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» Beverage Industry News

Beverage Industry News

A-B passes 50% mark

posted Apr 24th, 2003 by Pat Hagerman

It’s not official yet, but based upon first quarter beer shipments Anheuser-Busch now owns more than half the United States beer market.

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Boston Beer Down 1.8% First Quarter

posted Apr 23rd, 2003 by Pat Hagerman

The Boston Beer Company, Inc. announced last week first quarter 2003 volume, revenue and earnings compared to the first quarter 2002. For the 13-week period ended March 29, 2003, reported sales volume for the period was 270,000 barrels, a 1.8% decline from prior year. The Boston Beer Company recorded net sales of $45.3 million, a 0.7% decline from the 1st quarter in 2002. Net revenue per barrel increased by 1.1% during the quarter due to product mix changes and normal price increases. The Company recorded a net loss of ($109,000) or ($.01) per diluted share for the quarter versus net income of $1.3 million and $.08 per diluted share for the same period last year. Gross margins as a percent of net sales were 58.6% as compared to 59.5% in the prior year first quarter. The decrease in gross profit is due to a combination of factors including adjustments to the returns allowance to reflect increased wholesaler inventories, particularly of seasonals; and increased brewery operating costs in Cincinnati, that were partially offset by normal price increases. Significant changes in operating expenses included increased advertising and promotional expenses, primarily related to the continued support of Sam Adams Light. Boston Beer Brand distributor sales to retail (depletions) totaled 252,000 barrels, approximately a 2% increase from the same period 2002. Shipments and orders in-hand suggest that core shipments for April and May 2003 will be down approximately 13% as compared to the same period 2002. Actual shipments for the current quarter may differ, however, and no inferences should be drawn with respect to shipments in future periods.

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Brewery Director Admits Plotting To Contaminate Strongbow

posted Apr 23rd, 2003 by Pat Hagerman

Brewery director Michael Hancocks has admitted plotting to contaminate the products of rival firm Bulmers – which produces Strongbow and Woodpecker – so they would be recalled. Bristol Crown Court heard Hancocks was the instigator and prime mover in the plan to pour yeast-based contaminants into the production line of HP Bulmer. Hancocks’s British firm, Birmingham-based Aston Manor Brewery, was in direct competition with Bulmer’s in the cider market, and the court heard the 63-year-old had considerable animosity towards the rival company. Hancocks, of Hafod Road, Hereford, pleaded guilty to conspiracy to defraud Hereford-based Bulmer’s by introducing yeast-based contaminants into their products between August 31, 2001 and April 5, 2002.

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Interbrew wants more women drinkers

posted Apr 23rd, 2003 by Pat Hagerman

Two large brewing companies say its time to make women an important part of beer advertising — and they’re not talking about bikini-clad babes.

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Sea Dog Reopens

posted Apr 14th, 2003 by Pat Hagerman

Shipyard Brewing Co. in Portland, ME has reopened two of the three Sea Dog brewpubs that it purchased last winter after the Sea Dog Brewing Co. declared chapter 7 bankruptcy. The Sea Dog in Topsham, ME has been serving customers since February, minus its brewing equipment. Topsham Pale Ale, an English-style pale ale, is being brewed especially for the pub by Shipyard, according to Shipyard co-owner and brewmaster Alan Pugsley.

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Barton Beer Awards Ad Account for Peroni and Tsingtao

posted Apr 14th, 2003 by Pat Hagerman

In an attempt to extend the Peroni and Tsingtao brands beyond their core markets, Barton Beers named independent shop Hadrian’s Wall of Chicago, the advertising agency of record for the two imported beer brands. The agency will produce print and outdoor work for Barton’s Peroni and Tsingtao brands that will break any time between this summer and next spring. “Tsingtao is the No. 1 Chinese beer brand and Peroni is No. 1 Italian brand and both are easy to drink so they have potential to grow,” said Kevin Lynch, Hadrian’s Wall partner and writer. The contract raises its client roster to six, with billings totaling $17 million in 2002 for the 2-year-old agency. “This gets us into a category we know well,” said Mr. Lynch, who has worked on Anheuser-Busch brands, Barton’s Corona brands, and Stevens Point Brewery’s Point Beer while at previous agencies.

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Former Seagram Exec Is New Scottish & Newcastle CEO

posted Apr 14th, 2003 by Pat Hagerman

Scottish & Newcastle Plc has named Tony Froggatt, a former executive of the Seagram wine and spirits group Seagram, as its new chief executive on Thursday, to steer Britain’s biggest brewer through a quickly consolidating industry. The British brewing giant, which makes of Kronenbourg, Foster’s, and Baltika beers, and owns 1,500 pubs in Great Britain, said Froggatt, 54, would join the firm on May 12, drawing a basic salary of 630,000 UK pounds ($985,900). Analysts and investors said Froggatt was not well known to the British brewing industry but had a strong background. “He’s got a good European background, which is where Scottish & Newcastle (S&N) are positioned now,” said David Liston, a fund manager at Gerrard Ltd. “He’s also got good experience in brands, which is obviously the key area at present,” he added. Some analysts were also pleased the firm had appointed an external candidate. Some analysts had expected the job to go to Finance Director Ian McHoul, who while widely respected is perceived by some to be too close to the long-standing head of the firm, Brian Stewart. S&N said Stewart would hand over his executive responsibilities to Froggatt and become non-executive chairman as of July 1.

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Little Guy Brings Quality Beer to Valley of the Sun

posted Apr 14th, 2003 by Pat Hagerman

At this year’s Phoenix’s Great Arizona Beer Festival, among the 100-plus breweries pouring samples this weekend, there are a few new tastes on tap, thanks in large part to Valley upstart Little Guy Distributing. The year-old company will have three booths representing six breweries, which make up two-thirds of its list of suppliers. Little Guy is aptly named for it’s tiny size, but it’s big news to metro-Phoenix beer geeks, because it specializes in high-end, lesser-known brands that otherwise wouldn’t be available in the Valley. One example is Sonoma County’s superlative Bear Republic Brewing Co. Brewmaster Richard Norgrove Jr. says his company hadn’t planned to expand into Arizona until Little Guy made a pitch.

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7-Eleven to challenge imports

posted Apr 10th, 2003 by Pat Hagerman

7-Eleven convenience stores, part of the largest such chain in the United States, will sell their own label of imported beer. They plan to undercut prices charged by major import brands.

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Stronger beer for Georgia?

posted Apr 9th, 2003 by Pat Hagerman

The Georgia House of Representatives has approved a bill that would raise the maximum alcohol content of what is defined as beer from 6% to 14%, sending the measure to the Senate.

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German beer blues

posted Apr 7th, 2003 by Pat Hagerman

The introduction of a 25-cent deposit on throwaway cans has dealt the struggling German brewing industry another blow. Beer sales have fallen 10% since the deposit was introduced in January.

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German beer blues

posted Apr 7th, 2003 by Pat Hagerman

The introduction of a 25-cent deposit on throwaway cans has dealt the struggling German brewing industry another blow. Beer sales have fallen 10% since the deposit was introduced in January.

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Alaskan Brewing Adds Tanks to Accommodate Growth

posted Apr 7th, 2003 by Pat Hagerman

New tanks were installed at the Alaskan Brewing Company last week to meet growing demand in the Pacific Northwest. The large stainless steel tanks were manufactured in Missouri, shipped across the country to Seattle then barged up to Juneau. “The success of the Seasonal Alaskan Summer Ale in addition to increased demand for our year-round products this year made additional tanks a necessity,” says Plant Manager, Curtis Holmes. “We are geared up for a great year.” It appears to be just in time as early 2003 numbers show Alaskan Brewing Company up nearly 15%.

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Lion Brewery Gets Organic Certification – Brews Organic Soda

posted Apr 7th, 2003 by Pat Hagerman

The Lion Brewery Inc. in Wilkes-Barre has become the first Pennsylvania brewery to be certified organic under the new rules promulgated by the U.S. Department of Agriculture last October. In March the brewery began producing its first organic product, a green tea-flavored soft drink called Steap Soda.

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Better with age

posted Apr 3rd, 2003 by Pat Hagerman

Imperial Eclipse Stout from Flossmoor Station Brewing Co. won Best of Show during judging for the first Illinois Brewers Guild Barrel-Aged Brew Fest.

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French give up on surcharge

posted Apr 2nd, 2003 by Pat Hagerman

Bowing to pressure from the European Union Commission, the French Finance Ministry said Wednesday it has scrapped a special tax on strong beer. The French had suspended the tax in February.

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Beer tax protest

posted Mar 31st, 2003 by Pat Hagerman

Wasatch Brewery owner Greg Schirf will step back in time this week to protest a tax bill that raises already high beer taxes in Utah.

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Fish Brewing Co. Announces USDA Organic Certification

posted Mar 27th, 2003 by Pat Hagerman

Fish Brewing Company has announced the release of Fish Tale Wild Salmon Organic Pale Ale, the Brewer’s latest certified organic product. Fish Tale Organic Amber Ale and Fish Tale Organic India Pale Ale earlier earned USDA Organic Certification. These three year-round products have been Certified Organic by the Washington State Department of Agriculture. “We feel that going organic has been the best possible choice for our Company and our customers,” said Crayne Horton, founder of Fish Brewing. “We’ve made a clear commitment to environmental protection, and that decision has made Fish Brewing a stronger company financially, a better place for its employees to work, and a better choice for environmentally conscious consumers. Brewing and selling organic beer has been a win/win situation for all of us.”

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Malternatives May Be Impacted by Proposed Federal Regulations

posted Mar 27th, 2003 by Pat Hagerman

Malternative producers may be required to make changes in its formulation, labeling, and advertising as a result of new regulations proposed by the U.S. Alcohol and Tobacco Tax and Trade Bureau. The proposals would limit the alcohol contribution from flavors and other ingredients containing alcohol to 0.5 percent by volume. It also proposed that the majority of the alcohol in the beverage would be derived from the malt base, and includes additional regulations on labeling and advertising for the beverages.

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La Crosse’s City Brewery to Sell Beer in Chicago Area

posted Mar 24th, 2003 by Pat Hagerman

City Brewery, the successor company that has taken over the former G. Heileman brewery facility in La Crosse, Wisconsin, has been expanding distribution of its own beer brands into the Chicago area. Metropolitan = Chicago was the G. Heileman Brewery’s largest market. Jon Reynolds, City Brewing Co.’s director of sales and marketing predicted last week that the Chicago area will again become the largest market for the La = Crosse brewery’s products. “I’m thinking it will be two to three years” before the Chicago area replaces the La Crosse area as the brewery’s largest market, he told the La Crosse Tribune.

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