Brookston Beer Bulletin

Jay R. Brooks on Beer

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House Resolution 753 Passes

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After only about two months, House Resolution 753 passed unanimously, with 70 co-sponsors, including twelve house members from California. H.R. 753 was the brainchild of the Brewers Association and “commend[s] America’s craft brewers for their many and varied contributions to our nation’s communities, economy, culture and history.”

The resolution was spearheaded by Representatives Sherwood Boehlert (R-NY) and Peter DeFazio (D-OR), and with over 70 additional Congressmen cosponsoring the measure. The following California house members co-sponsored the bill: Ken Calvert, Sam Farr, Bob Filner, Jane Harman, Mike Honda, George Miller, Linda Sanchez, Loretta Sanchez, Hilda Solis, Ellen Tauscher, Mike Thompson, and Lynn Woolsey.

From the press release:

“This is an important and significant first step in our effort to raise the profile of craft beer and brewing in Washington,” said BA president Charlie Papazian. “The amount of support we received from Members of Congress was extremely gratifying and was due in large part to the efforts of individual professional Brewers Association and American Homebrewers Association members calling and writing their Congressman to ask for their support of the resolution.”

The resolution, which also recognizes the establishment of American Craft Beer Week, was a featured element of a Capitol Hill Congressional reception held on May 16th which featured BA member beers from across the country paired with a variety of artisinal foods. At this event, Congressmen Boehlert and DeFazio were publicly recognized and thanked for their outstanding support of America’s craft brewers

From left: Brewers Association president Charlie Papazian, Representatives Sherwood Boehlert (R-NY) and Peter DeFazio (D-OR).

Ryer Islander’s Rye Ale Returns to Hoppy Brewing

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I have a special fondess for beers created by happy accident, such as Lagunitas’ Brown Shugga. Hoppy Brewing of Sacramento, California, is re-releasing their own happy accident, Ryer Islander’s Rye Ale (I also have an unnatural fondness for rye beers) as a seasonal ale that should be returning every year as a summer seasonal. Looks like I’ll have to get my lazy self up to Sacramento one of these days soon.

From the press release:

The next brewer’s special due on tap near the end of June is the return of a “new” annual favorite – Ryer Islander’s Ale. The Brew Crew has decided to add this beer to our small line of Perennial Specials (i.e., beers so well liked that we make them every year). So far they are all pale ales – broadly speaking. Fancy that… The progression will go from Tyson’s Twisted Pale Ale in the Spring, Ryer Islander’s Rye Ale in the Summer, Super Hoppy Pale Ale in the Fall, and after all of these years you should know by now what happens in the Winter… 😉

The back story on the Ryer Islander’s is the glory of serendipity and happy accidents. Often brewers will set out to make a beer style that is new, or experiment with new ingredients, and after those beers are made, there are usually partial bags of hops and malt that do not get used for anything else. With that being the case, then Ed will make what he likes to call “Sound Inventory Management” (SIM) beers – basically use the stuff up before it gets old and goes bad. It is kind of like the creations we have all made with the chicken in the freezer, half a bag of corn, some rice, and the remains of all of those dressing and condiment bottles we want to clear out of the refrigerator door. Sometimes those meals come out so well that we wish we had written down the recipe…

Ryer Islander’s Rye Ale is just such a recipe. First there was a mistake in one of the orders. Ed got three sacks of rye malt instead of the three sacks of rye flakes that is used in the Liquid Sunshine. After several subsequent deliveries where he completely forgot to send the rye malt back with the driver, he pretty much had to use it or lose it. Add that to a couple leftover partial sacks of Carapils and Extra Special Malt were thrown into the mash as well. On the hops side, Ed had partial bags of Challenger and Santiam to use up, and he always has plenty of Liberty that gets used in the Hoppy Face. The thought being – that ought to go well – shouldn’t it???

It did!!! The beer flew out of here like it was FREE or something… Almost as importantly, Hoppy’s General Manager, Mr. Kenny Turner really liked it, so we knew that we had not seen the last of it…

Ryer Islander’s Rye Ale is brewed with just over 30% Rye Malt, this unfiltered ale has a distinct rye bread character with a hint of roasted flavors and a tantalizing orange hue. A blend of Galena, Hallertau, and Liberty hops provides a spicy aroma. Alcohol by volume is about 6.0%, it is not really comparable to anything, and it should be on tap about mid-June.

Enough Already: Time to Cry Bullshit

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Okay, I’ve had enough. Time to speak out. I’ve been getting press releases from the National Beer Wholesalers Association for many months now about the [expletive deleted] estate tax (it’s correct name by the way; they keep calling it the “death tax,” which alone pisses me off). I’ve been simply deleting them but the sheer number of the e-mails I’ve gotten over the last few months is truly staggering, maybe one every other week. There is no other issue facing the beer industry that’s received that kind of attention from a trade organization since they talked about changing the way that breweries are taxed. And it doesn’t even directly relate to beer, just the companies themselves. Today I got yet another one and it was the straw that broke the proverbial camel’s back. There has simply been far to much attention paid to this issue and far too much misinformation given the small number of people it will benefit. Even though the NBWA is a trade organization of companies that distribute beer, it’s seldom that I agree with their agenda, and this is a perfect example. It happens — take the Costco case in Washington — but generally they advocate for their members and that’s not always the same as what it is in the best interests of craft brewers, which is where my sympathies lie.

But their relentless pursuit of this estate tax agenda framed in terms of protecting family businesses from having their hard-earned money taken from them is, simply put: bullshit. The only people effected by the estate tax will be people whose estates are valued above a certain amount and chances are if you’re reading this you’re not someone who will be effected by it. 99% of the people in the U.S. will pass their estates on to their loved ones and pay zero income tax. So that begs the question “why is the NBWA so hot about this issue?” And the answer is simple. Because their membership is choked with a few mega-huge distributors who are part of the 1% that might have to pay something when one of their patriarchs (or matriarchs) sadly passes away. The “small family-owned businesses” that the NBWA goes on about saving is just propaganda. But at this point I’m beyond that epithet. Let’s call a spade a spade. It’s just bullshit. This is a few rich families using a trade organization for their own selfish ends. When their press release talks about “92,000 hardworking Americans” almost none of them will be effected by the estate tax, unless of course, the family decides to fire some of them rather than lose their country club membership.

To read the facts about about this issue, try Myths and Facts About the Estate Tax at Fair Economy. Or try Nolo Press’ assessment. And here’s an estate tax calculator at Americans for a Fair Estate Tax. There is also information at the IRS.

A report in late April by Public Citizen revealed that:

18 families worth a total of $185.5 billion have financed and coordinated a 10-year effort to repeal the estate tax, a move that would collectively net them a windfall of $71.6 billion.

Here’s the propaganda-filled NBWA press release:

As the Senate prepares for a possible vote on the [estate] tax this week, the National Beer Wholesalers Association (NBWA) is ensuring Senators know that America’s beer distributors need permanent relief from this onerous tax.

Earlier today, NBWA’s Federal Affairs team delivered a bottle of Blue Moon beer to each Senator. Each bottle was accompanied by a message urging Republicans and Democrats to set aside their differences and provide small businesses with permanent relief from the death tax once and for all.

“Beer distributors around the country have waited a long time for the Senate to act on the death tax,” said NBWA President Craig Purser. “Since it happens only once in a blue moon, we wanted to take the opportunity to remind Senators how important permanent death tax relief is to the small family-owned businesses that NBWA represents.”

Permanent relief from the federal death tax is a top legislative priority for the nation’s beer distributors. Many beer distribution companies have been family-owned and -operated since the repeal of Prohibition in 1933. Today, beer distributors employ more than 92,000 hardworking Americans. Aside from stripping these small business owners of their livelihood, the death tax can also cost the community jobs and economic output.

At the left is the marketing piece sent to every member of Congress urging them to repeal the estate tax, along with a bottle of Blue Moon beer. Below is the label to Blue Moon Belgian White Ale, the stealth micro owned by Coors, itself a rich family-owned company. Kind of ironic, isn’t it?

So what are we to conclude from the facts vs. the propaganda spewing out of the NBWA? I think it tells us a lot about the make-up of beer distributors nationwide. There are, of course, small beer distributors doing a great job of promoting and selling great beer. I personally know several of them, past and present, in California, Oregon and Washington. But I don’t think any of their interests are being served by squandering NBWA funds on fighting the estate tax. But I guess the little distributors don’t have much of a voice in a trade organization so obviously dominated by giant companies.

I think the reason this pisses me off so much is the misuse of emotional imagery about “America’s family-owned businesses.” All the rhertoric paints a distorted picture of reality that benefits a few rich families which — and this should not be overlooked — if they’re successful means the rest of us will be picking up their tab. If the estate tax is repealed and that money is no longer collected from these super-rich families then one of two things will occur. Either the services that money would have paid for will be cut or you and I will be paying higher taxes to make up the difference. That means small craft brewers and beer consumers will have to pay so that these super-rich beer distributor families can stay super-rich. Now how fair does that sound?

Miller Test Markets Caffeinated Malt Liquor

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Beginning today, Miller Brewing will be test marketing Mickey’s Stinger, a beer containing caffeine, guarana and taurine. The initial test makets will be Arizona, California and Nevada.

From the press release:

The new drink – which launches May 26 initially in Arizona, California and Nevada – features an infusion of caffeine, guarana and taurine. Honey added during the brewing process gives Mickey’s Stinger a light, smooth taste. The new malt beverage contains seven percent alcohol by volume (ABV) and will be distributed in 16-ounce single serve cans and six-packs of 16-ounce cans.

“Today’s 21- to 27-year-old consumer is looking for something different in their alcohol beverages and has responded with great enthusiasm to caffeinated malt beverages,” said Dan Hennessy, marketing manager for Mickey’s Brewing Company. “But these consumers will readily tell you they drink existing brands despite the taste, not because of the taste. That’s where we see real opportunity for Mickey’s Stinger. Mickey’s Stinger is an innovative and smooth tasting product that consumers will enjoy.”

Stinger is the first extension of the Mickey’s brand franchise in years. The brand, traditionally known for its distinctive taste, unique bottle and iconic hornet logo, has been a staple of the malt liquor category for decades.

Mickey’s Stinger will be competing against Anheuser-Busch’s Tilt (a malt beverage with caffeine, guarana, and ginseng), B-to-the-E (a fruit-flavored caffeine beer) and 24 Seven (a malt beverage with caffeine by Mix Master Beverage in Nevada, though it’s made in Wisconsin by City Brewing).

Gordon Biersch Releases Hefeweizen in Bottles

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Gordon Biersch has just released their German-style hefeweizen in 12-oz. bottles. Currently, they are available throughout northern California and parts of southern.

From the press release:

“Natural fermentation imparts distinctive notes of citrus and a magnificent effervescence, making our Hefeweizen the perfect beer for spring and summer,” said Dan Gordon, Gordon Biersch co-founder and director of brewing operations. “Hefeweizen has been one of our most popular seasonal draft brews for years. Crafted using traditional Bavarian brewing techniques and ingredients, it has a crisp taste and aromatic character that captures the essence of Bavarian-style unfiltered wheat beer unlike any other Hefeweizen on the market.”

Translated from German, Hefeweizen means “yeast and wheat.” Gordon Biersch uses a unique Bavarian yeast strain, 67% malted wheat and 100% Bavarian Hallertauer hops to achieve a fresh, effervescent beer with a distinctive flavor profile that includes hints of banana, bubble gum and clove. Naturally carbonated to a level 20% higher than most beers, it is a refreshing beer, perfect for warm weather.

Dan Gordon was the first American in more than 30 years to graduate from the prestigious five-year brewing engineering program at the world-renowned Technical University of Munich. Under his watchful eye, Gordon Biersch adheres to the strictest brewing standards in the world, using only the highest quality two-row malted barley, Hallertauer hops, and German yeast from Weihenstephan to brew its celebrated beers. In 1997, Gordon Biersch began bottling and distributing its famed brews with the opening of its 114,000-square-foot, state-of-the-art brewing and bottling facility in San Jose, California. The Gordon Biersch Brewing Company is now largest brewery in the Bay Area.

400-Year Old Ram Brewery to Close in Merger

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Two rival British brewers, Charles Wells and Young’s announced today that they will be merging, effective October 2 of this year. The new company will be named Wells & Young’s Brewing Company Ltd. All operations will be moved to Charles Wells’ Bedfordshire brewery and the Wandsworth Ram Brewery will be closed.

The Ram Brewery in Wandsworth (south London) is the oldest brewing site in England, having had a brewery at the location for over 400 years, since 1581, which was during the reign of Queen Elizabeth I. The Young’s family acquired the brewery in 1831 and have operated it there ever since.

The BBC is reporting the closure will cost about ninety jobs and will leave London with only two brewing giants, Fuller’s and Anheuser-Busch.

Reports in This is Money, a UK financial site, and The Morning Advertiser, a website dedicated to licensee’s (pubs), both have additional details on the merger.

From the press release:

The company will be owned 40 per cent by Young’s and 60 per cent by Charles Wells, reflecting the assets being contributed by each shareholder, which for Charles Wells include the freehold land and production facilities of the Eagle Brewery.

Wells & Young’s will be operated as an independent company, at arms length from its two shareholders. Both Young’s and Charles Wells will continue to operate their pub estates independently of each other and both have entered into separate three-year rolling (five-year minimum) supply agreements with Wells & Young’s.

Paul Wells and John Young toast the merger of their two companies.

Alaskan Brewing Finalist for Business Awards

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Okay, I admit it. I’d never heard of the American Business Awards or the coveted Stevie Award — Greek for “crowned” — before I received the press release from Alaskan Brewing Co.

But out of 1,500 companies who entered, Alaskan Brewing is a finalist in four categories: Best Marketing Team, Best Creative Team, Best Marketer and Best Corporate Communicator. That last one made me chuckle, because my friend Kristi Monroe is the person nominated for that award and she’s also the person who sent out the press release telling me about it. But she deserves to win, so I’ll be rooting for her to win. Founders Geoff and Marcy Larsen are great people and they’ve managed to assemble a great group of people.

Oh, and they make great beer, too. Geoff, who also literally wrote the book about smoked beers, makes one of the best smoked beers in the world. The Alskan Smoked Porter is one of those rare beers that continues to improve dramaticially with age. I did a great lateral tasting of four vintages of the Smoked Porter a number of years ago put on by All Saints Brands at GABF.

From the press release:

The Alaskan Brewing Company is a finalist in every category it entered in its first year competing for the coveted Stevie Awards. Winners will be announced at the Fourth Annual American Business Awards in New York on June 12.

Citing innovative marketing programs and collateral materials, Alaskan Brewing is a finalist in four categories: Best Marketing Team, Best Creative Team, Best Marketer and Best Corporate Communicator.

“Our Brew Crew put together a series of highly effective marketing programs that catapulted Alaskan Brewing growth, making it the leading West Coast craft brewer during 2005,” said Sales and Marketing Director, Fred Hees, finalist in the Best Marketer category.

Hailed as “the business world’s version of the Oscars” by the New York Post (April 27, 2005), the American Business Awards are the only national, all-encompassing business awards program honoring great performances in the workplace.

“With 1,500 nominees submitted for consideration, we are so excited to be recognized with the likes of Microsoft and other large corporations,” said Kristi Monroe, finalist for Best Corporate Communicator. “Despite being a small business on a conservative budget in a remote location of Alaska, we are producing quality programs and obtaining successful, measurable results.”

“Among the work recognized are our partnerships with the Iditarod Sled Dog Race, Alaska Airlines and Alaska Seafood,” said Brand Manager Cindy Burchfield, a key member of the Creative and Marketing teams, both of which are finalists. “We are thrilled to share this honor with these friends of Alaskan Brewing and our longtime supporters.”

Good luck guys, I’ll be rooting for you.

A-B Buys Rolling Rock

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Last week it was just a rumor, today it’s now official. Anheuser-Busch, in it’s drive to pick up new brands, has agreed to purchase the Rolling Rock brand from rival brewing giant InBev for $82 million.

Since Rolling Rock is not technically a craft brewer, buying them is perhaps a little more curious than their courting of other craft brands. But Rolling Rock was sold, nationally at least, beginning in the 1980s as if it were a microbrewery. This was done quite successfully and it did in fact create a pretty good image for itself when their weren’t very many national micros. Those of us who grew up in Pennsylvania weren’t fooled but generally speaking the unsophisticated beer consumer believed — and perhaps still believes — Rolling Rock is a craft beer. And I think it’s that very quality, it’s status as essentially a faux micro, that makes it ideal as an A-B product. A-B is very good as selling brands as much more than they are in reality so this will, I think, be a marriage made in heaven, albeit a heaven with no real beer.

From the press release:

Introduced in 1939 by Latrobe Brewing Co. and acquired by InBev’s Labatt U.S.A. in 1987, Rolling Rock is an historic American lager that is well-known for its distinctive, full-bodied taste and painted green bottle. Rolling Rock has established itself as an authentic, iconic American lager with a loyal following.

Anheuser-Busch acquires the Rolling Rock brands and recipes with the transaction, and will now start to work with the existing Rolling Rock wholesaler network and Anheuser-Busch wholesalers to define plans for the future. Anheuser-Busch will begin brewing Rolling Rock and Rock Green Light in August using the brands’ same time-honored recipes, maintaining Rolling Rock’s craftsmanship and heritage that its fans expect and appreciate. Internationally, Rolling Rock will continue to be sold in the United Kingdom and Ireland.

“We have an ideal opportunity to grow this historic brand,” said August A. Busch IV, president of Anheuser-Busch Inc. “This beer is not like others, and its consumer following is equally distinctive. We live in a diverse world where consumers are hungry for variety. Acquiring Rolling Rock enables us to reach a new audience and to continue building our broad portfolio of products that meet the wide-ranging needs of consumers.”

InBev plans to sell its brewery in Latrobe, Pa., separately to focus its U.S. business on imported beers. It is in discussions with potential buyers to determine the best available options for the brewery and its employees.

“The decision to sell the Rolling Rock brands was based on InBev’s strategic approach to the U.S. market, which is to focus on the high-growth import brands in our portfolio,” said Doug Corbett, president of InBev USA. “Our sales and marketing efforts will emphasize our leading imported beers, including Stella Artois, Bass Pale Ale, Beck’s, Brahma and Labatt Blue.”

Glen Hay Falconer Foundation Scholarships Announced

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The Glen Hay Falconer Foundation announced today the two recipients for this year’s brewing scholarships to the Siebel Institute in Chicago. This year congratulations go to Chad Kennedy, the newly named head brewer of Laurelwood Public House & Brewery and Ben Millstein of Kodiak Island Brewing. Kennedy and Millstein will attend the World Brewing Academy’s Concise Course in Brewing Technology held at Siebel Institute of Technology’s Chicago campus this November.

From the press release:

The Selection Committee, consisting of Tom Dalldorf of Celebrator Beer News, Jamie Floyd of Ninkasi Brewing Company, John Harris of Full Sail Brewing, John Maier of Rogue Ales, Ralph Olson of Hopunion, Shaun O’Sullivan of 21st Amendment Brewery, and Chris Studach of Cascade Brewers Society were tasked with selecting only two recipients from a deep and talented group of 25 deserving candidates. Speaking for the entire committee, one member highlighted the challenge: “The group of applicants was just too big and too talented to chose only two. It was the toughest decision that I have faced in years!”

In making its final decision, the Selection Committee members were impressed by Chad and Ben’s demonstrated accomplishment and dedication to furthering their brewing skills. In the words of a committee member: “Chad’s accomplishments in a fairly short time are only overshadowed by his clear desire to succeed in brewing. Perhaps even more important is his understanding of the open and sharing nature of the brewing community and his strong motivation to give something back to it.” And for Ben: “Ben’s dedication to the art of brewing is hugely obvious. To overcome the obstacles he has from a beginning homebrewer in remote Alaska, to successfully found and operate a homegrown, Alaskan brewery is inspiring.”

The Foundation extends congratulations to Chad and Ben and sincere appreciation to all the applicants for their interest and enthusiasm for the brewing scholarships. The Foundation also thanks the Selection Committee for its dedication and energy and wishes to express its deep gratitude to the Siebel Institute for its co-sponsorship and its continuing support for the Foundation’s brewing scholarship program.

The foundation honors the memory of iconoclastic brewer Glen Falconer, who died in a tragic accident in 2002. He brewed at Wild Duck Brewery in Eugene, Oregon.

SABMiller Reports Drop in Profits, Rise in Earnings

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The Associated Press (AP) indicated today that “SABMiller reported a 5.3 percent drop in full-year profits.” Though confusingly, only a 4% drop in pre-tax profits is listed in the press release from SABMiller. The decline is blamed primarily on Miller’s price wars with A-B and Coors.

Reuters take on this story, in contrast, was that “SABMiller posted an 8 percent rise in annual earnings.” It’s interesting to see how the same story is framed by two different mainstream news services.