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Michigan boosts deposit on beer kegs

Michigan has tripled the deposit on beer kegs, a number not quite so shocking since the state previously had a very low deposit for $10 and the new fee of $30 is less than in most states.

It costs a beer manufacturer about $152 to buy a new half-barrel when one disappears, according to Ken Wozniak of the Michigan Liquor Control Commission. He said a Michigan brewing company asked the commission last year to raise the $10 deposit to $90 per keg.

“The commission thought that request was a little steep,” Wozniak said. “The purpose of the increase in the barrel deposit to $30 was to ensure the return of the keg, not necessarily to cover” beer manufacturer’s cost of the keg.

Increasing pricing for scrap metal have made kegs an attractive target for thieves.

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Selling craft beer in the heartland

– The Chicago Sun-Times reports on booming sales for Goose Island Brewing, up 60% this year. The reason is the deal the brewery struck less than a year ago with Widmer Brothers/Anheuser-Busch that put Goose Island beer in the hands of a large distribution force.

“We used to get a lot of calls — from Woodridge, Lake of the Hills — saying ‘I can’t find your beer,'” said brewmaster Greg Hall. “We don’t get as many of those calls anymore.”

– The St. Louis Post-Dispatch heads to Memphis on a beer selling trip with Dan Kopman of Saint Louis Brewery/Schlafly Beer (“We’re the other brewery in St. Louis”).

Schlafly is trying to carve out an identity by promoting its product as craft beer from America’s beer capital.

An interesting story about the challenges, including promoting beer in a market (Memphis) that so far has not been particularly craft friendly.

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Are we all wrong about craft beer?

Wine tastersCraft beer sales have been so strong of late that we headlined a story in this space a couple of months ago “No news here.”

Craft beer volume sales were up 11.7% in 2006, with dollar sales in supermarkets growing 17.8% – and the first quarter was even stronger. For instance, Samueal Adams was up 22% in the first quarter, and many smaller breweries are talking about gains of 25%-30% over the first quarter of 2006.

So why did SABMiller CEO Graham Mackay say the craft beer surge is going to fade (“It’s inevitable”)? We suspect he didn’t mean craft beer is going away, or even that sales won’t continue to grow. He was talking about how long these levels can be sustained. And, honestly, we should accept the fact that the growth rate has to slow sometime – and not act then (as many did in the 1990s) like the sky is falling.

On the other hand there is little reason to respect the “Beer in the Headlights” article that appeared in the high circulation online magazine Slate.

Here are the rebuttals from the beer blogosphere:

Beer Is Dead, Long Live Wine (Jay Brooks) and a followup
How do you overlook 100 million cases of beer? (Stan Hieronymus)
Pastoral Nostalgia or Blue Collar Chic? Enough of the Beer vs. Wine Debate! (Jess Sand)

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‘Beer for bags’ hits snag

Australia-based Crumpler has generated publicity with a “beer for bags” promotion in several of its worldwide stores before, but is finding a problem in Canada.

From the Globe and Mail:

“In Australia, bartering, especially with beer, is a very common occurrence,” he said. “So this just comes naturally to us.”

There’s just one catch: According to the Alcohol and Gaming Commission of Ontario, using alcohol as a means of exchange – bartering – is illegal.

AGCO spokesman Ab Campion said that by using the beer as a form of payment for merchandise, customers would technically be selling the beer without a liquor licence, which is a violation of the province’s Liquor Licence Act, he said.

Roper said he and his partners have examined the Ontario bylaws and are confident their promotion is within the bounds of the law.

We’ll see how it plays out.

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Craft beer surge bound to fade?

Graham Mackay, CEO of brewing giant SABMiller, sits down with Fortune’s Matthew Boyle to talk about “rival Anheuser-Busch, the company’s new beer Miller Chill, and why goats make great mascots.”

The interview indicates that running his business is about more than the beer that ends up in the glass. Speaking about recent declines in profits he says, “The issue right now is cost pressures, in aluminum specifically. We spent about $100 million dollars more on aluminum this past fiscal year than the year prior.”

Not to spoil the interview for you, but here are two answers bound to interest Realbeer.com Beer Therapy readers.

What is your favorite beer?

Pilsner Urquell.

What do you make of the craft beer resurgence in America?

I think it’s going to fade. It’s inevitable.

The interview.

Updated June 6: Tomme Arthur answers the same questions.

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Kegerator Give-Away Contest

Kegerators.net is giving away a free kegerator. For those not familiar with the term, a kegerator is a refrigerator that holds and dispenses keg beer.

The Kegerator Give-Away Contest invites participants to fill out an entry form that explains why they should to win a kegerator. The Kegerators.net stuff will pick what they consider the most deserving story.

“While I wish I could win the kegerator, we’ve decided to part with one of them, for the sake of our readers,” said Christian Lavender, senior editor of Kegerators.net.

Additional information and contest rules.

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Saranac Thursday returns

Saranac Thursday season opened Thursday at Matt Brewing Co. in Utica, N.Y., and after nine years the event is a community fixture. The event raises roughly $30,000 for the United Way.

Russ Myers wasn’t about to let 600 miles stop him from being among the nearly 2,700 people at Saranac Thursday. The 81-year-old former Whitesboro man drove all the way up from Florida with his wife, Gussie, earlier Thursday and gave himself just enough time to unpack his car, he said.

“I made sure I got here today for Saranac Thursday,” Myers said alongside his daughter, Pam Ford of Utica. “I just like seeing all the people, and once in a while I’ll bump into someone I haven’t seen in 50 years.”

“It’s one of those things everybody looks forward to,” brewery president Nick Matt said.

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NH considers allowing stronger beer

The New Hampshire legislature is struggling with a bill that would boost the ceiling on alcohol allowed in beer from 12% abv to 18%.

A compromise was reached Tuesday that gives the state Liquor Commission the power to approve the sale of specialty beer above 12% on an individual basis.

“This allows the state of New Hampshire to maintain its proper scrutiny of the industry but at the same time achieve economic success in the alcohol selling business,” said Eddie Edwards, law enforcement chief with the SLC.

Also learned in this story: That Vermont caps beer at 8% abv.

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Bud.TV not dead yet

It would appear that the rumors of the death of Bud.TV have – in the words of Mark Twain – “been greatly exaggerated.”

The Wall Street Journal (subscription) reports, “Despite earlier suggestions that it might scrap its struggling online entertainment channel, Anheuser-Busch has decided instead to revamp the Web site to make it edgier.”

Instead of reinventing the way consumers – particularly young male consumers who drink beer – use the Internet, A-B seems to have figured out those web surfers already know how they want websites to work.

While during the site’s rollout Anheuser-Busch touted its slickly produced original content, Bud.TV will also now begin pulling videos and content from other sites. Its aim is to become an aggregator of cool information for beer drinkers. One idea the brewer is toying with: a “joke of the day.” Anheuser-Busch is also hoping to have Bud.TV content appear on other sites such as YouTube and Yahoo as a way to drive traffic.

A-B need look no further than Rogue Ales for an idea how to do that right.

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Smuttynose expansion plans scuttled

A proposal by Smuttynose Brewing Co. to construct a new brewery and restaurant off Route 1 is dead after Portsmouth the City Council denied a proposed zoning change that would have been the first step in the process.

Some of the opposition seems pretty provincial (but then we are biased):

Kathleen Hersey of 1761 Lafayette Road also opposed the change because she worried it would devalue her property.

“I can’t imagine anyone would want to look out their living room window and see an industrial plant in their neighborhood,” she said.

Others like Tim Ellis of 1781 Lafayette Road worried about odors. “How do I live in my house if it smells. You can go by the brewery right now and it smells,” he said.

Some people have short memories. Founder Peter Egelston pointed out he invested in Portsmouth downtown in the late 1980s when he was told it was foolish to do so.

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Miller tap on Coors keg equals state fine

The operator of the bar in a Wisconsin American Legion received a ticket for pouring Coors Light with a Miller Lite handle – even though he told his customers it was Coors Light.

The Appleton Post-Crescent has the mildly confusing story:

(Ray) Wendt’s American Legion bar normally serves Miller Lite.

But a wedding party asked for Coors Light for their reception earlier this month.

Wendt ordered it, then found the tap handle he was given didn’t fit his dispenser.

He substituted a Miller Lite handle.

“It’s not like I was pouring different liquor into a bottle,” he said. “The Coors and Miller Lite cost the same.”

The next morning, he served leftover Coors Light to his regulars.

“I said it was Coors Light, not Miller,” he said. “I didn’t lie to nobody.”

He took a few days off and returned to work May 8, when two representatives from the state Department of Revenue and a Port Washington police officer conducted the annual inspection of his bar. They found the Miller Lite handle still connected to the Coors Light barrel.

And that’s against city and state laws.

Is there a commercial, maybe a taste test, somewhere in there?

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Beer festival runs out of beer

Oops. The Stratford Real Ale Festival (Stratford-upon-Avon, the Shakespeare place) was supposed to run three days.

But they ran out of beer on the second day.

Organiser Bob Mansfield told the Herald: “We ran out of food at 8.30pm and went dry at 9.30pm. We could not bring in extra supplies from the breweries because real ale has to be left standing for 24 hours. So, sadly, we had to shut the door.”

The Herald wants you to buy the weekly to get the whole story.

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A-B gains, but Bud.TV’s future uncertain

Anheuser-Busch reported short term gains Tuesday, saying that beer sales to retailers have rebounded in May after a disappointing April.

The brewer said sales from wholesalers to retailers for the whole company, as well as just for its core beer brands including Budweiser and Bud Light, rose at a mid-single digit percentage rate. So far, sales to retailers are up 1 percent quarter to date.

Executives also presented a broad overview of the future during A-B’s investor conference in St. Louis.

(The) told analysts that the company is focused on growing its core U.S. business even as it cranks up expansion in China and experiments in exotic drinks like a beer-tomato cocktail.

The nation’s largest brewery said it expected earnings per share to grow more than 10 percent this year, outpacing the company’s goal of 7 percent to 10 percent growth. Earnings per share in the current quarter will probably fall short of 7 percent, but growth should accelerate in the second half of the year, the company said. Last year, A-B earned $2.53 per share.

The company indicated it will again change its online marketing in response to the disappointing debut of Bud.TV.

A-B spent about $12 million to create 2,000 minutes of proprietary content for Bud.TV, which launched on Super Bowl Sunday in February.

But tight controls on the website — meant to stop underage viewers from accessing the skits and shows, some of which included beer — put the company in a “no-win situation.”

The site’s shows will likely be used at other A-B beer sites, although the company indicated Bud.TV would still play a role in marketing efforts.

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Miller Chill goes national

Miller ChillIt seems we failed to report this earlier, but having passed test marketing with flying colors Miller Chill is going national.

Miller Brewing indicates the beer – 4.2% abv with 110 calories and 6.5 carbs – should be in all markets by the week of July 9th.

Miller Chill is modeled after a popular style of Mexican beer called a “chelada,” and flavored with lime and salt.