Blog Entries Tagged as brewing

Reverse Consolidation?

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Category: General Blogs  |  Tags: brewing

In the course of putting together our annual Forecast issue (the fun begins with the rather foreboding cover item on energy drinks on page 32), it’s often a tricky task to put a fresh spin on certain categories that, year after year, seem to have been performing more or less the same, give or take a volume percentage point here or there. And when the outlook for the coming year is for more of the same, it’s a mixed blessing: It’s a good thing because those doing the forecasting have a smaller chance of being wrong when performance has been so consistent and bad because those of us tasked with writing about such projections have to figure out a way to not keep repeating ourselves.

The category of which I speak, of course, is beer. To borrow a phrase from Led Zeppelin, the song remains the same: Beer’s going to keep losing alcohol share to wine and spirits, the overall market’s going to be flat or, at best, grow at a dying snail’s pace, but the craft segment’s going to continue to enjoy low double-digit growth in both volume and dollar sales.

However, a potential new twist on what’s happening in the market is that a strange dichotomy has emerged. At the top of the market, where the large multinational brewers roam (and on the distribution tier, for that matter— but that’s another story), consolidation is the driving dynamic. AB InBev is buying Modelo—a handful of years after InBev bought Anheuser-Busch to form the gargantuan entity we’ve come to know and love—Heineken’s expected to take control of Asia Pacific Breweries and there are always rumors and rumblings that AB InBev might even merge with SABMiller to give new meaning to the word ‘formidable.’

But on the small brewer side, domain of the crafts, you’ve got the reverse happening. There are already more than 2,100 small, independent brewers in the country, up several hundred from just a year ago. With more than 1,300 breweries in planning at last tally, that number could hit 2,500 in 2013. Sure there’s some consolidation happening with a couple of brewers here and there merging or giants scooping them up—à la AB InBev-Goose Island—but, relative to the number of newbies popping up, those instances are few and far between, the exceptions rather than the rule. It’s almost as if the market as a whole has gotten so consolidated that the pendulum has swung toward the exact opposite of consolidation, as far as craft brewing is concerned.

It’s a phenomenon that’s carrying over into spirits, as our November 2012 cover story could attest. It’s also happening in the non-alcohol realm among segments like artisanal sodas.

Will this reverse consolidation eventually slow down and become the reverse of reverse consolidation (aka ‘consolidation’)? Of course, that’s ultimately the market trajectory that history favors. However, 100 or so years from now, couldn’t the cycle start anew yet again? Even more recent history favors that scenario. It’s a pendulum effect and, pendula are, after all, controlled by gravity—a force not unlike consumer demand.

Crafting a Positive Message

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Category: General Blogs  |  Tags: brewing

I’ve found myself spreading the “craft beer word” quite a bit recently. Not really on purpose. It’s just that when you become familiar with the craft beer movement, it can become hard not to evangelize a little about it. After all, there are few stories in the beverage world these days that are as exciting as the meteoric rise we are seeing with craft.  And, it’s hard to not educate others about that and the fact that a fundamental shift is currently taking place in how Americans consume beer.

That shift, as you might expect, is still underreported when it comes to the mainstream press. Whether it’s on TV or in the newspapers, beer consumption can still automatically rack up its share of negative press coverage. Instead, few may be aware of what an economic powerhouse the craft movement has been for the U.S. Few probably know that as of June this year the U.S. recorded its highest number of breweries (2,126) in 125 years (in 1890, it had 2,011).

As a result, some still tend to look at the glass half empty when they hear beer. For example, I’ve recently found myself trying to convince some of my neighbors here in the Queens, N.Y. town where I live that a soon-to-open gastropub will actually be a big plus for our downtown shopping area. The pub says it will offer a wide selection of craft beer, whiskey, scotch and delicious foods to go with them. Sounds like a classy joint to me. Our downtown could use just the type of consumers who buy craft beer. That demographic tends to be young and educated and has money to spend, something our main shopping drag, already with its share of empty storefronts, could only benefit from. Unfortunately, some of my neighbors have immediately jumped to an opposite conclusion. They only see drunken patrons stumbling out onto the sidewalk, disturbing the peace.

Nevertheless, I continue to do my share to talk up the craft movement wherever I can. This Thanksgiving, I realized I had some unopened craft beer samples lying around my apartment (yes, one of the perks of being an editor of Beverage World is that we get our share of samples!). Suddenly it occurred to me that several of the people coming to Thanksgiving this year I knew to be beer lovers. Maybe a tasting was in order? It would kill two birds with one stone. After all, my Thanksgivings have several times in recent years taken a turn towards the Dark Side thanks to some bitter political divides. What better way to gird against the possibility of any more drama than by a pleasant beer tasting?

Turns out, my instincts were right on target. The beer tasting was a huge hit and even served to educate those around the table about the different varieties of craft beer. I think it opened some of the beer lovers’ eyes to the wider world that craft affords us all. And I’m happy to report, this exercise in beer discovery was just the thing to unite an otherwise politically polarized group soon after the bitterness of the recent election. Yes, craft beer at the Kaplan Family Thanksgiving was a uniter, not a divider. You might want to give it a try at your celebratory gatherings this month. Happy Holidays!

’Tis the Season

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Category: General Blogs  |  Tags: brewing

Christmas seems to come earlier and earlier each year. Retail windows decorated in snowy wonderlands, Christmas tunes filling department stores and seasonal beverages appearing on restaurant and bar menus.
I always know the official Christmas season has begun when Starbucks switches over from its iconic white cups with green emblem to its red holiday cups; this year the coffee house chose snowmen, carolers and a fox in wintery scenes to welcome the holiday season.

I’m not the only one who looks forward to this changeover. A quick Google search reveals there is a website dedicated to counting down the days until the red cups return and millions of search results return for the words “Starbucks holiday cups.”

But the seasonal return of these fun and festive cups also seemed to come a bit earlier this year. It was early November when I walked into a Starbucks outside of the South Kensington tube station in London craving a Pumpkin Spice Latte only to find a menu of Christmas-themed coffees—Eggnog Latte, Gingerbread Latte, Toffee Nut Latte and Praline Mocha.

“Are you making Pumpkin Spice Lattes still?” I asked with my fingers crossed that they could still make the fall drink.

“No,” the barista replied. “I’m sorry.” So, I opted for the Praline Mocha, new for this Christmas. It’s warm bittersweet chocolate infused with the flavor of hazelnut combined with espresso and steamed milk topped with whipped cream and a drizzle of mocha sauce.

Even though I was disappointed that fall was over and winter had begun—at Starbucks, anyway—I found myself switching gears and getting into the holiday spirit, making a mental Christmas list, getting excited about upcoming holiday parties and enjoying my tall Praline Mocha, no whip.

On the alcohol side, breweries continue their seasonal offerings moving into darker beers, bourbon barrel aged ales, beers with higher alcohol. Anheuser-Busch Winter’s Bourbon Cask Ale, Freemont Brewing’s Bourbon Barrel Abominable and Widmer Brothers Brrr Seasonal Ale are just among a few of the many beers crafted to warm us up during the winter months.

At a recent Bacardi holiday event, the brand showcased how to spice up the holiday season with drinks other than traditional eggnog. Take the Coquito for example. A traditional holiday drink of Puerto Rico, the Coquito is made with half a bottle of Bacardi Superior, one can of evaporated milk, one can of condensed milk, two cans of cream of coconut and two teaspoons of cinnamon. Slowly blend the evaporated milk, condensed milk and the cream and coconut. Then add the cinnamon and slowly add Bacardi Superior until everything is incorporated.

Brand ambassador David Cid took us through a selection of five other cocktails at NY’s Abe & Arthur’s—The Bacardi Cocktail, The Selleck, Airmail, Bacardi Holiday Punch and La Noche. Bacardi Holiday Punch, for instance, consists of 750 ml of Bacardi Superior or Bacardi Gold rum, 2 liters of ginger ale chilled, 8 ounces of orange juice, one ounce of lime juice and one and one-half ounce of lemon juice.

Now that the holidays have officially arrived, take your drink menus to the next level and introduce your guests to some new flavors. Happy holidays.

The Teacher Has Become the Student

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Category: General Blogs  |  Tags: brewing

My wife and I just went on what was quite possibly the best brewery tour we'd ever been on (and believe me, we've been on a lot of them). It was at London's Meantime Brewing Company, a 13-year-old craft operation that takes its name from the fact that it's situated in the chronological capital of the world, Greenwich.

When tour leader Alex (a quite dynamic guide) learned we were from the States he couldn't stop gushing about the U.S. craft beer scene and how the U.K. is about 15 years behind the American movement. Wait a minute. BEHIND? A great deal of American craft brewers took a cue from classic styles from Britain (as well as, of course, Belgium, Germany and the Czech Republic) when developing their own products. Beer travelers from the U.S. trek across the pond to drink cask-conditioned Real Ale. And a lot of the U.S. craft brewers offer cask versions of their own products, again a nod to the classic British tradition.

But now there are breweries like Meantime whose offerings are heavily influenced by the styles popularized by American craft brewers—those same styles whose ancestors were European and tweaked and reinvented over time. American pale ale is of course a descendant of English pale ale. The same goes, of course for American IPAs, which evolved from British India Pale Ales, which were more aggressively hopped and had a higher ABV to preserve them for the 18,000-mile pre-canal-era voyage from England to thirsty colonial troops in India.

The walls of Meantime's tasting room were filled with bottles from around the world with a disproportionately large section devoted to U.S. craft brews. Others visiting the brewery were eager to tell us how much they loved beers from the likes Brooklyn Brewery or Stone.

And it's not just the U.K. The brewing boomerang has flown back to Belgium as well, with U.S.-influenced styles like Belgian IPA emerging.

It's hard to believe that not too long ago Europeans considered American beers a total joke. But who's laughing now?

 

 

BevStar Awards 2012: We Finally Have Our Winners!

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Category: General Blogs  |  Tags: brewing

After a lengthy judging process involving a record number of entries this year and a self-imposed media blackout until the official winners' issue started arriving this week, we are very pleased to announce the winners of the 2012 Beverage World BevStar Awards. For those just joining us, the BevStars recognize new product innovation across all of the major beverage categories.

We received a particularly robust shower of entries in the Energy & Functional category—so many that we decided to split it into two separate categories this year. It really reflects the level of innovation in those segments. If you recall from our 2012 State of the Industry report, energy drink volume returned to double-digit growth last year, with an increase of more than 17 percent in 2011, according to Beverage Marketing Corporation.

Without further ado, here's the list of this year's winners. For details on all of these brands, read the July 2012 issue of Beverage World. Congratulations to all!

BEST IN SHOW
Ruthless Rye IPA, Sierra Nevada Brewing Co.

BEER
Gold: Ruthless Rye IPA, Sierra Nevada Brewing Co.
Silver: Deviant Dale's IPA, Oskar Blues Brewing Co.
Bronze: Bronx Pale Ale, The Bronx Brewery

BOTTLED WATER
Gold: MyCause Water, Panacea Beverage Co.
Silver: Elevate Enhanced Fiber Water, 912 Corp.
Bronze: Karma Wellness Water, Karma Kulture LLC

CARBONATED SOFT DRINKS
Gold: Spindrift, Spindrift Soda co.
Silver: Dr Pepper Ten, Dr Pepper Snapple Group
Bronze: HotLips Cranberry Soda, HotLips Soda Co.

ENERGY
Gold: Monster Rehab, Monster Beverage Co.
Silver: Slap Frozen Energy, Brain-Twist
Bronze: Berry Rain, RevHoney

FUNCTIONAL
Gold: Neuro Sun, Neuro Beverage
Silver: Ralph & Charlie's Aloe, Ralph & Charlie's Beverage Co.
Bronze: Modjo Hydrate Elite, Cellutions

READY-TO-DRINK TEA & COFFEE
Gold: Honest (Not Too) Sweet Tea, Honest Tea
Silver: RealBeanz, RealBeanz LLC
Bronze: Tao of Tea, The Tao of Tea

SPIRITS
Gold: Purgatory Vodka, Alaska Distillery
Silver: Apple Pie Moonshine, Ole Smoky Moonshine Distillery
Bronze: BuzzBallz, BuzzBallz LLC

WINE
Gold: FlasqWines, JT Wines
Silver: Blanc de Bleu, Premium Vintage Cellars
Bronze: Xavier Flouret La Pilar Malbec, Cognac One LLC

For those brands that entered but didn't take a gold, silver or bronze in any of the categories, don't fret. Competition was particularly stiff this year and the decisions were all very difficult for all of us on the judging panel. And there's always next year. We'll be announcing a call for entries some time in December.