Beer News Blog

Unfortunately beer drinkers have not been turning Japanese, at least not at the rate they were last year.  Recently, Kirin Holdings Co. reported lower-than-expected semi-annual earnings.  Compared to the same time period in 2006 Kirin Holdings, which owns Australian Lion Nathan and Philippines San Miguel Group, reported that sales in 2007 are down 12%.  Sighting an unforseen rise in the cost of raw materials and slower turns of their numerous brands over the last six months.

Kirin President Kazuyasu Kato explained, “We had a much higher-than-expected impact on our earnings from higher raw material expenses.”  The Japanese beer giant hoped efforts of its Marketing Departments through cross-promotion and increased point of sale merchandise would carry them through the increased raw material spend.  However, this strategy ultimately fell short of its target.

Kato mentioned that he did not foresee the cost of raw materials to drop down to their 2006 price range.  He has not ruled out the option to raise the cost of their products, but hopes further marketing plans will bring Kirin’s sales back toward their 2007 forecast.  To make matters worse, rival Japanese brewer Asahi took over the top spot as Japan’s number one beer.

Although not mentioned in the release, another reason why many large brewers and well-known brands have been struggling in 2007 is due to the growth of the craft beer industry.  More and more beer enthusiasts are buying outside of the traditional brands.  Although import brands have seen steady growth over the last few years, tried and true brands like Kirin and others are beginning to suffer as consumers are venturing out to newer, smaller and local beer brands.

Well, it seems Europeans will finally have American beer worth celebrating.  Not that I’m against A-B, Coors or Miller brews, they’ve just become a little stale over the years.  It’s high time American craft brewers showed the world what they’re made of.  We’ve heard for years about German, Irish and other European microbrews being so wonderful - it’s high-time Europe learned there’s more to American beer than just Budweiser.  Apparently, Europeans have heard this call and are bringing more and more American craft beer into their pubs, bars and restaurants.

Bier and Co. (Holland’s largest specialty beer importer/distributor) is largely repsonsible for the flow of American craft beer into Europe.  Earlier this year they purchased 4 containers for distribution into the Netherlands, Germany, the United Kingdom, Ireland, Greece, Italy and Switzerland. 

The Brewers Association’s Export Development Program toiled long and hard to establish a relationship with Bier and Co. that has seen thousands of gallons of craft beer imported from the U.S. and into the hands of European craft beer enthusiasts.  Early in 2006 the Brewer’s Association brought two representatives from Bier and Co. to the Great American Beer Festival to educate them about U.S. craft beer.  They were so pleased, they quickly placed a large order numerous American craft beers.

The Brewers Association has spent the last 3 years working to educate craft brewers on distribution opportunities abroad.  European, well known for it’s numerous craft beer enthusiasts, is a prime market for these often small breweries.  It’s a great way for them to grow their business’ bottom line, as well as their brand awareness.  It’s also a great way to grow international attention to amazing brews created by small breweries right here in the United States.

For more information about the Brewers Association’s Export Development Program please visit :

http://www.beertown.org/craftbrewing/edp.html

There was a summer that I lived in the San Fernando Valley, Reseda, California to be exact. It was the summer between my freshmen and sophomore year at UCLA. I was still playing football but had no place to live in Los Angeles. So, in a stroke of luck, a buddy offered me his place in the Valley to crash during the week. I had to get up each morning at 4:30 AM to get to early morning workouts, which sucked. I had to drive 30 plus miles each day to Westwood, which sucked. I barely got to do anything because I had to go to bed early and be up before the sun, which sucked. What didn’t suck was that thing of beauty sitting in the kitchen. Each day when I returned home, after workouts and summer school, was a shiny kegerator. It was set up masterfully and delivered a perfect pour every single time. My room mate and I weren’t rich (I think we were pouring Keystone light), but the fact that I always had fresh beer waiting for me was amazing.

Ever since that summer I knew I wanted to have a kegerator in my home. Unfortunately, I haven’t gotten that job that allows me the kind of income necessary to get my very own kegerator. But the dream of pouring that ice cold, delicious beer is still very much alive within me. Every time I see a kegerator I get a little jealous, luckily its usually the personal property of some big-wig that I work with, so at least I’ve been able to say “Someday, that will be me.” That was until …

This past weekend I visited the home of one of my new co-workers. Since I’ve moved to a new town meeting new people has been a bit of a challenge. Recently, my employer decided to add a new member of our marketing staff. A young man close to my age, from an area not far from where I grew up and with an affinity for the same beer as myself. Stoked to see someone else in the office younger than 35, I asked if he would like to go for a couple cold ones after work. Equally happy to make a new acquaintance, he told me we should go to his house before we hit the bars. I said OK, and after work we headed straight to his place. And there it was …

It was beautiful. Sitting near his kitchen was a big, black kegerator. He asked me if I’d like a beer. Staring at his kegerator lovingly, all I could do was shake my head. Still shocked I managed to mutter, “Where’d you get that?” Seeing the adoration in my eyes he replied, “Oh man, I’ve wasted so much cash on canned and bottled beer. I thought this was a great investment. Do you know how much money I save with this thing?” That’s when I told him about the beer blog and that, yes, I knew all about kegerators. Then he asked such a simple, yet obvious question, “So why don’t you have one, dude?” I told him I’ve moved so much over the last few years, I never really felt like anywhere was home and that once I can put some roots down I’d pick one up. He laughed and said, “OK, man. This thing right here, this will make anywhere home.”

I need a kegerator.

Craft beer is growing day by day. Many people have jumped on the craft beer movement because domestic beers have become a little boring, a little lacking in the “taste area” and the idea of making beers for millions of people turns off just about any beer enthusiast. When you pick up a Miller Genuine Draft, Coors Original or other domestic beers sometimes don’t you wish it tasted more like a Guiness, Murphy’s or Beamish? Yeah, American breweries thought so too. That’s why over the course of the last few decades they’ve snatched them all up. Most famous “Irish” beer brands now belong to the red, white and blue (of America, not the UK).

So naturally, the craft movement is not limited to just America - it’s worldwide! And guess what? The land of the stout (isn’t that the Gaelic translation for Ireland anyways?) has some great ones themselves. Today, the common tourist has as much chance of walking into a microbrewery as he/she does of walking into a pub. And you can imagine what concoctions they are coming up with, when they have the afore mentioned beers as their inspiration. But these microbreweries are not limited to darks and stouts, they are producing a full spectrum of delicious brews.

Microbreweries are on the rise in Ireland thanks to a tax-cut implemented by the Irish government in 2005. Benefiting from this financial break, pubs began opening microbreweries left and right, creating new and exciting beer and serving it to patrons that had been visiting them for years. Now the world is beginning to take notice. With tourism to Ireland on the rise, more and more people are sampling the craft beer of the Smiling Irish. So if you’re considering checking out the Blarney Stone, Glasgow or the castles of Ireland for your summer vacation - make sure to check out the amazing microbreweries!

Microbreweries to check out:

Biddy Early Brewery www.bid.ie

Porterhouse Brewing Co. www.porterhousebrewco.com

Franciscan Well Brewery www.franciscanwellbrewery.com

Kinsale Brewing Co. www.kinsalebrewingco.com

Craft beers, we love them. We enjoy them straight out of the tap. We enjoy them in a bottle. But have we ever really enjoyed them out of a can? Or better yet - Have we ever wanted to enjoy them out of the can? Personally, I would say no. Generally, I try to avoid all beer that comes in a can if at all possible. Of course there was that one summer I spent living in the Valley when I was really broke … but let’s not get into that. The fact of the matter is, no one cans craft beer. Craft beer is meant to be served fresh, and as we all know canned beer is usually not so fresh. Or at least, that’s always been the case.

Well friends, times are changing. Craft beers are gaining in popularity, and canning (if done in volume) is a cheap and easy way to distribute beer products. However, most craft breweries have never had enough volume to enter into a contract with a cannery or buy equipment for canning themselves. That’s where a Canadian firm saw a business opportunity. Cask Brewing Systems Inc. was able to produce a canning machine that was small enough and cheap enough to entice at least one microbrewery to make a very smart investment.

In 2002, Colorado-based Oskar Blues became the first American business to purchase the canning machine. Initially, they planned to can some of their popular beers for local distribution as a marketing tool to bring more people into their business. That idea quickly became very popular. So popular in fact, that their little plan to gain buzz for their brewery became the bulk of their business. During their first year of canning operations Oskar Blues sold 700 barrels of beer. A mere five years later they will sell 14,000 barrels in 2007. Canned beers now make up more than 80% of their business.

So why the popularity explosion? Plain and simple - convenience. There are many closet beer-drinking enthusiasts that don’t like frequenting micro brews and pubs. They enjoy a delicious brew, but they really enjoy a delicious brew when consumed in the comfort of their own home. By canning craft beer and selling into local markets, microbreweries can increase their reach in a very short time. Consumers are now more than ever, willing to try new beers. The craft beer market is exploding. Canned craft beer is coming, be on the look out at your local grocery and liquor stores.

Well it looks like the fun-loving, beer-drinking, scrap-yard-frequenting folks in Michigan have finally gone and done it. They’ve spoiled it for all their plain-old fun-loving, beer-drinking, non-scrap-yard-frequenting neighbors by not returning their empty kegs to their rightful owners. Instead, many Michigan draft beer lovers have been forgoing their $10 deposit and selling the kegs to scrap yards. As it turns out, the criminal activity has become so popular that state officials have had to triple the deposit fee.

Apparently the thieves were gaining anywhere from $20-$25 for each keg. This was a bit of a jump, as the cost of stainless steel soared to roughly $.25/pound during late 2005. I find it fascinating that someone would go threw all the trouble of finding a scrap yard, haggling with some scrap yard owner and only get $15 out of the deal. Seems like a lot of work for just about enough money to buy a decent case, but to each his own I guess.

Beer manufacturers spend as much as $152 to replace each one of these lost barrels, so you can imagine they were pretty steamed as this new beer “venture” became more and more rampant. Initially, they lobbied for the Michigan State Government to raise the deposit from $10 to $90. Feeling that this hike might be a little excessive, cooler heads prevailed and the new $30 deposit fee was set in place.

My questions is - Whatever happened to bringing a keg to a party, getting everyone drunk, waiting for people to pass out and then taking their cars to the scrap yard for cash? Come on Michigan, you gotta earn that scrap yard living!

When I take business trips I try to find a nice restaurant that my employer can pay for. I like to relax in a new and different place with exotic new foods. On top of all that, I like to enjoy a tasty brew or two - on the companies dime of course. I would say this type of behavior is par for the course for most traveling businessmen. But there are some beer connoisseurs out there that like to take things to the next level. Yes, there are men and women who actually seek out a local brewery whenever they are in a new city. To these men and women I say (in the vein of the famous Guinness duo), “Brilliant.”

But how do you find these breweries that offer fresh, delicious beer the likes of which our palates have never enjoyed? Well, many cities offer “beer trail” Web sites, not dissimilar from “wine trail” Web sites. But can you be sure that every brewery will be attached to these sites? Or can you even be sure that the city you are visiting even has such a site? The answer of course is “No”. So again, how do you find these breweries?

That’s where the Beer Bible, or more accurately The Essential Reference of Domestic Brewers and Their Bottled Brands (DBBB), comes in. This baby has 570 pages of reviews, maps and guides to this country’s breweries. Traveling to Chicago? Check out the local breweries. Off to Sarasota, Florida for the week? Why not try some of Florida’s tastiest craft brews. The book has indexed more than 3,000 brands and rates them according to color, bitterness and other criteria. For a measly 60 bucks, I say its worth it.

Check it out at www.beerbible.com

Sam Adams, known for being the beer drinker’s domestic go-to, has recently launched an ad campaign for their black lager. It’s in the typical vein of Sam Adams commercials, a lot of chit chat from the brewery workers and of course founder Jim Koch. In his usual “I’m not a beer guy” disguise and manner of speaking he describes the art of crafting Samuel Adams Black Lager. And you know what? We think its pretty darn cool.

So often the norm of beer advertising is a bunch of shirtless dudes running around hitting volleyballs at hot, un-assuming young women (a part I’m not totally mad at), or a tongue-in-cheek joke about a good wingman or magic beer-fridge, etc. I am actually impressed with the latest ad campaign from Samuel Adams and their new Black Lager. This lead me to their Web site where they have 15 videos that give you an idea of who Samuel Adams is as a brand and the techniques they employ for making beer.

Having never actually consumed a black lager, I was intrigued by the advertisement (as I type I’m enjoying one). Although certainly not a stout, which happens to be my end-all for a relaxing weekend, Samuel Adams Black Lager has a bold flavor - the kind that lets you know you are drinking a “real” beer. It’s not thick like a stout, but it does have a similar flavor. It’s a pretty awesome beer, where most stouts leave you feeling a little full, Black Lager doesn’t fill you up but still delivers great taste. I highly recommend it for anyone scouring the beer section at their grocery store, on the hunt for something new.

Check out Samuel Adams videos here.

After a disappointing April that saw beer sales plummet to some of the lowest monthly sales in the company’s recent history, A-B’s sales have rebounded in May. The King of Beers has come out publicly to say that its quarterly earning are up 1%, a good sign for their year-end growth projections that had many industry insiders stunned at A-B’s confidence. Anheuser-Busch stated at the beginning of the fiscal year that they hoped to experience somewhere between 7%-10% growth in 2007.

April’s dip in sales may have been a surprise to some, but not to others. April was one of the slowest months across the board for mass retailers. Bad weather in 2007 has been plaguing numerous businesses in and outside of the beer industry. With people couped up in their homes, hiding out from the wet weather beer sales have been slow. Bar and other on-premise facilities have also seen a dip in sales.

With better weather in May people have been getting back to normal. With the warm weather trend throughout the United States and Memorial Day Weekend (the official start to barbecue season) beer sales should be getting back to normal. A-B should expect to see a huge spike in sales considering the fact that many people have been waiting for their chance to spend the day at the park, queing up hamburgers and hot dogs and enjoying their favorite brews.

April 7th may not mean much to you, perhaps its just another day in April. But if you are a member of the beer drinking community, you should know this date quite well. April 7th, 1933 was the day that prohibition came to an end, the day beer drinkers were free to consume their favorite beverage again. It was a day where all rejoiced, after having spent 13 years stomaching gin fermented in bath tubs and beer brewed in dark basements.

On January 16th, 1920 the United States Government ratified the 18th Amendment to the Constitution by a vote of 140 to 64, and the era of prohibition was upon us. For the next 13 years police departments throughout the country were forced to shut down any and alcohol distribution, sales and consumption. Suffice to say this was a very dark time in American history. But then came President Roosevelt, and on December 5th, 1933 the 21st Amendment to the Constitution was ratified and the sales of 3.2 beer and light wines was legal again. On March 23rd of that year President Roosevelt signed the it into law and on April 7th beer was rolling again. This historic date was commemorated when the first “legal” beer in 13 years was delivered to the White House gates.

To celebrate the end of prohibition and the holiday of April 7th, the Brewers Association’s Brew Year’s Eve is once again almost at hand. You can celebrate this holiday at your local brewery. This Saturday, April 7th, hundreds of breweries throughout the country will be promoting the holiday with drink specials, unique brews and other fun and exciting activities. By visiting the Web site www.brewyearseve.com you can find participating breweries in your area. Just use the simple drop down to find out which breweries will be celebrating in your area. Brew Year’s Eve is a great way to get to know your local brewery and spend time with beer enthusiasts just like you!