Industry News

Will Craft Lager Be Mega-Brewers’ Next Headache?

Unless you live in New York or southern California, you’ve probably never heard of House Beer. But House founder Brendan Sindell and his business partner have big plans for their beer. Really big plans. They want to beat Anheuser-Busch and SABMiller, and Coors at their own game: making lager in large quantities. And they plan to do so by making a better-tasting lager.

Despite craft beer’s rise in popularity, the overwhelming majority of beer sold in the U.S. is still lager. Some craft breweries, such as Sierra Nevada, have added a lager to their lineup, but most of their product is ales, India pale ale in particular.

House’s business model is different from that of craft brewers. It will offer just one beer, its lager. Its current production in 8,000 barrels a year, but it plans to expand rapidly, targeting customers in metropolitan areas starting with Chicago and Austin.

A panel of beer enthusiasts at CNBC tasted House beer, and found that it was better than the leading domestic and imported lagers. “[T]here’s none of the sour bite that accompanies a northern European lagers or pilsners. House is a lager beer that’s equal parts tasty and quenching without any of the flavor drawbacks that accompany mega-lager-brewers. It’s not as bitter or watered-down as some mega-brands are.”

The Friday Mash (PG-13 Edition)

On this day in 1984, the Motion Picture Association of America added “PG-13” to its film rating system. The new rating was created after parents and advocacy groups complained about the amount of violence in some PG-rated films.

And now…The Mash!

We begin in South Carolina, where a 20-year-old law forbids breweries to donate beer to non-profit organizations. This law—which state liquor agents are aggressively enforcing—effectively prevents small breweries from taking part in festivals.

In Las Vegas, Pub 365 plans to offer a rotating selection of 365 craft beers, including beer cocktails and a rare beer menu called the Unicorn List. Seasonals will make up one-fifth of the selection.

Market Watch’s Jason Notte writes that craft breweries are resorting to a tactic they once despised: establishing sub-brands for beers that may not fit the character of the brewery’s core business.

Starting next year, beer bikes will be banned from Amsterdam’s city center. Locals complained that the bikes, packed with bachelor partiers, have turned downtown into a drunken theme park.

The Washington Post’s Fritz Hahn has noticed a trend: the 16-ounce shaker pint is giving way to smaller glassware. It’s makes craft beer appear cheape, and it’s a more responsible way to serve high-gravity styles.

Thieves made off with two refrigerated trailers packed with 78,500 bottles of SweetWater Brewing Company’s beer. Police recovered some of the beer in a nearby warehouse—which, ironically, was a shooting location for the 1977 bootleg beer classic, Smokey and the Bandit.

Finally, Untappd, Inc., now offers “Untapped For Business”, which allows retailers to publish beer lists, share their menus with consumers, and notify customers that rare or sought-after beers are going to appear on store shelves.

The Friday Mash (Apple II Edition)

On this day in 1977, the Apple II, one of the first personal computers, went on sale. This PC, whose original list price was more than $5,000 in 2016 dollars, remained in production until 1981.

And now…The Mash!

Serious Eats magazine is hosting the Great American Beer Brawl. Visitors to the website are invited to vote for one of seven cites—or cast a write-in vote for a city not nominated by the magazine staff.

If you’re looking for a new summer beer, or an alternative to ubiquitous hoppy IPAs, give saison a try. The style pairs well with food; and it’s complimented by summer flavors like citrus, arugula, and fresh herbs.

Global Beverage has released three high-gravity beers in honor of the video game Mortal Kombat X: Sub-Zero Imperial IPA, Raiden Imperial Saison, and Scorpion Imperial Stout.

Wal-Mart has joined the craft beer party. A brewery in New York State is contract-brewing four private-label beers for the giant retailer. They’re available in nearly half of Wal-Mart’s stores.

Grow Pittsburgh is planting hop rhizomes in the city’s vacant lots. The hops will be harvested in the fall and used to make a local beer. Part of the proceeds from the beer will be donated to the community.

The Belgian Brewers’ Association has released a set of 60 beer emojis in order to “move the classic beer mug aside” for iOS and Android users. They’re downloadable on iTunes and Google Play.

Finally, Jack Horner, the paleontologist who inspired the Jurassic Park film series, credits the Rainier Brewing Company for advancing his work with dinosaurs. In 1979, the brewery donated 100 cases of Rainier beer to Horner and his research team.

The Friday Mash (T and A* Edition)

* No, it’s not what you think. Get your minds out of the gutter!

On this day in 1927 the Ford Motor Company ended production of the Model T automobile, which sold 16.5 million models beginning in 1909. Production of its successor, the Model A, began five months later.

And now…The Mash!

We begin in Philadelphia, whose city parks will become venues for “pop-up” beer festivals this summer. “Parks on Tap” will send beer and food trucks to the parks; there will also be live music and games.

Anheuser-Busch InBev is introducing a 100-plus-year-old Mexican beer, Estrella Jasilico, to the U.S. market to compete with Corona. Mexican beer imports to the U.S. rose by more than 14 percent.

Whale vomit is the latest icky ingredient in beer. Australia’s Robe Town Brewery used it to make Moby Dick Ambergris Ale. Medieval doctors used ambergris; today, it’s an ingredient in perfume.

Before the Cuban Revolution, La Tropical was the country’s oldest beer. Miami businessman Manny Portuondo plans to bring the brand back to life, this time on the other side of the Florida Straits.

Carnival Cruise Lines’ biggest ship, Carnival Vista, is the first cruise ship to have an on-board brewery. Brewmaster Colin Presby sat down with USA Today to talk about what he’s serving.

The Phillips Brewery in British Columbia has responded to drones by recruiting bald eagles to drop-deliver beer. Budweiser executives must be asking themselves, “Why didn’t we think of this?”

Finally, chemists at the Complutense University of Madrid have created an app that can tell you when a beer has too much of a “stale” flavor. The disk and app look for furfunal, a polymer that imparts a cardboard taste to over-aged beer.

The Friday Mash (High-Flying Edition)

On this day in 1927, Charles Lindbergh took off from Roosevelt Field in New York, beginning the first-ever solo trans-Atlantic flight. Five years later, Amelia Earhart became the first female aviator to accomplish that feat.

And now…The Mash!

We begin in the halls of justice, where Flying Dog Ales will fund a “First Amendment Society” with the settlement money the state of Michigan paid it. The courts ruled that Michigan violated Flying Dog’s constitutional rights by denying it permission to market Raging Bitch Belgian-Style IPA.

The Brooklyn Brewery has signed a long-term lease under which it will build a beer garden, brewing facility, and restaurant on the site of the Brooklyn Navy Yard..

A Munich court ordered the Hofbraukeller beer hall to honor its contract to host an event hosted by a far-right political party. In 1919, Adolf Hitler delivered his first-ever political speech at the Hofbraukeller.

Mercedes-Benz Stadium, soon to be the new home of the Atlanta Falcons, will have the cheapest beer in the National Football League: $5. It will also offer $3 hot dogs and $2 Coca-Colas.

Some of the biggest names in Chicago’s beer community have joined an effort to raise funds to build the Chicago Brewseum. It will serve beer made on-premises by guest brewers.

Former major-leaguer Brandon Laird, now playing for Japan’s Hokkaido Nippon-Ham Fighters, won himself a year’s supply of beer after hitting a home run off the Kirin Brewery sign at the Tokyo Dome.

Finally, the Saugatuck Brewing Company wasted no time poking fun at Anheuser-Busch’s rebranding of Budweiser as “America”. Its parody beer, “‘Murica”, is brewed in a style America’s founders might describe as “Freedom,” and the process is naturally overseen by 1,776 bald eagles.

The Friday Mash (St. John the Silent Edition)

Today is the feast day of St. John the Silent. So, in the words of Elmer Fudd, we’re going to be “vewy quiet”.

Shhhhh…

We begin in San Diego, where Stone Brewing Company co-founders Greg Koch and Steve Wagner have invested $100 million in True Craft, a private-equity firm that will take minority positions in craft breweries that need funding to expand.

Brewery Vivant and the Grand Rapids Symphony Orchestra have released a collaboration beer, Carmina Beerana. This single-malt, single-hop beer was inspired by Carl Orff’s classic work.

Hopyard, a newly-opened beer bar in Charlottetown, Prince Edward Island, offers two of the hottest things in pop culture: craft beer and vinyl music.

Jeff Vrabel of GQ magazine unleashed a righteous rant about alcoholic root beer. He believes that root beer belongs to childhood and ought to remain there.

Last Friday, the Bar D’Alsace-tian in London put a team of Alsatian dogs to work delivering cold bottles of beer to customers in custom harnesses in the shape of a barrel.

Starr Hill Brewery is celebrating the Dave Matthews Band’s 25th anniversary with a beer called Warehouse Pils. “Warehouse” is the name of the band’s official fan club.

Finally, Danish beermaker Mikkeller Brewing is bringing its acclaimed Copenhagen Beer Celebration to Boston. The two-day festival, to be held in September, will feature more than 100 craft beers from over 50 breweries from around the world.

In San Diego, 10 Barrel Draws Craft Brewers’ Ire

Forbes magazine correspondent Tara Nurin reports that the San Diego Brewers Guild is asking city planners to turn down 10 Barrel Brewing Company’s application to build a brewpub near Petco Park, the home of the San Diego Padres baseball team.

Guild members warn that letting 10 Barrel open a pub will drive independent, locally-owned breweries and brewpubs out of business. They point out that 10 Barrel is based nearly 1,000 miles away in Bend, Oregon. Worse yet, 10 Barrel is now owned by Anheuser-Busch In Bev, and is in the process of opening pubs in cities throughout the West.

However, not everyone in the city’s craft beer community is opposed to 10 Barrel. Andy “The Beerman” Coppock, who hosts of “The Business of Beer podcast,” says, “[S]ay what you will about [Anheuser-Busch InBev], their craft brands are very well-made beers. At the end of the day, I want to see people drinking better beer.”

Nurin, who as a television reporter covered planning board meetings, has seen similar protests against letting “big box” retailers such as Wal-Mart come to town. She notes that the big-box companies invariably got their way, and predicts that 10 Barrel will likewise get the go-ahead.

Goose Island and the Domino Effect

Five years ago, Goose Island Beer Company announced that it would be acquired by Anheuser-Busch InBev. John Hall, Goose Island’s founder, stayed on as an A-B InBev employee. He was put in charge of the company’s craft and import division. That division, now called High End, followed the Goose Island precedent and began buying craft breweries. There are now eight in High End’s portfolio.

There was another member of the Hall family to Goose Island: John Hall’s son, Greg. He left Goose Island after the sale and opened Virtue Cider on a farm in Michigan. Demand for the cider overwhelmed Virtue’s inefficient packaging equipment. Greg Hall wound up selling a controlling stake in Virtue to A-B InBev. The deal also allows Virtue to save on capital expenses; it uses Goose Island’s bottling and kegging operation in Chicago and thus doesn’t have to buy its own equipment.

Jason Notte of Marketwatch.com recently spoke with the Halls just a few weeks before the fifth anniversary of the Goose Island sale and discussed “life afterward, the changes that have occurred in both the craft beer and cider markets since and what the sale meant to Virtue Cider and other A-B InBev High End offerings”. The interview is on the lengthy side, but definitely worth reading

The Friday Mash (Boomer Sooner Edition)

One hundred and twenty-five years ago today, at high noon, thousands of people took part in the Oklahoma Land Rush. Within hours, Oklahoma City and Guthrie had instant populations of 10,000.

And now…The Mash!

We begin in Tumwater, Washington, once the home of Olympia Brewing Company. Today, it’s the home of a cluster of legal marijuana growers and processors—including one of the state’s largest.

Peru’s Cerveza San Juan beer brand has replaced the roaring jaguar with barnyard animals on its cans. The reason? The brewery is calling attention to the big cat’s endangered status.

Officials have reinstated beer at the University of Missouri’s “Tiger Prowl”, where graduating seniors eat barbecue, get free merchandise, and get ready to say goodbye to their classmates.

Anheuser-Busch InBev has acquired its eighth craft brewery, Devil’s Backbone of Roseland, Virginia. Established in 2008, Devil’s Backbone has won multiple Great American Beer Festival medals.

The Vietnamese love beer, and craft brewers have begun to enter the market. One new craft is the Pasteur Street Brewing Company, whose founders include Vick’s Florida native John Reid.

Forbes magazine’s Tara Nurin explores “pay-to-play” in beer distribution. Even after a high-profile crackdown in Massachusetts, she says it’s “a common yet whispered business practice”.

Finally, Don Russell aka Joe Sixpack takes us back to the bad old days of Prohibition’s “needle beer”: speakeasy owners injected alcohol into near beer—which was still legal in the 1920s. One customer, who sampled the stuff, compared it to 44-D cough syrup.

The Friday Mash (Apple Edition)

Forty years ago today, Steve Jobs, Steve Wozniak, and Ronald Wayne founded what became Apple, Inc. Today, the Apple brand is considered the world’s most valuable, worth close to $120 billion.

And now…The Mash!

We begin in Fort Worth, where fans of Louis Torres’s “beer can house” have just days to get a last look at it. Torres sold the house, which is likely to be leveled by developers.

A federal appeals court in Cincinnati ruled that Anheuser-Busch InBev can sell beer with up to 0.03 percent less alcohol than advertised and still be in compliance with the law.

The World of Beer chain of beers is taking expansion to a new level. It has granted a franchise to Chinese investors, who plan to open three locations in Shanghai.

According to the UK’s Local Government Association, one way of curbing alcohol abuse is to make lower-alcohol beverages—i.e., beer—more widely available to drinkers.

Neal Ungerleider of Fast Company magazine reports on the status of Stone Brewing Company’s brewery in Berlin, and Stone’s effort to sell IPA to Germany’s conservative beer drinkers.

A couch potato’s dream happened in I-95 in Melbourne, Florida. A semi-trailer carrying Busch beer slammed into the back of another truck loaded with Frito-Lay products.

Finally, the owner of a Belgian beer bar in Philadelphia had these words for those who carried out the terror attacks in Brussels: “Heaven is an afterlife of Belgian beers, chocolates and frietjes that the terrorists shall never know.”

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