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Hopsteiner News
Dry Hopping – a Peculiarly British Practice!
Traditionally used by the British cask ale brewers to add a strong, distinctive hop character to beer in cask, this practice has also now been adopted by the world craft brewing sector to produce a range of significantly different products.
International Report
USA
Coca-Cola Company buys major bottler
Call that a win-win situation? On 25 February 2010, The Coca-Cola Company (CCC) announced it is buying the bulk of its largest bottler, Coca-Cola Enterprises (CCE), in a deal valued at about USD 12.17 billion (EUR 9 billion), including debt. Under the terms of the deal, CCC would give up its 34 percent stake in CCE, worth USD 3.4 billion, and assume USD 8.88 billion in debt, and all North American assets and liabilities, while CCE would take on the dregs: CCE agreed in principle to buy CCC’s bottling operations in Norway and Sweden for USD 822 million, and acquire an 83 percent equity stake in its struggling German bottling operations in the near future.
Belgium
AB InBev completes takeover loan refinancing
On 26 February 2010, AB-InBev announced it has completed the refinancing of an initial USD 54 billion loan facility taken out when it was created through the purchase by Belgian brewer InBev of U.S. rival Anheuser-Busch in 2008. AB-InBev has obtained a USD 17.2 billion long-term bank facility, consisting of a USD 8 billion five-year revolving loan, a USD 5 billion three-year loan and a USD 4.2 billion long-term bilateral loan. The deal could be one of the biggest syndicated loans of the year, it was reported.
Netherlands
Heineken grows in Africa, Asia and Latin America
It could have been worse. When reporting its full year figures for 2009 on 23 February 2010, Heineken had to admit that its revenue fell 0.2 percent organically to EUR 14.7 billion, but rose per hectolitre. Cost reductions also boosted growth, offsetting a 5.4 percent fall in consolidated beer volume to 125.2 million hl due to the global downturn. The company reiterated its target of reducing net debt/EBITDA to below 2.5 times from 3.3 times in 2008 and 2.6 times in 2009.
Mexico
Beer exports decline
Mexican brewer Grupo Modelo said on 19 February 2010 that its net profit rose 18 percent in the fourth quarter ended 31 December 2009 as sales rose on higher prices and operating gains increased. Modelo, the maker of leading U.S. import beer Corona Extra, reported net profit excluding minority interest of MXN 2.54 billion (EUR 147 million), compared with MXN 2.15 billion in the year-ago quarter. Sales rose 7.9 percent to MXN 20.36 billion (EUR 1.18 billion). However, sales in Mexico dropped 0.5 percent to 9.6 million hl, while export sales fell 4 percent to 3.4 million hl.
Australia
Foster’s troubled by underperforming wine division
Reporting first half-year results on 16 February 2010, Foster’s CEO Ian Johnston revealed that net profit after tax had fallen by 13.8 percent to AUD 356.7 million (EUR 237 million), a result hampered by a high Aussie dollar and the struggling world economy. Improvements due to the corporate transformation plan were beginning to show but were not reflected in the wine division. Results from beer were pleasing, in spite of the loss of some domestic market share – Foster’s still has seven of the top 10 selling brands, including two of the three fastest growing brands.
Australia
What’s wrong with the Aussie wine industry?
Foster’s Group, which is Australia’s major beer and drinks company, maintains that about 25 percent of Australia’s grapevines should be pulled if the industry is to recover in a reasonable time. In recent years, too many new vineyards have been established with encouragement from various tax minimisation investment schemes, resulting in the current oversupply situation. Going against the trend, Foster’s has significantly reduced its vineyards and CEO Ian Johnston thinks shareholders should not suffer for the mistakes made by others. However, this thinking is not shared by all commentators.
Australia
Legal drinking age to be raised to 21?
Prime Minister Kevin Rudd (Labour Party) said on 8 February 2010 that personally he preferred lifting the national legal drinking age to 21 from currently 18 and was pleased to note that some Australian states were considering the matter too. His statement initiated a flurry of media pieces dealing with the pros and cons. The debate will undoubtedly continue as a facet of the war against binge-drinking.
Russia
Another challenging year ahead
Considering that the Russian beer market proved tough going in 2009, Carlsberg’s full-year results held up pretty well. On 23 February 2010, Danish brewer Carlsberg reported a 17.5 percent rise in operating profit to DKK 9.4 billion (EUR 1.3 billion) for the full year ended 31 December 2009. For the beverage activities organic operating profit growth was 28 percent. Group operating profit margin improved to 15.8 percent (13.3 percent in 2008). However, organic beer volume declined by 4 percent. Throughout the year Carlsberg’s Asian volumes continued to grow at high single-digit growth rates, while in eastern, northern and western Europe volumes declined organically by mid-single-digit rates.
Poland
Beer sales down 10 percent in 2009
Kompania Piwowarska (KP), owned by SABMiller, in the 12 months to December 2009 reported sales of 14.6 million hl beer. These results are 3 percent lower than in the previous year. Overall, the industry’s sales decreased by 10 percent and reached circa 32.2 million hl beer. The drop in sales was mainly a result of the increase in excise tax (by 13.6 percent) introduced in March 2009, which strongly influenced beer price.
UK
Canadean predicts no big turnaround for western Europe’s drinks volumes
Canadean’s recently published Quarterly Beverage Tracker points to a marginal
improvement in the prospects for commercial beverage volumes in 2010. According to the report published in February 2010, Canadean consultants anticipate that the western European beverage market will see the smallest of contractions in 2010; this compares to the 0.4 percent decline seen in 2009. According to Canadean, the mood on the ground remains subdued, with industry confidence levels in most markets remaining uncertain or deteriorating, with the exception of just Austria, Finland, Italy, the UK and perhaps surprisingly Greece. What little improvement there will be, can be traced to a projected slowdown in the rate of decline of the alcoholic soft drinks sector.
The Siebel Institute TwinTrack Brewing Microbiology course from 10 to 21 May 2010 allows students to choose the direction of their course content depending on their individual needs.
Germany
Beer sales declined by 2.8 percent in 2009
Since 1994 beer sales in Germany have declined and the past year proved to be no exception. From a post-unification high of 116 million hl in 1994, beer sales have dropped to 100 million hl in 2009, declining 2.8 percent on the previous year. Bavarian brewers, with total sales of 22.2 million hl, reported a less-than-average decline of 1.6 percent caused by a massive two-digit drop in sales from January through March 2009. Beer mixes, often considered as the way out for brewers with excess capacity, seem to have lost even more in volume than beer. Sales of beer mixes went down by 3.1 percent to 4.1 million hl or 4.0 percent market share.
USA
Molson Coors beer volumes down indicating worse than thought recession
Molson Coors had a tough fourth quarter 2009 and did not meet expectations. Beer is usually pretty good in a down economy but not this time. The number two brewer in the U.S. in February reported a 21.6 percent slide in fourth-quarter net income, reflecting a tough economy, and a sharp rise in share-based salary bonus packages. Some analysts raised concerns about beer consumption trends in the United States, especially since beer’s relatively low price had formerly made many consider it somewhat resilient in the downturn.
Brazil
Paris Hilton goes down on all fours for Schincariol’s “Devassa Bem Loura”
If you need another proof that they are really different from us Old Europeans down in Brazil, consider this. Paris Hilton, the A-list celebrity, spent the carnival weekend (coinciding with Valentine’s Day) in Brazil enthusiastically promoting the Brazilian lager "Devassa Bem Loura". Brewer Schincariol is said to be putting USD 54 million behind a campaign featuring the socialite. The tabloids around the world had a field day: Ms Hilton appeared “tired and emotional” at the party having quaffed a few liveners before facing fans. She ended up crawling around the floor on all fours flashing her, ahem, backside. In Brazil, they thought it was all innocent fun.
Germany
First brewpub on a cruise ship opened
How long will it take Andreas Hegny, brewmaster on the MS AIDAblu before he walks about with a rolling gait like a sailor? Since early February he has been on board the new cruise ship brewing Hövels Original, the super-premium beer brand owned by Radeberger Group, for thirsty passengers. The EUR 350 million ship, which is currently on her maiden voyage to the Baleares, features the world-wide first 5 hl brewery on a ship.
France
Pernod Ricard sells local Nordic brands for EUR 82 million
As they were only interested in keeping the Absolut Vodka brand but not the rest of Sweden’s Vin & Sprit’s portfolio, Pernod Ricard has been conducting what ill-meaning observers might call a fire-sale after taking over Vin & Sprit in July 2008 for EUR 5.69 billion, including debt. On 15 February 2010 Pernod Ricard, the world’s number two drinks group, announced the disposal of a number of Swedish and Danish assets to Altia for a cash consideration of EUR 82 million. The transaction includes a number of local wine and spirits brands including in particular Explorer vodka, Lord Calvert whisky, 1 Enkelt bitter, Blossa glögg and Chill Out wines, plus a bottling facility located in Svendborg, Denmark and two logistic centres located in Odense, Denmark and Årsta, Sweden.
Uganda
Africa – endless possibilities
The IBD 2011 convention will be held at the picturesque resort of Lake Victoria Serena from Sunday 6 March to Friday morning 11 March 2011. Registration for exhibitors has already begun. This being Uganda, Ian Jones, Chairman, and Pieter Engelbrecht, Technical Chairman, will have no trouble putting together an interesting and fun programme both for delegates and accompanying persons.
Germany
Christian Cools is new boss at Beck’s
AB-InBev’s revolving doors in Germany seem to have no brakes. Only eleven months after entering as chief of AB-InBev Germany, Jens Hösel, 47, will be out again at the end of February 2010. During his tenure Mr Hösel not only had to implement massive and highly controversial cost-cutting measures, he also was made to leave the German Brewers’ Association – a move that sent shock waves through the industry. Mr Hösel will be succeeded by Christian Cools, 42, who used to head AB-InBev’s business in France.
Japan
Kirin and Suntory scrap merger
It was to be one of the mega-mergers of the beverage industry (or so they claimed) and when announced Japanese media touted it would make AB-InBev tremble in their boots. Well, it’s not to be. After months of merger talks, Kirin and Suntory announced on 8 February 2010 that they would go their separate ways again, having failed to resolve deep-rooted differences over who would own and manage the future company.
Europe
2009 global brewers’ ranking: Carlsberg distant fourth
Fortunately, global GDP and beer consumption do not always move in sync. While GDP declined by 2.2 percent in 2009, according to the World Bank, latest figures released by beer market specialists Plato Logic show that the world beer market grew by less than 0.1 percent in 2009. Overall the top-line figure for 2009 (provisional) does confirm a challenging year for the global beer industry. Nevertheless stability can be taken as going some way to endorse the sector’s resilience.
Germany
Krones swings back to profit
In an interview with German media Hans Jürgen Thaus, CFO of Krones, said on 1 February 2010 that during the first half of 2010 the world leader in the manufacture of processing, bottling, packaging and material flow systems will be back in the black. This trend is to continue well into the second half of 2010. In 2009 Krones saw turnover drop and profits bleed red ink – the first time since the company was founded in 1951.
Australia
Volumetric excise a brave move?
Australia’s inefficient and heavily protected wine industry could get the restructuring it badly needs if the Rudd Government accepts the Henry tax review recommendations and introduces a volumetric (flat) tax across all categories of alcohol and removes the costly wine tax exemption enjoyed by smaller wineries. Alcohol excise is part of Ken Henry’s mandate to simplify the tax system and bring it in line with the rest of the world. But what Henry recommends and the government ultimately ratifies will come down to politics, particularly with a federal election looming. At present there are more than 13 different alcohol taxes in play, many of which are antiquated, and some are at odds with the government’s health and social policies.
USA
Siebel Institute offers Draught Master Programme
The Siebel Institute’s Draught Master Programme, to be held in Golden, Colorado from 22 – 25 March 2010, allows students to chose the level of training that meets their skill level, their budget and their goals. Courses offer a mix of technical instructions and hands-on activities presented in facilities dedicated specifically to draught training.
People
Frutarom Industries Ltd., Haifa/IL
Frutarom names Salvatore Gargano as General Manager of Health Business Unit
Frutarom Ltd., the seventh largest company in flavors and specialty fine ingredients, has appointed Salvatore Gargano as General Manager of its Health Business Unit...
Weener Plastik AG, Weener/DE
Changeover in board of directors
In a meeting on 19 January 2010, the supervisory board at WEENER Plastik AG, Weener, appointed Johann Meinders as the new chairman of the board of directors. Mr. Meinders succeeds Johann Schröder, who will take over chairmanship of the supervisory board with immediate effect...
Brewing Science (Abstracts)
Sufficient Formation and Removal of Dimethyl Sulfide (DMS) without Classic Wort Boiling
The formation and removal of dimethyl sulfide (DMS) was studied during a new method for wort product...
Towards an Understanding of Hop Tolerance in Beer Spoiling Lactobacillus brevis
Lactobacillus brevis comprises strains with diverse metabolic capabilities. Some specialized strains...
Upstream Beer Stabilisation during Wort Boiling by Addition of Gallotannins and/or PVPP
Addition of stabilisation products in the upstream brewing process is a very convenient way of physi...
Brewer’s Yeast Modification: Effects Both on Diacetyl Production and Alcohol Formation*
New industrial brewing yeasts*1 have been generated by introduction of two genes involved in valine ...
Radical Scavenging Capacity of Hop-derived
Dietary antioxidants are believed to be effective in the prevention of oxidative stress related dise...
Tech News
Ecolab Deutschland GmbH, Düsseldorf/DE
Ecolab at IFFA 2010 in Frankfurt
With its comprehensive solutions Ecolab will present its Total Impact approach to the food and beverage industry at this year’s IFFA in Frankfurt...
Novozymes A/S, Bagsvaerd/ DK
New enzymes turn waste into fuel
Novozymes launches the first commercially viable enzymes for production of biofuel from agricultural waste. Breakthroughs in enzyme technology enable cellulosic biofuel as a competitive alternative to gasoline...
DLG e.V., Frankfurt/DE
DLG testing beer – again
It is the oldest food regulation in the world. The German Purity Law for beer has stood for the quality of German hop products for nearly 500 years now. Due to the inventiveness and professional skills of the brewers an astounding flavour diversity could evolve from the simple mixture of malt, water, yeast and hops...
Global 500 report names Budweiser as world’s most valuable beer brand
European beer brands Heineken, Amstel and Stella Artois have all dropped down the list of the world’s most valuable beer brands at the expense of Budweiser, Corona and Foster’s, according to the annual BrandFinance® Global 500 survey of the world’s 500 most valuable brands published this week by Brand Finance plc, one of the world’s leading brand valuation consultancies...
Diageo Deutschland GmbH, Wiesbaden/DE
Diageo turns distribution of Guinness draught beer over to Radeberger Group
As of 1 April 2010, Radeberger Group will be the exclusive distributor of Guinness and Killkenny draught beer as well as Stowford Cider products in Germany...
International Organization for Standardization, Geneva/CH
New ISO RFID standard will help trace products in the supply chain
For reasons of safety and reliability, the importance of being able to trace products throughout the supply chain has strongly increased in recent years. The new ISO 17367:2009 standard will help manufacturers and distributors to track products and to manage their traceability thanks to standardized RF tags...
Research Center Weihenstephan for Brewing and Food Quality, Freising/DE
Yeast strains for breweries and research
The Research Center Weihenstephan for Brewing and Food Quality at the Technical University Munich reacts to numerous enquiries from different breweries all over the world...
GEA Brewery Systems GmbH, Kitzingen/DE
Modern CIP concept reduces energy costs
The Gutmann wheat beer brewery in Titting, Bavaria, has been family owned and operated since 1855. Since 1913, wheat beer has been produced in Titting. Meanwhile, the Gutmann family has specialized in this type of beer and is still using the original traditional method. In addition to consistently high product quality, conservation of natural resources is an important issue for the brewery. This is laid down in the brewery’s environmental management, which is certified according to DIN EN ISO 14001:2004. One of the objectives is the continuous reduction of energy and water consumption...
GEA Ecoflex GmbH, Sarstedt/DE
Voluntary environmental protection
GEA WTT, one of the world’s leading manufacturers of brazed plate heat exchangers, takes its self-commitment to protecting the environment very seriously...
Brewfitt Ltd, Huddersfield/UK
Smaller and lighter than standard
CoolTube is the latest innovation from Brewfitt. The new heat exchanger employs leading edge fluid dynamic technology to give maximum efficiency in a minimum space...
Symrise AG, Holzminden/DE
Symrise expands business in Russia and Singapore
Symrise is significantly expanding its Flavor & Nutrition business in Russia and the CIS region with the setup of a fully integrated production site near Moscow. The new Symrise plant, which will be established on an existing site designed by the Russian Aromaros-M Group, will initially focus on supplying dry blends to customers in the region. Production is expected to start in the second half of 2010...
Mettler-Toledo GmbH, Gießen/DE
InPro 6970i series – a sensitive oxygen sensor
With the InPro 6970i series, Mettler-Toledo Ingold introduced a new line of optical sensors for the measurement of dissolved oxygen in Food & Beverage. Based on a chemo-optical technology, the InPro 6970i sensor offers significant advantages for the brewing industry. High operational availability, combined with excellent measurement quality is the perfect answer to the most demanding brewery requirements such as increased product yield and guaranteed minimized level of oxygen in beer...
Conferences & Events
The Brewers of Europe, Brussels/BE
EBC Hop Symposium
This year’s EBC Hop Symposium will take place from the 12th to the 14th of September 2010 in Wolnzach (Bavaria), one of the main centres of the German hop growing industry in the Hallertau...
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