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E-Malt.com Newsletter 09a
February 25 - February 27, 2019
Quote of the Week
Sometimes life hits you in the head with a brick. Don't lose faith.
Steve Jobs
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Currency Rates
Base Currency: US Dollar
on February 27, 2019 |
Base Currency: Canadian Dollar
on February 27, 2019 |
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1 USD = 0.8796 EUR
1 USD = 0.7580 GBP
1 USD = 1.3195 CAD
1 USD = 1.3955 AUD
1 USD = 110.7600 JPY
1 USD = 3.7502 BRL
1 USD = 65.6339 RUB
1 USD = 6.6942 CNY
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1 CAD = 0.7577 USD
1 CAD = 0.5744 GBP
1 CAD = 0.6665 EUR
1 CAD = 1.0574 AUD
1 CAD = 83.9300 JPY
1 CAD = 2.8417 BRL
1 CAD = 49.7336 RUB
1 CAD = 5.0725 CNY
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Currency Rates Chart
Equities of the Largest Breweries
Canada: Barley supply decreases in 2018-19 due to low carry-in stocks
...Click here
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USA: Off-premise beer category sales up 4.7 percent in January
...Click here
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USA, WI: Wisconsin brewers hope for relief from excise taxes, tariffs
...Click here
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USA, CT: Reverie Brewing Company ready to launch in Newtown
...Click here
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Mexico: Mexico’s Oxxo stores to start selling popular national beers including Corona and Pacifico
...Click here
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USA, UT: Senate approves bill allowing sale of stronger beer in grocery and convenience stores
...Click here
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USA, OH: Actual Brewing Company files for chapter 11 bankruptcy protection
...Click here
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Australia: Plenty of good cheer flowing in GrainCorp’s malt division thanks to surging demand for whisky and craft beer
...Click here
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New Zealand: Volume of craft beer produced almost trebles over five years
...Click here
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China: Beer drinkers may end up bearing cost of barley trade war
...Click here
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Australia: Barley production estimated down 7% in 2018-19
...Click here
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UK: Barley growers find secure market with grain for distilling
...Click here
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China: Diageo to increase stake in liquor maker Sichuan Shujingfang Co Ltd
...Click here
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Belgium: Group of friends raises start-up capital to open Ghent’s largest brewery
...Click here
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Russia & China: Moscow brewers increase exports to China
...Click here
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Graph of the Week
Table of the Week
Africa Beer Production by Country
Prices Evolution
Barley Prices
Theoretical Malt Prices
Scientific Digest
ALL ABOUT ALPHA ACID ISOMERIZATION
ABSTRACT
Dedicated to Dr. Koen Goiris, who passed away in 2017,
a Belgium research group published an extensive
overview about everything there is to know about alpha
acid and its isomerization. From the biosynthesis of bitter
acids in the hop plant, the solubility properties of alpha
acids in wort and beer, to the reaction mechanisms and
kinetics of converting alpha acids into iso alpha acids —
all relevant research and publications are summarized
here. And as the authors say and I agree "this review
paper will help scientists to find their way and discover
new things in the fascinating field of hop research."
REFERENCES:
B. Jaskula-Goiris, L. De Cooman and K. Goiris, Humulus Lupulus: Hop Alpha-acids
Isomerization A Review, Brewing Science, 2018
Read more
Source: Barth Innovations
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These Days in Business History
25 February
1791 - 1st Bank of U.S. chartered
1837 - 1st U.S. electric printing press patented by Thomas Davenport
1862 - Paper currency introduced in U.S. by President Abraham Lincoln
26 February
1848 - 2nd French Republic proclaimed
1907 - Royal Oil and Shell merge to form British Petroleum (BP)
1993 - World Trade Center bombing
1995 - Barings Bank, one of the oldest and most distinguished investment banks in the world, declares bankruptcy
27 February
1557 - 1st Russian Embassy opens in London, Russia and U.S. sign trade agreement
1990 - Exxon Corp and Exxon Shipping are indicted on 5 criminal counts
1998 - Apple discontinues developing Newton computer
Agenda
March 2019:
05 - 07: Expo Antad & Alimentaria Mexico 2019 (Mexico City, Mexico)
11 - 13: 105th Brewing and Engineering Congress 2019 (Rust, Germany)
13 - 14: BeerX 2019 (Liverpool, UK)
13 - 16: Festival Brasileiro da Cerveja 2019 (Blumenau, Brazil)
14 - 16: Alltech Craft Brews & Food Fair 2019 (Dublin, Ireland)
15 - 17: Barcelona Beer Festival 2019 (Barcelona, Spain)
27 - 28: Craft Beer Italy 2019 (Milan, Italy)
27 - 29: 10th World Barley, Malt & Beer Conference (Warsaw, Poland)
April 2019:
04 - 06: Warsaw Beer Festival 2019 (Warsaw, Poland)
05 - 06: Helsinki Beer Festival 2019 (Helsinki, Finland)
08 - 11: Craft Brewers Conference & BrewExpo America 2019 (Denver, Colorado, USA)
10 - 12: Drink Technology India 2019 (Bengaluru, India)
26 - 28: Zythos Beer Festival 2019 (Leuven, Belgium)
May 2019:
07 - 09: International Beer Strategies Conference 2019 (Dublin, Ireland)
15 - 17: Craft Beer China 2019 (Shanghai, China)
17 - 19: Mondial de la Biere 2019 (Paris, France)
21 - 23: Africa Brewing Conference 2019 (Addis Ababa, Ethiopia)
21 - 24: Beer 2019 (Sochi, Russia)
21 - 26: Latvia Beer Fest 2019 (Riga, Latvia)
22 - 25: Mondial de la Biere 2019 (Montreal, Canada)
23 - 25: Copenhagen Beer Festival 2019 (Copenhagen, Denmark)
28 - 30: Brasil Brau 2019 (Sao Paulo, Brazil)
30 - 01 June: Expo Wine + Beer 2019 (Santiago de Chile, Chile)
June 2019:
02 - 06: The 37th Congress of the European Brewery Convention (Antwerp, Belgium)
03 - 04: The Brewers of Europe Forum 2019 (Antwerp, Belgium)
09 - 11: Brewing Conference 2019 (Bangkok, Thailand)
24 - 26: 2019 ASBC Meeting (New Orleans, USA)
25 - 26: BevExpo 2019 (Ricoh Arena, Judds Lane, Coventry, United Kingdom)
July 2019:
03 - 04: Craft Drinks India 2019 (Bengaluru, India)
09 - 11: Fdt Africa 2019 (Midrand, South Africa)
August 2019:
02 - 04: The 23rd International Berlin Beer Festival (Berlin, Germany)
06 - 10: The Great British Beer Festival 2019 (London, UK)
07 - 10: VIETFOOD & BEVERAGE - PROPACK 2019 (Ho Chi Minh City, Vietnam)
09 - 10: Beervana 2019 (Wellington, New Zealand)
26 - 31: Copa Cervezas de America 2019 (Valparaiso, Chile)
September 2019:
04 - 08: Mondial de la Biere 2019 (Rio de Janeiro, Brazil)
21 - 06 October: Oktoberfest 2019 (Munich, Germany)
26 - 27: Sea Brew 2019 (Bangkok, Thailand)
26 - 28: Stockholm Beer & Whisky Festival 2019 (Stockholm, Sweden)
October 2019:
03 - 05: Stockholm Beer & Whisky Festival 2019 (Stockholm, Sweden)
03 - 05: The Great American Beer Festival 2019 (Denver, USA)
November 2019:
12 - 14: Brau Beviale 2019 (Nuremberg, Germany)
27 - 29: Drink Japan 2019 (Makuhari Messe, Japan)
December 2019:
05 - 07: Drink Technology India 2019 (New Delhi, India)
More events are available on site e-malt.com
News Articles
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Canada: Barley supply decreases in 2018-19 due to low carry-in stocks
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For 2018-19, total Canadian barley supply decreased to 9.674 mln tonnes due to sharply lower carry-in stocks, Agriculture and Agri-Food Canada said in its February report.
Total domestic use is forecast to increase on higher feed and industrial use to 6.074 mln tonnes.
Exports are forecast to remain strong, at 2.7 mln tonnes, although slightly lower than last year, due to strong international demand.
Carry-out stocks are forecast to decrease by 28% to 0.9 million tonnes that will be a record low level.
The average price of feed barley at Lethbridge for the crop year is expected to be C$255/t, about 12% higher than last year, the analysts said.
Similar to feed barley, the quality of the malting barley crop is variable. The extensive summer heat increased the protein content of the crop and lowered the weight of the crop, depending on the date of maturity and area.
The Lethbridge spot feed barley prices to-date have been about 20% higher than last year and Prairie malt prices have been 15-25% higher than last year.
World barley stocks are historically low as nearly all of the world major producers and exporters had smaller crops and, in many cases, quality was also lower than normal.
...More info on site
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USA: Off-premise beer category sales up 4.7 percent in January
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Dollar sales of beer, cider and flavored malt beverages grew 4.7 percent, to more than $2.5 billion, through the first four weeks of 2019, according to market research firm Nielsen, which tracks category-wide sales at major off-premise retailers, Brewbound reports.
Through January 26, beer dollar sales grew 3.4 percent, to more than $2.3 billion. Segments growing dollar sales included hard seltzer (+246.8 percent), cider (+6.6 percent), domestic super premiums (+20.6 percent), near beer (+4.1 percent), domestics (+3.2 percent), imports (+11 percent) and craft beer (+0.8 percent).
As for craft styles, IPA dollar sales grew 10.6 percent, to more than $119 million, in January, while sour ale dollar sales grew 12.3 percent, to about $1.9 million. Meanwhile, dollar sales of craft 15-packs grew 68.6 percent, to more than $11.5 million, during the first four-weeks of the years.
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USA, WI: Wisconsin brewers hope for relief from excise taxes, tariffs
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A tariff and tax fight is brewing, and it could impact Wisconsin beermakers, waow.com reported on February 22.
U.S. Sen. Tammy Baldwin talked about tax cuts and tariffs for Wisconsin brewers as she toured Good City Brewing’s new taproom next to Milwaukee’s Fiserv Forum.
A bipartisan bill, the Craft Beverage Modernization and Tax Reform Act, would cut excise taxes on beer, wine and spirits in half — from $7 a barrel to $3.50.
“We’ll be pushing very hard to make sure that it’s extended and made permanent,” Baldwin said.
That would save Wisconsin craft brewers about $2 million a year in taxes.
“When craft manufacturers get relief from an excise tax, they’re small businesses, and they’re going to reinvest back in their business,” Baldwin said.
Good City Brewing and more than 170 craft breweries in Wisconsin are also being hit by President Donald Trump’s tariffs on aluminum and steel.
“As we’ve issued new purchase orders for cans, we’ve seen our pricing go up,” said Dan Katt of Brew City Brewing.
Higher-priced cans are a bigger deal for a large brewer like MillerCoors, and the tariff doesn’t just impact aluminum cans.
Craft brewers said the tariff on stainless steel adds about 8 to 10 percent to the cost of buying
...More info on site
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USA, CT: Reverie Brewing Company ready to launch in Newtown
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It's been over eleven months in the making, but the day is almost here when Reverie Brewing Company in Newtown celebrates their grand opening, kicks1055.com reported.
Reverie is another of the growing number of brewing companies that are opening up in the Greater Danbury area.
Even though it has seemed like a while since the first announcement of the brewery opening in Newtown, the new management is pulling out all the stops to make this the best brewing company in the area.
They'll have a large assortment of their own beers on tap, with other favorite brews also available. Aside from the awesome interior, they will be looking to offer an outdoor patio area, so during the nice weather, patrons can sit outside under the stars. Even if you're not that into craft beer, they will also be offering other drinking options like New England cider, wine by the glass and Sound Sparkling teas.
Reverie Brewing is set to finally open their doors this Saturday, March 2nd, and they are located at 57 Church Hill Road in Newtown, just off exit 10 of I-84.
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USA: Big brewers in a row over corn syrup use ad
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Anheuser-Busch InBev sparked backlash from corn producer industry groups and rival brewers when it aired a Super Bowl ad that shamed other beer brands for using corn syrup. Now, it looks like the 60-second commercial could have longer-lasting repercussions.
AB InBev, Molson Coors Brewing, Heineken and Constellation Brands had been discussing teaming up for a national ad campaign to revive U.S. beer sales for more than a year, but the Bud Light ad has jeopardized the alliance, The Wall Street Journal reported on February 25.
U.S. beer consumption has been declining as consumers drink more spirits and wine or eschew alcohol altogether. Last year, unit case volume of beer declined by 1.5 percent, according to IWSR data. To make matters worse for the country's biggest beer producers, craft beers have been eating into big brewers' sales.
MillerCoors, Molson's U.S. division, has pulled out of meeting scheduled for next month and said the project should be paused, according to the Journal.
The Bud Light ad took aim at Molson's Miller Lite and Coors Light beers for using corn syrup during the brewing process. Although the ingredient sounds similar to high-fructose corn syrup, which has been associated with the obesity epidemic, dietitians say that the sweetener
...More info on site
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Mexico: Mexico’s Oxxo stores to start selling popular national beers including Corona and Pacifico
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Mexican bottler and retailer Femsa said on February 26 it will start selling popular national beers including Corona and Pacifico at its Oxxo stores, Mexico’s biggest convenience store chain, Reuters reported.
Femsa’s agreement to bring in the brands, with Anheuser Busch InBev subsidiary Grupo Modelo, will take effect in April for certain Mexican markets, Femsa, or Fomento Economico Mexicano, said in a statement.
The deal will cover Mexico City and Guadalajara, the country’s biggest cities, in 2019 and spread to stores nationwide by the end of 2022.
Oxxo, with more than 17,000 stores across Mexico, has sold Heineken brands exclusively since 2010, Femsa said.
Heineken said in a statement that it would continue selling its brands at Oxxo under a new agreement for five years.
Femsa did not disclose terms of its agreements with Grupo Modelo or Heineken, which are both set to be finalized in March.
Grupo Modelo produces 10 brews including Corona, Pacifico, Victoria and Modelo, some of Mexico’s most recognizable brands. It also imports Budweiser and Bud Light.
Oxxo generates about 35 percent of revenue at Femsa, which will report fourth-quarter results on February 27.
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USA, UT: Senate approves bill allowing sale of stronger beer in grocery and convenience stores
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With little discussion, the Senate gave final approval on February 26 to a bill allowing beer with a higher alcohol content to be sold in grocery and convenience stores in Utah, the Deseret News reported.
SB132, sponsored by Senate Budget Chairman Jerry Stevenson, R-Layton, now goes to the House after clearing the Senate 27-2. The bill raises the alcohol content by weight from 3.2 percent to 4.8 percent for beer that can be sold outside of state-run liquor stores.
With Utah just one of two states still selling 3.2 percent beer, breweries such as Coors and Budweiser have been phasing out its production and some products are already no longer available.
The only senator speaking to the bill on February 26 was Senate Minority Caucus Manager Derek Kitchen, D-Salt Lake City, who said his downtown area district probably has the largest concentration of microbreweries, who are seeking to preserve the lower limit.
However, Kitchen, who identified himself as "one of the two or three members of this body who actually consumes alcohol," said he didn't like the idea of protecting an industry when other constituents are calling for the change.
"I'm just excited to see us normalize our alcohol a little bit and I think
...More info on site
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USA, OH: Actual Brewing Company files for chapter 11 bankruptcy protection
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In the wake of sexual assault allegations against Actual Brewing Company founder Fred Lee, the Columbus, Ohio-based craft beer company has filed for chapter 11 bankruptcy protection, according to Columbus Business First.
Citing financial filings in the case, the outlet reported that Actual Brewing lost $558,080 in 2018 and $255,225 in 2016 (2017 numbers were not disclosed). The company reported assets of between $500,000 and $1 million as well as liabilities of between $500,000 and $1 million.
Actual’s largest unsecured claim is a $100,000 loan made by John Dilley, Business First reported. The company also owes federal taxes of $55,000 and thousands of dollars to other creditors, including the Ohio Department of Job and Family Services ($3,750), the city of Columbus ($3,500), Keg Logistics ($21,392), mobile canner Iron Heart Canning ($5,087), and its landlord, Plaza Properties ($39,068).
A 2016 tax filing revealed that 54 people invested in Actual Brewing, but Business First cited sources saying the Lee and his wife, Mira Lee, who is also an owner, had accepted additional investments that diluted their share of the company to about 30 percent.
Lee previously stepped down as CEO after Columbus Alive reported that numerous women alleged Lee sexually assaulted or harassed them. Lee has
...More info on site
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Australia: Plenty of good cheer flowing in GrainCorp’s malt division thanks to surging demand for whisky and craft beer
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While drought continues to dehydrate GrainCorp’s Australian crop receival and grain trading earnings, there’s plenty of good cheer flowing in its global malt division,
...More info on site
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New Zealand: Volume of craft beer produced almost trebles over five years
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The volumes of craft beer produced over the past five years has almost trebled, Stats NZ figures released on February 26 show.
Last year alone,
...More info on site
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China: Beer drinkers may end up bearing cost of barley trade war
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Beer drinkers in China -- and in Chinese restaurants around the globe that sell brands like Tsingtao -- may end up bearing the cost
...More info on site
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Australia: Barley production estimated down 7% in 2018-19
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Australia’s barley production is estimated to have fallen by 7% to 8.3 million tonnes in 2018-19, ABARES said in its February report.
In New South
...More info on site
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UK: Barley growers find secure market with grain for distilling
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An expanding band of barley growers in southern England is producing low-nitrogen grain destined for the spirits market and earning themselves a useful price premium, the Farmers Weekly reported on February 25.
Having a secure domestic market for their grain rather than relying on exports, which may be liable for tariffs as Britain prepares to leave the European Union, could be a good move in these uncertain times.
Farmers Weekly reporter David Jones visited two of these growers in Hampshire to find out how they are meeting the tough demands of the distilling industry.
Chris Allen is the only malting barley grower supplying the uber-trendy gin and vodka brand Bimber, which he hopes will shelter him from the cold winds of Brexit.
Low-nitrogen barley grown on his Hampshire downland farm fetches a distilling market premium and goes to produce English barley vodka selling at close to £35/bottle.
His spring-sown barleys are malted in Wiltshire and transported to the four-year old Bimber distillery in London which will help to insulate Mr Allen from the uncertain world of grain exports as Britain prepares to leave the European Union.
“The grain is being used in this country for distilling so we are not dependent on exports, and therefore we
...More info on site
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China: Diageo to increase stake in liquor maker Sichuan Shujingfang Co Ltd
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Diageo PLC said on February 26 it intends to increase its stake in Sichuan Shujingfang Co Ltd to 70% from 60% through a partial tender offer, the Morningstar reported.
Sichuan Shujingfang is a Chinese producer of baijiu, a liquor made from grain.
The partial tender offer has been priced at CNY45.00 per share, of CNY2.20 billion in total, or GBP249.0 million.
The offer is still currently being discussed, with both companies stressing that there is no certainty the acquisition will be made.
Shares in the FTSE 100-listed beer and spirits maker were up 1.4% at 2,960.00 pence on February 26.
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Belgium: Group of friends raises start-up capital to open Ghent’s largest brewery
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A group of friends in Ghent has raised almost one million euros of start-up capital to help them create Beerselect, which will be the city's largest brewery, The Brussels Times reported on February 24.
However Beerselect will not be brewing beer on its own account. Instead the company intends to supply the facilities for small artisanal brewers to scale up their production to meet the increasing demand for craft beer.
Similar contracts already exist with brewers like Anders in Limburg and De Proef in Ghent, who make beer to order according to a producer's own recipe. Some independent breweries like Huyghe in Melle brew beer for clients as well as manufacturing their own brands. Beerselect offers something slightly different.
“What we do at the moment is support small brewers,” explained Miel Bonduelle, one of the four founders. “We represent them at international beer festivals. But the pity is that they are often running on the spot, even although there is much more demand for their beer than they can produce for themselves.”
The answer is not to brew beer for the small craft brewer, but to provide them with the equipment to do it themselves. The new brewery has raised 900,000 euros capital, and
...More info on site
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Russia & China: Moscow brewers increase exports to China
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Malt beer produced in the Russian capital has apparently gained popularity among the country’s eastern neighbours, becoming the most popular export from Moscow to China. Shipments reportedly surged nearly 93 percent last year, RT reported on February 23.
“The Moscow food industry’s most popular product exported to China in 2018 was malt beer in 10-litre casks or smaller, and its export amounted to $14.6 million, which is 92.9 percent more than in 2017,” the Moscow Department of Investment and Industrial Policy revealed to TASS on February 22.
China’s domestically produced brand Snow is considered the most popular beer in the world. It does not mean, however, that it’s known around the globe and popular among beer lovers. Reviewers on RateBeer.com gave Snow beer an average rating of 1.75 out of 5. China’s second most popular beer, Tsingtao, is not much better, as users gave it 2.04 points.
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