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E-Malt.com Newsletter 42b October 21 - October 24, 2021
Quote of the Week
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Gabby Douglas
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Currency Rates
Base Currency: US Dollar on October 22, 2021 |
Base Currency: Canadian Dollar on October 22, 2021 |
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1 USD = 0.8590 EUR
1 USD = 0.7243 GBP
1 USD = 1.2339 CAD
1 USD = 1.3346 AUD
1 USD = 114.0100 JPY
1 USD = 5.6249 BRL
1 USD = 71.0304 RUB
1 USD = 6.3917 CNY
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1 CAD = 0.8103 USD
1 CAD = 0.5869 GBP
1 CAD = 0.6960 EUR
1 CAD = 1.0814 AUD
1 CAD = 92.3800 JPY
1 CAD = 4.5577 BRL
1 CAD = 57.5547 RUB
1 CAD = 5.1790 CNY
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Currency Rates Chart
Equities of the Largest Breweries
Canada: 2021/22 barley supply projected at 8 mln tonnes, sharply down from 2020/21
...Click here
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USA: Boston Beer reports sharp drop in nine-month net income due to unexpected rapid slowdown of hard seltzer
...Click here
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USA, CO: A Bit Twisted Brewpub & Smokehouse to hold soft opening this week-end
...Click here
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USA, WA: Salish Sea Brewing taking over former American Brewing location in Edmonds
...Click here
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Canada, AB: Alberta micro-breweries dealing with soaring grain, shipping, and packaging prices
...Click here
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USA, TX: Fass Brewing Co. opens brewpub in downtown Conroe
...Click here
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USA, CO: Parent company behind 4 Noses Brewing reveals plans to open large production facility in Denver
...Click here
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USA, TX: Primal Brewing Company looking to launch in Brownwood by end of 2021
...Click here
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USA, CO: De Steeg Brewing sells, becomes Berkeley Alley Beer Company
...Click here
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Russia: Beer sales up 2% in January-August but overall alcohol sales growth slower than last year
...Click here
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World: Analysts expect more upside risk for malting barley prices
...Click here
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World: Barley production forecast reduced as final crop results are being published
...Click here
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Argentina: Barley production of up to 13 mln tonnes deemed possible in 2021/22
...Click here
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Black Sea region: Barley crop forecast to decline in Russia and Kazakhstan, increase in Ukraine
...Click here
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EU: Barley export likely at least 3.25 mln tonnes in July-September
...Click here
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EU: Barley prices to remain high with stocks low – Strategie Grains
...Click here
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Cambodia: Vattanac Brewery brews first beer in Cambodia
...Click here
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France: Farmers step up winter barley sowing, harvesting of maize thanks to good weather
...Click here
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Ukraine: Ukrainian farms harvest 76.5% of its sowing area
...Click here
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Graph of the Week
Table of the Week
US Hop and Alpha-Acid Production 2018-2020
Prices Evolution
Barley Prices
Theoretical Malt Prices
These Days in Business History
21 October
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
22 October
1897 - World's 1st car dealer opens in London
1979 - Walt Disney World's 100-millionth guest
1997 - Yahoo completes purchase of Four11
23 October
1814 - 1st plastic surgery is performed (England)
1824 - 1st steam locomotive is introduced
1989 - Bankruptcy of Wartsila Marine; the biggest bankruptcy in the Nordic countries until then
24 October
1836 - A. Phillips patents the match
1857 - World's 1st football club, Sheffield FC, founded in England
2008 - "Bloody Friday" saw many of the world's stock exchanges experience the worst declines in their history, with drops of around 10% in most indices
Agenda
October 2021:
22 - 23: Copenhagen Beer Festival 2021 (Copenhagen, Denmark)
22 - 23: Salon du Brasseur 2021 (Nancy, France)
November 2021:
04 - 09: The European Beer Star 2021 (Munich, Germany)
04 - 05: Sea Brew 2021 (Taipei, Taiwan)
December 2021:
02 - 04: Drink Technology India 2021 (Helipad Exhibition Centre, Gandhinagar, Gujarat, India)
07 - 08: Brewers Congress 2021 (The Brewery, 52 Chiswell Street, London, UK)
February 2022:
04 - 06: Finest Spirits 2022 (Munich, Germany)
11 - 14: HoReCa 2022 (Athens, Greece)
15 - 17: Brasil Brau 2022 (Sao Paulo, Brazil)
20 - 23: Beer & Food Attraction 2022 (Rimini Expo Centre, Rimini, Italy)
March 2022:
09 - 12: Festival Brasileiro da Cerveja 2022 (Blumenau, Brazil)
16 - 17: BeerX 2022 (Liverpool, UK)
29 - 31: Beviale Moscow 2022 (Moscow, Russia)
April 2022:
01 - 01: Zythos Beer Festival 2022 (exact dates to be confirmed) (Leuven, Belgium)
May 2022:
02 - 05: Craft Brewers Conference & BrewExpo America 2022 (Minneapolis, MN, USA)
05 - 05: World Beer Cup 2022 (USA)
11 - 13: Craft Beer China 2022 (Shanghai, China)
24 - 27: Beer 2022 (Sochi, Russia)
29 - 01 June: The Brewers of Europe Forum & 38th EBC Congress (Madrid, Spain)
June 2022:
07 - 08: Bev Expo 2022 (Manchester, UK)
10 - 11: Tallinn Craft Beer Weekend 2022 (Tallinn, Estonia)
September 2022:
12 - 16: Drinktec 2022 (Messe Muenchen, Munich, Germany)
October 2022:
06 - 08: The Great American Beer Festival 2022 (Denver, USA)
News Articles
Canada: 2021/22 barley supply projected at 8 mln tonnes, sharply down from 2020/21
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For 2020-21, Canada exported 4.57 million tonnes of barley, up 50% from 2019-20 and 45% from the previous five–year average, reaching the highest in recent three decades. Barley imports for 2020-21 increased to 0.30 mln tonnes, up sharply from last year, reaching a record high, Agriculture and Agri-Food Canada reported on October 20.
Total domestic use of barley, at 6.71 mln tonnes, was down 9% from last year on a decline in feed use, although industrial use picked up. Carry-out stocks fell sharply from last crop year to 0.71 mln tonnes, the lowest level on record.
The stocks-to-use ratio is pegged at 6%, versus around 19% in normal years, the farm ministry said.
The 2020-21 average feed barley price in Lethbridge area was finalized at C$294/t, up from 2019-20 and reaching a record high.
For 2021-22, Canadian barley supply is projected at 8.00 mln tonnes, down sharply from 2020-21 and reaching a record low, primarily due to production issues in Canada’s Prairie provinces, as well as record low carry-in stocks. As a result, demand, including for domestic feed consumption and exports will be sharply down.
The average price of feed barley for 2021-22 is predicted to increase sharply from 2020-21, supported by tight carry-in stocks,
...More info on site
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USA: Boston Beer reports sharp drop in nine-month net income due to unexpected rapid slowdown of hard seltzer
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The Boston Beer Company, Inc. reported on October 21 financial results for the third quarter and year-to-date fiscal periods ended September 25, 2021.
Key results were:
Third quarter depletions increased 11% and third quarter shipments increased 11.2% compared to the prior year.
Third quarter net revenue of $561.6 million increased 14.0% compared to the prior year.
Third quarter net loss of $58.4 million or $4.76 per diluted share represented a decrease of $139.2 million or $11.27 per diluted share compared to net income in the third quarter of last year.
The third quarter net loss was primarily a result of direct and indirect volume adjustment costs of $133.0 million, or $7.73 per diluted share, net of tax benefits, due to slower than anticipated hard seltzer growth.
Year-to-date depletions increased 24% and year-to-date shipments increased 29.7% compared to the prior year.
Year-to-date net revenue of $1.710 billion increased 34.0% compared to the prior year.
Year-to-date net income of $66.3 million or $5.33 per share, a decrease of $92.8 million or $7.57 per diluted share compared to the prior year.
"The unexpected rapid slowdown of hard seltzer category growth this summer significantly impacted our business," said Dave Burwick, President and CEO. "While Truly has continued to grow, gain share and
...More info on site
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USA, CO: A Bit Twisted Brewpub & Smokehouse to hold soft opening this week-end
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Some might say that Texas-style barbecue and Colorado craft beer make the perfect combination. Others might think that any attempt at a mashup between these two very different states is a little bit twisted. That's why the owners of A Bit Twisted Brewpub & Smokehouse will take both approaches at once, the Westword reported on October 21.
The new brewpub, at 3095 South Peoria Street, in Aurora, will host a soft opening all weekend. It will be one of at least four breweries that have opened taprooms or sales rooms in Aurora in 2021; the others are Jade Mountain Brewery & Teahouse, Six Capital Brewing and Cerebral Brewing (which is running a production space).
"I’m a Texas guy, born and raised. I know barbecue and I know how to run pit pretty darn good. But when I moved to Colorado in 2011, that is when my passion for craft beer started," says Matt Vargocko, who will handle the barbecue pit at the brewpub in addition to creating and brewing many of the beers on tap.
Along with a college buddy, Brandon Foreman, Vargocko became pretty good at home brewing over the years, even selling beer out of his garage. So the two men,
...More info on site
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USA, WA: Salish Sea Brewing taking over former American Brewing location in Edmonds
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Salish Sea Brewing is taking over former American Brewing location in Edmonds, with plans to open a brewery, taproom, and eatery, the Washington Beer Blog reported on October 21.
This new location, dubbed The Boathouse, marks a second location for Salish Sea Brewing, with the brewpub in downtown Edmonds remaining open. The brewing equipment has been moved down the street and absorbed into the larger brewery, but the brewpub will continue to have a small-batch brewing system.
Not only a new, second location but also new brewing equipment and an increase in brewing capacity. Two locations in Edmonds: The Salish Sea Brewpub downtown and the Salish Sea Boathouse near the waterfront. Like the Brewpub, the Boathouse is family-friends, though dogs are only allowed outside in the beer garden.
Salish Sea Brewing’s owners, Jeff and Erika Barnett, along with their crew, have put a lot of work into sprucing up the taproom, giving it a lot more than a fresh coat of paint. They constructed a new kitchen, crafted new furniture, remodeled the bathrooms, installed a new cold room, added a new draft system, created original artwork, potted plants, hung curtains, and yeah… you’ll hardly recognize the place.
At first, probably only open four days
...More info on site
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Canada, AB: Alberta micro-breweries dealing with soaring grain, shipping, and packaging prices
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It’s beer week in Alberta, a time to celebrate and enjoy craft beer but not all those behind producing the brew are in a celebratory mood, the Global News reported on October 20.
“Profitability is down, so the amount of dollars we’re making for every beer sold has actually come down quite a bit,” Analog Brewing Company co-owner Bryan Launier said.
Many micro-breweries across Alberta are dealing with soaring grain, shipping and packaging prices.
This could mean that buying your favourite craft beer may soon come a premium price.
“With how bad the droughts have been here in Alberta and other places in North America, we’re going to be seeing a massive increase in our barley prices moving forward,” Launier said.
Launier said while large brewing companies have already secured enough grain to weather the storm, it’s small breweries like his that are fighting for what’s left, and that drives up costs even more.
“We don’t have big investors behind us, we don’t have lots of money behind us like other big industries out there, so this is basically our livelihoods on the line here, our everything,” Launier said.
Food distribution and policy expert Sylvain Charlebois said that leaves many microbreweries with few options.
“[Businesses] have to either
...More info on site
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USA, TX: Fass Brewing Co. opens brewpub in downtown Conroe
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Since 2013, 55 breweries and brewpubs have opened in the Greater Houston area, a 344% increase, according to a June 21 study from Texas real commercial real estate firm NAI Partners, the Community Impact reported on October 20.
Fass Brewing Co. added to that total when it opened its brewpub on Main Street in downtown Conroe in October. It is the sixth craft beer location to open in the area since 2007, joining Southern Star Brewing Co., B-52 Brewing and Copperhead Brewery in Conroe along with Cyclers Brewing and Frankenboltzzzz Brewing Co. in Montgomery. However, Cyclers Brewery recently permanently closed due to damages sustained from Winter Storm Uri in February.
Dylan Emmons, Fass Brewing Co. brewer and president, worked at multiple other breweries in Houston before starting his own.
“I kind of knew I’d never really feel fulfilled until it was our own brewery with our recipes, our process,” Emmons said, who started the brewery with his cousin Aaron Edrington.
Charles Vallhonrat, executive director of the Texas Craft Brewers Guild, said he credits the growth of craft breweries to state legislation passed in 2013 allowing brewpubs to double their production and sell directly to distributors and breweries to sell directly to retailers.
Under Texas licensing
...More info on site
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USA, CO: Parent company behind 4 Noses Brewing reveals plans to open large production facility in Denver
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A day after hitting Colorado with the news that it had purchased Odd13 Brewing, the parent company behind 4 Noses Brewing has revealed that it also plans to open a large production facility — and a new taproom — at the northwestern edge of Denver’s Park Hill neighborhood, the Westword reported on October 21.
When it is complete, probably sometime in 2022, the 22,000-square-foot warehouse at 4040 Dahlia Street will include a forty-barrel brewhouse and enable the company to expand production and packaging of both 4 Noses and Odd13 beers. The taproom will likely come later.
“We were fortunate through the pandemic to be able to continue to sell our beers across Colorado in liquor stores and supermarkets, and we fought pretty hard for that,” says Tommy Bibliowicz, co-founder of 4 Noses and a partner in 4NB Holdings, which is the Bibliowicz family-owned parent company for 4 Noses, Odd13 and Wild Provisions Beer Project.
As a result, 4 Noses had been looking for a production facility long before the Odd13 deal was made. In fact, Bibliowicz says, he learned that Odd13 owners Ryan and Kristin Scott were trying to sell the brand and the Lafayette taproom after inquiring about Odd13’s production space; the
...More info on site
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USA, TX: Primal Brewing Company looking to launch in Brownwood by end of 2021
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The newest business venture to be included in downtown Brownwood’s revitalization is the Primal Brewing Company, which will be located at 200 N. Fisk with an estimated opening date by the end of 2021, the Brownwood News reported on October 20.
The Primal Brewing Company originated in Baird in 2018, but is making the move to Brownwood because, “Two and a half years later, I’ve outgrown where I’m at,” said owner Carl Price.
The decision to relocate to Brownwood came after a few visits to the downtown area.
“I supply beer to Pioneer Tap House and one day Micah Jaynes stopped me when I was delivering beer and asked me if I ever thought about moving the brewery and it had never crossed my mind,” Price said. “The City of Brownwood really reached out and wanted me to come here and I did. It was neat to be a part of it and watch how they do the festivals where they block the roads off and people walk from place to place. Being a part of downtown and watching it grow, meeting the people I’ve met and hearing the stories and seeing it for myself, just how much Brownwood is wanting to bring
...More info on site
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USA, CO: De Steeg Brewing sells, becomes Berkeley Alley Beer Company
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For the past eight years, De Steeg Brewing's biggest weakness has also been its strength. Located just off the busy corner of Tennyson Street and 44th Avenue in Denver, the tiny beer maker faces the alley. That fact makes it a hard-to-find spot for those who don't know about it — and a hidden treasure for those who do, the Denver Westword reported on October 1.
The brewery's new owners, Matt Kirchhevel and Ty Kain, know that as well, which is why they're doubling down on that back-alley cachet with a new name, Berkeley Alley Beer Company, and a new logo.
"We fell in love with the Berkeley neighborhood and the uniqueness of a brewery in the alley. It was the perfect size, with a great staff and an amazing brewer," says Kirchhevel. "After multiple owners...changing the name will give us a fresh start and [allow us to] make it our own."
"Being in the alley has its challenges, but it's also a little quieter, which I think is nice. We're quaint and small, but we're unique...and we have signs out on the street that tell people how to find us," Kain adds.
They have also changed the longtime nano-brewery's focus from Belgian styles
...More info on site
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Russia: Beer sales up 2% in January-August but overall alcohol sales growth slower than last year
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Russia’s alcohol sales in January-August this year increased by 1.3% as compared to the same period in 2020, Profibeer reported on October 20.
This represents
...More info on site
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World: Analysts expect more upside risk for malting barley prices
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The direction for global malting barley remains higher and higher with France leading the way as it approaches Canadian price levels, RMI Analytics said
...More info on site
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World: Barley production forecast reduced as final crop results are being published
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Global barley production forecast is down slightly, to 148 mln tonnes (from 148.6 mln) in RMI Analytics’ latest report, with the analysts explaining the
...More info on site
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Argentina: Barley production of up to 13 mln tonnes deemed possible in 2021/22
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Australia’s barley production 2021/22 was forecast at 12.477 mln tonnes in ABARES’s September report, down from the 13.093 mln harvested in 2020/21.
According to H.
...More info on site
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Black Sea region: Barley crop forecast to decline in Russia and Kazakhstan, increase in Ukraine
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Russia’s barley crop is forecast at 18.3 mln tonnes this year versus 20.5 mln last year, H. M. Gauger GmbH said in their October
...More info on site
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EU: Barley export likely at least 3.25 mln tonnes in July-September
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Taxud reports EU barley export shipments of 2.37 mln tonnes during the July 1 – September 26 period vs. 2.1 mln tonnes over the
...More info on site
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EU: Barley prices to remain high with stocks low – Strategie Grains
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Strategie Grains has sharply increased its forecast for this year's maize crop in the European Union due to good harvest yields and a revision
...More info on site
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World: Pernod Ricard Q1 sales beat forecasts
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French spirits maker Pernod Ricard said solid sales growth could moderate in the 2022 fiscal year, after strong demand in China, the United States, India and Europe helped it post above-forecast sales in the first quarter, the MarketScreener reported on October 21.
Pernod - which owns Martell cognac, Mumm champagne and Absolut vodka - reported a 20% rise in like-for-like sales to 2.718 billion euros ($3.17 billion) in the three months to Sept. 30, above market expectations for a 15.7% rise.
The world's second-biggest spirits group said consumption by people staying at home remained resilient, while the reopening of bars and restaurants as coronavirus restrictions eased also helped, notably in Europe.
Travel retail was still subdued although the company benefited in the quarter from a low comparison base.
Pernod Ricard's fiscal year started on July 1.
When asked if he was comfortable with average analyst expectations of 9.7% sales growth for the full year, Chairman and Chief Executive Officer Alexandre Ricard told Reuters "we give a qualitative guidance".
"We are confident but we need to go through Christmas and the Chinese New Year (to have more visibility)," he said.
Pernod expected "good sales growth to continue through the year", he said, adding that the first quarter had
...More info on site
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Cambodia: Vattanac Brewery brews first beer in Cambodia
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On 21 October 2021, Vattanac Brewery celebrated its First Brewing Ceremony to mark the beginning of its beer production, the Khmer Times reported.
The factory is built on a 15-hectare compound located at Street 114, Sangkat Prek Eng, Khan Chbar Ampov, Phnom Penh.
Vattanac Brewery is a USD 140 million project that was officially approved by the Royal Government and the Council for the Development of Cambodia on June 10, 2020. Shortly after, the construction of the factory began on June 25, 2020. Despite the ongoing Covid-19 pandemic, the construction of the brewery continued as planned and completed in 483 days. This has provided employment to more than 1,000 workers to date.
Vattanac Brewery has achieved a key milestone by complying with all relevant regulations. The brewery will have a planned production capacity of up to 76 million cases per year, creating additional employment opportunities for up to 1,500 Cambodians while not mentioning other numerous indirect jobs created.
The vision of Vattanac Brewery is to push the standard of beer and beverage industry in Cambodia to a higher level. The company commits to produce a national beer that will be at the top of its category in terms of quality. This is achieved
...More info on site
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France: Farmers step up winter barley sowing, harvesting of maize thanks to good weather
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French farmers stepped up harvesting of maize and sowing of winter wheat and barley last week in dry, sunny weather, data from farm office FranceAgriMer showed on October 22.
An estimated 32% of the grain maize crop area had been harvested by Oct. 18, up from 15% a week earlier, FranceAgriMer said in a cereal report.
However, harvest progress remained well behind the pace seen last year when 75% of the crop had been cut by the same stage, it said.
Growth of maize crops has been curbed this year by cool spells of weather in spring and summer, while heavy rain in late September held up early harvest work.
Maize crop development is running about 10 days behind the average rate of the past five years, according to FranceAgriMer.
A sunny spell bridging the past two weekends helped dry out fields and reduce maize crop moisture, an important factor in avoiding post-harvest drying costs to meet market requirements.
Sowing of soft wheat and winter barley for next year's harvest also accelerated last week.
FranceAgriMer said 40% of the expected soft wheat area had been drilled by Oct. 18, up from 13% a week earlier and matching year-earlier progress.
Winter barley sowing was 59% complete against 24% the
...More info on site
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Ukraine: Ukrainian farms harvest 76.5% of its sowing area
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Ukrainian farms have harvested 56.3 million tonnes of grain from 76.5% of its sowing area, with the yield averaging 4.62 tonnes per hectare, the agriculture ministry said on October 22.
The volume includes 32.3 million tonnes of wheat, 9.6 million tonnes of barley, 11.2 million tonnes of corn and small volumes of other grains, the ministry said.
Favourable weather could help Ukraine to harvest a record 80.3 million tonnes of grain this year, up from 65 million tonnes in 2020, the ministry has said.
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