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Jay R. Brooks on Beer

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Bomonti Beer Factory

August 26, 2006 By Jay Brooks

There’s not a lot of beer coming from Turkey. Efes is probably the one most known to us westerners. The first brewery in Turkey was started in 1890 by two brothers from Switzerland, the Bomonti brothers. In 1902 they built a new facility in the southern part of Istanbul which still stands there today. It is situated in the Bomonti district, which of course takes it name from the factory. Beginning in 1938, it was known as the Istanbul Tekel Beer Factory. It was abandoned in 1991, and locals returned to calling it the Bomonti Beer Factory. It’s a beautiful seven-story building.

Earlier this week, Global Investment Holding along with Çelebi Holding announced their intention to turn the building in Turkey’s biggest hotel by 2009, to be operated by Marriott International and known as the Marriott Bomonti Hotel Convention Center.

Today, Turkey’s Culture and Tourism Ministry disclosed they will reject and cancel the offer regarding the 49-year operating lease for the Bomonti Beer Factory because the price was too low. So the factory is once again available. Hopefully, someone will put it too good use. It’s a terrific looking building with great possibilities, not to mention a piece of brewing history.

Filed Under: Uncategorized Tagged With: Asia, Business, History

Five Reasons to Keep Drinking Beer

August 26, 2006 By Jay Brooks

The Metro, San Jose’s alternative weekly might not be exactly mainstream, but when I lived in the area the years ago, it was a pretty good paper. This week’s edition features a short little column listing five recently discovered health benefits associated with drinking alcohol in moderation. These included a healthier heart, lungs, bone density, help in fighting cholesterol, and reducing the risk of a stroke.

Filed Under: Uncategorized Tagged With: Bay Area, California, Health & Beer, Mainstream Coverage

Anhesuer-Busch Takes Over Marketing & Sales of Kirin

August 26, 2006 By Jay Brooks

Anheuser-Busch and Japan’s Kirin Brewery annnounced today that their alliance will be enlarged to include marketing and sales of Kirin beers in the United States. Currently, A-B contract brews all Kirin beers for the domestic market at its Los Angeles brewery. That relationship began ten years ago and included distribution, as well, through A-B’s network of 600 wholesalers. Since 1993, Kirin has been contract brewing Budweiser in Japan for the Japanese market.

August A. Busch IV, president of Anheuser-Busch, was quoted as saying. “American consumers have a great interest in high-end Asian cuisine and culture, including Asian beer.”

Now that’s high-end, klassy with a “k.” Anybody want to venture a guess as to how she’s holding that glass? It looks like it’s glued to her hand or was done with Photoshop.
 

Busch continued. “We are aggressively expanding our range of high-end beers to meet the diverse needs of our consumers. The Kirin beers are of the highest quality and have enormous potential, as the Asian influence is rapidly growing. This new agreement enhances a truly global relationship between our two companies. Now, we also share a deeper commitment to each other’s success.”

But the big three Japanese breweries — Asahi, Kirin and Sapporo — are experiencing the same loss of market share the big U.S. brewers are, and for much the same reasons. Japan’s consumers, mirroring their American counterparts, are demanding more flavorful beers. But at the same time, economic difficulties have led to price wars with so many customers shopping on price alone.

This in turn has led to the rise of cheaper beers made with grains other than barley. Because of oppressive taxes on beer in which over a third of a beer’s cost goes to the government, brewers have been making alternative brews using less than 67% malt by using rice, corn or even soybeans as substitutes. These beers can be sold for half of the all-malt beers. But as for taste, most say you get what you pay for. Long term, this is potentially very damaging to the industry.

As for Kirin’s story, American businessman William Copeland and German brewmaster Herman Heckard founded the Spring Valley Brewery outside Tokyo in 1870. For luck they put a “Kirin” on the label. A “Kirin” (Qilin in Chinese) is a mythical beast that is generally considered a sign of good luck. Though it was not necessarily lucky for the Spring Valley Brewery, which closed in 1884 and became the Japan Brewery Co. a year later under new owners from Yokohama. In 1907, the Mitsubishi family bought the brewery, renaming it the Kirin Brewery. Kirin is currently the best selling beer in Japan.

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

Chateau Jiahu from Dogfish Head

August 25, 2006 By Jay Brooks

dogfish-head-green
There’s another new beer coming out from Dogfish Head. Sam Calagione’s latest creation is Chateau Jiahu, which is based on an ancient beverage discovered in a pottery jar “in the Neolithic villiage of Jiahu, in Henan province, Northern China.” Approximately 9,000 years old, the concoction was a fermented drink made with rice, honey and fruit. Dogfish Head again worked with Dr. Patrick McGovern, a molecular archeologist at the University of Pennsylvania to faithfully recreate — as far as possible — this ancient beverage.

Dogfish Head explains the process they used:

In keeping with historic evidence, Dogfish brewers used pre-gelatinized rice flakes, Wildflower honey, Muscat grapes, barley malt, hawthorn fruit, and Chrysanthemum flowers. The rice and barley malt were added together to make the mash for starch conversion and degredation. The resulting sweet wort was then run into the kettle. The honey, grapes, Hawthorn fruit, and Chrysanthemum flowers were then added. The entire mixture was boiled for 45 minutes, then cooled. The resulting sweet liquid was pitched with a fresh culture of Sake yeast and allowed to ferment a month before the transfer into a chilled secondary tank.

A very limited number of 750 ml bottles are being produced and should be in stores early next month. Artist Tara McPherson (who also did the label for Fort) did a beautiful label for this beer.

jiahu-dogfish-head

Filed Under: Beers, News Tagged With: Eastern States, Press Release

America’s Drunkest Cities! America’s Dumbest Survey?

August 25, 2006 By Jay Brooks

Forbes.com, the online part of the conservative financial organization, announced recently their list of the nation’s “drunkest cities.” Here’s the full list:

  1. Milwaukee
  2. Minneapolis-St. Paul
  3. Columbus, Ohio
  4. Boston
  5. Austin, Texas
  6. Chicago
  7. Cleveland
  8. Pittsburgh
  9. Tie:
    • Philadelphia
    • Providence, R.I.
  10. St. Louis
  11. San Antonio
  12. Seattle
  13. Las Vegas
  14. Denver/Boulder
  15. Tie:
    • Cincinnati
    • Kansas City
  16. Houston
  17. Portland, Oregon
  18. Tie:
    • San Francisco-Oakland
    • Washington-Baltimore
  19. Phoenix
  20. Los Angeles
  21. Tie:
    • New Orleans
    • Tampa
  22. Norfolk
  23. Dallas-Fort Worth
  24. Tie:
    • Atlanta
    • Detroit
  25. Indianapolis
  26. Orlando
  27. New York
  28. Miami
  29. Charlotte, N.C.
  30. Nashville

Setting aside the inanity of such a list, how — one might reasonably wonder — did they come up with such a list and keep a straight face?

Well here’s what they have to say:

Each city was ranked in five areas:

  1. state laws
  2. drinkers
  3. heavy drinkers
  4. binge drinkers
  5. alcoholism

Each metro was assigned a score in each category, based on quantitative data. All five categories were then totaled into a final score, which was sorted into our final rankings. For a fuller explanation, read the methodology used.

But here they are in nutshell, with some of my own commentary.

1. State Laws:

Cities were ranked on a scale of 1 to 8, with states deemed to have the least restrictive laws getting a higher score. They considered such intangibles as whether MADD liked that state’s alcohol laws, whether there was a law banning open containers and if kegs had to be tagged with identifying tags. Well, how scientific. How any of those vague standards can be said to make one state more “drunk” than another is simply ludicrous. The idea that a more permissive society in and of itself causes alcohol abuse or even leads to it is specious at best. Just because open containers are allowed, for example, does not mean citizens will necessarily abuse alcohol. That such a flimsy set of criterion was used and is being reported seriously is astounding.

2. Drinkers:

Cities were ranked from highest to lowest and given a score based on the number of each town’s residents who admitted to having one drink in the last month. One drink! Have we really gone so far down the neo-prohibitionist path that one drink in 30 days is equal to being an alcohol abuser? The idea that the more people who have one drink each month, the more abuse is occurring in a geographic area is so fallacious that it’s downright insulting. They use the seemingly non-judgmental term to describe this as a larger “percentage of [the town’s] population are alcohol consumers.” Well so what? last time I checked alcohol was still legal in this country and I can hardly see how a drink a month rises to the level where any reasonable person would be concerned.

3. Heavy Drinkers:

Scored similar to #2, but this time it was based on “the number of adult men who reported having had more than two drinks per day, and adult women having had more than one drink per day.” Apparently that’s what constitutes a “heavy drinker.” It doesn’t appear to make a difference what type of drink it is which apparently means there’s no difference between three pints of beer and three pints of whiskey per day. Yeah, that seems reasonable. So a beer with lunch and two with dinner and you’re a heavy drinker!

4. Binge Drinkers:

Scored like the previous two, the Forbes survey defined “binge drinking” as five or more drinks on one occasion. Is that ever? Within a year? What? To say that if you’ve ever had five beers at one party makes you a binge drinker is beyond ridiculous. It’s more than a little misleading to suggest that drinking one beer short of a six-pack one time makes you anything bad at all. Take the Super Bowl as an example. With pregame, long commercial breaks, an overblown half-time show and post game analysis it weighs in easily at least as long as five hours. So if you had one beer every hour during that one occasion you were a binge drinker according to Forbes and the CDC. Sure you are. What utter rubbish.

5. Alcoholism:

As laughably contemptible as the first four criteria were, this one takes the cake. Scoring was done “based on the number of Alcoholics Anonymous meetings held in the area, as a proportion of the number of residents over the legal drinking age.” Okay, personally I don’t agree with the idea of AA. To me, people are simply trading one addiction for a more socially acceptable one. But it obviously does work for some people and at least those who go to AA are trying to help themselves. So to measure a town’s relative drunkenness by the number of people trying to help themselves is not only wildly off the mark, it’s highly insulting to those attending the meetings. Is there a calculation or formula that explains how many people are alcoholics but not seeking help through AA. Are there no other methods, perhaps even private ones or clinics, besides AA?

The ways in which these results were calculated is so completely outside the realm of reality that it’s amazing an organization so supposedly respectable would have anything to do with it. I haven’t even scratched the surface on the ways in which these results are misleading and just plain wrong. They’re just too obvious and there are too many ways in which to show how embarrassingly disgraceful this list is.

A report on the survey by television station KPTV Channel 12 in Oregon added the following:

Forbes pointed out some surprising results. Some stereotypically “partying” cities didn’t rank high on the list. Las Vegas came in at only No. 14; New Orleans, home to Bourbon Street and Mardi Gras, only ranked in 24th place. And a town known for spring-break revelers, Miami, was only No. 33 on a list of 35 cities.

Well, perhaps it was the way in which the rankings were created in the first place. Given the amount of alcohol that flows in Las Vegas, couldn’t that fact alone be a clue that the results are erroneous? Saying people drink more in Providence, Rhode Island or Columbus, Ohio than in Vegas isn’t just “surprising,” it’s downright fiction. It could only come out that way if you design the survey to have little or no basis in reality.

So given how obviously absurd this all is, you have to wonder why an outfit like Forbes would put its name on something like this and publish it at all. It’s not exactly obvious what they’re up to. But if you look closely at the other items in Forbes’ “The Business of Nightlife,” of which America’s Drunkest Cities is just one part, there’s a link to an article entitled Cutting Alcohol’s Cost. This article is about the costs that people drinking — not even necessarily on the job — brings to businesses in increased health care and lower productivity. I should have guessed it would return, as things tend to do, to money. And their assertions that people who abuse alcohol do cause those problems may even be correct, but they completely ignore any factors that might cause their workers to drink, as if people generally make conscious choices to become alcoholics. And while there may be a few who are genetically predisposed to drink too much, I’m willing to bet that the stress of their jobs made as many or more drink too much as any other factor.

A study by the George Washington University Medical Center examined the incidence of “problem drinkers” (whatever that means) by different industries broadly defined and found that in the general population for every thousand people, an average of 91 are problem drinkers. The industries with higher than average problem drinking included:

  1. Construction and Mining 135
  2. Wholesale 115
  3. Retail 114
  4. Leisure and Hospitality 109
  5. Repair and Business Services 106
  6. Agriculture 106
  7. Transportation and Utilities 96

At the bottom of the list was professionals with only 54 in every 1,000. But notice the jobs most associated with drinking are also the ones with the highest stress, the lowest wages and/or the lowest respect. Professionals have unquestionably the highest income among the list and so it’s not terribly surprising that the have fewer problems with drinking. But Forbes knows its readers and so is more interested in how to get more productivity out of low-level employees by getting them to stop drinking than addressing the root causes of that drinking. They could just as reasonably suggested that to avoid drinking problems employers should pay them better, treat them with more respect and not put so much pressure on them that severe stress is produced. But sympathy for labor has rarely been considered by big business.

Curiously, but perhaps not surprisingly, big business was generally very supportive of the first temperance movements that agitated for prohibition in the late 1800s and into the early part of the last century. The industrial revolution had recently changed the business landscape and with workers using so many more machines, business owners looked for ways to keep their employees sober. Of course, making the machines safer, having shorter work hours or better working conditions overall might also have been beneficial to the workers, but it would have cost the business owners profits. Better they try to change the workers habits both on the job and more intrusively off the job. So many businesses gave money to support temperance groups and helped usher in a climate where prohibition was possible, all in the name of commerce. Breweries saw it all coming, of course, and tried to counteract the temperance movement with moderation PR campaigns and ads that focused on the tradition and heritage of beer. But it was too little, too late, and Prohibition decimated the industry and probably led to the Great Depression.

Then as now, business didn’t care about why their workers drank. That might focus attention on their own actions and it does nothing for the bottom line. Labor unions were created because so many were treated so unfairly for so long. If it weren’t for labor unions, we’d all still be working six or even seven days a week, far more than 8 hours a day and have far less safe working environments. All of these and more happened because workers fought to improve their lives and business fought these innovations every step of the way.

From the Forbes article:

Each year, alcohol abuse costs the United States an estimated $185 billion, according to the National Institute on Alcohol Abuse and Alcoholism. But only $26 billion, 14% of the total, comes from direct medical costs or treating alcoholics. Almost half, a whopping $88 billion, comes from lost productivity — a combination of all those hangovers that keep us out of work on Monday mornings, as well as other alcohol-related diseases. People who drink too much and too often are at greater risk for diabetes and several kinds of cancer, according to some studies.

“Alcohol is a worthless drug that affects every single cell in your body,” says Harris Stratyner, director of addiction recovery services at Mount Sinai Medical Center. Even hair transplants can fail because of the damage, he says.

“A worthless drug”? I know millions of people who might take issue with that statement. Anything and everything has the capacity to be abused. You could overdose on aspirin. That doesn’t make it a worthless drug, does it? People drink for many different reasons, of course, but certainly its popularity comes at least partly from the temporary positive effects alcohol has on the body. It allows one to relax, feel a little bit less stress for a period of time, give a feeling of euphoria. That some people might crave that feeling more often than others is directly proportional to how they feel about the rest of their lives. If you have a crappy job, a bad love life, etc. you might reasonably seek ways to feel better, and that might include alcohol. To ignore this, and other reasons why people might drink too much, in addressing alcohol’s impact on society is to overlook one of the most important aspects of the problem.

This series of stories by Forbes, and especially this last one addressing the relationship between worker productivity and alcohol, is startlingly reminiscent of big businesses’ support for prohibition groups over a century ago. And like the Anti-Saloon League, American Temperance Society and the Prohibition Party (among many others) the neo-prohibitionist groups of today are gaining power, especially political power. If business is truly once again supporting neo-prohibitionist causes to increase worker productivity, then we may be in for some dark days ahead. Today’s politics, of course, is very closely aligned with business interests so it doesn’t seem too far a leap to suggest that the conditions are once again repeating themselves in such a way that the possibility of another prohibition doesn’t seem as far-fetched as might have even a decade ago. That news alone might drive me to have another drink.

Filed Under: Editorial, News Tagged With: Mainstream Coverage, National

A Little California Brewing History

August 24, 2006 By Jay Brooks

Yesterday I took the kids to the California State Railroad Museum, which is in Sacramento. My son Porter is obsessed with trains and he’d been wanting to go there since he’d seen it in one of the many train videos he watches over and over again. We had lunch in a converted train depot across the street from the museum in a part of town known as Old Sacramento. It too, was a little slice of history, and had some very interesting old beer bottles on some shelves behind the counter.

  1. The first one is from the Swan Brewery, Brewers & Bottlers, which operated in San Francisco for a very short time, from 1878-1880, on 15th and Dolores Streets. It had a cork top with a wire loop, similar to a Champagne bottle an the two examples they had both still had liquid in them.
  2. Next is Buffalo Brand Lager Beer from the Buffalo Brewing Co. in Sacramento. The Buffalo Brewery lasted a bit longer, and was in business from 1890 until finally closing in 1949. It was located between 21st and 22nd Streets, but had three different new owners beginning in 1897, when it became part of Sacramento Brewing Co. (which itself was known by several names from 1859-1920). After prohibition, it reopened in 1934 and apparently was independent again but then was taken over once more by Grace Brothers Brewing Co. of Santa Rosa in 1942. The 11 oz. bottle was already empty.
  3. This last bottle is more part of the brewery industry’s recent past but I can’t actually ever recall having seen this bottle of Pete’s before. According to the neck label, it was brewed by August Schell Brewery, which is still in business in Minnesota. Perhaps Pete himself can step in and let us know more about this one.

Of course, I wasn’t expecting a history lesson yesterday, but you never know when something beer-related and interesting is going to present itself.

Filed Under: Just For Fun Tagged With: California, Northern California, San Francisco

Grupo Modelo to Distribute Tsingtao in Mexico

August 22, 2006 By Jay Brooks

Grupo Modelo, the Mexican brewer who is most famous for making Corona, announced late last week that by the end of the year they will distribute the Chinese beer Tsingtao exclusively throughout Mexico.

Curiously, Anheuser-Busch, who owns half of Modelo (though I understand it’s non-voting stock) also has a 27% stake in the Tsingtao Brewery. With a 13% share of the Chinese beer market, they are the largest brewery there among something like 400 breweries. Yanjing Beer is second and CRE Beer is number three. Less than a decade ago there were over 800 Chinese companies brewing beer, but increasing consolidation has led to the top ten breweries now accounting for 53% of the market vs. 22% in 1996.

The modern beer industry in China began in the 1950s when new facilities were built in most major cities throughout the country. But it wasn’t until the 1970s that true growth started and — due at least in part to its vast population — by 2002 China became the world’s largest beer producer, displacing us at the top spot. The beer industry itself is similar to our own 50-to-100 years ago, with most being regional or local, with few national brands. Partly that’s due to China’s size and partly to its economic system at the time. With changes to the Chinese economy, more nationally recognizable brands are having a greater impact today much in the same way things progressed in the U.S. after World War II, though things are definitely moving more quickly.

Part of that growth is fueled by the the influx of large western beer companies, who began investing in China’s beer market beginning in the 1980s. After several missteps, a second wave of investors started in the early part of this decade and so far has been more successful. Instead of importing unfamiliar brands into China, western breweries are instead buying minority shares in existing local and regional breweries already established there. In the last few years breweries such as Anheuser-Busch, Carlsberg, Heineken, InBev and SABMiller have all made investments in Chinese beer.

Previously the market had been price-driven but a growing economy is leading to greater demand for premium brands, much like what the U.S. is experiencing right now, as well.

Tsingtao was founded in 1903 by German settlers in Qingdao and first began importing its beer to the United States in 1972. In 1996 there were four Tsingtao breweries, but today they operate 48 in China. Tsingtao beer is now sold in more than 50 countries worldwide.

Grupo Modelo, whose headquarters are in Mexico City, exports brands including Corona products, Estrella, Leon Negra, Modelo Especial, Pacifico, Negra Modelo and other beer brands to 150 countries. It is also the exclusive importer and distributor of Anheuser-Busch’s products in Mexico.

Filed Under: News Tagged With: Asia, Business, International

Denver Beer Dinner Announced

August 22, 2006 By Jay Brooks

Great Divide Brewing, Oskar Blues Brewery and Duo Restaurant, have an announced two beer dinners to be held at the restaurant in Denver, Colorado on Wednesday, September 13, the first at 6:30 p.m. and the second at 8:30 p.m. The dinner will be four courses paired with 4 Colorado beers. The cost is $35 per person. For reservations, call 303.477.4141

From the press release:

Colorado has some of the best beers in the world so let’s drink them! Great Divide Brewing Company is teaming up with Duo Restaurant and Oskar Blues Brewery to offer a fun & delicious evening. Enjoy a four course specially created menu paired with four different beers. Meet the brewers and learn how to pair fantastic food with great beer. This evening is sure to be full of fun, laughter, and plenty of little brewery give aways so bring a crowd or have a fun date night.

9.13

Denver Beer Dinner

Duo Restaurant, 2413 West 32nd Avenue, Denver, Colorado
303.477.4141 [ website ]

Filed Under: Food & Beer Tagged With: Announcements, Colorado, Press Release

The Budweiser Film Studio?

August 22, 2006 By Jay Brooks

According to Advertising Age — and they should know — Anhesuer-Busch is creating a new film and TV production division within the company to create original content. Initially at least the new programs will be primarily “humorous shorts and sitcom-type programs to be broadcast over the Internet and to cellphones, according to four people familiar with the matter, and could branch into full-length films.”

They’re also reporting that this venture will draw from A-B’s $1.56 billion marketing budget and will be to date its “most ambitious by far.” Several years ago A-B tried “Bud TV” but nothing much came of its single effort. A-B did its first product placement deal in Wedding Crashers last year and it was apparently a big success, leading to other Hollywood alliances. That experience was undoubtedly the impetus to take things even further but also to keep creative control.

Critics hope the venture will distract them from their core business but that doesn’t seem likely. A-B is too big with too many resources for that to be a reasonably probable outcome. I can’t help but wonder what the upcoming film Beerfest would look like if it was a Budweiser film?

Filed Under: News Tagged With: Business, National

Craft Beer Up 11% for First Half of 2006!

August 21, 2006 By Jay Brooks

It’s been exactly ten years since the craft beer industry has seen double-digit growth. Back in the heady days of 1996 it seemed like a new brewery was opening every week. But that came to a screeching halt and things calmed down, the media turned its attention to the next big thing, and brewers got on with the job of making great beer.

Then a curious thing happened several years ago. Slowly but surely the craft beer numbers began to rise. Slowly at first, but more importantly it was happening consistently year after year. Now more great news today. So far in the first half of this year, craft beer sold looks to be 11% over the same period last year.

Said Paul Gatza, Director of the Brewers Association professional division, in a press release today. “The rate of growth in the craft beer segment appears to be accelerating. This is the third straight year we’ve seen an increase in the craft beer growth rate.”

Also from the press release:

The current surge in growth comes on top of strong performance by the nation‚s small, independent and traditional brewers over the last two years. In 2004, the volume of craft beer sold increased by 7 percent and in 2005 it rose by 9 percent.

“This growth represents strong performance by established craft brewers over several years,” said Ray Daniels, Director of Craft Beer Marketing for the Brewers Association. “Unlike the early days of our industry, newly founded breweries do not add significantly to industry-wide production.”

“The current trend in craft beer sales increases demonstrates a growing consumer preference for the diverse and flavorful beers made by craft brewers,” said Gatza.

Now that puts a smile on my face.

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

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