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E-Malt.com Newsletter 37b
September 12 - September 15, 2019
Quote of the Week
The brewery is the best drugstore.
Old German folk wisdom
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Currency Rates
Base Currency: US Dollar
on September 13, 2019 |
Base Currency: Canadian Dollar
on September 13, 2019 |
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1 USD = 0.9064 EUR
1 USD = 0.8108 GBP
1 USD = 1.3195 CAD
1 USD = 1.4545 AUD
1 USD = 107.9900 JPY
1 USD = 4.0600 BRL
1 USD = 65.0144 RUB
1 USD = 7.0876 CNY
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1 CAD = 0.7578 USD
1 CAD = 0.6144 GBP
1 CAD = 0.6869 EUR
1 CAD = 1.1021 AUD
1 CAD = 81.8300 JPY
1 CAD = 3.0765 BRL
1 CAD = 49.2645 RUB
1 CAD = 5.3706 CNY
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Currency Rates Chart
Equities of the Largest Breweries
Canada: Concerns over malting barley quality grow amid cool and wet weather
...Click here
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USA: Craft Brew Alliance maintains full-year guidance with the exception of shipments and depletions
...Click here
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USA, CA & MI: Two Roots Brewing Co. to acquire Rochester Mills Production Brewery
...Click here
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USA, TN: 1907 Brewing Company coming to Morristown by January
...Click here
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USA, AZ: Front Pourch Brewing opens up shop in Phoenix
...Click here
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USA, TN: Bad Idea Brewing Company opens its doors in Columbia
...Click here
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USA, PA: Allusion Brewing Company purchases building for future microbrewery
...Click here
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USA, RI: Narragansett Beer acquires property for new brewery in Providence
...Click here
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USA, CA: Three Stacks and a Rock Brewing Company to move to a bigger location in Morro Bay
...Click here
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Hong Kong: AB InBev planning to re-launch Hong Kong IPO - sources
...Click here
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World: USDA increases forecast for world barley production, trade in 2019/20
...Click here
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France: Barley production expected at record 13.6 mln tonnes in 2019/20
...Click here
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South Africa: Alcohol consumption down due to tough economy, higher taxes
...Click here
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South Africa: Distell says AB InBev, SABMiller breached merger conditions
...Click here
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Thailand: Finance Ministry considers raising excise tax on zero-alcohol beer
...Click here
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Australia: Australia launches new malting barley accreditation system
...Click here
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Japan: Kirin Brewery to increase production of Heineken ahead of Rugby World Cup
...Click here
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Hungary: Heineken sees increased demand for its alcohol-free beers
...Click here
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Australia & Japan: Asahi launches collaboration beer Two Suns Premium Dry
...Click here
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Graph of the Week
Table of the Week
Brewing Industry in Belgium 1900-2018
Barley Prices
Theoretical Malt Prices
These Days in Business History
12 September
1624 - 1st submarine tested (London)
1836 - The New York Stock Exchange prohibits its members from trading in the streets outside
1933 - Leo Szilard, waiting for a red light on Southampton Row in Bloomsbury, conceives the idea of the nuclear chain reaction
1970 - 1st Concorde lands at Heathrow airport
13 September
1898 - Hannibal Goodwin patents celluloid photographic film
1905 - 1st airplane flight in Europe
1956 - The IBM 305 RAMAC is introduced, the first commercial computer to use disk storage
1970 - IBM announces System 370 computer
14 September
1886 - George K Anderson of Memphis, Tennessee patents typewriter ribbon
1899 - Henry Bliss becomes 1st automobile fatality (NY)
1960 - Organization of Petroleum Exporting Countries (OPEC) forms
2000 - Microsoft releases Windows ME
15 September
1857 - Timothy Alder patents typesetting machine
1928 - Alexander Fleming discovers penicillin
1952 - European Parliament forms in Strasbourg
1959 - The first successful photocopier, the Xerox 914, is introduced
Agenda
September 2019:
17 - 19: 10th Iberoamerican VLB Symposium Brewing & Filling Technology 2019 (Guadalajara, Mexico)
21 - 06 October: Oktoberfest 2019 (Munich, Germany)
26 - 27: Sea Brew 2019 (Bangkok, Thailand)
26 - 28: Stockholm Beer & Whisky Festival 2019 (Stockholm, Sweden)
October 2019:
03 - 05: Stockholm Beer & Whisky Festival 2019 (Stockholm, Sweden)
03 - 05: The Great American Beer Festival 2019 (Denver, USA)
24 - 26: Warsaw Beer Festival 2019 (Warsaw, Poland)
29 - 13 November: World Beer Cup 2020 (USA)
November 2019:
12 - 14: Brau Beviale 2019 (Nuremberg, Germany)
27 - 29: Drink Japan 2019 (Makuhari Messe, Japan)
December 2019:
05 - 07: Drink Technology India 2019 (New Delhi, India)
January 2020:
31 - 01 February: Braukunst Live! 2020 (Munich, Germany)
February 2020:
04 - 08: Great British Beer Festival Winter 2020 (Norwich, UK)
07 - 10: HoReCa 2020 (Athens, Greece)
07 - 09: Finest Spirits 2020 (Munich, Germany)
15 - 18: Beer Attraction 2020 (Rimini, Italy)
24 - 26: Beviale Moscow 2020 (Moscow, Russia)
March 2020:
09 - 11: 107th Brewing and Engineering Congress 2020 (Rust, Germany)
11 - 12: BeerX 2020 (Liverpool, UK)
April 2020:
19 - 22: Craft Brewers Conference & BrewExpo America 2020 (San Antonio, Texas, USA)
25 - 26: Zythos Beer Festival 2020 (Leuven, Belgium)
May 2020:
05 - 07: International Beer Strategies Conference 2020 (Munich, Germany)
13 - 15: Craft Beer China 2020 (Shanghai, China)
19 - 21: Beer 2020 (Sochi, Russia)
21 - 24: Mondial de la Biere 2020 (Montreal, Canada)
June 2020:
03 - 04: The Brewers of Europe Forum 2020 (Antwerp, Belgium)
August 2020:
07 - 08: Beervana 2020 (Wellington, New Zealand)
News Articles
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Canada: Concerns over malting barley quality grow amid cool and wet weather
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The quality of Canada’s 2019/20 barley crop remains to be seen, as cool and wet harvest conditions across much of the Prairies are raising concerns over how much will meet malt specifications, the Western Producer reported on September 11.
“We’ll lose a lot of malting barley this year, because of the weather,” said Peter Watts, managing director of the Canadian Malting Barley Technical Centre.
While the harvest is near completion in some areas of Manitoba, Watts said “it’s a real struggle this year” on a more general level across all three Prairie provinces. “There’s a lot of barley still out there that hasn’t been harvested.”
Adverse weather in the spring also split up seeding, with some of the barley crop going in early and other fields late due to rains in May. That wide planting window adds uncertainty to the final quality.
Anecdotal reports for what has come off so far are highly varied. Watts said that while there have been some reports of good quality malting barley, he had also heard of more chitting than normal. Chitted barley, also called pre-germination, refers to grain that has prematurely started to sprout before being harvested. Chitted barley can still be made into malt shortly after
...More info on site
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USA: Craft Brew Alliance maintains full-year guidance with the exception of shipments and depletions
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Craft Brew Alliance, Inc. will maintain its full-year 2019 guidance with the exception of shipments and depletions after Anheuser-Busch declined to buy the company outright in August, the Craft Brewing Business reported on September 9.
CBA’s stock declined from $12.96 before the deadline to $9.28 by the announcement, but the company still puts stock in its Master Distributor Agreement with A-B (which is still good despite the decision to not buy), plus the 300,000 barrels of contract brewing capacity for up to the next seven years.
Divestiture could still play a big part here, according to Thomas on the call: “With some of the restrictions lifted on dragging some of the blocks with us, that we would have an orientation to get rid of some of the blocks or change some of the blocks and that could take the shape of a total restructure of SG&A, it could take the shape of divestiture of some brands, it could take the shape of a lot of things.”
While shipments for portfolio anchor Kona Brewing Co. were up 10 percent in the first half of the year, significant retailer out-of-stock issues in key markets negatively impacted second quarter depletions and go-forward shipments. Additionally, lower-than-planned
...More info on site
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USA, CA & MI: Two Roots Brewing Co. to acquire Rochester Mills Production Brewery
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A San Diego-based beverage company has reached an agreement to acquire Michigan's Rochester Mills Production Brewery, The Detroit News reported on September 10.
Two Roots Brewing Co., which is a licensed trademark of California's Lighthouse Strategies (a company that deals in finance, real estate, research and other things), will join forces with Rochester Mills, which is one of the top craft beer producers in Michigan.
Two Roots makes a line of nonalcoholic, cannabis-infused craft beverages that boast a low calorie count. They also make traditional craft beers and non-alcoholic beers without cannabis.
In Rochester, Two Roots will produce non-alcoholic craft beer. They plan to send that beer to a state-licensed cannabis manufacturer who will infuse it and distribute it from there.
With this move, Two Roots will be able to meet the growing demand of their products by an additional 60,000 barrels per year and distribute to this part of the country more easily.
“As the popularity of Two Roots Brewing Co. and Two Roots continues to grow, it has become essential to keep up with the demand,” said Two Roots Brewing managing member Tim Walters in a press release. “Rochester Mills Production Brewery’s location is key for access
...More info on site
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USA, TN: 1907 Brewing Company coming to Morristown by January
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A new type of watering hole and eatery, the 1907 Brewing Company – Morristown’s soon-to-befirst craft-beer establishment – is coming to the former Higher Grounds building on Main Street, and is expected to open by January, the CitizenTribune reported on September 6.
The 1907 Brewing Company, which takes its name from the year the building was constructed, will sell no liquor or wine, and while the menu has yet to be finalized, Haley Fugate, who’s coordinating marketing and media efforts, guarantees it won’t be standard bar fare.
The restaurant will serve craft beers and ciders only, some brewed exclusively for 1907 in collaboration with a Johnson City brewmeister, and others from local and regional craft brewers. The target price is around $5 a pint, depending on the variety of beer and alcohol content, according to Fugate.
“One hundred percent it’s going to happen,” Fugate said Wednesday afternoon. “There’s nothing like this in town. We hope to help revitalize the downtown for nightlife and keep the shops open longer. We also welcome any other healthy competition to the area.”
In addition to beer for on-site consumption – like other craft breweries – 1907 will sell beer “growlers,” large take-away containers of beer meant for home
...More info on site
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USA, AZ: Front Pourch Brewing opens up shop in Phoenix
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A new brewery has opened up shop in Phoenix. The fresh arrival to Deer Valley, called Front Pourch Brewing, is located at 1611 W. Whispering Wind Drive, Suite 7, Hoodline reported on September 6.
Front Pourch Brewing provides a wide array of beer options. The menu features beers like the white wheat Jucius Malfoy with a hint of citrus, the tart sour ale Boysenberry Sour and the American-style Peripheral Pale Ale.
With a five-star rating out of five reviews on Yelp so far, Front Pourch Brewing is on its way to developing a local fan base.
Laura R., who was among the first Yelpers to review the new spot on August 30, wrote, "I absolutely love this place. It's such a great spot to grab a beer and play some darts with friends and family."
Yelper Michelle M. added, “I went to opening night. It has good beers and a lot of neighborhood people looking for a new spot to hang."
Head on over to check it out: Front Pourch Brewing is open from 3–9 p.m. on Tuesday-Saturday and 3–8 p.m. on Sunday. (It's closed on Monday.)
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USA, TN: Bad Idea Brewing Company opens its doors in Columbia
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Bad Idea Brewing Company opened the doors to its new bar and brew works inside the Columbia Arts Building this past weekend, offering a selection of creative brews at the first brick and mortar location from the team of longtime home brewers, The Daily Herald reported on September 8.
In the middle of the Bad Idea’s opening weekend on September 7, the taproom was filled with visitors eager to have a taste of the new local flavor. No bar stool was left unoccupied and the owners were busy meeting their customers, both brand new and dedicated fans alike.
“As a home brewer, it has always been the goal to have your own place,” said co-owner Zac Fox. “Seeing what is going on in the arts district. It seemed like a natural fit. It is just the right place, the right time for us. We are starting small so that we can grow organically, do fun stuff and flourish with everyone else who wants to be creative.”
Owned and operated by Fox, his wife Kassi, business partner Todd Rode and his wife, Karen, Bad Idea Brewing is the latest addition to the Columbia Arts Building, adopting the space that was previously home to the
...More info on site
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USA, PA: Allusion Brewing Company purchases building for future microbrewery
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It took years to perfect a much needed new brew for Vandergrift: Allusion Brewing Company has bought a building at 143 Grant Ave. with plans to open a microbrewery and tap room early next year, TribLIVE High School Sports Network reported on September 8.
Allusion closed on the building last week, buying it for about $15,000 from the Vandergrift Improvement Program (VIP), according to Robert Buchanan, one of four partners who have been brewing beer since 2013.
The brewers had contacts in Vandergrift, setting their eyes on a VIP building, but first had to win a borough variance last year to locate the brewery on Grant Avenue.
“We love the town,” Buchanan said.
“We see the trend of people wanting to get away from the big city and get into the small towns,” he said. “We’ve been to several events where they shut down Grant Avenue and thousands of people come. It’s amazing, and we want to be a part of that.”
Buchanan added that the purchase of the VIP building was contingent on improvements worth many times the building’s current value.
VIP saw a huge advantage in bringing a brewery to town, according to Mary Jo Riddle, VIP’s chairwoman of the economic vitality committee.
The nonprofit
...More info on site
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USA, RI: Narragansett Beer acquires property for new brewery in Providence
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Narragansett Beer has officially acquired the property that will become its new, 18,000-square-foot brewery in Providence. Located on the India Point Park waterfront at the top of Narragansett Bay, the space will include an indoor taproom, outdoor beer garden and a special event space, SouthCoastToday.com reported on September 6.
“We could not be more excited about bringing brewing operations back to Rhode Island in such a perfect location,” Mark Hellendrung, president of Narragansett Beer, stated in a news release.
In May, Providence’s Zoning Board of Appeals approved a special use permit for a microbrewery at a site owned by Brown University next to the Hilton Garden Inn. Brown has been using the building for storage and as a professor’s art studio. It is a roughly 1-acre site between Tockwotton and India streets.
Hellendrung said then that the new brewery would produce about 2,500 barrels of small-batch craft beers a year. It will not take over the company’s brewing of 100,000 barrels of lager a year. He plans to continue to produce beer at The Guild in Pawtucket after the India Point facility opens.
The brewery is scheduled to begin operation and open the outdoor beer garden in spring 2020, followed by the opening of
...More info on site
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USA, CA: Three Stacks and a Rock Brewing Company to move to a bigger location in Morro Bay
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The popular Three Stacks and a Rock Brewing Company is remodeling and planning to move into the old Morro Bay aquarium site on the Embarcadero in the city’s downtown, the San Luis Obispo Times reported on September 10.
The brewery, which currently operates on Main Street in North Morro Bay, has entered into a lease agreement with the city, which includes improving the building space where the old aquarium, operated by the Tyler family for 60 years, shut down in 2018.
Chuck Nettnin, who owns Three Stacks with his wife Ananda, said they plan to operate at least three to five years at the 595 Embarcadero space, and possibly beyond, as the Central Coast Aquarium continues to plan and raise money for a new multi-million dollar aquarium facility at the same site.
Morro Bay officials said in a staff report that “even should the Central Coast Aquarium project be successful in funding and building a new aquarium on this lease site, that project is a minimum of three, and likely more, years out from breaking ground.”
The Nettnins hope to open the new Three Stacks location by May 2020 after several significant tenant improvements are completed, Chuck Nettnin said.
“We’ve been growing faster than anticipated,”
...More info on site
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Hong Kong: AB InBev planning to re-launch Hong Kong IPO - sources
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Anheuser-Busch InBev is planning to raise about $5 billion from a revived float of its Asian operations after the world’s largest beer maker shelved
...More info on site
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World: USDA increases forecast for world barley production, trade in 2019/20
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Barley harvest is largely complete for Northern Hemisphere countries. Crops for Canada, the European Union, Russia, and Ukraine are larger than a year ago,
...More info on site
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Ireland: Alcohol consumption drops 23% since 2001
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Dublin's pub culture may be world-famous, and a major draw for tourists, but among Irish people alcohol consumption has dropped 23% since 2001, Euronews reported on September 10.
That's according to Diageo, who say alcohol-free beer is now the fastest-growing product in the Irish drinks industry
Ireland's first alcohol-free bar – The Virgin Mary – opened in Dublin in May this year, serving mocktails and non-alcoholic beers, wines and spirits in a setting with all the trappings of a regular pub.
"We're not saying, you know, don't drink," says owner Vaughan Yates. "What we're saying here is we believe we're at the forefront of this cultural shift of being mindful about what you consume."
Oisin Davis is the director of drinks industry consultants Great Irish Beverages, as well as a small investor in The Virgin Mary.
He says that the time is right for an alcohol-free alternative to the traditional Irish pub. "You know it might be nice to socialise, it's great to see your friends, it's great to go out on dates and go out to restaurants. But it's not always great to kind of overindulge perhaps."
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France: Barley production expected at record 13.6 mln tonnes in 2019/20
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According to FranceAgriMer’s latest forecast, France’s barley ending stocks could jump 69% to 2.2 million tonnes in 2019/20 as the country absorbs record harvest
...More info on site
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South Africa: Alcohol consumption down due to tough economy, higher taxes
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Distell Group CEO Richard Rushton says alcohol consumption in South Africa has decreased due to tough economic times as well as tax, 702 reported on September 10.
Rushton sat down with Bruce Whitfield to chat about the liquor industry in South Africa.
The country is one of the larger consumers with 250 bln litres of alcohol consumed
He says while there is growth in alcoholic beverages across the spirits and wine industry, as well as premium products like ciders, beer consumption has fallen.
“55 percent of that alcohol is beer, about 17 percent wine - that is relatively small given the fact that we are a big producer - and then the rest is ready to drink and spirits,” Rushton said.
“I think our consumption has fallen off, obviously economic times affect the consumption habit but also tax and the relative price has gone up quite a lot in South Africa.”
He says Distel Group reflected 40 percent revenue growth in South Africa, outside the customs union.
“East Africa is a vibrant place to be doing business in. I was in Kenya last week and you have got an economy growing between five and a half and six percent.
“With growing levels of urbanisation, more females coming into
...More info on site
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South Africa: Distell says AB InBev, SABMiller breached merger conditions
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South Africa’s Competition Tribunal on September 11 said it was looking into allegations by South African alcoholic drinks firm Distell Group that the entity formed from the 2016 merger of the world’s largest brewer Anheuser-Busch InBev with SABMiller breached merger conditions, Reuters reported.
AB InBev and SABMiller were not immediately available for comment when contacted by Reuters.
Distell approached the Competition Commission with allegations that the merged entity removed competitors’ advertising material from retail outlets, among others, the tribunal said in a statement, adding that the Commission found there was no breach.
Distell has now asked for a detailed review and for a full investigation to be conducted, the competition regulator said.
The tribunal said that it will consider Distell’s submissions during a hearing scheduled for September 12 and September 13.
SABMiller argues that Distell’s complaint is an “attempt to restrict competition and is unrelated to the merger conditions” and that the complaints “have no merit and should be dismissed,” the tribunal added.
South Africa cleared Anheuser-Busch InBev's $100 billion-plus deal to acquire SABMiller in 2016 here. The sale of SABMiller's Distell stake was a condition of the Competition Tribunal's approval of the merger.
The merger brought together AB InBev’s Budweiser, Stella Artois and Corona brands with
...More info on site
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Thailand: Finance Ministry considers raising excise tax on zero-alcohol beer
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The Finance Ministry plans to raise the excise tax rate on zero-alcohol beer, saying it would discourage people from starting to drink, the ThaiVisa News reported on September 12.
Finance Minister Uttama Savanayana said on September 11 that the Excise Department of the ministry would soon complete a study on raising tax on zero-alcohol beer from the current rate of 14 per cent, the same level as on soft drinks, which is lower than the rate on beer.
The ministry is concerned that zero-alcohol beer may lead to new drinkers switching to alcoholic drinks, said Uttama, adding that the higher tax rate will still be lower than that on beer.
The ministry will also regroup tax rates on beverages. For example, functional drinks such as water mixed with vitamins, or cologne, will be taxed lower than beverages with high sugar content.
The ministry, he said, is also considering whether to delay a new round of tax hike on cigarettes as the state-owned Thailand Tobacco Monopoly has complained about the severe impact on its business from the last tax increases.
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Australia: Australia launches new malting barley accreditation system
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The latest Australian malting barley varieties will have the potential to hit malthouses and breweries sooner under an improved national accreditation system launched on September 10, Barley Australia announced.
Work commenced on a thorough review of the accreditation system in 2016. Barley Australia directors were integral to this process, collaborating with all sectors in the supply chain.
The aim was to recognise the value of accreditation to the industry, while ensuring the system is flexible and robust, with the ability to deliver information to industry in a timely manner.
The new model is a joint investment by stakeholders, including breeders, maltsters and Australian farmers through the Grains Research and Development Corporation (GRDC).
New malting barley varieties will continue to be rigorously evaluated in a multi-stage process to ensure they meet the quality expectations of customers. The program has an improved funding model, and will be more equitable, sustainable and transparent.
Under the upgraded system, Pilot Malting Australia (PMA) will enhance flexibility for barley promoters in Stage 1 by removing the need for commercial quantities of grain. PMA simulates large-scale commercial malting using much smaller batch sizes (100kg versus 200 tonne). This will allow promoters to complete Stage 0 application approval and Stage 1 evaluation in
...More info on site
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Japan: Kirin Brewery to increase production of Heineken ahead of Rugby World Cup
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“Will Japan be able to supply enough beer during the Rugby World Cup?” — so asked a reporter at a press conference held in Tokyo by World Rugby, the governing body that organizes the World Cup, The Japan News reported on September 12.
Rugby fans drink a lot of beer, a fact backed up by data. According to the Rugby World Cup 2019 organizing committee, a total of 1.3 million litres of beer was consumed at game venues in the Rugby World Cup 2015 in England.
The average beer consumption per game is more than six times that in the English Premier League.
Rugby fans drink so much beer because the games have served as a social venue for many years in Britain and other countries. Fans interact with each other while drinking beer not only during games but before and after as well. World Rugby Chairman Bill Beaumont described the large beer consumption by fans as a tradition.
The organizing committee is calling on restaurants and other establishments around game venues to pay attention to the management of their beer stock. It will also introduce vendors who move through the stands, a practice not common in Europe, allowing spectators to buy beer in
...More info on site
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Hungary: Heineken sees increased demand for its alcohol-free beers
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Brewer Heineken Hungária says the popularity of its non-alcoholic beers has grown significantly in the last five years, with Heineken 0.0 purchases doubling in the last year, while sales of alcohol-free Soproni Radlers have risen 130% since 2014, the Budapest Business Journal reported on September 12.
The company has decided to create a unified commercial image, running under the name 0.0% Zóna (0.0% Zone), while carrying on its activities aimed at combating drunk driving, says a press release sent to the Budapest Business Journal.
Heineken says the market for fruity Radlers is strongly seasonal, with demand peaking during the hot summer months. Still, the dynamic growth of the product category remains undeniable.
There are two ways to create non-alcoholic beers, one being the interruption of the maltʼs fermentation and the other being the more complicated extraction of alcohol from the fermented product. Heineken 0.0 is made with the latter method in order to achieve an authentic Heineken lager taste, the company says.
Meanwhile, the trend of advancement of non-alcoholic Radlers is so strong that it has affected the market of low-alcohol Radler products, with sales in the latter category falling 45% in five years. Heineken says that while alcohol-free products are becoming increasingly available,
...More info on site
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Australia & Japan: Asahi launches collaboration beer Two Suns Premium Dry
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Asahi Premium Beverages has launched Two Suns Premium Dry, a collaboration beer made by brewers from two brewing nations: Australia and Japan, the Beer and Brewer reported on September 11.
Launching this month in draught, Two Suns was made in Australia using 100% Australian malt and wheat, using precise Japanese brewing techniques.
The two key brewers behind Two Suns – Geoff Day from Australia and Yosuke Tajika from Japan – have combined their brewing expertise to create a beer that has low bitterness and low carbohydrate.
“Two Suns has a unique flavour profile of low bitterness with a subtle malt aroma and character,” says Day. “Its distinctive crisp taste and dry finish makes for a really nice easy drinking refreshment. It truly is the result of marrying the best of two very passionate brewers that are excited to show off what’s best about our home countries.”
The beer has been launched at a time when Australian drinkers are changing their beer preferences to lighter options, with the easy drinking category now making up 31% of the total beer category and continuing to grow.
“Until now, there has been an absence of premium options for consumers to choose from in this category,” says Scott Hadley, chief
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