RBPMail 7.10, October 2001
Real Beer Page Mail (RBPMail) began as a modest update to craft-brew events on the WWW. It evolved into a news digest and sometimes editorial forum. We present its contents here much as they were emailed to subscribers. Often, links you will see are out of date, and businesses referred to may also be long gone.
In this issue:
* Breweries Unite to Help September 11 Victims
* Interbrew Will Sell Carling
* Scottish & Newcastle, Miller Consider Alliance
* British Beer Consumption Hits 30-Year Low
* Bud Light New King of U.S. Beers
* Anheuser-Busch to Increase Prices
* Scientists Find Beer May Help Fight Cancer
* Web Watch
- Michael Jackson on Ale Cask Whisky
- More on CAMRA and Greene King
- Teach a Friend to Homebrew
* 2001 Great American Beer Festival Winners
* Many Consumers Find Beer, Wine Mix
* Bill Owens Sells American Brewer
* Moylanders Double IPA Wins Alpha King Challenge
* Boston Beer Writes Off Excess Hops Inventory
* Nashville Hosts First Regional IBS Meeting
* Another Light Beer Launched
* When Liquid Assets Are Best ...
* Editorial: Remember September 11
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BREWERIES UNITE TO HELP SEPTEMBER 11 VICTIMS
Breweries and brewpubs across the United States have joined the
national effort to raise money to benefit the victims of the Sept. 11
terrorist attacks on America. The list of upcoming fundraising events
is still growing, but particularly noteworthy is "Unity Night" that
started with brewpubs in Pennsylvania and grew into a national event.
Some pubs will donate a percentage of beer sales, some all their beer
sales, some happy hour sales and others a certain amount per pint sold.
Contributions may go to various charities, but most will be donated to
The United Way's September 11th Fund.
INTERBREW WILL SELL CARLING
Interbrew, the world's second largest brewing company, has announced it
will break up Bass brewers and sell most of it, including top selling
Carling. The decision came after the United Kingdom ruled the Belgian
brewer must sell all of Bass or at least Carling to overcome British
competition concerns. Interbrew intends to finalize the sale of Carling
Brewers as soon as reasonably possible. "Now everything is concrete we
will definitely start having talks with interested parties. We intend
to close this by the end of this year," spokesman Corneel Maes said.
Three buyers are reported interested in Carling, including Heineken,
South African Breweries and Anheuser-Busch. By selling Carling,
Interbrew would be able to retain Bass's Tennent's business in
Scotland, Caffrey's in Northern Ireland and the Bass ale brand.
Interbrew said its retained Bass brands would give it a British market
share of 15.8% when added to the Whitbread beer business bought last
year, giving it a British beer portfolio with Stella Artois, Tennent's,
Boddingtons, Hoegaarden and Bass ale.
SCOTTISH & NEWCASTLE, MILLER CONSIDER ALLIANCE
Scottish & Newcastle, the U.K.'s largest brewer, is reported to be
talking to Miller Brewing about new ventures in Europe. The discussions
are part of Scottish & Newcastle's attempts to boost the relationship
in hopes of acquiring Miller, a unit of Philip Morris Cos., should the
business come up for sale, say the reports. Scottish & Newcastle
distributes Miller Pilsner beer in the U.K. and Miller Genuine Draft
beer in Ireland. It hopes to sign distribution agreements with Miller
for Spain, Italy and Germany.
BRITISH BEER CONSUMPTION HITS 30-YEAR LOW
The amount of beer drunk in Britain has sunk to a 30-year low because
of a rising demand for wine and spirits, a survey suggests. Beer
consumption has fallen steadily year on year, dropping by 3.7% in 2000
alone, figures indicate. Meanwhile sales of wine shot up by 8.5% last
year, and sales of spirits rose by 2%, according to the survey
published in The Publican newspaper. Despite this, on an average day
in Britain, almost 27 million pints of beer are brewed and 29 million
drunk -- six times more than the amount of wine consumed and "way, way
more than spirits" according to industry experts.
BUD LIGHT NEW KING OF U.S. BEERS
Budweiser, long the No. 1 selling beer in America, has been toppled --
by its low cal sibling, Bud Light. Both beers are produced by Anheuser-
Busch in St. Louis. Market Watch, a spirits industry publication,
reports that Bud Light has eclipsed Budweiser for the first time since
the light beer was introduced in 1982. Budweiser continues to be the
top-selling beer in the world. Bud Light's volume is expected to
increase by 7% this year to 33.6 million barrels, while Bud's is on
track to dip about 2% to 32.5 million barrels. The reduced-calorie brew
has grown from a 6% U.S. market share in 1990 to an estimated 16.8%
share in 2001. The change is part of an overall trend. In 2000, light
beer accounted for 44% of all the malt beverages consumed in the United
States.
ANHEUSER-BUSCH TO INCREASE PRICES
Anheuser-Busch has announced plans to increase pricing. The company
said that the price increase would come in two stages, both in the
fourth quarter of this year. Along with the price increase announcement
came news that A-B still expects sales-to-retailers to increase 1.5%
for the full year, with revenue per barrel up about 2.8% and earnings
per share to increase 12% for the year. Offering analysis in BEERWeek,
Tom McCormick noted: "The domestic craft segment seems to be the only
category group unable to take advantage of the upswing in beer pricing.
The price gap between the two groups is startlingly close, especially
when a craft brand on deal is compared to the front-line pricing of a
premium brand. Many factors have conspired to keep craft beer prices at
roughly the same level as ten years ago including a still cluttered
segment, the high cost of exit for marginally profitable breweries, and
limited distribution access. If the segment refuses to drive prices up
and closer to import pricing, it may not only be a missed opportunity
for additional margin and profitability, it could erode the perceived
value of the domestic craft segment."
SCIENTISTS FIND BEER MAY HELP FIGHT CANCER
Scientists in Japan have discovered that chemicals in beer can help
fight off cancer. Researchers from Okayama University in western Japan
fed a cancer-causing chemical to genes of the salmonella bacteria,
which usually leads the genes to mutate as the first stage of
developing cancer. The team freeze-dried beer to separate ingredients
and gave each of them to the salmonella genes, finding that at least
six of the materials prevented the genes from mutating.
********************WEB WATCH*******************
ALE CASK WHISKY
Caledonian Brewery and the makers of Glenfiddich have come together for
a little project. Ale Cask Reserve is a beer-tinged whisky. Michael
Jackson explains why this is one way of cross-fertilizing two great
drinks. The story.
CAMRA VS. GREENE KING
Last month we mentioned Greene King's complaint after beers it brews
under the brand names of Morland and Ruddles were excluded from CAMRA's
Great British Beer Festival. Roger Protz provides the reasons behind
CAMRA's decision. The story.
TEACH A FRIEND TO HOMEBREW
The American Homebrewers Association's third annual Teach a Friend to
Homebrew Day is Nov. 3. A Q&A with AHA Director Paul Gatza offers tips
for making it a successful day.
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AND THE WINNERS ARE ...
Talk about consistency -- Snake River Brewing Co. repeated as small
brewery of the year, New Belgium Brewing Co. as mid-size brewery of the
year and Anheuser-Busch as large brewery of the year when awards were
handed out at the 20th Great American Beer Festival in Denver, Colo.
California took the largest number of medals with 23 (10 Golds)
followed by Colorado with 21 (3 Golds). The complete list of winners.
CONSUMERS FIND THAT BEER, WINE MIX
A national survey comparing wine and beer consumers finds that the
market profile for those who enjoy these beverages is much the same.
The National Beer Survey found that premium beer and wine drinkers
share the features of being younger, earning a higher income, and
holding a higher education level than the rest of the adult population.
Both serious beer and wine drinkers are found mainly in the coastal
rather than inland sections of the country. The survey indicates that
beer and wine drinkers are most often the same people. People who drink
beer consume more than three-quarters of the wine and nearly three-
quarters of the beer is consumed by drinkers of wine. The story.
BILL OWENS SELLS AMERICAN BREWER
Brewing News publishers Bill Metzger and Jim Dorsch have struck a deal
with Bill Owens to buy American Brewer magazine from Owens. "It is time
for me to step aside. I gave it 17 good years," said Owens. Metzger and
Dorsch will start their tenure with the winter issue, to be published
in January 2002. Together and with others, Metzger and Dorsch publish
five regional beer newspapers. Owens has published American Brewer
since 1986, and also started one of America's first brewpubs -- Buffalo
Bill's in Hayward, Calif. "I'm thrilled to carry this fine magazine's
mission forward," said Metzger. That mission is to cover business
issues facing small- to medium-size brewers.
MOYLAN WINS ALPHA KING CHALLENGE
Moylanders Double IPA from Moylan Brewing Co. in Novato, Calif., was
chosen as new Alpha King during competition conducted in Denver at the
same time as the Great American Beer Festival. Three Floyds Brewing Co.
of Munster, Ind., conducted The Alpha King Challenge at Falling Rock
Tap House, pitting some of the hoppiest beers in the country against
each other. Beers were scored on their hoppiness, balance, and
drinkability. Three Floyds flagship beer is known as Alpha King.
BOSTON BEER TO WRITE OFF EXCESS HOPS INVENTORY
The Boston Beer Co. brewer of Samuel Adams beers, will take a charge of
up to $5.6 million to write down excess inventories of hops and future
contracts to buy hops. They said the charge, which is estimated at
between $2.2 million and $5.6 million, would reduce fourth-quarter
earnings by between 8 cents and 20 cents per share.
NASHVILLE HOSTS FIRST REGIONAL IBS MEETING
The Institute for Brewing Studies will hold a southeastern regional
meeting on Oct. 25 at Blackstone Brewery & Restaurant in Nashville,
Tenn. The meeting is the first of its kind and will be followed by
other regional meetings across the country in the coming years.
Regional meetings are designed to build community within the craft-
brewing industry, discuss issues related to the craft-brewing industry,
and address membership issues. Those interested in attending, including
non-member breweries, should RSVP to Chuck Skypeck of Boscos Brewery at
615-385-0050.
ANOTHER LIGHT BEER LAUNCHED
"The Father of Light Beer" Dr. Joseph Owades and industry veteran
Rhonda Kallman have teamed up to ship a new light beer, Edison Light.
"We chose the name to have fun with the fact that Thomas Edison
invented the light bulb and our brew master invented light beer," said
Kallman. Dr. Owades is credited with inventing the brewing process used
to create the first light beer in the late 1960s. Kallman was co-
founder of Boston Beer Co., which recently began shipping its own light
beer.
WHEN LIQUID ASSETS ARE BEST ...
This bit of humor has been making the email rounds in long and short
versions. It started up North -- hence the Nortel example. The math
will be a little different if you use a different stock and/or beer but
the message is the same. If you bought $1000 worth of Nortel stock one
year ago, it would now be worth $49. If you bought $1000 worth of
Budweiser, drank all the beer, went to the recycling center, and traded
in all of the empty beer cans for the 5 cent deposit, you would now
have $79 (and have enjoyed a lot more beer).
************************************************
EDITORIAL: REMEMBER SEPTEMBER 11
You don't need us to tell you about the terrible events of Sept. 11,
but we do want to make sure you are aware of how the beer industry has
stepped up to help the victims of the terrorist attacks and how you can
offer your support.
Particularly noteworthy is the Pennsylvania Brewers Guild "Unity Night"
that has spread far beyond the Keystone State. Thursday, Oct. 11,
breweries and brewpubs across the country will donate proceeds from
sales to charity -- in most cases the United Way's September 11 Fund.
Some pubs will donate a percentage of beer sales, some all their beer
sales, some happy hour sales and others a certain amount per pint sold.
Breweries are contributing by selling kegs to bars as a nominal fee,
then the proceeds of those sales will go to charity. Some brewpubs are
participating in other national events that night, but the name of the
program doesn't matter as long as contributions go to those who most
need help.
A slightly different benefit -- Brooklyn Brewery's "Fundraiser for
Victims of the 9/11 Attack on America" -- is just as important. All of
the proceeds to be donated to the Brooklyn-based Independence Community
Foundation's 9/11 Fund, which intends to put funds into the hands of
the families that have immediate needs and cannot wait for money from
the United Way or the more structured relief organizations.
We don't expect you to hop in your car and drive to Brooklyn to be
there Oct. 20 (though we guarantee you'll like the beer), but if there
is an event near you Oct. 11 or another day be sure to stop in for a
pint. Consider taking home a growler and maybe even toss a little cash
into a contribution jar.
If your favorite brewpub doesn't have anything planned yet, tell the
management about the goal of Unity Night, and remind them the giving
doesn't end Oct. 11.
In the days immediately after Sept. 11, many of you headed to your
local pub because you couldn't bear to watch the terrible images on the
television alone or you just had to talk with people you knew. "People
wanted to go to a place where they felt like they were with family,"
said Daryl Woodson, who owns the appropriately named The Sanctuary in
Iowa City, Iowa, a neighborhood bar that was full the week of Sept. 11.
It's time again to think like you do about family, with both compassion
and pride. We plan to do that while remembering some particularly wise
words from Bryan Pearson, the brewer at Church Brew Works in
Pittsburgh, Pa., on Unity Night:
"We are not gathering to mourn but to honor."
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