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Coors, Miller to combine U.S. operations

And then there were two.

The Big Three of American brewing with become the Big Two. Brewers Molson Coors Brewing Co. and SABMiller said today they will combine their U.S. operations in a joint venture.

The makers of Miller Lite, Original Coors and Coors Light said they will share ownership equally in the new venture, but because of the economic value of their respective units SABMiller will have a 58% economic interest to Molson Coors’s 42% interest. The deal is expected to close by the end of he year.

Miller is the second largest brewing company in America and Molson Coors the third, both well behind Anheuser-Busch. Even combined they will still be smaller than A-B.

SABMiller and Molson Coors said they expect the combined brand portfolio, scale and combined management strength of the joint venture will allow it to better compete in the U.S marketplace, improving the standalone operational and financial performance of both Miller and Coors.

“This transaction is driven by the profound changes in the U.S. alcohol beverage industry that are confronting both of our companies with new challenges,” said Molson Coors Vice Chairman Pete Coors.

“Consumers are broadening their tastes and are increasingly looking for greater choice and differentiation; wine and spirits companies are encroaching on traditional beer occasions, and global beer importers and craft brewers are both taking a larger share of volume and profit growth. Creating a stronger U.S. brewer will help us meet these challenges, compete more effectively and provide U.S. consumers with more choice, greater product availability and increased innovation. The Molson and Coors families are firmly in support of this strategic transaction.”

The press release.

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Garrett Oliver editor for Oxford Companion to Beer

Garrett Oliver, brewmaster of The Brooklyn Brewery, has signed on as the Editor-In-Chief and leading author of The Oxford Companion to Beer, to be published by Oxford University Press in 2011.

The book will offer thousands of entries on beer-related topics, from history to styles, detailed methods of production, ingredients and their varieties, politics of beer, topics of debate, yeasts, climate change, wild fermentations, innovations and more.

A press release from Oxford press states, “It will be unlike any beer book ever published.” It points to Jancis Robinson’s seminal book The Oxford Companion to Wine to give readers and idea what to expect. That book weighs almost seven pounds.

“We couldn’t be more happy to be adding this title to our Oxford Food Reference list,” said Christian Purdy, director of publicity for Oxford University Press.

Oliver is author of The Brewmaster’s Table: Discovering the Pleasures of Real Beer with Real Food, which won the 2004 International Association of Culinary Professionals (IACP) Book Award and was also a finalist for the James Beard Foundation Book Award. Oliver has been brewing for 18 years and is a veteran of more than 500 beer dinners and tastings in eight countries.

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Oops, tainted beer was an accident

Labatt Breweries has figured out why some bottles of Stella Artois sold in Canadian bars were filled with concentrated alcohol.

It turns out it wasn’t a matter of tampering. A handful of bars accidentally placed the potent bottles filled with concentrated alcohol in their beer fridges. The brewery had filled them with the replacement liquid because they were intended for display only.

Neil Sweeney, vice-president of corporate affairs for Labatt, said Canadian bar owners worked in collaboration with the brewery to inspect every bottle of Stella Artois being served across the country to ensure they were in fact filled with beer.

A press release from the brewery said new control procedures have been put in place to prevent a similar incident in the future.

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Cargill to resume malting in Wisconsin

Cargilll is reopening its malting facility in Sheboygan, Wis., three years after it closed.

The facility will focus on producing limited quantities of specialty malt products for the craft brewing industry.

“That’s great news,” said Russell Klisch, president of Lakefront Brewery Inc., a craft brewer based in Milwaukee. Klisch said the prices of malt and hops – both key ingredients in beer – are increasing.

The addition of a new malting facility in Wisconsin will help reduce shipping costs for the state’s brewers, Klisch said.

However it won’t alleviate higher costs brewers across the nation are facing. Many will pay 30% to 100% more for barley malt in 2008 than they did in 2007, and similar increases hop prices are common.

Cargill has used the site as a distribution warehouse since it quit malting there in 2004. The plant’s reopening will create 11 jobs.

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Czechs won’t put Budvar brewery on market

The Czech government has decided not to take what might have been the first step toward selling the Budejovicky Budvar brewery, the Prague Daily Monitor reports.

Prime Minister Mirek Topolanek said there on no current plays to privatize the brewery. “This is no privatisation,” he said, adding that transforming the brewery into a joint-stock company would take about 12-18 months.

He also dismissed speculation that his adviser Marek Dalik is in talks with US brewing giant Anheuser-Busch.

An earlier story.

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The 60-pint hangover

What’s the result of drinking 60 pints of beer during the course of a four-day drinking binge?

A hangover. A big hangover. But not necessarily as big as that of a man in Scotland, who had a non-stop headache for four weeks, blurred vision and didn’t recover for six months.

The story:

When a 37-year old man walked into a hospital emergency room in Glasgow, Scotland last October complaining of “wavy” vision and a non-stop headache that had lasted four weeks, doctors were at first stumped, the British journal The Lancet reported Friday.

The unnamed patient “had no history of head injury or loss of consciousness; his past medical record was unremarkable, and he was taking no medications,” Zia Carrim and two other physicians from Southern General Hospital said in a case report.

When an eye specialist was called in, the fog began to clear, at least for the doctors.

The patient, said the ophthalmologist, had swollen optical discs, greatly enlarged blind spots and what eye doctors call “flame haemorrhages,” or bleeding nerve fibres.

Then the doctors learned the man revealed he had consumed some 60 pints – roughly 35 litres – of beer over a four day period, following a domestic crisis.

Severe dehydration caused the alcohol, the doctors guessed, had led to a rare condition called cerebral venous sinus thrombosis (CVST).

It took more than six months of long-term blood-thinning treatment to restore the man’s normal vision – and to get rid of the headache, the doctors reported.

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Colorado passes California in beer production

Colorado became the nation’s top beer-producing state in 2006, the first time it has led the nation since 1990.

Primarily because of production at the very large Coors Brewing and Anheuser-Busch facilities in northern Colorado, the state’s brewers made more than 23.3 million barrels of beer according to the Beer Institute.

“It’s true that most of that volume is from Coors and Anheuser-Busch, a very high percentage of it,” said Doug Odell, president of the board of directors of the Colorado Brewers Guild. “But I think the real story is that there are a hundred other breweries in the state of Colorado contributing a great variety of beer styles and beer flavors.”

Odell is an owner and brewmaster of Odell Brewing Co. in Fort Collins, home to fast-growing New Belgium Brewing.

“Our first full year (1989) we sold about 900 barrels,” Odell said. “This year we are going to sell about 39,000.”

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Thieves drive off with city’s supply of Moosehead

Using two stolen trucks, thieves made off with two trailers full of Moosehead beer yesterday, stealing a total of 114,000 bottles and cans from a Toronto-area loading yard.

Moosehead drinkers in Ontario would be wise to stock up today,” spokesman Joel Levesque said. “We expect it may take until early next week to replenish the stolen beer.”

Levesque said the brewery was scrambling to arrange replacement beer to stock bars and retail stores.

“Our biggest fear is there will be a shortage in the Toronto area. That’s a lot of beer,” he said, before adding a partisan marketing comment. “It strikes us the thieves obviously know what the consumers want.”

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UK authorities ban Stella, Miller advertisements

UK authorities have banned a pair of beer ads – including one for Miller Genuine Draft they said appealed to children.

The Advertising Standards Authority also told InBev, the brewer of Stella Artois, it can no longer boast that its lager is produced by a family that has been dedicated to brewing for six centuries.

Stella Artois movieThe ruling comes at just as InBev launched a spectacular new Stella Artois website that leans heavily on the 1366 connection using the rich cinematic techniques Stella has long been associated with.

Stella Artois has been brewed in Leuven (Belgium) since 1366, and was bought Artois family in nly since 1717. The ASA said the Artois brand was no longer family-owned and it was untrue to claim that “one family of common ancestry had been involved in the brewing of Stella Artois for six centuries”.

The ruling is related only to advertising in the UK and won’t affect the new website.

To create interest in the site before it went public yesterday representatives of Stella reached out to the blogosphere, shipping bloggers a promotional package with a poster and coasters and offering a sneak preview of the site – which might take several hours to explore. The company’s blog links back to some of the reviews and also has additional information, such as interviews with the creators.

In the Miller advertisement in question a man performs a daring series of stunts on rollerskates to impress a woman, who rewards him with a bottle of Miller Genuine Draft. “We considered that the action of rollerskating, particularly when combined with the effortless cool of the execution of a series of tricks, was likely to appeal strongly to under 18s,” the advertising board stated.

Miller countered that the advertisement was designed to appeal to those over, and script changes had been made to ensure that it was not aimed at the youth market.

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OBF donates $10,301 to foundation for blind

The Oregon Brewers Festival made a donation of $10,301 to the Oregon Commission for the Blind Foundation (OCBF) with money raised at the 20th annual Oregon Brewers Festival that took place at Tom McCall Waterfront Park July 27-30.

From the press release:

The $10,000 was a direct contribution from the festival; the additional $301 was raised at the Crater Lake Soda Co. Root Beer Garden through donations from attendees.

OBF Director Art Larrance presented a check on Sept. 11 to Charlene Cook, a teacher and former Commissioner for the Oregon Commission for the Blind (OCB). According to Cook, the money will support the goals set by the OCB, including providing access to technology and education, and emotional and physical support to blind and visually impaired Oregonians.

Larrance selected the organization in honor of his college friend, Steve Hanamura, who is legally blind. This is the second year the OBF has made a donation to the OCBF.

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A reprieve for the British pint

The British pint and mile are safe forever after the European Commission announced a policy change.

The European Union executive said British and Irish pubs may go on serving beer in pints after 2009, when such measures were due to be phased out.

A spokesman said the proposal, which must be rubber-stamped by member nations, would also help trade with the United States by extending indefinitely the right to use dual measurement in labeling in the metric and imperial systems.

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Always a parade when Fat Tire comes to town

Fat Tire and two other beers from Colorado’s New Belgium Brewing go on sale in Iowa this week, and some people figure that is good reason for a parade.

The Iowa Press-Citizen reports on two fans who drove over from Des Moines to ride their bikes and drink the beer.

About an hour later, they biked in a procession led by an Elvis impersonator who was riding a red Fat Tire cruiser to deliver a ceremonial first case of Fat Tire to John’s Grocery, 401 E. Market St.

Fat Tire, with its quirky label that displays a red bike with swollen tires, has made a mark amongst cyclists, college students, craft beer lovers and environmentalists, among others.

Starting when the parade arrived and then throughout the dreary, rainy Monday, John’s sampled the three varieties of the company’s beer that now are being sold in the state – Fat Tire Amber Ale, a light Belgian-style beer with mild hops and malt; 1554, a black ale; and Mothership Wit, an organic Belgian wheat – and collected entry forms for the red bicycle giveaway.

“I am just happy I will not have to keep telling people why they can’t have Fat Tire,” John’s Grocery “Bier guy” Doug Alberhasky said while pouring for the early morning crowd.

Initially Iowans will be able to buy only those three beers and in 22-ounce bottles. In about three months, kegs and six packs also will be distributed.

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‘We Don’t Serve Teens Week’

“We Don’t Serve Teens Week” begins today and Anheuser-Busch is placing ads in Newsweek, TIME and US News & World Report as well on nearly 900 billboards.

The government initiated the program in 2006. “We Don’t Serve Teens” provides parents and other adults with tools and information to prevent underage drinking and its negative consequences.

A survey of teens conducted by the GfK Roper Youth Report shows the majority of teens (69%) ages 13 to 17 have consistently cited their parents as the No. 1 influence on their decisions to drink or not.

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Budvar could be sold; A-B in the picture

State-owned Budejovicky Budvar could be partially sold off with a strategic shareholder preferably brought in, Czech minister of agriculture Petr Gandalovic said in a debate on the country’s public television network.

And the leading candidate to buy into the brewery?

American Anheuser-Busch, brewer of Budweiser, according to the Financial Times.

Two bankers indicated that Heineken would also be interested in the brewery, but that A-B had better reason to pay the high price the Czech’s are seeking.

Trademark issues surrounding the Budweiser name, the first banker said, constitute grounds for A-B to pay a premium for the company. A-B, he said, would resolve the issue and save the company some $25 million in legal costs per year: “more than the net income of [Budejovicky Budvar].”

A company source at Budvar declined to comment on potential bidders. The company source did confirm earlier reports that the firm is being converted into a joint-stock company. The ministry of agriculture, the company source said, has selected a financial and a legal advisor and is now looking for a Czech auditor. The company source emphasized that the ministry of agriculture the privatization process.

The agricultural minster said these steps would help assure that Budvar’s trademark is protected.