News

The Publican reports that pubs and breweries in the UK are in a fight to save their businesses as floods devastate areas of England.

In the wettest summer weather since records began, 500 pubs were under water with thousands suffering the knock-on effects leaving them with no water or electricity. Pubs in Gloucester were being urged to close amid health and safety fears.

Flood waters, which have caused destruction in parts of Gloucestershire, Worcestershire and Oxfordshire, are heading east with pubs in Oxford, Reading and Abingdon still on flood alert.

Anheuser-Busch profits increased 6% in the second quarter, helped by strength in its U.S. beer operations. The company forecast accelerating earnings growth for the second half of the year.

A-B sold 27.5 million barrels of beer in the United States, up 2.3%, while it moved 5.9 million barrels overseas, a gain of 1.6%. International gains were driven by increased volume in China, Canada and Mexico, partially offset by lower volume in the United Kingdom.

New products – both those produced by A-B and imports new to the portfolio – drove the growth.

U.S. distributors’ sales to retailers such as gas stations, bars and grocery stores inched up only a tenth of a percent in the second quarter versus a year ago.

If new imports such as Stella Artois and Bass Pale Ale were subtracted from the mix, sales of A-B’s “trademark” brands to retailers would have dropped 1.5%. Those include Budweiser, Michelob and Busch.

So have you wondered by a growing number of Europeans seem to be posting tasting notes for U.S.-brewed beers at Beer Advocate and Rate Beer?

A press release from the Brewers Association the association’s Export Development Program:

Efforts from the Brewers Association’s (BA) Export Development Program (EDP) have made U.S. craft beer available across much of Europe largely in part due to relationships U.S. craft breweries established with Bier & Co. (Holland’s largest specialty beer importer/distributor).

In early 2007 Bier & Co. purchased four containers of U.S. craft beer (valued at $110,000) for distribution in the Netherlands, Germany, UK, Ireland, Greece, Italy, and Switzerland. Additionally, Netherlands retailer, Mitra, has approached Bier & Co. about mixed packs of U.S. craft beers in 350 of Mitra’s stores. The negotiations of this deal are ongoing.

Since 2004 the BA has used funds from United States Department of Agriculture’s (USDA) Market Access Program (MAP) to help promote the importance of U.S. craft beer in Europe. The BA uses these funds to educate U.S. breweries about export opportunities and build global recognition for the diversity and quality of American craft beer.

In 2006 with MAP funds the BA brought two representatives from Bier & Co. to the Great American Beer Festival to educate them about U.S. craft beer. Bob Pease, Vice President of the Brewers Association says, “The relationships developed at the Great American Beer Festival between Bier & Co. and U.S. craft breweries helped seal deals between Bier & Co. and three U.S. craft breweries (five more are pending).”

In addition to work with Bier & Co. the BA has been able (with the MAP funds) to attend the Stockholm Beer and Whisky Festival. Since 2004, Systembolaget, Sweden’s alcohol retail monopoly, has added four U.S. craft brands to its general list and many more to its seasonal and limited-time offerings (these companies include: Boston Beer Company, Brooklyn Brewery, Great Divide Brewing Co, Flying Dog Brewery, North Coast Brewing Company, and Rogue Ales). Sweden now represents the largest export market for U.S. craft beers with exports in 2006 totaling in excess of $1 million. This figure does not include purchases from Left Hand Brewing Co. (Colorado), whose Milk Stout is set to launch in 200 stores in 2007.

Just in case you overlooked that last fact: Sweden now represents the largest export market for U.S. craft beers with exports in 2006 totaling in excess of $1 million.

Analysts for Citigroup predict an alliance between Anheuser-Busch Cos. and Belgian-based InBev likely and write it “will have a domino effect on the entire global industry.”

Anheuser-Busch “is at a critical juncture at this stage as it has managed to box itself into a corner,” the analysts wrote. It “has no other choice, in our view, but to combine with another global beer player to quickly dig itself out of the slow growth trajectory and restore the company’s position in global brewing.”

A big reason Citigroup is making the prediction: It believes A-B CEO August Busch IV is “incredibly focused on winning and regaining A-B’s past glory,” the report said.

The rather large boom you heard this morning came out of Yards Brewing Co. in Philadelphia.

Basically, the only production brewery in the city is breaking up. Great reporting about this on multiple fronts:

– Jack Curtin has details has his own site and the Beer Yard (link at his site).

– Don Russell (Joe Sixpack) turns the press release into English:

Founder and co-owner Tom Kehoe is splitting with his partners, Bill and Nancy Barton, and will move the 13-year-old brewery to a new, to-be-chosen location. Production of the beer is expected to continue without interruption.

The Bartons will keep Yards’ hulking brewing facility in Kensington and begin producing a new brand.

The breakup ends an occasionally bumpy, eight-year partnership that saw the beloved brewery grow into the city’s most popular microbrewed brand.

About 200 taverns throughout Philadelphia and the region serve Yards, and its flagship Philly Pale Ale is poured at Phillies and Eagles games.

“We basically had two different philosophies about how to run the company,” Kehoe said yesterday. “It was time for me to move on.”

To recap, when this is over Yards beers will be made someplace else and something else will be made at what was Yards brewery.

Curtin has the full press release and (we expect) will offer more details/commentary in the coming days.

Updated Aug. 7: The Philadelphia Inquirer has an update, more details.

City Brewery in LaCrosse, Wis. – home of the world’s largest six-pack – is selling all its locally owned beer brands to a shareholder and getting out of the beer distribution business.

Brands such as La Crosse Lager, Kul Light and Golden Leaf Wheat still will be made by City Brewery and distributed by the new company.

City Brewery created the brands in 1999 when it reopened the former G. Heileman brewery. Heileman previously had six lagering tanks big enough to hold 7.3 million cans of beer painted to look like a giant six-pack of Old Style. City had the tanks repainted to read “LaCrosse Lager.”

From the British Guild of Beer Writers site:

Adnams, the Southwold-based brewer and leisure retailer, announced today that it had secured exclusive distribution and sales rights of Meantime draught beers throughout the UK and sales rights to all Meantime packaged beers.

The move came following the strategic decision for Adnams to strengthen the range of products available to them. Alastair Hook, founder of Meantime Brewery comments, “I feel very proud that our two companies are working together. Adnams is a brand that is trusted and recognised for pushing the boundaries of what is expected from a regional brewer. They have a strong base of high quality customers throughout London and the South that are well suited to Meantime beers. Adnams and Meantime share a similar philosophy and passion which we strive to express to our consumers, who understand and identify with the special nature of our beers.”

Adnams Managing Director Andy Wood explains, “Adnams is famous for brewing a wide range of excellent English beers. By working with selected third parties like Meantime we can further enhance our portfolio of premium brands and in turn, strengthen our relationship with our customers. Adnams has a record of developing successful long-term partnerships with like-minded companies such as Bitburger and Aspalls, recognising that this gives us access to premium products that we are not able to produce ourselves.

“We have long admired the work of Meantime. Our companies share a passion for brewing interesting and flavourfull beers and the addition of Meantime draught beers compliments the Adnams range extremely well. Our sales team is fired up and roaring to go with their portfolio boosted by the Meantime deal. Meantime offer an exceptional variety of beers from Bavarian-style Helles to their Anglo-American style Pale Ale. Their latest beer, London Stout, is particularly exciting and it is fantastic to see the brewing of this famous style of beer return to its roots in London.”

Both breweries sell a limited numbers of beers from the respective ranges in the United States.

What was the effect of the decision by Czech brewery Budejovicky Budvar to make a deal with Anheuser-Busch to distribute Czechvar in the United States?

Sales were up 58% in the first half of the year.

Budvar and Anheuser-Busch signed a contract for Czechvar sales in January this year.

The two brewers have wrangled over the Budweiser trademark for more than 100 years. Disputes have been settled gradually, some of them won by the US company and others by the Czech brewer. Because A-B has the rights to the Budweiser in the US, Budvar sells its beer as Czechvar in the States.

While the growth is significant, the US was only the sixth leading market for Budvar in 2006. The brewery’s export numbers:
Germany 190,000 hectolitres, Great Britain 106,000, Slovakia 60,000, Austria 45,000, Italy 10,000, United States 8,000.

Following a recommendation by the Swedish Brewers Assocation, most brewers will begin putting information labels on beer to highlight that consumption of alcoholic beverages may be inappropriate under certain conditions.

The proposed warnings are: “Under 18? Avoid Alcohol,” “Pregnant? Avoid Alcohol,” “In Traffic? Avoid Alcohol” and “At Work? Avoid Alcohol.”

The report in the Edmonton Journal does not indicate if winemakers do anything similar.

Brewer and pub operator Marston’s has acquired the Ringwood Brewery in the south of England.

Americans know Ringwood – founded by Peter Austin in 1978 – best because Shipyard Brewing produces its Old Thumper under license in the United States. Many small breweries, particularly on the East Coast, use “Ringwood yeast” sourced from the British brewery and brew on systems manufactured by another company Austin started.

Hampshire-based Ringwood’s pubs will also be added to Marston’s estate.

“We plan to develop its excellent brands as part of our strategy to meet consumer demand for premium ales with local provenance and heritage, said Alistair Darby, Marston’s beer company managing director.

The Campaign for Real Ale (CAMRA) expressed concern that the latest acquisition will encourage a “domino effect” of consolidation in pubs and brewing.

CAMRA Chief Executive, Mike Benner said: “The practice among larger breweries of acquiring smaller competitors is a race where the only loser is the consumer who is often denied a locally brewed beer. As one of the larger breweries buys a brewery and expands their estate their competitors start hunting for their next purchase to keep up. CAMRA’s fear is that an increasing number of smaller breweries will be lost if this race continues and consumer choice will suffer as a result.

“In the last three years alone we have seen another Hampshire brewery, Gales, bought and closed by Fuller’s and Greene King bought and closed Hardys and Hansons in Nottingham, as well as buying and closing Ridley’s brewery in Essex.

“Marston’s purchased Jennings in Cumbria and invested in the future of the brewery and we hope they will continue this model with Ringwood. But, it begs the question, who is next in line for acquisition?”

Tuesday Wisconsin brewers organized a protest that harkened back to the Boston Tea Party and drew attention to a proposed law they opposed.

Wednesday that bill was tabled by the Senate Committee on Transportation, Tourism and Insurance.

The Brewpub Tourism Development Act would allow Wisconsin brew pubs to have up to six locations and produce up to 10,000 barrels of beer a year. Under current law, brew pubs can have no more than two locations if they produce more than 4,000 barrels of beer a year. The bill’s supporters said it would lift a production ceiling faced by Great Dane Pub & Brewing Co., which this year opened its third brew pub in the Madison area. Other brew pub and small brewery owners said Great Dane’s problem should be fixed. But they said the proposed legislation’s 10,000-barrel limit could affect their growth plans, especially for brew pubs seeking to also sell their beer in packaged form at liquor stores and other retail outlets.