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Boscos Opens Production Brewery

January 25, 2008 By Jay Brooks

Boscos, the small brewpub chain with locations in Tennessee and Arkansas, has completed work on their new production brewery in Memphis. The first batch of beer was brewed December 31 of last year by my friend Chuck Skypeck, who also sent along a few photos of the new facility. If you’re like me, you can’t get enough pictures of brewing equipment.

The outside of Boscos new production brewery, where the headquarters were moved about a year ago. The building itself is curved to follow the distinctive path of the road in a part of Memphis south of downtown currently going through a resurgence. It used to be a meat packaging plant with some elements they needed already in place and the rest they remodeled, keeping a number of the retro industrial architectural elements intact, like green tiled walls and chrome swinging doors.

Head brewer Mike Campbell, formerly with Tractor Brewing in Albuquerque, New Mexico, who’s been on hand to help build the brewery since the beginning.

The production brewery will be used primarily for off-premise sales of growlers and kegs, which is not permitted from their brewpubs under Tennessee law, and also to provide beer for additional Boscos that will not have their own breweries. The first of these, in Cool Springs, Tennessee (south of Nashville), is slated to open this spring. They’ll also begin distributing their beer to a select number of area restaurants.

 

Filed Under: News Tagged With: Brewing Equipment, Business, Photo Gallery, Southern States

Carlsberg and Heineken Buy Scottish & Newcastle

January 25, 2008 By Jay Brooks

It looks like the brewing brouhaha involving several large multi-national beer companies that I wrote about last week is going to be resolved more quickly then anybody had anticipated. The Carlsberg Group and Heineken today agreed to a $15.3 billion buyout of Scottish & Newcastle. The deal is structured such that Carlsberg will get sole ownership of BBH (Baltic Beverages Holding), giving them access to the lucrative Russian beer market, and will also receive S&N’s markets in China, France and Greece. Heineken will gain control of S&N’s markets in Great Britain, India, the United States and a few others. Business experts don’t seem to think there will a problem in getting the deal approved or with any counter-offers.

 
Note: Portfolio’s online website has a good overview of this story, too.

 

Filed Under: News Tagged With: Business, Europe, Great Britain, International

The Jaguar from Patagonia

January 16, 2008 By Jay Brooks

If you’re like me, when you think of beer from Argentina you think of Quilmes. It’s been the best-selling brand for decades and since being acquired by InBev, has been imported to over a dozen countries, including the United States. But there are actually over forty breweries in Argentina.

Another one of them, Patagonia, announced today they will be importing their beer into the U.S. through Aladdin Beverage. They already received label aproval and the first shipments should hit the docks of New York sometime in May.

From the press release:

Brewed and bottled in the oldest Brewery in Argentina (est. 1884), Patagonia represents the exact type of brand which Aladdin looks for. “Patagonia is a wonderful tasting Blond Ale. I love Blond Ales, so I have a bias towards them, but this is truly one of the best Blonds I have tasted. So much so that we have entered Patagonia into the 2008 World Beer Cup and I think we have a good chance of winning,” states Ted O’Connor, President of Aladdin Beverage.

Patagonia prides itself on being brewed with only all natural ingredients. In fact they go one step further and adhere to an old law dictated by Bavarian Duke William IV, which stated, beer is only considered premium if it is brewed with pure malted barley, hops, yeast, and water. That is it!

Curious about that odd-looking label? I was, and here’s the answer. Patagonia’s logo is a stylized representation of the jaguar. Apparently, jaguars were common in Patagonia (roughly the southern third of South America) until the 19th century, when they were hunted to near extinction by European explorers and settlers. To the native population, jaguars were sacred as a symbol of power and in some circles even considered a god. They were often important in local religions and were also associated with Courage, fertility, intelligence and magic.

The Jaguar is one of the four “big cats,” and the largest in the Western Hemisphere. The others include leopards, lions and tigers, oh my.

The Patagonia Jaguar.

Filed Under: Beers Tagged With: Business, International, Press Release

Punishing Drinkers With Taxes

January 15, 2008 By Jay Brooks

The Marin Institute, one of the more blunt and churlish of the anti-alcohol organizations, is mounting an offensive to raise alcohol taxes an incredible “25 cents per drink” in California. Their vision — my nightmare — is to bring about “communities free of the alcohol industry’s negative influence and an alcohol industry that does not harm the public’s health.” But as they naturally see any influence as negative and everything that the alcohol industry does as harmful, what they really want is nothing short of an another Prohibition.

Throughout their rhetoric (and even the sources they’re relying upon) is a call for “fairness” and for alcohol to pay its “fair share,” whatever that really means. But the carrot they’re holding out is that by doing so it would help to alleviate California’s budget deficit that’s been plaguing us for several years now. But I fail to see how raising the taxes of people who drink is in any way fair. Effectively what they’re suggesting is that because our state managed to get itself in a fix, budget-wise, people who drink should be called upon to foot the bill. They just want to punish those of us who choose to drink, and yet they call it fair? The first definition (of 26) for the word “fair” is “free from bias, dishonesty, or injustice.” There’s clearly bias, it’s dishonest in my opinion to claim it’s because of our state’s tax problems, and it hardly seems just to have drinkers pay a disproportionate share to get us out of our budget hole. So it’s really the very opposite of fair.

This is the same nonsense that’s going on with Indian gaming right now, with several state proposals on November’s ballot. We committed genocide against Native Americans and broke every single treaty we ever made. So when Indian gaming successfully exploited one of the few advantages left to them, we still can’t seem to let them be. This is the second time California politicians have tried to get (or more accurately extort) a bigger piece of their gambling revenues, and the exponents of these propositions try to sell them in the same way as the Marin Institute is doing with beer taxes, by twisting the idea of “fairness.”

Of course, the real reason they can say with a straight face that it’s fair to ask drinkers to pay more taxes than teetotalers is this odd notion that, in the words of David Leonhardt, “taxes serve a purpose beyond merely raising general government revenue. Taxes on a given activity are also supposed to pay the costs that activity imposes on society.” I’m not necessarily against this idea entirely, but I don’t understand when it became an unquestionable fait accompli and why people are so quick to believe it. Why is this only ever said of things that some people don’t like? The costs on society for our general obesity and unhealthiness has not brought about taxes on fast food, sugar or high fructose corn syrup. Hummers, SUVs and other similar gas-guzzling vehicles not only are not taxed at a higher rate but actually receive federal and state tax breaks and incentives and have lower standards of fuel efficiency than regular cars. With their poor MPG they do great harm to our society yet are actively subsidized and encouraged by our government over cars that get more miles per gallon and are kinder to the planet. Check out this Slate article for more on this. I’m not saying that’s as it should be, simply that this idea that all products must contain within their profit structure some tax scheme that balances the price with their damage to society caused by them is wholly fallacious.

But even if it wasn’t such a weak argument, we don’t charge a higher percentage of a person’s tax burden for the fire department if they live in a tinderbox house vs. an inflammable brick home. Instead we average the cost to society out and charge everyone the same amount since everyone gets the same potential benefit. That’s a fair arrangement in every sense of the word. It’s good for the whole town, not just for you, if your house does not burn down. So there’s really no reason why we can’t apply that same logic to the whole of society. I realize that will be unpopular with folks who don’t think it’s fair that while they choose to abstain, they may have to pay for problems supposedly caused my decision to drink. But if it’s legal for everyone who pays taxes (except, those 18-20 years old — hey, another reason they should be allowed) to drink then I don’t see why it’s so troubling that we all share the costs of society equally. You may think it’s unfair because you feel you’re not causing the (hypothetical) problem. Well I think you’re being selfish by only wanting to pay for services that that either benefit you or were caused by you. In a sense, it’s like after building your inflammable brick house you refuse to pay to support the fire department any longer under the theory that your house is in order.

Maybe it’s just me, but I don’t want to live in a world where everyone is so selfish that they don’t want to help other people. Look at this another way. The vast majority of drinkers do so in moderation and never are any burden to society whatsoever. But a tiny percentage of drinkers do cause problems for themselves and others. There are at least two ways we can shape policy to deal with problem drinkers. We can treat the causes of the problems and make tougher laws to deal with them, and only them. Or we can make it harder on everybody’s ability to drink, thus punishing everybody for the sins of the few. It’s not too difficult to figure out which approach the neo-prohibitionists have chosen. Even if only one in every ten-thousand persons who drink may exact a cost on society they would prefer to punish the other 9,999, too.

Another one of the contentions is that the last time California raised taxes on alcohol was 1992. That increase was apparently one cent on a glass of wine and two pennies for a bottle or can of beer and one shot of hard liquor. So clearly a 25-cent increase seems reasonable?!? Maybe sixteen years is too long without an increase, I’m not going to argue that point. But even if the tax had been raised another penny every year, the tax would still only be 16 cents higher today, so please tell me how 25 cents is a fair suggestion? Or are they just shooting for the moon in the hopes of a negotiation that ends up compromising higher as a result?

And if it’s tax fairness they’re after, taxes of corporations have fallen much more dramatically over the past several decades. They haven’t just stagnated and gone down merely by adjusting for inflation, but have actively been lowered. At the same time, personal taxes on the poor and middle-class have gone up while tax cuts for the rich keep increasing. So if the Marin Institute really cares about California’s budget crisis, I think a more prudent approach might be trying to raise corporate taxes across the board and removing unfair tax cuts and loopholes for the wealthiest among us. It wasn’t alcohol that got us into this mess, so why make it foot the bill.

One of the main sources that the Marin Institute cites for their proposal is Let’s Raise a Glass to Fairness, a polemic about why the author, David Leonhardt, believes federal alcohol taxes should be raised. Some of the supposed alcohol-related costs to society he cites are the following:

  1. child abuse
  2. drunken-driving checkpoints
  3. economic loss caused by death and injury
  4. hospital bills for alcohol-related accidents

So let’s look at those claims.

1. Child Abuse: This one’s a head-scratcher for me. Sure it sounds bad, but what does it really mean? I was terrorized as a child by an alcoholic, psychotic step-father but even as a kid I knew it wasn’t the alcohol that caused him to be that way. There were myriad things in his life that made my step-father such a mess, and alcohol was the least of them. At its worst it was merely a convenient catalyst. If alcohol had been removed from the situation, something else would have filled the void. I can’t see how alcohol causes child abuse any more than cake is directly responsible for obesity.

2. Drunken-Driving Checkpoints: If these are such a burden to our nation’s purse strings, then by all means stop them. They’re already an invasion of civil liberties because they randomly presume guilt of everyone behind the wheel of a vehicle. But saying these are a cost of alcohol seems weird to me. The fact is that police forces choose to do them, they aren’t mandatory, and they’re more often done because of politics or pressure from local neo-prohibitionist groups. So they aren’t caused by alcohol, they’re caused by people against alcohol. There are plenty of legitimate ways for the police to do their job in keeping potentially dangerous drivers off the road that don’t involve these checkpoints.

3. Economic Loss Caused by Death and Injury: Now I certainly don’t want to downplay or make light of anyone’s loss or injury, but the alcohol didn’t cause either. The idiot person who drank too much or otherwise couldn’t control himself is responsible for a death or injury that resulted from his actions. And he should be punished to the full extent of the law. But don’t punish me or my right to drink moderately because some yahoo couldn’t act responsibly.

4. Hospital Bills for Alcohol-related Accidents: This is the same as the last one, it’s economic harm inflicted by a person and we should be blaming the individual person. People scoff at the Twinkie defense, saying it’s ridiculous that too much sugar might cause a person to commit a crime, but here Leonhardt is saying effectively the same thing.

He also throws around a lot of statistics about how many people die each year in “alcohol-related car accidents” along with “other accidents, assaults or illnesses in which alcohol plays a major role.” But as we learn time and time again, the way “alcohol-related” is defined is usually pretty deceptive. Many such studies have considered an accident “alcohol-related” if one of the passengers had earlier been drinking so it’s pretty hard to take such stats very seriously. Do people die from causes related to alcohol? I’m sure they do. But the number one cause of death: living. What I mean by that is every single thing we do every single moment has some risk associated with it. It’s a fool’s errand to dissect every thing we humans do and determine which ones to tax more heavily.

Leonhardt likens his strategy to the same argument for higher tobacco taxes, saying for alcohol the impetus “is even stronger” with this gem. “Tobacco kills many more people than alcohol, but it mainly kills those who use the product.” Did I miss a meeting? Isn’t one of the strongest reasons for all the recent tobacco bans that second-hand smoke is far more dangerous to people around smokers than previously believed?

He then goes on to say. “Many alcohol victims are simply driving on the wrong road at the wrong time.” And that may be true, and it is certainly tragic, but why then is it fair that I should pay more for my beer because of other drunk drivers, especially if I and millions of other responsible drinkers don’t place anyone else at risk. If the argument for fairness is that all alcohol drinkers should pay more for their beer because of the costs that alcohol exacts on society, how then does that same logic explain why this burden is so unfairly placed on all drinkers and not just the problem drinkers? Isn’t that just a teensy-weensy bit hypocritical?

Leonhardt later admits, or at least accepts, that there are plenty of responsible drinkers around and even quotes Jeff Becker, President of the Beer Institute. “Most people — the vast majority of consumers — don’t impose any additional costs on anyone.” But in the end he concludes that since he can’t figure out a way to “tax only those people who were going to drive drunk in the future” then it’s somehow fairer to just tax everybody who drinks. Yeah, that makes sense. No wonder the Marin Institute loves this guy.

But another flaw in this theory is that raising taxes on alcohol will raise an additional $3 billion in tax revenue to help with California’s $14 billion current deficit. One of the major prongs of the Marin Institutes’s plan is that by raising the price of beer, drinking will be curtailed once again. If people are drinking less, then how will that result in more tax revenues? If this proposal was really about solving California’s budget crisis, wouldn’t it make more sense to raise alcohol taxes and then actively encourage drinking to help raise more money to apply to the deficit? But this never really was about taxes or California’s budget crisis. It was always about keeping people from drinking or at least making it harder for them to do so. But not enough people were apparently getting their message and were — gasp — still enjoying a drink now and again. So instead they dressed this proposal up as a panacea for our state’s budget crisis hoping that people might respond more favorably to that gambit. Don’t you believe it.

Look, we have the highest federal budget deficit in history and many states, including my own, have similarly terrible fiscal situations that they’re facing. But no matter how much junk science you throw at this problem, alcohol did not cause our current situation. As a result, trying to raise more taxes by arguing that it would be fairer for the nation’s alcohol drinkers to help pick up the tab is just ludicrous. Perhaps taxes should be higher across the board to get us out of this deficit and that might include alcohol taxes, too. But politicians don’t like to raise taxes generally because people tend to vote out of office any politician who tries to do so, no matter how vital they might be in paying for our infrastructure and making our society work for everyone. So we keep electing fiscal conservatives who slash and burn social programs. And then we wonder why there’s no unemployment available when we get laid off so that the factory we used to work for can relocate overseas and chain ten-year old girls to a sewing machine to slave away for twelve-hour days, seven days-a-week for peanuts just so we can be spared the injustice of paying a few cents more for some crap we don’t really need at Wal-Mart. Let’s not change that situation, let’s blame alcohol instead. Raise a glass to fairness, indeed. I’ll buy the first round.

 

Filed Under: Editorial, Politics & Law Tagged With: Business, California, Law, Press Release, Prohibitionists, Statistics

Solar Arrays Coming to Sierra Nevada

January 14, 2008 By Jay Brooks

ecology
According to Renewable Energy Access, an online newsletter focusing on renewable energy, Sierra Nevada Brewing “has commissioned the first phase of what will be one of the country’s largest private solar installations. This commissioning comes on the heels of the installation of four 250-kilowatt co-generation fuel cell power units, also one of the largest fuel cell installations in the United States.”

They already produce some of their own energy with their 1-MW fuel cell plant. With the addition of this new project, which should be completed some time later this year, they will be close to owner Ken Grossman’s stated “goal of providing 100% of our energy needs with clean on-site alternative energy generation.”

Filed Under: News Tagged With: Business, California, Northern California

Stratemagizing A-B Advertising for ’08

January 14, 2008 By Jay Brooks

“Offensive in a good way” is how Tony Ponturo, vice-president of global media, sports and entertainment marketing for Anheuser-Busch, sees their strategy for advertising and marketing in 2008. By that he means they “can’t just be defensive in buying assets.” Although I’m pretty sure that’s exactly what every big beer company did once sponsorship of events, leagues, teams, etc. proved a lucrative way to get one’s brand name out there. So welcome to the new model? Doubtful, reading the Brandweek article on A-B’s marketing and advertising plans for 2008, I’m not exactly bowled over by novelty and a fresh approach.

At least we’ll see less new products this year. Of course, it would be hard to match the “80 new products and line extensions” of 2007. Executive V-P Bob Lachky, claiming A-B has “become smarter marketers,” listed only a few of the new product rollouts for this year.

  • Chelada (Bud-plus-Clamato)
  • LandShark Lager
  • Michelob fruit-flavored extensions
  • Shock Top (a Belgian white ale)
  • Wild Blue (a blueberry-flavored beer)

Hmm, none of those sound particularly promising, and I think I’ve already tried at least a couple of them (meaning only that they can’t be altogether new). And I love this bit of ad-speak.

But beer still has plenty of untapped white space, said Marlene Coulis, vp-consumer insights and innovations. Brews coming this year will likely be flavor extensions of existing brands.

“Untapped white space,” now there’s a phrase for you. I’ll be sure to work that into my lexicon this year somehow. It’s just too deliciously jargon-esque not to.

More from the Brandweek piece:

Call it a spin, but A-B is shedding its reliance on growth through distribution and pure image marketing that targets 21-27-year-old males. It has to. Bud and Bud Light have more than 90% distribution in big markets. To grow, A-B has to keep its core drinkers and attract “explorers”—people who seek variety in beverages. A-B also needs new products to win drinkers who reject the existing lineup.

To woo the uninitiated, A-B launched “the great American lager,” from DDB, New York [an ad agency —J], during January bowl games rather than wait for the Super Bowl. The Bud campaign cites product attributes like beechwood aging and seven-step brewing. [Those must be the embarrassing Rob Riggle (from the Daily Show) spots that I’ve been seeing. —J]

“The explorer group has never been talked to like this,” said Keith Levy, vp-brand management. “If we can reach them about what Bud stands for, we can grow.”

Still, the category’s penchant for advertising image in a bottle is not dead. “Image with a reason for being is powerful,” said Lachky. “We’re talking about the product more, and we understand better what the consumer needs are today. Image-only ads and attack ads are only sufficient within the category because our category is competing with wine and liquor.”

That’s why the advertising spend for Bud and Bud Light will increase by $70 million in 2008; cable and digital buys will at least double. Media spend for both brands was $219 million January-October 2007, per Nielsen Monitor-Plus. A-B will also seek more “cross platform” opportunities, as with the “Dude” campaign, which began online around Thanksgiving before jumping to TV a few weeks later.

Does any of that sound very different from what they’ve been doing for years and years? Not to me, and also not to Jim Morris who writes a consumer advertising blog, Advertising for Peanuts, who said in a recent post titled Beating Dead Clydesdales:

The recent history of Budweiser is strewn with carnage left in the wake of their fatal inability to leave a one-shot alone—frogs, whassupers, and now the eternal parade of the dude-utterers. Even when this brand does come across an idea with legs, they spot an ant and imagine a millipede, as has been the case with their long ago worn out “Real men of genius” radio campaign.

I realize that a good beer advertising idea is a rare and precious thing, seldom seen in these parts, but isn’t that all the more reason to nurture and protect it and respect its boundaries, rather than exploiting, devaluing and demeaning it until any memory of its original brilliance is eclipsed by the slagheap of its strained successors?

With the Super Bowl around the corner (Go Packers!), and the writer’s strike still going, advertisers are ponying up record amounts for 30-second spots during the big game. Prices this year are 15% more expensive than last year, as compared to being only 4% higher last year over the previous Super Bowl. A-B has reportedly bought 10 spots for its various brands. Let’s see how many of those are different from the usual fare.

 

Filed Under: Beers, Editorial Tagged With: Business, National

St. James Gate For Sale?

January 13, 2008 By Jay Brooks

Back in October of last year, I got slapped around quite a bit when I suggested that Guinness had closed St. James Gate already, as I heard the rumor quite some time before that it was in the works and had sort of figured that the deed had been done. Turns out I was wrong, but not as wrong as some of my critics supposed. I was just ahead of my time. A friend returned recently from Dublin (thanks Chris) and sent me this article from the Irish Independent entitled Last Orders for Brewery as Sale Looms.

The article begins:

The closure of the iconic Guinness brewery at St James’s Gate in Dublin could be one step closer after drinks giant Diageo appointed three sets of consultants to oversee the sale of the prestigious Dublin site. The move away from the city centre could net Diageo a windfall of up to €3bn for the 56-acre plot.

In an effort to keep this from happening, city councilors passed a motion trying to make sure that by law there must be a brewery at the current location. It is believed that “this could restrict future development at the site, thereby reducing its market value.” So it appears that even the City of Dublin is trying to keep Diageo from closing down the nearly 250-year old Guinness brewery at St. James Gate. But if I had to guess, as an international conglomerate, I imagine Diageo will figure out a way around such a small obstacle as that if they really want to unload it.

 

 

Filed Under: Uncategorized Tagged With: Business, Europe, History, International

Alphabet Soup: A-B Enters the Fray Between S&N and CG for BBH

January 13, 2008 By Jay Brooks

This is a story that’s really been going on for some time now, at least a year, probably more. In a nutshell, the BBH (or Baltic Beverages Holding) was created in 1991 by a 50/50 joint venture between Oy Hartwall (a Finnish brewing group) and Procordia Beverages, best known for Pripps (then a Swedish company). The plan was to acquire breweries in the lucrative areas of Russia and the Baltic. And little by little, they did just that. But in 1995, another Swedish company, Orkla, bought Pripps an created a new company, Pripp-Ringnes, only to then merge with Carlsberg in 2000. As a result, the Carlsberg Group became a 50% owner of BBH. Two years later, Scottish & Newcastle bought Hartwell and that’s how we got to today, with BBH being a 50/50 joint venture between Carlsberg and S&N. In the meantime, BBH became the owner of 19 breweries in Russia, Kazakhstan, the Ukraine, Uzbekistan and the Baltics (Estonia, Latvia and Lithuania) which gives them a commanding share of the market, nearly 40% of the fifth largest — and possibly fastest growing — beer economy in the world. Not surprisingly, the predatory nature of corporations generally means that other companies have developed in interest in BBH.

Lately things have heated up with potential take-over bids. The main players have been primarily the Carlsberg Group and Heineken, both of whom have attempted hostile takeover bids to wrest control of BBH from S&N. The negotiations have been very public and quite contentious with accusations of bad faith and underhanded dealings flying around so fast and furious it’s like a blizzard. I’ve been following it somewhat casually but haven’t written about it before now. What’s changed? Today the London Telegraph is reporting that Anheuser-Busch is considering “a potential £4.6bn bid for full control of BBH.”

From the Telegraph article:

S&N already owns 50 per cent of BBH alongside Carlsberg. But the Edinburgh-based brewer is preparing a bid for full control of BBH as part of its defence against Carlsberg, which is plotting its own £10bn takeover bid for S&N as part of a consortium with Heineken.

S&N’s plan would be to finance a bid for BBH by offering a 25 per cent stake to a minority partner.

Anheuser-Busch has long coveted a place in the rapidly expanding Russian beer market and replacing Carlsberg in a new joint venture with S&N would offer it part ownership of the country’s leading brewer.

I was pretty sure A-B had a long-standing relationship with Carlsberg. They definitely used to distribute Carlsberg and their Elephant Malt here in the U.S. It’s interesting to see how quickly any loyalty they might otherwise have felt to Carlsberg over their years of business together goes out the window when the dollar signs twinkle in their eyes. This whole scenario reminds me of your average Godzilla movie where the giant lumbering monsters of business do battle with each other while at the same time stomping on and smashing to bits the very world in which they, too, live. Whatever happens to those flattened buildings (and people) destroyed in their wake are somebody else’s problem, they’re simply externalities. We’re merely the frightened tiny ants of people who can do nothing except watch as they destroy our city.

Rhetoric aside, it will certainly be interesting now to see how this plays out. I know Heineken desperately wants a bigger piece of the Russia beer pie. That’s specifically the reason they bought Krusovice from the Radeburger Group last year. As for A-B’s interest, with slowing sales of domestic beer, I can only imagine they’d love a quick fix like this.

 

Filed Under: Editorial, News Tagged With: Business, Europe, History, International

Coast Range Closed?

January 10, 2008 By Jay Brooks

coastrange
I heard a rumor today from a fairly reliable source that Coast Range Brewing in Gilroy, California has closed their doors for good. My understanding is that they’re a Chapter 11 Reorganization Bankruptcy and are actively looking for a buyer.

I’m sorry to say that’s it’s not a huge surprise as they’ve been having financial difficulties … well, for a very long time now. For several years at least they’ve managed to stay afloat due mainly to doing contract beers for a variety of clients, having picked up quite a lot of new business when Golden Pacific Brewing was sold to Gambrinus a few years back. Before that they picked up a tidy sum from a French brewery by selling them the U.S. rights to the name Desperado, which had been the name of their Pale Ale, so that the tequila flavored French Desperado beer could try to take over the American beer market during those thirty seconds when tequila flavored beers were the “in” thing — A-B’s Tequiza, which they still make, managed to own the category.

Coast Range’s passing, though, is quite a shame as I thought brewer Peter Licht was quite talented. Back when fruit beers were more popular, he made a Blackberry Wheat that I thoroughly enjoyed. And he did several fine contract brews for me when I was the beer buyer at BevMo, too. The only reason they never seemed to reach very far beyond their own backyard had more to do with distributor networks, retailers and some poor management decisions than bad product. I will mourn their passing tonight with one of their Farmhouse beers, a new label they debuted two years ago.

Filed Under: Breweries, News Tagged With: Bay Area, Business, California, Northern California

Beer Without Borders?

January 10, 2008 By Jay Brooks

There was an interesting little piece in Canada’s McGill Daily today, about their alcohol laws. I knew about them to some degree and was at least aware that beer from one province couldn’t necessarily be sold in another without a high tariff. Essentially it’s the same as if you couldn’t sell beer from Oregon in California without a ridiculously high tax that made, for example, Deschutes Black Butte Porter as expensive as Westmalle or Chimay. Naturally, it was done this way to protect local and regional businesses from outside competition but it seems weird that Canada would feel that way about their own provinces. But perhaps we just take the interstate commerce laws we have here for granted. Are the majority of other countries set up with porous state borders or are they protectionist? I’ve never really looked at that, does anybody know? I’ll be interested to hear what my Canadian friends think about this. Stephen? Alan? Greg? Anyone else?

 

Filed Under: Uncategorized Tagged With: Business, Canada, Law

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