Business

Diageo vs. brew-dog
Wow! Just wow. Anyone paying attention knows that the corporate world doesn’t like to play fair if they can get away with it, and they usually can. They bigger they are, the more resources they command, the easier it is to bully, cajole and generally get their way. It gives them an unfair advantage, of course, but that’s the way of the world, from the playground bully to the largest multi-national. Obviously, that behavior is not restricted to the alcohol industry, but since that’s the world I’m most familiar with, that’s where I see it the most. From free t-shirts, tickets to the 49ers and even free kegs, it’s been an underlying current in the beer business for at least the twenty years I’ve been paying attention to it, and undoubtedly far longer. It’s one of those things that everybody knows about but few people talk about openly. But this one is pretty hard to ignore.

This past weekend, while much of the beer world was listening to the World Beer Cup awards being announced, over the pond in Glasgow, Scotland, another award show was taking place. This one was the 2012 British Institute of Innkeeping Scotland Annual Awards, which celebrates “success in the license [pub] trade in Scotland.” BrewDog, whose pubs have been making quite a splash, were up for the “Bar Operator of the Year” award. When it came time for the announcement, the award went to another company. But one of the BII judges was seated at the BrewDog table and cried foul. According to BrewDog’s blog, the surprised judge said “this simply cannot be, the independent judging panel voted for BrewDog as clear winners of the award.” When the alternate winner went up on stage to accept the award, they found that “BrewDog” had already been engraved on the award and refused to accept it.

Yesterday, BrewDog received a call from the BII explaining where and how things went awry:

We are all ashamed and embarrassed about what happened. The awards have to be an independent process and BrewDog were the clear winner.

Diageo (the main sponsor) approached us at the start of the meal and said under no circumstances could the award be given to BrewDog. They said if this happened they would pull their sponsorship from all future BII events and their representatives would not present any of the awards on the evening.

We were as gobsmacked as you by Diageo’s behaviour. We made the wrong decision under extreme pressure. We were blackmailed and bullied by Diageo. We should have stuck to our guns and gave the award to BrewDog.

Wow, right? I give credit to the BII for at least admitting what happened and taking whatever consequences will likely come their way. Diageo, on the other hand, is claiming it was a “rogue agent,” an employee who went too far. The makers of Guinness released this statement today:

Diageo has provided the following statement in response to communications from independent brewer, BrewDog, in relation to the British Institute of Innkeeping Scottish Awards on Sunday 6 May 2012.

A Diageo spokesperson: “There was a serious misjudgement by Diageo staff at the awards dinner on Sunday evening in relation to the Bar Operator of the Year Award, which does not reflect in any way Diageo’s corporate values and behaviour.

We would like to apologise unreservedly to BrewDog and to the British Institute of Innkeeping for this error of judgement and we will be contacting both organisations imminently to express our regret for this unfortunate incident.”

So somebody probably had to fall on their sword and be the patsy for what is more likely business as usual. Pete Brown asked Diageo for a statement, and they responded with the same one that now appears on their website. Pete also added the following:

I’ve got more to say about the increasingly shameless bullying and anticompetitive tactics employed by some (but not all) big brewers, but this one really takes the biscuit. Diageo, having been caught red handed, had no option but to blame it on a rogue element, and we must take them at their word. But does this reveal something deeper about the attitudes of some global brewing corporations?

Since he’s closer to the British (and Scottish) beer business than I am, it will be interesting to hear his take on things in the near future as he promised to expound on this incident and talk about the larger issue of institutionalized influence by the global beer companies. But still, I can’t help but shake my head and just keep repeating, “wow.”

{ 2 comments }

The Top 50 Annotated 2011

by Jay Brooks on April 17, 2012 · 7 comments

in Breweries,Editorial,News

ba
This is my sixth annual annotated list of the Top 50 so you can see who moved up and down, who was new to the list and who dropped off. So here is this year’s list again annotated with how they changed compared to last year.

  1. Anheuser-Busch InBev; #1 last six years, no surprises
  2. MillerCoors; ditto for #2
  3. Pabst Brewing; ditto for #3
  4. D. G. Yuengling and Son; Same as last year
  5. Boston Beer Co.; Same as last year
  6. North American Breweries; 2nd year on the list, up 2 from #8 last year
  7. Sierra Nevada Brewing; Down 1 from #6 last year
  8. New Belgium Brewing; Down 1 from #7 last year
  9. Craft Brewers Alliance; Same as last year, after dipping down 1 the previous two years
  10. Gambrinus Company; Same as last year, though now listed as Gambrinus instead of Spoetzl
  11. Deschutes Brewery; Same as last year
  12. Matt Brewing; Up 1, after moving down 1 last year
  13. Bell’s Brewery; Up 2 from #15 last year
  14. Minhas Craft Brewery; Same as last year, after dropping 2 the prior year
  15. Harpoon Brewery; Up 1 from #16 last year
  16. Lagunitas Brewing; Jumped up 10 from #26 last year, their second such jump in 2 years, having been at #36 two years back
  17. Boulevard Brewing; Same as last year
  18. Stone Brewing; Up 5 from #23 last year
  19. Dogfish Head Craft Brewery; Same as last year, after shooting up 5 from #24 last year, being up 9, 5 and 4 the three previous years
  20. Brooklyn Brewery; Up 5 from #25 last year
  21. Alaskan Brewing; Down 1 from #20 last year
  22. Long Trail Brewing; Down 1 from #21 last year, after leaping up 14 from #35 the previous year
  23. August Schell Brewing; Down 1 from last year
  24. Shipyard Brewing; Up 4 from #28 last year
  25. Abita Brewing; Down 1 from last year
  26. World Brew/Winery Exchange; Up 11 from #37 last year
  27. Great Lakes Brewing; Up 4 from #31 last year
  28. New Glarus Brewing; Up 2 from #30 last year
  29. Full Sail Brewing; Down 2 from #27 last year
  30. Pittsburgh Brewing (fka Iron City); Up 3 from #33 last year
  31. Summit Brewing; Down 2 from #29
  32. Anchor Brewing; Same as last year
  33. Firestone Walker Brewing; Up 3 from #36 last year
  34. Cold Spring Brewing; Jumped up 13 from #47 last year
  35. SweetWater Brewing; Up 3 from #38 last year
  36. Rogue Ales Brewery; Down 1 from #35 last year
  37. Mendocino Brewing; Up 2 from #39 last year
  38. Flying Dog Brewery; Up 2 from #40 last year
  39. Victory Brewing; Up 2 from #41 last year
  40. CraftWorks Breweries & Restaurants (Gordon Biersch/Rock Bottom); Now combined, last year Gordon Biersch brewpubs were #42 and Rock Bottom was #48
  41. Oskar Blues Brewing; Up 8 from #49 last year
  42. Odell Brewing; Up 3 from #45 last year
  43. Stevens Point Brewery; Up 1 from #44 last year
  44. Ninkasi Brewing; Not in Top 50 last year
  45. BJs Restaurant & Brewery; Down 2 from #45 last year
  46. Blue Point Brewing; Not in Top 50 last year
  47. Bear Republic Brewing; Not in Top 50 last year
  48. Goose Island Beer; Plummeted 30 from #18 last year, after selling their production brewery to Anheuser-Busch InBev
  49. Lost Coast Brewery; Not in Top 50 last year
  50. Narragansett Brewing; Not in Top 50 last year

Some new companies made the list, one from a merger — Gordon Biersch and Rock Bottom — now CraftWorks Breweries & Restaurants, along with Bear Republic, Blue Point, Lost Coast (which had been on the list two years ago), Narragansett and Ninkasi.

Off the list was Straub, Independent Brewers United (IBU), which was swallowed up by North American Breweries, Kona Brewing, which was folded into the Craft Brewers Alliance, and individually Gordon Biersch and Rock Bottom were combined into CraftWorks Breweries & Restaurants.

If you want to see the previous annotated lists for comparison, here is 2010, 2009, 2008, 2007 and 2006.

{ 7 comments }

Top 50 Breweries For 2011

by Jay Brooks on April 17, 2012 · 0 comments

in Breweries,News

ba
The Brewers Association has also just announced the top 50 breweries in the U.S. based on sales, by volume, for 2011. This includes all breweries, regardless of size or other parameters. Here is the new list:

  1. Anheuser-Busch InBev; St Louis MO
  2. MillerCoors; Chicago IL
  3. Pabst Brewing; Woodridge IL
  4. D. G. Yuengling and Son; Pottsville PA
  5. Boston Beer Co.; Boston MA
  6. North American Breweries; Rochester, NY
  7. Sierra Nevada Brewing; Chico CA
  8. New Belgium Brewing; Fort Collins CO
  9. Craft Brewers Alliance, Inc.; Portland, OR
  10. Gambrinus Company; San Antonio TX
  11. Deschutes Brewery; Bend OR
  12. Matt Brewing; Utica NY
  13. Bell’s Brewery; Galesburg MI
  14. Minhas Craft Brewery; Monroe WI
  15. Harpoon Brewery; Boston, MA
  16. Lagunitas Brewing; Petaluma CA
  17. Boulevard Brewing; Kansas City MO
  18. Stone Brewing; Escondido CA
  19. Dogfish Head Craft Brewery; Lewes DE
  20. Brooklyn Brewery; Brooklyn NY
  21. Alaskan Brewing; Juneau AK
  22. Long Trail Brewing; Burlington VT
  23. August Schell Brewing; New Ulm MN
  24. Shipyard Brewing; Portland ME
  25. Abita Brewing; New Orleans LA
  26. World Brews/Winery Exchange; Novato CA
  27. Great Lakes Brewing; Cleveland OH
  28. New Glarus Brewing; New Glarus WI
  29. Full Sail Brewing; Hood River OR
  30. Pittsburgh Brewing; Pittsburgh PA
  31. Summit Brewing; Saint Paul MN
  32. Anchor Brewing; San Francisco CA
  33. Firestone Walker Brewing; Paso Robles CA
  34. Cold Spring Brewing; Cold Spring MN
  35. SweetWater Brewing; Atlanta GA
  36. Rogue Ales Brewery; Newport OR
  37. Mendocino Brewing; Ukiah CA
  38. Flying Dog Brewery; Frederick MD
  39. Victory Brewing; Downington PA
  40. CraftWorks Breweries & Restaurants (Gordon Biersch/Rock Bottom); Chattanooga TN/Louisville KY
  41. Oskar Blues Brewery; Longmont CO
  42. Odell Brewing; Fort Collins CO
  43. Stevens Point Brewery; Stevens Point WI
  44. Ninkasi Brewing; Eugene OR
  45. BJs Restaurant & Brewery; Huntington Beach CA
  46. Blue Point Brewing; Patchogue NY
  47. Bear Republic Brewing; Cloverdale CA
  48. Goose Island Beer; Chicago IL
  49. Lost Coast Brewery; Eureka CA
  50. Narragansett Brewing; Providence RI

Here is this year’s press release.

{ 0 comments }

The American Beer Revival

by Jay Brooks on February 9, 2012 · 0 comments

in Just For Fun

usa
Regular Bulletin readers know how much I love infographics, a marriage of data and graphic illustration that shows information in a beautiful and understandable way. So I was thrilled when I got an e-mail this morning from a new Silicon Valley start-up, Visual.ly, whose mission is just that, to create and help others create cool visual charts, infographics and videos.

One of their latest works is The American Beer Revival, created by Nate Whitson. Here’s how they describe it:

Over the last hundred or so years, the brewing industry in the United States has changed dramatically. From the saloon era through consolidation to today’s flourishing craft beer culture, it’s been quite a ride. Take a look at how the small brewer is making quite a comeback after nearly a half century of decline.

But better yet, just watch.

{ 0 comments }

tenth-blake
Amid recent rumors, the Tenth and Blake Beer Company, the craft-and-import division MillerCoors created last year, announced today that they’re purchasing Crispin Cider, which includes both the Crispin and Fox Barrel hard cider brands.

Crispin-Cider

From the press release:

Minneapolis-based Crispin sold its first cases on St. Crispin’s Day, October 25, 2008. The company grew approximately 200 percent in 2011, outpacing the overall cider category’s 26 percent growth during the same period, and is already the No. 3 producer of cider in the U.S.

“Our vision is to accelerate our portfolio expansion within the world’s most exciting beer market. With cider’s explosion in the U.S., we were looking at the best way to participate in that growth,” said Tenth and Blake President and CEO Tom Cardella. “As we explored the category, Crispin stood out, not only because they were the most progressive and innovative producer, but also because we shared great personal chemistry. In addition to the best cider portfolio in the business, we love their energy, creativity and unsurpassed innovation capability. They make us an even better company right away.”

The deal includes Crispin’s affiliate, Fox Barrel Cider Company.

“We’re thrilled to be part of the Tenth and Blake family,” said Joe Heron, Crispin’s CEO. “We’ve always had very ambitious plans, and we’re proud of what we’re achieving with great products and an unrivaled creativity that mirrors the inspirational American craft-beer ethos. Tenth and Blake provides us the capability to scale up at the same pace as our increasingly accelerating demand in the U.S. and beyond.”

Crispin Cider Company produces European-style natural hard apple ciders using fermented unpasteurized fresh-pressed apple juice in Original, Light and Brut varietals, as well as additional unfiltered Artisanal Reserves — Honey Crisp, Lansdowne, The Saint and Cho-tokkyu, and also imports a classic English Dry Cider, Crispin Browns Lane.

Crispin affiliate, Fox Barrel Cider Company, is dedicated to the production of superior pure pear ciders, using fermented unpasteurized fresh-pressed pear juice. Available in Pacific Pear, Blackberry Pear and Apricot Pear varietals and additional unfiltered Cidery Reserves — Ginger & Blackcurrant and Rhubarb & Elderberry.

Crispin will be run as an independent division of Tenth and Blake.

Basic CMYK

In addition to these two cider brands, Tenth and Blake also controls the following brands: “Blue Moon Brewing Co. at the Sandlot in Denver, Jacob Leinenkugel Brewing Co. in Chippewa Falls, Wis., 10th Street Brewery in Milwaukee, AC Golden in Golden, Colorado, Birra Peroni in Rome and Plzeňský Prazdroj (Pilsner Urquell) in Pilsen, Czech Republic. Tenth and Blake beers include Blue Moon Belgian White, Leinenkugel’s Honey Weiss, George Killian’s Irish Red, Batch 19, Henry Weinhard’s IPA, Colorado Native, Pilsner Urquell, Peroni Nastro Azzurro and Grolsch.”

{ 1 comment }

spirits-wine-beer
The Distilled Spirits Council, a trade organization for producers of distilled spirits, just released their annual report on how spirits are doing relative to the other alcoholic beverages. Vodka continues to lead the spirits parade, with rum in second and tequila in third.

alcohol-sales-2011

While beer continues to be the most popular adult beverage, spirits once again took market share from beer, which was up 4% by sales in 2011 over 2010. According to their figures, beer currently enjoys 49.3% of the alcohol market, with spirits having 33.6% and wine 17.1%. [Note: I can't account for the 0.1% difference in the two charts. They're supposedly taken from the same source, though the one below is directly from the Distilled Spirits Council.]

spirits-wine-beer-2011

While 49.3% sounds pretty good, the year before it was 49.8%

spirits-wine-beer-2010

And in 2000, only 11 years ago, it was 55.5%, meaning beer has lost 6.2% marketshare in just over a decade. Hey, beer people; you’re just not pulling your weight. Drink a few more beers tonight. A can (or bottle or pint) a day, that’s all we ask.

spirits-wine-beer-2000

{ 0 comments }

Big Changes At A-B InBev

January 23, 2012

Wow, there’s a lot going over at Anheuser-Busch InBev, and besides the slip in sales of their core brands. Last week, rumors abounded that ABI was planning to roll out some version of 100% Share of Mind, which had been the “unofficial” policy until a few years ago, when it became unworkable. I wrote about [...]

Keep Reading →

Paper or Plastic & Beer

January 18, 2012

Here’s an odd little story from Virginia, sent in by an alert reader (thanks Jeff). In many places, there’s a growing debate about plastic bags, paper bags or no bags at the grocery store. In Virginia, there currently is no law regarding them, but that hasn’t stopped stores all along the southeastern coast of Virginia [...]

Keep Reading →

Coors Light: Now The Avis Of Beers

January 14, 2012

I’m not exactly sure why this appears to be such big news, but it seems to be everywhere. Beer Marketer’s Insights is reporting that, based upon estimated numbers for 2011, Coors Light has overtaken Budweiser to become the 2nd best-selling beer in America. According to the report, “[t]his is the first time in almost 20 [...]

Keep Reading →

Yuengling Becomes Biggest American Brewery

January 13, 2012

According to new estimated beer sales data for 2011 from Beer Marketer’s Insights, Yuengling Brewery in Pottsville, Pennsylvania has now eclipsed the Boston Beer Co. (makers of Samuel Adams) to become the biggest American brewery. Yuengling’s area newspaper, the Lehigh Valley’s The Morning Call, had the story this morning. The numbers shake out like this: [...]

Keep Reading →

Brewing Up: WSJ Beer Sales Infographic

December 29, 2011

The Wall Street Journal, through their WSJ News Graphics twitter feed, posted the following graphic on TwitPic, showing yearly beer sales through November 2011. This data is from Nielsen and the Brewers Association. A couple of weeks ago I posted similar numbers, but with data from Symphony IRI, in Beer Sales By Style Through Thanksgiving. [...]

Keep Reading →

Mission Rock Cafe To Become Brewery In 2012

December 27, 2011

Yet another new brewery is apparently coming to San Francisco next year. According to the San Francisco Chronicle and SF Weekly, the Mission Rock Cafe, in China Basin not to far from the stadium where the Giants play, will soon become a brewery. Local publican Peter Osborne, who currently owns MoMo’s, Pete’s Tavern and Pedro’s [...]

Keep Reading →

Ownership Of Beer Brands & Varieties 2010

December 18, 2011

A couple of years ago, shortly after Anat Baron released her film Beer Wars, people kept asking her which big beer companies owned which beer brands. In December 2009, she put together a list of Who owns what? That inspired to me took take a closer look myself, and that produced my own list, The [...]

Keep Reading →

Mills River, North Carolina On The Short List For New Sierra Nevada Brewery

December 16, 2011

After Sierra Nevada Brewing‘s plans to build a brewery in Black Mountain, North Carolina fell through, they set their sites on the nearby town of Mills River as one possible location they’re considering. According to Blue Ridge Now, the Mills River location “is now among a ‘handful’ of possible locations for California-based Sierra Nevada to [...]

Keep Reading →

Beer Sales By Style Through Thanksgiving

December 11, 2011

MC Basset, publishers of the Beer Bible — better known by its official title, “The Essential Reference of Domestic Brewers and Their Bottled Brands” — in their monthly e-mail blast, Style Trends, “provided a snapshot of (YTD) beer sales by beer style.” The data they use was compiled by the Symphony IRI Group (IRI), using [...]

Keep Reading →

North Carolina Rebuffs Sierra Nevada

December 3, 2011

Sierra Nevada Brewing sells its beer in all fifty states, and has sold increasingly more over the last few years. Not surprisingly, there have been rumors circulating for some time about them building a brewery farther east, in such places as Tennessee and Virginia. It seems they had also identified a site in Black Mountain, [...]

Keep Reading →