It seems we’re not the only ones that dislike big beer using the term “craft beer” to push brands like Goose Island and Blue Moon.  The Brewers Association has also taken issue with moniker.

The Brewers Association, the not-for-profit trade association dedicated to small and independent American craft brewers, issued the following statement regarding the increase in production and promotion of craft-like beers by large, non-craft breweries:

 

An American craft brewer is defined as small and independent. Their annual production is 6 million barrels of beer or less and no more than 25 percent of the craft brewery is owned or controlled by an alcoholic beverage industry member who is not themselves a craft brewer.

 

The community of small and independent craft brewers has grown as beer enthusiasts embrace new, diverse beers brewed by their neighbors and friends who are invested in their local communities. Beer drinkers are voting with their palates and dollars to support these entrepreneurs and their small and independent businesses.

 

In 2011, small and independent craft brewers saw their industry grow 13 percent by volume; in the first half of 2012, volume grew by an additional 12 percent. Meanwhile, the overall beer industry was down 1.3 percent by volume and domestic non-craft was down 5 million barrels in 2011.

 

Witnessing both the tremendous success and growth of craft brewers and the fact that many beer lovers are turning away from mass-produced light lagers, the large brewers have been seeking entry into the craft beer marketplace. Many started producing their own craft-imitating beers, while some purchased (or are attempting to purchase) large or full stakes in small and independent breweries.

 

While this is certainly a nod to the innovation and ingenuity of today’s small and independent brewers, it’s important to remember that if a large brewer has a controlling share of a smaller producing brewery, the brewer is, by definition, not craft.

 

However, many non-standard, non-light “crafty” beers found in the marketplace today are not labeled as products of large breweries. So when someone is drinking a Blue Moon Belgian Wheat Beer, they often believe that it’s from a craft brewer, since there is no clear indication that it’s made by SABMiller. The same goes for Shock Top, a brand that is 100 percent owned by Anheuser-Bush InBev, and several others that are owned by a multinational brewing and beverage company.

 

The large, multinational brewers appear to be deliberately attempting to blur the lines between their crafty, craft-like beers and true craft beers from today’s small and independent brewers. We call for transparency in brand ownership and for information to be clearly presented in a way that allows beer drinkers to make an informed choice about who brewed the beer they are drinking.

 

And for those passionate beer lovers out there, we ask that you take the time to familiarize yourself with who is brewing the beer you are drinking. Is it a product of a small and independent brewer? Or is it from a crafty large brewer, seeking to capitalize on the mounting success of small and independent craft brewers?

Source: http://www.brewersassociation.org/pages/media/press-releases/show?title=craft-vs-crafty-a-statement-from-the-brewers-association

Anheuser-Busch getting bigger?  It seems that’s what they want to do.

Editor’s note: Steve Hindy is co-founder, president and chairman of The Brooklyn Brewery. Brooklyn Brewery started in 1988 and is among America’s top 15 craft breweries.

 

The proposed purchase of Mexico’s Modelo beer brands by the world’s largest brewing conglomerate, Anheuser-Busch-InBev, is causing deep concern among America’s craft brewers.

 

Anheuser-Busch already controls about 47% of the U.S. beer market. Adding Modelo’s Corona beer and other brands would give it another 6%. MillerCoors, the other big player in the United States,controls about 30%.

 

If the Modelo deal goes through, a duopoly would control more than 80% of the U.S. beer market.

 

The concentration of market share in two global companies means they have tremendous influence over distributors and retailers. This gives an advantage to big brewer beer brands over small brands created by America’s independent craft brewers. Ultimately, with limited choices, the beer consumer loses.

 

The Department of Justice is determining whether the sale would violate antitrust laws.

 

As I understand it, Anheuser-Busch claims it would have no say in the marketing or sale of Modelo brands in the United States. Those functions would be left to Crown Imports, the Chicago-based marketing and sales company that is owned by Constellation Brands, the world’s largest wine company.

 

In 10 years, Anheuser-Busch would have the right to buy Crown.

 

It’s hard to understand how a brewery could own another brewery and not have some control over sales and marketing. Doesn’t the owner control the price of beer sold to the importer/marketer? Doesn’t the owner contribute to the sales and marketing programs and costs of the importer/marketer? Doesn’t the owner have some say over the hiring of personnel for the brewery it owns?

 

And isn’t the owner responsible to its shareholders to ensure the brewery is maximizing shareholder value?

 

America’s small brewers have been on a roll in the past decade, claiming more than 6% of the U.S. beer market since the craft brewing revolution began in the early ’80s. That 6% is divided by 2,400 small companies.

 

The duopoly already has tremendous influence over beer distribution in America.

 

In most markets, brewers have two choices, a so-called Blue and Silver distributor, who sells MillerCoors brands, or a Red distributor, who sells Anheuser-Busch brands. (The color codes describe the primary colors of the brewers’ labels.)

 

Through so-called “equity contracts,” the large brewers prescribe how much money distributors spend to sell and market their brands. In some cases, they have the right to approve or disapprove the manager of the distribution company. In some cases, they have the right to approve the succession plan of the distributor. In some cases, they have the right to approve the sale of a distributor.

 

Craft brewers constantly struggle to get the attention of these distributors.

 

In the mid-1990s, the CEO of Anheuser-Busch, August Busch III, declared that he wanted “100% share of mind” from his wholesalers. Some Red distributors ejected non-Anheuser-Busch brands from their warehouses. Distributors who gave his 100% were given more favorable terms for their purchase of beer. August III is gone, but the new owners of Anheuser-Busch have called for distributors to get “aligned” with the brands they control.

 

Large brewers also have control over some retail sales of beer. Many chain supermarkets and stores appoint “category captains” to determine which beers are sold in refrigerated aisles and which beers go on the warm shelves. If the category captain is a Blue and Silver distributor, MillerCoors will play a key role in choosing which brands get sold where. If it is a Red distributor, Anheuser-Busch makes the calls.

 

This results in a tug-of-war between large brewers trying to get maximum placement of their brands and small brewers trying to get a spot. Obviously, a company that controls 53% of the U.S. beer market is going to have a better shot at shelf space than my company.

 

Both members of the duopoly have wholly owned brands like Shock Top and Goose Island that are presented as craft brands. They own large shares of some other breweries like Red Hook and Kona. There is concern that these brands would get greater attention from wholesalers than independent craft brands, like mine. This can greatly limit the beer consumer’s choices.

 

In sports venues like arenas and stadiums, the large brewers monopolize space. They typically have advertising contracts with the venues, and this results in their having a dominant share of the beer taps and other beer placements. If you want a Brooklyn Lager at Yankee Stadium or CitiField or the new Barclay’s Center in Brooklyn, you’d better be prepared to spend some time searching. Brooklyn Brewery is in those venues, but in a very limited way.

 

Those are my concerns, and the concerns of other craft brewers. Obviously, I am not an attorney. I know little about antitrust law. I recently read a couple of books about the oil industry and learned that antitrust rulings in that industry have drawn a line for defining a company with too much market share.

 

Given this, I am baffled by the state of the U.S. brewing industry. How did we ever get to a situation where two companies control 80%? And how can we allow them to control more?

Source: http://www.cnn.com/

The Top 25 Beers of 2012
photo: winemag.com

Wine Enthusiast Magazine has put together its top 25 beer list for 2012, and while all lists of this nature are subjective, there are definitely a few good ones in the mix.

A quick breakdown of what was included in the judging:

Beer Review Breakdown by Country:
Belgium – 6
England – 5
Germany – 5
New Zealand – 1
Norway – 1
Portugal – 2
Scotland – 1
Spain – 1
United States – 95

U.S. Review Breakdown by State:
Alaska – 2
California – 22
Colorado – 11
Delaware – 2
Massachusetts – 11
Maryland – 2
Maine – 2
Michigan – 4
Missouri – 2
New Hampshire – 2
New York – 10
Oregon – 10
Pennsylvania – 2
Texas – 2
Utah – 8
Virginia – 2
Wisconsin – 1

The Top 25 List

1. The Bruery Saison Rue Belgian-Style Ale (Saison/Farmhouse Ale; The Bruery, CA)
2. Traquair House Ale (Scotch Ale; Traquair House Brewery, Scotland)
3. Sam Adams Utopias 10th Anniversary (American Strong Ale; The Boston Beer Co., MA).
4. Left Hand Polestar Pilsner (German-style Pilsener; Left Hand Brewing Co., CO).
5. Deschutes Hop Trip Pale Ale (American Pale Ale; Deschutes Brewery, OR)
6. Uinta Dubhe Imperial Black IPA (American-style Black Ale; Uinta Brewing Co., UT)
7. Dogfish Head Noble Rot (Fruit Beer/ Saison Hybrid; Dogfish Head Craft Brewery, DE)
8. Weihenstephaner Vitus Weizenbock (Weizenbock; Brauerei Weihenstephan, Germany)
9. Founders Bolt Cutter Barley Wine Ale (American Barleywine; Founders Brewing Co., MI)
10. Odell The Meddler Oud Bruin Ale (AmericanWild Ale; Odell Brewing Co., CO)
11. Stone Ruintation Tenth Anniversary IPA (American Double/Imperial IPA; Stone Brewing Co., CA)
12. Ayinger Celebrator Doppelbock (Doppelbock; Brauerei Aying, Germany)
13. Avery Annual Barrel Series Uncle Jacob’sStout (American Double/ImperialStout; Avery Brewing Co, CO)
14. Port City Optimal Wit (Witbier; Port City Brewing Company, VA)
15. Lindemans Cuvée René Grand Cru Gueuze Lambic Beer (Gueuze; BrouwerijLindemans, Belgium)
16. New Glarus Two Women Lager (German-style Pilsener; New Glarus BrewingCompany, WI)
17. Smuttynose Big Beer Series S’muttonator Double Bock Beer (Dopplebock; SmuttynoseBrewing Co., NH)
18. St. Feuillien Saison Belgian Farmhouse Ale (Saison/Farmhouse Ale; St-Feuillien Brewery, Belgium)
19. Jolly Pumpkin La Roja Artisan Amber Ale (American Wild Ale; Jolly Pumpkin ArtisanAles, LLC, MI)
20. 21st Amendment Insurrection Series Monk’s Blood (Belgian-style Dark Ale; 21st Amendment Brewery, CA)
21. Karl Strauss 23rd Anniversary Old Ale (Old Ale; Karl Strauss Brewing Co., CA)
22. Boulevard Smokestack Series Tank 7 Farmhouse Ale (Saison/Farmhouse Ale; Boulevard Brewing Company, MO)
23. Captain Lawrence Cuvée de Castleton Batch #5 (American Wild Ale; Captain Lawrence Brewing Co., NY)
24. Brewery Bockor Omer Traditional Blond Ale (Belgian-style Blonde Ale; Brewery Bockor, Belgium)
25. DuClaw Retribution (American Double/ Imperial Stout; DuClaw Brewing Company, MD)

Download the full listing here in PDF format:
http://www.winemag.com/PDFs/2012%20Top%2025%20Beers.pdf

Source: http://www.winemag.com/

Here in the United States we are going through a renaissance in beer.  The craft beer craze is sweeping the nation, but that doesn’t necessarily hold true for the rest of the world.  In South Korea, for example, the country is limited (for the most part) to one of two brewing companies.

The problem for South Korean boozers is that their national market is a cramped duopoly. Hite-Jinro and Oriental Brewery (OB) have nearly 100% of it. Their beers are hard to tell apart; their prices, even harder. At five out of five shops visited by The Economist, their main brands all cost precisely 1,850 won ($1.70) per 330ml can.

 

Until 2011, regulations required all brewers to have enough capacity to brew well over 1m litres at a time. This in effect kept all but Hite and OB from bringing foamy goodness to the masses. Smaller producers were allowed to sell their beer only on their own premises.

This is just the type of thing that we’re trying to prevent here at Indy Beers.  But even in the face of this duopoly, there is hope.

However, only a handful of small brewers have risen to the challenge. One of them, Craftworks Brewing Company, is owned by a Canadian, Dan Vroon. Mr Vroon’s pub in Seoul is packed every night. But several hurdles still make it hard for him to sell his pilsners, stouts and pale ales more widely, he says.

Of Course, this hope comes at a cost.

Brewers are taxed heavily if they deliver their own beer. Craftworks’ unpasteurized brews must be kept chilled from the vat to the tap, which creates a problem. Cold distribution is a tiny, pricey niche. This is because the big boys don’t use it: their beers have their tasty, bureaucrat-bothering bacteria removed at the brewery. They can thus be delivered warm and then chilled in the pub.

 

Punitive tariffs prevent brewing experimentation. The Korean taxman treats malt, hops and yeast as beer ingredients, which are subject to low import duties. Anything else you might put in the brew is deemed an agricultural import, and thus a threat to the nation’s farmers. “Speciality grains like oats aren’t on the approved list, so we must pay more than 500% if we want to use them,” says Park Chul, another frustrated brewer.

 

Those who do not qualify for a wholesale licence have it even worse. Though they sell only through their own pubs, government inspectors place meters on their vats. These can become contaminated, causing costly stoppages. “It’s enough to drive you to drink,” sighs Mr Vroon.

So next time you’re out at the pub having a great craft beer from an independent brewer, remember, not everyone in the world who has access to beer gets good beer.

Source: http://www.economist.com/

Big beer is getting the squeeze from big restaurants.   No longer is big beer the dominate tap handle at your local chain restaurant, instead these establishments are increasingly turning to craft beers for their beer selections.

More signs that American culinary tastes are changing, or perhaps becoming more diverse: 15 Chipotle Mexican Grill (CMG +2.24%) restaurants in Chicago have begun to sell locally-made “craft beers” on a trial basis, theChicago Tribune reports.

 

Earlier this year, the pasta restaurant chain Noodles & Co. announced a similar policy, offering its customers craft beers and upscale wines.

 

American craft brews are a big growth business. The Brewers Association reports dollar sales for the country’s small and independent craft brewers were up 14% in the first half of 2012, while the volume of craft brewed beer sold rose 12% in that same time period. Oh, and the number of total breweries in the U.S. is currently at a 125-year high.

 

“Generally, most craft brewers are continuing to see strong growth in production, sales, brewing capacity and employment, which is to be celebrated during challenged times for many of today’s small businesses,” said Brewers Association Director Paul Gatza in a statement. “Plus, it’s a fact that beer drinkers are responding to the quality and diversity created by small American brewing companies. India pale ales, seasonal beers, Belgian-inspired ales and a range of specialty beers are just a few of the beer styles that are growing rapidly.”

 

Industry experts say the trend of national chain restaurants selling local beer brands is hardly shocking news.

 

“I would say it’s not surprising as all, given the growing popularity and the enthusiasm and the passion that’s being driven by the craft beer segment in the United States,” says Eric Shepard, executive editor at Beer Marketer’s Insights, which covers the beer industry. “It’s still only 6% of the total volume, but seems to grow under a lot more of that in terms of the passion and media coverage.”

 

Shepard points towards the so-called “locavore” movement — where consumers prefer food, beverages and produce grown regionally — as a model for the national restaurant chains to consider.

 

“I think some of the other restaurant chains have already adopted this to a certain extent,” he said, “where they give a certain amount of freedom to their franchisees to choose based on where they are and the local tastes and food as well. That they would do that in beer as well just makes a whole lot of sense.”

 

But nothing is simple, and that’s certainly true when you talk about defining what exactly is a craft beer.

 

The big brewers are creating their own craft beers — such as Blue Moon, produced by MillerCoors (TAP +1.23%) or Shock Top from Anheuser Busch (BUD +2.57%). “They see where the growth in the industry is and it’s been fairly explosive in crafts over the last four or five years,” says Shepard. “And they want to play in that space as well. Ultimately the consumer will sort all of this out.”

Source:  http://money.msn.com/