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E-Malt.com Newsletter 43a
October 20 - October 22, 2014
Quote of the Week
"If you're going through hell, keep going."
Winston Churchill
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Currency Rates
Base Currency: US Dollar
on October 22, 2014 |
Base Currency: Canadian Dollar
on October 22, 2014 |
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1 USD = 0.7828 EUR
1 USD = 0.6191 GBP
1 USD = 1.1255 CAD
1 USD = 1.1366 AUD
1 USD = 106.7310 JPY
1 USD = 2.4742 BRL
1 USD = 41.0228 RUB
1 USD = 6.1412 CNY
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1 CAD = 0.8886 USD
1 CAD = 0.5502 GBP
1 CAD = 0.6956 EUR
1 CAD = 1.0100 AUD
1 CAD = 94.8437 JPY
1 CAD = 2.1986 BRL
1 CAD = 36.4537 RUB
1 CAD = 5.4572 CNY
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Currency Rates Chart
Equities of the Largest Breweries
USA: Constellation Brands Inc. to expand Hispanic market
...Click here
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Canada: Barley area, production, and exports forecast to decline in 2014-15
...Click here
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USA: Anheuser-Busch InBev files lawsuit to gain a distributor in Kentucky
...Click here
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USA & UK: US beer exports at their highest value since 2002 owing to craft brands
...Click here
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USA, RI: Narragansett Brewing Co. to extend its distribution
...Click here
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USA, FL: Cigar City Brewing explores new locations for an expansion brewery
...Click here
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USA, OH: Municipal Brew Works to open in Hamilton by 2015
...Click here
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USA, LA: Courtyard Brewing opens in the Lower Garden District
...Click here
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USA, TX: City Acre Brewing Co. to begin construction on its new brewpub
...Click here
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USA, MN: Lift Bridge Brewing to complete $1 mln expansion
...Click here
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UK: Malting industry working at full capacity mostly thanks to booming Scotch whisky sales
...Click here
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China: Beijing Yanjing Brewery’s Q3 net profit down 7.3%
...Click here
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Slovenia: Slovenia’s largest beer maker puts itself up for sale
...Click here
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Russia & Ukraine: Both countries harvested large barley crops of good quality this year
...Click here
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Belgium: AB InBev to invest EUR20 mln in its Louvain plant
...Click here
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Nigeria: Heineken gets regulatory approval to merge two its Nigerian subsidiaries
...Click here
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France: AB InBev’s Leffe now owns 10% market share in France
...Click here
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Sierra Leone: Heineken subsidiary cuts operations because of Ebola outbreak
...Click here
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Graph of the Week
Table of the Week
EU Malt Exports
Prices Evolution
Barley Prices
Canadian Malting and Feed Barley Prices
US Malting and Feed Barley Prices
French Malting and Feed Barley Prices
Theoretical Malt Prices
Canadian Malt Prices
US Malt Prices
Theoretical EU Malt Prices
Scientific Digest
From hops to coffee?
ABSTRACT
Analytical tools to easily differentiate hop varieties
are still not established. These US researchers looked
into the possibilities of NMR (nuclear magnetic
resonance) to characterise hop varieties in beer. They
found that though the spectra of Magnum and
Cascade hops are not distinctly different, each single
dry-hopped beer contained various peaks that were
absent in the late hopped version. Among these they
were able to identify trigonelline in hops and beer, a
compound of importance as a flavour precursor in
coffee! Further work will focus on identifying and
assigning metabolites to unknown peaks in beer
brewed with late hopping and/or dry hopping.
Read more
Source: Barth Innovations
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These Days in Business History
October 20
1928 magnate/multi-millionaire Ken Morrison was born, executive chairman of the Wm Morrison Supermarkets plc, the fourth largest chain of supermarkets in the United Kingdom
1983 IBM-PC DOS Version 2.1 released
1973 OPEC oil embargo begins
October 21
1492 Columbus discovers America (Oct 12, 1492 Julian calendar)
1879 Thomas Edison perfects carbonized cotton filament light bulb
1987 Nobel prize for economy awarded to Robert M. Solow
October 22
1897 World's 1st car dealer opens in London
1979 Walt Disney World's 100-millionth guest
1997 Yahoo completes purchase of Four11
Agenda
News Articles
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USA: Constellation Brands Inc. to expand Hispanic market
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Constellation Brands Inc. of Victor, the beverage behemoth whose serendipitous move into imported beer has made a lot of people rich, begs comparison to
...More info on site
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Canada: Barley area, production, and exports forecast to decline in 2014-15
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For 2014-14, barley area seeded and harvested in Canada decreased to a record low level from 2013-14 (to 2.408 mln ha seeded and 2.134
...More info on site
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USA: Anheuser-Busch InBev files lawsuit to gain a distributor in Kentucky
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Anheuser-Busch InBev has filed a lawsuit in Kentucky asking the state's chief alcohol regulator to grant the company an application to acquire a distributor in the state, bizjournals.com reported on October, 21.
The suit, filed in Kentucky's Franklin County, said a request for a distributor's license has been pending for more than 60 days and asked the court to compel the Kentucky Department of Alcoholic Beverage Control to immediately grant the application. Additionally, A-B InBev asked the court to make the beverage control department dismiss appeals filed against the application or to immediately schedule a hearing.
In August, Anheuser-Busch applied for a distributor's license in the city of Owensboro, Kentucky. The license request came out of a deal to acquire Budweiser of Owensboro, a distribution company owned by Tennessee-based Hand Family Companies. The request was approved at the time by the Owensboro Alcoholic Beverage Control administrator, amid protests by some business and industry groups.
Both local and national organizations have filed letters of protest with the beverage control department asking that it not allow A-B InBev to gain control of beer distribution in the state. A letter by industry watchdog Alcohol Justice filed with the beverage control department asked the department to deny
...More info on site
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USA & UK: US beer exports at their highest value since 2002 owing to craft brands
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US beer exports to the UK have increased tenfold in the past decade and are at their highest value since 2002, according to US trade data. The trend is driven in part by the rise of small craft brewers, who make stronger-tasting beers, The Financial Times reported on October 19.
The renaissance in beer brewing in the US has been nothing short of remarkable.
Small brewers promising relief from weak, mainstream lagers have moved from the realms of hobbyists to 15 per cent of the market by value in the US, according to the Brewers Association, a US trade group. There are now over 4,500 breweries in the US, more than double the number in 2004.
“The craft ale scene in the US is incredibly vibrant,” says Simon Emeny, chief executive of Fuller’s, a UK brewery. In March this year, the company became the UK distributor for Sierra Nevada, the second-largest US craft beer producer.
The UK is the third-biggest destination for US craft beer after Canada and Sweden, but as a proportion of overall UK sales it is still a niche market.
“Although it only represents 2.5 per cent of total beer sales, it has provided a degree of invigoration to the [market], with
...More info on site
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USA & UK: Arran Brewery sets up operation in Texas
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Arran Brewery has set up an operation in Texas to build American sales of its brands and other craft beers from around the UK, heraldscotland.com reported on October, 21.
The new operation is headed by Karen Mills, a former finance director of the US Rice Producers Association, who has been handed the task of obtaining import licences for the company in 50 states.
Although the bulk of craft beer is sold on the east and west coasts of the US, Texas was chosen thanks to the relative ease of setting up the company there.
Gerald Michaluk, managing director of Arran Brewery, said his company will look to export its core Arran Blonde, Dark and Brewery Dug brands, alongside craft beers from other breweries, into its US distribution network.
He said this approach reduced the risk and expense faced by small producers aiming to break into the US.
This is partly because of the "three-tier system", which means an exporter must have an importer which is independent of its wholesaler and in turn the retailers, and also because each state has its own regulatory requirements.
Mr Michaluk said a further attraction of trading in the US was getting access to the financial markets.
He said: "America's craft-beer sector
...More info on site
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USA, RI: Narragansett Brewing Co. to extend its distribution
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When Yuengling announced it would be launching into Massachusetts and Rhode Island earlier this year, Narragansett Beer president Mark Hellendrung expected sales to take a hit, brewbound.com reported on October, 16.
The question was whether it would sink the brand. Hellendrung feared that sales of his company’s flagship lager – which makes up about 75 percent of Gansett’s total production – would decline, and that New England beer drinkers would abandon it in favor of a Yuengling varietal that had been absent from the Massachusetts market for more than 20 years.
After all, D.G. Yuengling, the 185-year-old Pennsylvania brewery currently ranked as the second-largest craft beer maker in the country by the Brewers Association, was predicted to steamroll into a Massachusetts marketplace that hadn’t seen the company’s products since 1992. Millions of dollars were being invested into rollout initiatives.
As a result, Yuengling reportedly snatched a nine share of Massachusetts’ beer sales during the March rollout phase, according to Hellendrung. Yuengling COO Dave Casinelli confirmed the figure and even mentioned that in some markets, the brand was “running double-digits” during the first several weeks of the launch.
But while growth might have slowed, Hellendrung believes Narragansett has managed to “weather the storm,” he said.
“We
...More info on site
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USA, FL: Cigar City Brewing explores new locations for an expansion brewery
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Florida-based Cigar City Brewing is considering both Western North Carolina and Upstate South Carolina as possible locations for an expansion brewery, the Asheville Brewers Alliance said on October, 16.
Joe Redner, owner and founder of Cigar City Brewing of Tampa, Fla., is in the Asheville area to scout possible brewery locations, said Joe Rowland, co-owner of Nantahala Brewing and president of the Asheville Brewers Alliance, a non-profit organization representing local breweries. Redner is also considering locations in Travelers Rest, S.C. and Florida, Rowland said.
Cigar City is looking to build a 50-barrel brewhouse, similar in size to the system used by Asheville's Highland Brewing Co., Rowland said. The system would back up the main Cigar City brewery in Tampa.
"This would be huge," Rowland said. There is no word yet on when the decision would be made or a brewery built.
Cigar City does not distribute its beers in Western North Carolina but is highly regarded in the craft beer industry for such beers as Jai Alai IPA, Florida Cracker White Ale and Invasion Pale Ale.
If it chose to build in Western North Carolina, Cigar City would join such national craft brands as Oskar Blues in Brevard, Sierra Nevada in Mills River and New
...More info on site
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USA, MT: Kettlehouse Brewing Company to expand
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Kettlehouse Brewing Company owner and co-founder Tim O'Leary announced on October, 17 that the brewery intends to purchase an 18-acre plot in Bonner on which to construct a large production brewery.
The plan comes in response to growing demand for and recent shortages of Kettlehouse's canned beers—Cold Smoke Scotch Ale, Double Haul IPA and Eddy Out Pale Ale. O'Leary added that when the brewery began canning in 2006, it had "very modest production goals in mind," but did not plan for the level of success that canned craft beer would experience. Kettlehouse expects to close on the property next spring; the new facility could be producing beer by 2016.
"In the meantime, we are producing all we can make and guarantee to be great tasting and award winning," O'Leary wrote. "We will do our best to plan ahead and stock up before summer 2015."
Kettlehouse has grown and evolved a number of times since its early days as a brew-on-premise location, most recently with a major business reconfiguration in 2013. Not only did the taproom expand its space, but the location also secured new licensing allowing it to sell more than the 48-ounce limit imposed under a brewery license. The restructuring freed
...More info on site
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USA, OH: Municipal Brew Works to open in Hamilton by 2015
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Business incubator The Hamilton Mill is teaming with a group of local brewers to open the Municipal Brew Works, wcpo.com reported on October, 17.
“We're excited to reignite craft brewing in Hamilton - and we appreciate the tremendous opportunity to introduce Municipal Brew Works to Hamilton and the region,” project member Jim Goodman said.
Hamilton Mill Executive Director Chris Lawson characterized craft brewing as the epitome of the “maker culture” and said it aligns with the incubators mission of paving a new future by being inspired by the city’s past.
Lawson said the new brewery will help illustrate the attractiveness of Hamilton’s downtown area.
The Municipal Brew Works was started with six founding partners, three of whom live in Hamilton. The group said they have nearly 50 years of brewing experience between the septuplet.
Once the construction is complete, Municipal Brew Works hopes to employ 12 people. Their goal is to produce about 2,500 bbls per year.
The business will also have a taproom and they plan on finishing the remodel by spring 2015.
In addition to running a production facility, the Municipal Brew Works partners said they hope to nurture the local brewing scene by hosting classes, partnering with local homebrew clubs and produce limited run
...More info on site
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USA, OH: Aqueduct Brewing opened in Akron
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Aqueduct Brewing Co. opened its doors on October, 20 — and it didn’t take long before Akron’s newest nanobrewery and tasting room was crowded, ohio.com reported on October, 21.
Aqueduct is offering seven beers on draft and has capacity for eight. Right now, there’s a stout, amber, honey wit, orange coriander ale, pale ale, pilsner and pumpkin ale.
The brewery also has growlers and kegs to go.
“We are so excited,” Co-owner Robert Hernandez said. “It’s been a long time coming. We have been working feverishly the last few months and we are here.”
He launched the small brewery, which employs a two-barrel brewing system, with co-owner Dale Dorn.
Aqueduct is in the same complex that houses Thirsty Dog Brewing Co. and Aqueduct hopes craft beer drinkers flow between the two operations.
“We’re hoping to serve some of the finest beers you’ll ever taste,” Hernandez said.
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USA, LA: Courtyard Brewing opens in the Lower Garden District
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Scott Wood and Lindsay Hellwig will open Courtyard Brewery in the Lower Garden District Thursday, Oct. 23, bestofneworleans.com reported on October, 17
Wood, who's the head brewer, says he and Hellwig been receiving at least half a dozen inquiries per day about the brewery opening: “It’s pretty crazy how much people are bugging us about this.”
The Louisiana Alcohol and Tobacco Commission (ATC) granted Courtyard its state license to brew and serve beer at the beginning of the month, and Wood has begun brewing test batches. Since his beer will take several weeks to come online, however, the first few weeks will feature special guest draft beer while the house beer is brewing. The brewery has 13 taps, but will start with 6 to 8 taps until Wood's beer goes on.
Wood also says that he, NOLA Brewing, and several New Orleans breweries in planning are working to start a New Orleans-specific guild to focus on lobbying and promoting awareness of zoning needs of small local breweries. “We want to work with the CPC [City Planning Commission] and City Council toward promoting local breweries, supporting startups, and modernizing city laws and ordinances,” Wood says, adding, “It’s a really interesting time for beer in
...More info on site
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USA, TX: City Acre Brewing Co. to begin construction on its new brewpub
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City Acre Brewing Co. has received approval from the City of Houston to begin construction on its new brewpub, bizjournal.com reported on October, 17.
Construction will likely not be completed until 2015, however City Acre hopes to begin hosting events in the spring. The brewpub plans to serve beer that is brewed on-site. City Acre will also offer a mix of other Texas beer options.
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USA, MN: Lift Bridge Brewing to complete $1 mln expansion
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Stillwater-based Lift Bridge Brewing is nearly complete with a $1 mln expansion that will let it boost beer production by 30 percent, bizjournals.com reported on October, 17.
The investment will increase the company's annual beer output from 10,000 to 13,000 barrels — enough to expand distribution in places like Mankato and Eau Claire, which owners see as natural growth markets for beers like Farm Girl saison and Hop Dish IPA.
Another benefit for Lift Bridge is a new, 4,000-square-foot quality control lab, which will be used for testing limited-run beers.
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UK: Malting industry working at full capacity mostly thanks to booming Scotch whisky sales
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The British malting industry is working at full capacity of almost 1.6 mln tons of malt, thanks to the boom of Scotch whisky sales,
...More info on site
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World: Heineken’s beer sales decline in Q3 2014
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Heineken, the world's third largest brewer, reported on October 22 lower than expected beer sales in the third quarter as Europeans drank less during
...More info on site
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China: Beijing Yanjing Brewery’s Q3 net profit down 7.3%
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Beijing Yanjing Brewery Co Ltd said on October 16 its Q3 net profit was down 7.3 percent y/y at 334.5 million yuan (54.63 million
...More info on site
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Slovenia: Slovenia’s largest beer maker puts itself up for sale
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Slovenia's largest beer maker Pivovarna Lasko has put itself up for sale and wants the buyer to inject at least 75 million euros ($96
...More info on site
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Russia & Ukraine: Both countries harvested large barley crops of good quality this year
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Both Russia and Ukraine have harvested large barley crops of predominantly good quality, industry sources reported early in October.
Estimates of the Russian crop
...More info on site
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Belgium: AB InBev to invest EUR20 mln in its Louvain plant
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World’s leading beer maker AB InBev will invest more than EUR20 mln in its Louvain brewery with main part of the funds being allocated for the installation of a seventh production line, Le Soir reported on October 21.
The new line will allow the company to produce an additional 800 thousand hl of beer per year. It is expected to be operational by spring 2015, according to a report by Trends, which, however, was not confirmed by the brewer, as its representatives were unavailable for comments when contacted by journalists.
AB InBev produces its Stella Artois, Jupiler and Leffe beers at the Louvain brewery. Around 70% of the plant’s output is exported to France, the US, Canada, and Italy.
Besides, as reported by Trends, the group is getting ready to launch in Belgium its new rum-flavoured Cubanisto beer which is already available in France and in the UK.
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Nigeria: Heineken gets regulatory approval to merge two its Nigerian subsidiaries
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Heineken NV has received regulatory approvals from the Nigeria’s Securities and Exchange Commission (SEC) to merge Nigeria Breweries Limited (NBL), Nigeria’s biggest brewer, with Consolidated Breweries Limited, both under the control of the Dutch-based beer maker, Ventures Africa reported on October 15.
In May, Heineken went public with its intention to merge both companies to boost efficiency and simplify administration.
Heineken holds arguably the largest and most diversified portfolio of alcoholic and non-alcoholic drinks in Nigeria. Its subsidiary, NBL – in which it holds a 54.1 percent share – produces top selling brands including Star Lager Beer, Gulder Lager Beer, Maltina, Legend Extra Stout, Amstel Malta, Heineken Lager Beer, Fayrouz as well as Goldberg Lager Beer, and Malta Gold.
Consolidated Breweries, however is Nigeria’s third largest brewery and producer of “33” Export Lager Beer, Maltex Malt Drink, Hi-Malt and Turbo King Dark Ale. Together, the newly formed company will consolidate its position as the country’s leading provider of beverages.
Though Heineken – the world third-largest brewer – controls a significant share of the beverages market in Nigeria, with its subsidiary NBL holding an estimated 60 percent of the alcoholic drinks market, the decision to merge both NBL and Consolidated Breweries confirms a growing threat
...More info on site
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France: AB InBev’s Leffe now owns 10% market share in France
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AB InBev’s Leffe brand is celebrating the achievement of a 10% market share by value in France, AC Franchise reports.
The brand managed to grow by 3.5% over the past six years. Two years ago, Leffe entered the ranks of brands which sell more than 1 mln hl in France, which translates into more than 13 glasses of 25 cl consumed every second.
According to analysts, the brand owes its success to the premiumisation strategy implemented on the French market by its owner, the world’s largest brewer AB InBev.
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Sierra Leone: Heineken subsidiary cuts operations because of Ebola outbreak
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Heineken NV’s unit in Sierra Leone has sent staff home and halted expansion plans as it joins a growing number of companies cutting operations in the West African nations hit hardest by an outbreak of Ebola, Bloomberg reported on October 20.
“The Ebola virus disease has severely affected our operations in terms of sales, production and manpower,” said Aminata Kasim-Carew, spokeswoman for Sierra Leone Brewery Ltd. Sales have dropped 70 percent, she said, without giving details. “Most of our staff has been sent on leave.”
The outbreak, which has killed 4,400 people mainly in Sierra Leone, Liberia and Guinea since it was first reported in December, is the deadliest on record. Airlines including British Airways halted flights, mining and agriculture companies delayed production and governments have slashed economic growth forecasts as they battle to contain the disease.
Sierra Leone needs as much as $1 billion to cover Ebola expenses and the growth outlook for this year was cut to between 7 percent and 8 percent from an earlier forecast of 14 percent, Finance Minister Kaifala Marah said in an interview with Bloomberg TV Africa on Oct. 11.
President Ernest Bai Koroma ordered nightclubs and video centers to close on Aug. 7 because of Ebola.
While
...More info on site
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