E-Malt.com Flash 52a. December 20

India: Scottish & Newcastle combines its Indian beer operations with United Breweries to create the leading Indian brewer. Scottish & Newcastle (“S&N”) announced on December 19 that it has reached an agreement to invest...more info

Germany: German soccer fans will be able to drink their home brew at the 2006 World Cup. Fears that German beer would be banned at the 2006 World Cup finals disappeared on Tuesday, December 21, when the American company holding stadium beverage rights agreed that German beer could be sold to fans. According to Reuters, a spokesman for the 2006 World Cup organising committee said Anheuser-Busch, which paid $40 million as one of the tournament's 15 sponsors, reached a deal with Bitburger allowing the German brewer to sell its beer in the 12 World Cup venues. In return, Bitburger will drop its long legal battle against Anheuser-Busch advertising its top "Bud" brand across Germany on grounds consumers might confuse it with its own "Bit" brand. "It's good news for German beer fans," Jens Grittner, a spokesman for the 2006 organising committee, told Reuters. "They can all calm down now. There will be German beer in the stadiums after all." Germans, among the world's leading consumers of beer, are abundantly proud of their strong brews. Exported to countries worldwide, German beer may be better-known and certainly better-loved than its team, which won the World Cup three times. "Beer is an extraordinarily sensitive topic in Germany," said Grittner, referring to the protests that erupted over reports German beer would be banned from the World Cup venues because Anheuser-Busch holds the rights. Grittner said that under the agreement Bitburger will be allowed to sell its beer in the stadiums but it won't be allowed to put up advertising. He said Anheuser-Busch was primarily interested in its advertising at the World Cup stadiums. "There are other more pressing issues facing the organising committee but for the public in Germany beer was a very touchy issue," Grittner said. "We're glad it's resolved now." Even though beer is one of the leading beverages in Germany, where a Beer Purity Law of 1516 is still in place, there are no large breweries with the means to bid for the World Cup rights. Business is divided up by among more than 1,200 breweries. Germans are the world's third largest per-capita consumers of beer, drinking 117.5 litres last year, behind only the Czech Republic and Ireland. "We never gave up hope that there would be a happy ending to the German beer question," said Grittner.

USA: The U.S. government and the Anheuser-Busch Co. claimed victory on Tuesday, December 21 in a World Trade Organization battle to protect the Budweiser brand name against use ...more info

Hungary: Brau Union Hungaria, one of Hungary's three leading breweries, is to shed 17% of its workforce early next year in a bid to reduce costs and remain competitive in ...more info

World’s major brewers: The creation of InBev in August 2004 has resulted in a new leader at the top of the global beer industry rankings - at least by volume. Historically amalgamated sales of 143.6 million hectolitres for 2003 push InBev ahead of SABMiller and Anheuser-Busch. However, both of these brewers rank above the new volume leader in terms of value sales. As Scottish & Newcastle and Carlsberg further their partnership through an on-trade technical service J-V and Heineken takes over the distribution of FEMSA brands in the US, further industry alliances and consolidation seem likely. However, opportunity to create more "mega" brewers is limited, Canadean revealed in a report on December 16. M&A activity is most likely to continue occurring at a local level. Brewers are already targeting the emerging markets of Russia and China and, despite its mature nature, Germany. In China, producers are stamping out their own territory, whilst in Russia they face the altogether different task of gaining ground on BBH. The major brewers continue to attach considerable importance to Germany. In 2004 Carlsberg has purchased Holsten; Heineken has progressed in the southern regions through an indirect share acquisition, whilst InBev, now owner of Spaten, is investing 200-300 million in a new brewery. Yet generating adequate returns could prove challenging: Germany's beer market is mature and characterised by a high degree of loyalty to local brands.

Japan: Sapporo Breweries Ltd. beer-like drink Draft One is a big hit with consumers. In legal terms, the drink is neither a beer nor the low-malt drink known as happoshu...more info

Malt News

Italy: In 2003 Italy produced 56,547 tonnes of malt a 4.3% increase versus 2002 when Italy’s malt production totalled 54,221 tonnes, Italy Brewers Association, Assobirra, published in December 2004. Meanwhile malt production in 2003 decreased 7.9% versus 2001 production (61,407 tonnes). In 2003 Italy imported 422.24 tonnes of roasted malt (the biggest quantities are: 208.04 tonnes from Germany and 131.45 from Austria) and 111,191 tonnes of unroasted malt (the biggest quantities are: 75,892.36 tonnes from France, 28,895.86 tonnes from Germany, 3,972 from Austria and 2,310.5 tonnes from UK). Four malthouses are activating in Italy: Saplo Spa, Pomezia (Roma), Agro Alimentare Sud Spa and Melfi (Potenza).

Barley News

World barley trade 2003/2004: United States Department of Agriculture (USDA) published on December 13 its latest estimation of world trade changes of barley in 2003/2004. According to USDA, 2003/2004 Australia ...more info

Ukraine: Last week Ukrainian barley prices started rising, due to Tunis as well as Middle East countries’ having recently made big barley purchases and domestic market’s barley stocks getting depleted, Agro Perspectiva revealed on December 20. Last tenders indicate Ukrainian barley’s export prices within US$132-137/t (FOB Black Sea ports) until Dec this year; that’s why, growing tendency’s continuation is to be expected on this market. Within examined week, feed barley export prices were US$118-123/t (CPT port), with average price equaling to ˜ US$119/t. UAH prices have established within UAH680-710/t (CPT Black Sea ports). Maximal sale prices (offered, as usual, in Big Odessa’s ports: Odessa, Yuzhniy, Ilyichivsk) were ˜ US$700-720/t. In Azov Sea ports (Mariupol, Berdiansk) feed barley prices remain low, due to traders’ slack activity. Feed barley is bought UAH590-610/t (CPT), feed wheat - UAH570-590/t (CPT).

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 2005 are available on site www.e-malt.com/MarketPrices

Malting barley prices. French barley prices.

Nominal prices.

nq - Not quoted
Prices for Danish and UK malting barley are available on site www.e-malt.com/MarketPrices

Table of the week

USA Barley Supply and Distribution

MY June/May, TY Oct/Sept	1999/00	2000/01	2001/02	2002/03	2003/04	2004/05
Area harvested, thousand ha	1,851	2,104	1,729	1,669	1,913	1,627
Yield, t/ha	3.2	3.3	3.1	3.0	3.2	3.7
Production, thousand metric t	5,922	6,919	5,407	4,940	6,059	6,080
Imports / Mkt Year, thousand metric t	602	636	521	402	450	435
Imports / Trade Year, thousand metric t	644	663	538	282	498	450
Exports / Mkt Year, thousand metric t	613	1,258	575	659	409	327
Exports / Trade Year, thousand metric t	853	1,068	517	552	357	450
Feed Cons., thousand metric t	2,827	2,663	1,915	1,413	1,245	2,395
Total Cons., thousand metric t	6,571	6,407	5,661	5,179	4,991	6,139
Ending Stocks, thousand metric t	2,424	2,314	2,006	1,510	2,619	2,668

Source: USDA, December 2004

Graph of the week
Italy Beer Market

Agenda

November 2004:
World Brewing Academy Applied Brewing Techniques. Munich, Germany;
World Brewing Academy Concise Course in Brewing Technology. Chicago, Illinois, United States;
INTERNATIONAL EXH FOR FOOD & DRINK INDUSTRY / WORLD FOOD UKRAINE 2004;
INT'L EXH OF WINES, ALCOHOLIC & NON ALCOHOLIC DRINKS & PROTECTION EQUIPMENT / EXPO DRINK 2004. Romania;
TALLINN FOODFEST 2004;
Belgian Beer Fest, Boston MA;
Teach a Friend to Brew Day;
FOOD PROCESSING MACHINERY EXPO 2004;
FISPAL RECIFE 2004 / INTERNATIONAL FOOD FAIR. Brazil.;
BRAU Beviale 2004. Nürnberg, Germany.;
Brewers' Association of America Conference;
Fall Fest-Of-Ale. Janesville, Wisconsin, United States;
Accrington Beer Festival. UK;
FOODAPEST 2004. 7th International Food, Drink and Food Processing Trade Fair;
INTERNATIONAL EXH FOR FOOD INGREDIENTS, ADDITIVES & FLAVOURINGS / INGREDIENTS RUSSIA 2004;
BELPRODUKT International Exhibition for Food and Beverages. Minsk, Belarus ;

December 2004:
FOODEX Food, Beverages and Food Technologies Fair. Ankara, Turkey;
Eten & Genieten Food, Beverages and Kitchen Supplies Exhibition. Amsterdam, Netherlands;
Americas Food & beverage Show and Conference;
Holiday Ale Festival;
Sint Niklaas Visits Brewery Ommegang;
IWEX 2004;
WORLD OF FOOD INDIA 2004;
KerstBierFestival 10th edition! Belgium;
VIETFOOD & DRINK 2004 / 3RD INTERNATIONAL EXH ON FOOD AND DRINK;

January 2005:
Big Beers, Belgians & Barleywines Festival. Vail CO;
35th Barley Improvement Conference. The American Malting Barley Association;
VIETFOOD (HANOI) 2005;
Atlanta Cask Ale Tasting;

More events are available on site e-malt.com