Brookston Beer Bulletin

Jay R. Brooks on Beer

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Anchor Sale Completed

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It appears we’re in for a day of beer business news. Anchor Brewing Co. today is officially Anchor Brewers & Distillers, LLC, with the deal to purchase the brewery and the Anchor spirits division now completed by the Griffin Group. They’ve also announced a strategic partnership with Berry Bros. & Rudd, the UK’s “oldest wine and spirits merchant,” which was founded in the 17th century.

From the press release:

“Today marks a major milestone, culminating our work with Fritz Maytag to maintain the time-honored legacy of Anchor Brewing Company in San Francisco,” said Tony Foglio, Chairman of Anchor Brewers & Distillers.

Keith Greggor, CEO of Anchor Brewers & Distillers continued, “In addition to fostering the culture of craft brewing and artisan distilling in San Francisco, there is an undeniable affinity for Anchor beers and spirits around the globe. To support this interest, we’ll be advancing our commitment internationally through a partnership with Berry Bros. & Rudd.”

With a primary focus on the spirits portfolio, Anchor Brewers & Distillers has established a strategic partnership with Berry Bros. & Rudd, Britain’s oldest wine and spirits merchant with a history that spans over 300 years. Through the strategic partnership, Anchor Brewers & Distillers will introduce two of Berry Bros. & Rudd’s award-winning spirits not currently available in the US exclusively in San Francisco in the Fall 2010.

“This is an ideal partnership for Berry Bros. & Rudd as Anchor Brewers & Distillers shares our passion and dedication for fostering the heritage of hand-crafted, premium spirits brands, while also making them available to a growing global market,” added Jeremy Parsons, CEO of Berry Bros. & Rudd Spirits.

With the closing of the acquisition and the partnership with Berry Bros. & Rudd, Anchor Brewers & Distillers is further reinforcing its intention to establish a “Center of Excellence” in San Francisco for craft brewers and artisan distillers from around the world. Much like Berry Bros. & Rudd’s No. 3 St. James’s Street in London, whose doors first opened in 1698, the Anchor Brewers & Distillers “Center of Excellence” will serve as an epicenter of development, education, entertainment and innovation, all designed to further contribute to the culture and heritage of craft beer and artisan spirits.

“Throughout Anchor’s history, quality, tradition and innovation have been cornerstones to its success. There has been an evolution of Anchor’s ownership over the last 140 years with each owner contributing to the ongoing legacy of Anchor,” added Fritz Maytag. “Tony and Keith share that commitment wholeheartedly, as well as a commitment to evolving the Anchor legacy by partnering with companies like Berry Bros. & Rudd that have embraced those same values for over 300 years.”

In addition, the San Francisco Chronicle has more details in Anchor Brewing acquisition is official, in their business section.

A Done Deal: NAB Buys Magic Hat & Pyramid

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The deal that was rumored late last month is now completed. North American Breweries has bought the Magic Hat, Pyramid and Portland breweries. The deal includes three breweries, five alehouses and one retail store.

From the press release:

According to Rich Lozyniak CEO of North American Breweries, the new beers add craft brewing credibility, and variety to the beers currently offered by the company. “We are really excited to add Magic Hat, Pyramid and MacTarnahan’s beers to North American Breweries. All three brands have a rich history of craft brewing that helps us gain acceptance in that tight-knit community,” said Lozyniak. “By having more beers to offer our customers, wholesalers and retail accounts, we can better compete with the multi-national mega brewers who dominate the U.S. beer industry.”

Along with the new craft beer offering, North American Breweries also imports and sells Imperial, Labatt Blue and the Labatt family of beers. Out of its Rochester brewery it makes and sells the historic line of Genesee beer, Dundee Ales & Lagers, the Original Honey Brown Lager and Seagram’s Escapes.

“The industry has taken a turn away from the mega brewers. We have a collection of regional and heritage brands that position us well among today’s beer drinkers,” said Rich Lozyniak. “At a time when the overall beer industry is in decline, we’re growing across brands which essentially created a great opportunity to collaborate with some of the best craft brewers in the business.”

According to the company, the heritage and brand position of Magic Hat, Pyramid and MacTarnahan’s will be closely guarded. “The credibility that these brewers have developed in the craft beer segment is key to our success. We will work hard to carefully maintain and grow what was passionately created by people who love to drink and brew beer.”

The new brands mean the addition of three new breweries, one each in: Portland, Oregon; Berkeley, California; and Burlington, Vermont. Magic Hat is the 10th largest craft brewery in the country, while Pyramid is the fifth largest. Both companies have a strong following of loyal consumers who love the craftsmanship that go into each unique beer.

Together Magic Hat, Pyramid and the Portland Brewing Co. (MacTarnahan’s) employ about 600 people. Currently, North American Breweries has approximately 500. “We’re a hardworking group of people with a strong track record of brewing beer, building brands and executing in the marketplace,” said Lozyniak.

Interestingly, the press release also includes NAB’s plans and their promise, presumably to consumers and fans of the brands they’ve purchased. That’s not something I’ve seen before, and it suggests they understand how brand perception effects how a particular brand performs, especially to beer geeks in the craft beer world.

North American Breweries’ Plans for Magic Hat, Pyramid and MacTarahan’s

  • The beer will remain the same: it will be brewed by the same people in the same breweries, using the same recipes, ingredients and commitment to artisanship as it has always been.
  • All breweries, Alehouses and the Artifactory will remain open. They provide a unique opportunity to sample and showcase the company’s best beers and brewing capabilities. Through the retail locations, we can talk to customers about the beers they want us to make.

North American Breweries’ Promise

  • We will communicate regularly and openly to our employees and at times — the media — about our business.
  • We put a very high value on our people and believe they are key to helping us compete with the mega, multi-national brewers who dominate the U.S. beer industry.
  • We will grow our brands by introducing them to new consumers and in new geographies through a focused sales and distribution effort.
  • We believe in working with one another to make our company great. We regularly adopt best practices company-wide.

Urban Chestnut Brewery To Open In St. Louis By Former A-B Brewer

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This is excellent news. I just got an e-mail from Florian Kuplent, one of my favorite brewers at A-B (including Mitch Steele, of course). His Bavarian Wheat beer is/was divine. Last week he left A-B and along with fellow ex-A-B employee David Wolfe to open a new craft brewery in St. Louis. The new brewery, Urban Chestnut Brewing, will be located at 3229 Washington Avenue, “in an old 1920’s garage that has been outfitted to accommodate our ‘new world meets old world’ brewery’ in a district of St. Louis known as Midtown Alley.”
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From the press release:

Urban Chestnut Brewing Company (UCBC), an unconventional-minded yet tradition-oriented brewer of craft beer, is excited to announce its plans to open a micro-brewery in the Midtown Alley district of St. Louis, MO. UCBC plans to brew and distribute its draught and bottled beers to local restaurants, bars, grocery and liquor stores and other retail establishments in the St. Louis area.

Scheduled to launch in late 2010, UCBC is operated by two former Anheuser-Busch employees: Florian Kuplent, UCBC’s brewmaster, and David Wolfe, UCBC’s marketing and sales principal.

Co-founders Kuplent and Wolfe believe their passion for craft beer coupled with their unique expertise in creating, brewing and marketing beer will bring a fresh approach to the local craft beer market in St. Louis. The pair also shares a passion for local community development. By using local ingredients in their beer and food offerings whenever possible, and by partnering with local businesses and non-profit organizations, UCBC hopes to contribute to St Louis’ progression as a strong and vibrant local craft beer community and community as a whole.

  • UCBC will look to distinguish itself from other craft breweries through its unique brewing philosophy, Beer Divergencya ‘new world meets old world’ brewing approach wherein UCBC contributes to the ‘revolution’ of craft beer through artisanal creations of modern American beers, and pays ‘reverence’ to the heritage of beer with classically-crafted offerings of timeless, European beer styles.
  • Their philosophy is shaped around co-founder Florian’s lifelong passion for the culture and tradition of brewing and his dedication to the art and science of brewing. A German-born and educated brewmaster, Florian brings two decades of brewing expertise to UCBC. His career in brewing has spanned small and large brewers in the U.S, Germany, Belgium and England and his beers have won awards at the Great American Beer Festival, the North American Beer Awards and SIBA Wheat Beer Challenge. Florian is active in the brewing community serving as a judge at national and international beer festivals, as a contributor to brewing publications and as a member of various brewing clubs. It is his passion for creating new, artisanal beers coupled with his background rooted in the heritage and culture of beer that has helped to form UCBC’s brewing philosophy Beer Divergency. “In launching UCBC, my vision is to delve into both th3 exploration of modern, American craft beer and the traditions of old world brewing, simultaneously. It is the fusion of these two brewing cultures, new and old, that has shaped our brewing philosophy of ‘Beer Divergency’— embracing the revolution of American craft beer, while simultaneously appreciating the heritage of European beer,” Florian shares.
  • UCBC will work to contribute to St. Louis’ evolution in local craft beer by adding to the number of small, local brewers who distribute their beer in bottles. The co-founders believe St. Louis is a burgeoning local craft beer community that unquestionably boasts a significant community of knowledgeable craft beer drinkers and has a proud and active base of small brewers. UCBC sees an opportunity to add to the overall growth of and appreciation for local craft beer, by bottling and selling their beer at establishments all over town. Wolfe, who grew up in St. Louis, comments, “As UCBC prepares to join the community of small, St. Louis area brewers who are already contributing to the culture of local craft beer, we are excited to begin packaging our beer in both bottles and kegs, and we look forward to collaborating with as many local merchants as possible to reach as many beer drinkers as we can.”

Beyond distributing their beer, UCBC will have a taste room and outdoor biergarten where guests can enjoy UCBC beers and other locally brewed craft beers accompanied by small food pairings. Wolfe remarks, “Our taste room & biergarten won’t quite be the traditional brewpub. I like to tell people, ‘think wine bar for beer’; a casual place to hangout and experience a selection of local craft beers accompanied by small plates of cheeses, meats, and other little eats that pair well with beer.” Kuplent adds, “It is my goal to bring a little bit of Bavaria to UCBC. While our taste room will have a touch of old-world feel, our biergarten is where we’re trying to create an authentic, German beer-drinking experience by importing biergarten tables from Europe and planting shade-giving chestnut trees.”

The Urban Chestnut name is also derived from its philosophy of “Beer Divergency”; Urban—a nod to the locales of the modern craft beer revolution and Chestnut—a symbol of the heritage and tradition of beer; the chestnut tree has been utilized by Bavarian brewers for centuries to give shade to their biergartens and bierkellers.

According to the website, they’ll be doing two series of beers:

Revolution Series: Our contribution to the renaissance of craft beer—brewing artisanal, modern American beers.

Reverence Series: Our celebration of beer’s heritage—brewing classically-crafted, timeless European beer styles.

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De Koninck Sold To Duvel

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Not sure how I missed this, but late last week, Duvel Moortgat announced that they had acquired De Koninck. I learned about it from Stephen Beaumont, but the press release has all the details:

Duvel Moortgat nv has reached agreement on the acquisition of 100% of the shares of the Brouwerij De Koninck group. With this acquisition, Duvel Moortgat expands its portfolio of specialty beers; it also aims to reinvigorate the De Koninck beer brand.

Brouwerij De Koninck is located in the heart of Antwerp and has a unique bond with the city. The De Koninck “Bolleke” is most popular in Antwerp and the surrounding area as well as in the Netherlands, but it also enjoys strong brand recognition throughout Belgium. Brouwerij De Koninck started its activities in 1827 when Jozeph De Koninck bought a coach house on the border between Antwerp and Berchem, currently known as “Afspanning De Hand”. These premises were converted into a brewery in 1833. Since then, the image of a hand has been immortalized in the brewery’s logo. Over the years, the Van den Bogaert and Van Bauwel families succeeded in building De Koninck into a valuable brand with a solid local reputation.

Bernard Van den Bogaert states: “This acquisition is a logical step. Because of the small size of our brewery, we have experienced a lack of commercial strength and distribution channels. During the last couple of years, Duvel Moortgat has proven that it possesses the right experience. And the fact that the two breweries have maintained an excellent relationship for generations adds an extra dimension to this acquisition.” Brouwerij De Koninck experienced its greatest success during the nineties, achieving a yearly production level of 130,000 hectoliters. As a result of a shrinking beer market and a strong decline in the pale ale segment, today less than 50% of that volume remains. Duvel Moortgat is also acquiring significant real estate, mainly located in the Antwerp region. This comprises the brewery site, about seven other properties and 63 cafés, including Antwerp icons such as “Den Engel” at the Grote Markt and the “Boer van Tienen” at Mechels Plein. The acquisition also includes beer trader Brouwerij De Valk, based in Wijnegem. De Valk has grown to become a key supplier in the Antwerp region, delivering to hundreds of cafés and restaurants on a daily basis.

Michel Moortgat (CEO of Duvel Moortgat) states: “We are very pleased to be able to incorporate Brouwerij De Koninck into the Duvel Moortgat Group. The “Bolleke” is not only a strong brand but also a quality specialty beer that fits perfectly into Duvel Moortgat’s range (Duvel, Chouffe, Maredsous, Liefmans, Vedett, Bel Pils). Our international distribution, including our own branches in Belgium, the Netherlands, France, the UK and the USA, provides an ideal operating base to progressively develop De Koninck. It did not take us long to reach agreement: family values and traditions are concepts that both breweries feel strongly about.”

De-Koninck
The De Koninck brewery in Antwerp.

Session #42: A Special Place, A Special Beer

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Our 42nd Session is hosted by Derrick Peterman, from Ramblings of a Beer Runner. He’s chosen “A Special Place, A Special Beer” as his topic, which Derrick describes geographically, as follows:

The Session provides a unique opportunity to explore this connection between the beer in our glasses and the place it comes from with perspectives from all over the world.

So I ask for this 42nd Session that you write about a special place in your life, and a beer or brewery that connects you to that place. It can be the beer from your childhood home, a place you once lived, your current hometown, a memorable vacation you once took, or a place you’ve always wanted to go to but never had the chance. Please take a few moments to think about the how the beer connects you to this place, and share this with us. Of course, the definition of “place” is rather open ended, and in some cases, highly debatable, so it will be interesting to see the responses on what constitutes a place.

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This was actually a simpler question than I expected, once I stopped to think about it. For me, I believe the most special place to have a beer, any beer, is at the source. The place where it was created — the brewery — I always find is my favorite place to try their beer, especially for the first time. Plus, in certain places the brewery has beers available that can’t be found anywhere else.

A number of years ago, for example, I visited the Radeberger Brauerei just outside Dresden, Germany. Their pilsner is one of the best in the world, at least in my opinion. But even better is the unfiltered zwickel version that they have only at the brewery. To be fair, they also used to sell it at one bar in downtown Dresden but last I heard a flood had closed it.

I love drinking beer at home, at the bar, at the restaurant — okay, anywhere — but not quite as much as in the brewery itself. That’s hallowed ground, in a sense. I’m not really a “ticker,” so I have no idea how many breweries I’ve visited over the years but it’s certainly a fair number. And they’re almost always where I’ve had the most memorable experiences. I don’t know if it’s the setting — I do love the feeling of being in a brewery — or being with the brewer, or some other intangible, but I inevitably get the sense that that’s the beer’s home. And things just always taste better when they’re home.

Widmer’s Craft Brewers Alliance To Buy Kona Brewing

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The Oregonian is reporting that the Craft Brewers Alliance (essentially Widmer, with RedHook and distribution of Goose Island and Kona) will purchase Kona Brewing for $13.9 million. Under the terms of the agreement, Kona will become a “wholly owned subsidiary” and Mattson Davis will remain at the helm, with brewing for the mainland continuing to be done at Widmer and RedHook breweries.

Craft Beer Numbers Up Again Mid-Year

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Good news again this year for craft brewers. The Brewers Association has released the mid-year numbers and they’re positive again this year despite a rocky economy. Volume sales grew 9% over the same period last year and sales dollars are up 12% for the first six months of 2010 as compared to 2009. Last year those same stats were 5% and 9% respectively.

From the press release:

Craft breweries continue to grow despite many challenges, and currently provide an estimated 100,000 jobs and contribute significantly to the U.S. economy. Barrels sold by craft brewers for the first half of the year are an estimated 4.6 million, compared to 4.2 million barrels sold in the first half of 2009.

“While craft brewer sales volume climbed 9 percent in the first half of 2010, overall U.S. beer industry volume sales are down 2.7 percent so far,” noted Paul Gatza, director of the Brewers Association. “There is a movement by beer lovers to the innovative and flavorful beers created by America’s small and independent craft brewers. More people are starting to think of craft-brewed beer first when they buy in restaurants, bars and stores.”

The other great news is the number of new brewery openings, which continues to rise, too. 100 new breweries or brewpubs have opened over the last year. Picking up the press release again:

The U.S. now boasts 1,625 breweries—an increase of 100 additional breweries since July of 2009—and the highest number in 100 years. A century ago in 1910, consolidation and the run-up to Prohibition had reduced the number of breweries to 1,498.

“Entrepreneurs across the land are creating jobs by opening new microbreweries and brewpubs, and we are also seeing many homebrewing hobbyists going pro by starting what have been referred to as nanobreweries,” Gatza added. “Super tiny microbreweries or brew pubs, that make beer for a very localized network of taverns and stores, are starting to become a trend, primarily in the states that allow self-distribution as a means of getting beer to market.”

Mid Year Graph

EU Rules ABI Cannot Trademark Budweiser

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Reuters is reporting that the EU equivalent of Europe’s supreme court ruled today that Anheuser-Busch InBev (ABI) “may not register ‘Budweiser’ as a trademark in the bloc, ending a 14-year legal battle over the name with a Czech brewer.” The battle over the naming rights from the town in the Czech Republic has been raging for more than a hundred years and may now finally be over. ABI’s response, predictable from a multi-national company used to getting its own way, “said the ruling would have no effect on its business,” and continued to refer to the trademark as one they “continue to believe [is] rightfully [theirs].”

North American Breweries Close To Deal To Buy Magic Hat & Pyramid

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Beer News is reporting, via Harry Schuhmacher, that the Magic Hat/Pyramid Breweries is very close, possibly days away, from announcing that they’re being acquired by North American Breweries, the entity created to take over Labatt’s distribution in the wake of the Anheuser-Busch / InBev merger. NAB also owns the Genesee and Dundee beer brands. Check out the full story at BeerNews.org.
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Vinnie’s 40th Birthday Party

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This Sunday, Vinnie Cilurzo, founder and brewmaster at Russian River Brewing, turned forty. His wife Natalie pulled out all the stops and made it a two-day celebration, beginning with a barbecue at the production brewery.

Vinnie & Terrence Sullivan, from Sierra Nevada, filling barrels
We arrived a little early, and Vinnie and Terrence Sullivan, assistant brewer at Sierra Nevada Brewing was there with kegs of a beer that Vinnie brewed in Chico, and they were now filling into wine barrels to store in the barrel room for aging. The beer is for a special project for next year, and I can’t say more than that at this point.

My son Porter & Terrence's son Riley in Russian River's barrel room
We brought our kids along and happily so did Terrence and his wife. Their son Riley and Porter got along immediately and were thick as thieves playing in the barrel room and the rest of the brewery.

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We dropped the kids off at Grandma’s, put them to bed, and rejoined the party, which had moved to the brewpub, where we caught up again with Natalie and Vinnie.

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Natalie had a bunch of great cupcakes made, including several custom ones with a few logos you may recognize.

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The band playing was one of Vinnie’s favorites, The Famous, a San Francisco band. They even did a special song for the occasion, Pliny the Elder.

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Vinnie and me toward the end of the evening. The next day, we had brunch at Willie BIrds, near the brewery. After that, the party resumed back at the brewpub, but sadly without us. It was time to get the kids home.

Below is a slideshow of Vinnie’s 40t birthday party. This Flickr gallery is best viewed in full screen. To view it that way, after clicking on the arrow in the center to start the slideshow, click on the button on the bottom right with the four arrows pointing outward on it, to see the photos in glorious full screen. Once in full screen slideshow mode, click on “Show Info” to identify each photo.