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Jay R. Brooks on Beer

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World Series Beer Collectibles

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This will give you some idea how much I don’t follow baseball. Until I read this press release from Anheuser-Busch, I had no idea who won this year’s world series. Apparently it was the St. Louis Cardinals and A-B is doing a commemorative can and magnum bottle.

From the press release:

The commemorative 46.5-ounce magnum bottle features the Cardinals 2006 World Series Champions logo on the front, with a summary of the World Series on the back label. The World Series magnum is sold individually in a red and blue box featuring the Cardinals and World Series Champions logos. The 16-ounce Budweiser aluminum bottle features the Cardinals 2006 World Series Champions logo and lists the years of each of the Cardinals 10 titles. The aluminum bottle is sold in 15-packs of specially labeled Budweiser cases featuring images of the Cardinals World Series bottles.

Both will be available in liquor, grocery and convenience stores in the greater St. Louis metro area — the magnum bottle as early as this weekend, and the aluminum bottle starting mid-next week. Both bottles will be reintroduced in March, when they will be more widely available as the city gears up for the 2007 Major League baseball season.

And an AP story added:

A 46.5-ounce magnum bottle will include the Cardinals 2006 World Series Champions logo on the front and a summary of the World Series on the back. Also available is a 16-ounce aluminum bottle featuring the championship logo and a list of the 10 championship years for the Cardinals. Among all baseball teams, only the New York Yankees have won more World Series titles.

The Cardinals won only 83 regular-season games but won the World Series in five games over Detroit. It was their first championship in 24 years.

Though Anheuser-Busch sold the Cardinals to the current ownership group more than a decade ago, the brewery and the team remain closely connected. The new ballpark that opened this year is named Busch Stadium thanks to a naming-rights agreement. The old advertising jingle “Here Comes the King” still stirs the crowd during rallies.

Unfortunately, just like their Millennium magnum and other collectible bottles, inside will still be just Budweiser and not a special brew made for the occasion.

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.”

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?

Man Laws

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This is a strange admission for me, but — geez, I can’t believe I’m saying this — I actually agree with almost all of Miller’s list of “Man Laws,” part of their newest ad campaign to persuade people that drinking Miller Lite isn’t just for kids, er … young adults, anymore. Maybe that says more about me than the Man Laws, who knows? If you’re a regular reader of the Bulletin, you know how I feel about low-calorie light beers — no sane person should drink them … ever. But I have to give Miller their props, especially after a number of ill-fated and ill-advised ad campaigns. Anybody else remember the ads by “Dick” in the late ’90s? Or the infamous Catfight? The Man Laws are at least somewhat clever. There was an interesting article in yesterday’s New York Times by Stuart Elliot all about the unusual partnership between Miller and the magazine FHM (For Him Magazine), a British men’ magazine with an American version. FHM is a men’s magazine in the mold of Maxim or Stuff, not Playboy.

Apparently in one of the new models to get advertising for major accounts, magazines are pitted against one another to come up with the concepts themselves, essentially taking on the role of advertising agency for the privilege of winning a company’s advertising. I guess that’s cutting edge and obviously winning the accounts is lucrative for the magazines, but it sure feels a little sleazy to me. I’m sure that’s my own naivete and sense of fair play, but how about these companies come up with their own ways to advertise their products?

From the Times’ article:

The FHM print campaign was selected after a competition that pitted ideas from the magazine’s ad sales department against those submitted by their counterparts at several other monthly men’s magazines. As is becoming increasingly common as magazines battle the new media for ad dollars, the FHM campaign involves elements that extend beyond prosaic ad pages.

Readers can take part in a contest on a special Web site (fhmus.com/manlaws), to which they can upload photographs to report “violations” of the laws. The contest is also accepting entries through cellphone text messages and e-mail messages.

Here is a list of all of the current Man Laws:
 

Man Laws

  1. Now matter how long the trip, a man’s suitcase shall not exceed 1.8 cu. ft.
  2. No man shall own a dog smaller than a football.
  3. Under no circumstances should a man be seen wearing sunglasses indoors.
  4. Armbands, headbands and such accessories are not to leave the gym.
  5. The Wearing of socks with sandals is henceforth forbidden.
  6. At no time shall any man believe a comb-over looks good.
  7. Men pull pranks.
  8. A man shall never dance for fun unless to improve his chances of getting a girl.
  9. When swatting an insect, never do it yelling “get it off, get it off!”
  10. Regardless of how scary the ride, it is never permissible for a man to squeal.
  11. A man shall never get in his vehicle by sitting sideways and swinging both legs in.
  12. Technology that makes you look like a mumbling crazy person is not cool.
  13. You can take the last beer or the last chicken wing — not both.
  14. Acquire tans by accident, never by credit card.
  15. Regardless of the name, a man doesn’t visit a manicurist.
  16. A man may wear pink provided that he refer to it as “light red.”
  17. No man shall ever make excuses for the haircut he has been left with.
  18. Highlights are sports clips, not something you do to your hair.
  19. “Too cold” shall not cross any man’s lips on game day.
  20. All football injuries are treatable by walking it off or rubbing dirt on it.
  21. Interpretive dancing shall be reserved for weddings and touchdowns.
  22. When attending a football game, you can not wear the jersey of a former player, unless that player is retired.
  23. No man shall ever tuck a team jersey into his pants.
  24. Shirtless players shall not repeatedly post up on their defenders.
  25. A man shall not wear a full team uniform to play pickup basketball.
  26. A man shall never have two-hundred dollar basketball shoes and a three-cent game.
  27. Three or more air-balls in a game and a man shall be relegated to passing.
  28. A man shall not nag another man, but a firm stare is OK.
  29. A man must abide by the locally accepted shotgun rules; failure to do so results in automatic shotgun forfeiture.
  30. A man must attempt to stop a friend from calling his ex-girlfriend a minimum of three times, after that he’s on his own.
  31. When your friend’s girlfriend breaks up with him, she’s off limits; unless she is drop dead gorgeous, in which case you must wait six months before dating her.
  32. A man shall never use a lame pick up line.
  33. All men must possess the ability to operate a knife, either electrical or traditional.
  34. Fireworks are always in season.
  35. A man shall never pay any attention to the evenness of his tan line.
  36. In a pinch, it is perfectly acceptable for a man to commandeer female clothing for Halloween costuming purposes.
  37. Holiday decorations must absolutely, positively be taken down before spring.
  38. Crushing a beer can on your forehead is lame.
  39. A man shall never put a lime or other fruit in a beer for any reason at any time.

The best photographs depicting violations of the Man Laws are then entered into a contest, which … let’s let the Times continue explaining how it works:

In an example of the trend known as consumer-generated content, the best entries from the contest will be compiled in a 16-page booklet to accompany the May issue of FHM. For readers who cannot wait that long to learn the finer points of “man laws,” Miller Lite will be the sole sponsor of a 2007 calendar that will be included free with the January/February issue of FHM.

It’s an interesting concept and certainly better than most of Miller’s recent ad campaigns. Now if only they’d put some more effort into making some better tasting beers.

2006 Sales of Beer by Style

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I get regular e-mails from the publisher of the DBBB, the Domestic Brewers Bottled Brands, with trends in beer sales and other press release information. Today’s e-mail included a chart of IRI Data by beer style showing sales of beer from the beginning of the year through November 6th of this year. IRI is short for Information Resources, Inc., a company that surveys sales of beer (and everything else) from over 15,000 retailers (mostly groceries) in the U.S. As a result, their data is invariably skewed toward the national and regional brands since it doesn’t take into account direct sales and sales from small mom & pop stores. I used to get IRI data from almost every medium to large brewer who called on me when I was a beer buyer for a chain of liquor stores. And while it’s not accurate for craft beer in specific, it does give you a general idea of certain trends, especially when you follow it over a period of time.

 

Chief Beer Officer: Dream Job or Best Promotion Ever?

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Simultaneously in a full-page ad in the Wall Street Journal, on Monster.com and Yahoo’s Hot Jobs listings, Starwood Hotels’ Four Points by Sheraton posted a job listing for Chief Beer Officer, an intriguing job title if ever there was one. And with a job title so likely to get a record number of applicants, it made the news, too, as several news outlets ran stories about the position, such as Marketing Daily, BrandWeek and Hotel Chatter.

It certainly sounds like a job any beer geek would feel fortunate to get, and I think that’s why it sounds too good to be true. First of all, the stories about it and the online application itself are just a little too clever, too tongue in cheek to be a serious job offer. And you’re not actually hired by the company, but will be an independent contractor, a part-time consultant. The pay is unspecified (though apparently there’s a generous travel allowance) and requires less than one years experience yet is considered to be “Executive Management” and according to Monster.com is at the “Senior Executive” level, on par with the President and CFO.

The online application also includes a short quiz to test your beer knowledge but the questions are so telescoped that only the truly dull-witted could fail to ace it. For example, one question is “Which is not a variety of hop?” And your choice of answers is “Amarillo, Boy George, Fuggle and Williamette.” Another is “Name one of life’s joys that can accompany goat cheese?” And here the answers could be “Basketball, Acoustic guitar, or Beer drinking.” They’re all like that, so I can’t help but think this is just a clever promotion and whoever gets the job will be a random winner, not that that makes the new CBO position any less enviable.

Starwood did announce at the end of the award ceremonies at this year’s GABF that they were launching the “Best Brews” program at all of their locations, with the help of the Brewers Association. The program is designed to offer a better beer menu than the average chain hotel bar and restaurant. Four Points in L.A. has been hosting some wonderful beer dinners for some time now and I can only imagine their success with good beer may have been the inspiration for this program.

Here’s the job listing on Yahoo:

Help Wanted: Chief Beer Officer® (CBO)

Four Points® by Sheraton seeks Chief Beer Officer to act as independent, part-time consultant for their Best Brews Program. This fall, Four Points by Sheraton, purveyor of pie and champions of contentment, is launching their Best Brews Program. In addition to featuring over 200 domestic and imported beers, they are seeking a Chief Beer Officer. The successful candidate will have a passion for beer, a basic understanding of brewing and an interest in further educating themselves about this glorious libation.
 

CBO duties will include:

  • Act as a beer ambassador for the hotel at microbrewery tours, beer festivals and on bar stools across the country.
  • Develop an intimate knowledge of the over 200 domestic and imported beers that are part of the Best Brews Program (which will be supplied to the candidate)
  • Introduce these to the public through monthly blog reviews.
  • Brew eloquence and a bubbly personality are both a plus.

 
Are you ready to make your love affair with beer public? To apply please visit www.FourPoints.com/CBO. To be eligible, all one needs is a love for beer, a basic understanding of brewing, and an interest in learning more. You must be 21 years of age or older.

 

So what are you waiting for, apply now. Either way, it should be a hoot.

AP’s Beer by the Numbers

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Last week, quite a number of papers ran a short little filler item from the Associated Press that just listed the following statistics regarding the beer industry and U.S. consumption.
 

  • 1,409: The number of breweries — ranging from brewpubs to national brewers — operating in the United States.
  • 306: The number of breweries in California last year, putting the state first in the country. Mississippi was last with one.
  • $82 billion: The U.S. sales volume for beer last year. Craft beer — beer typically made in small batches by regional or local brewers — accounted for $4.3 billion.
  • 21.3 gallons: The amount of beer consumed per capita last year in the United States. New Hampshire led all states with 31.1 gallons. Nevada, North Dakota, Montana and Wisconsin rounded out the top five. Utah was last at 12.2 gallons.
  • 48: The percent of all beer sold in metal cans last year in the United States. Glass bottles followed at 42 percent and draft beer was at 10 percent.
  • 84.1: The market share held by major U.S. breweries and noncraft regional brewers. Imports have 12.4 percent and craft brewers hold 3.4 percent.

Crossing the Red Bridge

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I have an article coming out next month in New Brewer magazine about gluten-free beers, so I’ve been watching what’s been going on with this kind of beer for many months. In case you’ve missed this growing phenomenon, celiac disease now effects close to 1% of the U.S. population and people with the disease can’t properly digest glutens, a protein in many common grains, including wheat and barley. This means no bread, pizza, pasta or, most importantly, beer. Here and abroad, there is increasing interest in producing a beer that’s both gluten-free and tastes similar to beer. To date, only a handful of American brewers are making one, with several more in Europe and Australia.

My son, Porter, is autistic and many kids with ASD also have some stomach problems similar to those associated with celiac sufferers. As a result, both are put on gluten-free diets with generally positive effects. Over the past summer, I was talking with Dr. Michael Lewis, who pioneered the brewing sciences program at U.C. Davis, about these beers. He mentioned that Anheuser-Busch was also working on a gluten-free beer and suggested a few people there I should talk to about it. Try as I might, I could not penetrate A-B’s bureaucracy beyond a tersely-worded statement from their P.R. department. They seemed genuinely surprised that I even knew about, despite the fact that Miller’s BrewBlog broke the story in early August that A-B had filed a label registration in Missouri for the beer, called Red Bridge Sorghum Beer, and test batch bottles reportedly had been quietly sampled at MBAA meetings. All Anheuser-Busch was willing to say on the matter was the following:

Our goal at Anheuser-Busch is to make sure every consumer can enjoy the kind of beer they feel best about — it’s that simple. That’s why our brewmasters are continually exploring and brewing a variety of beer styles year round. We are currently brewing a beer made with sorghum and without barley, wheat or oats and we’re still developing the final product.

They were unwilling to provide a sample, show me a label, allow me to speak to the person I knew to be working on it, nada. Needless to say, I wasn’t able to include much in the article. This despite the fact that I had seen and tasted a test bottle, seen a label mock-up, and knew they’d both registered the name and picked up the domain name redbridgebeer.com on July 12. To hear the P.R. flacks tell the tale, it was years away from being on store shelves, if ever.

So it was with a gentle smirk that I received the news today — a rumor at best, from an anonymous source — that A-B would be rolling out Red Bridge Sorghum Beer nationally (not in a test market) on December 18. Is it true? I’ll let you know in just under two months.

 

This mock-up may or may not be the label for A-B’s new gluten-free beer, Red Bridge.