I just got into my hotel room in Seattle. I’m in town for the Hard Liver Barleywine Festival over at Brouwer’s, though I’ll first be attending a cheese and beer tasting courtesy of Alan Shapiro’s SBS Imports, and then a whisky tasting tonight.

Anyway, I came across an interesting little factoid in a magazine I was reading on the plane. I can’t verify its accuracy or its source, but it’s interesting all the same.

The “estimated number of drunk people in the world at any given moment” is 46,948,952, or nearly 47 million. With an estimated current world population, as I write this, of 6,894,222,276 or roughly 6.9 billion, that means a mere 0.68% of the world — less than 1 percent — is inebriated at any given time. That doesn’t sound like very many drunks in the world when expressed that way, now does it?

In a disappointing editorial in today’s San Francisco Chronicle entitled Liquor By Any Other Name, the lie that alcopops, malternatives, and FMBs contain spirits is once more trotted out in what appears to be wholesale propaganda rather than honest editorializing.

Last year, the California Board of Equalization apparently bowed to pressure from anti-alcohol groups and reclassified FMBs as spirits, despite the fact that they DO NOT contain spirits. I wrote about this deception last year when the BOE passed the new rules. At that time, Michael Scippa, advocacy director for the Marin Institute, was using the tactic of repeating a falsehood in the hopes that eventually people would take it as a fact. I won’t dignify it by repeating it here, but this was my response.

That’s not true, they are malt beverages with flavoring added. Distilled spirits are not added and it is not where their “alcoholic content” is derived from. They are most closely related to beer, which is precisely why they they are called flavored malt beverages and why they have been taxed like beer. Their alcohol content is likewise about the same as the average beer. They are fermented like beer and then chemical flavoring compounds are added, which give FMBs their distinctive sweet, fruity essence. Unlike attorney Scott Dickey’s assertions, which in fact are mischaracterizations, FMBs are exactly what their name suggests, no one has deceived anyone.

In the editorial, they state that revenues of $38 million were expected from the reclassification, but that only about $9,000 in taxes has been paid. Apparently, FMB manufacturers in response re-formulated their drinks to remove even the chemical essence of their spirits flavors and — probably, this is just a guess — used strictly chemical flavorings not derived in any way from their spirits. If the new law says, however ridiculously, that no spirits whatsoever can be in these drinks, then they did what any logical person would do, they removed them. But because this has nothing to with fairness, this has our editorialist up in arms. Here’s how they put it.

The manufacturers admit that they’re not paying the tax, and — get this — they don’t think they need to, because over the course of the last year they’ve managed to “alter” the drink formulas of thousands of these beverages so that they’re technically beers, not liquor.

Well, get this, they always were “technically beers” and no amount of wishing otherwise will change that fact. They never were “liquor,” only the BOE changed the definition so that the inclusion of any amount of “spirits” would reclassify them as “liquor” for purposes of taxation. That in no way magically converted them into a liquor. It’s in a sense the same way that a person with any African-American blood in them, no matter how distant, once made them classified as a black person in our more racist past. An ugly example, to be sure, but that’s exactly what the neo-prohibitionists are doing, making it seem as if a 5% a.b.v. FMB is the same as a bottle of 100 proof whisky just because it contains an infinitesimal amount of the essence of a spirit flavoring. And then the editorial has the audacity to call the FMB manufacturers “disingenuous, if not deceptive.” Oh, and just to illustrate how much they don’t understand this issue, there are about twelve manufacturers of FMBs, each making perhaps no more than a half-dozen brand extension flavors, nowhere near the “thousands” that the editorial asserts.

According to current law, the state has no right to look at the formula itself. The federal agency known as the TTB has that express function. But the editorial doesn’t like that fact, calling the alcohol industry “dangerous” — now who’s being disengenuous? — because, as they put it, the TTB “seems more interested in protecting so-called trade secrets than in helping the state of California regulate a dangerous industry.” Oh, now suddenly it’s about “regulating” the industry. See here I thought they were trying to extract taxes from the FMB manufacturers. Please.

So on Tuesday, the BOE voted 3-2 to request that FMB manufacturers hand over their formulas, even though the Feds have already reviewed and approved them. But the agenda is revealed in the editorial’s last sentence, naturally. “California’s congressional delegation needs to ask federal regulators why they’re siding with these manufacturers instead of public health and the state’s fiscal interest.” And just a paragraph before it was all about regulating the “dangerous” industry. Now, it’s about money. Oh, and the trumped up claim of “public health,” the slightly classier version of “it’s for the kids” argument that’s ubiquitous in the New Drys’ quiver of propaganda.

I’m pretty tired of these arguments, but here goes, again. Yes, California is in the throes of an economic crisis, just like most other states and our federal government, too. But that does not mean it’s appropriate to target one industry to foot the bill. If the state needs more money — and it does — then that burden should be shouldered by all of us, equally. Period. And the “public health” interest is supposedly all about not wanting underage kids to drink FMBs. Well, unless I missed something, it’s already illegal for them to do so, just like it’s illegal for people under 21 to drink beer, wine or liquor. This is an issue of enforcing current laws. Period. The New Drys’ stated agenda for raising the taxes on FMBs is to make them more expensive for teens to buy, which in their collective mind means that it will reduce consumption among our state’s youth. It’s a deeply flawed strategy, and punishes virtually everyone along the supply chain, from manufacturer to adult consumer.

In the end, for me the most troubling aspect of these propagandist editorials is that the reason most neo-prohibitionists want to remove alcohol from society is on moral grounds. That’s the root reason, though getting there is couched in the typical rhetoric of protecting children and society from harm. I could accept the moral arguments if I felt that the tactics used were themselves moral, but they’re not. It’s very hard for me to have someone lecture me about morals through propaganda that spreads lies and falsehoods to further a supposedly “moral” cause, freely using an “ends justify the means” approach. To me, that’s the very definition of disingenuous and deceptive.

Twitter is headquartered in China Basin, the neighborhood in San Francisco that also holds the Giants Ballpark. It’s also where the brewpub 21st Amendment is located and the pair have teamed up to creat a tweet, er sweet, beer for Twitter.

From the press release:

Today, the 21st Amendment Brewery is brewing a special Twitter Brew for their neighbors in South Park at Twitter.com. “Spring Tweet” is a Spring-time ale, brewed with Barley and wheat malt with a subtle hop flavor and aroma and a very quaffable beer at a mere 5% alcohol by volume. The beer will be released on Monday April 6th.

“The Twitter community has been very supportive of the 21st Amendment and we really wanted to give something back to the community,” says Brewmaster and co-owner of the 21st Amendment Shaun O’Sullivan. The Twitter community has held many “Tweetups” at the 563 2nd Street location, across the street from the company’s headquarters in South Park. Tweetups are an opportunity for the Twitter community to meet up and come together in person, rather than over the 140 character limit on Twitter.

The 21st Amendment is active on Twitter and posts “tweets” at www.twitter.com/21stAmendment , and will be posting twitter updates and pictures throughout today’s brew of “Spring Tweet.” Search for #twitterbrew on the Twitter search at http://search.twitter.com/ . Twitter is supporting the brewing project, donating t-shirts and tweets to the 21st Amendment. “We even put out to the Twitter community a ‘name the Twitter brew’ contest and have received some excellent names and ideas for today’s brew,” says co-founder of the 21st Amendment, Nico Freccia.

 
You can also follow the me and the Brookston beer Bulletin on Twitter, too.
 

One of the best and coolest new festivals in the Bay Area is the Firkin Gravity Festival, now in its sixth year. It will take place this year on April 4, beginning at 11:00 a.m. It’s a great opportunity to sample barrel-aged and cask beer from at least twenty California breweries. This is one you should definitely plan on attending. See you there.

 
4.4.2009

Bay Area Firkin Gravity Festival (6th annual)

Triple Rock Brewery, 1920 Shattuck Avenue, Berkeley, California
510.843.2739 [ website ]

There’s one month to go until the premiere of the new documentary film Beer Wars, opening in 440 movie theaters April 16. If you’re a craft beer lover, you should see the film, which is described as follows.

In America, size matters. The bigger you are, the more power you have, especially in the business world.

Director Anat Baron takes you on a no holds barred exploration of the U.S. beer industry that ultimately reveals the truth behind the label of your favorite beer. Told from an insider’s perspective, the film goes behind the scenes of the daily battles and all out wars that dominate one of America’s favorite industries.

Beer Wars begins as the corporate behemoths are being challenged by small, independent brewers who are shunning the status quo and creating innovative new beers. The story is told through 2 of these entrepreneurs — Sam and Rhonda — battling the might and tactics of Corporate America. We witness their struggle to achieve their American Dream in an industry dominated by powerful corporations unwilling to cede an inch.

This contemporary David and Goliath story is ultimately about keeping your integrity (and your family’s home) in the face of temptation. Beer Wars is a revealing and entertaining journey that provides unexpected and surprising turns and promises to change the world’s opinion on those infamous 99 bottles of beer on the wall.

If you’re like me, you probably want to see the movie and think you’ll get around to it as soon as it’s convenient. And ordinarily, I’d agree. It’s not really important when you see it. Except, this time it is important. If humanly possible, try to see Beer Wars on its opening day, April 16, and for the live show taking place at 8:00 p.m. ET, 7:00 p.m. CT, 6:00 p.m. MT and 8:00 p.m. PT.

Fathom and Ducks In A Row Entertainment present Beer Wars LIVE with Ben Stein, a one night event taking you inside the boardrooms and back rooms of the American beer industry. The event will feature the exclusive never-before-seen documentary Beer Wars, followed by a riveting live discussion led by Ben Stein with America’s leading independent brewers and experts.

Playing in movie theaters nationwide on Thursday, April 16th at 8pm ET / 7pm CT / 6pm MT / 8pm PT (tape delay), beer industry insiders will take you behind-the-scenes of their quest for the American Dream. Don’t miss out on this entertaining journey that will reveal the truth behind the label of your favorite beer!

If you’ve paid any attention before a film began, even before the trailers, perhaps you’ve noticed a new phenomenon that’s been happening at movie theaters for about two years. They’ve been showing live, one-night-only shows, things like opera performances from the Met, for example. Using a satellite feed, you could watch a live event while it’s happening on a giant movie screen. And that’s what Beer Wars Live will be. After the regular film, several of the people who were in the film, such as Sam Calagione, Charlie Papazian, Maureen Ogle and several more will have a lively discussion about the state of beer, interspersed with some additional short mini-films, stuff that you’ll only be able to see that night. It will be hosted by Ben “Bueller, Bueller” Stein.

But more importantly, to have a huge turnout, say 100,000 people all turn up to see the “beer” movie April 16, would send a very cool message. So far, the most they’ve gotten for anything is about 80,000. So to beat that record would make it newsworthy in and of itself, and would be great publicity for the craft beer industry. In 440 theaters, getting 100K would only involve 227 people per movie house, so it doesn’t sound too terribly difficult. I already know of quite a few people and breweries who are throwing after parties at nearby bars after the Beer Wars Live show concludes, so you can conceivably make a whole night of it. If you don’t know of one in your area, nobody’s stopping you from starting one. That’s what Facebook and Twitter are for.

So grab as many friends as you can, especially the ones who don’t currently drink craft beer, and drag them to one of the 440 theaters. Here’s a list of all the theaters, by state, where it will be showing. Just follow the screening instructions, which are simple enough. Find your closest theater, buy your tickets online, which you can do at at least five ways, depending on your theater.

As for the Bay Area, it’s showing in at least 17 theaters, so let’s fill ’em up. 227 times 17 is less than 4,000 people. How hard can that be?

The reason I’m convinced this could be a momentous event and we should strive to make it one, is because there has never been a better time to get bigger, widespread support for all the small, local and regional craft breweries. Yes, the big breweries create lots of jobs, too, but then so does Wal-Mart. The problem with supporting a large corporation is the that the money they take in does not stay in the local area, but is taken out of the local economy and ends up somewhere else, possibly even outside the country. With our economy on the skids, supporting small and local businesses has never been more important.

Beer Wars is nothing new. The war itself has been quietly raging for years and years. But only insiders have been aware of it and even fewer still have been willing to admit it and talk about it publicly. This film should blow the lid off of that and make honest debate at least possible. That would be a great first step in bringing more people over to the craft beer side. Just like Star Wars, the craft beer movement is the rebellion and we’re fighting the empire for galactic beer domination. Once enough people realize we’ve got Han Solo, Luke Skywalker, Princess Leia and the Ewoks on our side, how could anyone possibly continue to support the dark side?

Still not convinced. Watch the trailer. Let the fermentation be with you.

Lagunitas Brewing, at the end of last year, released their fifth Frank Zappa beer, with a label based on Zappa’s 5th album, Cruising with Ruben & the Jets. The record was originally released December 2, 1968. The beer is 8.6% abv and is essentially Lagunitas’ take on an Imperial Stout.

I heard a rumor today that this may be the last of the Zappa beers, which seems a shame. I’ll see what I can find out next week.

We’ve lived in Marin County five years now, and I’ve never managed to attend the Fairfax Brewfest. For various reasons, I’ve always been out of town whatever weekend it’s been held. But not this time, so I was happy to finally be able to go. This year was their 14th annual festival, and I carpooled down with my friend Brent Ainsworth, who’s an editor and reporter with our local paper, the Marin I.J. There was a baker’s dozen of breweries there at the Fairfax Pavilion, a small old wooden structure ideal for the event.

Because it was the weekend before St.Patrick’s Day, green was the predominant choice of clothing for most festival attendees, such as these three young ladies, who were typical of the festival crowd. It was a cool venue, a good crowd and some tasty beers. What more could you ask for in a small town beer festival?

For more photos from this year’s Fairfax Brewfest, visit the photo gallery.
 

Beer writer Greg Kitsock had an interesting piece in the Washington Post recently, in which he tackled trickle-down economics as applied to the beer industry. It’s called Beer: Trickle-Down Economics and examines what’s going on with beer sales during the current recession, a topic I’ve been speculating on frequently myself. It’s worth a read.

KPS Capital Partners (KPS), which manages “a family of private equity limited partnerships with over $1.8 billion of committed capital,” created a new division called North American Breweries, Inc. (NAB). The new division, NAB, was formed to be the umbrella organization directing three new acquisitions by KPS; High Falls Brewing, Labatt USA and a perpetual license to sell Seagram’s Cooler Escapes and Seagram’s Smooth.

The sale of Labatt USA was mandated by the U.S. Department of Justice as a condition of approving InBev’s purchase of Anheuser-Busch last year. The financial terms were not disclosed, but apparently the DOJ has already approved the deal.

As far as I can tell, there’s no website set up yet for NAB, just this NAB page at the KPS website.

From the KPS press release:

Raquel Vargas Palmer, a Partner of KPS, said, “The Labatt USA acquisition completes the foundation of the North American Breweries platform. My partners and I are very pleased that Rich Lozyniak will serve as CEO of the new company, following two exceptional tenures with other KPS portfolio companies. We are confident that Rich and the North American Breweries management team will enhance the company’s value through acquisitions and many other exciting initiatives that drive organic growth of the company and its brands.”

And here’s how they describe their new entity:

About North American Breweries, Inc.

North American Breweries is a national platform for investments and growth in the beer and malt beverage industries. Formed in 2009, North American Breweries owns High Falls Brewing Company, one of the largest and oldest continually operating breweries in the United States, and is the exclusive marketer and seller of Labatt brand beer and Seagram’s Coolers in the United States. The company’s brands include the complete line of Labatt beers, including the flagship pilsner Labatt Blue and Labatt Blue Light; the Genesee line and the Dundee Ales & Lagers family, which includes the Original Honey Brown Lager; and Seagram’s Cooler Escapes and Seagram’s Smooth. It is also America’s exclusive distributor of several imports, including Steinlager from New Zealand, Toohey’s New from Australia, Thwaites from the U.K. and Imperial from Costa Rica; and a manufacturer of beer and other alcoholic and non-alcoholic beverages under contracts on behalf of other companies. North American Breweries is a portfolio company of KPS Capital Partners, LP.</blockquote

 

At the end of last month, the Brewers Association released the calendar year 2008 sales and volume numbers. Craft beer gained 5.8% over 2007 by volume and 10.5% by dollars.

From the Brewers Association press release:

Overall share of the beer category from craft brewers was 4.0 percent of production and 6.3 percent of retail sales. More than 1 million new barrels of beer were sold in 2008, and close to half of those barrels were beer from craft brewers.

“2008 was a historic year for beer with the large brewers consolidating and imports losing share, while the top ten selling beer brands dropped in sales. At the same time, small independent craft brewers continued to gain share and attention,” said Paul Gatza, Director of the Brewers Association.

With total U.S. beer being more than a $100 billion industry, the Brewers Association estimates the actual dollar sales from craft brewers in 2008 were $6.34 billion, up from $5.74 billion in 2007. Taxable barrels of the total beer category was 1,210,018 more in 2008 with craft brewers producing 473,364 of those barrels. Total craft brewer barrels for 2008 was 8,596,971, up from 8,123,607 barrels in 2007.

Beer’s popularity as America’s favorite fermented beverage continued in 2008 with Gallup stating “beer is back to a double-digit lead over wine.” Taking into account the challenges in today’s economy, BevincoNielsen released a survey showing beer was faring better than spirits, with wine lagging. The Brewers Association emphasized trading across from wine and spirits to beer continues, with some of today’s wine drinkers discovering the affordable enjoyment and rewards of craft beer.

These increases in share and barrels for craft brewers come at a time when, according to the Brewers Association, the cost of operating a small brewery increased over 39 percent in the period of November 2007 to November 2008. The Brewers Association states that today’s craft brewers face many challenges including:

• Access to ingredients and raw materials
• Increased pricing for materials and supplies
• Access to market (competition for shelf space at the retail level)

The good news is more breweries again opened than closed in 2008, and far fewer closed in 2008 than the year before. The number of American breweries has finally topped 1,500. In fact, the new total is 1,527, of which 1,483 are considered craft breweries.

On the downside, brewpubs were down 2% and contract beer was down 9%. On the upside, regional breweries were up 10% and microbreweries up 13%. The overall beer market is up 0.4% and accounts for approximately $101 billion.

 
If you’re a sucker for numbers, check out the craft statistics page.