ALCOHOL POLICY

Minimum pricing Discussion of a policy of minimum pricing (or floor prices) for alcohol, suggested by the federal government last year as a means of controlling abuse in the Northern Territory, maybe is alive again with possible support from coalition parties. Last June the government stated it was still considering the idea. [From Adelaide Advertiser, Mar 29, 2012]

New WA campaign A government health campaign likening alcohol to tobacco and asbestos has been decried by the liquor industry as a negative shock campaign that is doomed to failure. Announced this week by WA Minister for Mental Health, the new campaign aims to alert people to the link between alcohol and cancer. The campaign states that about 125 people died in WA each year from cancer directly caused by alcohol consumption, and there is no safe level of alcohol consumption in regard to cancer risk. ‘As is highlighted in this advertisement, we know the devastating effects of tobacco and asbestos exposure and it’s time to start thinking about alcohol in the same way,” the Minister said.

But Australian Hotels Association (WA) CEO Bradley Woods said the ‘zealot-like” campaign comparing alcohol to asbestos would make people switch off in disbelief. The history of shock campaigns shows the public turns off quickly to scare tactics and rejects the negative message,’ he said. ‘We agree people should be responsible in their consumption of alcohol and be aware of how much they consume, however the campaign launched today by the WA Government, Cancer Council of WA, and Injury Control Council of WA does not send this message,’ Woods said. [From The Shout, Mar 30, 2012]

BEER & BREWING: Australia – general

AIBA anniversary Publicity for this year’s Australian International Beer Awards (AIBA) notes that it is the 20th anniversary of the globally-recognized competition … in passing, it should also be noted that the AIBA really had its genesis in 1987, when the University of Ballarat inaugurated a national beer competition – only 35 beers were entered that year. In 2012, 25 years later, the AIBA has attracted a record of 1,352 entries from 39 countries. [From Australian Brews News Apr 3, 2012 & other sources]

Brand image A perceptive summary of the brand image of mainstream beers in Australia suggests that, in general, the big brewers have promoted and perpetuated an ‘entrenched’ image that is difficult to change … and change from what some see as a ‘slob’ image is urgently needed to arrest the alarming decline in beer consumption. [From Australian Brews News, Mar 31, 2012]

[In a very long association with brewing, I have frequently wondered why beer is almost inevitably used to illustrate abuse of alcohol when it is ‘the beverage of moderation’ and, some 50 years ago, was proudly promoted by the industry as such. How and why did the industry in this country fail to maintain a better image than that prevailing today? JH.]

National Beer Day April 7 was declared National Beer Day … some discussion on national radio revealed that seemingly there is federal government support for research leading to the commercial use of ‘barley brewing’ (barley + enzymes) in Australia to reduce the carbon footprint produced by malting. [From ABC radio Apr 6, 2012]

Not just for the boys Recent research reveals that there is a largely untapped market of female beer drinkers in the country, prepared to ‘give the boys a run for their money’. Beer ads today are generally aimed firmly at male drinkers, unlike 50 – 60 years ago when both sexes were the target. The emergence of bodies such as ’Barley Angels’, an organization encouraging women to drink beer, is seen to be a positive step. [[From Brewer & Distiller International, Mar 2012 & other sources]

Taking Corona on? A new imported Latin American beer has appeared on the local market: El Loco Cerveza Especial. Brewed by CASA Isenbeck (SABMiller) at Zarate, Argentina, it is described as ‘a crisp, refreshing Latin American beer that is to be enjoyed icy cold, with or without a slice of lemon or lime’. Retailing at $39.99 per case of 24 x 355mL clear glass bottles, it could be competitive. {from press advert March 28, 2012 & other sources]

Viterra sale It is reported that Glencore International, which bought Viterra for C$6.1bn in March (subject to shareholders’ approval in May), will sell off some of Viterra’s Canadian assets but retain the Aussie malthouses (Joe White Maltings). The retained assets in Canada and Australia will still allow Glencore to cement its position as one of the world’s largest commodity suppliers. However, some rumours have emerged that some Australian assets may still be ‘up for sale’ [From E-Malt.com Flash 12a, Mar 21 & 13a, Apr 1, 2012 & IFT Newsletter Mar 21, 2012]

BEER & BREWING: Australia – mainstream breweries

Coopers Rumours suggest that Coopers are in the running for a brewing and distribution deal for Carlsberg and Kronenbourg brands in Australia …. [From The Shout, Mar 23, 2012 & other sources]

The celebration of 150 years of brewing is gaining momentum as the family company prepares to mark the day in May 1862 when Thomas Cooper produced his first commercial brew. A special commemorative ale will be released in May and a number of functions are scheduled for Adelaide and other cities to mark the occasion; an updated version of the company’s history will also be launched. Tickets to an exclusive 150th party in Adelaide are offered as competition prizes. [From Australian Brews News Mar 25, 2012 & other sources]

A good, short snapshot of Coopers – past, present and future – was published in March. Now with 4% of the Aussie market, the company prepares to grow strongly on the back of its new-found status as the biggest Australian owner brewer. [From Brewer & Distiller International, Mar 2012]

CUB (SABMiller) New owner SABMiller has already expressed surprise at the low share of the total Australian alcohol market that beer has, which the company says presents plenty of opportunities for the neglected Foster’s business … in other words. ‘Aussies will learn to drink more beer’ [From The Shout, Mar 28, 2012]

Speaking in London on March 28, new CEO Ari Mervis said that SABMiller was looking to grow the volume of Aussie beer sales by 1 to 3% and he believed that higher cost savings from the merger than originally thought were achievable. There were no plans to close any of the existing breweries but improved purchasing control and refocussed marketing would restore Foster’s sales. [From Adelaide Advertiser, Mar 29, 2012]

BEER & BREWING: Australia – craft & smaller breweries

National: Craft Beer Ltd This organization, inaugurated last year, is now operational and gaining members and support as a true industry association. It has changed its name to the Craft Beer Industry Association (CBIA), a title that better describes the body. CBIA announces with pleasure that the committee of the Victorian Association of Microbreweries Inc (VAMi) will support and subsidise it’s members to become members of CBIA and have endorsed the latter as the national body. The VAMi committee considers that CBL (now CBIA) offers the best opportunity for the industry to achieve its objectives and build on what many VAMi members have achieved over the years. [From Australian Brews News Apr 3, 2012]

Call for wider distribution Most publicans might view opening up their taps to craft beers as a risky proposition, but some of the country’s leading craft brewers argue that there’s a clear business case for it. Ben Kraus of Bridge Road Brewers (Vic) said that, while craft beer’s penetration into Australian pubs is still very limited, the venues that are doing it properly are counting the benefits. For example ‘On a quiet weeknight, where all the other pubs in town would be dead, the Wheatsheaf at Thebarton – an inner suburb of Adelaide – is a pub that people go out of their way to go to’, he said. ‘With a wide range of full-flavoured craft beers on tap, the Wheatsheaf consistently has a vibrant atmosphere with good clientele coming through – just because they’ve got a point of difference.’ There are some other outstanding examples around the country and craft brewers think more publicans should consider having a broader range of beers, rather than eight or so beers that taste very much the same, with points of difference only made evident through marketing. [From The Shout, Mar 30, 2012]

Successful seminar The craft brewing seminar on day one of the IBD Asia Pacific convention in Melbourne in March was attended by about 180 brewers – in fact, late applicants had to be turned away. The all day sessions were coordinated by Brad Rogers of Stone & Wood Brewing Co. [From Crafty Pint, Mar 30, 2012]

NSW Young Henry’s, the new brewery originally planned for Sydney’s CBD, is now almost ready to go in suburban Newtown – where it has been made much more welcome. It should begin trading within three weeks and initially beer will be sold in 2L growlers ex site with kegs distributed to various local venues. At this stage, owner Richard Adamson (formerly of Baron’s Brewing) intends to keep the operation local, but if there is interest, may expand distribution interstate and beyond. When the brewery bar is properly set up, eight beers will be available at any one time, including two hand-pumped beers. [From Australian Brews News, March 30, 2012]

SA A recent tour of the Fleurieu Peninsula region revealed that Goodieson Brewery at McLaren Vale now offers Pale Ale, Pilsner, Wheat Beer and Stout, plus a seasonal Christmas Ale (all in bottles), while nearby Ekhidna Wines has a range of micro-brewed beers, produced at its winery near Wattle Flat; apple cider and ginger beer are also brewed, along with a 50:50 blend of wheat and ginger beers.

At Willunga, McLaren Vale Beer Co’s brewery, with its impressive 35hL DME plant, is at last almost ready for operation and will initially produce keg beers only. In the meantime, MVBC’s Vale IPA is now available in bottles after a successful launch on draught.

In the Adelaide Hills, Lobethal Bierhaus now proudly displays in its restaurant a vintage bottle filler, reconditioned after recovery from the long defunct Pike’s Brewery at nearby Oakbank. Also in the Hills, Gulf Brewery’s cellar door at Hahndorf is offering a wide range of beers on tap and in bottle.

Vic The range of beers brewed by Mildura Theatre Brewery is now well established with six brands (four lagers and two ales) always available in kegs and bottles; in addition there is a range of seasonal beers. Bottled products are distributed nationally via Dan Murphy’s liquor stores. [From Brewer & Distiller International, Mar 2012]

At Geelong’s Southern Bay Brewing Co Steve Henderson is now head brewer and, with his reputation as a ‘hophead’, a new direction for the 90hL brewery is anticipated. Previously, the company was generally known for its lagers and contract brewing activities. Ben Israel has been GM of Southern Bay for eight months. [From Australian Brews News, Mar 29, 2012]

BEER & BREWING: International

China In the global beer picture, China alone accounts for 24% of sales volume, making it a bigger market that any single region, other than Asia Pacific. However, China has the lowest per capita consumption of the ten largest beer markets, reflecting lower saturation and the potential for future volume growth. The Chinese market saw strong growth between 2005 and 2010, as disposable incomes rose and price competition made beer more affordable. [From Rabobank Industry Note #299 – Jan 2012]

Coca-Cola China’s 42nd bottling plant, located in Yingkou, Liaoning has been opened; it is the largest Coca-Cola production facility in China. [From IFT Weekly Newsletter Apr 4, 2012]

Fiji Coca-Cola Amatil is in the beer business again, following its purchase of 89.6% of Foster’s former brewing assets in Fiji and moves to acquire the remaining shares from minority holders. The operation also includes a brewery in Samoa. [From Adelaide Advertiser, Mar 24, 2012 & other sources]

New Zealand DB Breweries is in hot water (should that be hot liquor?) over a series of TV ads which a feminist group says ‘have a very corrosive effect on women’s self worth’. The ads feature a group of hapless males who try to break into the Tui Brewery manned by gorgeous girls … DB is also in trouble with the wine lobby over another ad (for DB Export Dry) which suggests that Kiwi men only drink beer. [From Brewing & Distilling International, Apr 2012]

UK SABMiller recently opened a Research Brewery within the Bioenergy & Brewing Science building at the University of Nottingham. Conceived in 2008, the brewery has been established as ‘a key enabler in order to drive competitive advantage through innovation.’ By agreement with the university, 80% of available brewing time is allocated to SABMiller projects and 20% to the university for its own research projects. [From Brewing & Distilling International, Apr 2012]

USA Liquor regulations have been eased in several states – Washington, Georgia, Texas and West Virginia – as various restrictions are lifted. Sunday trading is now permitted in Georgia and the state will not own and control liquor stores after June 1 in Washington. Dry areas are dwindling in Texas and liquor stores in W Virginia can now hold tasting sessions. [From The Economist, Mar 17 – 23, 2012]

The Brewers Association has released 2011 data on USA craft brewing, showing volumes rose 13% to give a 15% lift in retail sales from 2010 to 2011. While the overall beer market experienced a 1.3% volume decrease in 2011, craft brewing saw significant growth, surpassing 5% of the total market. Paul Gatza, director, Brewers Association, said ‘It’s becoming increasingly clear that, with the variety of styles and flavours to choose from, Americans are developing a strong taste for high-quality, small-batch beer from independent brewers.’ [From E-Malt.comFlash 13a, Apr 01 & Belgian Shop Newsletter 1464, Apr 1, 2012]

MillerCoors, through its Blue Moon division, markets seasonal variety packs each year and for 2012 to date has chosen an orange peel flavoured beer for spring and Agave Blonde Ale, brewed with cactus nectar, for summer. Blue Moon’s choice for fall (autumn) will be based on voting per Facebook, following a consumer survey of three flavours offered during a tour of select cities. Seasonal beer sales, as a proportion of total craft beer sales, have shown increases of 15 – 25% in the past year, while total craft beer sales rose by 13% in 2011 in an overall declining market for beer. [From E-Malt.com Flash 14a, Apr 4, 2012]

BEVERAGES: General

Future trends The future prosperity of the global beverage industry lies in the rapidly emerging markets of Brazil, Russia, India and China. These BRIC countries, along with Argentina, Colombia, Indonesia, Mexico, Philippines, Thailand and Venezuela, will be the key to the growth of multinationals in the next decade. The latter seven markets are projected to generate a total of US$14bn in retail sales of soft drinks between 2010 and 2015. [From Rabobank Industry Note #299 – Jan 2012]

CIDER, JUICES, RTDs & SOFT DRINKS

Time to define ‘cider’ Producers and importers of traditionally made cider are suffering from the lack of any Australian legislation defining what actually constitutes cider. [From The Shout, Mar 26, 2012]

[A recent personal evaluation of about 12 ciders, chosen at random from liquor store shelves, suggests that such a move could be beneficial for consumers. Ed]

WINE & SPIRITS

Good growing season Grapegrowers across SA have enjoyed the best harvest for a decade, following an optimum growing season; ‘standout’ wines are thus expected from all regions. [From Adelaide Sunday Mail, Apr 1 & Advertiser, Apr 5, 2012]

Vineyard sales Vineyard sales in 2011 were the highest for several years but it remains a buyer’s market, according to Colliers International who consider that ‘values have bottomed out’. Recent transactions in SA include the sale of Clarendon Hills for $10m and the $28m acquisition by the Wine Group of McGuigan’s Loxton property. [From SA Business Journal, Mar 27, 2012]