US craft beer exports up 72%

US Craft Beer Exports

The American craft beer industry set a new record for exports in 2012. Based on results from a recently completed industry survey, the Brewers Association reports craft beer export volume increased by 72% compared to 2011, with a value estimated at $49.1 million.

Canada remained the industry’s largest export market, with shipments increasing 140% by volume. Significant gains have been made in Ontario and British Columbia, and American craft beers are now gaining distribution in other provinces.

Sweden and the United Kingdom remained the next two largest markets. Though total exports decreased in both countries compared to 2011, the decline was offset by increased shipments to other European markets. In total, Western Europe accounted for 56,204 barrels valued at $14.6 million in 2012, a 5.6 percent increase over 2011.

“The BA is very pleased with the continued growth in exports of American craft beer to markets around the world. Consumers continue to view American craft brewers as leaders in innovation and among the standard bearers for quality. Maintaining that perception is a priority for the craft brewing community,” said Bob Pease, Brewers Association chief operating officer.

The BA supports exports through its Export Development Program which was initiated in 2004 with funds from the United States Department of Agriculture Market Access Program (USDA MAP). The Export Development Program generates exposure for American craft beer through trade shows, festivals, seminars, media outreach and competitions, among other activities.

New Yorker 2013 Beerdrinker of the Year

Warren Monteiro, Beerdrinker of the Year, with judges at Wynkoop Brewing

Warren Monteiro, a New York City freelance writer, beer traveler, homebrewer and beer columnist, was chosen as the 2013 Beerdrinker of the Year at Wynkoop Brewing Company in Denver.

“This year was very difficult to judge,” said Cody Christman, the 2009 Beerdrinker of the Year and a judge at Saturday’s finals. “All three finalists were superb and deserved to be on the national beer stage. But Warren won the competition with his blend of wit, knowledge, and a deep passion for all things related to beer.”

Kevin Cox of Muncie, Ind., and Jen Schwertman, a New York City bartender, were the other finalists.

Monteiro has sampled beers throughout the United States, Europe, Central American, India, Sri Lanka and other nations. In 2012 he visited breweries and beer festivals in England, Belgium, the Netherlands and the US. He samples an average of 350 beers each year.

For seven years, Monteiro has written his “Beer Sensei” column for the popular Ale Street News. His home beer bar is the Blind Tiger Ale House in New York City.

In his 2013 Beerdrinker of the Year resume, he detailed his philosophy of beer drinking: “It’s not a habit, it’s a lifestyle. This is why I constantly travel – to get a taste of a new brew or one I’ve been missing, and to find a way to share it whenever possible. I consider creative beer drinking to be an essential part of the tapestry of art and fellowship contributing to a full life.”

For winning the 2013 title, Monteiro wins free beer for life at Wynkoop Brewing, a $250 bar tab at the Blind Tiger, and clothing proclaiming him the 2013 Beerdrinker of the Year.

His name will be engraved on Wynkoop’s famed Beerdrinker of the Year trophy. For next year’s Beerdrinker of the Year contest, he’ll brew batch of beer of his own design at Wynkoop with head brewer Andy Brown.

Anchor to build second brewery, quadruple capacity

The San Francisco Giants and Anchor Brewing have announced that Anchor will build a second facility on the San Francisco waterfront.

Anchor Brewing will occupy what is now Pier 48 with production and distribution facilities (artist rendering), a restaurant, museum and other public attractions. The 212,000-square-foot space in the Giants’ Mission Rock development will not replace Anchor’s existing plant on Potrero Hill, but add capacity. The company’s capacity would nearly quadruple from 180,000 to 680,000 barrels a year.

“This is big news for us. We can now further expand our domestic market (Anchor is sold in every state) and open up new international markets,” CEO Keith Greggor told the San Francisco Chronicle. “It’s also a huge commitment to San Francisco.”

The planned development still must get approval from a variety of agencies. If everything proceeds on schedule, construction could begin in late 2014 and brewing in 2016.

Samuel Adams, Deschutes shine in UK judging

Samuel Adams beers captured nine medals at the International Brewing Awards 2013 in England.

The bi-annual competition attracted more than 1,000 entries from 45 countries. Forty judges, all professional brewers, assessed the beers over the course of three days. The medals winners in each category were announced at the National Brewery Center in Burton upon Trent, where the judging was held. The 11 overall championship winners will be unveiled April 24 in an awards luncheon at London Guildhall.

Beers are judged in several categories and sub-categories, so may be classified on how they are packaged, their color, their alcohol content, and by other means.

Thus Samuel Adams Cream Stout won silver in one category and gold in another. The other Samuel Adams gold medal beers were Cinder Block, White Lantern, Black & Brew Coffee Stout, and Latitude 48 IPA. Double Agent IPL and Third Voyage both won silvers, while Utopias 2012 took a bronze.

Oregon’s Deschutes Brewery won four medals, Sierra Nevada Brewing took three, BridgePort Brewing two, and Alaskan Brewing one for its highly decorated Alaskan Smoked Porter.

Deschutes Mirror Pond Pale Ale, Inversion IPA and Obsidian Stout all won gold, and Red Chair NWPA took a bronze.

Sierra Nevada Pale Ale won a gold and a bronze, while Narwhal Imperial Stout took a gold. BridgePort IPA and Ebenezer both won silver.

The complete list of the winners can be downloaded as a pdf.

Small brewer federal excise tax bill reintroduced

The Brewers Association reports that H.R. 494, the Small Brewer Reinvestment and Expanding Workforce Act (Small BREW Act) has been reintroduced in the House of Representatives. The bipartisan legislation, which was reintroduced by Representatives Jim Gerlach (R-Pa.) and Richard E. Neal (D-Mass.), seeks to recalibrate the federal beer excise tax that small brewers pay on every barrel of beer they produce.

Under current federal law, brewers making less than 2 million barrels annually pay $7 per barrel on the first 60,000 barrels they brew, and $18 per barrel on every barrel thereafter. The Small BREW Act would create a new rate structure that reflects the evolution of the craft brewing industry. The rate for the smallest brewers and brewpubs would be $3.50 on the first 60,000 barrels. For production between 60,001 and 2 million barrels the rate would be $16.00 per barrel. Any brewer that exceeds 2 million barrels (about 1 percent of the U.S. beer market) would begin paying the full $18 rate. Breweries with an annual production of 6 million barrels or less would qualify for these tax rates.

“Small brewers are small business owners and this bipartisan legislation would allow them to remain competitive, protect existing jobs and create new employment opportunities in communities throughout Pennsylvania and the country,” said Congressman Jim Gerlach, co-chairman of the House Small Brewers Caucus.

“There are few industries with more size disparity than the American beer business. There are 2,500 small breweries who together account for only six percent of the U.S. beer business,” said Rob Martin, president, Ipswich Ale Brewery and Massachusetts Brewers Guild. “Massachusetts Congressman Richard Neal understands the struggles craft brewers face because of this, and he has championed our effort to help level the playing field a little by supporting an equitable federal excise tax bill. He is keenly aware that craft brewers are looking to grow their small businesses and will create thousands of good jobs across the country if this legislation passes. As president of the Massachusetts Brewers Guild, I know I speak for all small brewers when I applaud Congressman Neal’s effort.”

The BA calculates adjusting the tax rate would provide small brewers with an additional $60 million per year that would be used to support significant long-term investments in tanks and other equipment and create jobs by growing their businesses on a regional or national scale. Congress has not recalibrated the excise tax on small brewers since 1976. At that time, there were about 30 small brewers. Today, there are over 2,000.

“America’s small brewers are part of a vibrant, growing industry, and really are Main Street manufacturers,” added Bob Pease, chief operating officer of the Brewers Association. “The Small BREW Act will help America’s small brewers invest in and grow their businesses—an important part of economic reinvigoration. We look forward to working with the new Congress on the passage of this legislation, which will have a positive impact on agricultural, manufacturing, hospitality and distribution jobs for the future.”

Brewers Association honors Congressmen Gerlach, Neal

The Brewers Association has presented two United States Congressmen with the organization’s Legislator of the Year Award.

Reps. Jim Gerlach (R-Pa.) and Richard E. Neal (D-Mass.) were recognized for their stewardship of the Small Brewer Reinvestment and Expanding Workforce Act (Small BREW Act). The awards were presented at a ceremony in Washington, D.C., by Bob Pease, chief operating officer of the Brewers Association; Jim Koch, co-founder and chairman of Boston Beer Company; and Bill Covaleski, founder and brewmaster of Victory Brewing Company and president of the Brewers of Pennsylvania.

“The efforts of Congressmen Gerlach and Neal reflect their appreciation for America’s small brewers and the significant economic contributions that these men and women bring to the national economy,” said Pease. “We recognize both of these leaders for their commitment to creating a level playing field for small and independent brewers in their home states and across the country.”

The Small BREW Act, introduced by Gerlach and Neal during the 112th Congress and expected to be reintroduced this month, aims to recalibrate the federal excise tax rate structure to further foster the growth of America’s craft brewing community. Currently, brewers producing less than 2 million barrels of beer per year pay $7 per barrel on the first 60,000 barrels they brew, and $18 per barrel on every barrel thereafter. If the Small BREW Act is adopted, the rate for the smallest brewers and brewpubs would be $3.50 on the first 60,000 barrels. For production between 60,001 and 2 million barrels the rate would be $16.00 per barrel. Any brewer that exceeds 2 million barrels would begin paying the full $18 rate. Breweries with an annual production of 6 million barrels or less would qualify for these tax rates.

“Small brewers provide a significant economic spark, creating tens of thousands of jobs and generating tens of billions of dollars in economic activity each year in Pennsylvania and across America,” said Congressman Gerlach, co-chairman of the House Small Brewers Caucus. “These independent and innovative small business owners often work just as hard at improving their communities as they do perfecting their world-class products. It is a tremendous honor to be recognized by the Brewers Association for my bipartisan work in Congress to help small brewers remain competitive and continue building upon the success of America’s craft-brewing revolution.”

“I am honored that the Brewers Association has chosen me as one of their Legislators of the Year,” said Congressman Neal. “As someone who represents many small brewers in Massachusetts, this award has special meaning for me. Craft breweries are locally owned, generate economic development and create good jobs. They also make distinctive products for passionate consumers. As a supporter of the industry, I have introduced bipartisan legislation that would give small brewers a substantial tax break. My plan would recalibrate the beer excise tax for America’s craft brewers, allowing them to reinvest in their businesses. With the help of Brewers Association, I believe this initiative can be approved by the House of Representatives during this session of Congress.”

OBF adds day, switches to glassware

The Oregon Brewers Festival has added a fifth day to its celebration and for the first time drinkers will use taste beer from glassware rather than a plastic mug. The festival is scheduled for July 24-28 at Tom McCall Waterfront Park in downtown Portland. Hours are noon to 9 p.m. Wednesday through Saturday and noon to 7 p.m. Sunday.

“The festival continues to grow in popularity every year, especially with tourists,” said festival owner and founder Art Larrance. “Due to space constraints, we can’t expand our footprint, so we decided to instead add a day to accommodate more beer lovers. Portland’s role as the ‘Cradle of Craft Beer’ had led our city to be one of the premier beer tourism destinations in the United States, and the Oregon Brewers Festival continues to support that movement.”

The festival expanded from a three-day to a four-day event in 2005. That turned out to be a huge success, and ever since, festival purists have declared Thursday to be the best day to attend due to shorter lines and a full beer selection. Festival organizers are now hoping Wednesday will become the new Thursday.

Another big change to this year’s event is the introduction of a tasting glass. In an effort to improve the tasting experience for the guest and to be more environmentally responsible, the Oregon Brewers Festival will now sell a tasting glass in lieu of the traditional plastic mug. Admission into the festival grounds is free. In order to consume beer, purchase of a 2013 souvenir 12-ounce tasting glass is required and costs $7. Beer is purchased with wooden tokens, which cost $1 apiece. Patrons pay four tokens for a full glass of beer, or one token for a taste. There are no advance tickets sold to the festival; all purchases are made on-site.

Super Bowl Clydesdale gets a name: Hope

The baby Clydesdale featured in a Budweiser commercial shown during Super Bowl XLVII now has a name: Hope. Anheuser-Busch InBev also announced another foal would be named in honor of St. Louis baseball icon, Stan Musial.

Last week Budweiser asked its Facebook and Twitter followers to send along naming suggestions. More than 60,000 tweets, Facebook comments, calls and direct messages followed. “Hope” was one of the more popular female names.

“We were overwhelmed with the response we got,” said Lori Shambro, brand director for Budweiser.

Other popular names submitted included Landslide (after the Fleetwood Mac song in the commercial), Buddy, Star, Raven, Spirit and Stevie.

“Thirty-six hours before Hope was born, on Jan. 14, we welcomed our first-born Clydesdale of the year, a boy,” John Soto, supervisor of Warm Springs Ranch. “We have a special name for him, too.”

Budweiser has announced that the first male Budweiser Clydesdale born in 2013 will be named after the recently deceased baseball Hall of Famer Stan Musial. Many of the suggestions for the female foal, including “Six,” had a Musial connection.

Government blocks AB InBev deal for Modelo

The U.S. sued to block Anheuser-Busch InBev’s proposed $20.1 billion purchase of the half of Grupo Modelo brands it doesn’t already own, stating that the deal would violate antitrust law.

Shares of both companies plunged after the Justice Department filed a complaint in federal court in Washington. The DOJ said the proposed purchased would eliminate the “substantial head-to-head competition” that currently exists between AB InBev and Modelo.

Modelo owns the Corona brand, and Budweiser and Corona are among the most dominant beer brands in the country. Bud Light is the best-selling U.S. beer, while Corona Extra is the No. 1 selling import.

“If ABI fully owned and controlled Modelo, ABI would be able to increase beer prices to American consumers,” Bill Baer, the head of department’s antitrust division, said in a statement. “This lawsuit seeks to prevent ABI from eliminating Modelo as an important competitive force in the beer industry.”

The Justice Department’s action is “inconsistent with the law, the facts and the reality of the marketplace,” according to an ABI statement. “We remain confident in our position, and we intend to vigorously contest the DOJ’s action in federal court.”

Kim Jordan to deliver 2013 CBC keynote

New Belgium Brewing co-founder and CEO Kim Jordan has agreed to “return to the scene of the crime.”

She will deliver the keynote address at the Brewers Association’s 2013 Craft Brewers Conference. The industry’s largest gathering — bringing together some 6,000 brewing professionals — will be held in Washington, D.C. from March 26-29.

Jordan also gave the keynote in 2003, when she called for craft brewers to aspire to reach 10% of U.S. beer sales. In the previous year, craft sales had grown only 1%. In the years that followed the gains were 5%, 8%, 13%, 12%, 6%, 7%, 12% and 13%. In 2011, the latest full year for which the BA has published data, craft brewing sales share was at 9.1% by dollars and 5.7% by volume, increasing more than half a point per year since 2003.

“The beer industry has changed significantly over the course of the last several years. Relationships among small brewers, large brewers, distributors, retailers and beer drinkers continue to evolve,” said BA director Paul Gatza. “Kim is a visionary and true leader in the beer community. Her insight, enthusiasm and vigor will be a welcomed inspiration as small and independent brewers gather together for a discussion on how to navigate the ever-evolving and thriving industry. We are pleased to have her back to the CBC stage.”

More about the conference.

Alaskan Brewing adds another energy saving tool

Alaskan Brewing has become the first brewery in the world to use its spent grain as the fuel source to power the steam boiler it uses in making beer, and reduced the company’s fuel oil consumption in brewhouse operations by 60 to 70 percent.

“We have the unique honor of brewing craft beer in this stunning and remote place,” Alaskan Brewing co-founder Geoff Larson said for a press release. “But in order to grow as a small business here in Alaska and continue having a positive effect on our community, we have to take special efforts to look beyond the traditional to more innovative ways of brewing. Reducing our energy use makes good business sense, and good sense for this beautiful place where we live and play.”

The brewery began the spent grain energy process in 1995 with the installation of a grain dryer. The equipment dried the wet, protein-rich spent grain in preparation for shipment to the lower 48 for use as cattle feed, due to the absence of farms or ranches in Southeast Alaska. Alaskan designed the grain dryer to use up to 50 percent of the grain as a supplemental fuel source to heat the dryer itself. This reduced the oil required in the drying process, and provided experience in burning spent grain that would later prove useful in designing the steam boiler.

In 2008, Alaskan became the first craft brewery in the nation to install an energy saving piece of brewing equipment called a mash filter press. The mash filter press, in addition to providing greater energy, water, and materials efficiencies, produces a lower-moisture-content spent grain than does the more traditional lautering process. This form of spent grain better lends itself to drying and for use as fuel for the brewery’s grain dryer and, ultimately, the new spent grain steam boiler system.

Over the latter months of 2012, Alaskan completed the final stage of the process with the installation and commissioning of the $1.8 million, custom-constructed spent grain steam boiler.

Alaskan expects that the new boiler will eliminate the brewery’s use of fuel oil in the grain drying process and displace more than half of the fuel needed to create process steam in the brewhouse. This translates to an estimated reduction in fuel oil use in brewhouse operations by more than half. With moderate growth assumptions, Alaskan expects to save nearly 1.5 million gallons of oil over the next ten years.

A-B InBev loses bid for lone right to Bud name in UK

The U.K. Supreme Court has ruled against Anheuser-Busch InBev’s request to stop Czech brewery Budvar from selling beer under the Budweiser name. Both brewing companies will continue to use the name in the UK.

While Anheuser-Busch was first to seek to trademark the Budweiser name in Britain, the Czech company entered the British market one year ahead of the then-St. Louis-based brewer, according to Reuters.

Tuesday’s ruling comes more than two years after a European Union ruling that quashed AB-InBev’s attempt to register the Budweiser name as its trademark.

According to Budvar, there there are about 40 related trademark dispute cases pending in different jurisdictions and some 70 procedural issues up for consideration around the world.

AB InBev said it was disappointed by the UK Supreme Court ruling but that it did not affect its Budweiser trademark in the country. It said Budweiser sales in the UK rose 40% between 2009 and 2011.

“This attempt to change the final decision of the court proves the long-term strong interest by (AB InBev) to gain exclusive rights for the Budweiser brand at any cost,” Budvar chief executive Jiri Bocek said in a statement.

New Belgium brewing now 100% employee owned

New Belgium Brewing announced the company’s Employee Stock Ownership Program (ESOP) has purchased the balance of company shares, making it 100% employee-owned. New Belgium has been a partial ESOP since 2000 with a controlling interest held by co-founder Kim Jordan and her family.

“There are few times in life where you get to make choices that will have multi-generational impact – this is one of those times. We have an opportunity to write the next chapter of this incredible story and we’re really excited about that,” Jordan said. “We have always had a high involvement ownership culture and this allows us to take that to the next logical level. It will provide an elegant succession framework that keeps the executive team in tact ensuring our vision stays true going forward.”

Jordan plans to remain CEO for the long-term and the executive team at New Belgium will continue in its current form.

The Fort Collins brewer is currently building a second facility in Asheville, North Carolina that will begin beer production in 2015. The transition to 100% ownership will enable New Belgium to include their future co-workers in Asheville.

The deal was completed on the 28th of December with a companywide announcement made during New Belgium’s annual winter retreat this week. All 456 employee-owners were present for the celebration. Prior to this deal, New Belgium co-workers held 41% of the company’s shares.

Bud Black Crown to get Super treatment

Anheuser-Busch InBev will feature its new Budweiser Black Crown in advertising during Super Bowl. The new beer is scheduled to be on sale nationwide by Jan. 21. Last year, A-B introduced Bud Light Platinum during the Super Bowl.

“The Super Bowl really is the ideal venue to launch something new,” Budweiser Vice President Rob McCarthy was quoted in USA Today.

Black Crown’s recipe was picked from among six limited-edition beers that were created by Budweiser brewmasters earlier this year. It was called 91406 in a Project 12 variety pack released in October. It is stronger than Budweiser, with 6% alcohol by volume compared to 5%, and slightly more bitter. McCarthy described it as “a little bit darker and a little bit more flavorful” than the traditional Budweiser lager.

A-B hopes to cater to variety-seeking Millennials with the new beer. “This brand will appeal to a broad range of beer drinkers, but especially to 21-to-34-year-old, trend-setting-type consumers,” McCarthy said.

Brooklyn, Carnegie to open Stockholm brewery

Brooklyn Brewery, D. Carnegie & Co., and Carlsberg Sweden have announced the launch of a new brewery and restaurant in central Stockholm.

According to a press release, the Brooklyn-New Carnegie Brewery will be built in the Luma Factory buildings in Hammarby Sjöstad, a residential and commercial complex that fronts on Stockholm harbor. The waterfront brewery will have brewing capacity for 8,000 barrels (almost 250,000 gallons), and restaurant capacity for 100 visitors inside and another 150 visitors outside.

The Brooklyn Brewery will manage and operate the project through a wholly owned Swedish subsidiary, and Brooklyn brewmaster Garrett Oliver and his team will brew special Brooklyn beers and develop new beers for the New Carnegie brand. “We love Stockholm, and the whole Brooklyn brewing team is looking forward to their stints at Brooklyn-New Carnegie. We’re going to have a lot of fun brewing and creating beers with our Swedish team,” said Oliver.

In 2011, the Brooklyn Brewery collaborated with Carnegie to produce a bourbon barrel-aged version of Carnegie Porter to celebrate the 175th anniversary of the Carnegie Brewery.

“We distributed Carnegie Porter years ago in New York,” said Brooklyn Chief Operating Officer Eric Ottaway. “We have great respect for the tradition that Carnegie represents, and we look forward to developing the portfolio of beers.”

Joakim Losin, CEO of New Carnegie, said the brewery and restaurant would be a meeting place for Sweden’s craft brewers and their followers, and a school for Swedish beer lovers. The new brewery/restaurant will be open for tours as well as lunch and dinner.

Carnegie is the oldest trademark in Sweden. The company was purchased by Carlsberg when it bought the Pripps Brewery in 2001, and Carlsberg Sweden was established.

Brooklyn Brewery brands have been imported by Carlsberg Sweden since 2006. Sweden is the largest export market for the Brooklyn Brewery.

Brooklyn ships many of its bottled beers to Sweden, including its flagship Brooklyn Lager and its 750-ml bottle-conditioned beers like Brooklyn Local 1 and Brooklyn Sorachi Ace. It also ships tankers of beer to Sweden which are kegged in Falkenberg. Brooklyn Lager and Brooklyn East India Pale Ale are available on draft all over Sweden.

Brooklyn Brewery is America’s leading craft beer exporter.