beer Festival 2017 (Leuven, Belgium)
May 2017:
14-18: EBC 2017 (Ljubljana, Slovenia)
16-19: Beer 2017 (Sochi, Russia)
18-20: Copenhagen Beer Festival 2017 (Copenhagen, Denmark)
25-27: South Beer Cup 2017 (Buenos Aires, Argentina)
June 2017:
06-07: Brewing Equipment and Technology 2017 (Birmingham, UK)
11-13: Brewing Conference Bangkok 2017 (Bangkok, Thailand)
14-18: Mondial de la Biere 2017 (Montreal, Canada)
July 2017:
08: Beer Boot Camp 2017 (Johannesburg, South Africa)
15: Beer Boot Camp 2017 (Cape Town, South Africa)
26-28: Brasil Brau 2017 (Sao Paulo, Brazil)
August 2017:
04-06: The 21st International Berlin Beer Festival (Berlin, Germany)
08-12: The Great British Beer Festival 2017 (London, UK)
09-12: Vietfood & Beverage 2017 (Ho Chi Minh City, Vietnam)
September 2017:
03-06: 18th Australian Barley Technical Symposium (Hobart, Tasmania)
07-09: Irish Craft Beer Festival 2017 (Dublin, Ireland)
11: International MicroBrew Symposium 2017 (Munich, Germany)
11-15: drinktec 2017 (Munich, Germany)
16-03 October: Oktoberfest (Munich, Germany)
23-24: Whisky Live Paris 2017 (Paris, France)
October 2017:
16-17: 104 VLB October Convention 2017 (Berlin, Germany)
23-25: 8th Ibero-American VLB Symposium 2017 in Guatemala (Guatemala City)
November 2017:
22-23: Craft Beer Italy 2017 (Milan, Italy)
More events are available on site www.e-malt.com
News Articles
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Canada: Molson Coors takes US$495-million charge on its Molson brands in Canada
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Molson Coors took a US$495.2-million impairment charge in the fourth quarter to reflect a lower value of the brewing giant's core Molson brands in Canada, the Penticton Herald reported.
The company said it determined last fall that the fair value of the Molson products was lower than its book value as it faced a weaker performance last year, difficult market conditions and intensified competition not expected to subside.
Molson Coors is Canada's second-largest brewer but has seen its share of the market slide, having lost ground to its largest rival, smaller competitors and craft beers.
Since 2012, its market share has dropped to 34 per cent from 40 per cent, while Anheuser-Busch's Labatt has grown two percentage points to 43 per cent. Other brewers account for almost a quarter of the Canadian market, up from 19 per cent five year ago.
Molson Coors posted a US$460.9 million pre-tax loss from its operations in Canada for the three months ended Dec. 31, down from a $48.5 million profit a year earlier.
Adjusting for one-time items, underlying profits for the company's Canadian operations fell to US$48.5 million from US$51.8 million a year earlier.
Net sales fell 3.6 per cent to US$329.6 million, driven by lower consumer demand caused
...More info on site
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USA: MillerCoors’ domestic sales-to-wholesalers decline 1.3% in 2016
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Despite sales volume declines at home and abroad, Molson Coors CEO Mark Hunter said he was pleased with the company’s progress, Brewbound.com reported.
On the year, MillerCoors’ domestic sales-to-wholesalers volume declined 1.3 percent (0.9 percent for the quarter). However, the company saw a 1.3 percent increase in domestic net revenue per hectolitre, excluding contract brewing and company-owned distributor sales, which it attributed to favorable pricing and sales mix.
Lower volumes in the economy and premium light beer segments contributed to a 2.5 percent decline in depletions for the fiscal year and a 2.8 percent decline for the trading-day-adjusted quarter, the company said.
The company’s largest brand, Coors Light, experienced a 1.9 percent decrease in worldwide volumes for the quarter and 0.2 percent for the year. Hunter told analysts that although Coors Light’s volumes were lower in the U.S. and Canada, the brand managed to gain share of the premium light segment for the seventh consecutive quarter. Coors Light also experienced “significant volume growth” outside of North America, in particular in Latin America, and sales were nearly flat globally.
Domestic Miller Lite volumes, meanwhile, decreased 1.7 percent in 2016. Nevertheless, the brand also managed to gain share of the premium light segment for the ninth
...More info on site
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USA, NY: Blue Point Brewing Company to build 60,000 barrel, multi-million dollar brewery in Patchogue
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Blue Point Brewing Company has announced plans to build a 60,000 barrel, multi-million dollar brewery in Patchogue, New York, Brewbound.com reported on February 10.
“Long Island is a 5 million person population small town,” said president Todd Ahsmann, who was named Blue Point’s president one year ago and had previously held brand managing, marketing and consumer experience positions with Goose Island. “Word spreads quickly.”
The new brewery, located in a 53,000 sq. ft. brick building at 225 West Main Street formerly occupied by Briarcliffe College, is slated to break ground in early June with a target of opening in early 2018.
“If everything went perfect, we would expect production to begin at the end of December,” Ahsmann said. “I don’t think any project goes perfectly though.”
The new brewery is the latest evolution for Blue Point, which founders Mark Burford and Peter Cotter launched in 1998 and sold to Anheuser-Busch InBev in 2014.
ABI, which is still finalizing the design of the building’s interior, would not disclose official investment figures. Ahsmann, however, described plans for a small first-floor tasting room and second-floor taproom — with views of the brewery operations and Lake Patchogue — that should fit “a couple of hundred people.”
“We will knock out
...More info on site
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USA, PA: Root Down Brewing Co. hoping to open by May in Phoenixville
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Like many homebrewers, Mike Hamara had dreams of opening his own brewery.
And like many homebrewers, he found out that can be a long and complicated process.
That process soon will come to an end when Hamara and his wife, Martha, open Root Down Brewing Co. in downtown Phoenixville, the Reading Eagle reported on February 12.
"I thought it would be about a yearlong process, and here we are, almost two years later, still going at it," he said. "It's finally coming together. It's been a long time in the making."
The brewery will be at 1 N. Main St., behind Molly Maguire's Irish Restaurant and Pub. The 13,000-square-foot facility was previously known as Superior Beverage Co. and produced sodas such as Hires Root Beer and Orange Crush. It's the same building that West Reading's Chatty Monks Brewing Co. had planned to use for a second location before those plans fell through.
Hamara started homebrewing around 2002, when he was in the Marines. When he got out of the Marines, he moved back home to Downingtown, where he opened a beer- and wine-making supply shop called Artisan Homebrew. He ran that from 2009 until selling it in 2015.
"The original game plan was I was going
...More info on site
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USA, VA: Hammer & Forge Brewing Co. becomes Boones Mill’s first brewery
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Hammer & Forge Brewing Co. in Boones Mill is the first brewery in town. It's in the former Medicine Shoppe space at 70 Main St., right off U.S. 220.
Owner Caleb Williamson opened the doors for the first time on February 11. It had just a few taps going in its first days, but more beers are coming. A grand opening is planned for March 4. The tasting room is set to have 10 taps featuring house-made IPAs, a Russian imperial stout, American amber, Irish red ale and more.
The space is about 2,000 square feet and has 65 seats inside, as well as a small stage for live music and a TV. It's a small brewery, comparable to Big Lick Brewing Co.'s current spot in downtown Roanoke and Twin Creeks Brewing in Vinton. As with the owners of those breweries, Williamson was also a homebrewer who decided to turn his hobby into a profession. He brewed at home for about three years before reaching out to professional brewers for assistance on how he could open his own tasting room. The owners of Big Lick showed him their operation and gave him some tips on how it's done.
Turning the
...More info on site
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World: Heineken reports fastest earning growth in seven years
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Heineken NV, the world’s second-largest brewer, forecast growth in sales and profit this year as customers in Vietnam and other Asia markets drink more
...More info on site
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Brazil & the Netherlands & Japan: Heineken agrees to buy Kirin’s Brazilian breweries
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Heineken NV, the world's second-largest brewer, agreed on February 13 to buy the loss-making Brazilian breweries of Japan's Kirin Holdings Co Ltd, boosting its
...More info on site
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World: Molson Coors reports 2016 results
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Profits at Molson Coors Brewing surged during the fourth quarter, though not as much as industry analysts had expected and sales of Coors Lite,
...More info on site
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Japan: Kirin Holding achieves net income in 2016 versus lost in the previous year
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Kirin Holdings Co. Ltd. on February 13 announced fiscal net income attributable to the owners of the parent of 118.158 billion yen, compared to
...More info on site
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Germany: Experts list reasons for declining beer consumption in Germany
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The amount of beer Germans drink annually has plummeted by roughly a third since the 1970s. So why are Germans seemingly turning up their
...More info on site
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Thailand: Thai Beverage posts 28% increase in Q1 profit
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Thai Beverage posted a profit of 7.7 billion baht (S$312 million) for the three-month period ended Dec 31, 2016, up 28 per cent from 6 billion baht in the previous year, The Business Times reported on February 14.
This was due to an increase in net profit of beer, F&N/FCL operating results, and a decrease in net loss of non-alcoholic beverages business.
Revenue went down 8 per cent to 46.8 billion baht, due to a decline in sales of the spirits business, beer segment, non-alcoholic beverages business and food business during the period of mourning for the death of the Thai king.
Sales revenue of international business in the first quarter ended Dec 31, 2016 decreased by 17.5 per cent. Beer sales revenue dropped mainly due to a slowdown in Asean sales despite positive growth in Singapore and Cambodia. International spirits business also reported revenue decline as a result of the sterling fluctuation due to the Brexit.
Earnings per share was 0.31 baht, a 29 per cent increase from 0.24 baht a year ago. Net asset value per share was also up 4 per cent to 4.97 baht year-on-year.
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Japan & Myanmar: Kirin to invest US4.3 mln in 51% of joint venture with Mandalay Brewery owner MEHL
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Hiroshi Fujikawa, resident director of Myanmar Brewery Limited, said Kirin will invest US$4.3 million for 51 percent of a joint-venture with Myanma Economic Holdings
...More info on site
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India: Carlsberg India signs two deals to expand business in India
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Carlsberg India has signed two new manufacturing contracts in Jharkhand and Maharashtra to expand its business in India. In Jharkhand, the Danish brewer inked a deal with Pali Hills Breweries, and in Maharashtra, its contract is with Lilasons Industries Ltd, PTI reported.
“While Maharashtra is a growing market for Carlsberg India and this association is a step towards strengthening our operations in the state, our association in Jharkhand is aimed at ensuring that our focused brand portfolio is available to our consumers in the region,” said Carlsberg India Managing Director Michael N Jensen.
Both Lilasons and Pali Hills breweries will manufacture Carlsberg Elephant and Tuborg Strong. Tuborg breweries is part of the Carlsberg Group. “To ensure delivery of Carlsberg’s global quality standards, significant investments in equipment, automation and processes have also been made by Lilasons to upgrade brewery operations in Maharashtra,” a statement from the company said.
Carlsberg began its India operations nearly a decade ago in Himachal Pradesh’s Paonta Sahib Brewery. Now India’s third-largest beer maker, the company has seven breweries and two co-manufacturing contracts across the country. Besides Carlsberg Elephant and Tuborg Strong, it also sells Carlsberg Green and Tuborg Green in India.
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Russia: Beer market share down to 39.9% in 2016
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According to Rosstat data, vodka’s share of Russia’s total alcohol market increased last year to the detriment of beer, Profibeer reported.
According to the official
...More info on site
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Malaysia: Heineken Malaysia Bhd records increased earnings in quarter to December 31
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Heineken Malaysia Bhd recorded increased earnings of RM104.7 mln for the three months ended Dec 31, 2016, while revenue rose 10.1% to RM577.5 mln.
As the company had recently announced the change of its financial year end from June 30 to Dec 31, there were no comparative figures for the preceding corresponding periods.
The current reporting period is for a period of 3 months and 18 months, from October 1, 2016 to December 31, 2016 and from July 1, 2015 to December 31, 2016 respectively.
In its filing to the stock exchange on February 15, the company provided a comparison for these periods, compared to the previous financial year.
For the quarter ended December 31, 2016 against the same quarter in 2015, the increase in group revenue was driven by strong portfolio performance with growth in premium brands of Heineken and Guinness, effective sales execution and strong growth in the Modern Off-Trade segment, mostly driven by earlier timing of Chinese New Year.
The Group said the results were also supported by the stabilisation of the Malaysian consumer market, although consumer sentiment remained weak.
Group profit before tax improved by 3.7% mainly due to the increase in revenue, efficient and effective commercial spend and further supported
...More info on site
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Vietnam: Carlsberg may not be Vietnam government’s only option in Habeco disposal
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Carlsberg will bid for the State-controlled Hanoi Beer Alcohol and Beverage Joint Stock Corporation (Habeco) in March or April, but the Vietnamese Government may have more than one option to choose from when it comes to buyers, VietNamNet Bridge reported on February 13.
The government is seeking to equitize Habeco, the country’s second-largest brewer, by selling its 82 per cent stake. Carlsberg, which already owns 17 per cent of the company, holds priority purchase rights for a 60 per cent stake.
In October, the government said it would announce the results of negotiations on its priority purchase rights with Carlsberg by the end of that month. It is not clear why the process has been drawn out.
“We have not been able to make a bid,” the Danish brewer’s CEO, Mr. Cees ‘t Hart, told Reuters, adding that he expects to submit a bid in March or April. There was also uncertainty over whether the Vietnamese Government will abide by Carlsberg’s first right of refusal, he said.
So what might have actually gone wrong in the negotiation between Carlsberg and the Ministry of Industry and Trade over additional Habeco’s shares?
A price disagreement almost certainly exists. The government announced in August it wants to sell
...More info on site
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Sri Lanka: Lion Beer blames beer sales plunge on increased taxes
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Sri Lanka's beer sales volumes have plunged 40 percent and arrack sales have risen 14 percent after a steep hike in beer taxes, while toddy industry which pays little taxes are also making gains, Lion Beer has warned.
Lion Beer, which produces Lion and Carlsberg brands, said beer taxes were raised 70 percent and taxes on arrack, a hard alcohol, were raised 25 percent, leading to a shift in demand.
The firm said beer which has an alcohol content of around 5 percent or higher is taxed at 315 rupees a litre while toddy which also has a similar alcohol content is only taxed at 50 rupees a litre.
"As a result, consumers are shifting in large numbers to toddy," Lion Beer said.
"In revenue terms too, the Government is losing out since available data clearly indicates that this industry is a habitual tax evader."
"If the intention of the steep tax increase on beer was to reduce consumption of legally made alcobevs, it has not worked since arrack volumes have grown to compensate."
Lion Beer claimed that toddy is made from mixing chemicals under unhygienic conditions.
"In reality, what is currently sold as toddy is not fit for human consumption. Yet, its sale is encouraged
...More info on site
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Ireland & UK: Guinness to release new beers over the next three years
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Guinness’s Open Gate Brewery Project in Dublin, the initiative that launched Hop House 13 and Dublin Porter, will release new beers over the next three years, The Morning Advertiser reported.
New craft beers from the Diageo-owned brewery are ready to be launched and others are due to reach the market during the next three years.
In an exclusive interview with MA, Charles Ireland, Diageo general manager for the UK, Ireland and France, said there were plans to develop more beers for the on-trade and to build on the brand’s portfolio further.
In this video interview, Ireland said: “The philosophy of the Open Gate Brewery is to shift the perception of Guinness, the brewer, into a brewer of great beers and the project has a rotating programme of beers that will be available on either a semi-permanent basis or just a limited-edition basis.
“We’ve got a great pipeline of delicious beers coming through the business and we will be launching them over the next one, two and three years to keep the Open Gate Brewery Project really vibrant.”
Ireland added that there would be ales, lagers, bitters and stouts coming through the brewery over this period.
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New Zealand: Lion says newly acquired craft brand Panhead is ‘a runaway train’
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Brewing giant Lion says its newly acquired Panhead brand is a "runaway train" and the company can't keep pace with demand, The National Business Review reported.
The brewer and winemaker acquired Panhead Custom Ales from the family of founder Mike Neilson for an undisclosed sum, its second such purchase of a popular craft brewer after buying Dunedin-based Emerson's Brewing Co in 2012.
Lion managing director Rory Glass cited sales growth for its craft beers and the trend of "premiumisation", where consumers seek out better and more expensive beers, for the company's 12% gain in profit in 2016.
Net profit rose to NZ$38.7 million in the 12 months ended September, from NZ$34.7 million a year earlier. Sales rose 5% to NZ$561 million. The total volume sold rose just 1% in the latest year.
"The amazing thing about Panhead is that we can sell every drop of beer it makes. It's a runaway train, and so far we just haven't been able to keep up with demand," Mr Glass says.
Upper Hutt-based Panhead lifted production by 80% last year. Emerson's volume rose 49% while Lion's Mac's range had 30% volume growth last year.
Big brewers have been competing to buy smaller boutique operators in a market where craft
...More info on site
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Azerbaijan: Baltika-Baku Ltd renamed as Carlsberg Azerbaijan Ltd
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Since 14 February 2017 Baltika-Baku Ltd has been renamed in Carlsberg Azerbaijan Ltd, Azerbaijan Business Center reported.
The company said this step was taken with the aim of its further integration into Carlsberg Group and unification of corporate identity with other companies of the group.
The organization & legal form and details of the company are not changed, except its name. The company does not cease its activity, and in the future will continue fulfilling all its obligations. All rights and obligations of Baltika-Baku Ltd will transfer to the successor – Carlsberg Azerbaijan Ltd.
The brewery is located in the city of Khirdalan, 10 km from the capital of Azerbaijan. It has been part of Carlsberg Group since 2008, and in May 2009 the enterprise was opened after reconstruction. Being the leader in the brewing industry with a market share of around 75%, the company is one of the largest enterprises of the nonoil sector of Azerbaijan and the place of work of hundreds of citizens.
Carlsberg Azerbaijan’s production capacity is 1 mln hl a year.
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