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Newsletter Summary

RombBullet Quote of the week
RombBullet Currency rates
RombBullet Brewers equities
RombBullet Industry news
RombBullet Graph of the week
RombBullet Table of the week
RombBullet Prices evolution
RombBullet Barley prices
RombBullet Theoretical malt prices
RombBullet Scientific digest
RombBullet Business history
RombBullet Agenda
RombBullet News articles





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E-Malt.com Newsletter 30a
July 24 - July 26, 2017


Quote of the Week

Beer does not make itself properly by itself. It takes an element of mystery and of things that no one can understand.
Fritz Maytag

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Currency Rates


Base Currency: US Dollar
on July 26, 2017
Base Currency: Canadian Dollar
on July 26, 2017
      1 USD = 0.8579 EUR
1 USD = 0.7671 GBP
1 USD = 1.2507 CAD
1 USD = 1.2597 AUD
1 USD = 111.4400 JPY
1 USD = 3.1531 BRL
1 USD = 59.8185 RUB
1 USD = 6.7499 CNY
      1 CAD = 0.7994 USD
1 CAD = 0.6133 GBP
1 CAD = 0.6858 EUR
1 CAD = 1.0071 AUD
1 CAD = 89.0900 JPY
1 CAD = 2.5207 BRL
1 CAD = 47.9177 RUB
1 CAD = 5.3962 CNY

Currency Rates Chart


Equities of the Largest Breweries

Equities of the Largest Breweries

North America News
Brewery news USA: Overall beer market expected to decline 0.7% this year ...Click here
Brewery news USA, MN: Invictus Brewing Co. planning to break ground next month in Blaine ...Click here
Brewery news USA: Heineken’s Lagunitas acquires 20% stake in Michigan’s Short’s Brewing Co. ...Click here
Brewery news USA, WI: Milwaukee Brewing Company to break ground on its third brewery on July 25 ...Click here
Brewery news USA, GA: Chattabrewchee Southern Brewhouse preparing for launching this fall ...Click here
Brewery news USA, AL: Iron Hand Brewing coming to downtown Mobile this fall ...Click here
Brewery news USA, IL: Cary Ale House and Brewing Company wants to start brewing its own beer ...Click here
Brewery news USA, FL: Ivanhoe Park Brewing Company files paperwork with the City of Orlando ...Click here
Brewery news USA, HI: Kona Brewery selects partner to design and build its new brewery in Kailua-Kona ...Click here
World News
Brewery news Australia & Vietnam: AB InBev’s Australian unit interested in investing in Vietnam’s Sabeco and Habeco ...Click here
Brewery news Malaysia: Heineken Malaysia’s Q2 pre-tax profit inches up 2% ...Click here
Brewery news Nigeria: Guinness Nigeria starts receiving subscriptions for its 39.7 bln naira share sale ...Click here
Barley news EU: Barley yield estimate close to unchanged in MARS’ latest outlook ...Click here
Brewery news Brazil: Heineken to end distribution of products with Coca-Cola bottlers, use Kirin Brazil’s distribution routes for its products ...Click here
Brewery news Nigeria: Guinness Nigeria to use rights issue to help repay outstanding loan obligations ...Click here
Brewery news Japan: Kirin Brewery Co. to revamp the overseas version of its mainstay Ichiban Shibori beer ...Click here
Brewery news Australia: BrewDog exploring possible locations for its first brewery in Australia ...Click here
Brewery news South Korea: Domestic beer sales surpass those of imported beers in July ...Click here
Graph of the Week


Table of the Week

Russia Barley Supply & Demand


Table of the week.

Prices Evolution

Prices evolution

Barley Prices



Theoretical Malt Prices



Scientific Digest


COMPLEXITY OF BEER BITTERNESS

ABSTRACT
A UK research team developed a sensory bitterness lexicon to describe many types of differently hopped beers. With sensory PCA analysis, they concluded that beers low in hop bitter acids and polyphenols were described as having artificial, rounded, and diminishing bitterness. Conventionally hopped beers high in hop acids, e.g. alpha-acids, were rated as having a sharp and instant bitterness. While beers bittered with a blend of tetra and pre-isomerised iso-alpha-acid products were shown to have a smooth and diminishing bitterness. The bitterness of dry-hopped beers high in hop bitter acids and polyphenols was perceived as harsh and progressive.

Oladokun, O. et al: New insights into bitterness perception of beer. Lecture 34, EBC Congress, Slovenia 2017

Source: Barth Innovations

These Days in Business History


24 July
1847 - Richard M. Hoe patented the rotary type printing press, NYC
1938 - Instant coffee invented
1987 - IBM-PC DOS Version 3.3 (updated) released

25 July
1946 - 1st bikini is shown at a Paris fashion show
1978 - The world's first test-tube baby, Louise Joy Brown, was born in Lancashire, England
1984 - Cosmonaut Svetlana Savitskaya became 1st woman to walk in space

26 July
1656 - Rembrandt declares he is insolvent
1835 - 1st sugar cane plantation started in Hawaii
1908 - FBI founded


Agenda


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)
26-28: drink technology India 2017 (New Delhi, India)


November 2017:
22-23: Craft Beer Italy 2017 (Milan, Italy)


More events are available on site www.e-malt.com



News Articles


Brewery news USA: Overall beer market expected to decline 0.7% this year
Millennials aren't drinking enough beer to keep brands afloat in the United States, the Business Insider reported on July 24.

According to CNBC, Goldman Sachs downgraded both Boston Beer Company and Constellation Brand on the data that younger consumers aren't drinking as much alcohol as older generations, and the ones that do prefer wine and spirits.

"We view the shift in penetration and consumption trends as driven by a shift in preferences in the younger cohorts," Goldman Sachs Chief Analyst Freda Zhuo wrote.

Beer penetration fell 1% from 2016 to 2017 in the US market, while both wine and spirits stood unmoved, according to Nielsen ratings.

Goldman Sachs now expects the overall beer market in the US to decline 0.7% in 2017. It downgraded Boston Beer Company from neutral to sell and Constellation Brands from buy to neutral.


Brewery news USA, MN: Invictus Brewing Co. planning to break ground next month in Blaine
Invictus Brewing Co. plans to break ground next month on Blaine’s first brewery after the company received a long-awaited loan from the U.S. Small Business Administration, the Minneapolis Star Tribune reported on July 23.

The 8,200-square-foot space will be built at 2025 105th Ave. NE, just north of the National Sports Center. The brewery will include two patios and a kitchen leased to a local restaurateur.

Previn Solberg is a co-owner of Invictus Brewing and a head of an investor group along with nine other families. He said the company is working with the city on final permit details but is aiming to break ground simultaneously with a separate renovation project for the stretch of 105th Avenue near the brewery in August.

The brewery will include two patios — one large seating area for the public and a smaller one, connected to a meeting room by a garage door that the brewery will rent out for customers along with the meeting room. The meeting room and small patio can also act as overflow space when the brewery is busy, Solberg said.

The kitchen space will be leased out to the Tipsy Steer, whose food Solberg classified as “quality American food that pairs well with ...More info on site


Brewery news USA: Heineken’s Lagunitas acquires 20% stake in Michigan’s Short’s Brewing Co.
Short's Brewing Co., which until last year used the slogan "Michigan only, Michigan forever," announced on July 26 that it sold a 19.99% stake to California-based Lagunitas Brewing Co., the Detroit Free Press reported.

But since Lagunitas was recently bought out by Heineken, that chunk of the celebrated Michigan brewery is actually in the hands of big beer.

Short's, which is based in Bellaire and Elk Rapids – and known for such beers as fruit ale Soft Parade and IPA Huma Lupa Licious – last year expanded distribution beyond Michigan to several nearby states.

Short's founder, Joe Short, said in the news release on July 26 that he's found success surrounding himself with "the best people," and that the Lagunitas deal is one of many strategic decisions to ensure the brewery's continued success.

"This partnership with Lagunitas is just another part of evolution in the cycle of our dynamic and growing business," he said in the news release, which doesn't mention Heineken.

The partnership comes as many other craft breweries, such as Lagunitas, have been purchased by large, mass-production brewing companies. Short's deal with Heineken is only for a minority stake, so in the eyes of its peers in the national Brewers ...More info on site


Brewery news USA, WI: Milwaukee Brewing Company to break ground on its third brewery on July 25
Milwaukee Brewing Company is set to break ground in the afternoon of July 25 on its third brewery location at the former Pabst Distribution Center in downtown Milwaukee, WTMJ-TV reported. The expansion signals the next chapter in Milwaukee Brewing's dynamic growth in the craft brewing industry.

Once complete, the 50,000-square foot brewery will include a tasting room, retail store, a rooftop patio-bar and dramatic event space overlooking the new Arena District. The additional space and new Wisconsin sourced machinery will allow Milwaukee Brewing Company to brew and package up to 50,000 barrels a year. The company will still continue to produce beer at its facility near 2nd and Bruce. The project aims to be in operations the first half of 2018.


Brewery news USA, GA: Chattabrewchee Southern Brewhouse preparing for launching this fall
An all-American undertaking is underway in West Point, as the owners of Chattabrewchee Southern Brewhouse prepare to open their doors this fall, LaGrange Daily News reported on July 21.

The West Point brewery is owned by a military couple who decided to follow their dreams and open a local business just down the road from where brewery co-owner Kathy Denehy grew up.

They are getting the brewery started with the help of local firefighter and brew master Barry Stephens who will brew the craft beer in Michigan made steel brewing equipment.

Even the preparation for opening day has been fun for the group.

“On just a very personal level, I’ve enjoyed the creative process of creating the brand and the theme and really trying to be consistent with the feel of the business,” said Denehy, who also serves as Judge Advocate for the U.S. Army. “I have enjoyed that personally, and on a bigger scale, I’m looking forward to this opportunity to give something back to the community — to become a part of the community. That is a big focus for us, not just to be a business, not just to make money. We want to be part of the community. We want ...More info on site


Brewery news USA, AL: Iron Hand Brewing coming to downtown Mobile this fall
A new brewing company, Iron Hand Brewing, will be coming to downtown Mobile this fall, WPMI Local 15 News reported on July 25.

Rebecca Williams and Ben Ross have leased the ground floor of a chapel built in 1927 in the DeTonti Square historic district.

"My husband and I fell in love with this location when we first started looking for a building for the brewpub," said Williams. "The neighborhood is amazing, and the people couldn't be friendlier!"

In addition to craft beers, the brewpub will feature American pub fare of burgers and fries, but will also offer British pub fare, such as bangers and mash.


Brewery news USA, IL: Cary Ale House and Brewing Company wants to start brewing its own beer
People may soon be able to sip locally brewed beer in Cary, the Northwest Herald reported on July 22.

Cary Ale House and Brewing Company wants to start brewing its own beer and plans to expand to a vacant storefront adjacent to the restaurant. The restaurant occupies half the retail space in the building located at 200 to 208 W. Main St. More than $215,000 worth of renovations are planned, which includes construction and equipment costs, according to village documents.

Restaurant owners Chris Panagakis and Dustin Davies are seeking a $60,000 loan from the village’s revolving loan fund in order to partially contribute to the project, which they said will help make their restaurant a destination spot.

Revolving loans are incentive tools that municipalities can use to help new or existing businesses with projects that will create jobs by offering a low-interest loan. Cary Ale House anticipates adding between five and seven jobs after the expansion, according to village documents.

Since Panagakis and Davies opened the gastropub in 2015, they had planned to include a brewery, but renovation costs on the existing building were more than expected so the project was pushed back, according to village documents. The restaurant has served locally brewed beer ...More info on site


Brewery news USA, FL: Ivanhoe Park Brewing Company files paperwork with the City of Orlando
Paperwork filed with the City of Orlando reveals a new brewery - Ivanhoe Park Brewing Company - could be opening in a newly rehabbed warehouse at 1300 Alden Road in Ivanhoe Village, Bungalower reported on July 25.

The 4,000 SF warehouse was recently renovated by Crossman and Co. The permit application proposes to convert the building into a micro-brewery and tasting room but requires a variance due to its proximity to Lake Highland Prep ball fields and City Beautiful Church. The application happened to include a letter of support from City Beautiful Church.

The plans call for the addition of 1,200 SF of covered outdoor seating.

The effort is being led by Glenn Closson, who served as the Director of Finance and Operations at Beach City Brewery in Orange County, California.


Brewery news USA, HI: Kona Brewery selects partner to design and build its new brewery in Kailua-Kona
St. Louis-based ICC Turnkey has been selected to provide engineering, design and build services for a $23 million Kona Brewery in Kailua-Kona, Hawaii, St. Louis Business Journal reported on July 25.

“In looking for a partner to design and build our new Kona brewery, we wanted to uphold the strong ethos of the Kona brand in creating a highly efficient and sustainable brewery that is unmatched in innovation,” said Scott Mennen, chief operating officer of Craft Brew Alliance.

Kona Brewing is part of the Craft Brew Alliance, a leading craft brewing company headquartered in Portland, Oregon. Kona joined the CBA in 2010, according to the company’s website.

The new brewery will give Kona the ability to brew up to 100,000 barrels of beer per year, greatly increasing its production capacity, the company said. The 30,000-square-foot brewery will feature a high-efficiency brewing system and canning line.

“ICC Turnkey is excited to work alongside CBA and Kona Brewing Company to develop a highly efficient, fit-for-purpose, and well-designed brewery that will be part of the Kona community for years to come,” Alex Alexandrov, president of ICC Turnkey, said.

The project also includes a state-of-the-art wastewater treatment plant, rooftop solar panels, and a biogas system that will generate energy ...More info on site


Brewery newsAustralia & Vietnam: AB InBev’s Australian unit interested in investing in Vietnam’s Sabeco and Habeco
Vietnam said Australia's Carlton & United Breweries (CUB), part of the world's largest brewer Anheuser-Busch InBev, has expressed its interest in becoming a strategic ...More info on site


Brewery newsMalaysia: Heineken Malaysia’s Q2 pre-tax profit inches up 2%
Heineken Malaysia Bhd's second quarter pre-tax profits ended June 2017 inched up 2 per cent to RM80.9 million from RM79.6 million, despite a 12 ...More info on site


Brewery news Nigeria: Guinness Nigeria starts receiving subscriptions for its 39.7 bln naira share sale
Guinness Nigeria has started receiving subscriptions for its 39.70 billion naira ($126 mln) share sale to existing shareholders, which will end in five weeks' time, Reuters reporting citing company officials on July 24.

The beer maker, the local unit of the world's leading spirit maker Diageo, said in a statement shareholders can buy five new shares from the company for every 11 held, at 58 naira each, before the offer closes on August 30.

The company, which is 54 percent owned by Diageo, reported its first annual loss in 30 years in September last year, triggering the rights issue.

Its British-based parent has said it was willing to take up its rights in the share issue to maintain its shareholding.

Guinness Nigeria shares, which have fallen 20.4 percent so far this year, traded flat on July 24 at 65.10 naira on the Lagos bourse, a 12 percent premium to the rights price.

The stock fell 31 percent last year.

Investors who do not currently hold Guinness shares but want to participate in the offer can do so by buying the rights of an existing shareholders who is unable to subscribe to the offer through the stock market, it said.


Barley newsEU: Barley yield estimate close to unchanged in MARS’ latest outlook
The European Union's crop-monitoring service sharply lowered its yield forecast for this year's EU maize harvest, citing the expected impact of heatwaves and low ...More info on site


Brewery news Brazil: Heineken to end distribution of products with Coca-Cola bottlers, use Kirin Brazil’s distribution routes for its products
Mexico's Coca-Cola Femsa, the world's largest Coke bottler, said on July 24 it is poised to lose a key distribution contract in Brazil, sending its shares down 5 percent, even as it reported an 11.5 percent jump in quarterly net profit, Reuters reported.

Coke Femsa said Dutch brewer Heineken, which holds a stake in its parent company Femsa, had told the company it would end its distribution of products with bottlers of the Coca-Cola system in Brazil from Oct. 31.

Shares in Coke Femsa slumped 5.25 percent to 151.71 pesos as of 1 p.m. local time, and were the biggest drag on Mexico's benchmark stock index.

It was not clear exactly when the distribution contract with Heineken will end, said Hector Trevino, chief financial officer at Coca-Cola Femsa.

Heineken maintains the contract can be terminated with six months' notice, but Coke Femsa disagrees, Trevino said.

"We firmly believe that the contract terminates in 2022," he said.

Heineken acquired the Brazilian breweries of Japan's Kirin Holdings Co Ltd earlier this year. The Dutch company will use Kirin Brazil's distribution routes to bring Heineken products to market in the region going forward, Heineken spokesman John-Paul Schuirink said in a statement.

"As Heineken, Femsa and the Brazilian Coca-Cola bottlers are ...More info on site


Brewery news Nigeria: Guinness Nigeria to use rights issue to help repay outstanding loan obligations
Guinness Nigeria Plc has revealed its plans for N39,700,688,598 rights issue which opened on, Monday, July 24, saying it will be utilised to help repay outstanding loan obligations, and improve the operational and financial flexibility, WorldStage reported.

Guinness Nigeria officials were at the Nigerian Stock Exchange on July 25 to present a detailed breakdown of the offer of 684.5 million ordinary shares to existing shareholders to raise N39,700,688,598 .

At the fact behind the offer which attracted a cross section of stakeholders including: shareholders, fund/portfolio managers, regulators, auditors, issuing houses and registrars, the company reiterated that the offer will close on Wednesday 30 August, 2017, and has an issue price of N58 per share.

The offer is in the ratio of five new ordinary shares for every eleven ordinary shares held by shareholders whose names appeared on the register of members of the company at the close of business on Wednesday, 15 March, 2017.

At its Extra-ordinary General Meeting in January 2017, shareholders of the company had authorized the Board of Directors to proceed with the Issue.

Peter Ndegwa, MD of Guinness Nigeria Plc explained that the Rights Issue, already approved by the Securities and Exchange Commission and Nigerian Stock Exchange, will allow ...More info on site


Brewery news Japan: Kirin Brewery Co. to revamp the overseas version of its mainstay Ichiban Shibori beer
Kirin Brewery Co. said on July 24 it will revamp Kirin Ichiban, the overseas version of its mainstay Ichiban Shibori beer, The Japan Times reported.

In line with the renewal in June of Ichiban Shibori, Kirin Ichiban will be made less bitter and tastier, the unit of Kirin Holdings Co. said. It will also revamp the product’s packaging.

The move is designed to expand overseas sales of beer products under the Kirin brand by 50 percent from 2015 by 2020 — the 30th anniversary of Ichiban Shibori’s sales launch.

Exports from Japan of the new Kirin Ichiban product will begin next month and shipment from overseas production bases will start in December.

The beer is currently sold in 40 countries and regions.

Kirin will “promote Kirin Ichiban in more markets” as the anniversary approaches, a senior marketing official said.


Brewery news Australia: BrewDog exploring possible locations for its first brewery in Australia
BrewDog has set its sights on establishing a brewing facility in Australia, insider.co.uk reported on July 25.

The Ellon, UK-based brewer, which sold a 22 per cent stake in the business for £213 mln to US-based private equity group TSG Consumer Partners in April, has appointed in-house staffer Zarah Prior to lead its Australian business.

Prior, an Australian, was previously ‘Head of People’ at BrewDog's Ellon headquarters.

BrewDog said it is currently exploring “possible locations” for a new brewery facility in Australia, with initial searches focused on the Brisbane and Newcastle areas.

The brewer said it is “open” to re-developing an existing industrial site with a 2,000 to 4,000 square meter (21,500 sq ft – 43,000 sq ft) built-up facility or for land capable of housing a new-build facility “of that size with expansion capabilities in the future”.

Commenting on the plans for Australia, Prior said: “Our Australian Equity Punk community has been crying out for BrewDog to set up shop closer to home, so we are excited to finally be making that happen.

“We’ve thrived on the loyalty that our shareholders and peers have shown over the past 10 years, and we can’t wait to deliver brewery-fresh beers to our Equity Punks and BrewDog fans ...More info on site


Brewery news South Korea: Domestic beer sales surpass those of imported beers in July
South Korean breweries have been on a roll as of late, surpassing sales of imported beers after steady growth over the past three months, according to one of the biggest supermarket chains in the country, The Korea Bizwire reports.

HomePlus said on July 24 sales of domestically brewed beers accounted for over 50 percent of all beer sales, with the supermarket giant’s original products Haeundae, Gangseo, and Dalseo beer experiencing a drastic surge in sales in recent weeks.

During the first three weeks of July, sales of Gangseo Beer and Dalseo Beer increased by 20.1 and 27.3 percent, respectively, compared to the previous month, with HomePlus planning to sell local offerings from small and medium sized brewers around the country during the summer.

“Considering the sales of popular beers including Cass, Hite and Kloud rose less than 10 percent, it’s true that the three locally brewed beers helped boost total beer sales,” a HomePlus official explained.

Earlier this week, retail giant Lotte Mart reported increased sales of locally sourced vegetable products, signaling a new preference among South Korean consumers for locally sourced food and beverage products.



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