E-Malt.com weekly newsletter
Week September 02 - September 08, 2002

1. Industry news.   2. Malt markets and prices 3. Malting barley prices.  

1. Industry news

On September 4, Interbrew, The World’s Local Brewer, announced the signing of an agreement with Diageo, according to which the import and distribution rights for Bass® Ale in the USA are transferred to Interbrew. The deal is worth about US$ 105 million (US$ 79 million after tax). By the force of this agreement, Interbrew will obtain operating control of the Bass® Ale brand in the USA by June 30, 2003. The brand will give Interbrew operational control of 7 out of the top 12 best-selling imported beers in the USA market, as well as 23.7% of the import area. Bass Ale accounts for more than 25% of all super-premium imported beers in the US. "We look forward to working with Diageo on developing Bass® Ale in the US market during the transition period until June 2003," said Hugo Powell, Interbrew's CEO. "I firmly believe that Bass® Ale will considerably enhance our portfolio of brands, and strengthen our position in the rapidly growing import segment of the market."

The second-biggest Netherlandish brewer Grolsch NV has registered a net profit of EUR 11.9 million for the firs half of 2002, which is a 5.7% rise against the last year result. Operating profit rose by 12.9% to EUR 16.3 million. Sales in the Netherlands were largely flat this year, however the company said it was experiencing growth in the UK, US and Canada.

Ukrainian beer exports rose by 2.5% up to 10.32 million litres (USD 3.05 million) in July compared to June, Ukrainian News reported. According to the same source, during the January-July period, Ukraine exported about 62.79 million liters of beer for USD 17.33 million.

Japanese brewer, Sapporo Breweries Ltd, has planned to increase its production efficiency by reducing its total number of breweries from eight to six. The company said the reorganisation would reduce its production costs by Y5 billion a year. Sapporo Breweries Ltd will cease operations at its brewery in Hokkaido, in northern Japan, by the end of March 2003 and at its Saitama brewery, north of Tokyo, after summer 2003.

"We inform you that Bavaria SA's board has authorised its legal representative to prepare an offer to acquire up to 25% of the shares in Cervezas Nacionales CA for an amount up to $152 million," said Bavaria's president Ricardo Obregon in a statement. Bavaria already holds 67.5% sake of the Ecuadorean brewer, Compania de Cervezas Nacionales. The company also controls 72.5% share of another Ecuadorean brewer, Cerveceria Andina SA. Consequently, Bavaria SA holds about 92% of Ecuador’s beer market. Another plan of the company is to invest $ 225 million in building a new plant in the Colombian city of Cali, modernizing a plant in Bucaramanga and expanding output at its domestic Aquila and Union units. These actions are just a part of a US$ 1 billion investment the company plans to spend over to expend its influence in the region.

Carlsberg Breweries A/S it is to invest about EUR 30.7 million ($ 30 million) in upgrading production facilities at its two recently acquired brewing subsidiaries in Bulgaria, Shumensko Pivo and Pirinsko Pivo. Both breweries are being upgraded to prepare for the production of Carlsberg’s leading brands, Carlsberg and Tuborg, scheduled to start in summer 2003. Carlsberg is reinforcing Pirinsko Pivo in the southwestern region of Bulgaria and plans to develop Shumensko Pivo as a premium national brand. Carsberg holds 59.4% share in Shumensko Pivo, acquired in June and 67% participation in Pirinsko Pivo purchased in early August this year.

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

2. Malt markets and prices

Malt markets momentarily are quiet, some inquiries entered the market, but no business to report yet. The final barley crop outcome is still uncertain, but since further pessimistic news hit the market like - an even smaller crop than expected in Australia - rain hampering the Canadian harvest - frost in important Brazilian areas, we might soon see business getting started.

Theoretical malt prices.

  EURO = USD 0.9973 September 04, 2002 
Crop year  2002 
Parity  FOB Antwerp 
Position  Oct 2002-Sept 2003 
Conditioning  Bulk   In bags  Bulk containers  In bags in containers 
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Prisma  nq  nq  nq  nq  nq  nq  nq  nq 
2RS  Scarlett  287.00  286.00  302.00  301.50  299.00  298.50  308.50  307.50 
2RS  Aspen  285.50  285.00  301.00  300.00  298.00  297.00  307.00  306.50 
2RS  Optic  284.50  283.50  299.50  299.00  296.50  296.00  306.00  305.00 
2RS  Nevada  282.00  281.00  297.50  296.50  294.50  293.50  303.50  302.50 
2RS  Astoria  279.50  278.50  294.50  294.00  291.50  291.00  301.00  300.00 
2RS  Cork   279.50  278.50  294.50  294.00  291.50  291.00  301.00  300.00 
2RS   Average price  283.50  283.00  299.00  298.00  296.00  295.00  305.00  304.50 
2RS  FAQ  nq  nq  nq  nq  nq  nq  nq  nq 
6RW  Esterel   260.50  259.50  275.50  275.00  272.50  272.00  282.00  281.00 

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

3. Malting barley prices - all prices are nominal, our quotes reflect recent business done and asking prices.

Malting barley prices, French barley prices

EURO = USD 0.9973 September 04, 2002 
 Crop year   2002 
 Parity   FOB Creil 
 Position   July 2002 
Type   Variety  EURO  USD 
2RS  Prisma  nq  nq 
2RS  Scarlett  131.00  131.00 
2RS  Aspen  130.00  130.00 
2RS  Optic  129.00  129.00 
2RS  Nevada  127.00  127.00 
2RS  Astoria  125.00  125.00 
2RS  Cork   125.00  125.00 
6RW  Esterel   109.50  109.50 
6RW  Maeva  nq  nq 
nq - Not quoted
Prices for Danish and UK malting barley are available on site www.e-malt.com

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