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Jay R. Brooks on Beer

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Bud Woos Modelo

June 12, 2008 By Jay Brooks

The Wall Street Journal is today reporting that Anheuser-Busch has entered into talks with Grupo Modelo about some sort of merger or acquisition in an effort to keep InBev’s takeover bid from becoming a reality. This is at least one of the strategies that had been floated in recent weeks and months for strengthening A-B. If you’re unfamiliar with Grupo Modelo, they are the largest brewer in Mexico, with nearly a two-thirds share of the Mexican market, and I’m sure you know at least one of their dozen brands: Corona. A-B already has a 50% stake in the Mexican beer company, but it’s non-voting stock and thus they have no control over the business. Today’s AP story regarding the InBev deal mentioned that InBev’s weak performance last quarter makes getting enough equity to complete the takeover possibly problematic, meaning that an A-B that also included control of Corona would be more expensive, which might be enough to kill the deal. Strap in folks, this is getting interesting.

 

Filed Under: Breweries, News Tagged With: Anheuser-Busch, Business, Modelo

Next Session Announced: Drinking Anti-Seasonally

June 12, 2008 By Jay Brooks

Well that’s it in a nutshell. Rob, from Pfiff!, explains it more thoroughly, and the real title of his topic for Session #17 is actually “Going Against the Grain Bill: Solstice Edition.” With that mouthful of a title, he’s definitely got some ‘splainin’ to do, which he wittily manages:

Up here in the Northern hemisphere, we’re fast approaching the summer solstice, when the sun opts to beat down on us for as long as possible, and the marketing eye of brewing’s Sauron becomes firmly targeted on light, easily quaffable, lawnmower beers, which we’re all supposed to dumbly chug down after demonstrably wiping our brows with the brim of the sweat-beaded can (cuz it’s hot!) while wearing our mothball-scented aloha shirts and comically over-sized, personalized suede bbq mitts. (I’m likewise certain the same spell is being cast on you all down in the Southern hemisphere, but I can’t even begin to imagine what they’re trying to sell you at the moment.)

Granted, this sounds fun for about a minute. But before too long, we all like to duck out of view and follow our true (beer-related, please) desires, despite how unconventional it may seem to the general populace. Now’s your chance to enlighten the rest of the world on what they might be missing.

The subject for July’s Session could be summed up thusly: Drinking anti-seasonally. Think of this as the unorthodox cousin of such topics as “beer and food” and “beer and music”. Beer and weather, perhaps? More like beer despite the weather, I guess. Cracking open a Guinness on the beach, finishing a day of yardwork with a Speedway Stout, or whatever else you do that raises an eyebrow (again, beer-related, please), do us all a favor an take a few moments to share your non-conformist tale (again, you kangaroos and lemurs down there, your take on this could be even more peculiar, so do chime in, please).

This should be fun. I rarely do what I’m supposed to, so now I’m not sure how to not do something that tells me to talk about what’s something I do that I’m not supposed to. Capisce? Join us on the 4th of July to talk about what beer you drink when no one’s looking.

 

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NBC Today Show Features Beer vs. Wine

June 12, 2008 By Jay Brooks

On the Today Show on NBC this morning, there was a short segment on pairing food with beer and wine, featuring Sam Calagione, from Dogfish Head Brewery, and Marnie Old, his co-author, of the new book by both of them, He Said Beer, She Said Wine. It felt a little rushed, but they did manage to taste the two hosts, Kathie Lee Gifford and Hoda Kotb, on a cheese and some chocolate with both beer and wine. The beer Sam paired with a Gruyere was New Belgium’s Mothership Wit and with the dark chocolate, his own World Wide Stout (aged for five years). This was great exposure for craft beer and food and beer, specifically. The Today Show is about as mainstream as one could ask for.

 

 

Filed Under: Uncategorized Tagged With: Uncategorized

American Politics and the InBev Takeover Bid

June 12, 2008 By Jay Brooks

The Associated Press has an interesting article today that’s been picked up all over the place entitled Politics an Obstacle for InBev’s Anheuser-Busch Bid. The gist of it is that during an election year, patriotism will cause politicians to come down against having ownership of the country’s largest beer company move to foreign shores. To wit:

But politicians and activists are already lining up against the deal, saying it could cost jobs in the United States and send ownership of an iconic American company overseas. With economic concerns at the front of voters’ minds, the opposition could cause a headache for InBev.

Republican Gov. Matt Blunt said Wednesday he opposes the deal, and directed the Missouri Department of Economic Development to see if there was a way to stop it.

“I am strongly opposed to the sale of Anheuser-Busch, and today’s offer to purchase the company is deeply troubling to me,” Blunt said in a statement.

Personally, I haven’t made up my mind yet about the deal and what it will mean for the beer industry, but I have a hard time swallowing the jingoism of these arguments. Where were they when Miller was bought by SAB or when Coors and Molson merged?

A SaveAB website has even been hastily set up and already has collected over 11,000 signatures on an online petition to stop the deal. The tagline on the website is “It’s not just a St. Louis brand. It’s an American brand.” Hmm, what was A-B’s reaction to the people of Latrobe, Pennsylvania trying to save their own brewery when A-B bought the Rolling Rock brand last year? I recall they were downright arrogant in their response. It’s ironic how these things often come full circle, isn’t it? Perhaps they’ll begin to understand how the people of western Pennsylvania felt now that the beer bottle is in the other case.

The SaveAB website includes some hilarious rhetoric given their cold response to the Latrobe deal. It’s signed “Concerned Americans,” lists a St. Louis address for the organization, and includes the parting shot: “This Bud’s for you and the U.S.A.!” I guess that’s an updated version of the old General Motors saw about “what’s good for GM is good for the country.” Even if the deal does go through, I doubt much will change significantly at the ground level. Bud will likely continue to dominate the market though it’s possible things will change at the upper management level which might eventually signal changes in the company. But there’s still a long way to go before this is finished.

I continue to have very mixed emotions about this deal, but I’m very frustrated by how politicians seem to care only about the largest companies while ignoring the small and regional businesses that fail on a daily basis. Why do we continually help the rich stay rich while ignoring the middle class and poor? I already know the answer to that question, but that doesn’t mean I have to like it. Is it too early to start drinking today?

 

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International Brewers Day

June 11, 2008 By Jay Brooks

Two Sessions ago I suggested that we set aside a day to honor the men and women who brew beer. I further suggested that July 18 be the day, because it is St. Arnold’s Feast Day, one of the most prominent patron saints of brewing. I’ve now set up a website (brewersday.org) and with the help of a graphics designer friend (thanks Ken), created some graphics, buttons and banners, to help promote the holiday. Take a look at the website and let me know what you think of it and, of course, about the holiday itself. Any constructive suggestions will be greatly appreciated.

With just over a month to go until the first International Brewers Day, I hope you’ll join me on July 18 in raising a toast to all the men and women who make the great beer we all love.

 

 

Filed Under: News Tagged With: Holidays

It’s Official! InBev Makes A Bid For A-B!

June 11, 2008 By Jay Brooks

After literally years of speculation, rumors and blind alleys, it’s official. CNBC is reporting on their “Breaking News” ticker that InBev has made a $65 cash offer for Anheuser-Busch stock. CNBC now has more on the story.

Anheuser-Busch has acknowledged the takeover bid in a press release issued today.

Anheuser-Busch Cos. Inc. (NYSE: BUD) announced today that it has received an unsolicited, non-binding proposal from InBev to acquire all of the outstanding shares of Anheuser-Busch for $65 per share in cash.

Anheuser-Busch said that its board of directors will evaluate the proposal carefully and in the context of all relevant factors, including Anheuser-Busch’s long-term strategic plan. The board will review the merits of the proposal consistent with its fiduciary duties and in consultation with its financial and legal advisers. The board will pursue the course of action that is in the best interests of Anheuser-Busch’s stockholders.

Anheuser-Busch’s board expects to make its determination regarding InBev’s proposal in due course.

I’m sure additional details will emerge in the coming hours and days, though by “due course” it’s more likely going to be months before anything is finalized.
 
UPDATE: Additional reports have put the total price for InBev to acquire A-B at $46.3 billion. The $65 stock offer represents a 24% increase over share value as of May 22, which is the day before the most recent round of takeover rumors began. Despite the seemingly generous offer, some analysts believe it could even go higher, with speculation of a $70 per share final offer fairly common.
 

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Costco Decides Not To Take Case To Supreme Court

June 10, 2008 By Jay Brooks

According to a press release I received today from the National Beer Wholesalers Association, Costco has decided not to seek certiorari to appeal the appellate decision by the Ninth Circuit to the U.S. Supreme Court. This effectively means the matter is over and keeps in place almost all of the state’s regulatory power over alcohol. As almost every other state breathed a heavy sigh of relief, the NBWA “applauded” Costco’s decision, saying it was “a win for the people of Washington state.” From the press release:

[The earlier] Ninth Circuit Court of Appeals [ruling affirmed] the right of states to regulate alcohol consistent with the 21st Amendment to the U.S. Constitution. The Ninth Circuit’s opinion unequivocally upholds Washington’s uniform pricing rule, delivered pricing requirement, volume discount ban, credit prohibition, central warehousing ban, minimum mark-up and retail-to-retail sales ban.

“Alcohol is different from other products available to consumers, and it should be regulated differently,” said NBWA President Craig Purser. “The Ninth Circuit’s ruling upholds the right of states to set alcohol policy. America’s beer distributors will continue to support state-based alcohol regulation that works to keep communities safe.”

 

Filed Under: Uncategorized Tagged With: Uncategorized

McCain Vows To Veto “Every Single Beer!”

June 10, 2008 By Jay Brooks

Okay, it was just a slip of the tongue, but it was a funny one. On CNN’s Political Ticker blog, they’re reporting that Republican presidential hopeful John McCain accidentally said the following during a speech at the National Small Business Summit held in Washington, DC. “I will use the veto as needed. I will veto every single beer …” before quickly correcting himself. Hilarious. I wonder how his wife felt about that one? Maybe he was just parched and needed a beer. You can even watch a video of McCain’s gaffe.

 

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Brewmaster Ranked #1 Cool Job

June 9, 2008 By Jay Brooks

CNN, through their sister website CareerBuilder.com, ran a fluff piece where they listed their choices for the nine coolest jobs that pay well. Topping the list was “Brewmaster.” I’m not quite convinced about the “pays well” part, but they list the median income as $42,430, based on data from CBSalary.com. They justified their choice with this questionable bit of logic:

To put it mildly, a lot of people like to drink beer. It’s associated with goods times, 21st birthdays and football games. (In fairness, it’s also associated with hangovers the next day.) Who wouldn’t want to be the creator of a tasty ale that will be imbibed by many the partygoer? Plus, you get to do taste-testing along the way, which is always fun.

Brewmaster beat out toy creator, doll fashion designer and even sommelier. I’m glad to see it top the list, and I’m certainly not arguing it doesn’t deserve to be there, I just think brewers deserve to be paid better. Now that would be cool.

 

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Triumph Brewer Passes Away

June 9, 2008 By Jay Brooks

I got a couple of e-mails today that Jay Misson, the head brewer for Triumph Brewing in New Jersey and Pennsylvania, passed away today. He worked for Gordon Biersch for a time, training brewpub brewers, and I think I met him once during that period in his career. Lew Bryson, who knew him quite well, has a moving piece on his blog today.

 

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