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TTB says 948 new brewery permits issued

Number of active breweries in US

The Beer Institute reports the Alcohol Tobacco Tax and Trade Bureau (TTB) registered 948 new “permitted breweries” in 2013 and there are now 3,699 active.

Analysis by the Beer Institute showed that the majority of the new permits issued in 2013 went to brewpubs. It also found four states account for one-third of all breweries in the United States: California, Washington, Colorado and Oregon.

“We have tracked the industry since our preceding trade association was first founded in 1862, and there’s a story in these numbers. Beer is constantly evolving in the U.S., with more small brewers than ever before, more brands being introduced by national brewers and growing interest in imports,” Chris Thorne, vice president of communications at the Beer Institute, said for a press release.

“There was a long period of consolidation in the industry, but during that same period, beer became the most popular drink in America. Thanks in great part to the small brewer tax credit, today we’re seeing more small brewers than ever before. But consumers are also increasingly less loyal to beer, and that is a challenge for every brewer of any size,” Thorne said.

More than 90% of permitted breweries produce less than 60,000 barrels annually.

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‘Brewed in Austin. Born in Detroit’

Detroit’s Atwater Brewing has revealed a bold expansion plan that includes building two large brewing facilities far from its Michigan base.

Crain’s Business Detroit reports the Detroit company plans to open breweries in both Austin, Texas, and North Carolina in 2015. The Austin brewery, which will cost $15 million and have a capacity to produce 100,000 barrels, is in the final planning stages for construction. Mark Rieth, president and CEO of Atwater Brewing, told Crain’s the motto for the satellite facility will be: “Brewed in Austin. Born in Detroit.”

Rieth said he wants the brewer to grow in scale enough to become a mega-regional player.

“We have eight new markets ready to go as soon as product is available, with another five planned for 2016 and beyond,” Rieth said. “The additional operations out of state will allow the Detroit facilities to handle the local markets, which are, and always will be, our main priority.”

When Rieth took over Atwater in 2005, it brewed 800 barrels of beer a year. He predicts sales of 70,000 this year and 100,000 in 2015.

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Anheuser-Busch will buy Blue Point Brewing

Anheuser-Busch today announced it has agreed to purchase Blue Point Brewing Co. in New York. Terms of the agreement were not disclosed.

In 2013, Blue Point sold approximately 60,000 barrels, with 50 percent of the volume from its flagship brand, Toasted Lager.

Mark Burford and Peter Cotter founded the brewery 15 years ago in Patchogue, N.Y., where it will continue to operate. In a press release, A-B stated it plans to invest in the brewery to grow its operational capabilities and enhance the consumer experience over the next few years.

“We are deeply grateful to our family of loyal employees and customers. Our success was made possible by the hard work of good people and good beer in Patchogue,” Cotter said for the press release.

“As we welcome Blue Point into the Anheuser-Busch family of brands, we look forward to working with Mark and Peter to accelerate the growth of the Blue Point portfolio and expand to new markets, while preserving the heritage and innovation of the brands,” said Luiz Edmond, CEO of Anheuser-Busch.

Anheuser-Busch’s purchase of Blue Point is expected to close in early second quarter of 2014.

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Craft brewers boost US economy by $33 billion

2012 craft beer impact

The Brewers Association announced that by its calculation craft brewers contributed $33.9 billion to the U.S. economy in 2012.

The figure is derived from the total impact of beer brewed by craft brewers as it moves through the three-tier system (breweries, wholesalers and retailers), as well as all non-beer products that brewpub restaurants sell.

“With a strong presence across the 50 states and the District of Columbia, craft breweries are a vibrant and flourishing economic force at the local, state and national level,” BA staff economist Bart Watson said. The BA is a non-profit organization that most of the 2,000-plus craft breweries in the country belong to.

In addition to the national impact, the BA examined output of the craft brewing industry by state, as well as the state economic contribution per capita for adults over 21.

Top Five States (2012)

State 2012 Output
California $4.7 billion
Texas $2.3 billion
New York $2.2 billion
Pennsylvania     $2 billion
Colorado $1.6 billion

Top Five States in Age 21+ Output per Capita (2012)

State 2012 Output/Capita
Oregon $448.46
Colorado     $436.50
Vermont $418.57
Maine $324.36
Montana $315.37

For some or all of 2012, 2,347 craft breweries operated in the U.S., comprised of 1,132 brewpubs, 1,118 microbreweries and 97 regional craft breweries. During this timeframe, craft brewers sold an estimated 13,235,917 barrels of beer, with a retail dollar value estimated at $11.9 billion* The industry also provided more than 360,000 jobs, with 108,440 jobs directly at breweries and brewpubs, including serving staff at brewpubs.

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Brew Hub will brew (some) Cigar City beer

Brew Hub, the largest of recently opened operations that will brew beer for other companies, has announced the first clients that will have beer made in its Florida brewery. They are Cigar City Brewing; Orange Blossom Pilsner; and BJ’s Restaurants.

Brew Hub will brew a variety of beer brands for each company at its Lakeland facility and distribute the beer throughout Florida and eventually other southeastern states. First beers are expected to be shipped in May.

The company refers to this as “partner brewing” — a process that allows craft brewers not only to brew their beer to exact specifications under the supervision of their own brewmaster, but also to package and distribute from the Brew Hub brewery and make their beer available for export to international markets. Brew Hub also offers services including sales, marketing, logistics, compliance and government affairs.

“These guys know what they are doing, and I am excited for the opportunity to be able to grow Cigar City Brewing without sacrificing quality or compromising the brewing process,” Joey Redner, Cigar City Brewing founder and CEO, said for a press release. “When you combine Brew Hub’s experience with a new state-of-the-art craft brewery in our home state of Florida, we knew this partnership could help us get more Cigar City beer into the hands of people who love it.”

“The partnerships we’ve formed with Cigar City, Orange Blossom Pilsner and BJ’s Restaurants are exactly why we formed our company,” said Tim Schoen, founder and CEO of Brew Hub.

Brew Hub will brew approximately 40,000 barrels of beer in 2014 for the three partners combined. The Lakeland brewery will have an annual capacity of 75,000 barrels (one million cases). Brew Hub plans to open four additional breweries over the next five years.

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Duvel Moortgat buys Boulevard Brewing

Belgium’s Duvel Moortgat Brewery today announced a deal to buy Boulevard Brewing in Kansas City, the 12-largest craft brewery in the United States.

Michel Moorgat, whose family owns the Belgian company, indicated that it plans to expand distribution of Boulevard both in the United States and throughout the world. “I see here in Europe that consumers are getting more and more interested in American craft beers,” he told The New York Times. “In the future, with this partnership, we will be able to develop the taste for those beers more substantially here and in other countries like Japan and China.”

Boulevard founder John McDonald will remain a “substantial” shareholder and have a seat on the board in the combined company. Boulevard will sell about 180,000 barrels (a barrels contains 31 gallons of beer) this year, but ultimately, with the investment Moortgat will provide, could make more than 800,000 barrels. Its flagship Unfiltered Wheat accounts for well over half of production, but it is better known among beer fans for its Smokestack series. That includes regular offerings like Tank 7 as well as seasonal releases such as Saison Brett and Bourbon Barrel Quad.

“Since I started Boulevard in 1989, the company’s long-term future has always been top of mind,” McDonald said. “I wanted to find a way to take the business to the next level while retaining its essence, its people, its personality—all the characteristics that make our beer and our brewery so important to Kansas City and the Midwest.”

“Our path for growth became abundantly clear as I got to know John and Boulevard,” Moortgat said. “Our companies share the same values. We have great mutual respect for each other’s achievements and maintain a deeply-held belief in exceptional quality as the platform for long-term success.”

The transaction between the two privately-held companies is expected to close by the end of the year; no financial details will be disclosed. First Beverage Group acted as advisor to Boulevard.

Moortgat was one of the original members of the partnership that started Brewery Ommegang in 1996, and eventually bought 100 percent control of that brewery. As well as brewing the iconic Duvel it owns several other brands in Europe, including La Chouffe and De Knoninck.

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Michigan considers 16-ounce ‘pint-size’ law

A bill introduced last week would amend the Michigan Liquor Control Act to require each pint of beer have at least 16 ounces. It would make it an offense to “advertise or sell any glass of beer as a pint in this state unless that glass contains at least 16 ounces of beer.”

Rep. Brandon Dillon, R-Grand Rapids and a co-sponsor of the bill, said short pints aren’t the most pressing issue facing the state, but “a lot of people, I think, would appreciate knowing what they get when they order a pint.”

Some pint-style beer glasses with thicker bottoms hold as little as 12 to 14 ounces.

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Alchemy & Science acquires Coney Island brands

Alchemy & Science announced that it has acquired all rights to the Coney Island beer brands.

Jeremy Cowan, who founded He’brew Beer in 1996, launched the Coney Island brand in 2007. Alan Newman, president of Alchemy & Science, said that as part of the transaction, Cowan will join Alchemy & Science in an advisory capacity. He’brew Beer is not part of the deal and Cowan will continue to operate his own, new, brewery in upstate New York.

“Jeremy is very excited to join us and be an important part of the future of Coney Island brands,” Newman said for a press release. “We are thrilled to collaborate with him to build on his hard work. He is a talented brewer with a flair for eye-catching branding. And personally, I am thrilled to re-visit my youth spent in Coney Island.”

Alchemy & Science – located in Burlington, Vt. – describes itself as a craft beer incubator.

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Founder’s daughter resurrecting New Albion brand

Renee DeLuca, daughter of craft brewing icon Jack McAuliffe, plans to resurrect his legendary New Albion Brewing brand.

DeLuca has a deal with Mendocino Brewing Co., located down the road from where New Albion started in Sonoma, Calif., to make New Albion beers. The will begin with the flagship pale ale. She expects to begin selling the beer before the end of the year.

McAuliffe constructed much of his brewery — the first purpose-built “microbrewery” — himself, opening it in 1976 and operating it until 1982. Mendocino bought, and still owns, some of that original equipment.

Earlier this year, Boston Beer Co. produced a one-time run of New Albion Pale Ale, with the profits all going to McAuliffe, who lives in Arkansas. “We … are happy that its legacy will be kept alive with the help of Jack McAuliffe’s daughter,” Boston Beer founder Jim Koch wrote in an email to the Santa Rosa Press Democract. “To see a new generation of craft drinkers enjoy New Albion Ale today pays great tribute to brewing pioneers, like Jack McAuliffe, who sparked the American craft brewing revolution.”

In “Ambitious Brew: The Story of American Beer” author Maureen Ogle put the importance of McAuliffe and New Albion Brewing in perspective. “I think what really matters about Jack,” Ogle told the Press Democrat, “is that he showed people, really ordinary people … that it was possible to build a brewery.”

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West Yorkshire porter champion at GBBF

CAMRA, the Campaign for Real Ale, announced that Elland 1872 Porter has been crowned the “Best Beer” in Britain at the Great British Beer Festival in London. And for the second year in a row the Champion Winter Beer winner also won Champion Beer of Britain at the GBBF.

Competition chair Colin Valentine said: “It was a really tough decision but Elland 1872 Porter is a fantastic beer and a well deserved winner.”

Elland head brewer Michael Wynnyczuk said: “I’m utterly shocked. It’s a great beer but after we won the Winter Ales competition you wonder about it in the summer GBBF competition, as people may prefer different styles of beer in warmer weather. But we know it’s a great beer and we’re really proud to be crowned Champion Beer of Britain.”

Overall winners
Gold – Elland – 1872 Porter (West Yorkshire)
Silver – Buntingford – Twitchell (Hertfordshire)
Bronze – Fyne Ales – Jarl (Argyll)

Mild category
Gold – Great Orme – Welsh Black (Conwy)
Silver – Cotswold Spring – Old Sodbury Mild (Gloucestershire)
Bronze – Fernandes – Malt Shovel Mild (West Yorkshire)

Bitters category
Gold – Buntingford – Twitchell (Hertfordshire)
Silver – Moor – Revival (Somerset)
Bronze – Surrey Hills – Ranmore Ale (Surrey) and Butcombe Bitter (Somerset)

Best Bitters
Gold – Mordue – Workie Ticket (North Shields)
Silver – Surrey Hills – Shere Drop (Surrey)
Bronze – Purple Moose – Glaslyn (Gwynedd) and Woodfordes – Nelsons Revenge (Norfolk)

Golden Ales
Gold – Fyne Ales – Jarl (Argyll)
Silver – Buntingford – Polar Star (Hertfordshire)
Bronze – St Austell – Proper Job (Cornwall)

Strong Bitters
Gold – Beeston – On the huh (Norfolk)
Silver –Marble – Dobber (Greater Manchester)
Bronze – Castle Rock – Screech Owl (Nottingham)

Speciality Beers
Gold – Growler Brewery, Nethergate – Umbel Magna (Suffolk)
Silver – Saltaire – Triple Chocolate (West Yorkshire)
Bronze – Conwy – Honey Fayre (Conwy)

Champion Winter Beer of Britain
Elland – 1872 Porter (West Yorkshire)
Bartram’s – Comrade Bill Bartram’s EAIS Stout (Suffolk)
Kelburn – Dark Moor (Old Ale/Strong Mild) (Glasgow)
Hog’s Back – A over T (Barley Wine/Strong Old Ale) (Surrey)

Champion Bottled Beer of Britain
Gold – Molson Coor’s – Worthington White Shield (Burton on Trent)
Silver – St Austell – Proper Job (Cornwall)
Bronze – Harvey’s – Imperial Extra Double Stout (East Sussex)

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Beer writing contest launched

The North American Guild of Beer Writers has announced it will conduct an annual competition for writers, bloggers, broadcasters and authors.

The NAGBW aims to broaden the conversation about beer and brewing, raise the standards of writing, provide leadership and continuing education for practitioners of our profession while also encouraging and supporting more participation throughout all media channels.

The NAGBW’s awards will honor the best beer and brewing industry coverage in seven categories. The deadline to enter is Aug. 26, and the fee for each entry is $15 for guild members and $30 for non-members. Participants may submit their entries online.

For more information about the guild and membership visit the website (www.nagbw.org).

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Post office would like to deliver beer

Postmaster General Patrick Donahoe says the U.S. postal service would like to get into the business of shipping beer.

In an interview with The Associated Press, Donahoe said Thursday delivery of alcoholic beverages is on his wish list as the agency considers ways to raise revenue and save money after losing $16 billion last year.

Donahoe said delivering alcohol has the potential to raise as much as $50 million a year. Donahoe said his agency has looked at the possibility of using special boxes that would hold two, four or six bottles and ship for a flat-rate anywhere in the country.

“There’s a lot of money to be made in shipping beer, wine and spirits,” Donahoe said. “We’d like to be in that business.”

Mailing alcoholic beverages is currently restricted by law, but the Senate passed a postal reform bill last year that included a provision allowing the agency to deliver alcohol. The bill required that such shipments would have to comply with any state laws from where the shipment was originated and delivered. The measure also said the recipient had to be at least 21 years old and would need to provide a valid government-issued photo identification upon delivery.

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GABF and craft beer growing pains

The increasing popularity of craft beer hasn’t made life any easier for organizers of the Great American Beer Festival in Denver.

Tickets to the 2013 Great American Beer Festival sold out in 20 minutes Wednesday. The Brewers Association handled the sale in two parts — Tuesday offering tickets only to members of the Brewers Association and American Homebrewers Association. That allotment lasted 90 minutes, with tickets for the Saturday afternoon members only session going first. In 2012, public tickets sold out in 45 minutes, while in 2011 tickets were available for a week.

Hundreds of tickets were available on StubHub within minutes after they went on sale through Ticketmaster, at much higher prices of course.

Not surprisingly, a post on the GABF Facebook page was followed by scores of comments from disappointed, and angry, beer fans.

Hi Everyone. We’re reading your comments, and we hear your frustration about scalpers and the secondary market. We share those concerns and wish there was a feasible fix. Unfortunately, there’s no perfect way to successfully avoid a secondary market for hot tickets—whether for popular concerts, sporting events or festivals like the GABF.

There are measures in place to decrease access for scalpers, including ticket limits we set for GABF ticket purchases (enforced by Ticketmaster), and Ticketmaster’s anti-bot and other security measures. Does this prevent scalper access? No, but it does decrease it. We will continue to evaluate options and solutions going forward.

Earlier in July hundreds of breweries that tried to sign up to serve their beer at the festival and have it judged in the related competition were frustrated when space disappeared in less than two hours. That led to changes for both this year’s festival and 2014. GABF director Nancy Johnson outlined those changes in a messages to Brewers Association members:

Here is a snapshot of where we stand for 2013 and an overview of how we plan to handle registration for GABF 2014.

Actions taken this year to address the issue include:

2013 Competition: Our 2013 annual plan called for a 7% increase in competition beers being judged. After registration closed and in recognition of the higher-than-ever demand, we moved quickly to find a way to increase the number of beers (and judges) in the 2013 competition by 200. As a result, 4,875 beers will be judged in 2013, which represents 12% more beers being judged in the competition than in 2012, and five percent more than originally planned for in 2013.

2013 Festival Hall Booth Space: Once capacity for the competition filled, eligible breweries on the wait list were offered a festival booth space. As of July 30, 616 breweries will pour 3,087 beers in the hall. That’s 11% more beers than in 2012, and note that this number does not include guild or special event beers.

2014 GABF Brewery Registration Process
The Brewers Association takes very seriously the “race to enter” registration issue that has resulted from a rapidly growing number of breweries along with increasing interest in the competition and festival. Since registration closed this year, we have been working to address this issue by devising a plan for 2014 that aims to eliminate the “race to enter” problem for future GABFs.

Based on this work, the BA plans to introduce a different entry method next year. This “all comers” style brewery registration process will achieve a few important goals:

*Eliminate the race to enter before all slots fill up

*Increase the number of breweries that can enter the competition

*Increase the number of beer entries

The 2014 GABF brewery will remain open for set number of days, and all interested breweries may enter the competition. The number of beer entries allowed per brewery will be based on doing the math of the number of breweries that registered during the sign-up period and the pre-determined capacity of beers that we can successfully judge that year.

Here is an example to illustrate:

*Total number of beers that can be judged = 5,000

*The registration period lasts (is open) for two weeks; no clambering to enter during one short time window

*Total number of eligible breweries that apply = 1,000

*5,000 beers / 1000 breweries = 5 entries per brewery

*Thus in this scenario, the competition would accept the first 5 entries from every brewery that entered

*Let’s say 2,500 breweries entered instead of 1,000: in that case, every brewery could enter 2 beers in the competition. The math would work like that for whatever number of breweries entered (Max. capacity of beers that can be judged – divided by – number of breweries entering the competition)

*Festival booth space would be handled separately

As you can imagine, many important details remain to be worked out, but we believe this 2014 GABF brewery registration plan represents a solid start toward an increasingly fair and accommodating competition for the future.

The festival will accommodate 49,000 attendees during four sessions (the Saturday afternoon one is smaller), which includes volunteers, brewer representatives and the press.

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Alltech honors Stewart, Owens

Kentucky-based Alltech honored two brewing and distilling pioneers at its first International Craft Brewing and Distilling Convention, held last week in Dublin, Irelnd.

“Both recipients have dedicated their lives to educating and inspiring young brewers and distillers, while being innovative in the industry in their own professional capacity,” Alltech president Perase Lyons said, announcing awards to Graham Stewart and Bill Owens.

Stewart received the outstanding service in brewing and distilling education award. He is professor emeritus in brewing and distilling at Heriot-Watt University, Edinburgh, and special professor in bioethanol fermentation at The University of Nottingham, England.

He received his BSc in microbiology and biochemistry from the University of Wales and his PhD and DSc degrees from Bath University. He was the director of the International Centre for Brewing and Distilling at Heriot-Watt University from 1994-2007. He held a number of positions with the Labatt Brewing Company in Canada, serving as technical director from 1986 to 1994. Since retirement, he has established a consulting company – GGStewart Associates, based in Cardiff, Wales, which provides guidance to the alcohol and fermentation industries.

Stewart was president of the Institute of Brewing (now the Institute of Brewing and Distilling, or IBD) in 1999 and 2000. He is a member of the American Society of Brewing Chemists (ASBC) and the Master Brewers Association of the Americas (MBAA). He holds fellowships in the IBD, the Institute of Biology and the American Academy of Microbiology. Stewart has more than 300 publications to his name. Honors include the Horace Brown Medal of the IBD (2009), the Award of Distinction of the ASBC (2008), the Presidential Award of the MBAA (1983, 1998) and its Award of Merit (2009) and the Charles Thom Award of the Society of Industrial Microbiology (1988).

Owens was honored with the lifetime achievement in craft distilling award.

Following a successful career in photography, Owens began brewing beer again in the 1960s. He later left journalism and opened Buffalo Bill’s Brewery in 1983, the first brewpub in California, followed by Brewpub on the Green and The Bison Brewing Company. He also founded and spent two decades as publisher of American Brewer magazine, and later started BEER: The Magazine. In 2002, he founded the American Distilling Institute (ADI) and still serves as its president today. The institute has more than 600 members and hosts an annual conference drawing 900 attendees. It will host its first one-day Craft Distilling Expo in London in the fall of 2013.

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Annie Johnson wins Homebrewer of the Year

Annie Johnson of Sacramento, Calif., won Homebrewer of the Year when results of the American Homebrewers Association National Homebrew Competition were announced Saturday in Philadelphia.

A record 3,400 attended the 35th National Homebrewers Conference, 75 percent more than last year.

Johnson won with a beer she called her Lite American Lager.

Tavish Sullivan won the Cidermaker of the Year award with his Common Cider, and Mark Tanner won the Meadmaker of the Year award with his Strawberry, Rhubarb and Blackberry Mead. Local homebrewer David Barber won the Ninkasi Award as the winningist brewer in the competition. He won gold medals in the Strong Ale and German Wheat and Rye Beer categories; his homebrew club, Lehigh Valley Homebrewers also won the Gambrinus Club Award.

“Homebrewing is growing fast and attracting a more diverse following,” said AHA director Gary Glass. “I’m pleased see a woman win the Homebrewer of the Year Award, and it’s impressive that she did so in a lager category. Lagers are difficult to brew well, which shows how homebrewers are more technically proficient than ever before.”

The National Homebrew Competition recognizes the most outstanding homemade beer, mead and cider produced by homebrewers. This year, there were 7,756 entries from 2,187 homebrewers located in 49 states and the District of Columbia, U.S. Military APO, Puerto Rico, three Canadian Provinces and Belgium, entered in the first round of the competition.

First round took place at 11 regional sites in the United States. Judges evaluated 894 entries were in the second round. For the first competition, Boulder, Colo., in 1979, there were 34 entries.

Tickets for the 2013 National Homebrewers Conference went on sale Feb. 5 and sold out within 20 hours. Next year’s event will be June 12-14 in Grand Rapids, Mich.

Complete NHC results.