April 2008

A maddeningly sparse article in Denmark’s Copenhagen Post today reports that a thesis done by a graduate student at the University of Copenhagen seems to suggest that “[o]rganic beer production emits substantially more greenhouse gases than ordinary beer.” The study’s author, Jakob Majcher, compared CO² emissions between conventional brewing and organic brewing and found that organic beer production produced 12% more. As far as I knew, the only difference between organic and non-organic beer was the ingredients used. I don’t know of any real differences in the “process” of brewing organic beer, so I’m somewhat stumped as to what might account for his findings. There’s almost no details about how he he did his study, just his declaration of the results, which is more than a little frustrating.

There is what looks to be a slightly more thorough, or at least longer, article at Information DK. Unfortunately, it’s in Danish and none of the popular web translators offer Danish. The only one I could find, InterTran, provides a translation that is almost unreadable. Hopefully, this will get picked up by English-language news outlets and we can figure out what’s really going on.

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Pyramid Brewing and Magic Hat announced today that they will merge, pursuant to a letter of intent. According to the terms of the agreement, Magic Hat will acquire Pyramid in an all-cash offer and then the two will merge.

From the press release:

The proposed transaction is subject to the negotiation and execution of a definitive merger agreement. The merger agreement will provide for a first-step tender offer for outstanding Pyramid shares by an acquisition entity wholly owned by Magic Hat, to be conditioned upon the acquisition of at least 66 2/3% of the outstanding shares of Pyramid. The tender offer, if consummated, will be followed by a merger of Magic Hat’s acquisition entity with and into Pyramid. The proposed transaction is also subject to the satisfactory completion of a due diligence review by Magic Hat of the business, financial and legal affairs of Pyramid, and receipt of necessary consents and approvals of regulatory agencies and third parties.

The closing of the proposed transaction, subject to the conditions referred to above, is anticipated to occur not later than August 31, 2008. The board of directors of Pyramid has approved the transactions contemplated by the Letter of Intent.

“The combination of these two well established, high profile craft breweries will be very complementary given our respective brand portfolios and the geographies in which we predominantly operate. Additionally, there will be a number of important benefits for Pyramid to be part of a private company versus continuing to operate as a stand alone public entity. This consolidation makes both good strategic and financial sense and is well timed, particularly as the beer industry’s competitive dynamics continue to intensify,” said Pyramid CEO Scott Barnum. “The Company will continue to have offices in Seattle, its historical home, and will seek opportunities to capitalize on the enhanced assets and capabilities of the new combined entity,” he added.

Martin Kelly, CEO of Magic Hat said, “We have a great deal of respect for Pyramid’s brand heritage, award-winning beers and its dedicated employees, and look forward to consummating this transaction, which provides both strategic and financial benefits both to Pyramid’s and Magic Hat’s stakeholders.”

Hmm, not sure what to make of this yet. I’m not generally a fan of small companies becoming bigger through merger, but who knows. There’s certainly no market overlap between the two, so perhaps it will beneficial for both. We’ll have to wait and see.

After initially posting this, an industry insider friend of mine opined offline that he knew that Alan Newman, the owner of Magic Hat, had been looking for a way to get his brands to the left coast. Pyramid has a excellent distribution network which would be very beneficial to Magic Hat in reaching stores shelves out here. Both brands do pretty well in their own markets and so perhaps there is a mutual benefit. As my friend put it, it’s “a real make-sense deal.”

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This year, Avery Brewing celebrates its fifteenth anniversary, and as they’ve done for the last five or so years, they’re releasing a special anniversary ale, this one named “Fifteen.” The last few I’ve had have been quite wonderful and this year’s beer promises more of the same. According to the label, it’s a “refreshingly tart, fruity funky farmhouse ale brewed with black mission figs, hibiscus flowers and white pepper” and “fermented with 100% brettanomyces.”

From the press release:

For the past couple of years, we’ve been working with several strains of brettanomyces (wild yeast). We found one and deemed it the best for its tart flavor and funky, fruity aroma. Adding black mission figs for a subtle jammy aspect, hibiscus flowers for an herbal bouquet and hazy sunset hue, and white pepper for a bit of spicy twang, we’ve created FIFTEEN — a unique drinking experience inspired by the wild farmhouse ales of Belgium. Though immensely complex today, more flavors will emerge with time, so throw a few bottles in your cellar for future celebrations.

It will be available beginning May 5 in 22 oz. bottles, but you can get some before that by attending the Fifteen Release Party at the Avery Tasting Room on Wednesday, April 30th from 4-7 pm. Tickets will be $10.

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The Oregon Brewers Festival is a mere three months away, but already tickets are on sale for the Oregon Brewers Brunch and Parade, which will take place the morning of the first day of the festival. This year, the brunch will be held at PGE Park, 1844 SW Morrison, on July 24 beginning at 9:00 a.m. The brunch is limited to 300 people. An order form for tickets to the brunch and parade are available online. It will be sponsored by Widmer Bros. Brewing.

From the press release:

Tickets are $20, which includes brunch, Widmer beer, a parade t-shirt and an OBF festival mug (good all weekend long). It’s the deal of the century! The event is limited to 300.

At 11 a.m., brewers and beer lovers will set out for an old-fashioned parade, accompanied by marching band music. The parade will wind its way for approximately one mile through Portland sidewalks to the opening ceremonies and the tapping of the inaugural keg of the 21st annual Oregon Brewers Festival.

Here are some photos from last year’s parade, which began at Rogue.

Portland Mayor Tom Potter with festival organizer Chris Crabb as the parade begins.

The parade wound its way through Portland’s downtown until everyone massed across the street from the festival grounds and crossed the street to enter the festival and tap the ceremonial keg, signaling the opening of the festival.

Perhaps I’ll see you there this year.

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Jon, from the Brewsite, predicted at the beginning of this year that 2008 would be the Year of the Beer Blog. He may be onto something. Charlie Papazian just started his own beer blog, the Beer Examiner; named not so much for what he hopes to write about, but because it’s hosted on the Examiner chain of newspapers website (with print editions in 3 cities and local news online in 57 cities). Papazian, of course, founded what is now the Brewers Association way back in 1978, and has naturally been paying closer attention to the brewing industry far longer than most of us. So it should certainly prove illuminating to follow along with his near-daily “examinations” of what’s going on in the beer world. Charlie’s perspectives are always worth hearing, and I was pleased I got a chance to sit and chat with him, and a few others, during one of the trade show buffet lunches last week. I must confess I was initially surprised that his new blog wasn’t associated with the BA, but he should be able to reach a much wider audience this way so I think it does make sense. Plus he can write his own personal opinions without having to worry about speaking for the Brewers Association.

Welcome to the blogosphere, Charlie. We’re glad to have you with us.

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