Italy: K-Adriatica’s subsidiary Italmalt to build Italy’s largest malting plant in Loreo (RO)

The largest malt house in Italy, expected to launch in 2023 will be branded K-Adriatica, a company active for over 50 years in the sectors of fertilizer production and beer malt with plants in Loreo, Melfi and Vukovar (Croatia), and a 2020 turnover of € 113.5 million, EFA News reported on July 19.

The project of the company’s subsidiary Italmalt, presented on July 19 in the Municipality of Loreo (RO), aims to develop the production of malt to cover 60% of the national requirement, equal to 208 thousand tonnes, which today is covered at 40% by domestically produced malt. Of this share, over 40% (36 thousand tonnes) is produced by Italmalt at the Melfi plant.

K-Adriatica will invest around 25 million euros, of which around 22.6 million euros will go to the technological systems and 2.4 million euros for the production plant. Investments for the related industries are estimated to be up to 10 million euros. The plant will only use electricity from cogeneration with the use of 100% of the produced heat. A 35% reduction in water consumption is expected. The production will be highly automated, linked to an integrated storage system and will make it possible to employ, directly and indirectly, over 100 people.

"Our goal is to be ready for the barley harvest in June 2023. With the new project we plan to further develop the 100% Made in Italy beer market, increasing production of malt for beer to cover 60% of the national market by reducing imports, which today amount to about 125 thousand tonnes. Through supply chain contracts, which will involve about 800 agricultural companies in Veneto, Friuli-Venezia Giulia, Emilia-Romagna and Marche, K-Adriatica will produce about 92 thousand tonnes of malting barley from 20 thousand cultivated hectares, divided into 42 thousand tonnes of barley for the Melfi plant needs and 50 thousand tonnes of barley for the new site in Loreo,” Giovanni Toffoli, CEO of K-Adriatica, said.

According to AssoBirra's 2020 Annual Report, national beer production stood at 15,829,000 hectolitres, down 8.4% compared to 2019 (when it reached 17,288,000 hectolitres) and consumption - affected by the restrictions imposed on consumption away from home - showed a decrease of 11.4% (18,784,000 hectolitres compared to 2019 when more than 21 million hectolitres of beer were consumed in Italy). Even exports, after years of growth, suffered a decline - albeit more modest - of 4.8%, with export volumes at 3.3 million hectolitres. Among the main importing countries are the United Kingdom (47.3%), the USA (7.3%), and Australia (7%). On the other hand, there was a decrease in imports of 15%. According to AssoBirra, in 2020, beer was the most consumed drink by Italians. In this context, beer remains an important asset for the nation. The numbers testify to this: the brewing sector in 2020 had about 900 companies and over 115,000 employees along the entire chain from agricultural businesses to consumption points.

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