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Going Green For Charity

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Each year, Stone Brewing does a fun charity event where employees and fans dye their hair a particular color and ask people to pledge money to their charity — The Boys & Girls Club of San Marcos, Looks Like Me!, The Palomar Family YMCA and the Palomar Pomerado Health Foundation. I’ve considered it every year but each year I prove how lazy I really am, because I never do. But I like to at least support the efforts of those who do step up. This year the color was green, the color of hops. I could have given to a number of friends at Stone, like brewmaster Mitch Steele (who’s been my roomie for GABF judging) or co-founders Greg Koch and Steve Wagner. But instead I chose Dave Hopwood, who’s Stone’s northern California sales rep. I’d like to say it’s because he’s most deserving, but the reality is I saw his plea for donations on Twitter first a few weeks back. That being said, he certainly is deserving, and so is the charity. I see Dave a lot at local events and he’s a member of my Philopotes Society, too. Today he tweeted that’s he’s still short of his modest goal so I’m posting this in the hopes of helping him reach that goal. C’mon people, it’s for the kids. Anyway, to donate to his cause, visit his Stone Dye-Hards page. If you’d prefer to donate to another Stone Dye-Hard, check out the full list of Dye-Hards. But hurry, donations must be in by August 30.

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Dave Hopwood, gone green for charity.

Yuengling Phasing Out Returnables

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I wrote about this last week, where the focus was on the Straub Brewery, in The Extinction Of Returnable Beer Bottles, but they did mention the decision by Yuengling to discontinue offering returnable bottles. Today my old hometown newspaper growing up, the Reading Eagle, picked up the story but centered instead on Yuengling. In Returnable Bottles Leave Beer Drinkers Cold, Dick Yuengling explains the reasons for discontinuing returnables.

Yuengling said returnable bottles still make great sense ecologically. He said that at one point 60 percent of his business was in returnable bottles.

“Now, if you showed a 16-ounce returnable bottle to a 22-year-old, he wouldn’t know what the heck it was,” Yuengling joked. “I like the idea. I installed a bottle washer at our new (Pottsville) location. I was going to try to revive the returnables but the customer just doesn’t want them anymore.”

According to the Beer Institute, in 1981 about 12% of beer sold was in returnable bottles. Today it’s just under 0.3% … and dropping fast. As I opined last week, even though I understand the rationale for this, I still can’t help but lament it. It just feels like a lost opportunity in our current obsession with being green. I did a lengthy feature article for All About Beer magazine a few years ago about brewery’s green practices, and I was astounded by how much most breweries, both big and small, were doing.

It seems like going back to returnables, while undoubtedly difficult and expensive, would be a great way to keep local beer local and show the craft beer industry’s leadership in recycling and being ecological. It may be nearly impossible to ramp up by any national company, but the smaller the brewery, the more manageable it could be, giving an advantage to local brewers. Oh, well, I know it’s not going to happen, but I can still dream.

Next Session: New Kids On The Bock

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Our next Session is fast approaching, ten days away to be exact. This month’s host will be Carla Companion, better know as The Beer Babe. Her topic is The New Kids, by which she means the many, many new breweries that have started up in the last couple of years.

Here’s how she explains it:

Picture yourself starting school, on a cool, crisp September day. Only, you’re not as excited as you usually are because you’re starting at a new school. No one knows who you are, groups of friends are already established, and you have nightmares about getting lost in the hallways trying to find your next class. How will you ever fit in?…

In some ways, there may be a beer-world parallel to this experience: new craft breweries joining an established beer community, or even tougher, breaking into a non-craft beer town.
….

With the astounding growth of the number of craft breweries this year, chances are there’s a new one in development, or has just started out in your area. My challenge to you is to seek out a new brewery and think about ways in which they could be welcomed into the existing beer community. How does their beer compare to the craft beer scene in your area? Are they doing anything in a new/exciting way? What advice, as a beer consumer, would you give to these new breweries?

Take this opportunity to say hello to the new neighbors in your area. Maybe its a nanobrewery that came to a festival for the first time that you vowed to “check out” later. Maybe it’s a new local beer on a shelf on the corner store that you hadn’t seen before. Dig deeper and tell us a story about the “new kids on the block.” I look forward to welcoming them to the neighborhood!

Join the welcome wagon on Friday, September 3, and tell us about your favorite new brewery.

Asia Overtakes Europe In Beer Consumption

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For a long while Europe has led the world in beer consumption by continent and also by nation since the EU has increased in economic prominence as a single entity. According to new data by Credit Suisse, China now leads the world in terms of beer consumption, growing at a pace of about 10% per year. The Economist has more details in All Pints East.

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SABMiller May Buy Foster’s

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London’s Sunday Times is giving credence to the rumors and is reporting that SABMiller is seriously considering buying Carlton & United Breweries from the Foster’s Group, the makers of Foster’s, for $10.9 billion.

Earlier this year the Foster’s Group announced that next year that they would split their wine and beer divisions, and rumors began of potential buyers. Since SABMiller already owns the rights to Foster’s in the U.S. and India, speculation naturally centered on them, and now it looks likely they will make a bid for it. This would also give SABMiller Australia’s best-selling beer, Victoria Bitter, and a stronger presence throughout southeast Asia.

Is A-B Eyeing The Craft Brewers Alliance?

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In a provocative article today, the business-oriented website, TheStreet.com, which describes itself as the “leading digital financial media company,” pondered whether Anheuser-Busch InBev might possibly be considering buying the Craft Brewers Alliance (CBA). The piece, by Miriam Reimer, entitled Anheuser-Busch Takeover Target: Craft Brewers Alliance?, certainly had the wags wagging on the blogosphere today.

There’s a great reminder of just how insignificant craft beer is to the business world in the opening paragraph, which refers to the CBA as that “little-known craft beer maker.” Compared to the big two, that’s understandable, but given that the brands in CBA are some of craft’s biggest players, it’s also pretty funny and humbling. But it’s good to remember that what many of us take so seriously is just a very small sliver of a much bigger pie.

At any rate, the idea of ABI buying the CBA was floated by Washington Street Investments president Bryce Peterson. Despite stating that “such speculation is premature,” he had no problem engaging in it himself. The thinking is, apparently, that ABI “might think it’s smart to buy a strong brand in the craft area and use its incredible distribution and marketing strengths to grow the acquired business.” Which sounds good on paper, but that’s exactly the reason that Anheuser-Busch earlier invested in the CBA brands individually, before their merger in 2008. When craft beer was beginning it’s latest growth trend, A-B distributors started wanting to carry some, too, and that drove A-B to partner with RedHook and Widmer to satisfy that demand. As a result, I’m not sure what buying the remaining 64.4% of CBA that ABI does not own would accomplish. The bulk of the article is given over to share prices, quarterly sales, and other business analysis. It’s interesting, up to a point, but all the numbers don’t seem to manage to answer the basic question of what advantage there would be for ABI. Plus, isn’t ABI still trying to trim the fat to pay for buying Anheuser-Busch?

The article concludes with a poll, asking readers to answer the question posed by the title: “Yes — Anheuser-Busch sees long-term potential in Craft’s growing corner of the market” or “No — Anheuser-Busch wouldn’t bother with such a small-time player.” What’s surprising is that as of this evening better than 17% thought “no.” They obviously are oblivious to A-B’s history. I’ve never seen a niche market too small for them try to own or destroy … ever. And InBev is even more ruthless than A-B was, so it’s hard to imagine them not going after craft beer in some fashion. Whether it will be by buying the CBA, at least at this point, is still an open question.

UPDATE 8.26: Author Miriam Reimer did a follow-up article to this one, Anheuser-Busch Thirsty for Craft Brewers, Poll Says, focusing on the poll at the end of it. She contacted me about the piece, and we spoke on the phone for a good half-hour, quoting me briefly in the article on page 2.

You Should Know Jack

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Jack McAuliffe may just be the most elusive figure in the short history of craft beer. He was craft before craft beer was cool. The former Navy man and engineer founded the very first modern microbrewery in Sonoma County, California in 1976 (New Albion incorporated October 8, 1976) and began production the following year using a brewery he built from spare parts. His New Albion Brewery was all alone for at least three years until Sierra Nevada Brewing joined him in 1980, essentially doubling the number of new breweries.

But New Albion was a bit ahead of its time and by 1982 was out of business. As I understand it, a disheartened McAuliffe tired of reliving his brewery’s failure, and eventually disappeared from the burgeoning beer community that his efforts inspired. For a number of years, few people knew where he was, but Maureen Ogle managed to track him down living in Las Vegas when she was working on Ambitious Brew and provides one of the fullest accounts of the New Albion Brewery beginning at Page 291. More recently, after a bad car accident landed McAuliffe in intensive care, he moved to San Antonio, Texas to live with his sister. Happily, San Antonio has taken to their adopted son, and the San Antonio Express-News had a nice story about Jack and his new collaboration with Sierra Nevada Brewing, San Antonio’s Jack McAuliffe is namesake of commemorative Sierra Nevada beer.

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Ken Grossman pours a beer for Jack McAuliffe as (I think) Charlie Bamforth looks on.

The latest collaboration beer celebrating Sierra Nevada’s 30th anniversary this year is based on a beer that Jack used to make at New Albion for another annual celebration.

In the late ’70s, New Albion brewed a special beer for annual Summer Solstice parties that didn’t particularly hew to any style, but occupied a space somewhere between a porter and a barley wine.

Using that concept and the ingredients that were available at the time, Ken and Jack’s Ale recipe was born. It contains Canadian two-row and European caramel barley and a combination of Cascade and cluster hops.

Grossman describes the beer as a “dark barleywine that is bottle fermented.” It clocks in at 10 percent ABV, which McAuliffe points out is the upper limit of what conventional yeast can survive. Like any beer, you can drink this one right away, but it will likely improve with age.

It’s certainly great to see Jack McAuliffe in the public eye again. Few people deserve to be more well-known in the beer world than him. It’s a real shame that so few people know Jack and his contribution to the modern craft beer community. We all really should know Jack. Hell, I think October 8 should be considered the birthday of modern craft beer, which in a couple of weeks will celebrate its 34th. Let’s all raise a toast to Jack, every year, on that day.

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Jack & Ken’s Ale, a black barley wine.

MillerCoors Launches Craft & Import Division

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While MillerCoors had already announced their intention to start up a new division dedicated to its smaller brands and imports, today they announced that Tenth and Blake Brewing Co. was open for business. There’s no website yet, but there is a Facebook page.

Here’s the press release:

Tenth and Blake Beer Company Opens for Business

Earlier this summer, MillerCoors announced plans for a new company focused on craft and import beers, aimed at strengthening relationships within the beer industry and enhancing the overall segment’s volume and growth. Today, to reflect the passion, great brewing tradition and entrepreneurial spirit of its beer brands, the company announced its new moniker. Tenth and Blake Beer Company is now officially open for business.

“This is a unique and exciting period in the beer business,” said Tom Cardella, the company’s CEO and President. “With the added focus on our craft and import brands and the talent within our brewing network, Tenth and Blake Beer Company has the opportunity to make an impact and continue to help grow this segment. We’re made up of passionate brewers and merchants of the world’s finest specialty brews, and we look forward to celebrating the joy of beer with beer drinkers throughout the U.S.”

The organization wanted a name that reflects its great beer heritage from MillerCoors, while highlighting its unique and differentiated position in the industry. The 10th Street Brewery in Milwaukee brews Leinenkugel’s and various specialty beers. And Blake Street in Denver is home to the Blue Moon Brewing Company at the Sandlot. These facilities will be primary sources of many of the company’s brews, while serving as incubators of ideas and future beers.

The company’s network of brewing expertise extends beyond Denver and Milwaukee, with the Leinenkugel’s Brewery in Chippewa Falls, Wis. and the AC Golden brewery in Golden, Colo. In addition to craft brews like Blue Moon, Leinenkugel’s, and Colorado Native, Tenth and Blake Beer Company features top imports, such as Peroni Nastro Azzurro, Pilsner Urquell and Grolsch.

“Employees of Tenth and Blake Beer Company will take beer passion, education and capabilities to the next level,” Cardella said. “All team members will participate in training at one of our breweries, take part in beer merchant sessions and go through sales training to better understand and serve our customers.”

As an independent yet connected company, Tenth and Blake will own the strategic business drivers — marketing, trade marketing and an independent sales organization dedicated to the craft and imports business. The company will in-source other capabilities from MillerCoors, including legal, communications, HR, marketing services and consumer insights.

Hmm, I’m not sure what to make of that. Is it an admission that such a large, global company is too big to think small in the way one needs to for promoting and successfully selling smaller, niche brands? Or is it simply easier to parse out the tasks to two independent groups, one that has to think big picture, freeing the other to think small and more local? On the other hand, with sales of core brands flat or soft, perhaps it makes sense to give more focus to the smaller brands that actually are doing well.

Harry Schuhmacher from Beer Business Daily, reports that “Tom, in a letter to distributors obtained by BBD, writes that they have built a team of ‘brewers and merchants of the world’s finest specialty brews, celebrating the joy of beer with our customers and consumers’ to build a ‘deeper relationship’ with customers.” That sounds a little too rah-rah for my tastes, but then that was probably its intention.

Schuhmacher spoke to Tenth and Blake head honcho Tom Cardella, and he told him the following:

Tom says that their “entire team will participate in specially designed on-boarding programs that will include spending several weeks working inside our breweries and being certified in our beer merchant training. And everyone from the janitor to the CEO will go through sales training to better understand and serve our distributor and retailer customers. We will be an organization of merchants sharing our love of our great beers and creating value in the market.”

The new unit will have a “dedicated new sales organization” that will bring “focus” and they will provide a “dedicated supply chain function to ensure coordination of the fine motor skills needed to service smaller specialty brands” while still providing the services of a big corporation with regards to “legal, communications, HR, marketing services and consumer insights.”

The new unit will develop “distributor beer merchants (DBMs) in a whole lot of markets working side-by-side with you, our distributor partners.” DBMs will be “soley” dedicated to their import and craft brands with dedicated brewery “managers” who will “own and execute the craft and import portfolio for each of their respective management units, delivering wins to our general managers.”

And the Milwaukee Business Journal added:

MillerCoors’ 10th Street Brewery in Milwaukee brews Leinenkugel’s and various specialty beers, and Blake Street in Denver is home to the Blue Moon Brewing Co. at the Sandlot. The facilities will be primary sources of many of the company’s brews, while serving as incubators of ideas and future beers, the Chicago-based brewer said.

MillerCoors also operates the Jacob Leinenkugel’s Brewing Co. in Chippewa Falls and the AC Golden brewery in Golden, Colo. In addition to craft brews like Blue Moon, Leinenkugel’s and Colorado Native, Tenth and Blake Beer Company will be responsible for imports such as Peroni Nastro Azzurro, Pilsner Urquell and Grolsch.

Actually, according to the Facebook page, here’s the list of beers Tenth & Blake will be responsible for:

  • AC Golden brands (see below)
  • Aguila
  • Batch 19
  • Blue Moon
  • Colorado Native (AC Golden)
  • Cristal
  • Cusquena
  • Grolsch
  • Henry Weinhard’s
  • Herman Joseph’s (AC Golden)
  • Kasteel Cru
  • Killian’s
  • Lech
  • Leinenkugel’s
  • Peroni
  • Pilsner Urquell
  • Sandlot brands (Brewmaster’s Special, Ski Brews, Barmen, Championship Amber Ale, Right Field Red, Slugger Stout, Power Alley ESB)
  • Tyskie
  • Winterfest (AC Golden)

That should keep them busy.

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Mendocino Brewing Acquires Butte Creek

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Ukiah’s Mendocino Brewing announced today that it’s acquired Butte Creek Brewing and “will be brewing these beers at its state-of-the-art brewery at Ukiah, CA.” Butte Creek was originally founded Chico, California, in 1998 by former brewers from Sierra Nevada Brewing Co.

From the press release:

Butte Creek Beer — “The Official Beer of Planet Earth.”

Butte Creek’s mission statement has been: “At Butte Creek Brewing, we handcraft award winning earth-friendly organic ales and lagers. Since 1998, we have been committed to producing organic products focused on quality, balance, and true hop flavor. We support organic farming and promote sustainability in our community. We fight against global warming by reducing our carbon imprint.”

Mendocino Brewing CEO, Yashpal Singh, had this to say about the acquisition. “We’re proud to be the brewers of ‘The Official Beer of Planet Earth’. We fully endorse and will pursue Butte Creek’s mission. This acquisition blends perfectly with our own policy of brewing quality, full-bodied ales for the discerning beer lover.”

Mendocino Brewing Company will brew and market Butte Creek brands under its dba Butte Creek Brewing Company.