Beverage Industry News

Pyramid buys Portland Brewing

posted Jan 27th, 2004 by Pat Hagerman

Two of America’s first modern day craft brewers will soon be one. In what is easily the most important specialty beer story of 2004 and one of the biggest in the brief history of craft breweries, Washington-based Pyramid Breweries announced it will acquire the brewing and brewery-restaurant operation of Portland’s Portland Brewing. The deal will make Pyramid the third largest craft brewer on the West Coast, behind only Sierra Nevada Brewing and Redhook Ale Brewery.

As far as singular news events, this is a top ten story. It is the first acquisition of it’s kind, and displays the maturity of the category. The industry will likely see more mergers and acquisitions of this dimension in the future.

There have been other large deals, some involving the largest breweries in the country, and Pyramid CEO Martin Kelly alluded to them in a company press release. “The craft brewing business is very competitive and changes daily. To stay ahead, breweries must keep moving forward,” he said. “Some breweries have chosen to go the route of aligning themselves with large, multinational, industrial brewers. We believe that approach can stifle creativity and lead to less choice for consumers. Our approach aligns two independent Northwest breweries and retains the creativity and integrity craft brewers are known for.”

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Bock-ful of chocolate

posted Jan 26th, 2004 by Pat Hagerman

Samuel Adams has produced a limited edition Chocolate Bock just in time for Valentine’s Day. Boston Beer Co., brewer of Sam Adams beers, made just 50,000 wine-size bottles of the beer for the entire country. Each carries a retail price of $14-15.

“People come in and look for them. I get customers who come in and tell me what’s coming out and say they want me to get them some,” Rich Valerius, beverage manager at Keller’s IGA in Clifton. told the Cincinnati Post. “They’re like kids in a candy store.”

Unlike several other high-priced high-alcohol beers from Boston Beer (Sam Adams Triple Bock, Millennium, and Utopia) Chocolate Bock is designed to be consumed immediately rather than aged. Like the higher alcohol beers, it comes in a special bottle, in this case with an embossed pewter.

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Anti-aging bier

posted Jan 16th, 2004 by Pat Hagerman

A German brewery will cater to consumers who hope to find beer in the fountain of youth. The brewery has developed a beer contain vitamins and minerals it says are designed to slow the aging process.

The Neuzeller Kloster Brewery plans to introduce its “Anti-Aging-Bier” this year and sell it in grocery and drug stores, a spokesman for the company said.

“It tastes like beer more than it tastes like anything else,” the spokesman told Reuters.

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Let there be beer lights

posted Jan 15th, 2004 by Pat Hagerman

The end of a ban in place since the end of Prohibition allows Michigan bars, restaurants and retailers to hang neon signs in their windows.

Attoney General Mike Cox ruled that the 70-year-old law against illuminated signage was a constitutional free speech violation. The opinion affects signs for all alcoholic beverages, though most are for beer.

Bar and restaurant owners praised the decision, saying the Michigan Liquor Control Commission ban on lighted signs, clocks and other beer-related knick-knacks was an unreasonable restriction on commercial speech and advertising freedom.

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Alcatraz Brewing Assets to be Offered at Auction

posted Jan 14th, 2004 by Pat Hagerman

Alcatraz Brewing Company in Tempe, Arizona has contracted with a food service equipment auction firm to liquidate the assets of the brewery and restaurant. Grafe Auction Company will be conducting an onsite public auction at Alcatraz on Monday, January 19, 2004 starting at 10:00 AM. Alcatraz closed their doors in November of last year after six years of business.

Chinese beer drinkers gain ground

posted Jan 8th, 2004 by Pat Hagerman

The United States continued to lead the world in beer consumption in 2002, but China could grab the No. 1 spot by the time 2003 figures are totaled.

Japan’s Kirin Brewery reports global beer consumption was up 2.1% in 2002, the 17th consecutive increase in the 17 years that Kirin has collected the statistics. U.S. beer drinkers downed 23.8 billion liters, with China just behind at 23.5 billion liters. Sales in the United States were up 1.4%, while they surged 4.7% in China.

Germany is a distant third at 10 billion liters, and Brazil is fourth. Russian surpassed Japan for the fifth spot, with Japan falling to sixth.

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Miller High Life Passes the Century Mark

posted Jan 6th, 2004 by Pat Hagerman

Miller High Life, once the flagship brand of Miller Brewing, passed the
century mark on January 2nd. The venerable Miller brand has become
overshadowed by trendier drinks and pushed aside by light and low-carb
beers, but Miller Brewing’s former flagship brand is trying to revive
its heritage. High Life was the beer behind the “Miller Time” campaign
of the 1970s, when the beer was promoted as a reward at the end of a
long, hard day at work. The brand peaked in 1979; today, it’s the 9th
biggest brand in the U.S., eclipsed by other brands, including stable
mate Miller Lite. The High Life brand is Miller’s oldest, and made its
debut in 1903, about 50 years after German immigrant Frederick Miller
founded Miller Brewing Company. After Miller peaked in sales in the
1960s and 1970s, High Life sales, as well as sales of other aging
domestic brands such as Old Style and Old Milwaukee, have been in
decline over the last two decades. Now, Miller is looking to refocus on
a niche base of High Life customers. The brand’s current media
advertising spots feature the populist “high life man.” The marketing
strategy might even be paying off, even though High Life’s production
continues to be just a fraction of its peak; brand sales have stabilized
and even increased slightly in recent years. The brand may have hope
among younger consumers, too, if the rise in Pabst Blue Ribbon’s
popularity among the under-30 crowd is any indication.

Another Day, Another New Low-Carb Beer – Molson unveils Ultra

posted Jan 2nd, 2004 by Pat Hagerman

Molson Inc. last week became the latest brewer to unveil a low-carbohydrate beer. “We’re just responding to evolving consumer needs,” said Rob Assimakopoulos, Molson’s vice-president of marketing innovation. “We think this could be a significant sub-category [of beer].” In an effort to differentiate its lower-carb offering, Molson said Ultra has a regular beer taste and 4.5% alcohol-by-volume — slightly higher than rivals’ products — with 2.5 grams of carbohydrates and fewer than 100 calories per bottle. That level of carbohydrates is about the same as eating a tablespoon of peanut butter or drinking a glass of wine. By comparison, regular beers have between 11 and 17 grams of carbohydrates, equivalent to 10 french fries or a slice of french toast.

But consumers are sensitive to taste, especially in Canada where beer drinkers buy six times more regular suds than light beers, compared to the US where light beers account for about 50% of the market. Last year, Michelob led the low-carb beer charge while in Canada, Sleeman Breweries Ltd. launched its Clear brand this summer. Earlier this month, Labatt Brewing Co. joined the pack with Sterling, a beer containing 4% alcohol and 2.5 grams of carbohydrates per bottle.

An initial shipment of the product almost sold out, despite the absence of an advertising blitz by the company. While Molson Ultra is being marketed to all beer drinkers, they must have at least one common trait, according to Mr. Assimakopoulos. “Obviously, the people who are going to try it want the [low-carb] benefit,”

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EU Clear Interbrew Spatan Deal

posted Dec 31st, 2003 by Pat Hagerman

Interbrew, has received unconditional clearance to its strategic partnership with Bavarian brewer Spaten from the European Commission. The approval, the Belgian brewer said, is the first condition to be fulfilled and brings Interbrew one step nearer to closing of the transaction, which is expected in the second half of 2004.

The European Commission found that the partnership did not raise competition concerns and it cleared it without conditions. The closing of the transaction remains subject to shareholder approval and is expected to occur in the second half of 2004. “We look forward to adding the Spaten, L

Siebel Offering Carbohydrate Test for Brewers

posted Dec 29th, 2003 by Pat Hagerman

Low-carb beer is the emerging category (fad?) of the year and with more consumers watching their carbs, the question of “how many carbs are in this beer?” may become one of the most frequently asked question of your staff, especially in brewpubs.

To help brewers know about the carbohydrate levels in their products, the Siebel Institute of Technology Laboratory Services division is now offering a test that will give an accurate measure of carbohydrate in beer. The test is $48.00 per sample. More information by e-mail at jmurphey@northlandlabs.com or by phone at 847-272-8700, ext. 313.

EU Win for Budvar

posted Dec 26th, 2003 by Pat Hagerman

The European Union’s Office for Harmonization in the Internal Market (OHIM) has ruled in favor of the Czech brewer Budejovicky Budvar (BB), allowing it to register its Budejovicky Budvar name as a European Community trademark, according to BB’s press department. An appeal that had been filed by U.S. brewing giant Anheuser-Busch was rejected; the American brewer was attempting to keep BB from registering the Budejovicky Budvar name within the EU on the grounds that it could be confused with its Bud trademark. But the Czech Republic (CR) is scheduled to join the EU soon, and the CR’s accession treaty with the EU protects the expressions “Budejovicke pivo” and “Ceskobudejovicke pivo.” Protection by the place of origin is guaranteed only for those products that are well known internationally through their long tradition and continuous level of top quality, says BB, which currently has about 380 trademarks registered in over 100 countries around the world, and is currently involved in more than 40 lawsuits and 40 other administrative proceedings at patent offices involving the trademark dispute with AB.

Firestone Walker Develops Mild Ale for Sports Arena

posted Dec 22nd, 2003 by Pat Hagerman

Firestone Walker Brewing Company and the Save Mart Center in Fresno, California, in collaboration with local distributor Valley Wide Beverage Company, have teamed up to launch Firestone Mild Ale, a special low-carbohydrate craft beer that will be served at the center beginning on December 15. Firestone Mild Ale will be the only all-malt craft beer served at the new sports and entertainment arena. “Ovations Food Services, the Save Mart Center’s concessionaire, wanted to offer patrons a flavorful complement and alternative to lighter, mass-produced beers-but they also wanted it to be the same lower alcohol level as the other beers on draft,” said Steve Almaraz, Firestone Walker’s vice president of sales. “Our brewmaster made a special beer that ended up being both lower in alcohol and carbohydrates – but still with a signature Firestone Walker ale flavor.” Crafted by Head Brewer Matt Brynildson, who was named Mid-Size Brewing Company Brewmaster of The Year at the recent 2003 Great American Beer Festival, Firestone Mild Ale is a medium-bodied, full-flavored ale that contains half the calories (99 calories/12 oz) and carbohydrates (5.4 grams/12 oz) found in most craft beers. Its alcohol level of 3.2 percent is also considerably lower than most craft beers. Firestone Mild Ale incorporates East Kent Golding and Cascade hops, as well as Munich, Crystal, English Pale and Chocolate malts. The Save Mart Center is a new multipurpose sports and entertainment facility that hosts the Fresno State University’s men’s and women’s basketball teams, as well as the Fresno Falcons of the West Coast Hockey League. The center will also host events by leading musicians and entertainers such as Toby Keith, Aerosmith, George Lopez, and Stars on Ice.

Chicago Real Ale Festival on Hiatus for 2004

posted Dec 19th, 2003 by Pat Hagerman

Despite the best efforts of festival organizers, Chicago will not be having its well-known Real Ale Festival in 2004. A smaller, alternative celebration of real ale is planned for the weekend (March 4-6) on which the 2004 edition of the festival was originally scheduled. Festival organizers will announce details soon. The organizers had planned to run the festival in the Finkl building, at the site of a Chicago steel mill, where the festival had a successful run in 2003. However, City of Chicago authorities were no longer willing to grant special event licenses for the Finkl space, and the venue has no on-premises license of its own, and would not be likely to secure one in time for the planned weekend of the Real Ale Festival. Organizers hope to bring the festival back during the first March weekend of 2005, either at Finkl or some alternate location in or near Chicago. As an alternative, a real ale party has been planned for the weekend of March 4-6, 2004, open to any and all comers. Organizers hope to work with Chicago brewpubs and bars such as Goose Island, Rock Bottom, the Map Room, and other venues, to find homes for as many great real ales as possible. Organizers are also looking to run buses on a circuit to the various sites and create America’s biggest real ale pub-crawl. For further information and updates, see the festival web site at http://www.realalefestival.com/

Two-second pint

posted Dec 17th, 2003 by Pat Hagerman

Anheuser-Busch is taking a high-speed beer tap developed for use at sporting events into English pubs. The “Ultimate Draft System” allows a pint to be pulled in less that two seconds.

The system was developed in the United States and was used to pump Budweiser beers at stadiums during the World Series baseball championships last year. It is now undergoing trials in Britain, and could be installed at venues throughout the country if the tests are successful.

Michael Hockley, the European manager of Shurflo, which designed the tap for Anheuser-Busch, told England’s Sunday Telepgraph that it was already becoming popular with drinkers.

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German consolidation continues

posted Dec 15th, 2003 by Pat Hagerman

Radeberger, the third largest brewer in Germany, has acquired a 50% stake in the Stuttgarter Hofbräu brewing group. Hofbräu said the deal was worth about $73 million.

The move comes shortly after Radeburger came up short on a bid for Brau & Brunnen. With the German beer market undergoing consolidation, the race continues to buy market share. Radeberger chief Ulrich Kallmeyer said he aimed to play an active role among future merger and acquisitions in the sector.

After Dutch brewer Heineken formed a joint venture in 2001 with Bavarian firm Paulaner und Kulmbacher, Belgium’s Interbrew became the market leader in September by taking control of Spaten.

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AOB to Offer Weihenstephen Course at Craft Brewers Conference

posted Dec 12th, 2003 by Pat Hagerman

For those going to San Diego this April for the 2004 Craft Brewers Conference, the Association of Brewers will be offering AOB members the opportunity to take a 2-day Weihenstephan course on April 13 and 14. The course will be offered at the conference hotel. This is the first time a Weihenstephan course has offered in the US. More information at
http://www.beertown.org/events/cbc/attendee/wcourse1.html

Tod Mott Joins Portsmouth Brewery

posted Dec 10th, 2003 by Pat Hagerman

While much of New England s attention is focused on the Red Sox and their off-season dealings, the Portsmouth Brewery has signed Tod Mott on board to head up its brewing operations. “Having Tod join our staff is the brewpub equivalent of Curt Schilling signing on with the Sox,” says brewery founder Peter Egelston. Since his days as an apprentice at Vermont’s Catamount Brewery, Mott’s career has included stints as head brewer at Boston’s Harpoon, Commonwealth, and Back Bay Breweries, Quincy Ships in Quincy, and most recently at the newly opened Tap Brewpub in Haverhill.

Jim Parker Named as Editor of ‘New Brewer’ Magazine

posted Dec 8th, 2003 by Pat Hagerman

The Association of Brewers announced Friday the appointment of industry veteran Jim Parker to the Editor-in-Chief position for the organization’s two magazines, Zymurgy and The New Brewer.

“We are excited to have Jim back at the Association of Brewers,” said Paul Gatza, Director of the Association of Brewers. “Jim’s experience over the past fifteen years, and especially his work for the Oregon Brewers Guild, will bring a high degree of brewing and industry knowledge to the magazines and the organization as a whole.”

Parker has served as Executive Director of the Oregon Brewers Guild for four years. Recently, Parker was awarded the Brewers’ Association of America’s Defense of the Small Brewing Industry Award for his work in a coalition to defeat an unfair tax proposal in Oregon. Parker will remain with the Oregon Brewers Guild in a capacity that reduces his administrative responsibilities.

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Huber won’t take ’em back

posted Dec 5th, 2003 by Pat Hagerman

One more link to beer’s past has been cut as Huber Brewing Co. in Monroe, Wis., has discontinued its line of returnable beer bottles in cardboard cases.

“I’ve always taken pride in how things were done a little differently in Wisconsin,” said Tim Deneen, a disappointed customer. “It’s hard to believe we’re just turning into another place.”

“We feel bad about it but the cost had become so outrageous,” said Phil Reynolds of General Beverage of Madison, whose owners purchased Huber in 1995. Reynolds said the washing equipment was continually breaking down and new parts were hard to find.

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Labatt Introduces Low-carb Beer

posted Dec 3rd, 2003 by Pat Hagerman

Add another entrant to the emerging low-carb beer market, this time in Canada. Labatt Breweries has launched Labatt Sterling, a low-calorie, low-carbohydrate beer, targeting drinkers who have chosen to go with Atkins-style low-carbohydrate diets. Sterling has 2.5 grams of carbohydrates per bottle, compared to typical beers at 10 grams and up; it also has a relatively low 88 calories, compared with 145 calories in regular beer. The alcohol content, at 4%, remains the same as regular light beer.