News

Heineken has turned down SABMiller’s offer to acquire the its company and said it intends to remain independent. SABMiller’s bid was rejected by the family that controls Heineken, Bloomberg News reported. The offer, made in the last two weeks, would have made the family one of the combined company’s largest holders, one source said.

“For SAB, a way of preserving their independence is to buy Heineken,” Matthew Beesley of Henderson Global Investors Ltd. told Bloomberg News “It’s easy to underestimate the desire for management teams to be in control of their own destiny rather than to sell their business at a very high price.”

SABMiller has been the subject of speculation that AB InBev will attempt to take it over. Acquiring Heineken would help assure its independence as well as adding more than $25 billion in sales and bolster its presence in emerging markets such as Africa and Mexico.

Brew Hub has announced plans to build its next brewery in Chesterfield, Mo., just west of St. Louis. The brewery will be Brew Hub’s corporate headquarters and the second in a network of five state-of-the-art breweries the company is planning to build. Brew Hub’s first brewery opened last month in Lakeland, Fla.

Brew Hub had introduced what it calls “partner brewing.” It allows craft breweries to brew their beer to exact specifications under the supervision of their own brewmaster, and to package and distribute from Brew Hub. Brew Hub also offers its partners services including sales, marketing, logistics, legal, and government affairs.

“The announcement of our second craft brewery is a huge milestone for Brew Hub, and it’s a reflection of the incredible growth of craft beer over the past several years,” said Tim Schoen, founder and CEO of Brew Hub. “Our objective from the beginning was simply to help craft brewers grow by offering the facilities, brewing and beer industry expertise they need. Our St. Louis brewery is going to allow many more craft brewers to benefit from our model.”

The St. Louis brewery will be located off I-64 in Chesterfield, and will have an initial brewing capacity of 75,000 barrels and the potential to expand its capacity to 200,000 barrels annually. Brew Hub plans to begin construction of the St. Louis brewery by the end of the year and open the brewery in early 2016. The agreement to build Brew Hub’s St. Louis brewery is contingent upon the approval of state and local tax incentives.

“Brew Hub’s decision to build their second craft brewery in Chesterfield is a huge economic win for the entire St. Louis region,” said Denny Coleman, CEO of the St. Louis Economic Development Partnership.

The brewery will feature a 3,000-square-foot tasting room and biergarten. The brewery also will offer merchandise and free brewery tours. Brew Hub will employ approximately 55 people at its St. Louis brewery in brewing, operations, front office and its tasting room.

“We have had meetings and are negotiating partnerships with some of the top craft breweries in the Midwest,” said Schoen. “Our St. Louis brewery is going to allow these brewers to expand to new states and grow their brands like never before, and we couldn’t be more excited.”

Brew Hub currently has partnerships with several breweries, including Cigar City Brewing, Orange Blossom Pilsner, Green Man Brewing and BJ’s Restaurants. Brew Hub brews beer for all four companies at its brewery in Lakeland and is in discussions to begin brewing their beer at the St. Louis brewery when it opens.

Brew Hub plans to open three more breweries during the next five years. Specific markets will be determined based on demand, but the company is considering strategic locations in the Northeast, Mid-Atlantic, Texas and West Coast. This network of Brew Hub facilities will allow craft brewers from across the country to enter new markets.

Stone Brewing Co. has announced plans to open a production brewery and expansive destination restaurant in Berlin, Germany. Stone is making an initial investment of more than $25 million to renovate a historic gasworks complex in Marienpark Berlin, a two-acres (9,290 square meters) of indoor and outdoor space. Stone Brewing Co. – Berlin will encompass three components: a brewery and packaging hall, a Stone Brewing World Bistro & Gardens restaurant and a Stone Company Store. It is expected to open in late 2015 or early 2016.

Here are photos taken at the announcement.

And here are the details from a press release:

“This is a historic moment for Stone. I’ve wanted to say these next words for many years now: We’re coming to Europe. We’re coming to Germany. We are coming to Berlin!” said Stone CEO and co-founder Greg Koch. “It has been a long time coming and I couldn’t be more proud to say that we are finally on our way to being the first American craft brewer to own and operate our own brewery in Europe. Once open, we will bring Germany and the rest of Europe a taste of our craft beer vision, and look forward to sharing the unique beers that we have spent the last 18 years brewing.”

“Stone’s future European home will serve as the company’s international hub; a central location promoting goodwill and quality craft beer spanning the globe,” said Stone president and co-founder Steve Wagner. “With this expansion comes our commitment to brewing bold, aggressive, hop-forward beers in a country with a long history rooted in the art of brewing.”

The company will transform the setting into a one-of-a-kind destination that includes:

– A spectacular, historic, red brick main hall built in 1901 measuring 43,000-plus square feet (3,994 square meters), featuring a vaulted ceiling that will house a custom-built, stainless steel brewhouse, an eclectic farm-to-table restaurant, and retail store featuring specialty Stone beers and merchandise.

– A second 20,775-square-foot (1,930 square meters) building that will be utilized for brewing operations and house fermenters, bright tanks, and packaging equipment and materials. Ultimately, the company’s signature ales will be packaged and distributed throughout Europe from the facility.

– A third 1,300-square-foot (120 square meters) building, situated in what will be the expansive gardens, to be utilized as event space.

The property’s brewhouse will produce year-round and special-release Stone beers to be packaged, kegged and enjoyed on site and eventually distributed. Stone Brewing World Bistro & Gardens – Berlin will highlight locally grown, organic food that complements the harmonious nature and seasonality of the location’s surroundings. As proud supporters of the international Slow Food movement, Stone will ensure that every dish is made from ingredients adhering to Slow Food’s principles of good, clean, fair food. An ambassador of the craft beer movement, Stone will serve an extensive array of exceptional craft and specialty beers from other breweries in Germany, Europe and across the world, both on tap and in bottles.

Additionally, the company launched an Indiegogo crowd-participation campaign today, so fans can participate in the venture by purchasing special collaboration beers to be brewed with award-winning, renowned craft brewers from around the world at Stone Brewing Co. – Berlin once the facility is operational.

The announcement, and particularly the crowd-funding campaign, created multiple conversations at Facebook, on Twitter and other virtual locations where people gather.

Jack Joyce, who co-founded Rogue Ales, died Tuesday at the age of 71.

Joyce, a former executive at Nike, and friends opened the Rogue Public House, also known as Rogue River Brewing Co., in 1988 in Ashland, Oregon. The next year they moved the brewery to Newport, hired John Maier as brewmaster, and not long after established the Rogue Nation as a sovereign entity.

Rogue president Brett Joyce, Jack’s son, issued this statement today:

“Yesterday the Rogue Nation and Family lost our co-founder, leader, friend, and father as Jack Joyce passed away at the age of 71.

“Following a career as both a small town attorney and Nike executive, Jack and some friends founded Rogue in 1988 in Ashland, Oregon. From the outset, Jack set Rogue on a path of innovation, creativity, and rebellion. Rogue made hoppy, flavorful beers and was told that no one would drink them. Rogue made a wide range of beers and was told no one wanted variety. Rogue sold 22oz bottles of beer and was told no one would pay a premium for a single serve beer. Rogue opened multiple pubs and breweries and was told that it would be wise to follow a more efficient and logical business plan. Rogue took the road less, or perhaps never, travelled. Rogue was the first U.S. craft brewer to send beer to Japan. Rogue won 1,000 awards for product and packaging excellence. Rogue worried about getting better, not bigger. Rogue began distilling. Rogue began farming. Rogue remained dedicated to its small town roots and made sure to give back to its local communities. Rogue started a Nation. This was all vintage Jack.

“He was the true Rogue and will be missed by us all.”

Pertinent reading:

– Q&A, Jack Joyce.
– Rogue of the month: Jack Joyce.
– Rogue is different.
– Rogue and the business of art.

Breweries from five continents won awards in the 2014 World Beer Cup, collecting their commemorative plaques when the winners were announced in Denver. The competition drew 4,754 entries from 1,403 breweries in 58 countries.

“Brewers from around the globe participate in the World Beer Cup to win recognition for their creativity and brewing skills,” said CharliePapazian, president of the Brewers Association, which organizes the bienniel event.

The complete list of winners is available from the Brewers Association. Here are some of the highlights:

Chances of winning
The proportion of winning breweries winning one or more awards was 18 percent, compared to 27 percent in 2012. There was a 75.6 percent increase in breweries competing this year versus 2012, which had 799 breweries that entered beers in the competition. A total of 253 breweries took home awards in 2014, a 16.6 percent increase over 2012.

U.S. breweries accounted for 72 percent of the entries (3,403) and won 73 percent of the medals (205) — meaning 6 percent of entries won medals. German breweries entered 249 beers and won 27 medals (11 percent). El Salvador (4 entries/2 medals) and Tawain (2/1) had the best entry-to-medal percentages.

Judges
A panel of 219 judges from 31 countries participated in this year’s competition, working in teams to conduct blind tasting evaluations of the beers and determine the awards. Drawn from the ranks of professional brewers and brewing industry experts, 76 percent of the judges came from outside the United States.

Category Trends
* The average number of beers entered per category was 50, up from 41 in 2012.
* The category with the most entries was American-Style India Pale Ale, with 223 entries.
* The second most-entered category was American-Style Pale Ale, with 121 entries.
* The third most-entered category was Wood- and Barrel-Aged Strong Beer, with 111 entries.

Award Highlights
The 281 awards were won by 253 breweries.
* 226 breweries won one award.
* 26 breweries won two awards.
* Coors Brewing was the only brewery to win three awards.

Beverage World magazine has chosen Full Sail Brewing as “Craft Brewer of the Year.” The publication cites Full Sail for 26 years of “sustainable stewardship, quality, consistency and operational ingenuity.”

“It’s a great honor to receive this recognition from Beverage World,” Irene Firmat, Full Sail’s Founder and CEO, said for a press release. “When we founded Full Sail in 1987 there were only a handful of small breweries in the country and we were fortunate to be one of those early, pioneering brewers. We were inspired by the idea of bringing a fresh perspective to American beer culture by emphasizing complexity, creativity, and sophistication. We believe that one of life’s greatest joys is in celebrating moments big and small with friends, family, good food, and of course, good beer. The craft beer industry has grown and changed tremendously over these 26 years, as there are now over 3,000 breweries nationwide. Within this intensely competitive framework, we are thrilled that Full Sail has been named Craft Brewer of the Year. It is with a sense of pride and deep appreciation that we acknowledge this accolade from Beverage World.”

In the magazine, Firmat said, “Our idea of being sustainable is what our grandparents used to call being cheap.And that’s how we really like to talk about it because sometimes it can feel so esoteric, like ‘you can’t afford to do this, or that.’ But part of it for us is that because we’re an employee-owned company, things have to make financial sense. And all of the things we do from a sustainability point of view are sustainable not just for the environment, but financially as well. That’s where it gets interesting because you can engage a lot of people and not have it be, ‘I’m holier than thou’ or ‘I’m this green purist.’ No, it’s really good for business.”

The Brewers Association Board of Directors has approved changes to its statements of purpose, mission, core values and beliefs, as well as its definition of craft brewer.

“The changes to fundamental elements of our industry were undertaken with significant deliberation and consideration of many voices,” Paul Gatza, Brewers Association director, said for a press release explaining the changes. “In November 2013, at the board’s direction, the BA surveyed our voting brewery members regarding the ‘foundational documents’ of our association. The results gave us ample member input on these matters of critical importance as the Board headed into its strategic planning meeting.”

The press release outlined what has changed.

Purpose

Slightly revised, the Brewers Association now states its purpose as: To promote and protect American craft brewers, their beers and the community of brewing enthusiasts.

“In spirit and action, our purpose remains unchanged,” said board chair Gary Fish of Deschutes Brewery. “Removing the previous reference to ‘craft beers’ — which the Brewers Association does not define, but rather leaves to the beer enthusiast — allows the focus to remain on the craft brewers the BA works to promote and protect.”

Mission

The Brewers Association mission now states:

By 2020, America’s craft brewers will have more than 20 percent market share and will continue to be recognized as making the best beer in the world. We will:
– Promote access to raw materials and markets
– Support research and advances in safety, sustainability, education, technology and raw materials
– Exercise political influence to secure fair legislative and regulatory treatment
– Foster the commitment to quality
– Educate consumers to understand and champion beer from craft brewers
– Cultivate new ideas and a commitment to a living and active beer culture among craft brewers, homebrewers and beer enthusiasts

“The 20-by-‘20 objective is an aspirational goal for our craft community, with an inspiring symmetry. I’m convinced this goal is within our reach if we, as an industry, continue to focus on our strengths and passions—making and delivering high-quality, innovative, full-flavored beer to craft beer enthusiasts,” Fish said.

Core Values & Beliefs

The Brewers Association core values & beliefs are now described as follows:

– Promoting and celebrating the small, independent, traditional and innovative culture of American craft brewers
– Vigorously defending our industry and providing craft brewers with a unified voice
– Fostering transparency within our own organization
– Supporting and encouraging the responsible enjoyment of beer
– Providing stewardship for 10,000 years of brewing history
– Educating brewers and consumers about the diversity, flavor and quality of beer
– Improving the economic health of American craft brewers
– Working to build a collegial community of brewers, homebrewers and brewing enthusiasts
– Promoting ethical and legal trade practices
– Building relationships and collaborating with our industry partners

Among the changes, the word “innovative” was added to the first bullet point.

Craft Brewer Definition

The three pillars of the craft brewer definition remain the same; however, under the BA Board’s direction, some elements of each pillar have been modified to reflect the evolution within the industry. Specifically, the craft brewer definition now states:

An American craft brewer is small, independent and traditional.
– Small: Annual production of 6 million barrels of beer or less (approximately 3 percent of U.S. annual sales). Beer production is attributed to the rules of alternating proprietorships.
– Independent: Less than 25 percent of the craft brewery is owned or controlled (or equivalent economic interest) by a beverage alcohol industry member that is not itself a craft brewer.
– Traditional: A brewer that has a majority of its total beverage alcohol volume in beers whose flavor derives from traditional or innovative brewing ingredients and their fermentation. Flavored malt beverages (FMBs) are not considered beers.

Small

While the “small” component of the craft brewer definition previously encompassed the flavored malt beverage (FMB) exclusion—as FMBs are not beer—that language is now contained within the traditional segment of the definition, where it more appropriately applies. The update also added a parenthetical “(approximately 3 percent of annual U.S. sales),” which gives context to the small percentage that 6 million barrels or less of annual production represents vis-a-vis overall beer industry sales.

Independent

The revised language more tightly aligns with common beverage alcohol terminology used throughout the beer, wine, spirits and FMB businesses.

Traditional

The revised definition recognizes that adjunct brewing is quite literally traditional, as brewers have long brewed with what has been available to them.

“The revisions to the craft brewer definition reflect the evolution in thinking regarding the elements of the definition. As the industry continues to rapidly advance, so must the framework that upholds and reflects it,” Gatza said.

Co-founders Nico Freccia and Shaun O’Sullivan have announced plans to for a new 21st Amendment production brewery, tasting room, restaurant and event space located in the former Kellogg Cereal factory building in San Leandro, Calif.

They expect the facility to open later this year and have an initial brewing capacity of 100,000 barrels (a barrel equals 31 gallons), and be scalable to over 250,000 barrels. The company expects to brew over 70,000 barrels in 2014.

“Since we began packaging our beer six years ago with our Minnesota partner brewery, we have never been able to keep up with demand,” Freccia said for a press release. “Building our own local brewery will allow us to continue to focus on improving quality and consistency, and to expand into new markets where our beer is in demand.”

O’Sullivan added, “Both Nico and I are excited about making more interesting beers with our unique packaging that craft beer drinkers have come to know and love. It’s every brewer’s dream to open their own brewery and this is truly a dream come true for us.”

The facility will include a tasting room and retail area as well as the company’s headquarters. Phase two will commence in 2015 and will include a full restaurant/pub, beer garden, event and meeting rooms and more.

21st Amendment will be installing a 100 barrel, four-vessel GEA/Huppmann brew house — engineered in Germany and made in the United States #151; with an initial capacity of eight brews per day.

The company plans to continue to also have beer made under contract in Cold Spring, Minn.