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Mergermania & The Global Beer Picture

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piechart
Yesterday Charlie Papazian had an interesting post about recent production numbers of brewers worldwide and how the top Four brewing companies control 50% of the world’s beer. That’s due to the increasing mergermania in the brewing industry, with the recent purchase of Mexico’s FEMSA by Heineken but not including the announced acquisition of Grupo Modelo by Anheuser-Busch InBev. According to a UK Reuters report, the Top four brewers make up half [the] global beer market. The supporting data comes from a researcher for Plato Logic, a beer industry analyst company in Great Britain that produces their world beer report each October. Presumably his statistics are preliminary, taking into account changes in ownership that have taken place since the last report.

But roughly, here’s what his data shows in a chart I made, using the estimates given for millions of hectoliters produced by the top five beer companies. It shows the relatives sizes of them, and how the top four are so far out in front that it’s almost ridiculous and frankly, you can make that same argument for the top four or the top three. There’s a lot of separation, but one big merger and the deck gets shuffled again.

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Though the production numbers aren’t given for the bottom half of the top ten, here they are by rank.

  1. Anheuser-Busch InBev
  2. SAB Miller
  3. Heineken
  4. Carlsberg
  5. Tsingtao
  6. MolsonCoors
  7. Grupo Modelo
  8. Beijing Yanjing Brewery (China)
  9. Kirin
  10. Asahi

Estimating world beer production (it’s not given in the article) from the Beer Institute’s Brewer’s Almanac, I made the chart below to show how the top four do indeed account for just north of half the beer produced in the world.

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And finally, including number five Tsingtao, here’s how the overall picture looks.

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Beer In Ads #67: Guinness’ Why Was The Hatter Mad?

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Wednesday’s ad, since it’s St. Patrick’s Day, is for Guinness, but I wanted to pick one that wasn’t by John Gilroy. This one is a spoof of Alice in Wonderland from I don’t know when. The art is similar, of course, but it seems later. Beginning in 1903, numerous films have been made based on Lewis Carroll’s surreal story, but the Disney version from 1951 probably did more to popularize the story than any other, especially for kids. So based on that I’m just guessing this was before that since the artwork looks more inspired by the original illustrator, John Tenniel, than Walt. Anyway, the text spoofing the scene with the Mad Hatter is pretty funny. Happy Stout Day.

guinness-alice

Why Was the Hatter Mad?

“Have some Guinness!” said the March Hare.
“I don’t see any Guinness,” Alice replied.
“There isn’t any” said the March Hare.
“Then you must be mad to offer me some!” said Alice indignantly.
“It’s after hours,” said the Hatter, “and we can’t get any. That’s enough to make anyone mad.”
“But surely you could have ordered some to drink at home,” said Alice.
“There!” said the March Hare. “We never though of that. That just shows how mad we must be.”

Anderson Valley Brewery Sold

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There have been rumors floating around for a few months now, and it’s been no secret that owner Ken Allen has been trying to sell his Anderson Valley Brewery for several years. According to the North Bay Business Journal, it looks like a sale is now official. The terms have not been disclosed, but pending the necessary approvals, a sale is expected to close next month. The buyer is HMB Holdings LLC, a company created for the purchase by Trey White, a former VP with United States Beverage. In addition to the USB portfolio, White has also worked with such brands as Goose Island, SLO and Grolsch. Anderson Valley will continue to be brewed at its present facilities in Boonville, California.

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Beer In Ads #66: Tuborg’s Thirsty Man

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Tuesday’s ad is a favorite of a friend of mine, Christian Kazakoff — who’s the head brewer at Iron Springs Pub & Brewery — and is for the Danish beer Tuborg. I got an e-mail from Christian last night about how much he’s enjoying my “Beer In Advertising” series and sharing with me his personal favorite, so I thought I’d feature his choice today.

Founded in 1873, since 1970 Tuborg has been owned by Danish brewing giant Carlsberg. Though founded in 1873, it was two years before they began brewing so in 1900 they sponsored a poster contest to celebrate their 25th anniversary. Though the winning entries were never used, one submission went on to become an iconic image, one that even today is still associated with Tuborg beer, especially throughout Europe. The painting, created by Danish artist Erik Henningsen (1855-1930), is known today as The Thirsty Man and has been used since November 1900 in Tuborg’s advertising.

henningensen-tuborg

It’s original title translated as The Sweaty Man, but since beer was the end product and not deodorant, it became known as The Thirsty Man, which I think you’ll agree has a much better ring to it. According to Just-Drinks, “the poster is still one of the most popular sold in Denmark. The image of the Thirsty Man has also been used to great effect in Germany, where Tuborg is the leading imported beer.” [Or at least it was when they wrote that in 2000.]

In addition, “the popularity of the poster was added to in 1977 when Den Store Tuborg (The Big Tuborg) [in] half-litre bottles was launched using the image as a label.”

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Even now, 110 years later, you can find Tuborg advertising using The Thirsty Man, such as this sign for Tuborg Pilsener.

tuborg-sign

They Said It Couldn’t Be Done

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Since it’s St. Patrick’s Day tomorrow and for most people that means Guinness, here’s a little reminder of something in Guinness’ recent past that I imagine they’d rather remained buried. But it’s just too funny not to share. In 1979, Guinness released a low-calorie beer they called “Guinness Light.” According to Ireland Fun Facts, “people here still talk about the advertising campaign, which used the tagline ‘they said it couldn’t be done.’ Apparently it couldn’t. Guinness Light flopped so sensationally it earned the title ‘The HMS Titanic of stout products’ from The Irish Times.”

It’s not hard to see why. I can scarcely imagine something more oxymoronic than Guinness Light. But for true liquid-shooting-out-your-nose laughs, watch the uber-bombastic television commercial that attempts to equate the beer with man landing on the moon. With bonus points for using the sunrise fanfare from “Thus Spake Zarathustra” by Richard Strauss (trust me, you’ll know it when you hear it), I love the editing of the people turning their heads quickly toward the camera and the faux echo chamber voice over. Just hilarious. But put your drink down first. Enjoy.

Beer In Ads #65: Thirsty Moon Beer

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Monday’s ad is an attempt to contrast Friday’s, which you may recall was the Girl in the Moon for Miller High Life. I don’t know much about this ad, though I believe it’s from the 1930s. It appears to be from Germany but looks not at all like a typical ad for a German beer. In this case, instead of the girl being in the moon, she’s instead offering the thirsty moon a drink of beer.

thirsty-moon-beer

Beer, Health & Nutrition

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There’s a nice article by the nutrition correspondent for Ask Men, Simon McNeil, entitled The Health Benefits of Beer. There’s no new ground covered, but he does offer a good overview of recent findings showing that beer is healthier for us — in moderation of course — than previously believed. It’s also great to see that message get some play in a mainstream magazine.

Odonata Website Launched

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Sacramento’s newest brewery, Odonata Beer. Co. — recently founded by formed Sacramento Brewing’s Peter Hoey and former DRAFT magazine beer director Rick Sellers — has just launched their new website, which for months has been essentially wallpaper. For updates, there’s also the brewery blog, too. You can also get a look at the now-approved label for what they hope will become their flagship beer, Saison Ale. It’s great to see things moving forward. Hopefully there will be beer to fill the bottles with those label very soon.

odonata-saison

The Cult of Beers Next Session Topic

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Our next Session is a little less than three weeks away, but it’s not to early to start thinking about it. The topic chosen by our host, Beer Search Party, is cult beers; those beers that are in short supply, high demand and often require going to great lengths to acquire.

Here’s how our host, Sean Inman, describes the topic:

With Kate the Great Day a recent memory and the day of the Dark Lord fast approaching, I started thinking about what beer or beers that I would get up at 4:00 in the morning, drive across state lines, stand in a long unmoving line in the cold and rain for the chance to taste with a crowd the size of Woodstock.

So here is my question to you (with a couple addenda).

What beer have you tasted recently (say, the last six months or so) that is worthy of their own day in the media sun?

And to add a little extra to it, how does “great” expectations affect your beer drinking enjoyment?

AND If you have attended one of these release parties, stories and anecdotes of your experience will be welcomed too.

So get cracking, get yourself a cult beer and start working on your own cult of personality. Then reveal it and get found on Friday, April 2 over at the Beer Search Party.

National Action Alert: Help Craft Brewers Reduce Taxes

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If you’re a regular Bulletin reader, you’ve already seen me rant about how unfairly taxes are levied on the brewing industry, who has to pay more taxes than any other product sold in America, except tobacco. With the help and support of the Brewers Association, H.R. 4278 has been introduced into thee U.S. House of Representatives seeking a redress of those egregious taxes. The BA has issued a national action alert, asking beer lovers everywhere to contact their elected officials to ask them to co-sponsor the bill. Here’s the press release:

Federal legislation in the U.S. House of Representatives, H.R. 4278 (link opens a PDF), seeks to enact a reduction in beer excise tax for America’s small brewers.

For small brewers brewing less than 6 million barrels annually, this legislation would cut the small brewer tax rate in half, to $3.50/barrel on the first 60,000 barrels, and reduce the upper tax rate from $18/barrel to $16/barrel on beer production above 60,000 barrels up to 2 million barrels.

Of the 1,525 breweries in America, 962 are brewpubs and 470 are the smallest bottling breweries, which produce volumes of 15,000 barrels of beer a year or less and sell their beers in local markets. Once barrel equals about 13.8 cases of beer.

The original small brewer tax rate of $7/barrel was established in 1976 and has never been updated. Since then, the annual U.S. production of America’s largest brewery increased from about 45 million to 107 million barrels and over 200 million barrels globally (or 1,240,000,000 five-gallon batches of homebrew!). Much has changed and the challenges small brewers face as small American businesses have grown dramatically since 1976.

Why is this a good idea?

  1. A tax reduction will help grow small business breweries and provide greater access to the beers you enjoy.
  2. Harvard University’s John Friedman’s study, Economic Impact of Small Brewers Excise Tax Reduction (H.R. 4278), (link opens a PDF), reveals that H.R. 4278 would also help stimulate job creation quickly and at a low cost:
    • The bill would generate more than 2,700 new jobs over the first year to 18 months, followed by an average of 375 new jobs per year over the following four years.

Please contact your U.S. Representative and ask that he/she sign on as a co-sponsor of H.R. 4278.

We have developed a resource page to give you the information and tools you need to make the case to your Representative for supporting this tax relief measure—and by extension, for supporting the small brewery businesses that are such a vital part of our local communities.

On the resource page, you will find a link to a list of current sponsors of H.R. 4278. If your Representative DOES NOT appear on this list, please take a moment and email your Member of Congress to ask them to cosponsor H.R. 4278.

If your Representative is already a cosponsor, please email him/her a brief thank you for their support of small brewers and you, the craft beer drinker and enthusiast.

Here’s some links to help you find out who your elected officials are so you know who to contact:

Okay, people get contacting. Your brewers thank you.