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• The world's second largest brewer, SABMiller plc, issued on January 13 the following trading update for the group's third quarter, which includes the peak South African December period ...more info



• South Korea: The trademark battle between Czech brewer Budejovicky Budvar and US giant Anheuser-Busch has continued this week with the resolution of a dispute between the two players in South Korea ...more info



• Czech Republic: In 2003 Czech beer consumption per capita is forecasted to outstrip 2002, Jan Vesely the chairman of the Czech Association of Beer and Malt Producers, said ...more info



• Australia: The equation is simple: the hotter the weather, the more beer people drink. December was the hottest in 130 years, and it showed up in beer sales, which jumped by up to one-fifth ...more info



• Thailand: The arrival of Interbrew NV as it is known in Thailand, upset the local brewer very much. The market isn't what it was a couple of years ago ...more info



• Colombia's biggest brewer, Bavaria, denied on January 9 that it was negotiating its sale to Belgium's Interbrew, the world's fourth biggest brewer ...more info



• Japan's second-largest beer maker, Kirin Brewery Co Ltd, forecast on January 8 a mild 2% rise in its core sales volume in 2004 ...more info



• Ukraine: OAO Sarmat (Donetsk), which is one of the four largest brewing companies of Ukraine, increased its beer output in 2003 by 17.3 % versus the previous year - up to 152.71 million litres ...more info



• German beer maker, Neuzeller Kloster Brewery, has developed a beer containing vitamins and minerals designed to slow the aging process ...more info



• Japan: The Japanese beer market would probably shrink this year and Japan’s brewing force, Asahi Breweries, would continue to expand abroad, focusing on China and other markets in Asia ...more info



• India: The Indian beer industry has failed to register good results in 2003. Though various industry segments are showing double-digit growth, beer sales are likely to decline marginally in 2002-03 ...more info

Brewery News

China: The Dutch brewing force, Heineken N.V., announced on January 9 that it is finalising arrangements to combine its operations with its associate company, Asia Pacific Breweries (APB) in main land China as of 1 April 2004. Heineken Asia Pacific Breweries China (HAPBC) has been designated as the vehicle for the production and marketing of beer and other strategic activities such as investments, mergers and acquisitions in China. HAPBC will start brewing Heineken beer locally for the Chinese market as per the same date. HAPBC, shareholder (97%) of the Shanghai Asia Pacific Brewery, intends to acquire the entire registered capital of Hainan Asia Pacific Brewery Co. (HAPCO) from APB at an amount equal to the consolidated audited net tangible asset value of HAPCO as at 31 March 2004. HAPCO operates a brewery on the island of Hainan. HAPBC also intends to acquire the entire registered capital of Heineken Trading (Shanghai) Co. (HTSC) from Heineken at an amount equal to the consolidated audited net tangible asset value of HTSC as at 31 March 2004, based on the HTSC Interim Accounts. As at 30 September 2003, the consolidated unaudited net tangible asset value of HTSC is RMB 57 million (approx. € 5.5 million). The estimated net turnover of HTSC for the year ended 31 December 2003 is RMB 321 million (€ 31 million). Upon completion of the transactions, APB and its parent company Asia Pacific Investment Pte Ltd (APIPL) will each hold 50% of HAPBC. The indirect effective economic interest in HAPBC will be: Heineken 46.1% and Fraser and Neave 43.9%...more info

USA: Anheuser-Busch, Inc., the U.S. beer subsidiary of Anheuser-Busch Companies, Inc., achieved record U.S. beer sales volume in 2003, it was announced on January 7 by Anheuser-Busch, Inc. President August A. Busch IV. “We are pleased to report that our domestic beer shipments to wholesalers grew to an all-time high of 102.6 million barrels in 2003 --- increasing 800 thousand barrels or 0.8 percent over 2002,” said Busch. “This record achievement, led by the success of the new Michelob ULTRA low carbohydrate brand and increased Bud Light sales volume, reflects the hard work and dedication by all of our employees and wholesaler partners across the country”. Wholesaler sales-to-retailers grew 0.9 % for the full year. Sales-to-retailers accelerated in the second half of the year, increasing 1.3 % in the third quarter and 1.7 % in the fourth quarter. Fourth quarter beer shipments by Anheuser-Busch to wholesalers grew 0.5 %. Anheuser-Busch Companies, Inc. will announce worldwide beer volume and consolidated earnings results for the fourth quarter and full year 2003 on February 4, 2004. The company continues to expect 12 to 13 % earnings per share growth for 2003, consistent with results through the first nine months of the year and has set an initial earnings per share growth target of 12 % for 2004. “We are confident that having the highest quality and freshest beers in the industry, combined with effective marketing, solid sales execution and a favorable pricing environment, will result in another very good year for Anheuser-Busch in 2004,” Busch said.

South Korea: Belgian brewing force, Interbrew, announced on January 7 that following the exercise of a put option, it paid 612 million euro for 100% control of Hops Cooperatieve U.A. (“Hops”). Hops holds 45% of the shares of Oriental Brewery, having acquired these shares from the Doosan Group. This transaction will have no impact on Interbrew’s EPS and confirms Interbrew’s commitment in South Korea to Oriental Brewery. Interbrew, the world’s fourth largest brewer known for brands like Stella Artois and Beck’s, said the purchase had raised its stake in Oriental to 95%, with the balance 5% still held by Doosan, a local food and drinks maker. With brands like OB Lager and Cass, Oriental controls about 42.5% of the South Korean beer market. The size of South Korean beer market is evaluated at 17 million hl. Per capita consumption in South Korea is of 36.5 litres. Interbrew is a public company (INTB – Euronext) based in Brussels, Belgium. The company has a portfolio of more than 200 brands, run operations in 21 countries across the Americas, Europe and Asia Pacific and have strategic minority stakes in various brewers around the globe. In 2002 Interbrew realised a net turnover of close to 7 billion euro. On 26 June, 2001 Interbrew announced that it entered into a put and call agreement relating to these shares pursuant to Doosan's decision to sell 45% of its shares in Oriental Brewery. “The transaction confirms Interbrew's commitment to its joint venture and to the Korean beer market and secures its future in Oriental Brewery,” Interbrew said on June 26, 2001.

Asahi Breweries Ltd, Japan's top brewer, said on January 7 it expected its combined sales volume of beer and low-malt "happoshu" to be flat this year after a 2.6 % slide in 2003, Reuters report revealed. The company said it expected the overall Japanese market for beer and happoshu to decline slightly in 2004 as consumers turned to alternatives such as wine and cocktails. Industry beer sales were seen falling some 6 % while happoshu sales were seen climbing by the same percentage. Asahi's own beer sales were seen down 5.5 % but its happoshu sales were expected to rise 17.2 % on the strength of new products, including its "Honnama Aqua Blue" launched last July. Cool weather during the summer months, a tax rise on happoshu in June and sluggish consumer spending hurt Asahi last year. In August it cut its projection for net profit for the last business year to December to 21 billion yen ($197.8 million) from an earlier estimate of 26 billion yen, but it has since reported nine-month profits of 21.29 billion. Asahi will report its results for 2003 in late February.

Malt News

Estimated Central and East European malt and malting barley supply and demand for 2003,
in thousand metric tonnes

in thousand tonnes	Malt Production	Malt Consumption	Malt Ex/Import	Barley Needs	Barley Supply	Barley Ex/Import
Poland	280	450	-  170	350	140	-  210
Czech Rep.	450	240	+ 210	560	700	+ 140
Slovakia	280	80	+ 200	350	280	-   70
Hungary	140	100	+   40	175	120	-   55
Russia	750	1,200	-  450	875	500	- 375
Ukraine	185	300	-  115	230	150	-   80

Barley News

Winter grain plantings are now nearly over in the EU. In general, weather conditions have been satisfactory in Northern Europe. Southern Europe has seen more mixed conditions, HGCA reported in a statement on January 12. Winter barley area in the EU-15 is forecast by Strategie Grains to drop 70,000 ha, to 4.18M ha. This is due to a forecast reduction in the UK where low prices relative to wheat and oilseed rape are blamed for the loss of area. Strategie Grains put UK winter barley area at 390,000 ha, at the low end of trade estimates but reflecting a general belief that winter barley area could be at least 5 percent to 10 percent lower this season. Winter areas in other countries are close to unchanged. In the ten new member states plantings are forecast up slightly, by 60,000 ha, to 0.55 million ha overall. Small increases in Poland, Hungary and the Czech Republic are key drivers. Barley production will depend heavily on spring plantings, as well as yields returning to normal.

UK: Pre-winter barley growth in North Yorkshire and Scotland has exceeded that of the south this year, with green area and biomass twice the size of their southern counterparts. Mild weather and mid-September sowing meant that crops at Aberdeen, Edinburgh and High Mowthorpe in North Yorkshire reached a green area of index of 1.85 by mid-December, according to data from the HGCA Winter Barley Reference Crop project. In previous years, this level has not been reached before the second half of April. “Over the past two years barley crops in the south have shown strong pre-winter growth, whilst those in north England and Scotland have been more backward. This year we are seeing the opposite,” said ADAS’s Jonathan Blake, who is leading the project. “Germination and early plant growth in the south were far from ideal this season, whereas further north soil moisture was more favourable, improving growing conditions.” Further south at sites in Nottingham, Kings Lynn and Herefordshire, crops have struggled with the dry conditions that have hindered emergence. “At ADAS Rosemaund in Herefordshire, even though the crop was sown on the 19th September, establishment was not complete until early November,” said Mr Blake. “Interestingly, although establishment was protracted, 79% of seeds sown still emerged, only 2% less than that achieved in 2001 and 8% less than in 2002.” Despite good subsequent growth, the Rosemaund site only reached a green area index of 0.7 by mid-December, compared to 0.8 at Aberdeen and 1.9 at Edinburgh.


Theoretical malt prices.

* - 70/30 = 70% Average two Rows Spring and 30% Six Rows Winter
** - 50/50 = 50% Average two Rows Spring and 50% Six Rows Winter

Theoretical malt prices for crop 2004 are available on site www.e-malt.com/MarketPrices

Malting barley prices. French barley prices. Nominal prices.

EURO = USD 1.2748 January 13, 2004
Crop year		2003		2004
Parity		FOB Creil		FOB Creil
Position		July 2003		July 2004
Type	Variety	EURO	USD	EURO	USD
2RS	Scarlett	143.50	183.00	141.00	180.00
2RS	Prestige/Cellar	143.00	182.50	140.00	178.50
2RS	Aspen	142.00	181.50	139.00	177.50
2RS	Optic	142.00	181.50	139.00	177.50
2RS	Astoria	141.00	180.00	138.00	176.00
2RS	Cork	141.00	180.00	138.00	176.00
6RW	Esterel	138.50	176.50	125.00	159.50

nq - Not quoted

Prices for Danish and UK malting barley are available on site www.e-malt.com/MarketPrices

Graph of the week

Agenda

January 2004: INTERNATIONAL FOOD & DRINK EXHIBITION (IFDE 2004); The 2004 Barley Day; Pianeta Birra - Beverage & Co. International Show of Beers, Beverages...;
February 2004: Pianeta Birra - Beverage & Co. International Show of Beers, Beverages; Orges brassicoles 2004: Des perspectives nouvelles de marchés; HOFEX 2004 Food & Drink; Canadian Food & Beverage Show; BIEREXPO;
March 2004: International course - Malting and Brewing Science; FOODEX Japan 2004; ANTAD 2004; 2004 BIENNIAL CONVENTION; Beer Auction 2004, the international exhibition of beer, technology and equipment; China Drinktec 2004. China International Exhibition on Beverage and Brewing Processing Technology

More events are available on site e-malt.com

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