Brookston Beer Bulletin

Jay R. Brooks on Beer

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Ohio Bar Declared “Most Arrogant”

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Out of 46 bars nationwide that signed up for a promotion sponsored by Stone Brewing, Boston’s Bistro and Pub in Dayton, Ohio was declared “The Most Arrogant Bar in America” and will hold the title for one full year. In order to win, they had to sell more of Stone Brewing’s Arrogant Bastard beer than any of the other participants. They took all of the other beers they normally carried off of their taps, and sold over eighteen half-kegs or approximately 2,634 pints to win the prize.


 

UPDATE: Kevin from KevBrews also has a nice update on this story.

InBev and AnBusch Hop Into Bed Together

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There aren’t too many details yet, but it was announced today that the long rumored — and just as long denied — distribution agreement between Anheuser-Busch and InBev will occur. What we do know so far is that A-B will take over distribution of all of InBev’s brands in the U.S., with the exception of Brahma and Labatts. I have already heard from InBev employees I know that they will lose their jobs as of the end of January next year. There’s no word yet how many people will be rendered redundant and how many, if any, will get to keep their jobs.

How this will effect the industry remains to be seen, but rest assured it will have a big impact on a variety of fronts. The deal is effective February 1, 2007.

Here are some early reports on the deal from a variety of sources:

 

From the press release:

ST. LOUIS – Brussels (November 30, 2006) – Anheuser-Busch (NYSE: BUD) will become the exclusive U.S. importer of a number of InBev’s (Euronext: INB) premium European import brands, including Stella Artois®, Beck’s®, Bass Pale Ale®, Hoegaarden®, Leffe® and other select InBev brands, the two brewers announced today.

Effective February 1, 2007, Anheuser-Busch will import these premium brands and be responsible for their sales, promotion and distribution in the United States. These InBev brands, which had sales volumes of about 1.9 million hectoliters (or about 1.5 million barrels) in 2005, will be available to Anheuser-Busch’s U.S. wholesaler network where possible.

InBev’s Canadian brands, including Labatt Blue® and Labatt Blue Light®, as well as Brahma®, are not included in the agreement. Working closely with Labatt Breweries of Canada, InBev USA will continue to market and sell the Labatt and Brahma brands through a separate distribution network.

Terms of the agreement were not disclosed.

“This agreement gives us highly-valued brands that appeal to beer drinkers looking for sophisticated imports in their beer choices,” said August A. Busch IV, president and chief executive officer of Anheuser Busch Cos. Inc. “We live in a world with diverse cultures and lifestyles, and this provides additional variety for our consumers. These well-known import brands complement our company’s leading portfolio of American premium beers and enable our company to better compete. This is consistent with our stated strategy of enhancing our participation in the U.S. high-end beer segment.”

“By securing access to Anheuser-Busch’s world-class sales and distribution system, this agreement will enhance opportunities for U.S. consumers to experience the unique values of our premium European import brands, and further accelerate their growth,” said Carlos Brito, CEO, InBev. “This is another step in InBev’s mission to create enduring bonds with our consumers throughout the world.”

Doug Corbett, president of InBev USA, said: “InBev USA remains fully committed to the Labatt Canadian brands and to Brahma. These are great brands with a lot of potential and this agreement will allow us to focus on growing them in their markets.”

Grupo Modelo to Build New Brewery on the Rio Grande

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According to today’s International Herald Tribune, Grupo Modelo, the Mexican brewer responsible for the abomination that is Corona, announced plans to build a new brewery by 2010. The new brewery will be built in Piedras Negras, a city located near the border of Texas, just across the Rio Grande River, in the Mexican state of Coahuila. The new brewery will be built to meet a growing demand for its flagship beer, Corona, and will add approximately 260 million gallons of capacity for the company.

Champagne vs. Beer

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When many people think of champagne and beer, they might conjure up the image of Miller High Life, which used to call itself “the champagne of bottled beer.” But many American craft and Belgian brewers are increasingly putting their high end beers in champagne bottles, with cork, cage and foil, just like the sparkling wine. It was an easy shorthand to convey that what’s inside the bottle is as fine in its own way as any wine and the size and seal and make them ideal for bottle conditioned beers which continue to ferment in the bottle. The small Belgian brewery, Malheur, has taken this idea one step farther and released three beers that evoke champagne in their very names: Malheur Bière Brut, Dark Brut, and Cuvée Royale. All three use what owner Emanuel De Landtsheer calls “à la méthode originale.”

De Landtsheer’s family had been in brewing for generations and he recently took up the family calling when he opened the Malheur brewery in 1997. Michael Jackson has a delightful story about the brewery’s origins at his online Beer Hunter. When he first debuted the Brut line, he also used the phrase, the “Veuve-Clicquot of the beer world” in his marketing of the beers. Veuve-Clicquot sued to stop Malheur from using their name in the advertising, along with the more general terms, “method traditional”, “brut” and “reserve.” The lower court ruled for the champagne maker but on appeal to the European Court of Justice, it appears that they will rule for Malheur. Malheur voluntarily stopped using specific reference to Veuve-Clicquot for their beer, and the high court will likely rule that the other three terms do not imply a specific product or competitor and as such are legal to use for beer. The official ruling has not yet been handed down, but Reuters is reporting that this is now the expected outcome because their rulings generally follow the advocate general’s opinion.
 

Latrobe Tribute

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One of the folks at After These Messages, a new blog created to examine and critique advertising, sent me a link to the following tribute video on YouTube for the town of Latrobe, Pennsylvania. It’s both irreverent and moving, and a nice glimpse inside the brewery itself, too.

UPDATE: For reasons I can’t explain, this video is no longer available at YouTube. If anybody knows if it’s available elsewhere, please let me know.

No. 10 With a Bullet

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I get a lot of e-mails on a regular basis from PR firms pitching one story or another for their clients. Many times they don’t even have anything to do with beer because most firms don’t have a separate category and just lump all beverages, and usually food, together in one category. Today I got one that at first glance seemed destined for the delete key, though it was more interesting than most of the ones I get.

It was titled the “Ten Trends to Watch in Packaged Goods in 2007” and was complied by the market research company Datamonitor. Of the first nine, a few of their predictions could have some relevance to craft beer, but more likely to fringe malt beverages or other kinds of drinks. Those categories are Calorie Burning Beverages, Satiety-Enhancing Foods & Drinks, Local Sourcing of Ingredients, and Immunity Boosting Foods & Drinks.

Number 10, on the other hand, was “Better for You” Beer – Blame it on the “French Paradox.” Here it is in its entirety:

With beer losing ground to wine in many markets around the world, beer makers are beginning to fight back with new products promising new health benefits for beer. Stampede Light is claimed to be the “first ever government approved vitamin beer” for the USA market with its B-vitamins, folic acid and folate. In Germany, Karlesberg Braueri is out with a pair of new functional beers aimed at women. Karla Well-B, for instance, is made with lecithin, folic acid and other vitamins. Karla Balance mixes hops with lemon balm. Both products have just 1% alcohol by volume. Beer may never be the same.

That’s not one of the trends in beer I would have predicted needed watching, but then I don’t have the research apparently Datamonitor does. But I already have prima facie questions about it. Their initial justification is that “beer [is] losing ground to wine in many markets around the world.” But I haven’t seen anything more than polls that only anecdotally support that, and even some of that data doesn’t support that conclusion. Sales of beer are still many times wine (4 to 1 in the U.S.) so how true is that assertion?

I have no problem with the health benefits of beer being touted in beer marketing and advertising. Craft beer without any additives at all has many proven and theoretical health benefits. That the TTB doesn’t permit beer companies to make those claims because it might promote drinking is puritanical nonsense that has no place in a free society. Beer with health additives seem like novelties to me, however sincere their makers may be. Many I’ve tried taste just fine to me, but there appeal seems largely aimed at persons for whom the particular claim of each one resonates in some particular way for that customer. In other words, their appeal is more limited. They are, after all, niche products by definition and many are sub-niches of broader categories like health food products or organics.

So I just don’t see these as trends worthy of our constant attention next year. Far more likely trends to watch, I think, will be organic beers and gluten-free, but only time will tell. What do you think? What will be the hot new trends in beer next year?

Aping Beer

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To start talking about Anhesuer-Busch’s first big ad campaign since acquiring the Rolling Rock brand, you first should see the first volley, this “beer ape” commercial. Go ahead, press play. I’ll wait.

The next commercial on television now features a Ron Stablehorn apologizing for the ad you just watched as being offensive to the “Friends of Rolling Rock.” And you can see why, the ad is about as offensive as any other A-B ad I’ve seen. But if you didn’t already see it coming, the whole thing is a sham, a put-on, a con job — use whatever phrase you like — it’s a fake controversy created as a part of a more complicated ploy. There is no Ron Stablehorn and no “Friends of Rolling Rock” organization. The irony I think is that there truly are no friends of Rolling Rock left after A-B’s controversial decision to not purchase the Latrobe Brewery where Rolling Rock had been brewed since 1939 and move production to Newark, New Jersey. Maybe it’s just me, but a pretend controversy just months after a real one in which the Latrobe Brewery closed and hundreds of workers have been unemployed since late July, seems a tad insensitive to me. I realize the brewery has been sold and should reopen, but that doesn’t change the fact that an entire town was effected by A-B’s decision not to buy the brewery in Latrobe.

Apparently I’m not the only one, either as an article in today’s Pittsburgh Tribune-Review makes clear.

From the article:

Kelley Skoloda, a partner at Ketchum Communications, Downtown, said viral marketing generates attention for a company by using outrageous, ludicrous or funny images, which create buzz and give consumers something to talk about. It typically resonates with the coveted Gen Y demographic, and is meant to spread organically, from friend to friend, rather than through a spokesman with an agenda.

But Skoloda and Robert Gilbert, professor of marketing at the Katz Graduate School of Business at the University of Pittsburgh, agreed that the beer ape-bumbling executive campaign will get a much different response in Western Pennsylvania, since this summer Anheuser-Busch shuttered the Latrobe brewery, home of Rolling Rock beer for nearly 70 years.

Skoloda also said that “from what she’s seen of the campaign, most people don’t think it’s all that funny. I think the key to creating a viral campaign is transparency,” she said. “It may not be as clear as it needs to be with this campaign.”

Gilbert added that the campaign “is probably a whole lot less offensive than taking their jobs away from them. I’m not sure the people at Anheuser-Busch are getting great joy throwing salt in the wound, I just think it never dawned on them.” It may not give them great joy, but they do seem to do it an awful lot. See for example, my previous rant about that very issue, in which I even used the exact same language.

Tom Marflak, the mayor of Latrobe, Pennsylvania (and now a Coors Light drinker), had this to say:

“They destroyed this city. It was a total slap in the face when they came in here, and just bought everything, even the green bottles.”

It’s funny how good A-B’s advertisers are at doing an ad with no substance that’s designed to be just slightly offensive, just enough so that they’d be convinced it was possible that viewers less enlightened then they are could find it offensive but without finding it offensive themselves. That’s a pretty thin tightrope to walk. Did they succeed? Apparently half-a-million visitors have gone to Rolling Rock’s website to learn more about the supposed controversy, so yeah, people really are that gullible.

Another oddity about the new ad campaign is the way they’re framing the kind of beer Rolling Rock is, which the ads describe as a “classic extra pale lager with a rich tradition.” First, I don’t see how you call something that’s “extra pale” a classic, but perhaps that’s my own prejudice. Pale is defined as “lacking intensity of color; colorless or whitish.” How can something have an “extra” lack of color or be “extra” white? Next, invoking a “rich tradition” is weird when you consider Rolling Rock’s richest tradition is that the beer came “from the glass-lined tanks of old Latrobe,” a tradition A-B dismantled when they moved production to the next state over.

Is this a dignified way for A-B to rebuild the brand after buying it? Over the years they’ve used horses, frogs, dogs, lizards and now an ape to promote one of their brands so it’s certainly fits with their pattern of ad campaigns. They’re going after young twenty-somethings, obviously, and I realize the “beer ape” is not really a spokes-animal for Rolling Rock (unless of course, it proves popular) but it’s hardly an audacious beginning. I would have expected something aimed above the level of primates, but maybe that’s the demographic A-B is going after: people who closely identify themselves with apes. Was Jane Goodall at that pool party?

Be a Beer Tycoon

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I’m generally not one for video games, but this one could be interesting. According to GameShout, an online resource focused on computer gaming, the British company Virtual Playground has just released a new game called Beer Tycoon. According to the company’s website the game is described like this:

In Beer Tycoon you build, staff and manage your very own brewery. Invent new beer recipes from dozens of available ingredients, set them into production, create market leading brands and distribute them to your customers.

Starting with limited funds, build a micro-brewery and learn the craft of the brewer from the ground up in one of three European countries; Germany, the UK or Belgium. Eventually you’ll be confident enough to run a high tech industrial scale brewery on a truly massive scale.

 

 

As GameShout describes it, “the game offers the opportunity to enter the beer business as head of a micro brewery or a medium sized suburban brewery, or even enter the global competition managing a full-blown big brewery. These companies can consist of up to 21 different brewery building types. There are 50 ingredients one can brew the beer from, including various kinds of hops and malts, and even specialities like chili and chocolate.”

Now that could be a game I might enjoy playing. Unfortunately it appears to be only for Windows users right now, so us Macheads are left wanting, as usual.

A screen capture of one of the types of breweries you could build for your virtual brewing company.