Brookston Beer Bulletin

Jay R. Brooks on Beer

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Beer Remains on Top — This Year Gallup Agrees

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According to a press release from Anheuser-Busch, a recent Gallup Poll indicates that people were more truthful this year about their favorite alcoholic beverage. Last year’s poll appeared to indicate that wine was overtaking beer, despite the fact that beer outsells wine by an almost 4-to-1 ratio, and has for many years. I never believed last year’s poll and this year’s, having put beer once more on top, seems to confirm my earlier suspicions.

Speculation last year ranged from people giving the answer wine as their favorite because of its perception of greater sophistication to problems with the sample taken, such as the one earlier this year by Merrill Research. In other words, asking people what their favorite is may not always produce highly accurate results since the subject itself is so subjective. Sales figures, on the other hand, are more reliable and they have shown beer far in the lead for years and years.

From the press release:

Findings from Gallup’s annual poll on Americans’ alcohol and drinking habits demonstrate adult consumer consumption of wine has decreased, while consumption of beer has increased five percentage points since July 2005.

Of those Americans who drink alcohol, 41 percent most often drink beer. Beer is the largest segment in the alcohol beverage category in both volume and dollar sales, and accounts for nearly 60 percent of all alcohol beverage servings.

A-B also used the press release to tacitly suggest that their Here’s to Beer campaign was responsible for the turnaround by including information about it directly following the Gallup Poll story.

Coors DWI: A Different Take

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Pete Coors, family scion of Coors Brewing Co. (now Molson Coors) was famously arrested on a drunk driving charge in late May for which his license has now been revoked. I’m sure much will be made of this by the neo-prohibitionist movement, especially since Pete had personally overseen Coors’ “21 Means 21” responsible driving program. Coors himself has said. “I made a mistake. I should have planned ahead for a ride.” But did he really make a mistake?


(AP Photo/Jack Dempsey)		 Predictably, because of who Pete Coors is, this has made the rounds of all the major and minor news outlets, many pointing out the irony of Coors’ responsible drinking program and this incident. But I think there’s a larger issue that needs revisiting. This is an excellent example of how far over the edge neo-prohibitionist groups have gone in their quest to remove alcohol once more from society.

According to Pete Coors’ statement, he had “consumed a beer about 30 minutes before leaving a wedding.” He then ran a stop sign one block from his home in Golden, Colorado, and police stopped him in his driveway. According to the Washington Post, “[i]n one breath test, he registered a blood alcohol level of 0.073 percent. In a second, 20 minutes later, he registered 0.088. In Colorado a blood alcohol count of 0.05 results in a driving while impaired charge, while a count of 0.08 results in driving under the influence.”

But let’s assume Pete’s statement is correct. That means an average size person isn’t able to have even one beer thirty minutes before getting into a car. And I’ll assume he was drinking a Coors beer, which isn’t exactly a strong one. If the Colorado standard is 0.05% to be considered “impaired,” then one Coors was more than enough to make virtually any person unable to have even one beer while out at a social function. It’s a wonder any bars are even open in Colorado anymore. This is an excellent illustration of just how far the pendulum has swung in favor of the neo-prohibitionists. MADD and other similar organizations have been tireless in lowering the acceptable blood alcohol level in state after state. And no politician wants to be seen as being for drunk driving, a fact these vultures prey upon. But let’s look again at what Pete did that signaled the Colorado Highway Patrol that he was a candidate for suspicion. He ran a stop sign one block from his house, and made it there safely since that’s where the police arrested him. And not even ran it, but in the words of the arresting officer, “rolled through [the] stop sign.” In many places that’s known as a “California stop.” Now who among you hasn’t ever done that, especially right by your house where you’re intimately familiar with the driving patterns. At worst, he should have been cited for the stop sign and that’s it.

But over 25 years of scare-mongering tactics have even made police more apt to assume alcohol is involved in practically everything. You could just about here the officer’s mind whirring as he read the name on the license, assuming he didn’t already know who he was pulling over. Once he knew who he had, you just know a breath test was in order. Because there’s nothing else that’s been reported that suggests there was any other probable cause to test for alcohol. Certainly not “rolling through a stop sign” automatically rises to that level and I have a very hard time believing a 59-year old man who’d had one drink thirty minutes before leaving a wedding (plus whatever his driving time home was) would have appeared very drunk at all. It’s ridiculous in the extreme.

I realize that it’s unpopular to say so, but we’ve gone too far in punishing the majority for the sins of the minority. We do it all the time. Most of our laws are based on this theme. Look at airport security for a recent example. Certainly we need security at the airport, but all that’s really happened is people are more and more inconvenienced for very little, if any, benefit to increasing actual security. Who believes you’re safer flying now due to the “heightened security” at the airport? Investigation and surveys continually prove otherwise. The fact is if a terrorist really wants to harm a plane, he’ll figure out a way, and it won’t be by putting a bomb in his shoe even though everyone now has to take off their shoes because that happened just one time. But every problem demands that politicians make some show of addressing the problem. Usually this takes the form of new laws, procedures, etc. which do no real good and serve only to get them re-elected while the measures themselves really just screw the rest of us.

And so it is with drunk driving laws. There will always be people too stupid to know when not to get behind the wheel of a car. Before MADD, I concede that society didn’t handle those problem people very well and they truly were — and are — a menace. But making it impossible for the rest of us who maybe can exercise reasonable judgment about whether to drive or not was not the only solution, and it certainly wasn’t the best solution. Personally, I hate paternalistic laws that seek to tell people how to behave. Seat belts are a good example of this. Now I agree that we should all wear seat belts, but I bristle at the idea that it’s a law. It should never have been a law. People should have been encouraged to wear them but if they were too stupid to listen that’s where it should have ended.

But by lowering the blood alcohol standards, the number of people arrested for driving drunk has predictably gone up. Are the roads safer now? The statistics at MADD don’t seem to suggest that. The ones I looked at appear to simply fan the flames of fear and intimidation. One in every 121 drivers has been arrested for driving drunk. Does that seem even remotely reasonable? Are there less alcohol-related accidents now than before 1980? It only appears everything is getting worse, which means MADD can stay in business and keep soliciting funding for years to come without really solving the problem.

By now, perhaps you think I’m advocating driving drunk. Nothing could be farther from the truth. But how we define what being drunk is and how we deal with a person who showed poor judgment by driving when he or she was in no condition to do so, is at the heart of this problem. Making the standard for being intoxicated lower and lower has not made the roads safer and has victimized thousands, perhaps millions, of innocent people. It has had a chilling effect on legitimate businesses that serve alcohol and made most Americans afraid to get behind the wheel if alcohol has touched their lips at all. Is that really the kind of society we want to live in? We should definitely punish those people who show time and time again that they cannot be trusted to make good decisions. Such people are menaces to society and they should not be allowed to drive and should be punished for any crimes they commit. And most of the crimes a person could be charged with existed before 1980, such as vehicular manslaughter, unsafe driving, etc.

So all MADD did was make more people vulnerable to prosecution. The founder of MADD, Candy Lightner, began the neo-prohibitionist movement after her 13-year old daughter was killed by a drunk driver who “had three prior drunk driving convictions and was out on bail from a hit-and-run arrest two days earlier.” I would have been pissed off, too, and I can’t even imagine how I’d feel if my son, Porter, or my daughter, Alice, was taken from me in that way. But the way to have addressed that problem was to strengthen enforcement of drunk driving as it existed. That person should never have been allowed behind the wheel two days before or after the second or third conviction. The justice system failed in that case and was definitely in need of reform. I don’t think anyone would dispute that.

But out of that incident, everyone else who lives in our society has been punished for that person’s crime. We’ve all become the victim of people’s grief run amuck. An entire industry has been stigmatized as evil because some people can’t enjoy it responsibly. We all have suffered because of those folks and they’re the ones who deserve to be punished. There’s nothing I hate worse than a bad drunk. My stepfather was one. And I know a few others, even a couple in the beer business. I hate being around them. They’re the problem, there’s no doubt of that.

Contrast that with mobile phone use in an automobile, which has been shown to impair a person’s driving as much as or in some cases more than that of a drunk person. Where is the outrage toward phone companies that breweries face? Why aren’t phones stigmitized as harmful to society? Why is restricting phone users from getting behind the wheel of a car any different if the potential for harm is at least the same? Where are the websites and non-profit organizations to combat this growing problem on our nation’s highways? Why isn’t AT&T being picketed for putting our youth in danger on the road? I think this very disparity points to the unspoken agenda lurking beneath the surface with many neo-prohibitionists: alcohol is a moral issue and they’re using it to tell you and me how we should live our lives, which is to say like they want to live their own.

I think it’s time to say that. It’s time to stand up and say our alcohol laws have become ridiculous in the extreme and have gotten in the way of how we live our lives. In my opinion, laws should be nothing more than a balance of competing interests that produce the greatest good for the most people. People who put themselves and others at risk by getting behind the wheel of a car when they’ve had too much to drink should be punished. But we’ve gone so far out of whack in defining what that means that literally no one can use their own prudence or good judgment because having even one beer makes us all criminals. So because of a few, the many can no longer responsibly enjoy themselves with a reasonable amount of alcohol.

I realize Pete Coors must show deference to the law because of his position and because of his business. But I think the rest of us should use this incident to let our politicians know that our alcohol laws have gone too far and we must reform them in such a way that they’re fair and reasonable. People should be able to enjoy the legal pleasures of a free society without fear and without being treated like criminals. Otherwise, we will no longer have a free society at all in which to enjoy that beer.

Barton Beers to Import Corona Nationwide

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When it was announced back in early March that Gambrinus had lost an arbitration and more significantly the contract to import Corona — and other Grupo Modelo brands — throughout the Eastern half of the U.S., speculations ran high as to who would be awarded that lucrative contract. Well, the wait is over and as many predicted, it will go to Barton Beers of Chicago. Barton Beers currently imports Corona in the western half of the U.S. so with this move, Grupo Modelo will have one importer for the entire country. In addition to Corona and the other Modelo brands — Modelo Especial, Negra Modelo and Pacifico — Barton also imports St. Pauli Girl and Tsingtao. Barton in turn is owned by Constellation Brands, a giant in the world of liquor and wine.

The Gambrinus contract ends next year, when Barton will take over Corona nationwide on January 2. The new contract with Barton will last for ten years. According to a press release put out by Constellation Brands, the new relationship between the two companies is actually a joint venture.

Corona is, despite its weak flavor and lack of character, the number one selling import beer in America, having eclipsed Heineken for that dubious honor in 1997.

“It’s For the Kids”

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The neo-prohibitionist organization Center for Science in the Public Interest (CSPI) released a statement yesterday claiming that beer logos on cars, toys and at the NASCAR track “Confuse Young Kids About Drinking and Driving.” Boy these organizations think kids are pretty stupid, don’t they.

Now I’m not a fan of car racing. I follow some sports, but it’s just not a huge part of my life. I have nothing against them per se although I do think our obsession with sports in general distracts people from more important issues, but that’s probably just me. And the strange thing is I don’t really like the big beer companies sponsoring sports and the attendant ads very much, but on wholly different grounds. For me it’s about the message they’re sending about what beer is and how it should be consumed where I believe most of their advertising perpetuates false and misleading information about beer itself. And I think this has done great harm to beer’s image over the last several decades making it harder for craft brewers to compete.

But the one sport I hate with a passion even more is using kids as an excuse to further an agenda. It’s a time-honored strategy and neo-prohibitionists have honed it to a fine art. Don’t like something other people are doing? Claim it’s bad for the kids. It’s always about the freaking kids. This just so frys my bacon. I have kids. Many, if not most, of the hundreds of thousands (perhaps millions) of people whose livelihoods depend on beer from brewers to distributors to salesman to truck drivers to the ad agency people who come up with the ads have kids, too. I don’t see them coming unglued because a toy car has a Budweiser logo on it. Now I wouldn’t buy my son a Bud car because I don’t like Bud. But he does have a Radeberger Pilsner truck I bought him in Germany. And he has some trucks with craft brewer logos on them and some with other import beers like Murphy’s (before Heineken bought them). Do I think he’s going to be harmed because of this? Of course not. Only someone uninvolved with their children could come to that conclusion. There are plenty of real threats I’m worried about in raising my children. Even just talking about this one is a waste of my time.

But the neo-prohibitionists are serious. They really think this is the problem that needs addressing. Anything, anything that has to do with adults enjoying alcohol must be stopped. It must not be allowed. If anyone can abuse it, then none of us are safe until alcohol is once again outlawed. And we all now how well that worked out the last time we tried it. In fact, it’s never worked out when any body’s tried it. They may dress it up as concern for the kids and even for the public at large but this is just a grubby little attempt at controlling the lives of all Americans in a way the majority of Americans don’t want. That’s supposed to matter in a democracy, what the majority of people want. But minority opinions are increasingly pushing their way to the front of the line with misinformation, propaganda and deep pockets.

And while I’m ranting, how about euphemistic names that neo-prohibitionists use to obfuscate their true purpose. This one cracks me up: “Science for the Public Interest.” Science? Their press release is just anecdotal hogwash with no scientific basis whatsoever. It’s pure opinion, and that would be fine as long as they said so. And who’s public interest are they representing. Not mine. Not the thousands and thousands of brewery and related industry workers and their families. Their mission statement claims they “represent the citizen’s interests” but are all citizen’s interests the same? How could they be? So they’re really pushing a particular, if unstated, agenda. But if they want truth in advertising isn’t it only right that they should begin with their own name? If their very name is misleading and doesn’t really convey their true purpose why should we believe anything they have to say? I have a hard time giving credence to any organization who claims a higher moral ground but can’t even manage honesty in their own name.
 

A couple of my son Porter’s toy trucks. Radeberger, who makes a fantastic pilsner and Anderson Valley Brewing, an environmentally friendly brewery that is a huge part of its local economy. And the problem with these is …? Let’s see, global warming, no universal health care, a war in Iraq, record deficit, secret spying on Americans by our own government, the Patriot Act, AIDS in Africa, the growing scarcity of oil and water, and on and on but no, this is the big problem. Could we please get some perspective?

Miller Strike Looming

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According to UPI, the Teamsters are warning distributors of Miller beer throughout Milwaukee, Chicago, New York, Boston, Philadelphia and Minneapolis that a strike is imminent. Apparently healthcare benefits are the sticking point in negotiations between the union — who represents more than 1,400 employees of the brewery — and SABMiller, Miller’s parent company.

Miller’s union workers voted to authorize a strike back in the third week of June. The Teamsters press release today discusses possible strategies for this potential strike and yesterday they warned that SBMiller was risking US Market share by ignoring healthcare concerns of union workers.

AP Discovers Wild Hop Lager

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Yesterday’s media ran a story by AP entitled “Organic beer sales grow, Anheuser-Busch enters market.” The article itself is fine, mostly comprehensive and well-written. But what struck me was the phrase A-B “enters market” (my emphasis) because I started writing about Wild Hop Lager on March 23. To my mind, almost four months later is not exactly a scoop by the mainstream press.

One statement in the article was quite interesting regarding sales of organic beer:

While organic beer sales are still minuscule in the overall beer industry, they are rising fast. North American sales of organic beers grew from $9 million in 2003 to $19 million in 2005, according to the Organic Trade Association.

That’s slightly better than doubling sales growth in two years’ time, which is pretty impressive.

A Confusion of Brands: Miller Buys Steel Reserve

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Okay, maybe the confusion is all on my side, but I’m confused. SABMiller announced the purchase from McKenzie River Partners of Steel Reserve, the leading high gravity beer. High gravity beers are essentially a euphemism for malt liquor. But the McKenzie River Partners that I knew also owned or at least controlled in some fashion Black Star Lager from Great Northern Brewing Co. of Whitefish, Montana.

The original Black Star Lager label and today’s label.

 
I knew at some point that Steel Reserve became the focus of the company but Black Star all but disappeared from the Bay Area, where at one time it actually did pretty well. I confess when the focus changed to malt liquor, I stopped paying attention. I don’t generally think much of high gravity beers — Dogfish Head’s Malt de Liquor notwithstanding — so I tend to ignore news about them. For this reason, this move by Miller to buy even the leading malt liquor for an astonishing $215 million makes little sense. Also in the deal is Sparks, a caffeinated alcoholic malt beverage with added caffeine, guarana and ginseng. But the spin machine makes these two brands sound like Miller’s salvation. I guess time will tell.

From the press release:

The deal immediately strengthens the Miller portfolio with two fast-growing and profitable brands that are defining their respective product categories and far outpacing overall industry growth. Miller also expands its innovation capability and expertise by aligning itself with an entrepreneurial pioneer with a proven track record of creating highly successful, first-mover brands like Steel Reserve and Sparks.

“Sparks and Steel Reserve will have an immediate positive impact on our growth profile,” said Norman Adami, president and CEO of Miller Brewing Company, a wholly owned subsidiary of SABMiller plc. “In addition, our new product development relationship with Minott Wessinger connects us with a very special guy when it comes to innovation.”

Under Mr. Wessinger’s leadership, the Sparks and Steel Reserve brands have grown at triple and double digits respectively. Miller plans to build on their innovative and highly differentiated positionings and continue their impressive growth by leveraging Miller’s first class marketing, sales and distribution platforms.

“I’m very excited about the new relationship with Miller and confident that they will take Sparks and Steel Reserve to the next level with great marketing and sales support,” said Mr. Wessinger. “The U.S. beverage market is changing rapidly and there are tremendous opportunities for us to create new brands that bring value to consumers, wholesalers and retailers.”

Both Sparks and Steel Reserve are already brewed by Miller under a contract brewing agreement with McKenzie River. Under the new agreement, the parties have also agreed to a long-term contract brewing relationship. The majority of Sparks and Steel Reserve volume is currently distributed by U.S. wholesalers who also carry Miller brands.

McKenzie River has successfully built national distribution of both the Sparks and Steel Reserve brands through seeding in independent C-stores followed by expansion into chain convenience stores and supermarkets. Miller intends to increase the channel penetration of the brands.

Besides acquiring great brands, Miller also gains access to Mr. Wessinger’s creativity and entrepreneurial winning streak through a formal product development relationship.

“Our new relationship with McKenzie River will enable Miller to tap into emerging consumer trends and leverage new brands through our national system of distributor partners,” Mr. Adami said.

Beer, America & the U.S. Constitution

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Today two things conspired to make me think about the upcoming Independence Day holiday. First, today is the anniversary of an interesting event that took place in a Philadelphia bar that perhaps made America in its present form possible. If had not been for the the social lubricant of ale and the camaraderie that can only be formed over a pint, compromise might not have been possible and things today might be very different. Who can say for sure? Beer historian Gregg Smith tells it best:

The great diarist of the Constitutional Convention was James Madison of Virginia. His choice of quarters was the India Queen Tavern where there was always a beer at the ready, and it was in the tap room of the India Queen that a new form of government would be created on the evening of June 30, 1787. Up till then smaller states worried they’d be at the mercy of their more populous neighbors, and of course larger states were intent on maintaining their influence. But on that night Madison orchestrated a meeting between Roger Sherman of Connecticut and John Rutledge of Virginia. It was there, in the tap room, that the concept of the legislative branch of the United States was conceived. So it’s not incorrect to say that the Senate and House of Representatives were born in an ale-house.

Note to neo-prohibtionists: See, not all drinking is bad. You might not have a country in which to peddle your fractious agenda were it not for beer.

The second thing was the new advert from Anhesuer-Busch’s Here’s to Beer cmpaign, which is slated to run as a full-page ad in USA Today on July 4th. I have, of course, said a few less-than-flattering things about this campaign but I do like this ad. It’s very well done and works on several levels. It conveys the very important message that beer is, in fact, an integral part of history and our own heritage. This is a lesson we all need to remember and those who seek to remove alcohol from society most of all. Remember that as you toast America’s birthday on the Fourth with a glass of your favorite beer. Here’s to beer!

NBWA Continues Lobbying for the Rich

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I knew this issue wasn’t going away. Congress is again moving toward letting the rich get richer while the rest of us get poorer. A compromised version of the repeal of the estate tax passed the House today and while it’s not quite as onerous as outright repeal, it still leaves a very bad taste in my mouth. What’s that flavor? Greed. Bloomberg has a nice overview of today’s events regarding the estate tax vote. Why is this here? Because the National Beer Wholesaler Association continues to make this their top priority. It has very little to do with the beer business per se, apart from keeping a very wealthy few beer wholesalers as rich as Croesus.

From the NBWA press release:

NBWA Applauds House Vote Calling for Permanent Relief from the Death Estate Tax

ALEXANDRIA, Va. – The National Beer Wholesalers Association (NBWA) today applauded House passage of legislation that aims to provide the nation’s small business owners with permanent relief from the onerous death estate tax. H.R. 5638, the Permanent Estate Tax Relief Act of 2006, sponsored by Ways and Means Committee Chair Bill Thomas (CA-22), passed the House with bipartisan support.

“Today’s vote represents recognition by the House that it is high time to deliver a permanent solution to the death estate tax to America’s small business owners,” said NBWA President Craig Purser. “While full outright repeal is the ultimate goal, in this intense political climate we acknowledge that partial relief is better than nothing. Those groups that oppose Chairman Thomas’s bill in favor of holding out for a vote on full repeal must understand that small business owners need permanent relief now, and the window of opportunity is closing.

“The onus is now on the Senate to act swiftly. The Senate asked for legislation from the House and the House answered the call. Now is the time for Senators to stand up for small, family-owned businesses and support this effort to provide permanent relief from the death estate tax once and for all.”

Horse manure. You can read my earlier equally fair and balanced rant entitled “Enough Already: Time to Cry Bullshit” about this issue.

HopUnion Merges with Yakima Chief Craft Division

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hopunion-globe yakima-chief
HopUnion LLC announced today that they will be merging, effective August 1, with Yakima Chief’s craft division. Yakima Chief will continue to independently run their other divisions. But the craft beer side of their hop business will be folded into HopUnion’s and almost nothing will change there apart from having more hops to offer and the addition of longtime Yakima Chief east coast salesman Jim Boyd.

From the press release:

“We believe this merger will help provide more selection of hop varieties as well as better stability in the supply and demand chain,” said Ralph Olson, general manager and one of the owners of Hopunion Craft Brewing Sales, LLC. “Our ability to take care of the needs and desires of the customer will be greatly enhanced.”

Olson said that by combining the two companies there will be improved efficiencies in pellet plant production with the ability to produce larger volumes of consistent product.

Prior to the merger, Hopunion Craft Brewing Sales, LLC and Yakima Chief, Inc. were providing specialty hop varieties to the craft brewing industry.

Joining Olson in the new company will be Ralph Woodall, Jim Boyd and David Edgar, who together have over 60 years of experience in the hop industry. Support staffs from Hopunion Craft Brewing Sales, LLC and Yakima Chief, Inc. will be located at the Hopunion Craft Brewing Sales, LLC office in Yakima.

Ownership of the new company includes several Northwest growers who specialize in producing premier aroma hops. With these grower partners, the new company will be able to continue to provide the consistency in quality of hops that customers have come to expect from both companies.

“We will now be able to provide greater coverage in North America for the craft brewing industry,” Olson said of the merger. “And, it will allow us to help nurture craft and specialty brewing internationally, a growing segment of the industry.”

I spoke to Ralph Woodall this morning and it sounds like the merger is all positive. According to Ralph, the two can now stop competing in this area and start working together which should be a boon to craft brewers. Both have, as I understand it, great reputations in the industry though HopUnion certainly has the more public face (and puts on the best industry parties — especially when they work alongside Joanne Carilli from White Labs). Gerard Lemmens had been the public persona of Yakima Chief but he left the company last year for Brewers Supply Group and has all but retired to London now. So this merger makes a great deal of sense for both parties.

HopUnion, even before the merger, was the biggest supplier of hops to the craft beer industry with Yakima Chief solidly at number two. Post-merger they will own a sizable share of the market, though the craft beer market represents a fairly small percentage of total U.S. hop production. Best of luck to the Ralphs, David, Jim, Jennifer, Dave and Becky, the Johns and the rest of the wonderful folks at HopUnion.

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The infamous Ralph’s from HopUnion. From left: Ralph Olson and Ralph Woodall, with Rob Widmer, of Widmer Brothers Brewing. I took this at the 15th Anniversary Party for the Celebrator Beer News.