E-Malt.com newsletter - September 09

1. Industry news

The most famous Czech beer, Pilsner Urquell, brewed since 1843 only in the West Bohemian city of Pilsen, Czechia, will be produced under license in Poland by SABMiller’s Czech subsidiary Plzensky Prazdroj. "The licensed production is a step in the long-term strategy to build Pilsner Urquell as one of the brands of choice world-wide. As professional tests confirmed, the quality of licensed beer is identical with the original Pilsner. Beer is produced using the same process as in Pilsen," the company said in a statement. Demand for beer is rising in Eastern Europe. SAB's Czech and Polish beer sales rose 8 percent combined in the last three months, the company said. The Czech Republic is the world's leading beer consumer, averaging 160 liters per capita per year.

The Brazilian drinks group, AmBev, intends to expand its influence further in Latin America with the agreement of a distribution alliance with the regional Pepsi bottler, Central American Bottling Corporation (CabCorp). According to the agreement the joint venture distribution company will distribute AmBev’s beer brands in Central America and the Caribbean, undeveloped markets for AmBev. CabCorp activates in Guatemala, Honduras, El Salvador and Nicaragua. AmBev spokesman said: "The new company will strengthen CabCorp in the competitive Central American drinks market and provide AmBev a quick and low risk way in to the beer industry of the region," Now, AmBev, the world’s fifth largest beer group, owns breweries in Uruguay, Paraguay and Venezuela. If the company’s pending deal with Quilmes is approved, AmBev will also be present in Argentina.

Scottish & Newcastle is discussing selling 1,000 of its 1,500 pubs to the Royal Bank of Scotland. The negotiations are considered to be at an advanced stage. S&N is trying to release capital from its freehold estate and has been looking at several options, a further Royal Bank of Scotland deal being one. Last year the Royal Bank of Scotland bought 456 S&N’s pubs for GBP 260 million. If the Royal Bank buys 1,000 pubs this year, the total number of pubs acquired from S&N will constitute 2,076.

On September the 9, Interbrew, The World’s Local Brewer, revealed its intention to further optimise its plant network in Western Europe. The company will phase out the Breda plant (Netherlands) by relocating its volumes of 2 million hectolitres to the breweries in Dommelen (Netherlands), Leuven and Jupille (both Belgium). Interbrew also intends to rationalise its Manchester brewery (UK) by transferring 1 million hectolitres of brewing activity to other UK plants, Magor and Preston. As a result, the Manchester brewery will focus upon its traditional high-quality cask ale production and packaging.....www.e-malt.com

As previously announced, on September 5, Carlsberg A/S has launched a repurchase of own shares within a framework of maximum DKK 1 billion. The repurchase will be realized in the market on an ongoing basis during the period until the next Annual General Meeting. According to the Danish Securities Trading Act, section 28, it is known that Carlsberg A/S now has repurchased a total of 634,886 A-shares and 497,072 B-shares. The Company's holding of own shares now accounts for 2.1% of the Company's total share capital. Before the repurchase, Carlsberg A/S’ portfolio of own shares accounted for less than 2% of the total share capital

The Hungarian largest brewer, Brau Union Hungaria Rt, reported a pre-tax profit of about HUF 1.1 billion ($ 4.1 million) in the first half of 2002, down 29.8% versus the first half year of 2001. The Austrian beer group, Braw Union AG, owns 85.3% of Brau Union Hungaria Rt. The decline was caused by the rising costs, the company said. Bear sales reached HUF 15 billion, up by 8.5% and sales revenues increased by 11.8% to HUF 16.1 billion. However, in volume terms, beer sales increased by only 0.8% to 934900 hl. Hence, Brau Union’s market share went down from 27.8% to 26.7% in the period under review.

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

2. Malt markets and prices

Maltsters are having a difficult time this week, to calculate their malt prices. The malting barley markets is on fire, prices go up daily, and this due the great demand from all over the world. First EU lots have been sold to the export, and more inquiries enter the market. Malting barley prices have shot up EUR 10,- and more within a week. Therefore, EU maltsters, who partly still need to cover their barley supply,will gladly follow the upward trend with their malt prices; remains to be seen at what level.

Theoretical malt prices for crop 2001 and 2002 are available on site www.e-malt.com

3. Malting barley prices - all prices are nominal, our quotes reflect recent business done, but due to the market being in uproar, several quotes might be incorrect.

Malting barley prices, French barley prices

EURO = USD 0.9756 September 11, 2002
Crop year		2002
Parity		FOB Creil
Position		July 2002
Type	Variety	EURO	USD
2RS	Prisma	nq	nq
2RS	Scarlett	134.0 - 138.0	131.0 - 135.0
2RS	Aspen	133.0 - 137.0	130.0 - 134.0
2RS	Optic	132.0 - 136.0	129.0 - 133.0
2RS	Nevada	130.0 - 134.0	127.0 - 131.0
2RS	Astoria	129.0 - 133.0	126.0 - 130.0
2RS	Cork	129.0 - 133.0	126.0 - 130.0
6RW	Esterel	113.0 - 117.0	110.5 - 114.5
6RW	Maeva	nq	nq

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