Australian Beverage Industry Digest No. 112

 

ALCOHOL POLICY

No glasses? The SA Government is considering banning the use of glasses in pubs and clubs from 4am to 7am to prevent attacks in licensed premises in which glasses are used as weapons. The mandatory use of polycarbonate containers is recommended as part of the ‘4am – 7am’ code. Similar legislation, introduced in NSW in 2008, has been effective and the SA move has support in principle of SA Police and AHA (SA). [From Adelaide Advertiser, May 5, 2012]

Special licences Some convenience stores in Adelaide are selling foreign beers and wines under the conditions of Special Circumstances Licences, granted in February 2012. This situation follows submissions made by the Australasian Association of Convenience Stores to the Productivity Commission enquiry into the retail industry last year. The licences have restrictions e.g. ‘no liquor other than that made in Korea, Japan, Singapore and China is to be available for display or sale’ and ‘products for sale are not commercially available in licensed premises that sell carry-off liquor.’ [From Adelaide Advertiser, Apr 26, 2012]

Young women targeted A panel of the Alcohol Beverages Advertising Code – the industry’s self-regulation scheme – has upheld complaints about Skinnygirl Cocktails, declaring that the new products are targeted directly at young girls. However, maker Beam Global Australia says that at $25 per 750mL bottle, they ‘are premium expensive products aimed at affluent 30+ women’. [From Adelaide Advertiser, Apr 28, 2012]

BEER & BREWING: Australia – general

Another new barley variety Navigator barley, bred at SA’s Waite Institute and now fully accredited, is targeted for domestic malting and brewing, with potential for export use. Accreditation followed extensive malting tests and trials around Australia and brewing trials through Pilot Brewing Australia, under the Australian barley industry’s Malting and Brewing Industry Barley Technical Committee (MBIBTC).
Seeds for Bass (a newly accredited WA variety – see last Digest) and Navigator will be available for planting in this coming season. [From E-Malt.oom Flash 17a, Apr 25, 2012]

Beer’s image Beam Global Australia has revealed it will expand distribution of its Canadian Club draught product to around 150 venues, supported by a $5m marketing campaign, in a bid to cash in on drooping beer sales. [From The Shout, May 5, 2012].

In discussing this campaign and alarmed by the declining image of mainstream beer, Australian Brews News makes some very apt points:

‘You are going to see a lot of media over the next few days about John Cleese, Canadian Club and beer fairies. It’s the latest stage in a very large campaign by the drinks maker Beam to position Canadian Club as the alternative to beer. It says something fairly powerful about the plummeting perception of mainstream beer that an RTD can position itself as the elegant face of modern drinking instead of beer; that a whisky owned by Jim Beam that bills itself as the “‘unofficial’ Whisky of Prohibition”, “rumoured to be Al Capone’s favourite” can successfully pitch itself as the preferred choice over the traditional ‘beverage of moderation’. [From Australian Brews News, May 6, 2012]

The AIBA World of Beer showcase at Fed Square Atrium on May 18 will give drinkers a chance to sample some of the best beers entered in this year’s competition, less than 24 hours after the medals have been awarded. The US Brewers Association will host a stall for its Export Development Program, at which it will showcase some beers never seen before in Australia and some international brewers will be on hand to talk beer, all for $45 at the door. {From The Crafty Pint, Apr 27& Australian Brews News, May 1, 2012]

BEER & BREWING: Australia – mainstream breweries

Coopers: The recent purchase of USA’s largest home brew brand, Mr Beer, will consolidate Coopers at the head of the home brew market worldwide. Mr Beer, based in Tucson AZ, distributes home brew starter kits, concentrates and accessories to more than 14,000 stores across America, as well as to consumers directly via strong on-line sales. Coopers is already the world’s largest producer of home brew concentrates and has its own range of DIY beer kits and accessories which it distributes to more than 20 countries. The acquisition of Mr Beer means Coopers is now also the largest home brew beer supplier in the USA. [From Australian Brews News Apr 24, 2012]

May is Coopers 150th ‘birthday’ month, commemorating founder Thomas Cooper’s first commercial brew in 1862 … a series of celebratory events has been arranged and the market is eagerly awaiting the release of the promised ‘celebration ale’.

In the meantime, both trade and general media are hinting that Coopers is finalizing a deal to brew and distribute Carlsberg in Australia … but as yet no statement has been made. Foster’s confirmed on April 29 that it ‘would cease its relationship with Carlsberg from July’ and Cooper’s MD Tim Cooper indicated that the company was in discussion with a number of parties about potential distribution agreements. [From Adelaide Advertiser, May1; E-Malt.com Flash 18a, Apr 30, 2012 & other sources]

Lion: Swan Brewery Co landed a free spot for one of its beers in the 2013 International Brewing Awards competition, to be held in Burton-upon-Trent UK, next February. Swan was given the honour after winning a prize draw held by the event’s organisers, Brewing Technology Services, at the IBD Asia Pacific Convention in Melbourne in March. [From Beer & Brewer E- Newsletter, Apr26, 2012]

Apparently, Lion, the new distributor of Corona, will not be distributing sister brands Negra Modelo and Pacifico, previously handled by Foster’s and now, temporarily at least, in limbo. Gossip suggests that the brands have been linked with distributor Premium Beverages (owned by Coopers), but … [From The Shout, Apr 26, 2012]

BEER & BREWING: Australia – craft & smaller breweries

General An increasing number of events – large and not so large – now arranged for craft brewers makes it very difficult to keep ‘on top of the scene’ … here are some:

In SA, as part of Tasting Australia in Adelaide in April, a Learn from the Masters Program was conducted by Chuck Hahn, described as ‘the godfather’ of craft brewing this country. He said that ‘our drinkers have moved up a notch … we are developing a beer culture rather than beer just being the culture’. [From Adelaide Advertiser, Apr 27, 2012] The Wheatsheaf Hotel has its Good Beer Wheaty Program set for May 12 -15 with some well-known Aussie and NZ brewers hosting sessions and some new beers will be launched … the final session has the title: Contract Brewers of the World Unite’ – intriguing! [From Australian Brews News, Apr 24, 2012]

In Melbourne, the Great Australasian Beer Spectapular, on May 11-13 at the Royal Exhibition Building, will present 60 specially brewed original beers (not previously available) from Australian and New Zealand craft brewers.

Beer cocktail competition Black Pearl bar in Melbourne will team up with local breweries and spirit brands to host a beer cocktail workshop and competition on May 15 as part of Good Beer Week. [From The Shout, Apr 23, 2012]

Paddy’s Brewery Hop Harvest Beer Festival in Sydney in April enabled enthusiasts to sample beers from The Australian Brewery, Black Duck, Ekim, Happy Goblin, Hopdog BeerWorks, Illawarra Brewing, Lord Nelson, Mudgee Brewing, Red Oak, Rocks Brewing, 4 Pines and host brewers Paddy’s. With each brewery pouring one or two styles, the overall range of beers on offer included lagers, pale ales, porters, stouts and IPAs. {From The Crafty Pint, Apr 27, 2012]

Two associations The differences between the two bodies launched in Australia in the last twelve months – Craft Beer Ltd and the Australian Real Craft Brewers Association – to cater for the needs of craft brewers were highlighted on television in a recent segment on the Country Wide program. In general, the scene in NSW was featured and included interviews with industry identities including Brad Rogers, Chuck Hahn, David Hollyoak. Brad emphasised the negative impacts of two associations, stating that he hoped the differences would be resolved but David indicated that a merger of the two was unlikely. [From ABC Ch 2 Country Wide, Apr 29, 2012]

NSW: New beer Jasper Ale, the third beer in Stone & Wood Brewing Co’s permanent range and promoted for winter drinking, is now available on limited distribution in the eastern states. [From The Shout, Apr 27, 2012]

On the Central Coast, the people behind Six String Brewing are facing opposition from local residents to their Development Application, leading to a town meeting arranged by Gosford City Council …it seems that, in general, the poor public image of beer will lead to objections such as this which continue to plague new craft beer ventures. [From Australian Brews News May 2, 2012]

SA: Clare Valley Brewing Co (see reference in Digest 111) plans to begin brewing at Jeanneret Wines winery at Sevenhill but will seek another nearby location in due course. A 3,000hL per annum decoction brewing plant is being installed and the first beers are expected by year’s end … early plans include an American-style pale ale, dark ale and possibly a stout, all brewed using local grain and water. One of the beers will be named after the Port Henry Arms – a prominent early inn in the Clare Valley. [From The Shout, Apr 20, 2012]

WA: Perth’s Generous Squire bar is up and brewing The bar, popular for serving James Squire and other Lion group beers, now has a brewhouse with the first beer Shafto’s Reward – an English-style ale at 4% abv – launched in late April. Rob Freshwater – the man behind Malt Shovel’s successful and quirky Mad Brewers’ special releases – was joined by Swan’s Justin Fox, formerly craft brewer at The Monk, to get the first brew under way in the 8hL timber-clad classic format brew plant, ex England’s Fox & Firkin brewpub chain. [From MB News 137, Apr 27, 2012]

More longnecks Gage Roads, part-owned by Woolworths, has revealed it will launch a range of its own products in 640mL ‘long-neck’ bottles, following a recent upgrade of its packaging line. [From The Shout, May 4, 2012]

BEER & BREWING: International

Germany Brewer Duff Beer UG has asked an EU court to allow it to register an EU trademark for Homer Simpson’s favourite beverage. The brewer sells ‘the legendary Duff beer’ without mentioning the Simpsons on its packaging or website. News Corp’s Twentieth Century Fox Films, which makes the long-running cartoon show ‘The Simpsons,’ has two earlier EU trademarks to the fictional beer and won an Australian court case stopping brewer SA Brewing Co selling Duff beer in 1996. [From MB News 137, Apr 27, 2012]

UK Diageo PLC, the world’s largest liquor producer, has reported that sales rose by 6% in the first three months of the year with volume up by 3%. The figures, which exclude the effects of acquisitions and currency movements, are in line with the performance in the previous six months. The company, whose brands include Guinness, Smirnoff vodka and Captain Morgan rum, says sales were up 18% in Latin America, 12% in Africa and 10% in the Asia-Pacific region and 5% in North American but there was a 1% drop in Europe. [From E-Malt.com Flash 18b, May 6, 2012]

USA Judging for the 2012 World beer Cup took place in San Diego on May 1 & 2, when more than 3,600 entries (32% from outside USA) were assessed and awards presented at a Gala Awards Dinner on May 5 during the Craft Brewers Conference. This biennial competition, inaugurated in 1996, is now often referred to as ‘The Olympics of Beer Competitions’. [From Brauwelt International, Apr 2012]

 

BEVERAGES: General

Alcohol consumption The latest figures released by the Australian Bureau of Statistics show an overall decrease in alcohol consumption, for the first time since 2002. Beer has fallen to 42% of all alcohol (down 3.4%), with wine accounting for 37% (down 0.6%); spirits and pre-mixed spirit drinks (RTDs) have increased to 20% of all alcohol sales. Fifty years ago beer provided 76% of alcohol consumed by Australians. [From Adelaide Advertiser, May 4, 2012]

Coles liquor involvement Data released by Wesfarmers Retail Operations show that, at March 31, 2012 Coles had 886 liquor outlets, comprising 93 hotels and 793 liquor stores, 629 with the Liquorland brand. [From Wesfarmers press release April 24, 2012]

CIDER, JUICES, RTDs & SOFT DRINKS

Caffeine – natural or synthetic? European researchers have developed a fast and a simple method to determine if caffeine used in beverage formulations is derived from natural or synthetic sources. Analysis of a number of products revealed that four popular beverages contained synthetic caffeine, despite carrying ‘natural’ labels. [From Chemistry in Australia, May 2012]

Tax rise feared Traditional cider makers are worried about rumours that, following the Federal Budget on May 8, their products will be taxed at a rate similar to that applied to RTDs – pre-mixed spirit and cider-based products. At present, traditional cider carries about 23¢ tax per standard drink compared with 95¢ for RTDs and makers estimate that the cost of production could double if traditional cider is taxed at the higher rate. A contra argument emphasises that the current tax arrangement gives traditional cider a significant price advantage over other alcoholic beverages of similar alcohol content. [From SA Business Journal, May 1, 2012]

 

WINE & SPIRITS

Bulk wine exports up An overall decline in Australian wine exports in the year ending March 2012 was driven by a decrease in bottled wine shipments which was only partially offset by an increase in bulk wine exports, acco0dridng to a recent Wine Australia report. China was the only major bottled wine export market which grew in value (by 36.7%) as sales decreased elsewhere: e.g. UK down 33%, USA 15%, NZ 11% & Canada 9%. [From SA Business Journal, Apr 24, 2012]

New chief for WFA Former British Petroleum and Lion Nathan executive Paul Evans will be the next CEO of the Winemakers’ Federation of Australia, succeeding Stephen Strachan on June 1. Paul’s earlier career also includes senior roles with the Defence Dept. [From Adelaide Advertiser, May 1 & The Shout, Apr 30, 2012]

Pernod Ricard/Orlando Wines Sales growth for Pernod Ricard in its African and Asian segment, which incorporates Australia and New Zealand, for the first three months of this year helped off-set a decline in sales in France … overall the company reported a 5% increase in third-quarter sales. However, Orlando Wines announced on May 2 that 85 jobs would be lost in Australia, mainly in SA, due to a falling export market and pressure imposed by a high Aussie dollar. [From Adelaide Advertise, Apr 27 & ABC radio news services May 2, 2012]

Release of Grange The 57th vintage of Penfolds Grange was released on May 3 at a RRP of $625 per bottle. The 2007 wine, from a vintage influenced by drought, is made from shiraz mainly from Barossa Valley with just under a quarter from McLaren Vale and a small parcel from Penfolds home vineyard at Magill. It is predicted to be ‘a long-term Grange’. A price war has commenced, with Woolworth’s outlets offering the vintage at $580 per bottle and Coles’ stores at $600; both groups and some other outlets have arranged tastings and other promotions. [From Adelaide Sunday Mail, Apr 29 & Adelaide Advertiser, May 3, 2012]

 

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FROM PAST DIGESTS … 5 YEARS AGO

 

VB now has a Midstrength Foster’s have released VB Midstrength Lager which has the flavour of a full-strength beer but has only 3.5% abv. The product, nicknamed VB Mid, has only one standard drink per 375mL stubby or can and its launch is supported by a $3 million campaign. It joins Carlton Midstrength, XXX Gold and Swan’s Emu Draft in a growing range of mid-alcohol beers. A promotion for VB Mid in Adelaide included a recipe for VB Midstrength beer bread [From National Liquor News May 2007 & Adelaide Advertiser May 30, 2007]

 

Victoria Bitter Middies Foster’s have also introduced a ‘middy-pack’ of Victoria Bitter – 24 x 285mL bottles per carton, which retailed in Adelaide in mid-May at $26.99. [From advert Weekly Times Messenger (Adelaide), May 2, 2007]

 

Foster’s and Carlsberg agree on partnership Foster’s Group Limited (Foster’s) and Carlsberg Breweries A/S (Carlsberg) today entered into a long-term agreement for Foster’s to brew, market, sell and distribute Carlsberg’s beer brands in Australia. “We’re delighted to be building a closer relationship with Carlsberg and the brand will be a great addition to our existing international beer portfolio” said Foster’s CEO, Trevor O’Hoy. Carlsberg, the flagship brand in Carlsberg’s portfolio, is one of the most well known beer brands in the world. Australians are increasingly enjoying a taste for international premium beer brands with volume in the segment growing by 24%, making it the fastest growing segment in the beer category. The agreement is effective from 1 July 2007. [From E-malt.com.Flash 20b, May 17 – 20, 2007]

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