Boston Beer founder Jim Koch revealed a plan Thursday to supply smaller breweries with 10 tons of hops they might not otherwise have access to.
“. . . we looked at our own hops supplies at Boston Beer and decided we could share some of our hops with other craft brewers who are struggling to get hops this year.”
Details about the offer have been posted at the Samuel Adams website – look for “Hop-Sharing Program.”
Scottish & Newcastle, the biggest brewer in Britain until it gets taken over by Carlesberg and Heineken, will close its largest brewery in the UK and eliminate 362 jobs.
The brewery at Reading produces 6 million hectoliters (more than 5 million U.S. beer barrels) of S&N’s biggest selling UK brands, Kronenbourg and Fosters. About 3 million hectoliters will be outsourced to Molson Coors, while the rest will be made at remaining S&N breweries.
“It is well documented that there is general over capacity in the UK brewing sector, and these proposals have been put in place to address this issue,” said S&N operations director Stephen Glancey. “The nature of the Reading site, the amount of investment required to make it competitive and its relative cost compared with other UK facilities means there is a strong case for closure.”
Reading is the 48th major brewery to close since 1990, according to figures from the Beer and Pub Association.
Anheuser-Busch will roll out Bud Light Lime in May, backing it with a $35 million marketing campaign.
“We’re treating this as a big launch,†Dave Peacock, vice president of marketing at the company’s domestic beer subsidiary, said in the St. Louis Post-Dispatch.
Last year A-B rival Miller Brewing introduced Miller Chill, a beer flavored with lime and salt. It was one of the year’s hottest beer product launches.
Miller’s “Brew Blog” has been predicting that A-B would counter with a product like this, and reports on it today.
Peacock said Anheuser-Busch and Miller had independently concluded that flavored beers — including ones that evoke brews popular in Latino culture — can attract a wide following.
A-B’s confidence in the product is illustrated by its decision to take it directly to a national launch without testing it in regional markets. “We can’t remember a Bud family product we didn’t put into a test market,†said Peacock.
Port Brewing announced today that Russian River Brewing Company will distribute Port’s beers in the San Francisco Bay and Northern California regions.
A press release states that under the agreement Russian River will provide Port’s full range of products, including the much heralded Lost Abbey labels, to Russian River draft and bottle accounts.
“We’re very excited about this agreement,” Port Brewing director of brewery operations Tomme Arthur said for the press release. “Russian River is one of the most respected breweries in the world and serves the top draft houses and bottle shops in Northern California. Having them distribute our beers is great for our business.”
“There is a real buzz in the Bay Area regarding Port Brewing / Lost Abbey beers,” said Russian River owner/brewer Vinnie Cilurzo.
“We’re happy to have a hand in making sure that Northern California beer lovers can enjoy these great beers.”
Russian River will distribute Port Brewing/Lost Abbey beers to its accounts in the city of San Francisco and the East Bay, as well as Marin, Napa and Sonoma counties in the northern Bay Area. Deliveries are expected to begin in March, 2008.
SABMiller, previously the world’s second-biggest brewer, has completed its deal to acquire Dutch brewer Grolsch and become the largest brewing company in the world.
Reuters writes: “The deal is a sign of consolidation in the global brewing industry as brewers look to cut costs as input prices for malting barley and aluminum cans have risen and to create a bigger platform for their top brands.”
SABMiller, which makes Miller Lite, Castle and Peroni beers, has said it plans to expand the Grolsch brand across Africa and Latin America.
With the deal SABMiller passes InBev as the world’s largest volume brewer.
Anheuser-Busch sales were up in 2007, but fell short of Wall Street’s expectations, in part because of lagging sales of Corona.
The business of beer brewing companies can be confusing.
The good news for A-B was that U.S. beer sales increased 8 percent in the fourth quarter and estimated U.S. beer market share was 48.5 percent in 2007, up from 48.2 percent in 2006.
Grupo Modelo — which makes Corona, is partly owned by Anheuser-Busch and has been a big driver of A-B’s recent profit growth — saw equity income drop 12%.
Edward Jones analyst Jack Russo said the earnings miss was partly due to a higher-than-expected tax rate, in addition to Modelo’s stumble.
“The core business looked to be about the same,” Russo said. “The beer industry had a pretty good year in 2007. But unfortunately, this Modelo piece is big” for Anheuser-Busch, he said. An expected period of weaker contributions from Modelo will be a drag on A-B’s results, he said.
Benj Steinman, publisher of Beer Marketer’s Insights, pointed out that core brands Budweiser and Bud Light continue to lag. Growing overseas sales and revenues from imports that A-B distributes are the only forces driving up sales, he said.
“The consumer preferences are seemingly shifting to craft beers and, to a lesser extent, imports,” Steinman said.
Germany’s beer consumption has dropped to the lowest level since the government began collecting statistics in 1993.
Beer consumption in Europe’s largest economy fell 3.7 percent (in 2007) to 88.5 million hectoliters, the lowest since the Federal Statistics office, based in Wiesbaden, started collecting figures excluding non-alcoholic beer in 1993, a report showed today.
“Beer consumption is dependent on the weather and also tends to peak when we have special events,” Marc-Oliver Huhnholz, a spokesman for the Brauer-Bund brewery association in Berlin, said in an interview. “Our industry hopes for a long, hot summer and that the German soccer team will do really well in the European soccer championship this year.”
Beer sales have also been declining in the past decade as more and more Germans switch to lighter or non-alcoholic beverages, the group said. German brewers sold 2.9 percent less beer last year, the biggest drop since 1998, the report said.
One story suggest that microbreweries and brewpubs could help reverse the trend.
Berlin’s Oliver Lemke, who owns four small breweries, said the overall slump reflects the destruction of small local breweries by big corporations.
“There used to be 100 breweries in this neighborhood alone,” Lemke said. “They died out in the 1970s with the trend toward mono-breweries. The big breweries – for example Warsteiner or Licher – said: ‘We’re only going to make one sort of beer, a premium pilsner, and we’ll market it nationwide.’ And that inevitably leads to a dead-end. At some point, even the world’s biggest idiot notices that there’s virtually no difference between a Warsteiner and Licher.”
The story has a familiar ring to it: “It’s difficult for independents to break through against the conglomerates. The big brewing companies control distribution networks and encourage pub owners to feature their products exclusively by offering loans, price rebates and free tapping and refrigeration systems, beer glasses and even ashtrays.”
After more than three months of negotiations, Scottish & Newcastle agreed a takeover offer from European rivals Carlsberg and Heineken.
S&N, Britain’s largest brewing company, produces Newcastle Brown and many other brands, including Foster’s and Kronenbourg 1664 beer.
Carlsberg of Denmark and Heineken will divide Scottish & Newcastle’s assets between them and share the bill, with Carlsberg taking a slightly larger part. Heineken will obtain the British business, and Carlsberg will take full control of Russia’s largest brewer, which it owned with Scottish & Newcastle.
Analyst point out that Carlsberg’s interest in the Russian market – where it and S&N shared a partnership – was a driving force behind making the deal.
The takeover will give Heineken access to Britain’s cider market, which is growing 18.6%. It will also get Scottish & Newcastle’s businesses in Ireland, Portugal, Finland, Belgium, the United States and India.
Wickwar Brewing Company of Gloucester won Supreme Champion Winter Beer of Britain 2008 during the Campaign for Real Ale’s National Winter Ales festival in Manchester.
Station Porter (6.1% abv) bested Robinson’s Old Tom and Hop Back Entire Stout for the top award. Wickwar describes the beer as “a rich, smooth dark ruby brown ale.”
Old Ales & Strong Mild Category
Gold – Purple Moose, Dark Side of the Moose (Porthmadog, Gwynedd)
Silver – West Berkshire, Maggs Magnificent Mild (Thatcham, Berkshire)
Bronze – Highland, Dark Munro (Birsay, Orkney)
Stouts
Gold – Hop Back, Entire Stout (Salisbury, Wiltshire)
Silver – Spitting Feathers Old Wavertonian (Waverton, Chester)
Bronze – Spire, Sgt. Pepper Stout (Chesterfield, Derbyshire)
Porters
Gold – Wickwar, Station Porter (Wickwar, Gloucestershire)
Silver – E&S Elland, 1872 Porter (Elland, West Yorkshire)
Bronze – Acorn, Old Moor Porter (Barnsley, South Yorkshire)
Barley Wines
Gold – Robinson’s Old Tom (Stockport, Cheshire)
Silver – Durham, Benedictus (Bowburn, Co Durham)
Bronze – Mighty Oak, Saxon Song (Maldon, Essex)
After three months of battles, Scottish & Newcastle has agreed to enter discussions that would result in Carlsberg and Heineken taking over the UK brewing giant.
The Times Online reports:
S&N agreed to open its books after the pair increased their bid for the third time to 800p a share, ending a three-month takeover stand-off.
The group’s chairman, Sir Brian Stewart, had fiercely held out against the Dutch and Danish suitors, but sources said the two sides entered talks this week.
Heineken and Carlsberg first approached S&N in October. S&N owns the Newcastle Brown, Kronenbourg and Strongbow brands, but the center of interest is Baltic Beverages Holding, the fast-growing Russian and Baltic brewer that S&N jointly controls with Carlsberg on a 50-50 basis.
Anheuser-Busch has taken its Budweiser & Clamato Chelada and Bud Light & Clamato Chelada national.
The name Chelada is a shortened form of the Spanish word michelada which loosely translates to “my cold beer.”
A-B successfully tested the products in several markets, following the heals of the spectacular success of Miller Chill. The drinks blend Bud and Bud Light with Clamato Tomato Cocktail, made by Cadbury Schweppes Americas Beverages (CSAB).
A press release suggests, “best enjoy Budweiser & Clamato Chelada and Bud Light & Clamato Chelada, gently rotate the chilled can once before pouring. Then, serve cold, or pour over ice, into a traditional goblet-style glass and garnish with a slice of lime or celery stalk. Salting the rim of the glass or adding a dash of hot sauce to the beer allows adults to further customize Chelada. The beers also pair well with traditional Latino dishes such as ceviche, chicken enchiladas and tamales.”
Anheuser-Busch’s announcement that beer shipments increased in 2007 and in the most-recent quarter sent its stock soaring. Prices rose 5% after the report.
Although A-B’s shipments increased by 2% during the year most of the growth was in imports. A-B’s core brand shipments increased by 0.3 percent.
The overall growth was “due to the success of our initiatives to broaden the company’s beer portfolio,” said August A. Busch IV, chief executive, in a statement. The wider portfolio and a planned increase in marketing to accelerate core beer sales “position Anheuser-Busch for growth in volume and earnings” this year, he said.
Sales from distributors to retailers grew 1.3% for the full year and fourth quarter of 2007, adjusted for the number of selling days. But after acquired and imported brands were subtracted out of the equation, sales of core brands actually fell.
“Momentum remains elusive for A-B,” said Mark Swartzberg, an analyst with Stifel, Nicolaus & Co., in a research note Monday. “Core brands have yet to produce sustained growth.”
Beer thieves strike not once, but twice, in Georgia.
According to reports filed with Dougherty County police, Loren Lentz said that sometime between Dec. 21 and Thursday a 2004 Hyundai semi-trailer was taken from the 600 block of McCollum Road.
The trailer contained several kinds of Miller brand beer, the report shows.
In another incident, Don Wilson of Miller Brewing told police that more than 300 cases of beer valued at $6,000 were swiped after a beer-laden tractor-trailer was stolen, reports show.
Proof that Miller Lite really is less filling?
The Brewers Association continues to reveal more details about “SAVOR: An American Craft Beer & Food Experience” May 16-17 In Washington, D.C.
The event will feature “educational salons.” Scheduled speakers include: Sam Calagione of Dogfish Head Craft Brewery; Jim Koch of Boston Beer; Randy Mosher, author of “Radical Brewingâ€; Marnie Old, Assistant Dean of Wine Studies at the French Culinary Institute; Garrett Oliver, brewmaster of The Brooklyn Brewery; and several “savvy cross drinkers” including Lauren Buzzeo, Assistant Tasting Director of Wine Enthusiast magazine; Ray Isle, Senior Editor of Food & Wine magazine; and Ken Wells, Senior Editor of Conde’ Nast Portfolio.
The BA previously announced the 48 breweries that will pour beer at SAVOR.
From the press release:
The public can enjoy three different tasting sessions scheduled May 16th and 17th at the Andrew W. Mellon Auditorium located at 1301 Constitution Avenue, N.W. in Washington D.C.
Today, American beers are judged to be among the world’s best and have earned a respected place at the table alongside wine. In fact, two-thirds of today’s wine drinkers consume beer. This past summer National Public Radio observed, “Beer has gone from the House of Commons to the House of the Lords.†Additionally, Gallup in July 2007 confirmed beer is still the most popular adult beverage in the U.S.*
To ensure attendees can interact directly with the craft brewers, each session will be limited to no more than 700 consumers. Tickets are $85 each and will include a wide variety of small dishes and appetizers crafted to match the taste profiles of craft beers, a commemorative tasting glass, souvenir program, Craft Beer Taster’s Journal, and 2-ounce samples of specially selected craft beers. Federal City Caterers, which has catered many White House functions and Congressional receptions, will orchestrate the food menu.
The event will wrap up American Craft Beer Week celebrations across the country.
Charalottesville, Va., brewery Starr Hill announced “that Anheuser-Busch will become the master distributor for Starr Hill, giving it the benefit of Anheuser-Busch’s logistical expertise in managing distribution, as well as access to more independent and chain retail accounts.”
From the press release:
“We’re proud that our products have been added to Anheuser-Busch’s select list of craft beers offered through its world-class distribution network,” said Mark Thompson, founder and president of Starr Hill Brewery. “Our beers have won twelve awards so far, eleven from the Great American Beer Festival and one from the World Beer cup. This alliance now offers us unparalleled distribution resources and the expertise to distribute our award-winning beers beyond our core base in Virginia. We founded Starr Hill with the mission of sharing great beer with the world, and this represents yet another step towards fulfilling that dream.”
The Daily Progress newspaper reported that “before going nationwide, Starr Hill will focus on selling its beer across Virginia for the first year of the distribution deal.”
“We’re committed to providing new and exceptional beverages to those adult consumers who are looking for specialty products,” said Dave Peacock, vice president, marketing for Anheuser-Busch, Inc. “Starr Hill has already developed a loyal following among craft beer consumers in Virginia, and together with our wholesaler network, we’re looking forward to enhancing the distribution and sales support for these award-winning beers.”
Brewing and marketing decisions will remain the responsibility of Starr Hill and its management. Starr Hill produces 3,161 barrels (31 gallons each) of beer in 2006.