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E-Malt.com Newsletter 47a
November 20 - November 22, 2017
Quote of the Week
It's kind of fun to do the impossible.
Walt Disney
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Currency Rates
Base Currency: US Dollar
on November 22, 2017 |
Base Currency: Canadian Dollar
on November 22, 2017 |
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1 USD = 0.8520 EUR
1 USD = 0.7551 GBP
1 USD = 1.2795 CAD
1 USD = 1.3220 AUD
1 USD = 112.4800 JPY
1 USD = 3.2549 BRL
1 USD = 59.4604 RUB
1 USD = 6.6324 CNY
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1 CAD = 0.7814 USD
1 CAD = 0.5901 GBP
1 CAD = 0.6658 EUR
1 CAD = 1.0330 AUD
1 CAD = 87.8900 JPY
1 CAD = 2.5435 BRL
1 CAD = 46.3143 RUB
1 CAD = 5.1829 CNY
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Currency Rates Chart
Equities of the Largest Breweries
Canada: 2017-18 barley production expected to decrease by 17%
...Click here
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USA, AK: Alaska’s craft beer consumption up 35% since 2013
...Click here
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USA, OK: Lazy Circle Brewing officially launches in Norman
...Click here
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Canada, BC: Sooke Brewing Company to open its doors in Sooke on November 20th
...Click here
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Canada, NB: AKA Beer debuts its first beers in Bathurst
...Click here
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USA, IN: Teays River Brewing & Public House to open in Lafayette by mid-January
...Click here
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USA, CA: AB InBev’s Golden Road Brewing opening an innovation brewery in Anaheim
...Click here
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France: Malt output totals 1.5 mln tonnes last year
...Click here
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Russia: January-October beer production declines by 3.8%
...Click here
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Vietnam: Premium beer consumption rockets to 10 mln hl last year - report
...Click here
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The Philippines: San Miguel Corporation to raise $3 bln from sale of 30% stake in its food and beverage unit
...Click here
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UK: Government decides to freeze duties on beer and other drinks
...Click here
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Malaysia: Heineken Malaysia’s Q3 net profit totals RM65.87 mln
...Click here
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Romania: United Romanian Breweries Bereprod posts record production figure for January-October
...Click here
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Angola: New brewery to produce Portuguese beer Sagres in Angola
...Click here
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Switzerland: Swiss brewers enjoy higher sales in season 2016/17
...Click here
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Australia: GrainCorp's malting barley business performs strongly due to US demand for craft beer
...Click here
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Vietnam: Sabeco to hold stake sale roadshows in Singapore and London
...Click here
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UK: Barley consumption by feed sector up 42% in Q1 2017/18
...Click here
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The Philippines: San Miguel Brewery seeks investor’s consent to amend trust agreement of all outstanding bonds
...Click here
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Myanmar: Up to 30% of all beer sold in Myanmar is illegal - report
...Click here
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UK: Distribution in craft beer ‘broken’ and ‘needs fixing’
...Click here
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South Korea: Alcoholic beverages production declines in 2016
...Click here
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Graph of the Week
Table of the Week
US Hop Imports
Prices Evolution
Barley Prices
Theoretical Malt Prices
Scientific Digest
DO YOU KNOW THE HOP CREEP?
ABSTRACT
Most brewers have seen the after fermentation of
dry hopped beers in the presence of yeast.
This phenomenon is not well understood but documented
in old British literature; the last reference goes back to
1941 where maltase activity was evidenced in dry hopped
casked ales. These U.S. researchers discovered that the
production of fermentable sugars, glucose and maltose in
dry hopped beer in the presence of yeast correlates with
increased temperature and dry hop exposure time. Enzyme
activities were found for amyloglucosidase and alpha and
beta amylases. Despite the low enzyme activites, significant
changes in residual extract, ABV and CO2 production can
occur in dry hopped beers. How should we be surprised?
Everybody likes sweet stuff!
REFERENCES:
Kirkpatrick, K.: Investigating Enzymatic Power of hops, Poster 35
Source: Barth Innovations
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These Days in Business History
20 November
1923 - Garrett Morgan invents & patents traffic signal
1959 - U.N. adopts Universal Declaration of Children's Rights
1984 - McDonald's made its 50 billionth hamburger
1985 - Microsoft Windows 1.0 is released
21 November
1877 - Tom Edison announces his "talking machine" invention (phonograph)
1930 - 1st commercial crossing of Pacific by plane (China Clipper)
1977 - 1st flight of Concorde, London to New York
22 November
1906 - International Radio Telecommunications Com adopts "SOS" as new call for help
1927 - 1st snowmobile patent granted to Carl Eliason (Sayner Wisc)
1954 - Humane Society forms
2005 - Angela Merkel becomes the first female Chancellor of Germany
Agenda
November 2017:
11: International MicroBrew Symposium 2017 (Munich, Germany)
22-23: Craft Beer Italy 2017 (Milan, Italy)
January 2018:
26-28: Finest Spirits 2018 (Munich, Germany)
February 2018:
02-04: Brau Kunst Live 2018 (Munich, Germany)
09-12: HoReCa 2018 (Athens, Greece)
17-20: Beer Attraction 2018 (Rimini, Italy)
20-24: Great British Beer Festival Winter 2018 (Norwich, UK)
27-01 March: Beviale Moscow 2018 (Moscow, Russia)
March 2018:
05-07: 105th Brewing and Engineering Conference (Munich, Germany)
06-08: Expo Antad & Alimentaria Mexico 2018 (Mexico City, Mexico)
07-10: Festival Brasileiro de Cerveja 2018 (Blumenau, Brazil)
08-10: Alltech Craft Brews & Food Fair 2018 (Dublin, Ireland)
14-15: BeerX 2018 (Sheffield, UK)
19-22: IBD Asia Pacific Convention 2018 (Wellington, New Zealand)
April 2018:
08-12: International Malting and Brewing Symposium "13th Trends in Brewing" (Ghent, Belgium)
13-14: Helsinki Beer Festival 2018 (Helsinki, Finland)
28-29: Zythos Beer Festival 2018 (Leuven, Belgium)
30-03 May: Craft Brewers Conference & BrewExpo America 2018 (Nashville, USA)
May 2018:
22-24: Beer 2018 (Sochi, Russia)
June 2018:
06-09: Mondial de la Biere 2018 (Montreal, Canada)
29-01 July: Mondial de la Biere 2018 (Paris, France)
August 2018:
03-05: The 22nd International Berlin Beer Festival (Berlin, Germany)
08-11: Vietfood & Beverage 2018 (Ho Chi Minh City, Vietnam)
10-11: Beervana 2018 (Wellington, New Zealand)
12-15: Brewing Summit 2018 (San Diego, USA)
September 2018:
04-06: food & drink technology Africa (fdt Africa) (Johannesburg, South Africa)
12-14: 6th International Symposium for Young Scientists and Technologists in Malting, Brewing and Distilling (Bittburg/Trier, Germany)
October 2018:
23-26: China Brew China Beverage 2018 (Shanghai, China)
24-26: drink technology India 2018 (Mumbai, India)
November 2018:
13-15: Brau Beviale 2018 (Nuremberg, Germany)
More events are available on site e-malt.com
News Articles
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Canada: 2017-18 barley production expected to decrease by 17%
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For 2017-18, Canada’s barley production is estimated to decrease 17% to a near-record low of 7.3 mln tonnes due to the low area seeded
...More info on site
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USA, AK: Alaska’s craft beer consumption up 35% since 2013
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Overall beer consumption in Alaska has declined, but Alaskans’ consumption of craft beer increased 35 percent since 2013, according to a new report from the Alaska Department of Labor and Workforce Development.
The report also says demand for craft beer has recession-proofed Alaska’s breweries as the amount of craft beer produced annually has doubled between 2007 and 2017, from 454,000 gallons to 919,000 gallons.
HooDoo Brewing Co. owner Bobby Wilken said business has been steady despite the recession.
“A big part of the success of local craft beer is the beer culture that is growing in town, which is bolstered by bars and restaurants that have responded to customer demand and made local craft beer a priority. This is huge for the industry and is one of those perfect situations where everyone wins,” Wilken said in an email.
HooDoo’s beer production has grown since opening on Halloween 2012, Wilken said. Wilken declined to share the production numbers, but he did offer insight into how his business has grown to meet demand.
When it first opened, HooDoo could not be found at any bar in town.
“At first, we were on tap nowhere else in town. We were just focused on our taproom.
...More info on site
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USA, OK: Lazy Circle Brewing officially launches in Norman
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Norman, OK has taken another step toward becoming a craft-beer hotbed, the Norman Transcript reported on November 16.
Lazy Circle Brewing, 422 E Main St., owned by Stephen Swanson and his wife, Holly, along with Holly’s brother, Stephen Basey, officially opened for business on November 16.
Lazy Circle joins 405 Brewing Co., 1716 Topeka St., as Norman’s second microbrewery with on-site tap rooms.
“We’re very excited,” Swanson said. “It will be the first time people can try beer from two different breweries in Norman. People can go try [405’s] beer and then come try ours.”
When Gov. Mary Fallin signed Senate Bill 424 in 2016, it opened the door for brewers to sell high-point beer to consumers on the premises, in conjunction with Norman ordinance and zoning amendments passed in January.
“The more local breweries [Norman] has, the more the community will thrive,” 405 co-founder Jonathan Stapleton said.
Stapleton and 405 co-founder Trae Carson said it’s not 405 vs. Lazy Circle, but rather 405 alongside Lazy Circle.
“We’re all a part of the brewing community,” Carson said. “We all want to do the same thing: make a craft product. By working together, we can educate more consumers and reach more people. They’ve had to go through
...More info on site
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Canada, BC: Sooke Brewing Company to open its doors in Sooke on November 20th
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A brewery and taproom that has been in the works for more than two years has announced it will be launching this week in Sooke, BC.
As reported by the Sooke New Mirror, Sooke Brewing Company will be opening its doors to the public on Monday November 20th. The C$2 million facility features a brewhouse, retail store, and 25-seat taproom, with a 30-seat patio to be opened next summer.
Founded by local businessman Carl Scott and four partners, Sooke will be opening with a line-up of four beers including Vienna Lager (5% abv), IPA (7% abv), Oatmeal Stout (4% abv), and Belgian Blonde (6% abv), all available by the glass, in flights, and in growlers to go.
Sooke Brewing will be open at 11:00 AM daily, closing at 7:00 PM Sunday to Wednesday, and 10:00 PM Thursday to Saturday.
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Canada, NB: AKA Beer debuts its first beers in Bathurst
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A new family-run nanobrewery based out of a popular pub in Bathurst, New Brunswick has announced the debut of its first beer, Canadian Beer News reported.
AKA Beer has been founded by brothers Adam and Kyle Hodnett and their father Andy – with their initials forming the brewery name – in partnership with Michael Petrovici, owner of Au Bootlegger, a bar located at 100 Main St. in downtown Bathurst.
The first beer to be brewed on the half-barrel system is Prohibition Ale AKA Bootlegger’s Brew, an amber ale that is available exclusively at Au Bootlegger. Future beers are planned to be developed based on input from local customers, as well as locally sourced ingredients.
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USA, IN: Teays River Brewing & Public House to open in Lafayette by mid-January
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A new brewery will open in Lafayette by the middle of January 2018, the Journal & Courier reported on November 15.
Teays River Brewing & Public House will open at 3000 Ninth St., Lafayette, a location vacated by Walt’s Other Pub roughly five years ago.
The name, Teays River, is a nod to the ancient river that used to run through Lafayette and now serves as the city’s aquifer, providing drinking water and, more importantly, water with which to brew beer.
“It’s a tribute to when the Teays used to flow through the area thousands, even millions, of years ago, before the glaciers advanced and created the Ohio River,” Jason Cook, co-owner and brewer of Teays River, said. “We’re really focused on community and our local ties. The name is our way of bringing that in.”
Cook said he’s been brewing at home for about eight years but the dream of owning a brewery only materialized in the past year. Together with his friends, restaurant industry veterans Jon Hodge and Jeff Burnworth, Cook said they put together a plan.
The establishment, Cook continued, will offer a little bit of everything. There will be a taproom with a casual feel, much like the People’s Brewing
...More info on site
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USA, CA: AB InBev’s Golden Road Brewing opening an innovation brewery in Anaheim
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At the end of the month, Golden Road Brewing is opening a new sprawling campus in Anaheim that includes an “innovation brewery,” a full-service restaurant and an outsized beer garden with all the trimmings, the Los Angeles Times reported on November 15.
First purchased in 2015, before Golden Road was acquired by Anheuser-Busch InBev, the space was to be the long-term home of Golden Road’s production facility. But after the acquisition, the course changed. Brewery co-founder Mig Gill said the “partnership” with AB InBev allowed GRB to expand its production capabilities without investing in an all-new brewing facility, and the Anaheim location was instead re-envisioned as a playground for both drinkers and brewers.
After years in development, and a major pivot in design, phase one of the expansion opens this month with a pub featuring 40 taps of GRB brews, a kitchen offering beer-friendly bites, and a patio that’s just a fraction of the planned outdoor drinking space across from Angel Stadium.
“We wanted to take our favorite parts of the Atwater brewery — the lively vibe of people and kids and dogs on the lawn — and bring it to this space,” Gill said.
At the center of the space is Golden Road’s
...More info on site
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France: Malt output totals 1.5 mln tonnes last year
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In 2016/17, 1.9 mln ha of barley were harvested in France, which represents 20% of the nation’s all grain-seeded area, Passion Cereales said in
...More info on site
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Russia: January-October beer production declines by 3.8%
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Cold weather this spring and summer together with a ban on production and sale of beer in PET bottles of more than 1.5
...More info on site
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Vietnam: Premium beer consumption rockets to 10 mln hl last year - report
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A storm is brewing for discount brands selling lower-quality products as Vietnamese beer drinkers are increasingly picking up premium and super premium products from
...More info on site
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The Philippines: San Miguel Corporation to raise $3 bln from sale of 30% stake in its food and beverage unit
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Diversified conglomerate San Miguel Corporation (SMC) is planning to raise $3 billion from the sale of as much as 30 percent of its giant
...More info on site
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UK: Government decides to freeze duties on beer and other drinks
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A duty freeze on wine, spirits, beer and ciders other than high-strength, low-quality alcohol has been welcomed as a “win win” for consumers, producers
...More info on site
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Malaysia: Heineken Malaysia’s Q3 net profit totals RM65.87 mln
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Heineken Malaysia Bhd posted a net profit of RM65.87 million for the third quarter ended Sept 30, 2017, (Q3) with RM509.6 million in revenue,
...More info on site
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Romania: United Romanian Breweries Bereprod posts record production figure for January-October
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United Romanian Breweries Bereprod (URBB) has posted a record production figure exceeding 2 million hectolitres for the period January-October 2017, representing a 10 percent increase year-on-year, the Business Review reported on November 20.
During the reporting period, the consolidated turnover of the URBB group increased by 12 percent year-on-year to RON 650 million (gross).
The figure recorded by URBB comes against the background the overall growth of the national beer market, estimated at 2-3 percent, according to the Romanian Brewers Association.
“Our achievement this year will serve as a point of reference for the future, given that in 2017, we made considerable investments that resulted in an excellent market response, reflected positively in the company’s financial performance. This strong growth, over three times bigger than the market pace, was stimulated by several factors, the most important of which being the improvement of our products, exports and, most of all, investments made this year,” Shachar Shaine, URBB president said.
One of the pillars of investment for URBB is represented by the increase of its annual production capacity from 2.1 million hectolitres in 2016 to 2.4 million currently. The company’s investment budget for 2017 stood at over EUR 10 million. The company invested EUR 2 million,
...More info on site
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Angola: New brewery to produce Portuguese beer Sagres in Angola
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Sociedade de Distribuição de Bebidas de Angola (Sodiba), which has as its shareholders the businesswoman Isabel dos Santos and her husband, Sindika Dokolo, has invested US$85 million in the construction of a brewery with capacity to produce 144 million litres per year in two filling lines, the Angolan press reported.
One of the two filling lines is intended for the production of Portuguese beer Sagres, under an agreement reached in February this year with Portugal’s Sociedade Central de Cervejas (Centralcer) and under the supervision of its main shareholder, the Heineken Group.
The businesswoman, who on November 16 was removed as chair of the Board of Directors of state oil company Sonangol, attended the inauguration of the plant on the outskirts of the Angolan capital.
Sagres will be the first Portuguese beer to be produced in Angola, and the product manufactured will have the same image as its namesake beer brand that is available on the Portuguese market.
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Switzerland: Swiss brewers enjoy higher sales in season 2016/17
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Thanks to record high temperatures in June, the Swiss beer industry managed to close the 2016/17 brewing season with a very small decline in
...More info on site
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Australia: GrainCorp's malting barley business performs strongly due to US demand for craft beer
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GrainCorp's profits have surged off the back of last year's record-breaking grain crop and strong United States demand for craft beer, ABC Online reported on November 21.
The Australian Stock Exchange-listed company said revenue surged as huge stocks of grain moved through its storage, handling and export facilities.
The east-coast grain handler's profits more than doubled, from A$53 million last year to A$142 million by September 30, 2017.
GrainCorp's malting barley business has been a strong performer recently, and continued growth in the craft beer market saw that success continue this year.
"To produce a barrel of an IPA takes anywhere between two or three times the amount of malt that would go into a standard light pilsner" chief executive officer (CEO) Mark Palmquist said.
"It's not just the increased consumption of beer, but the added use of malt to produce these types of craft beers," he said.
The company is eyeing Scotland as the next big source of malt demand.
"That market is changing from a blended scotch whiskey to a single malt, paralleling the craft beer market.
"That is even if the consumption isn't going up — the single malt uses 100 per cent malt inside of the product, whereas blended products will use other carbohydrates
...More info on site
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Vietnam: Sabeco to hold stake sale roadshows in Singapore and London
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Sabeco, Vietnam’s biggest beer firm, will hold roadshows in Singapore and London on the government’s plan to sell a stake, the country’s trade ministry said in a statement on November 21, Reuters reported.
The government owns 89.6 percent in Sabeco, formally known as the Saigon Beer Alcohol Beverage Corp, and wants to fully divest from the company.
The Singapore roadshow will be held on November 24 while the London one will be held on Nov. 27.
The trade ministry did not say how much the government would sell in the upcoming stake sale. It has previously stated that it aims to complete a sale in December.
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UK: Barley consumption by feed sector up 42% in Q1 2017/18
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With HMR&C recently releasing trade data for September, we can now take a look at how UK barley consumption and trade has performed in the first quarter of the 2017/18 marketing season (Jul-June), AHDB reported on November 17.
The impressive change is the rebound (42%) in barley consumption by the commercial feed sector – likely driven by price and generally better specific weights on a year ago. The Early Balance Sheet forecasts put total animal feed demand for the full season 3% higher than 2016/17. As such, commercial feed demand will be keenly watched to see if the growth seen in the first quarter persists.
The UK’s barley exports declined by 4% over the reporting period, while total barley usage by brewers, maltsters, and distillers grew by 4%.
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The Philippines: San Miguel Brewery seeks investor’s consent to amend trust agreement of all outstanding bonds
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San Miguel Brewery, Inc. (SMB) is seeking the consent of investors to amend the trust agreement of all its outstanding bonds, the CNN Philippines reported on November 21.
In a statement on November 21, SMB said it wanted to align the terms to "remain consistent with their original intended purpose that SMB continues to be under the effective control of its parent company, San Miguel Corp."
The Ramon Ang-led conglomerate is currently undergoing a corporate reorganization. It is looking to move all its food and beverage businesses under one entity: San Miguel Pure Foods Company, Inc., to be later renamed to San Miguel Food and Beverage, Inc.
To encourage investors to participate in the consent solicitation, they will receive P1.25 for every P1,000 of the principal amount of the bonds they hold for every validly executed form.
The consent solicitation begins on November 22; it ends on December 14. The forms will be sent to bondholders. These are also available on SMB's website.
The covered bonds include the 10.5% Series C Bonds issued in 2009 and due 2019; the 5.93% Series E Bonds issued 2012 and due 2019; and the 6.6% Series F Bonds issued 2012 and due 2022.
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Myanmar: Up to 30% of all beer sold in Myanmar is illegal - report
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Global research firm Euromonitor International released on November 20 its independent study on the prevalence of the illicit trade of beer in Myanmar. In a country which has an import ban of beer, up to 30% of all beer sold is illegal, a size of nearly 1 million hectolitres in 2016. Of this, 96% is beer that is smuggled across borders by land or boat. Based on the research which included store checks across 4 cities, 95% of illicit beer is well-known, mainstream Thai brands.
The research firm estimates the loss of tax revenue for the government caused by the illicit trade of beer as 48 - 52 million USD in 2016. This is the amount which could be earned by the government if legitimate beer producers in Myanmar could instead make up the volume.
Euromonitor has unprecedented experience quantifying illicit trade and understanding its drivers, with reports produced in more than 30 markets to date. Specifically, research findings in Myanmar suggest that affordability is the key driver for consumption of smuggled beer, which is on average about 35% cheaper than locally produced beer for a 330ml can, based on store check findings.
Commenting on the report, a spokesperson from the Brewers Association
...More info on site
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UK: Distribution in craft beer ‘broken’ and ‘needs fixing’
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The warehouse model employed by most beer distributors in the UK is “broken” and should be “done a completely different way”, according to one of the UK’s leading online retailers and wholesale suppliers, The Morning Advertiser reported on November 20.
In an interview with The Morning Advertiser (MA), Eebria co-founder and CEO David Jackson said the tied pub and warehouse model “makes it very hard for a large distributor to handle any of the craft brewers in the country”, and called on pub companies to work with more distributors to get better beer into UK pubs.
“When we saw how distribution in craft beer worked, we knew it was broken and it needed fixing and should be done a completely different way,” he said. “Fundamentally, the whole warehouse model is messed up because it makes it very hard for a large distributor to handle many of the craft brewers in the country.
“When you take a distributor with 15 to 20 depots around the country, and a craft brewery that is producing 20 to 25 kegs in a batch, if that distributor wants to take it they have to take all of it. How
...More info on site
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South Korea: Alcoholic beverages production declines in 2016
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South Korea’s output of alcoholic beverages decreased in 2016 for the first time in three years, The Korea Herald reported on November 19.
Total production of alcoholic beverages, excluding imported ones, inched down 3.3 percent year-on-year to 368 million kiloliters last year, according to the National Tax Service (NTS) data.
The data showed that 53.8 percent of the annual output was beer, followed by soju - a traditional Korean rice-based alcohol - and rice wine.
The production of alcoholic beverages had increased starting in 2013, before the latest contraction, mainly on the back of consistent demand for soju and rice wine.
The NTS released the data just ahead of the publication of its annual report.
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