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Jay R. Brooks on Beer

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Wild Hop Lager: A Wolf in Sheep’s Clothing

March 23, 2006 By Jay Brooks

I’m walking through my local independent grocery store this afternoon, trying to get everything on my list when I realize I’m in the beer aisle. Old habits die hard, so I survey what’s there and notice a beer I’ve not heard of before: Wild Hop Lager. I pick up the six-pack carrier and pull out a bottle. Green Valley Brewing Company? Ever heard of them? Me neither. Now I’m only human but it’s not often that I’m stumped. I don’t usually run into completely new breweries I’ve never heard of. So I take a closer look at the packaging and read everything on the label. It’s supposedly organic certified by the UDSA? But in the back of my head I’m thinking it was a different organization that certified organic status. Didn’t I read that somewhere in connection with Wolaver’s a few years ago? The packaging looks good, almost too good. It’s slick and well done and even uses printed crowns, unusual for a start-up brewery. I’m becoming suspicious, I can’t even say why at this point. There’s a web address on the carrier, but there’s no brewery information on the label. No address, apart from Fairfield, California. Uh-oh. I pull a bottle out of the carrier again and examine it more closely. Only one more clue, but it’s a compelling one. There at the bottom of the bottom, on the left hand side, is a freshness date. That’s also a curious thing for a new brewery to have on their label. I feel like Sherlock Holmes and things aren’t adding up. But I’ve got a hunch, and it’s a pretty good one, too, I think, as I head home to check it out.

When I get home, I type in the website URL and wait for it to load, which doesn’t take too long. It has an age verification check, and it’s feeding my hunch, too. How many small breweries have those? The webpage itself is only one page, with no clickable links anywhere, just a message “Check back soon for more on Wild Hop Lager.”

The entire website consists of a picture of the bottle and the following text:

Let the Good Times Grow

Wild Hop Lager is made with 100% organic barley malt, giving this certified USDA Organic brew a hearty taste that is rich and flavorful. Plus, with every purchase of Wild Hop Lager, a donation will be made to the Organic Farming Research Foundation to improve and educate people on organic farming practices. Together we can set a better example for future generations.

Organic … and they donate to charity. This is getting better and better. So I do a whois search to find out who is the owner of the domain name and — I’m almost giddy when I see it — I’m right. It belongs to Anheuser-Busch of St. Louis, Missouri. I dig a little further and discover the Maltlog on the website for the Missouri Division of Alcohol and Tobacco Control. On February 6, 2006, A-B applied to register “Wild Hop Lager” and “Harbin Lager” and both were granted on February 10. Ohio similarly approved the name on February 14 of this year.

Now this isn’t the first time Anheuser-Busch has tried to make a microbrew. Anybody remember Pacific Ridge Pale Ale? As far as I know, they’re still making kegs of it at the Fairfield plant and selling it to restaurants and bars as their own private label craft beer. But there’s one distinct difference between Wild Hop Lager and Pacific Ridge. On all the Pacific Ridge packaging, it was clearly disclosed that it was an Anheuser-Busch package. With Wild Hop Lager, no such disclosure is made. In fact, it appears downright designed to appear to be a real craft brewed beer, not that that’s new either. There never was a Plank Road Brewery (it was Miller) or a Blue Moon Brewery (that one was Coors), either.

This is just the latest attempt to regain flagging sales. With good growth in the craft beer segment, it’s hardly surprising that they’d try to make their own craft beer-like product. It’s their modus operandi, after all, to infiltrate any segement of the market they can and either dominate it or shut it down. That this was so clandestine is a little surprising and most consumers, I fear, won’t realize they’re being duped. I’m perfectly okay with Anheuser-Busch making a better beer, but I’d be a lot more comfortable with it if they didn’t go about it in such a way that seems so underhanded and deceitful.

Anheuser-Busch’s new macro-micro on the shelves of my local grocer.

UPDATE: Several people on various forums have commented that they would have liked to see tasting notes for the beer here. While I was unwilling to part with the $8 necessary to provide tasting notes, the San Francisco Chronicle did a blind tasting of the beer as a part of their coverage of this story on March 30.

Filed Under: Beers, Editorial, News Tagged With: Business, California, Northern California, Organic

Miller Beer: Follow the Leader

March 23, 2006 By Jay Brooks

Miller Brewing Co., now officially SABMiller since being acquired by South African Breweries, is used to living in the shadows. They’ve been the number two brewery in the U.S. for as long as most of us can remember. Today a Business Day story reports they’ve acquired their second overseas brewery in recent weeks. Slovakian brewery Topvar is the latest one. The other was Peruvian brewery Backus, most famous for Cristal Beer. Including the Miller beers, SABMiller currently owns approximately 150 beer brands worldwide. These include Carling Black Label, Castle Lager, Henry Weinhard, Leinenkugel, Peroni and Pilsner Urquell though most are line extensions or very small breweries.

But as is typical for the Avis of the brewing world, they’re taking the same steps as Anheuser-Busch and shoring up their import portfolio. Though with the notable exception of Pilsner Urquell, their brands are somewhat second-rate. I don’t wish to denegrate the quality of some of the beers in their portfolio, although that could be done easily in a few cases, but rather to suggest a lack of market leaders or brands that not are well-known, especially to Americans.

It wouldn’t surprise me a bit if we hear Molson Coors has gobbled up another imported beer shortly. They big three seem to act with one brain much of the time, especially when it comes to business decisions. You get the sense they all look to A-B to see what they’re doing and then react accordingly: either by doing the same or, every once in a blue moon, choosing a different path. It seems strange, but you watch this long enough and you get the sense it’s one elaborate game of follow the leader. Unfortunately, the game also appears rigged.

Filed Under: News Tagged With: Business, Europe

Underage Drinking: The Albatross of the Industry

March 15, 2006 By Jay Brooks

I got a press release today that got me thinking from the National Beer Wholesalers Association (NBWA), a trade group that sometimes represents the same interests as the brewers and sometimes not. The NBWA, of course, represents the interests of the middle man, the beer distributor. A great distributor can do wonderful things for better beer if they care about what they’re selling. There are many instances where this has happened and many regions of the country with a vibrant beer culture owe much to the work of the beer distributors.

On the other hand, there are equally many, if not more, who care only about making a buck or selling only their major brand. Several years ago Anheuser-Busch — why is it always these guys? — instituted a program they called “share of mind” to get their beer distributors to sell only A-B beer and little or nothing else. This was good for them but terrible news for the hundreds of small breweries who also depend on distributors for the distribution of the beer. In many states, the distributor model is institutionalized in ways which leave the brewer no choice but a third-party beer distributor to sell their beers. Most of these laws were set up after prohibition and in many cases the laws themselves were written by big brewery lawyers. So it’s no surprise that most of the alcohol laws in this country favor them: they were after all designed that way. The idea was that it would do away with the violence and fighting that marked the prohibition period and also it would somehow benefit the consumer. How giving territorial monopolies to a business would benefit consumers is a bit of logic that has always been lost to me but that was the rationale, believe it or not. Here in California, for example, one of the ways it was supposed to level the playing field was by forcing the same pricing on all retailers so that larger retailers could not benefit from buying in bulk. Many devious ways have been created to get around these, of course, many of them even almost legal, but I’ll leave that for the moment. Suffice it to say that not all beer distributors are good for the beer community.

Today’s press release concerns a letter from the NBWA to the Surgeon General in response to a request from him regarding the issue of preventing underage drinking. Now the first, and to me most obvious, problem with that is that I don’t understand how underage drinking is a health problem? It’s not like smoking and getting lung cancer. There aren’t teens dying of liver failure, are there? (I know hazing has had its share of drinking related fatalaties but blaming the beer in those cases is like blaming the knife in a stabbing death). My point is that the age of consent for drinking is a policy decision. It was an arbitrary decision to determine at what age a person could legally drink. And the fact that a person can enter the military and die for his or her country but not have a beer is a travesty of the first order. We should at a minimum be willing to give all the rights and privileges of adulthood to anyone willing to lay down his life for us. That we don’t says something profound about our society’s priorities, which in my opinion are screwed up beyond redemption. I remember my three years of military service. We had a soda machine in our day room that dispensed canned beer. But the second we walked off the base, we were treated as children once more, and it was more than a little infuriating.

But I’m at a loss to think of what actual health problems are associated with drinking alcohol at twenty-one versus eighteen years of age. All the usual problems discussed concerning underage drinking are about rebellion, breaking laws and the like. They’re not health issues. So the fact that the Surgeon General is asking the NBWA for advice on underage drinking strikes me as very odd. If the NRA received a similar letter asking their advice about the problem of school shootings, the 2nd Amendment lobby would be up in arms — no pun intended — in protest. But in our puritanical society, fun always takes it on the chin. Anything people are enjoying must be curbed, and usually that’s done through some manufactured concern for the children. There are actually plenty of good arguments why the drinking age should be lowered, but I won’t go into them here. If you want to read more about that debate, here are some good links. [ NYRA / Alcohol Solutions / ASFAR / Both Sides ]

But okay, let’s set aside the ridiculousness of the request and take a look at the NBWA’s response. Here’s the bulk of their letter to the Surgeon General:

On behalf of the 1,800 members of the National Beer Wholesalers Association, I am heartened by the Surgeon General’s request for comments on the very serious issue of underage alcohol consumption.

Beer distributors, as family-owned local businesses, work diligently in their communities to promote moderate consumption and prevent underage drinking. Through, among other things, sponsoring public service announcements, working with law enforcement and school officials, distributing materials to help parents talk to their kids about alcohol consumption and providing retailers with training, signage and age-verification materials, beer distributors devote significant resources to the fight against underage drinking.

While these are worthwhile efforts that have helped to reduce and control the problem of underage drinking, the states’ ability to effectively restrict the sale and distribution of alcohol is the key to keeping beverage alcohol out of the hands of our youth.

Effective state regulation is under increasing attack as various economic interests attempt to deregulate alcohol and otherwise weaken the states’ abilities to strictly control alcohol sales. As a result, some states have been forced to open their borders to Internet sales of all alcohol beverages. Such anonymous access presents a major challenge to the states’ fight against underage drinking, as consumers receive deliveries from out-of-state sellers who can not be effectively regulated by the state.

Indeed, in a study released last year, the National Academy of Sciences estimated that 10 percent of all minors have actually obtained alcohol over the Internet. In addition, numerous states have conducted “stings” to determine if kids are able to acquire alcohol online without being required to show photo identification or provide a signature. Time and again those stings unveiled the frightening ease with which a child of any age can easily obtain alcohol – most often, the brown, nondescript packages were simply left at the front door.

The 21st Amendment gives states the explicit authority to regulate alcohol within their borders. This amendment was designed to ensure states have the flexibility to regulate socially sensitive products accordingly to local norms and standards in order to promote responsible and moderate consumption and discourage abuse.

Special interests’ attempts to circumvent state requirements of regulated transactions occurring in licensed retail outlets are eroding a critical system of alcohol beverage control and putting state regulations at risk.

Beer distributors understand that the products they provide, while enjoyed by 90 million American adults, can cause devastating consequences if abused – especially by those under the legal drinking age. We are concerned that economic interests are slowly chipping away at state alcohol controls and the states’ ability to effectively regulate. This could result in long-term damage to the fight against underage drinking and abuse.

For these reasons, we respectfully request that unregulated alcohol sales and attempts to weaken state alcohol control be a central focus of the Surgeon General’s Call to Action regarding underage drinking issues. The states’ authority to regulate alcohol beverages must be reinforced.

In their response, they begin by going through the litany of various things they currently do to stop underage drinking. These typically involve signs, PSAa and talking to schools and educators. Yawn. If any of those really worked, this would have gone away by now. Anyway, most of what they give to retailers and schools were created by the breweries, not by them. I’m pretty sure the beer distributors have to take those steps either by law or for PR purposes. I don’t believe they’d do them if they weren’t required to in some way.

To be fair to them, I don’t even see why it’s their job at all. They sell beer to retailers who in turn sell it to the public. Wouldn’t it make more sense for the burden to be shifted to the retailer, who is actually the one selling it to minors? I know many retailers are also bound to follow strict selling guidelines to insure only adults buy certain products but it’s still usually the big breweries who produce the ad campaigns for them. That it’s the beer industry that preaches responsible drinking when it clearly runs contrary to the pursuit of profit has always seemed strange to me. But it’s largely because of the neo-prohibitionists who want to criminalize anything enjoyable that might be abused. Breweries can’t be seen as encouraging their customers to have more and more of their products because that would somehow mean encouraging abuse and would in turn give too much ammunition to an ever-vigilant minority who doesn’t want me to be able to have a beer after a long, hard day. These people bear watching, they’re dangerous. I see the whole responsible drinking public service campaigns as being the albatross of the industry, holding it down so it’s unable to fly. We should be able to celebrate wonderful beer and the joys of drinking openly without having to worry that if someone goes too far it can ruin things for everybody.

But then the letter turns interesting. The NBWA goes after interstate internet sales of alcohol as the real bogeyman. This is just hilarious. Forget for a second that telling the Surgeon General this is like telling your dentist about the pain in your foot, and look at their agenda. Internet sales are bad because they give kids access to alcohol. It couldn’t possibly be that what they call being “under increasing attack as various economic interests attempt to deregulate alcohol and otherwise weaken the states’ abilities to strictly control alcohol sales” is actually an economic threat to them? Of course it is. They’re pissed off about losing their own monopolies so they decided to make it an issue of underage drinking. This is so reprehensible that I’m almost speechless. Almost. I’ve had disagreements with the NBWA before and I’m sure I will again. Their ultimate interests are different than mine and that’s okay. But this one is just too out there and somebody has to call “bullshit” on them.

Opening up the states to internet shipping of alcohol made it possible for people to get beer from places where it wasn’t practical for it to be sold through regular channels. In many cases, the local beer distributors (NBWA members no doubt) refused to carry products they deemed would not be popular enough to justify the warehouse space for them. This is great news for consumers and for small breweries with niche market demand. It cut out the middle man — the beer distributors — and made it possible for brewers and the people who wanted their beer to get together one on one. You can see why that’s bad for the middle man. He’s left pretty much nowhere with a refrigerated warehouse full of Bud Dry nobody wants to drink. So let’s play the “it’s about the kids” card, but I’m not buying it and neither should you.

They claim that an NSA study showed “10 percent of all minors have actually obtained alcohol over the Internet.” So let’s look at those numbers. According to the 2000 Census data, there were 281,421,906 people in the total population and 196,899,193 who were 21 years of age or older (which is 70%). That leaves a minor population of 84,522,713. Ten percent of that is 8,452,271 minors who have bought alcohol over the internet. Does that figure seem reasonable to anyone? Then let’s also review what’s involved in “obtaining” alcohol over the internet. You’d need internet access, a credit card and a mailing address that matched the credit card (although I suppose you could claim it was a gift and were shipping it elsewhere). So you figure you’ve got to cut out all kids under a certain age, say nine and under, which is just under 4 million kids. Does every household have internet access. Not yet. Then there’s stealing (borrowing) a credit card or perhaps you may actually have your own if you’re college age or have rich parents. Then there’s where to have it shipped, not to mention the amount to be added to cover shipping (and even light beer is heavy when it comes to shipping). You’d have to choose a house where parents wouldn’t be home during delivery times and shipping alcohol requires an adult to sign for it, too, so you’ve got to figure a way around that problem, as well. So yes, a resourceful, motivated teenager could get it done, but it wouldn’t be all that easy and I find it very hard to believe eight and a half million kids pulled it off. Especially when the time-honored tradition of asking an older brother or uncle to buy beer for you is still the bet bet going, and is so much faster and cheaper and less risky that the idea of using the internet in this way becomes laughable.

In the end, using states’ rights to fight even an imagined health problem — it’s not a health problem but that is still implicit from its source — is prima facie ridiculous. In fact, the entire chain of logic in this whole debate seems surreal to me. First, the Surgeon General of the United States, the top “doc” in the country, asks for advice about what is not even a health problem but a societal one to an organization with no ties to health or, in fact, the problem. After all, beer distributors are middle men: they don’t make the beer and they don’t sell it to the public. Then these middle men respond by saying the way to protect our kids from the evils of underage drinking is to return states’ rights to them and allow them to keep their monopolies and not allow you and me to buy Rodenbach Grand Cru from New York State (since I can’t get it in California — there’s no distributor here) because there’s a small chance the kid who lives down the block might try to order beer over the internet for his next party. I confess I’m really quite tired of giving up my rights as an adult so that children will be protected. Not only does it not ever work, but we should not be willing to create a society that’s fit only for kids on the off chance that a child will have access to something we’ve decided he shouldn’t see, or hear or taste. There’s already a mechanism in place to combat those problems and it’s worked pretty well for millennia — it’s called parenting. I’m an adult. I want to live in an adult world. I don’t want anybody telling me or my child what’s good and what’s bad for him. That’s my job. And now what I really want is a bottle of Rodenbach Grand Cru. Please, for the love everything good, somebody send me a bottle before it’s too late.

Filed Under: Editorial, News Tagged With: Business, Health & Beer, Press Release

Propaganda Works: A-B Stocks Upgraded

March 14, 2006 By Jay Brooks

In an AP Story today, at least two market analysts upgraded the stock of Anheuser-Busch (BUD) from “Hold” to “Buy.” One analyst citied as his reason that “[e]arly 2006 volume momentum is encouraging and price increases are holding.” The other was “encouraged by recent brand acquisitions and positive volume trends,” specifically stating that A-B’s “sustained push into the U.S. high-end with Grolsch, Harbin and Tiger are small but positive steps.”

I’d laugh if it weren’t so damned sad and predictable. Both of these analysts seized upon information that Anheuser-Busch itself released as part of its thinly veiled propaganda campaign to get the share price up, none of which do anything to really address the trends that people are drinking less of their beer.

From the AP Story:

Shares of Anheuser-Busch Cos. inched up Tuesday after a long slump as two analysts upgraded America’s biggest brewer, one calling the sentiment on the company too negative.

“After 18 months of share price decline, industry volume slump, and price warfare, the sentiment on BUD now appears overly pessimistic relative to a moderated growth outlook,” wrote Deutsche Bank analyst Marc Greenberg in a client note, upgrading the company to “Buy” from “Hold.”

The analyst added he sees a better tone in the market than a year ago this time.

“Early 2006 volume momentum is encouraging and price increases are holding,” he wrote. “Investor sentiment, however, remains fairly cynical, both qualitatively and quantitatively.”

Bear Stearns analyst Carlos Laboy also upgraded the St. Louis, Mo., brewer, saying in a client note he was “encouraged by recent brand acquisitions and positive volume trends.”

The U.S. beer category, which has seen lackluster sales as of late, is rallying, he said, adding “we believe this industry rally will benefit A-B directly.”

Laboy, who upgraded the company to “Peer Perform” from “Underperform,” said the brewer’s move into Russia and its “sustained push into the U.S. high-end with Grolsch, Harbin and Tiger are small but positive steps.”

The second analyst also claims that the “U.S. beer category” (by which he undoubtedly means only the big three players) is “rallying.” Of course, he offers no evidence of any rally, just that he believes it. Now I know our markets are only as strong as our belief in them and that if everybody lost faith in our monetary system or our economic system as a whole then it would, in fact, collapse. But this is just such a blatant case of wishful thinking trying to become a self-fulfilling prophecy that all I can do is shake my head wistfully. First there’s a rally that doesn’t exist and that rally is the basis of optimism that will turn around a huge coporation’s business woes. It’s hard to believe people really do have any faith in this system yet this was reported without any tongues near a cheek (not counting mine).

The more I follow this, the more and more desperate it all appears. With each new step taken, the Emperor’s clothes are looking increasingly threadbare. I really hope the craft brew industry can seize upon what is looking like a marvelous opportunity to build some momentum that actually has a chance of reaching that magical tipping point. Every small brewery whose business is posting terrific gains should be hounding their local press to have their story told. All the local newspapers and television news shows should be actively looking for positive business stories to persuade their audience that the economy is doing fine, despite all evidence to the contrary. Let’s give it to them. If you’re a craft brewer who’s doing well, start crowing.

Filed Under: Editorial, News Tagged With: Business

Boston Beer to Build Brewery?

March 14, 2006 By Jay Brooks

Boston Beer Co., the makers of Samuel Adams beer, bought a brewery about ten years ago. It was a somewhat well-known one, the Hudepohl-Schoenling Brewery in Cincinnati, Ohio. They were a large regional player probably most famous for their Little Kings brand and the Christian Moerlein line. Like many breweries in the past two or so decades they also kept themselves afloat by doing contract work, most notably for Whitbread and Sam Adams. Then in 1997 Jim Koch, perhaps having grown tired of constantly being criticized for being a “just a contract” brewer and not owning a one, purchased it. After recently investing heavily in upgrades, the company expects to brew roughly two-thirds of Sam Adams beer there. ProBrewer reported today that they’re now considering building yet another brewery, this time from scratch with the ultimate goal of brewing all their own beer themselves.

From the ProBrewer report:

Boston Beer said in the report that it’s evaluating its long-term production strategy and could decide to make all of its own beer. Until it bought the Hudepohl-Schoenling brewery 10 years ago, almost all of its beer had been made under contract since the company’s founding in 1984.

Back then, there was idle brewing capacity in the industry from smaller regional breweries. In recent years, many of those regional breweries that had excess capacity have seen increased sales due to the popularity of the craft beer segment, and there’s less capacity available for contract brewing.

If Boston Beer decides to make all of its own beer and build a new brewery, it would likely require an investment of $70 million to $90 million and yield improved operating and freight costs, it said. Company officials told analysts during a conference call this week that the evaluation of its production strategy was ongoing and that they hadn’t developed full economic estimates yet.

CEO Martin Roper said freight costs, beer freshness, and quality control as some of the factors that they’re looking at.

Filed Under: News Tagged With: Business, Eastern States

Anheuser-Busch Picks Up Another Import

March 13, 2006 By Jay Brooks

Anheuser-Busch announced today that they would be extending their portfolio of imports to include Singapore’s Tiger Beer, a product of Asia Pacific Breweries. This is the scond such announcement in less than a month, when in late February A-B also announced distribution of the Dutch beer Grolsch.

From the press release:

Anheuser-Busch will become the U.S. importer of Tiger Beer, a leading premium brew from Singapore, expanding the American brewer’s portfolio in the growing U.S. import category, the two brewers jointly announced today.

The agreement gives Tiger Beer access to Anheuser-Busch’s broad marketing and sales expertise and to its wide-reaching U.S. distribution network, which is considered the best in the industry. The deal follows the recent announcement of a similar partnership with the Dutch brewer, Grolsch, continuing an aggressive push by Anheuser-Busch into the high-end beer category.

“Tiger Beer is recognized as one of Asia’s finest beer exports,” said August A. Busch IV, president of Anheuser-Busch Inc. “Tiger Beer is a high-quality, premium brand that is a perfect complement to our growing portfolio of import beers.”

….

Imported beers represent approximately 12.4 percent of the total U.S. beer market, selling 25.6 million barrels in 2005.* The segment grew about 7.2 percent in 2005* and has experienced an average growth rate of 5 percent over the past five years, making it one of the fastest-growing segments of the U.S. beer market.

* Department of Commerce Data provided by the Beer Institute [who we already know cannot be trusted — editor’s note. See my previous rant about the Beer Institute’s being in thrall to A-B via the Here’s to Beer ad campaign.]

The agreement will be effective May 1, 2006. Terms were not disclosed. The imported Tiger Beer will continue to be brewed at Asia Pacific Breweries’ Singapore brewery for export to the United States.

Anheuser-Busch is focused on expanding its participation in the import and high-end beer categories as a key growth strategy for its U.S. business. Anheuser-Busch brews and sells two of Japanese brewer Kirin Brewery’s beer brands in the United States – Kirin Ichiban and Kirin Light. In some areas of the country, Anheuser-Busch wholesalers carry Corona and the other beer brands of Mexican brewer Grupo Modelo.

So if you’ve been following along, this is just the latest by an increasingly desperate looking Anheuser-Busch. It’s not that Tiger Beer is bad — it really isn’t — but taken together with all the mischief the King of (Flavorless) Beers has been up to lately to get revenue and the share price back up after a truly disastrous 4th quarter last year, it’s just becoming more and more painful to watch. In my fantasies I’d like to believe this is their death rattle, but I know better. They’re not only not going away any time soon, they’ll be around long after I shake off my mortal boil. But that doesn’t change the true enjoyment out of watching them squirm and struggle, even if it’s only a very little bit.

Filed Under: News Tagged With: Asia, Business, Press Release

Gambrinus Company Loses Corona

March 10, 2006 By Jay Brooks

Grupo Modelo, the brewery that makes Corona beer won an arbitration against its longtime importer for the Eastern United States, the Gambrinus Company of San Antonio, Texas. When Modelo announced last year that they would not be renewing Gambrinus’ contract, the importer took the dispute to the Paris-based International Chamber of Commerce for arbitration. The contract is set to expire in 2007.

Gambrinus also owns or imports several other brands, including Moosehead, Shiner, Pete’s Wicked, Trumer and BridgePort. Anheuser-Busch also owns 50% of Grupo Modelo.

Filed Under: News Tagged With: Business

Beer: “Official Drink of Knuckleheads”

March 8, 2006 By Jay Brooks

At the annual Nightclub & Bar Show held — where else — in Las Vegas, Miller Brewing CEO Norman Adami made some surprising admissions in a speech he gave last night. Perhaps they weren’t that remarkable when you consider that he was speaking to a group that consisted primarily of bar owners and it was reported by MarketWatch, a trade magazine that is read almost exclusively by the same people. If you want to know what’s really going on, a good place to start is to read what business people are saying to one another in the business press. There they generally speak with a great deal more candor because their audience is almost exclusively the business community. Since there’s less need to spin the news for the general populace of consumers, you can therefore often find some excellent nuggets of uncommon honesty.

Adami followed the line of reasoning Anheuser-Busch has recently taken that beer drinkers are switching to wine and spirits as they are “significantly outpacing the growth of beer.” He did, at least, acknowledge that craft beer and imported beers “continue to grow at a good clip.” A reasonable person at this point might look to the taste and more flavorful character of craft beers and many imports and conclude that perhaps it was time to stop making bland, flavorless mockeries of beer. Silly you. It’s the fault of marketing. It can’t be the product, it must be the way it’s presented. Adami said that in the mid-1990s, “brewers fell into a pattern of sameness in message, sameness in look and sameness in our products.” Oh, that must be it. He continued. “We were promoting sameness and increasingly going lowbrow. It is as if we were promoting beer as the official beverage of the knuckleheads.” He claimed the consumer “was looking for more diversity and style.” Diversity and style, huh? That sure sounds like a cry for flavor to me. Since the bland American-style pilsners that the big breweries continue to churn out like a bad science project gone awry are the very opposite of diversity and literally have no real style, wouldn’t the logical conclusion be to take a look at the products you’re offering?

Nobody says the big breweries can’t make a decent beer, which is why it’s all the sadder that they no longer do. There’s almost no one left alive who can remember what big brewery beer tasted like before World War Two. That’s when the slide toward mediocrity really began. The U.S. government asked the breweries to make watered-down versions of their beer because they didn’t want soldiers to be drunk while bullets were whizzing all around them, which is quite sensible. Of course, not drinking at all might have also made sense but those were different times and attidtudes were also different, to be sure. But the unfortunate result was that when the soldiers returned many of them also brought back a preference for the blander beers they had in the war. And every brewery was happy to oblige them since a watered-down beer is also a cheaper beer to make, which means more profits. So what began innocently, continued for decades of slowly making beer more and more bland until it reached its zenith in the early 1980s with the popularity of light beers. It’s hard not to see the ensuing microbrewery revolution of that same time period as a backlash to the bland beers of the day.

But as if you needed more proof that profit is king, Miller will not be improving the taste of its beer by the reintroduction of flavor to fight this crisis. Instead they will be “overhauling the packaging and marketing of its big domestic brands, including Lite, Genuine Draft and High Life, while heavily promoting imports including Pilsner Urquell and Peroni.” Well that ought to do it. Whew, dodged a bullet there. That should keep the shareholders happy.

He concluded by commenting that there are signs of “a reawakening in the American beer business. I believe the industry is going to get its marketing mojo back.” Well, what a bold prediction. That’s just what the American beer business needs: better commercials, better billboards, better sports sponsorships, better methods of selling but decidedly NOT better beer. If there was ever a better opportunity for craft beer to step in and fill the public demand for “diversity and style,” this is it.

Filed Under: Editorial, News Tagged With: Business

Achouffe to Import Double IPA

March 7, 2006 By Jay Brooks

Brasserie d’Achouffe, a relatively recent addition to the scores of excellent small Belgian breweries (they began in the mid-1980s) will become the second Belgian brewery (after Urthel) to create a Double IPA to import to the American market. Their new Houblon Chouffe IPA Dobbelen Tripel will reportedly be available in the U.S. through B. United beginning later this month. Shaun O’Sullivan, brewer and co-owner of 21st Amendment Brewery & Restaurant in San Francisco, California, became the first American to try the beer during a brewery visit last week. I have to say that I like this trend. For years, American brewers have been paying homage to the wonderful beers of Belgium. It’s nice to see that trend beginning to reverse even on a small scale. It means at the very least that we’re doing something right, even if the majority of our own consumers are largely oblivious. I for one look forward to giving this one a try.

Jean Louie, Marketing director of Brasserie d’Achouffe leads Shaun O’Sullivan on a tour of the Achouffe brewery.

Drinking the Dobbelen IPA, Jen Garris and Shaun O’Sullivan were the first Americans to try this beer. They took pictures of Shaun drinking it. The Imperial IPA will be sold only for the American Market. According to Shaun, it’s a very bitter beer with the Achouffe yeast aroma. Chris, one of two owners is on the far left. Jean Louie is next to him and then Christopher. Shaun also brought two bottles of his Double Trouble Imperial IPA and it blew them away.

Jen Garris and Shaun O’Sullivan trying the range of beers from Brasserie d’Achouffe in their new tasting room.

Jen Garris and Shaun O’Sullivan toasting with Achouffe’s Dobbelen IPA.

Filed Under: Beers, News Tagged With: Belgium

Bay Area Brewer in Belgium

March 7, 2006 By Jay Brooks

Last night on his Lufthansa flight back from belgium, 21st Amendment brewer Shaun O’Sullivan e-mailed me some of his photos from his trip to Belgium, so I thought I’d share them with everybody.

With the bartenders at the Koln Karnival at the local Pfaffen Brewery in downtown Koln.

Shaun with Jen Garris of Magnolia Brewpub and a local clown.

Shaun with another local at the Koln bar.

Touring Chimay with Pierre, a civilian that works in the brewery.

Outside of Rochefort brewery.

According to Shaun, the gate was open at Rochefort, so they just walked in and took pictures. Nobody said anything to them because of the vow of silence.

Filed Under: News Tagged With: Belgium, California, Europe, Photo Gallery, San Francisco

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