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Jay R. Brooks on Beer

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Turning Water into Happoshu

December 10, 2006 By Jay Brooks

japan
In Japan it will cost you two to three times as much as it does in the rest of the world if you’re keen to drink a beer. That’s because the Japanese government in their infinite wisdom (why is it governments are all so dogmatically stupid in creating laws without thinking them through?) placed an onerous tax on any beer who’s weight of malt extract exceeds 67% of the fermentable ingredients. In fact, that is their definition of what beer — biiru in Japanese — is. This was done to protect the more traditional sake (or nihonshu) and, of course, it backfired.

Breweries did just what you’d expect them to do. They began making beers with less than 67% malt, using rice or other adjuncts. Suntory made the first one in 1994, called Hop’s Draft, and it contained 65% malted barley. Because it no longer fit the definition of beer, a new name was required and it has become known as happoshu, which means “sparkling alcohol.” Naturally the Japanese government saw what was happening but instead of reversing a foolish decision, changed the standard to 50%. Japanese brewers responded by lowering the malt even further so that today about 25% malt in happoshu is common. The lower malt produces more fusel alcohol that many argue leads to greater hangovers. By all accounts, it tastes awful but has been growing in popularity because it’s so much cheaper. One snarky account I read mentioned that happoshu tastes more like American beer.

Recently, around thirty students from Fuji Women’s University, a catholic school, worked with a local brewer, Yasuharu Osugi, from Nihon Ji Biiru Kobo, to develop a pink happoshu brew aimed specifically at women. In hopes of it appealing to females, they lowered the hop character and made it 4.5%, so it’s a bit weaker than most happoshu. The ingredients include a hoshinoyume, a local rice, along with the herb shiso, a pink-colored juice that gives the brew its distinctive hue. The label will feature a four-leaf clover and goes on sale today.

pink-happoshu
Students from Fuji Women’s University give their pink happoshu a taste test.

It being a catholic university, they chose the name “Cana Story,” after the place in the new testament story in which Jesus is supposed to have turned water into wine. Of course, it may be fitting. I’ve heard some credible theories that when the new testament was translated from Hebrew into Greek that they had no word for beer and thus translated the line to wine instead. Certainly beer being mostly water would make more sense, though makes it a bit less miraculous.

cana

Filed Under: Beers, News Tagged With: Asia, Business, Malt

Duvel Buys Achouffe

December 9, 2006 By Jay Brooks

This is somewhat old news, it happened about two weeks ago. But it’s been a very busy couple of week and I’m a little behind. My wife and I are buying a new house and we’re moving December 20 and I’m trying to put the finishing touches on my second novel and my third successful NaNoWriMo last month. So please forgive the next few posts if you already know this news. I’m just trying to catch up.

So brewery Duvel Moortgat, which has been around since 1871, bought the Achouffe brewery, which was started by two brothers-in-law, Pierre Gobron and Chris Bauweraerts, as a hobby in 1982. Duvel the beer was born in 1923 though it’s original name was Victory Ale. Supposedly one of the brewery workers tasting it for the first time remarked. “Da’s nen echten duvel” which translates as “Damn, that’s a devil of a beer.” The name stuck and over eighty years later it’s a world class beer.

Achouffe, on the other hand, in their two decade run have also managed to create some of the most unique, tasty beers anywhere in the world. It should be a good arrangement for both of them.

The Achouffe brewery viewed from the nearby lake.

Filed Under: News Tagged With: Belgium, Business, Europe

CNN Money Looks at Colorado Beer

December 8, 2006 By Jay Brooks

Fortune Small Business writer Christopher S. Stewart has an interesting piece on CNN Money entitled “Small Breweries, Big Beer.” In the article, he travels to Colorado for a visit with Great Divide Brewing in Denver, Oskar Blues in Lyons and finally Avery Brewing in Boulder. For the last two stops, Paul Gatza from the Brewers Association joined him. All in all, not a bad piece.

Filed Under: News Tagged With: Business, Colorado, Mainstream Coverage

Saint Arnold Takes on Texas

December 6, 2006 By Jay Brooks

Houston Brewery Saint Arnold, named for one of the patron saints of brewing, is trying to persuade the Texas legislature to change the state laws regarding the sale of beer at breweries. Under current law, breweries cannot sell packaged beer at the very place where it’s brewed and bottled.

CEO Brock Wagner said of his intentions, “if we succeed with our law change, [we’ll be] able to sell six-packs to people when they visit the brewery.” That doesn’t seem too unreasonable, but the strangeness of alcohol laws cannot be underestimated, nor can many state’s reluctance to take any progressive steps that could be interpreted as endorsing, supporting or — gasp — encouraging adults to engage in legally permissible activities. As a result of neo-prohibitionist agitation and activism, few alcohol laws have been relaxed or modernized in recent years. It will be interesting to see if Wagner and Saint Arnold can be successful.

Filed Under: Editorial, News Tagged With: Business, Law, Southern States

Costco Appeal Moved Up to March?

December 5, 2006 By Jay Brooks

Miller’s BrewBlog is reporting that the Washington State Liquor Board appeal of Judge Marsha Pechman’s ruling in favor of Costco earlier this year in the Costco Case has been moved up and will take place March 3-9, 2007. But a stay she imposed was supposed to give state lawmakers until May 1, 2007 to change Washington’s beer and wine laws through new legislation, so I don’t know what that will mean to those efforts.

I can’t find the order changing the schedule at the Ninth Circuit’s website, so I can’t confirm that’s what is happening. I have a call into the state’s Liquor Board to see if I can confirm the news from them and will update this post when I hear back from them.

Filed Under: News Tagged With: Business, Law, Washington

Anheuser-Busch to Import Corona in China

December 5, 2006 By Jay Brooks

Grupo Modelo, the makers of Corona, will be partnering with Anheuser-Busch (who owns 50% of non-voting stock in Modelo) in China. As of next month, January 2007, A-B will import Grupo Modelo beers throughout China.

Modelo also distributes Anheuser-Busch beers in Mexico and beginning shortly, will also bring Tsingtao to Mexico. Not surprisingly, A-B also owns a piece the Chinese brewer, too.

From the press release:

“This new partnership ideally complements the international strategy that Modelo has successfully implemented for several decades. We are very pleased with this association, which offers excellent long-term growth opportunities for Grupo Modelo’s brand portfolio in China, a very important market for our company,” stated Carlos Fernandez, chairman of the board of directors and chief executive officer of Grupo Modelo.

“The popularity and high quality of Corona Extra makes it an excellent complement to our Budweiser and Harbin beers,” said August A. Busch IV, president and CEO of Anheuser-Busch Cos. Inc. “Corona Extra competes in the super-premium segment of the market, which is experiencing strong growth. With our continued success in this segment, and our 10 years of sales, marketing and distribution experience, we expect to significantly increase the sales of Corona.”

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

Peak Organic Peaks With 12-Packs

December 2, 2006 By Jay Brooks

Jon Cadoux, founder of Portland, Maine’s Peak Organic Brewing announced the addition of 12-packs and kegs. Twelve-packs will be released for their Pale Ale as well as a variety pack containing four bottles of each of their three current styles: pale ale, amber ale and a nut brown ale.

From the press release:

“Peak Organic customers enjoy celebrating the great moments of life with family and friends,” said Cadoux, whose Peak Organic web site is filled with customer photos and stories. “We are responding to increased demand by offering 12-packs and draft. Peak on draft is especially popular in restaurants that are very focused on high quality ingredients.”

One of America’s very first organic beers, Peak Organic is made with the highest quality ingredients and is characterized by a distinctively refreshing taste. Peak is available in three flavors: Pale Ale, complex and hoppy; Nut Brown Ale, smooth with a nutty finish; and Amber Ale, lively with a subtle toasted character.

Bottled in Portland, Maine, Peak Organic is made with barley and hops that are grown without toxic and persistent pesticides and chemical fertilizers. “This process makes our beer better tasting and more enjoyable, both for consumers and for the planet,” said Cadoux.

Organic beer is well positioned for growth. Organics has become a $13 billion industry and represents the fastest growing segment of America’s food and beverage category.

Jon Cadoux, founder of Peak Organic Brewing in Portland, Maine, from an AP story on MSNBC in July.
(Photo by Pat Wellenbach / AP)

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

InBev and AnBusch Hop Into Bed Together

November 30, 2006 By Jay Brooks


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:

  • Advertising Age
  • Anheuser-Busch Press Release
  • Brew Blog
  • Forbes
  • MarketWatch
  • Reuters
  • St. Louis Today

 

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.”

Filed Under: News Tagged With: Announcements, Business, National

Grupo Modelo to Build New Brewery on the Rio Grande

November 30, 2006 By Jay Brooks

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.

Filed Under: News Tagged With: Business, International

Champagne vs. Beer

November 30, 2006 By Jay Brooks

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.
 

Filed Under: News Tagged With: Belgium, Business, Europe, Law

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