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E-Malt.com Newsletter 34b
August 23 - August 26, 2018
Quote of the Week
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Currency Rates
Base Currency: US Dollar
on August 24, 2018 |
Base Currency: Canadian Dollar
on August 24, 2018 |
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1 USD = 0.8652 EUR
1 USD = 0.7780 GBP
1 USD = 1.3053 CAD
1 USD = 1.3742 AUD
1 USD = 111.0000 JPY
1 USD = 4.0661 BRL
1 USD = 68.5259 RUB
1 USD = 6.8701 CNY
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1 CAD = 0.7660 USD
1 CAD = 0.5960 GBP
1 CAD = 0.6627 EUR
1 CAD = 1.0526 AUD
1 CAD = 85.0300 JPY
1 CAD = 3.1147 BRL
1 CAD = 52.2184 RUB
1 CAD = 5.2625 CNY
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Currency Rates Chart
Equities of the Largest Breweries
Canada: Barley harvest expected to be completed by first week of September
...Click here
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USA, AR: Stone’s Throw Brewing opening second location in Little Rock
...Click here
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USA, SC: Savage Craft Ale Works coming to West Columbia in spring of 2019
...Click here
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USA, ME: Hybrid brewery/distillery Lucky Dog aiming at late September opening
...Click here
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USA, VA: The Flying Mouse Brewery to close down by the end of the year
...Click here
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Africa: Global brewers reinventing themselves to cater to local beer demand in Africa
...Click here
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Germany: Hop harvest to drop to 40,124 tonnes this year
...Click here
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The Philippines: San Miguel plans $2.7 bln share sale in food and beverage unit
...Click here
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The Czech Republic: Hop growers expect significant slum in harvest this year
...Click here
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Vietnam: Brewers exploring low and no-alcohol beer categories as government plans to ban sales of stronger drinks after 10 pm
...Click here
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Ireland: Number of pubs continues to decline alongside sliding demand for beer
...Click here
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South Korea & China: Korean beer exports to China more than double in 2017
...Click here
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Malaysia: Tobacco and alcohol manufacturers in for higher sales and services tax
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Graph of the Week
Table of the Week
Russia Malt Production 2013-2017
Prices Evolution
Barley Prices
Theoretical Malt Prices
These Days in Business History
23 August
1891 - Thomas Edison patents motion picture camera
1904 - Automobile tire chain patented
1939 - Molotov-Ribbentrop pact: East Europe divided between Hitler and Stalin
24 August
1853 - 1st potato chips prepared by Chef George Crum (Saratoga Springs, NY)
1869 - Cornelius Swarthout patents waffle iron
1995 - Windows 95 debuts
25 August
1609 - Galileo demonstrates his 1st telescope to Venetian lawmakers
1900 - Friedrich Nietzsche philosopher, dies in Weimar, Germany
1956 - 1st non-stop transcontinental helicopter flight arrived Washington D.C.
26 August
1541 - Turkish sultan Suleiman occupies Budapest and annexes Hungary
1843 - Charles Thurber patents a typewriter
1880 - Guillaume Apollinaire was born, poet/movie critic (Alcoola)
Agenda
August 2018:
03-05: The 22nd International Berlin Beer Festival (Berlin, Germany)
07-11: The Great British Beer Festival 2018 (London, UK)
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)
20-22: The Great American Beer Festival 2018 (Denver, USA)
22-07 October: Oktoberfest 2018 (Munich, Germany)
24-26: 9th Iberoamerican VLB Symposium 2018 (Recife, Brazil)
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: Barley harvest expected to be completed by first week of September
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Harvest is advancing quickly, especially in the southern regions of the Canadian Prairies. Combines are also rolling across the central and northern regions of the Western provinces. Conditions are near ideal for harvest with the recent hot and dry weather. Crops are drying quickly which will give the farmers uninterrupted access to harvest their crops. Barley harvest should be completed by the first weekend of September, CMBTC reported on August 24.
The long-lasting dryness that lingered over the Prairies through the growing season will and has severely reduced yields. The early barley yields have been below expectations due to the dry and overly hot weather. To date, the majority of the regions have indicated that their yields are 10% to 50% below average. The 50% reduction has occurred in southern Alberta, which suffered through extreme heat stress and minimal rain. There were expectations, in mid-summer, that the Prairies could have above average yields, however those thoughts have been forgotten as the early harvested barley fields are yielding below average crops. Also, the prospects for the later harvested fields to yield above average yields are not optimistic.
...More info on site
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USA, AR: Stone’s Throw Brewing opening second location in Little Rock
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One of Little Rock’s most popular microbreweries, Stone’s Throw Brewing, is opening a second location in the Stifft Station neighborhood. This move will serve as a big step for the company, and for the whole area at the intersection of Markham and Kavanaugh, amppob.com reported on August 23.
They will join Pizza D’Action and the Oyster Bar in Stifft Station, moving into one of the many empty storefronts that also occupy the area.
Stone’s Throw opened the doors to its first location on 9th Street in downtown Little Rock five years ago, as a passion project of four guys who met in a local home brew club. Since then, Stone’s Throw has become a staple of Central Arkansas, cementing itself as one of the state’s favorites in an increasingly popular market for microbrews.
Not only does Stone’s Throw offer more than a dozen different self-brewed beers and ciders; but also a food truck-inspired food menu, bar snacks (including Loblolly Creamery and Izard Chocolate) and Sunday brunch.
Last month, Stone’s Throw opened up a temporary tap room in Stifft Station for the Pop Up in the Rock event, which is a local initiative to assist underdeveloped parts of Little Rock. Managing partner, Ian Beard, says
...More info on site
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USA, SC: Savage Craft Ale Works coming to West Columbia in spring of 2019
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A new brewery is slated to open in West Columbia in the spring of 2019, according to a statement from the city of West Columbia.
Savage Craft Ale Works will be the newest addition to West Columbia’s River District, which the city is working to revitalize, according to the statement.
While it isn’t clear what types of beer the brewery will specialize in, officials said Savage Craft will have an outdoor space for the community, according to the statement. The business will be remodeling the old Brookland Fire Station and City Hall building on Center Street, as well as the old jail.
“I’m excited that we have the opportunity to repurpose the original fire station, jail and city hall for use in the modern era,” West Columbia Mayor Bobby Horton said in the statement. “It will be an awesome addition to the entire redevelopment of the State Street and Meeting Street communities.”
The old jail was built in 1906, and the fire station and city hall building followed in 1925, according to the statement. The new brewery will try to pay homage to the old buildings by preserving them.
The new addition to the River District is part of a larger revitalization in the area
...More info on site
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USA, ME: Hybrid brewery/distillery Lucky Dog aiming at late September opening
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A trio of Kennebunkport-area businessmen are launching a new “beverage and lifestyle brand” called Lucky Dog that will donate a percentage of its proceeds to animal shelters in Maine, the Press Herald reported on August 22.
Lucky Dog includes a hybrid brewery/distillery in Biddeford, a farm and orchard in Kennebunkport, and a tasting room at the former Tia’s Topside at 12 Western Ave. in Kennebunk. The partners in the project are Tim Harrington, the co-founder and creative director of the Kennebunkport Resort Collection; Kevin Lord, owner of Thomas & Lord Custom Builders; and Matt Dyer, the former beverage director of Earth at Hidden Pond.
The name of the business is inspired by Dyer’s bulldog, Rigby.
Lucky Dog’s partners planted the seed for their new business in 2014 by growing hops and lavender on their farm and orchard. Those ingredients are now being used to make their first spirits and ales. Dyer is the lead distiller, and Wade Benker-Ritchey is the head brewer.
Lucky Dog will officially open after renovations are complete at the tasting room, most likely in late September. The owners plan to sell their products in the tasting room and at local restaurants and bars.
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USA, VA: The Flying Mouse Brewery to close down by the end of the year
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There will soon be one less brewery in the Roanoke Valley. The Flying Mouse Brewery in Troutville is calling it quits, wsls.com reported on August 21.
The brewery has been open for five years. The plan is to close it by the end of the year, according to a statement on the brewery's website.
The brewery cites a "focus on family" as the reason behind the decision.
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Africa: Global brewers reinventing themselves to cater to local beer demand in Africa
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Global breweries are reinventing themselves to cater to local beer demand from Africa, in light of predictions that the continent could account for 40% of global volume within the next 10 years, The Drinks Business reported on August 23.
Leading drinks producers such as Diageo, AB InBev and Heineken are creating low-price, locally brewed beer in order to drive profit growth in one of the world’s fastest growing beer markets. Most of their premium brands are out of reach for the majority of Africans, due to low income, currency shortages and economic fluctuations, according to WSJ.
Beer consumption in Africa is by far the lowest in the world, at about 10 litres of beer per capita, compared with 75.8 litres in the US and 67.7 litres in the UK.
However, the continent is the fastest-expanding market and more profitable than other emerging economies in Eastern Europe and Asia, writes the newspaper, citing research from Bernstein Research.
The potential of the continent’s beer consumption is so vast that it has led Deutsche Bank to predict that Africa is going to account for 40% of global volume and profit growth for the beer industry in the next 10 years.
A few of the world’s leading breweries such
...More info on site
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Germany: Hop harvest to drop to 40,124 tonnes this year
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Germany’s hop harvest is expected to total 40,124 tonnes this year, HVG reported on August 24.
This would be the second annual decline in output:
...More info on site
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The Philippines: San Miguel plans $2.7 bln share sale in food and beverage unit
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Philippine conglomerate San Miguel Corp said it was selling a $2.7 billion stake in its food and beverage unit San Miguel Food and Beverage Inc at a rich premium, sending shares of both firms soaring to multi-year highs, Reuters reported on August 23.
The share sale, the biggest ever secondary offering in the country, is part of the parent firm’s asset restructuring plan announced last year to inject its food and beverage assets worth 336 billion pesos ($6.3 billion) into the unit via a share swap.
San Miguel said on August 23 it was seeking regulatory nod to sell up to 1.02 billion shares in the unit at up to 140 peso each, or a 75 percent premium to Wednesday, August 22nd’s close of 80 peso.
Shares of San Miguel rose 12.7 percent to their highest since 2011, while shares of San Miguel Food and Beverage shot up 16 percent to 92.85 peso - a level unseen since 2012.
With shares of the food unit trading below the indicative offer price and market uncertainty rising amid global trade tensions and rising U.S. interest rates, some investors expect San Miguel may have to cut the offer prices.
“One hundred forty is a bit too high,” said
...More info on site
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The Czech Republic: Hop growers expect significant slum in harvest this year
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Czech farmers are predicting a significant slump in the hop harvest this year, caused by the unusually hot weather and lack of rain, Radio
...More info on site
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Vietnam: Brewers exploring low and no-alcohol beer categories as government plans to ban sales of stronger drinks after 10 pm
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Vietnam is exploring the low and no-alcohol beer categories for growth potential as the government intends to ban sales of higher strength drinks after 10pm, The Drinks Business reported on August 22.
The country’s Saigon binh Tay Beer (Sabibeco), an affiliate of the country’s biggest brewery Sabeco, is planning to quintuple the production of its ‘Sagota’ brand of low-alcohol beer to 1 billion litres by 2025, Nikkei reported.
The beer, with less than 0.5% alcohol content, was first launched in 2014 but did not catch on upon its release. Interest however has recently started to build among women and younger beer drinkers.
In addition to domestic production, imports of non-alcoholic and low alcohol beer are also increasing, mainly from Germany and Japan.
German brand Oettinger’s alcohol-free beer, Japan’s Asahi Breweries’ Dry Zero and Russia’s Baltika are available in Vietnam’s supermarkets and online retail space.
The trend in Vietnam also coincided with a time when the government is mulling whether to pass a bill that would ban the sales of alcoholic beverages above 15% ABV after 10pm, which could give a further boost to the ‘low and no’ drinks sector.
The new bill proposed by the country’s Heath Ministry is to be reviewed by parliament next year.
Vietnam
...More info on site
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Ireland: Number of pubs continues to decline alongside sliding demand for beer
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The number of pubs in Ireland continues to decline, as more people are increasingly socialising at home, according to latest figures from the Drinks Industry Group of Ireland (DIGI).
The report also found that demand for beer continues to slide, even as wine is becoming more popular in the country.
The DIGI report found that just 7,140 pubs operate in Ireland as of end-2017, down 17% from 2005, as more than two pubs have been closing a week on average. The strongest decline was in Cork, where 25% of pubs have shut down in the past 12 years. In contrast, the number of off-licences rose by 12% in the same period to 3,331.
According to DIGI, 90,000 jobs across the country are dependent on the drinks industry, which purchases more than €1.1 bln worth of Irish produce annually, exports goods worth more than €1.25 bln, and provides more than €2.3 bln in State revenue (via excise and VAT).
Beer remained the most popular alcoholic beverage in the country, but its market share slid by 100bps to 44.8%, even as wine saw its market share edge up 10bps to 27.7%. Wine consumption grew by 0.5% during the year, in contrast to
...More info on site
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UK: Non-alcoholic beer sales up 58% in UK retail
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Sales of branded products outstripped private-labels in supermarkets for the first time since 2015 this summer, while non-alcoholic beer went from strength to strength, according to the latest figures from Kantar Worldpanel, the Drinks Business reported on August 22.
Heavily branded categories – such as savoury snacks, ice cream and soft drinks – performed particularly well over the hot summer months, helping branded growth of 3.9% overtake that of total own label. This compares to total grocery market growth of 3.5%.
However, more expensive premium own-label lines across the market are still growing strongly, up 6.3% in the 12 weeks to 12 August.
Brits spent an additional £67 million on alcoholic drinks, while non-alcoholic beers were up 58% compared to this time last year.
Kantar analyst Fraser McKevit said the boost for brands is further evidence of the continued growth of premiumisation in the retail sector.
“Consumers’ willingness to spend that little bit extra to fully enjoy the summer sunshine has helped push brands ahead of their own-label counterparts,” he said.
“At Tesco and Sainsbury’s branded growth has outstripped own-label for a while and – as the two biggest retailers in the grocery market – this has contributed to the market shift.”
The news comes after months
...More info on site
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South Korea & China: Korean beer exports to China more than double in 2017
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South Korea’s beer export to China more than doubled last year compared to a year ago amid unfazed popularity of Korean pop culture, while harder liquor varieties lost favor with Chinese drinkers, the Pulse News reported on August 22.
According to state-run Korea Agro-Fisheries & Food Trade Corp. on August 22, Korea shipped out 65 million litres of beer to China in 2017, more than doubled from 31.6 million litres in the previous year. Beer export value also doubled to $50.2 million from $23.99 million as average sale price rose $0.77 per litre from $0.76 over the cited period.
Korean beers accounted for 9.1 percent share of China’s overall import beer market in 2017, sharply up from 4.9 percent in the previous year based on volume. In dollar terms, Korean beer products’ share stood at 6.7 percent last year, compared with 3.6 percent in the previous year.
The best-selling Korean beer in China was ‘Blue Girl,’ sold by Korea’s leading brewer Oriental Brewery Co. (OB) as an original design manufacturer. Blue Girl, which penetrated into Chinese beer market through Hong Kong, accounted for 87.9 percent of Korean beer sales in China last year, up from 72 percent in the previous
...More info on site
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Malaysia: Tobacco and alcohol manufacturers in for higher sales and services tax
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While it was reported that the Malaysian government will keep the current excise duty rates on alcohol and tobacco for 2019, tobacco and alcohol manufacturers will be imposed a higher sales and services tax (SST) when it makes a comeback next month, The Edge Markets reported on August 24.
According to a guide on proposed sales tax rates for various goods prepared by the Royal Malaysian Customs Department dated Aug 16, 2018, manufactured tobacco and spirits will be subject to a 10% sales tax.
“At the manufacturers’ level, the differential is actually an additional 4%, [compared with the 6% goods and services tax (GST)],” Grant Thornton Malaysia executive director for indirect tax and goods and services tax Alan Chung told The Edge Financial Daily on the phone.
Thus, tobacco manufacturers such as British American Tobacco (Malaysia) Bhd, and breweries such as Heineken Malaysia Bhd and Carlsberg Brewery Malaysia Bhd will be incurring an additional 4% tax, in the form of sales tax.
Under the new SST regime, there will be no more tax on the value added under the supply chain. The GST was imposed on each intermediary of the entire supply chain up to the retailers’ level.
Hence, for consumers, the goods may be
...More info on site
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