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Small business mag meets big beers

Fortune Small Business takes a trip to Colorado and writer Christopher S. Stewart writes about “Small breweries, big beer” – giving attention to assertive beers from Great Divide, Oskar Blues and Avery.

He finishes with a sample of Avery’s The Beast (14.9% abv):

“At first there are outward signs of normalcy – the dark color, the unctuous texture and the fizzle when it’s poured into a glass. But when the smell of molasses gets in your nose, and the first thick drop hits the tongue, and you taste the myriad dark fruits and this buzz goes on in your head, it’s just not normal. But I like it. I think.”

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Bigger glasses headache for Belgian bars

Bigger glasses mean smaller profits for Belgian bars.

They’re not happy at InBev even though it pays for 3 million Jupiler glasses for the trade.

It began shipping the 25cl (8.45-ounce) glasses after changing the design of its Jupiler Bull logo. The new glasses are 10% bigger, and bars say they can’t raise the average 1.50-euro ($1.99) price without losing sales. Which means they are selling more beer for the same price.

And it only gets worse for the bar owners, because the taxman is also involved. Belgian authorities tax most bars based on the number of 25cl glasses they sell from a 50-liter keg. Taxes are based on the old average of 192 servings per keg, while the new glasses yield 175, says Laurent Wysen, a Liege, Belgium-based lawyer at Misson, which represents the Federation Horeca Wallonie.

It means bar owners are taxed for beers they don’t even sell.

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Fuller’s shopping for more pubs

UK brewer Fuller, Smith & Turner (Fuller’s ales) may be hunting for more acquisitions given its initial success since buying George Gales & Co. and its pub properties.

“There’s a great pressure on companies to consolidate at the moment and I suspect it will continue,” Michael Turner said. “We would be happy to expand if the right opportunities arose. For example, if a family business was finding it hard to compete we could offer a similar culture.”

[Via The Independent.]

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Czechs roll out the barrel in protest

The Czech Republic plans to send a barrel of beer to Brussels as an “extraordinary ambassador” to show its opposition to a proposed rise in EU beer taxes.

Germany has made it clear that a proposed 31% increase won’t fly, but European Union Tax Commissioner Laszlo Kovacs is pushing a proposal that would raise the tax on beer 4.5% in some countries.

“Beer is part of Czech culture, like wine is part of the culture of the French,” Foreign Minister Alexandr Vondra said in a statement the accompanied news he’d be traveling with the keg.

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Germans drinking different flavors, colors

German brewers are mixing different flavors and colors into their beers in an effort to end a 12-yeard slump in beer sales.

With beer consumption down 15% in the last dozen years brewers hope to capture the attention of younger drinkers by using flavors such as lime, which also adds a bright green color to beer. Red-colored beers are made with cherry or grenadine, and yellows with peach or yellow plum.

The are sold in clear glass bottles, putting the color on display.

[Via Foodnavigator.com]

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UK drinkers dial down the alcohol

Reuters reports on a trend toward lower alcohol beers in the U.K.

And they do mean low alcohol – as in 2% alcohol by volume. They are being compared to more commong 4% beers. How strong are those. America’s Budweiser is 5% and when Americans refer to “three-two” beer sold in Utah and Oklahoma they really mean 3.2% by weight, which is 4% by volume.

Analysts say there is a reaction against high-alcohol beers with UK drinkers demanding a “session” beer for drinking more on one night, while the lower-alcohol beers may encourage more “drinking occasions” and attract new drinkers such as women.

“Over the last three years we have seen a bit a pullback from premium beers to more sessionable beers amid a consumer reaction over excessive alcohol,” said one analyst.

The story points out that 50 years ago Britain’s traditional ale-type beers, typically drunk by heavy industry workers, used to be 3% or less.

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Adnams brews ‘keg’ beer

British brewer Adnams has produced a keg beer for the Punch Taverns chain.

Keg beer is much different than traditional cask-conditioned ale, also known as real Ale in the UK. This beer, 5% abv, is filtered and will be served on tap rather than through a traditional handpump or by gravity.

Jonathan Adnams told The Publican the launch of the beer, called Spindrift is in no way at the expense of the company’s cask ale portfolio.

“Adnams is dedicated to great cask conditioned beer. It is our bread and butter,” he said. “But this beer is for people who have made the decision not to drink cask beer. We are seeing an increasing area of the on-trade where retailers have decided that cask is a non-existent proposition. This is a great beer brewed in the Adnams way.”

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Better times for hop growers

Hops
A business story form the Mail Tribune in Oregon reports that hop producers see a turnaround for their market. That means a growers’ market instead of a buyers’ market, and higher prices.

Consider this history:

In August 1980, clusters sold for $1.15 per pound, but rose to $5 per pound when brewers began to perceive a shortage, recalled Ralph Olson, general manager of Hopunion LLC, a collection of hop growers who sell primarily to the craft brewers.

Just one year later, the price bottomed out at 30 cents. Hop growers need at least $2 per pound to cover their costs and make a slight profit.

“You need the stability, you don’t need the slot machine,” he said. “You just need the in-between. It’s very hard to accomplish, but I think right now we’re at a place where that’s going to happen.”

Prices so far this year have ranged from $1.40 to $2.40.

Credit American craft brewers for at least contributing to the turnaround.

The best thing the craft brewing industry has done for hop growers is to broaden consumers’ appetite for beer, said Michelle Palacios, administrator of the Oregon Hop Commission.

“They’ve done a really good job of educating consumers about the different types of beer, about different kinds of hops, and educating their palate,” Palacios said.

The fact that this Associated Press story has been picked up by more than 100 news outlets echoes that thought.

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Miller High Life gets gruffy

Advertising Age reports that Miller is ready to “put the gruff back into High Life beer.”

What that means is the brewing giant will abandon efforts to position Miller High Life as a more upscale, more feminine beer with hopes of reclaiming blue collar loyalty.

Still-in-development spots shown to the brewer’s distributors at regional meetings last week seem to repudiate the disowned direction, showing Miller delivery drivers forcibly removing High Life from trendy, upscale restaurants and nightclubs. The scenes strike a creative chord not seen since Miller scrapped Wieden & Kennedy’s 1950s-era manly man for the fussier, feminine push. Sales cratered with the Girl in the Moon ads and lessons apparently were learned.

“I don’t know what the hell they were thinking,” said one Southern distributor who was happy to see the new creative effort.

Notice the discussion is about changing the marketing/advertising (and that continues when the topic shifts to Miller Lite). To Miller’s credit, they think highly enough of their beer that they don’t mention the product itself could be the problem.

But isn’t their a chance people have quit buying it because of what’s inside (or not inside) the bottle?

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Local? Yes; Craft? Hmmm

That there were more than 4,000 operating breweries in the United States during the 1880s did not mean that drinkers had the variety to choose from they do today, but it does mean there was more local beer.

Today Joe Sixpack looks at the revival of Reading Beer. Legacy Brewing, a micro in Reading, will make the beer, but would you call it craft?

This won’t be a high-priced remake of a classic lager, either. The company will use lower-cost ingredients to produce kegs about the same price as Bud. Initially, it’ll be sold only on draft in taverns around Reading, but if it takes off, there are plans to bottle or can it for wider distribution.

So it won’t just be local – Legacy already does that – but it will also be cheaper and more “accessible” to those who’ve grown up on lighter beer.

Let’s see what happens.

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Miller discovers chocolate

It seems every news outlet in the Midwest has the story about Miller Brewing joining the chocolate beer crowd – like chocolate beers are something new.

Frederick Miller Classic Chocolate Lager, which includes chocolate and dark chocolate malts in the recipe, will be sold in Wisconsin, Chicago, Minneapolis, Cleveland, Indianapolis and Valparaiso/northwest Indiana. The suggested retail for the four-packs is $5.99.

Chocolate Lager is the second holiday season beer that Miller has developed in recent years. Chocolate Lager’s sales will be tiny compared to those of Miller Lite, High Life and Miller’s other mainstream brands. But it is aimed at drinkers who are turning to craft and specialty beers. “There is a lot of fragmentation going on,” company spokesman Pete Marino said. “Consumers are looking for more niche products.”

Chocolate Lager was developed a year ago, and was entered in the 2005 Great American Beer Festival under the name Temptation Bock, Marino said. Temptation Bock won a gold medal in the festival’s herb and spice beer category, and this year won the category’s bronze medal under the Chocolate Lager name.

Craft beers across the country have sold chocolate beers for years. Most take their chocolate flavor from malts but some, such as Samuel Adams Chocolate Bock, use real chocolate.

Anheuser-Busch also will sell a chocolate beer during the holiday season. Celebrate Chocolate, 8.5% abv, spends time in contact with used bourbon barrels. A-B renamed Michelob Celebrate, calling it Celebrate Vanilla, the bourbon-vanilla beer launched last year.

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Bud TV due after Super Bowl

When we wrote a couple of weeks back about Anheuser-Buisch’s push into providing program content the headline More ‘Bud TV’ seems likely was mostly meant to be flip.

But not according to today’s New York Times (registration required; free), which reports:

. . . as in Bud TV, an online entertainment network that Anheuser-Busch, the nation’s biggest brewer, is preparing to introduce the day after Super Bowl XLI is played in early February.

The network will be on a Web site that will have the bud.tv address.

This would be no small project. Just a few of the highlights:

– Bud TV would offer six channels of comedy, reality, sports and talk programming created for and by Anheuser-Busch. The tentative names for the channels include Comedy, Happy Hour and Reality.

– A-B in discussions with Joe Buck, the sportscaster, to develop a talk show.

– A seventh channel on Bud TV, tentatively named Bud Tube, will be styled after the popular Web site YouTube , giving consumers a chance to “generate their own Anheuser-Busch ads, comedic in nature,” which can be shared with other computer users.

That’s just the start.

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Lunch with Garrett Oliver

Jaye Beele of the Grand Rapids Press has lunch with Garrett Oliver, master of brewing at Brooklyn Brewery and author of “The Brewmaster’s Table.”

Beele reports they had “mild Bavarian brat weisswurst with sweet Bavarian mustard and knockwurst served with Senf (German deli mustard), reubens, German potato salad and sauerkraut,” but doesn’t mentioned what they had to drink!

He does, however, repeat much of the discussion about beer, including Oliver’s theory that the resurgence in sales of beer with flavor isn’t an anomoly, but a matter of “getting back to normal.”

“When I was growing up, we had this weird period when we had one kind of beer. It was that same period when we had supermarket white bread, American cheese slices, instant coffee crystals and canned vegetables. And that was it.

“As the food culture moved on, people decided they wanted fresh vegetables, some good olive oil, real maple syrup, real bread and real beer – people wanted a better food life.”

And beer is food.

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More ‘Bud TV’ seems likely

Advertising Age reports that Anheuser-Busch is getting into the content business.

The country’s largest brewer is launching its own in-house film and TV production company that will make humorous shorts and sitcom-type programs to be broadcast over the internet and to cellphones, according to four people familiar with the matter, and could branch into full-length films.

Like anything A-B does, don’t expect them to settle for halfway. But does that mean they’ll tap into the viral magic of the ‘net? So far, Miller’s “Man Laws” campaign seems to be attracting a lot more attention than A-B’s “Here’s to Beer.”

A-B might take a hint from Smirnoff. You’ll find its “Tea Partay” video at YouTube and of this morning had been viewed more than 800,000 views (in less than three weeks).

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Flying with alcohol

There’s been some chatter in the beer ranks about how the ban on flying with liquids, but hardly compares to the concerns of wineries.

British wine magazine Decanter reports “Liquid bomb threat: wineries and consumers get creative.”

Domaine Carneros, for example, is providing free insulated foam packaging for consumers who previously could carry a few bottles on board a plane.

The story also has nice information about the temperaturs to expect in the cargo hold.