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Victory & Southern Tier Announce Merger

February 16, 2016 By Jay Brooks

victory-new sign-plus southern-tier sign-equals abv
Victory Brewing, of Downington, Pennsylvania, and Southern Tier Brewing, of Lakewood, New York, announced today a merger between their two companies. Essentially, they’ve created a holding company called Artisanal Brewing Ventures (ABV) for both companies, and ABV will essentially own both breweries. Here’s how they characterize the newly created entity in their joint press release.

Artisanal Brewing Ventures is located in Charlotte, NC and was formed by Phin and Sara DeMink and Ulysses Management LLC; a New York based family office, with the vision of creating a home for like-minded, best-in-class craft breweries in close partnership with their founders. Ulysses Management was founded 20 years ago by Joshua Nash as the successor firm to the pioneering investment firm Odyssey Partners, LP. Ulysses invests in profitable, well-established companies with tangible, competitive advantages with the goal to build long-term value that benefits all stakeholders. To learn more about Ulysses Management please visit www.ulyssesmgmt.com.

ABV

Here’s more from the press release, which is on Southern Tier’s website:

Having just marked 20 years in the craft brewing industry, Victory Brewing Company (Victory) proudly announces a landmark alliance with Southern Tier Brewing Company (Southern Tier) under parent company Artisanal Brewing Ventures (ABV). As the first major transaction of 2016 within the rapidly evolving craft beer industry, this union presents a new model for craft beer partnerships by preserving brewery independence while pooling deep collective resources.

The new strategic framework between ABV, Victory and Southern Tier provides capital, security and vision for the future. ABV, formed to unify independent craft brewers and distillers, embraces the collaborative craft spirit while administering crucial growth resources. Arlington Capital Advisors acted as exclusive financial consultant to Victory. Wells Fargo’s Beverage Finance group provided capital to support the investment and continued growth at ABV. The transaction is expected to close within the next 60 days.

Under the umbrella of ABV, Victory and Southern Tier will independently operate their breweries, commanding a joint capacity of over 800,000 barrels of potential annual production. This alliance creates one of the largest brewers in the Northeast and ranks within the top 15 craft brewing companies in the United States according to Brewers Association criteria with combined 2015 shipments of over 250,000 barrels. With a world-class roster of complementary beer brands and an even stronger standing in the marketplace, ABV will shepherd Victory and Southern Tier in collaborative sales and marketing efforts to strengthen, support and expand its distributor and retail partnerships. Victory and Southern Tier brands will become increasingly available to loyal and new consumers across their combined markets as a direct result of this union.

“The craft beer community is at its most critical moment since its inception as larger brewing corporations have bought into our grassroots movement, irrevocably changing the marketplace. Like-minded brewers such as Victory and Southern Tier can preserve our character, culture and products by banding together,” said Bill Covaleski, Founder and Brewmaster of Victory Brewing Company. “Allied we can continue to innovate and best serve the audience who fueled our growth through their loyal thirst.”

“Having gotten to know Phin, John and the whole management team, I am more excited than ever about the innovations that lie in our collective futures. One walk through their brewery and I knew that Southern Tier had the same belief in quality and excellence that has driven our culture for 20 years,” explains Ron Barchet, COO of Victory Brewing Company.

The Victory and Southern Tier leadership teams and employees will remain intact. Bill Covaleski and Ron Barchet of Victory, who will become significant shareholders in ABV, will join the Artisanal Brewing Ventures’ Board of Directors. CEO John Coleman and CFO Bill Wild will lead ABV’s management team.

“This is exactly the kind of alliance we imagined when we created Artisanal Brewing Ventures in 2014,” said Phin DeMink, founder of Southern Tier Brewing Company and also a major shareholder in ABV. “This is a concept that was specifically designed by and for craft brewers, so we can focus on the things we’re best at while creating meaningful scale advantages. I’m proud to see this model validated and am grateful that my friends Ron and Bill have become our partners.”

“This is the ultimate craft beer collaboration. It is an honor to be associated with these pioneering entrepreneurs who have been contributing to the industry since craft’s early days,” said John Coleman, CEO of ABV. “I look forward to guiding these two truly great organizations forward as they collaborate, innovate and share best practices.”

“I believe this is a watershed transaction for the craft brewing world. This union of two great regional players preserves their independence and distinct cultures while sharing administrative and management functions to support deeper investment in sales, marketing and innovation,” commented Vann Russell, Managing Director and Founder of Arlington Capital.

This is something that has been in the works for many months. The trademark application for ABV was filed last year, in late August. That suggests that the deal would have been all but done if they’d progressed to the point of getting the new logo trademarked.

abv-crowns

Here’s more from the press release on the two companies.

About Victory Brewing Company

Victory Brewing Company is a craft brewery headquartered in Downingtown, PA. Founded by childhood friends, Bill Covaleski and Ron Barchet, Victory officially opened its doors in February of 1996. Victory’s second state of the art brewery opened in February of 2014 in Parkesburg, PA to serve fans of fully flavored beers in 37 states with innovative beers melding European ingredients and technology with American creativity. In addition to the original Downingtown brewpub, Victory’s second brewpub is in Kennett Square, while Parkesburg recently launched self-guided tours and the third brewpub.

Bill_Ron_2015(Social)
Bill Covaleski and Ron Barchet.

About Southern Tier Brewing Company

In 2002 Phin and Sara DeMink founded Southern Tier Brewing Company in Lakewood, New York with the vision of reviving the practice of small batch brewing to a region rich in brewing tradition. Following several expansions from 2009 through 2013 Southern Tier now ships over 100,000 barrels annually to 33 states to meet growing demand for Southern Tier’s diverse portfolio of innovative beers that embody the spirit of American craft brewing. In 2015 Southern Tier Distilling Company was formed to create innovative small batch spirits using unique local ingredients under a New York farm-distilling license.

STBC_phin_sara
Sara and Phin DeMink,

Filed Under: Breweries, News, Politics & Law Tagged With: Announcements, Business, New York, Pennsylvania, Press Release

Prohibitionists Pissed Over Deadpool Alcopops

February 12, 2016 By Jay Brooks

deadpool
I don’t really like malternatives, alcopops, malt-based beverages, or whatever you want to call them. I find them too sweet, the latest overly sweet concoction to take the wine cooler segment of the market. But the one thing I hate more than alcopops in prohibitionists telling me only kids like comic book characters and that if anything appeals to kids in any way, shape or form, then it must be stopped, even if adults happen to like that thing, too. Honestly, it’s a fucked up way to view the world.

It would be pretty hard to miss the news that the latest Marvel Comics film adaptation opens today, and it’s the antihero Deadpool. I just learned, from the sheriff of not-having-fun, Alcohol Justice, that Marvel’s done a collaboration with Mike’s Hard Lemonade and created several flavors with Deadpool on the cans and packaging. Deadpool, the character, has been around since 1991, and while he started out as a villain, he’s become more of a wise-cracking antihero, and as such appeals to young adults and, undoubtedly, precocious teens.

mikes

As a result, the cross-promotion has Alcohol Justice (AJ) screaming bloody murder, accusing everyone involved of actively “threatening” kids. Why? Because “comic books,” of course. If there are comic books, then anything to do with them is about the kids. As the sheriff of AJ claims, “Kids are inherently targeted, PR damage to the brands is substantial, and shareholders should scream for heads to roll.”

For that reason, he’s placing both companies in the “Alcohol Justice Doghouse.” Oh, the humanity! How will they survive their banishment? Here’s a taste of just how out of touch AJ is about this.

A superhero’s mission is to champion good over evil and stand-up for those who can’t defend themselves. Superheroes appeal to many young boys and girls who dream of being one. It’s often reflected in how kids act and dress. But those dreams come crashing down fast when Big Alcohol capitalizes on the popular cartoon imagery of the latest superhero to sell booze.

Obviously, AJ has never before encountered Deadpool. He’s about as much a role model superhero as I am, which is to say not at all. Those values AJ espouses have nothing to do with this film, the character or, frankly, reality. Superman he’s not. He’s not even Spiderman. But what it really comes down to is their unshakeable belief that comic books are only for children. To which I can only say, grow up. Maybe that was true in the beginning or possibly after the Comic Code was instituted insuring family-friendly fare. But it hasn’t been the case since independent comic stores starting popping up in the late 1970s and 80s, creating a market for non-code comics, allowing for a much richer range of stories aimed at all ages. And that’s meant that for several decades there has been sequential art aimed squarely at older kids and even adults. They used to be called “underground comics,” but these are in the mainstream now, and have been for a long time.

I read comics as a kid, of course, but then stopped when I reached my teen years, because in the 1970s there wasn’t much that appealed to me. Most of the comic books were pretty sanitized, with only a few notable exceptions daring to include real current issues and societal problems in their books. But all that changed again in the 1980s when a flurry of creativity created an amazingly mature and complex body of work that was aimed squarely at an older, more mature audience. Frank Miller’s The Dark Knight Returns, Alan Moore’s The Watchmen and V for Vendetta, or Neil Gaiman’s The Sandman, are good examples, to name just a few.

The point that seems lost on AJ is that there are comics that are for children, but there also comics for adults, and everyone in between. Just because something is drawn or animated, doesn’t automatically make it “inherently targeted” at kids. Try Art Spiegelman’s Maus, John Lewis’ March or Joe Sacco’s Palestine and see if you still think comics are only for children.

But here’s where they go off the rails again, where they just make shit up, and create their own reality.

“Though the alcohol industry claims ‘Millennials’ are their target alcopop audience, their promotions and campaigns effectively target youth who are years younger than the minimum legal drinking age,” said [Bruce Lee] Livingston. “As a result of the low prices, wide availability, and marketing tactics like this one by 21st Century Fox & Mike’s Harder Lemonade, alcopops are very popular among underage youth and responsible for a disproportionate share of underage alcohol-related harm.”

So the industry just “claims” they’re marketing to legal adults. Of course, if that weren’t the case they’d be breaking the law, not to mention they’d have an incredibly stupid business model. Don’t you think that if Alcohol Justice could prove actual targeting of underage people, that they’d have tried to put them out of business years ago? This is just propaganda and hyperbole, and not exactly the high moral kind that they so often pretend to be following, usually from atop their very tall horses.

But even if, for the sake of argument, Mike’s was breaking the law, hoping underage teenagers were loitering around their neighborhood convenience store, trying to entice the homeless man living in the alley to buy them some booze, that would not change the fact that kids under 18, and adults under 21, are not allowed to buy alcohol. This is in reality two problems. The first is that AJ believes alcohol companies are actively trying to illegally sell to minors. Given how illegal that is, if they could prove it, they would have by now. The second problem is that even though it’s illegal for minors to buy alcohol, they sometimes still manage to get their hands on it, and they blame the alcohol companies for creating the desire for them. But so what? Seriously, so what?

Before I was sixteen, I definitely wanted to drive a car. I even drove my stepfather’s Corvette around the block when I was 14 or 15. But I still knew I had to wait until I was sixteen before I could get a driver’s license and legally drive. But boy those car ads sure made driving look sexy, and made me want the hot new cars even before I could drive. Maybe we should ban all automobile advertising because it might appeal to kids who don’t have a driver’s license. But, no, we let car companies keep targeting our youth, causing teens to steal cars, go for joyrides and break the law. Obviously, the car advertising is causing the harm, because it appeals to children. Oh, sure, the car manufacturers “claim” that licensed drivers “are their target audience,” but we know better. Just watch how much fun it looks to drive their cars.

So I’m taking my son Porter to see Deadpool tonight, over his Mom’s objection. Not because of the alcopops, of course, but her concerns are because it looks really violent. But Porter loves what he’s seen of the dark humor that’s been shown in the various trailers, and I think he’s old enough. Of course, the film is Rated R, which given that he’s fourteen “requires [an] accompanying parent.” And that’s another reason it’s easy to see that the Deadpool Mike’s are marketing to young adults, 21 and over, since the rating further limits it being seen by minors looking to get buzzed on alcopops. But I’m old and still read comic books. AJ would do well to remember that there are a lot of us, and we drink, too.

deadpool-enjoys-beer

Filed Under: Editorial, Just For Fun, News, Politics & Law Tagged With: Comics, Film, Malternatives, Prohibitionists

Asahi Likely To Buy Grolsch, Meantime & Peroni

February 10, 2016 By Jay Brooks

asahi grolsch meantime peroni
Anhesuer-Busch InBev has been trying to sell off their Grolsch, Meantime and Peroni, since acquiring SABMiller last year. ABI confirmed this morning that they’ve received a binding offer to purchase the three beer brands from Japan’s Asahi Breweries. According to Just Drinks, “Asahi has been granted a ‘period of exclusivity’ related to the purchase, which, AB InBev flagged, is ‘conditional on the successful closing of the recommended acquisition of SABMiller by AB InBev.'” The amount offered by Asahi is 2.55 billion euros (around $2.86 billion in U.S. dollars) and which, if accepted, would go a long way toward addressing regulatory concerns about the acquisition of SABMiller by ABI. Reuters also has more about the particulars.

DSCN3085
The Asahi Breweries headquarters in Tokyo, from a trip I took there to judge a beer competition in 2013.

Filed Under: Breweries, News, Politics & Law Tagged With: Anheuser-Busch InBev, Business

Bistro Double IPA Winners 2016

February 6, 2016 By Jay Brooks

bistro
Today the the 16th annual Double IPA Festival was held at the Bistro in Hayward, California. Unfortunately, I was unable to attend this year owing to my daughter having a vaulting competition today. But owner Vic Kralj was kind enough to send me a list of this year’s winners. The full list is below. Apparently in this year’s judging, it was very close, so they decided to announce 4th place for both double and triple IPA.

Double IPAs

  • 1st Place: Long Swim, Kern River Brewing
  • 2nd Place: Hop Juju, Fathead’s
  • 3rd Place: Hella Hoppy, Altamont Beer Works
  • 4th Place: Knotty DIPA, Three Weavers Brewing

Triple IPAs

  • 1st Place: Power Plant, El Segundo Brewing
  • 2nd Place: Muriqui Imperial IPA, Monkey Paw Brewing
  • 3rd Place: Hop Nookie, Kern River Brewing
  • 4th Place: ZZ Hop, Auburn Alehouse

Congratulations to all the winners.

DSCN3382
Steve Sartori from Altamont Beer Works with The Bistro’s Vic Kralj accepting his 2nd place for his Triple IPA last year, though they won again this year, a bronze for their double.

Filed Under: Beers, Events, News Tagged With: Awards, Bay Area, California

U. Penn Students Win Prize For 9 Times Faster Brewing Process

February 3, 2016 By Jay Brooks

u-penn
I tend to be skeptical of anyone who claims to be able to shorten the brewing process, especially by up to nine times, since brewing is a pretty time-honored process, improved little by little over the centuries. And generally speaking, speeding up fermentation has rarely resulted in better beer. Of course, there was that flourish of decades beginning with the industrial revolution that speeded up that process considerably, but since then things have slowed down to a more manageable pace. But that’s exactly what got the winners of this year’s Y-Prize, from the University of Pennsylvania, the grand prize $10,000, “for developing a process that speeds up the fermentation process in beer production by up to nine times — while maintaining alcohol quality and composition.”

The three winners, Alexander David, Shashwata Narain and Siddharth Shah, are students in the Wharton School and the School of Engineering and Applied Science. They’ll received “$10,000 and the rights to commercialize the technology through their company,” which they’ve named “Fermento.”

Y-Prize-2016-Winners-Fermento
The Fermento Team: Alexander David, Shashwata Narain and Siddharth Shah

From UPenn:

The Fermento team selected microfluidic fabrication technology developed by Assistant Professor of Bioengineering David Issadore as the basis of their application.

The alcohol in beer is the product of yeast, which metabolically converts sugar found in barley and other grains into ethanol. This fermentation process typically occur in large batch reactors, where a concoction of boiled and strained grain liquid, known as wort, is left mixed with a carefully controlled amount of yeast.

This stage is one of the major bottlenecks of beer production. It can take up to three weeks, as maintaining the correct amount of yeast is a delicate balance.

“There is only a certain amount of yeast cells one can directly add to a batch reactor,” Narain says, “because overpopulation causes physiological stress on the yeast cells, which in turn reduces reaction rate. It takes time for yeast cells to grow and reach a critical mass to produce enough beer. Moreover, the concentration of sugar available to yeast cells is limited because in a large batch solutions, yeast cells don’t consistently interact with sugar molecules.”

Capable of delivering precisely controlled amounts of liquids to exact locations in a conveyer-belt fashion, microfluidics present a possible solution to both of these challenges. Yeast and wort can be introduced to one another in microdroplets, providing the optimal ratio for fermentation each time.

“Microdroplets to speed up fermentation have been tried in labs, but none of the technologies so far are scalable,” Narain says. “This patented technology actually makes the process industrially scalable for the first time, and in a financially feasible manner.”

So who knows. According to another report, “[t]heir advisors include executives from some of the biggest brewers in the world: MillerCoors, Anheuser-Busch InBev, Biocon India and Heineken. And say what you will about them, but those beer companies employ brewers who know how to make beer. So there may be something to it. It will be interesting to see what becomes of the idea.

Filed Under: Beers, Breweries, Just For Fun, News, Related Pleasures Tagged With: Awards, Pennsylvania, Science, Science of Brewing

Brewhog Determines An Early Spring Bock For 2016

February 2, 2016 By Jay Brooks

groundhog-day
Over in Gobbler’s Knob, in Punxsutawney, Pennsylvania, Phil the Groundhog — a.k.a. the Brewhog — raised up his head this morning and looked around, and this year did not see his shadow. You know what that means? It means an early spring, and earlier spring bock for us. You can see a video of Punxsutawney Phil here. And there’s more information about Groundhog Day from the Punxsutawney Groundhog Club.

groundhog-field-beer

And surprisingly enough, Phil wasn’t the only one. There’s also Shubenacadie Sam in Canada, who likewise did not see his shadow. And in New York there’s Staten Island Chuck along with General Beau Lee in Georgia, both of whom also predicted an early spring. Fingers crossed. And if you don’t have time to watch all of the deliciously wonderful Groundhog Day film today, here it is in a slightly shorter version just over three minutes.

Filed Under: Just For Fun, News, Related Pleasures Tagged With: Holidays, Pennsylvania

Announcing Next Typology Tuesday: Bock

February 1, 2016 By Jay Brooks

typology
Last month I kicked off Typology Tuesday with American Barleywine. This month, if you want to play along, we’ll be talking about Bock, specifically traditional German bock. Always the last Tuesday of the month, February’s Typology Tuesday will take place on February 23.

So on or before February 23, write a post on Bock. You can essentially write about whatever you like, with the only proviso being it should have something to do with the featured type of beer. After your post is published, please let me know it’s up so I can include it in the subsequent round-up. You can send me the URL to your post either by leaving a comment here, or even by including the hashtag #Typology in a tweet. I’ll be bock.

Schaefer-Bock

Filed Under: Beers, Just For Fun, News, Typology Tagged With: Announcements, Beer Styles

Pyramid Closes Walnut Creek Location

January 12, 2016 By Jay Brooks

pyramid-breweries
Rumor has it that Pyramid Breweries has closed the last remaining vestige of their foray into California. After closing the Sacramento brewpub a couple of years ago, and the Berkeley brewpub last year, apparently the staff of the Walnut Creek Alehouse learned Sunday that it would be their last day. Yesterday, apparently, the alehouse was locked up and closed up for good.

The website for the Walnut Creek Alehouse simply states the following:

The Pyramid Alehouse in Walnut Creek is now closed.
Thank you so much for your patronage over the years. We also thank our employees for their dedicated service.

pyramid-walnut-creek-closed

Filed Under: Breweries, News Tagged With: Business, California, Northern California, Rumors

You Think We Have A Lot Of Breweries?

January 9, 2016 By Jay Brooks

europe
There’s been a fair amount of talk lately about the number of U.S. breweries hitting a milestone number, and that there are now more breweries in America that at anytime in our history. And that’s great and all, but as Jeff Alworth recently suggested, we should Quit Counting Breweries. And although he meant as the only way to measure growth and improvement in the state of beer, it’s a fair point, although it does, I believe, offer some idea of the bigger picture. Plus, I think we’re all just a little bit fascinated with numbers — things we can quantify — so I doubt anyone will ditch the metric of number of breweries anytime soon.

But if you think we have a lot of breweries, Europe is even more on fire. Sure, they had a head start, and didn’t have that pesky prohibition to slow them down (except in a few places). And while they may have been slower to the movement, or whatever it should be called, of new, usually smaller, breweries opening it’s well and truly now a global phenomenon. As of 2015, according to The Brewers of Europe Beer Statistics, there are over 7,000 breweries in Europe.

The comparison to the U.S. number is helped along by the fact that they’re pretty close in area: 3.931 million square miles for Europe and the U.S. with 3.806 million square miles. Though in terms of people, Europe has more than twice the population of America, 742.5 million vs. 318.9 million in the U.S. But here’s the number of breweries in Europe, broken down by country.

Number of Active Breweries (2009-2014)

Number_of_breweries_in_Europe_2009_2014-color

Most of the countries have seen big growth, although a few are close to static, meaning they either stayed exactly the same or have shown only modest growth. Very few have dropped below their 2009 number. Really, it’s only Turkey although Poland was rising steadily, only to dip a little in 2014 over 2013.

Last week, Ron Pattinson at Shut Up About Barclay Perkins looked at this data (h/t to him for bringing it to my attention) and noticed a few other patterns.

The one exception? Germany. The number of breweries hasn’t changed significantly in the last few years. Which has left it lagging far behind. For the first time since the 19th century, it doesn’t have the most breweries in Europe. The UK caught up in 2012 and has since powered ahead. If you’d told me 10 years ago that there would be over 1,500 breweries in the UK, I’d have felt your bumps.

The effect has been to drastically reduce Germany’s share of the breweries in Europe. From over a third in 2009 it fell to less than a quarter in 2014. While the UK’s share has risen for just under 20% to almost 25%.

Paricularly striking is the growth in countries that aren’t traditionally beer drinking. In Italy, France and Greece the number of breweries doubled. While in Portugal the increase is fivefold. In Spain almost sevenfold.

Earlier today, Ron posted a new analysis that he put together, assembling another table that showed the changes in the number of European breweries by nation from 1956-2014. He used a dozen sources, plus his own, to compile it. Here’s what he found:

Only four countries had fewer breweries in 2014 than in 1956: Belgium, Denmark, Germany and Luxemburg. For Denmark it’s a tiny difference – just five breweries – and Luxemburg is an odd case, being so small. Which leaves just Belgium and Germany, both of which have about a third of the breweries they did 60 years ago. I have to admit, it makes the situation in Germany look much worse than the 2009 to 2014 figures.

And here’s that list:

Number_of_breweries_in_Europe_1956_2014

I can’t help but come back to the population vs. brewery number ratio. It’s seems that per capita may have to more to do with how many breweries can be supported by a population after all. I’m sure it’s more complicated, of course, with history, culture and other factors playing a role, as well. Looking at the ratios, there’s a European brewery for every 104,710 people whereas in the U.S. there’s a brewery for every 77,171 people. So currently, we’re slightly more concentrated in these terms. Who’s got numbers on the rest of the world?

Filed Under: Breweries, Just For Fun, News, Related Pleasures Tagged With: Europe, Statistics

Jesse Houck Moving To Maui Brewing

January 7, 2016 By Jay Brooks

maui
Maui Brewing has announced that their new Director of Brewery Operations will be Jesse Houck. Houck was most recently at Golden Road Brewing in Los Angeles, and prior to that was in the Bay Area with both Drake’s Brewing and 21st Amendment.

From the press release:

“I am beyond stoked to be working with such a strong leader as Garrett and the talented team he has assembled here on Maui,” stated Jesse Houck.

“I’ve known Jesse for most of my career in craft beer and have always been impressed with his brewing talent, and proud to call him a friend. I’m stoked to have him at the helm of our brewing operations and we’re looking forward to some awesome projects coming down the pipe,” added Founder and CEO Garrett Marrero.

I recently visited the new facility that Maui Brewing built and turned loose in that brewhouse, Jesse’s going to do great things. It also really makes me want to go back to Maui again, not that I needed much incentive. It’s an amazing space that Garrett and Melanie Marrero built closer to the center of the island, and not too far from the airport. With two new planned restaurants in their future, adding Jesse was a prudent move. Congratulations to both.

P1050492
Jesse (right) with Shaun O’Sullivan at the Toronado Barleywine Festival in 2008.

Filed Under: Breweries, News Tagged With: Business, Hawaii

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