A-B InBev throwing their weight around

Despite its best and ongoing efforts, Budweiser parent A-B InBev knows it can't buy up ALL the craft breweries. So, the behemoth beer company has come up with a heavily anti-craft solution to turning around their declining market share (45% vs. 49% in 2008): use their massive financial resources to incentivize independent distributors to carry more of their products.

Per this Mother Jones article (and originally reported in the Wall Street Journal, but sadly it's behind a paywall), A-B InBev will "reimburse" independent beer distributors up to $1.5 million (and, per the WSJ, an average of $200,000) each if A-B InBev sales make up a certain percentages of distributors' sales. Additional requirements of this program will push larger, widely-distributed (read: more dangerous to A-B) craft breweries such as Sierra Nevada and Oskar Blues OFF THESE DISTRIBUTORS' SHELVES ALTOGETHER!

The folks at A-B InBev have seen craft beer's surge eat away at their market share for years now. A-B has now created a plan and dedicated up to $150 million over the next three years to get that market share back. And it's already working. Per the article linked, Oregon's Deschutes Brewery noted that a St. Louis distributor has dropped them in order to take advantage of the A-B reimbursements.

The Budweisers and Bud Lights of the world are the big money makers for these distributors. Ultimately, I can't blame them that much for accepting this strong-arm tactic. But I would much rather see craft beer continue to thrive and continue to chip away at the macrobrewers' market shares. I look at the explosion of high-end beer/wine/liquor stores and smaller (and largely small business) bottle shops, and would love to see them thrive at the expense of A-B InBev's tactics.

I'm pretty sure this means craft beer is winning.

The Brewers Association, a "trade association for small and independent American brewers" (from the press release below), released some very good news for the beer industry as whole.

It is no secret that breweries have sprouted up at massive rates since craft beers have penetrated more and more of the beer market. In fact, the number of United States breweries has more than doubled since 2011, and the Brewers Association announced the U.S. has reached an all-time high of 4,144 breweries, beating the previous record of 4,131 set in 1873! Breweries open at a current rate of more than 2 per day, and 15 different states have more than 100 breweries. All of this is particularly notable, considering that the beer industry bottomed out just 40 years ago, with a mere 50 breweries nationwide!

I am glad to see the craft beer boom continue, and feel that most can survive so long as the quality remains high, as so many have done.

More info: Press release from the Brewers Association.

Local news: new place in Columbia's Five Points with definite craft beer potential

I may be dabbling into local affairs a bit too much this week, but I was kind of excited by an Instagram picture I saw today.

The village of Five Points in Columbia, SC is typically seen as the collegiate night life district. It has a lot of great shopping spaces, and some great restaurants, but when the sun goes down, the students from USC take over. The result is a lot of PBR, Bud Light, and cheap liquor specials. And believe me, I can absolutely be down with cheap booze. But given the level of competition (Flying Saucer, World of Beer) in the Vista, Columbia's slightly-more-grown-up entertainment district, a few Five Points joints HAVE been making an effort to improve the Five Points beer scene. (shout-out to the Village Idiot and The Attic)

The scene may be taken to the next level with Publico Kitchen and Tap, a brand new beer joint and taqueria. Now, the picture that excited me is right here, and that is a really solid group of (mostly regional) craft beers, and a considerable number of taps for the Five Points area.

I am excited to check out Publico's beer AND food menu. The taco list is pretty crazy! Banh mi! Pad thai chicken! Tuna poke! Insane!

Best of luck to Columbia's newest restaurant! Hope you because yet another Five Points institution!

A brief congratulations to Hunter-Gatherer!

I am glad to see that a local beer institution able to expand!

As originally reported by the crew at Soda City Suds Week, the Hunter-Gatherer will be adding a new brewing facility and taproom to compliment their existing Brewery and Alehouse (and restaurant) on Main Street in Columbia. The new Hunter-Gatherer Brewery will be located at Owens Field beginning in 2016 (more info in the link below). Hunter-Gatherer, which typically features an ESB, Wheat, and Pale Ale, as well as specialty brews, will be able to expand their operation, including having a bottling line. The new Owens Field facility will also have a taproom and observation desk overlooking the Owens Field airport.

Congratulations to Hunter-Gatherer on their upcoming expansion!

H/t: Free Times

Austin 3:16 says "I finally made a beer!"

FIle this under "10-15 years too late, thought I supposed the craft beer scene hadn't really caught up at that point.

Wrestling superstar Stone Cold Steve Austin was famous back in the day for his beer-swilling, every-man, anti-hero antics against owner of the then-WWF (now-WWE) Vince McMahon, to the point that Steve would celebrate his successes by toasting beers in-ring. Today, this legendary performer in the squared circle spends his time as a tv personality/game show host and podcaster while still making the occasional WWE appearance.

Austin has now expanded his empire's reach into the craft beer scene with the long-overdue Broken Skull IPA, named in honor of his Tilden, TX ranch. He has partnered with Los Angeles' El Segundo Brewing Company to create a "bad ass beer". Steve took a "hands-on approach" to create "the ultimate IPA designed for the working man and woman who love great beer." El Segundo will be hosting a sold-out trio of Austin-hosted special events next month to celebrate the release of Broken Skull.

H/t: The Full Pint

More information here.

Dude...

I have to admit something. Lindsey Graham is one of my Senators. Now, this is not a political blog, and I have no intention of going that route.

That being said...

I mean, come on, Senator. That. Is. Awful. He even knows it, too. Look at that half-hearted smile. I'm also not sure if CNN's Dana Bash (right) is trying to sell it, or incredulously show bad it is.

Sigh. Now I'm going to have a "Lindsey Graham" tag on this site for all time.

H/t: Huffington Post's Igor Bobic

AB-InBev Can't Stop Won't Stop

AB-InBev's assimilation of craft breweries continues, bringing a 5th such entity into its ranks. Golden Road Brewing, Los Angeles' largest craft brewery, will be joining Goose Island, Elysian, and others in AB-InBev's portfolio, with the deal expected to be completed by the end of the year. Brewbound first reported on and posted the press release about the acquisition early this afternoon. Like many of these acquisitions, it spurs an opportunity for Golden Road to utilize Anheuser-Busch's "incredible distribution network to bring our beers to more people”, according to Golden Road president and co-founder Meg Gill. For AB-InBev, it serves as another strong entry in their expanding craft beer portfolio.

Not much to say about this one, really. As mentioned previously, many craft beer enthusiasts were concerned about diminishing quality when AB-InBev began these acquisitions with Goose Island in 2011. To date, there doesn't really seem to be much of an indication of quality loss. So long as that pattern continues, there should be little cause for concern about this acquisition, and even hope that Golden Road's presumably quality selections can be enjoyed by a greater number of people in an expanded distribution network.

The Lagunitas-Heineken pairing...

Last fall, I got to spend close to a month in Amsterdam, The Netherlands on a work trip. I had only a few days off during the trip, but I made the most of them, playing tourist and enjoying the sights and sounds of Amsterdam. Even more important, of course, was the food and drink of Amsterdam. Frankly, this aspect of the trip was somewhat disappointing, as most restaurants in Amsterdam are fairly American-ized. I had a few of the local delicacies, such as bitterballen, which is an oddly-textured beef croquette. The food scene probably would have gone better if I had had more time to explore the guts of the city. I expect, given such an opportunity, the beer scene would NOT go much better.

With the exception of The Beer Temple, an honest-to-goodness American craft beer bar, the Amsterdam beer scene was similarly disappointing--an endless collection of pale lagers and weak dunkel-style dark beers. The beer scene is led, of course, by a titan of Dutch industry: Heineken.

As you are probably aware, Amsterdam has been home to Heineken for well over a century. While I would never cop to being a big Heineken fan, there certainly was the Guinness-in-Ireland sort of effect--whether a result of freshness, a question of who is producing it in the U.S., a mere illusion, or some other reason--the Heineken IN Amsterdam DOES taste better--a slight hint of sweetness early on that I never recalled tasting here in the States.

Regardless, based on my time in Amsterdam, and my general experience with the Heineken brand, I never expected to see "Heineken" and "American craft beer" cross paths.

Until now.

Earlier today, Heineken announced a 50% ownership stake in California's Lagunitas Brewing Company. This seems to be a bit of surprising announcement in the craft beer world, especially from a brewery that seemed to have a fairly singular presence in the pale/light lager category of beer. But according to today's announcement, Heineken is, indeed, seeking to change their reputation, claiming "Lagunitas provides HEINEKEN with the opportunity to build a strong foothold in the dynamic Craft Brewing category on a global scale, with the category growing in popularity almost everywhere now." The agreement utilizes Heineken's distribution and production resources (some 180 breweries) to expand Lagunitas' on a global scale, a reach that will only be furthered by the 2017 opening of their 3rd brewery in Azura, California (joining existing facilities in Petaluma, CA and Chicago, IL).

In a quote to the Santa Rosa/Sonoma County, CA Press Democrat, Lagunitas owner Tony Magee says the new union "would not change the soul of the...company or diminish the quality of its beers." History seems to support that statement. While some craft beer consumers continue to bemoan macrobreweries' continued acquisitions of microbreweries--such as AB InBev's purchase of Goose Island in Chicago, among others--there is no evidence that such acquisitions result in declines in craft beer quality. In fact, the AB Inbevs of the world acquire breweries because they want to ACQUIRE THAT CRAFT BEER QUALITY! A declining product would only be a waste of their investments. Now, part of continuing that quality is making sure you retain the people, and Magee and the Lagunitas work force are apparently going to remain. Thus, while keeping an eye on things, I see little reason to expect a loss of quality from Lagunitas' impressive beer line-up.

Though, it would be nice if Heineken made sure they didn't make ads bemoaning craft beers, like our friends at Bud Light did.