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Great Lakes Brewing News Archive
The Business of Beer
Originally Published: 12/97
By: Rick Lyke
Some Quick Data: According to the Institute for Brewing Studies, the United States (1,273) now has more breweries than Germany (1,234). The breakdown in brewery count goes this way: five large nationals, 18 traditional regionals, 33 regional specialty brewers, 418 micro-breweries and 799 brewpubs. There are also 140 contract brewers, with 28 also operating either a brewpub or micro-brewery. A total of 317 new breweries opened in the U.S. in 1996, with 36 closing. In Canada, 11 brewpubs and 17 micros opened, with three brewpubs and five micros closing. And still only one beer newspaper throroughly covering the entire region!
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GABF Hits the Road: After being held exclusively in Colorado for 16 years, the excitement of the Great American Beer Festival is taking to the road. The Association of Brewers announced it will host the "GABF on the Road" on May 15-16 in Baltimore, Md. The event will showcase 1997 GABF medal winners and brewers from the Mid-Atlantic region. GABF on the Road will visit other cities in future years.
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Sundays Just Got A Little Nicer: Liquor and beer stores in Ontario will be open on Sundays starting Dec. 7. Consumer Minister David Tsubouchi said the move was in reaction to consumer demands for more convenient hours and to help attract U.S. visitors.
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Buck Passing: Big Buck Brewery & Steakhouse opened its newest location in Auburn Hills, Michigan in October. The 26,900-square-foot brewpub seats 600 guests.
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Belgian Beer and Baseball: There is about to be a new reason to visit Cooperstown, NY. Brewery Ommegang has started brewing and will soon release three Belgian-style brews: Hennepin, Ommegang and Rare Vos. The brewery is the brainchild of Don Feinberg and Wendy Littlefield, who run Vanberg & DeWulf, a beer importer that specializes in Belgian beers.
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Beer Guide Book Released: Great Lakes region beer lovers should rejoice at the release of a new book. Entitled, The Great Lakes Beer Guide, author and well known beer cognoscente Jamie Mackinnon has released his second book covering breweries and beer. Look for a review in next issue, as well as a way to order your book now in his issue (See ad on p.13)
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Data Data Data: According to the Institute for Brewing Studies, the five largest U.S. craft brewers and barrels sold: Boston Beer Co. (1.2 million), Pete's Brewing (425,600), Sierra Nevada Brewing (265,000), Redhook Ale Brewery (224,578) and Pyramid Breweries (128,000). The two largest brewpubs are both located in Denver: Wynkoop Brewing (4,834) and Rock Bottom Brewing (4,000).
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Labatt USA Bulks Up: After earlier this year grabbing the Lowenbrau brand from Miller Brewing, Labatt USA has signed a deal with Carlsberg A.S. for the rights to Carlsberg Beer, Carlsberg Elephant and Carlsberg Elephant Red. The brands had been imported since 1985 buy Anheuser-Busch.
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Advertising Giants: According to Competitive Media Reporting, Miller Lite increased spending by 48% during the first half of 1997 to remain the top advertised brand of beer. Budweiser increased spending by 56% to maintain its position as the second most advertised beer brand. The biggest increase in spending came from Miller Genuine Draft, which spent $40 million an increase of 257%.
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Save the Date: The National Craft Brewers Conference and Trade Show will be held April 5-8 at the Georgia World Congress Center in Atlanta.
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Even More Data: According to the Institute for Brewing Studies, the five largest brewpub chains are Rock Bottom Breweries (25), Hops Bar & Grill (25), McMenamin's Breweries (20), Big Horn Brewing (14) and John Harvard's Brewhouse (13). California has the most brewpubs (101) and microbreweries (68). Vermont has the most breweries per capita.
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Celis Goes North: The Celis Brewery of Texas, makers of Belgian-style beers, has signed an agreement with Brick Brewing Company of Ontario to brew Celis brands for the Canadian market.
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Not For Sale: Interbrew SA, the Belgian brewer that has owned John Labatt Ltd. since 1995, has taken the Toronto Blue Jays off the market and will keep the team. Interbrew had been negotiating with a Toronto real estate developer to sell the 90 percent stake it has in the baseball team.
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Bud Light Backs Women's Soccer: Bud Light is now the official beer sponsor of the U.S. Women's National Soccer Team.
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Stroh's Closes St. Paul Brewery: The Stroh Brewery Co. is closing a 132 year old plant in St. Paul, Minnesota, this month, saying the brewery was no longer efficient and in poor condition. The brewery was built in 1865 by Hamm's Brewing, which Stroh acquired in 1983.
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Package Deals: Schmidt's Premium Beer will feature wildlife scenes commissioned from artist Jim Tostrud.....Coors cans have the likeness of John Wayne on special cans....Old Milwaukee has new look cans....Corsendonk Monk's Ale is now available in commemorative tins.
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North Country Under New Owners: Releta Brewing Company LLC, part of the global UB Group, has taken over North Country Brewing in Saratoga Springs, N.Y. Releta takes control of North Country's labels and will also brew Kingfisher and Mendocino Brewing's Red Tail Ale for distribution along the East Coast.
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Miss Rheingold Making a Comeback?: The Stroh Brewery Co. has licensed the Rheingold Beer trademark to The Beverage Alliance, a Connecticut company that will contract brew the brand under the direction of Dr. Joseph Owades, a former Rheingold brewmaster.
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Lion For Sale: The Lion Brewery (Nasdaq: MALT) of Wilkes Barre, Pa., says it has retained investment bankers to explore "various strategic alternatives to maximize shareholder value," including the possible sale of the company.
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State Street Sold: Evansville Brewing Co. of Indiana has purchased State Street Brewing Co. of Chicago. Evansville has contract brewed State Street's beers since the company was founded in 1995.
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A-B Not Fair?: Anheuser-Busch has confirmed that the U.S. Justice Department is investigating its distribution practices to see if the brewer is trying to squeeze smaller rivals off the market. The world's largest brewer said the Justice Department is looking at sales and marketing practices at the company.
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To Your Health: A study released by INSERM, the French National Institute of Health, reports that moderate amounts of alcohol appear to help improve brain functions in older women...The U.S. government funded National Health and Nutrition Examination Survey I, has confirmed that the risk of coronary heart disease is reduced for men and women who drink alcohol moderately when compared to those who do not drink.
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New Brew Revue: The 1997 edition of the Saranac 12 Beers of Christmas is on the market. The special package includes a Winter Wassail, Chocolate Amber and Nut Brown Ale, plus nine others...Pilgrim Brewery Harvest India Pale Ale uses hops grown in New England...Augsburger Winter Festbier, back for its second year, is a dark wheat beer spiced with cinnamon and nutmeg...Aventinus, a German wheat doppel bock, is now being imported to the U.S. by B. United International...Penn Weizen Beer is now being produced and bottled year round by the Penn Brewery in Pittsburgh...Pete's Brewing Co. has released Pete's Wicked Winter Brew and will release Pete's Wicked Springfest in January...Michelob WinterBrew Spiced Ale and Michelob Maple Brown Ale are part of a 12-pack sampler...Independence Brewing has release William's Winter Warmer...The 1997 version of Samuel Adams Triple Bock is now on the market after aging in oak casks since 1995...Noche Buena Holiday Beer from Cerverceria Cuauhtemoc Moctezuma is being imported by Labatt USA...Merlin's Ale, an 80 shilling ESB from Broughton Ales is now being imported by Phoenix Imports Ltd....Schmaltz Brewing Co. has released He'Brew � The Chosen Beer, in California, and is looking at markets in the east...Meridian Blonde is an 85-calorie light beer now in test market from Anheuser-Busch...Fuller's Vintage Ale is available as a limited edition bottle-conditioned product from Paulaner North America...Rogue Ales has released Yellowstone Ale to celebrate the National Park's 125th anniversary. Proceeds from the sale of the maibock will go to helping the park...McSorley's Wintertime Ale is the brand's first seasonal...Anheuser-Busch is importing Azteca, a new Mexican beer being made in Tecate by American Craft Brewing International...Westword Importing has released Shepherd Neame's Casey's Smooth Stout from Britain's oldest brewery.
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Stock Ticker: Molson Companies (Toronto Stock Exchange: MOL.A) reported a net sales decline, but an increase in net income to $22.1 million (CND) for the second quarter...American Craft Brewing International Ltd. (Nasdaq Small Cap: ABREF) posted a loss of $1.1 million for its third quarter compared to a loss of $78,312 during the same period last year...Canandaigua Brands (Nasdaq: CBRNA, CBRNB), which owns and imports a number of wine, spirits and beer brands including Stevens Point Brewing and Corona, reported net income of $12.4 million for the second quarter up from $4.9 million last year...Sleeman Breweries Ltd. posted a record third quarter profit of $1.57 million, up from $1.06 million earned in the same period last year. With the year's third consecutive quarter of record earnings, year-to-date profits have more than doubled to $2.86 million...Pyramid Breweries (Nasdaq: PMID) reported net sales of $7.9 million for the third quarter, an 18% increase...Redhook Ale Brewery (Nasdaq: HOOK) reported that shipments declined 2.9% during the first three quarters of the year. The company posted a net loss of $266,000...Big Buck Brewery & Steakhouse (Nasdaq: BBUC, BBUCU, BBUCW) had third quarter revenues increase by 40%, but the company reported a net loss of $195,982...Adolph Coors Company announced net sales for the third quarter were up 7% to $489.7 million.
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From the Foreign Desk: According to the Bavarian Statistics Yearbook, citizens of the German state drink more beer than milk. A four-person Bavarian family drinks 4 gallons of beer every month, which is a pint more than the milk the same family consumes...According to Reuters beer drinking in Britain is on a steady decline, with lager taking share from ale. Recent reports indicate that in the last five years the big four national brewers have closed 10 breweries and plan to shut another four during the next three years. In 1979, beer consumption in Britain reached 42.4 million barrels, but has fallen to about 36 million barrels...France says it will not lower strict alcohol advertising rules to allow World Cup soccer sponsor Anheuser-Busch to advertise during the tournament next June and July in 10 stadiums across France...Colt 45 and Mickey's Malt Liquor are being introduced to the Russian market...The Cisneros Group and Interbrew SA announced a joint venture aimed at capturing a greater share of South America's beer market. The pair will invest $2 billion in the next five years. Interbrew paid $250 million for a 50% stake in Cerveceria Regional, a brewery business run by Cisneros...Guinness PLC reported a 4% rise in profits for the first half of 1997, reaching $598 million...The Spaten-Franziskaner Brewery of Germany has taken control of the Lowenbrau Brewery of Munich, forming the country's 10th largest brewing concern.
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