The big get bigger

Posted on October 9th, 2007 in Beer News by Justin

The Associated Press is reporting today that macro-brewers Miller and Molson Coors are planning to combine U.S. operations to help compete with Anheuser-Busch.  The big just keep getting bigger.

The creativity that is so evident in their beer production is also apparent in the name of the new company:  MillerCoors.

This merger raises some interesting questions and will be intriguing to watch over the next year.  Firstly, it shows that the big beer companies may not be near as worried about competing with craft beer as they are each other, which probably makes sense for them given the amount of dollars involved.

That said, I think this is only going to widen the gap between craft beer and “big” beer more, alienating the macro-beer producers and pinning them into a more definite role/stereotype.  With (soon to be) two companies controlling the vast majority of macro beer out there, it seems evident that the variety (if you want to call it that) present in that market will become much more narrow.

In addition, this throws an interesting message to the consumer.  This hammers home the point that the big beer companies really are about mass producing the most beer for the cheapest price possible.  Although this may be lost on many beer drinkers out there, I don’t think it will go completely unnoticed.  To the craft beer producers’ credit, they remain true to the art of producing good, interesting beer, regardless of market pressures or money games.  Go them.

Let’s look more into the future.  As has been reported many times recently, hop and grain prices are on the rise, and next year, they’re going to be out the roof.  This is going to mean an across-the-board increase in beer prices, as the price to produce beer goes up.

Couple the ingredient price increases with a merger that is based largely on saving money (up to $500 million is reported saved in ops costs by this merger), and it doesn’t take much to see that next year could bring an even blander crop of macro beer.  As prices go up and MillerCoors merges to cut costs, undoubtedly some recipe and ingredient changes will probably take place, watering down an already pale product.

What else does that mean?  Well, it could mean that the “craft label” efforts that Coors is currently courting (such as Blue Moon), could become a back burner deal.  Coors has stated in the past that fostering the growth of craft brands is important to them, and in a rare move, I applaud them on that (that is, if they do it right).  However, merging to cut costs and stay competitive with AB, who doesn’t produce any worthwhile craft labels, doesn’t seem to bode well for the future of innovation at Coors.  Just my thoughts and predictions.

So…what does this mean for you, the craft beer lover?  Well, maybe not a whole heck of a lot, but it could mean a widening gap between craft and macro beer that could possibly help to shine the light on craft beer producers more.  As this merger happens, craft beer producers have the opportunity, however brief, to make it evident to consumers that there are great brewers out there whose beer doesn’t revolve around a bottom line.  This could be a big boost to the craft beer market, if it’s approached right.  Will everyone out there catch on?  No, but if a few more people leave behind the mass market machine of malted mess, then it’s all the better for craft beer lovers.

Time to pop the popcorn, grab a great craft beer and watch the show.  Looks to be an interesting one, that’s for sure.

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Way to go Tennessee…stupid laws again, but this time, more dangerous

Posted on October 8th, 2007 in Beer News, Rants by Justin

The nation has already seen how ridiculous Tennessee can be when crafting laws related to the purchase and consumption of beer.  The mandatory ID law that was passed earlier this year solidified this state into the hall of fame of legislative craziness.

However…they’ve one-upped themselves now.  And this time, it’s far more broad and dangerous.

First, a little background. 

Recently, in a move of state idiocy, law enforcement agents have been monitoring the borders to arrest people buying cigarettes from across state lines and bringing them back into Tennessee.  2 cartons of cigarettes brought back into the state counts as a misdemeanor, with over 25 cases being noted as a felony.  A felony?  Geez.

Now…it’s on to beer.

An article printed in today’s Knoxville News Sentinel points out that this enforcement is now reaching to cover beer as well, with beer being bought from out of state being considered a criminal act.  Wow.  As if you didn’t think it could get worse (yeah right, never think that when it comes to government).

Currently, the enforcement is only applied to beer bought concurrently with cigarettes, and the beer is confiscated at the time that the cigarettes are.  However, it appears that it’s very likely that that could change.  The law is aimed an preventing cross-border purchasing that is rampant due to insanely high taxes on beer in the state.  Hey, Tennessee…what about lowering taxes as a solution, eh? 

In Tennessee, taxes levied on beer are done in several ways.  First, two taxes are levied at the wholesale level:  a $4.29 tax per barrel(collected by the State Dept of Revenue), and then a 17% tax on value(collected by local city governments where the beer is sold).  In addition, the beer is then taxed at the retail level.  A state sales tax of 7% is added, in addition to a local sales tax that can go as far as an added 2.75%.  These sales taxes are levied on retail price which includes the barrellage tax and the wholesale tax, which means that the tax is a tax on taxes…get it?  Further past that, an $18 per barrel federal tax is applied. 

Convoluted, eh?  Welcome to bureaucracy.

So, all of this brings up an interesting discussion, and one that is exacerbated by the lack of knowledge by the legislators about how beer works in this country.

The most pressing issue is this: comparing the cigarette distribution trade with the beer distribution trade is not equal comparison - akin to apples and oranges.

The biggest example of this has to do with craft beer varieties and manufacturers.  In Tennessee, because of the ridiculous taxes, we don’t get much craft beer.  Sure, we’re getting more and more, but compared with other states around us, our selection is pretty pitiful. This is fundamentally different that the cigarette trade where almost all manufacturers are sold in every state - a much more homogeneous distribution network nationally.

So, what do we do?  We go up to Kentucky, over to South Carolina, down to Georgia, etc… to get the beer we can’t get here.  Nothing, I repeat, NOTHING, to do with taxes.  This begs the question, how will the state deal with this difference?

If I drive to Bowling Green, KY to buy some beer that isn’t distributed in this state, and I am then arrested for bringing it back across state lines, I have indeed been arrested for a reason that doesn’t even fit with my motive for buying beer in another state.  There is zero logic for this scenario to play out, as it has nothing to do with taxes, which is purportedly the reason behind the enforcement of the law.  However, it’s going to happen this way, I promise.

So, what to do?  I suppose you could only arrest people buying beer that is also sold in the state, but then that would have to be broken down by region, city, municipality, etc…  For instance, if I live in Nashville and drive to Kentucky to buy anything made by Duck-Rabbit, should I be arrested because I can actually get it in Knoxville (which, incidentally is twice as far away)?

This is a major problem that represents a lack of Tennessee government’s ability to take cues from the marketplace and fix a broken system. 

How about this Tennessee - lower your damn taxes and stop wasting taxpayer money on enforcing laws that amount to nothing more than a 3 year old throwing a fit because they can’t get their way. Don’t treat the symptoms - cure the illness here - fix the damn system.

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Think twice before asking, AB

Posted on September 30th, 2007 in Random Thoughts by Justin

“Think about the best beer you’ve ever had…now, get ready to top it”

This was the opening line of the Budweiser commercial that I just saw while watching some football this afternoon.

Are they really wanting this challenge?

Way to spend more of that oversized marketing budget guys…

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Stone 11th Anniversary Ale

Posted on September 27th, 2007 in Tasting Notes by Justin

Stone 11th BottleHops hops hops. That describes this beer, and rightly so. The same brewers of the famous Ruination IPA and Arrogant Bastard have done it again this year with their 11th Anniversary ale. Self-titled as a “Black IPA” (or, IBA), this beer has a sweet nose loaded with citrusy, grapefruit hops that reek of West Coast. The beer sits in a snifter with a thin white head and a dark brown body. The nice medium thick mouthfeel supports a huge load of the same hops that are on the nose, with a sweet carriage underneath to pull the hops through the mouth. Starting slightly candylike on the front, the hop character fades to a heavy and widespread bitterness across the back of the mouth, lingering into a long bitter finish. Some faded dark fruit notes are present as well, but play second fiddle to the hops. Some resiny characteristics also run through the middle of the beer and tend to show up around mid-glass.

Overall, this is a pretty nice beer. Not terribly complex, but a solid beer that I’d classify as a super hopped up IPA (not quite into IIPA world, to my palate). At 8.7% abv and god-knows-how-many IBUs, this beer is surprisingly drinkable. Refreshing, in fact. But then, I love hops, so to others it could be off putting.

Generally, I’d recommend it. It’s not a far departure from their Arrogant Bastard archetype (although, I’ve not had AB in awhile), but still solid. Get yourself a bottle and give it a go.

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Choosing the next Sam Adams seasonal

Posted on September 26th, 2007 in Random Thoughts, Tasting Notes by Justin

Last night, we attended a Sam Adams tasting and voting event here in Nashville.  Pretty cool stuff.  I was all prepped to do some live blogging from the event, but I don’t have my new phone, nor the blog set up for it yet…coming soon tho, live blogging!

Overall, the event was a bunch of fun.  I was duly impressed with the rep from Sam Adams, and his ability to explain beer correctly to the audience.  Too often, people leading beer tastings (many time someone who just works at the distributor) don’t know anything about beer.  This guy knew his stuff.

We were able to sample the Boston Lager, Sam Adams Light, Honey Porter, Octoberfest (sic), and Brown Ale.  The Boston Lager was served to us in the new Sam Adams glass (albeit, only about 1/3 full, so the true wonder of the glass was stifled).  We’ve tried the new glass before, and I’ve got to say - we’re pretty impressed.  Awhile back (about a year ago), we did a tasting comparing the Sam Adams glass with a standard pint glass.  The Sam Adams glass was much better, especially in the aroma department.  We were able to keep the glasses that we used during the event, so it’s nice to have a couple on board now at the house.

The other beers were as expected, and were typical for Sam Adams.  However, the cool part was when we were able to vote on the next seasonal.

Two beers are up for the spot:  an Irish Red and a Dunkelweizen.  I was enamoured with the idea of Sam doing a Dunkelweizen, so I was probably biased toward that particular beer, but nonetheless, we gave both an equal shake.

Both beers looked beautiful.  Aroma on both was fairly weak, with the Dunkel having a slightly better presence in this area with notes of banana, phenols, and light spiciness.  The body on both of the beers was average, with the Dunkel again coming out slightly ahead. 

Taste was where the rubber met the road.  The Irish Red tasted thin with very little malt depth and complexity and that signature Sam Adams bittering profile.  I thought the hop choice was a bit strange.  The Dunkel had a better profile, with the same notes as the nose plus a nice fruity background and a lingering fruity finish.

Overall, the Dunkel was clearly the winner.  That said, however, the Irish Red is currently winning the contest, which is unfortunate.  The group in attendance last night overwhelmingly chose the Dunkel, however, we seem to be at odds with the rest of the country. 

We’ll see which wins.  Natually, I hope the Dunkel does, but whatever.  Still, it’s a pretty cool way to get the consumers involved, and not a bad marketing plan either.  No doubt, there will be quite a bit of this seasonal bought when it finally turns up in stores.

The night was fun.  We met some cool folks, drank some good beer, and had a great time.  I won a Sam Adams hat, while Mollie was able to snag a set of 4 acyrllic pint glasses (not sure why they’re plastic, but they’re good for the pool or something of that sort).  If this contest happens to swing through your city, make sure to check it out.

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SMS Post

Posted on September 25th, 2007 in Uncategorized by Justin

Test sms message

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Men’s Journal Top 25 beers

Posted on September 21st, 2007 in Beer News by Justin

Yet another list of great beers.  The October issue of Men’s Journal is listing the top 25 beers of the world in five distinct styles:  Pale Ales, Stouts, Belgians, Wheat Beers and Lagers/Pilsners.  Despite the fact that I find these categories somewhat arbitrary, the list isn’t all that bad. 

Check it out, and see what you think.

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Boscos Brewery - Nashville, TN

Posted on September 19th, 2007 in Our Podcast - Davis On Draft by Justin

Sorry (again) for the lack of posts. It’s been a busy week and as long as I have a regular day job on top of the beer writing gig…it’s a tight fit.

That said, I wanted to point out our episode of Davis on Draft this week. We traveled up to Nashville (just about 10 miles, but hey) and sat at Boscos brewery to do this week’s show. We interviewed Fred Scheer, head brewer up there, and talked about his beer, the craft beer industry, microbreweries, beer news, and much much more. Definitely check it out!

Here are some photos from the show. In the photos with all three of us, Fred is on the far left, I’m in the middle and Mollie (my wife and co-host) is on the far right. Enjoy, and listen to the show while you check out the pics!

Davis on Draft - Live at Boscos

Davis on Draft - Live at Boscos

Fred Scheer - Boscos

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I didn’t have anything to do with this, I promise

Posted on September 12th, 2007 in Beer News by Justin

This afternoon in Nashville, a tractor-trailer carrying cases of Bud Light overturned on I-65.  Local residents are complaining that this could jeopardize the quality of their water supplies and pose threats to local wildlife.  In a related story, sales of straws were up 400% in local convenience stores following the accident.

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Clientele at tastings - does it make sense?

Posted on September 12th, 2007 in Random Thoughts, Rants by Justin

I feel like this blog is becoming one giant rant.  Sorry about that.  I’ll try to curb my future tirades and present more information here that is actually useful…not simply me spouting off :)

But, until that time, here’s another interesting discussion I’d like to begin, and would really love some input from others out there in the beer community.

I’ve noticed an interesting trend in tastings (be it beer, wine, liquor, whatever) - they attract the wrong crowd. 

Well, at least, sometimes.

Case in point:  Last night, we attended a tasting at a local beer/cigar shop here in Nashville.  Aside from the fact that there was zero glassware (see the previous rant on this blog), I was excited to try some new beer, learn about the brewery, and engage in beer conversation with like-minded individuals.

I realized, about halfway through the tasting, that the conversation I was interested in wasn’t really going to happen.  Why?  Wrong crowd.  Completely.

I’ve noticed this at other events.  For example, earlier this summer, Nashville played host to a very large beer tasting event called the Music City Brewer’s Festival.  We were lucky enough to have a booth at the event and represent the craft beer industry and our charge to educate more people about craft beer.  I noticed, however, that the vast majority of the people in attendance didn’t care about learning about or tasting craft beer - they simply wanted to get drunk.

Now, I realize that drinking large amounts of alcohol could potentially hamper your ability to think logically…but come on…this doesn’t make any sense at all.

Let’s look at the logic.  If someone’s goal is simply to drink as much as possible in order to get drunk, then they’re firstly not interested in taste.  For them, it’s alcohol delivery that is key.  So, to be as efficient as possible, they ought to either drink liquor or drink cheap mass market beer.  Remember, for the vast majority of these folks, getting drunk for cheap represents the epitome of the mission. 

So, this is where the math starts to break down.  The average 12-pack of swill costs somewhere in the neighborhood of $10-$12.  This provides the user with 12 cans of easily drinkable (I realize that this characterization is a sliding scale, but go with me here) alcohol water in 12 oz doses.  Generally speaking, the drinker (depending on their level of “experience”) will achieve their goal before finishing this 12-pack of beer, giving them an estimated drunk/dollar ratio of 1 dU (drunk unit) to approx. $10.

Why then, do these people choose to attend a festival with tickets that start at $30 and result in the same output of 1 dU?  The cost analysis here is mind-boggling.

Seriously though, I don’t understand it.  How does one organize a tasting and attract the correct clientèle?  Attracting the wrong crowd can undoubtedly ruin the experience for those interested in pursuing an educational opportunity.  One thought is to simply price the event out of reach of those simply interested in drinking, not tasting.  However, this seems to unfairly punish those who are interested in tasting by putting the burden on them.  Smart marketing could achieve the goal, but how clever would you need to be?

Has anyone had a good experience in setting up tastings at reasonable prices while attracting the correct group of customers?  Or are we simply relegated to always having to deal with the drunks?  Should we start setting up events called “drinkings” instead of “tastings” and see if the public starts to discern the difference?

I’d love to hear your thoughts and experiences on this.  I don’t want to come off as a “tasting snob”.  Certainly there are times where I simply just drink beer.  But I want to preserve the opportunities for tasting beer as well.

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