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March 2014 (Issue 20.3)

 
 

On Tap This Month:

  • Brewers Association Revises Craft Brewer Definition
  • Pabst Up For Sale (Again)
  • 21st Amendment Finds San Leandro Home
  • 'Aunt' Phyllis Schlafly Complicates Things For Brewery
  • Details On Stone Brewing's East Coast Plans
  • Heading To Denver For CBC?
  • That's A Lot of New Breweries
  • Welsh Brewery's 'Sunday Toast' Lamb-Flavored Beer
  • Firestone Walker Looking For Geekiest 'Geeks'
  • Listicle #1: Best Light Beers
  • Listicle #2: Why Beer Is Good For You
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BREWERS ASSOCIATION REVISES CRAFT BREWER DEFINITION

The Brewers Association Board of Directors has updated the organization's purpose, mission, core values and beliefs, as well as the definition of "craft brewer." The change attracting the most attention is the "traditional" component in the craft brewer definition. Before the update, the defintion of traditional read, "A brewer who has either an all malt flagship (the beer which represents the greatest volume among that brewers brands) or has at least 50% of its volume in either all malt beers or in beers which use adjuncts to enhance rather than lighten flavor." Now it means, "A brewer that has a majority of its total beverage alcohol volume in beers whose flavor derives from traditional or innovative brewing ingredients and their fermentation." Basically, the new definition makes room for brewers to use adjuncts—including corn or rice—and still be considered "craft." This allows Yuengling, Straub, and August Schell (among others) to call themselves craft breweries.

Changes to the purpose and mission statements are not as dramatic, but reflect that the association continues to evolve. For instance, the purpose statement now reads, "To promote and protect American craft brewers, their beers and the community of brewing enthusiasts." Board chair Gary Fish said, "In spirit and action, our purpose remains unchanged. Removing the previous reference to 'craft beers'—which the Brewers Association does not define, but rather leaves to the beer enthusiast—allows the focus to remain on the craft brewers the BA works to promote and protect." In addition, the mission statement now includes, "By 2020, America's craft brewers will have more than 20 percent market share and will continue to be recognized as making the best beer in the world." Fish said, "The 20-by-‘20 objective is an aspirational goal for our craft community, with an inspiring symmetry. I’m convinced this goal is within our reach if we, as an industry, continue to focus on our strengths and passions—making and delivering high-quality, innovative, full-flavored beer to craft beer enthusiasts."

 
 

PABST UP FOR SALE (AGAIN)

It looks like the Pabst Brewing Co., which no longer brews but still owns and sells the iconic Pabst Blue Ribbon (PBR) brand, is up for sale. Reuters reported veteran food industry investor C. Dean Metropoulos has hired an investment bank to sell the company. Metropoulos bought the company in 2010 for $250 million. Insiders say now it could bring $500 million to $1 billion, and that Pabst is also considering an initial public offering. Pabst once operated one of the largest breweries in America, but several years ago became a contract brewer, marketing the Pabst brand as well as other "retro" labels like Schlitz and Old Milwaukee. Oscar Yuan, vice president of Millard Brown Optimor, said Reuter's $500 million to $1 billion figure estimating the enterprise value of Pabst doesn't sound out of the realm of possibility. "Pabst is capturing a market they think is growing," Yuan said of the beer company's owners. "PBR being a somewhat crafty, somewhat smaller, niche brand is actually a great thing in the market." Yuan said it's possible some of the big beer brands might be interested in acquiring Pabst for its customers who are loyal to smaller beer brands instead of mainstream ones. "It's a smaller brand, but has a unique appeal that Miller and Budweiser can't reach," Yuan said.

 
 

21ST AMENDMENT FINDS SAN LEANDRO HOME

Co-founders Nico Freccia and Shaun O’Sullivan have announced plans for a new 21st Amendment production brewery, tasting room, restaurant and event space located in the former Kellogg Cereal factory building in San Leandro, Calif. They expect the facility to open later this year and have an initial brewing capacity of 100,000 barrels (a barrel equals 31 gallons). The company expects to brew over 70,000 barrels in 2014. "Since we began packaging our beer six years ago with our Minnesota partner brewery, we have never been able to keep up with demand," Freccia said for a press release. "Building our own local brewery will allow us to continue to focus on improving quality and consistency, and to expand into new markets where our beer is in demand.” The facility will include a tasting room and retail area as well as the company’s headquarters. Phase two will commence in 2015 and include a full restaurant/pub, beer garden, event and meeting rooms and more. The company plans to continue to also have beer made under contract in Cold Spring, Minn.

 
 

'AUNT PHYLLIS' SCHAFLY COMPLICATES LIFE FOR BEERMAKER

Phyllis Schlafly is opposing a federal trademark for the name "Schlafly" for beer made by the Saint Louis Brewery, which was co-founded by her nephew, Tom Schlafly. The brewery applied for the trademark on the use of the brand name in 2011. Phyllis Schlafly filed a notice of opposition with the U.S. Patent and Trademark Office in September 2012. Settlement talks have failed to produce a resolution, and neither side appears ready to back down. Schlafly beer is brewed in a downtown brewpub, known as the Schlafly Tap Room, and a production brewery in neighboring Maplewood. The brewpub opened in 1991 and has always called its beer "Schlafly." The trademark case poses no threat to the sale of Schlafly-branded beer, Tom Schlafly told the Post-Dispatch newspaper. "The full federal trademark has nothing to do with our right to sell beer, and no one is contesting our right to do that," he said. But unresolved is whether it will be able to trademark the brand. Tom Schlafly lives in St. Louis itself and is active on numerous community boards. Phyllis Schlafly is a nationally known conservative activist who lives in suburban Ladue. In 1972, she founded the Eagle Forum, which helped defeat the proposed Equal Rights Amendment (ERA).

 
 

DETAILS EMERGE ABOUT STONE BREWING EAST COAST BREWERY

Stone Brewing has posted its Request for Proposals (RFP) for an East Coast facility, and several communities are actively working to land the Southern California brewery. The deadline for proposals is March 15, and the RFP says Stone plans to beging work on the brewery this year. It also states capital expenditures are projected to exceed $20 million for the initial phase. Production is projected to exceed 120,000 barrels in that first phase and eventually scale to nearly 500,000. Revenue is projected to exceed $100 million in the fourth years of operation and the payroll will "grow in number to the low to mid-hundreds." The company also plans to develop a Stone World Bistro & Gardens similar to the ones it already has in Escondido and Liberty Station.

 
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WILL YOU BE IN DENVER FOR CBC?

If you plan to attend the Craft Brewer’s Conference in Denver this April 8-11 and you’ve thought about advertising in Realbeer.com or Probrewer.com. (or both) I’m available for meetings during the conference. Please email me, Banjo Bandolas, at banjo@realbeer.com or call 541-284-5500 to arrange a meeting.

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TTB COUNTS 948 NEW BREWERY PERMITS ISSUED

The Beer Institute reports the Alcohol Tobacco Tax and Trade Bureau (TTB) registered 948 new “permitted breweries” in 2013 and that there are now 3,699 active. Analysis by the Beer Institute showed that the majority of the new permits issued in 2013 went to brewpubs. It also found four states account for one-third of all breweries in the United States: California, Washington, Colorado and Oregon. "We have tracked the industry since our preceding trade association was first founded in 1862, and there’s a story in these numbers. Beer is constantly evolving in the U.S., with more small brewers than ever before, more brands being introduced by national brewers and growing interest in imports," Chris Thorne, vice president of communications at the Beer Institute, said for a press release. More than 90% of permitted breweries produce less than 60,000 barrels annually.

 
 

WELSH BREWER MAKES LAMB-FLAVORED BEER

A Welsh brewer has created a new beer with lamb flavor for St. David’s Day, the national day of Wales. Conwy Brewery said its Sunday Toast has infused lamb in the brewing process, combining the aromas of a Sunday roast with a dark ale. The North Wales brewery slow-roasted Welsh lamb before adding the dissolved meat juices and sugar and keeping the brew warm for a week. "Seasonal beers are a specialty of ours, but we wanted to do something really different to celebrate our country’s national day," spokesman Gwynne Thomas said. [From news.com.au]

 
 

WIN YOUR WAY INTO THE FIRESTONE WALKER INVITATIONAL

There is another way to get into the 2014 Firestone Walker Invitational Beer Fest, which sold out in 22 minutes. Firestone Walker is offering the "Ultimate Beer Geek" a package that includes four VIP early-entry tickets to the fest; a private brewery tour and tasting with The Lion (a.k.a. David Walker); complimentary overnight accommodations; and $100 to blow on food and merchandise at the Taproom restaurant and/or brewery store. All the winner has to do is get to Paso Robles, Calif., for the festival May 31. Rules are posted at the Firestone Walker website, but here at the basics: The brewery is looking for a YouTube video that showcased "the ultimate beer geek." There are no creative parameters. Video submissions will be judged on the basis of originality, creativity, ingenuity, cleverness, resourcefulness and pure entertainment. The grand-prize winner will be chosen by brewery employees after the entry period closes on April 15, and will be announced on or before May 1. A runner-up prize will also be offered, consisting of two general admission tickets; a private brewery tour and tasting with The Lion; and a $100 gift certificate.

 
 

LISTICLE #1: THE 24 BEST LIGHT BEERS

From Deadspin, the ultimate case:
1. Milson Canadian Light.
2. Kirin Light.
3. Labatt Blue Light.
4. Samuel Adams Light.
5. Miller Light.
6. Heineken Light.
7. Michelob Ultra Lime Cactus.
8. Michelob Light.
9. Medalla Light.
10. Coors Light.
11. Bud Light Platinum.
12. Genny Light.
13. Michelob Ultra.
14. Corona Light.
15. Keystone Light.
16. Natural Light.
17. Busch Light.
18. Sapporo Light.
19. Bud Select.
20. Bud Light.
21. Amstel Light.
22. Beck's Premier Light.
23. Miller 64.
24. Bud Light Lime.

 
 

LISTICLE #2: WHY BEER IS NOT BAD FOR YOU

From The Times of India:
1. Beer drinkers live longer.
2. Beer is all-natural.
3. Beer is low in calories, low in carbohydrates and has no fat or cholesterol.
4. Beer improves your cholesterol.
5. Beer helps you chill.
6. Beer has plenty o' B vitamins.
7. Beer is safer than water.
8. Beer prevents heart attacks.
9. Beer fights cancer.
10. Beer does not give you a beer belly.

 
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