Australian Beverage Industry Digest No. 116

ALCOHOL POLICY

Benefits ban on alcohol As part of a pilot study, some struggling welfare=dependent households in selected suburbs in five Aussie cities will be banned from spending their welfare benefits on alcohol, cigarettes or gambling. In SA, the program applies to about 1,000 households in Adelaide’s north (Playford local government area). Under the program, households will be given BasicsCards, which can be used via EFTPOS machines at selected shops and businesses across the regions and states concerned; purchase of non-essentials such as pornography and alcohol, including home-brew packs by these cards, will not be possible. [From Adelaide Advertiser, June 28, 2012]

Liquor sponsorship In a move by the Federal Government designed to combat binge drinking, 12 Aussie sporting organizations have agreed to shun alcohol sponsorship in future and instead will accept direct federal funding, said to be derived from additional funds from taxation of alcopops. The bodies concerned include Swimming Australia, the Football Federation of Australia (FFA) and Netball Australia but not other major football bodies AFL and NRL nor Cricket Australia. The Government has indicated that the funding was offered only as an alternative and did not signal a total ban on alcohol sponsorship for sporting clubs. In SA, Coopers are major sponsors of Adelaide United, the only team within the FFA enjoying alcohol sponsorship. The move is thus a significant blow to both the soccer club and Coopers but the ban does not extend to pouring rights and service of alcohol at stadia and events. [From Adelaide Advertiser, Jun 23 & Sunday Mail, Jun 24, 2012]

More pubs for ALH Corporate regulator ACCC has given Australian Leisure and Hospitality Group the green light to settle its purchase of 28 NSW pubs, and the Woolworths-owned company is now in talks with the regulator about competition concerns it has raised in relation to five bottle-shops. [From The Shout, Jun 29, 2012]

BEER & BREWING: Australia – general

Anniversary ales The recent release of Thomas Cooper’s Selection Celebration Ale for the 150th anniversary of Coopers prompted Beer & Brewer magazine to list some earlier beers brewed to mark special occasions – how many of the following do readers recall seeing or tasting?

  • Courage 19th Anniversary Brew (1978): only 2,500 x 1.5L magnums produced in final year before Courage was acquired by Tooth & Co.
  • Reschs Waverley Brewery final brew (1983): 375mL can for employee distribution only.
  • 100th Anniversary Abbotsford Sparkling Ale (2004): 750mL foil top bottle – limited to employees only to mark 100 years of brewing at Bent Street, Abbotsford.
  • Powers Platinum 20th Anniversary Brew (2008). 375mL can for employees only to mark founding of Yatala brewery by Bernard Power.
  • Ten Twenty Commemorative Ale – Malt Shovel Brewery (2009): 640mL bottle – strong ale to mark anniversaries of 20 years for Hahn Brewing Co and 10 years for Malt Shovel. [From Beer & Brewer Aust & NZ #21, Winter 2012].

Marketing & media A thoughtful editorial comment in a recent Australian Brews News makes interesting reading …

One of the amazing aspects of the craft beer scene is the access you have with brewers, whether that is as simple as a chat in your local pub, at the brewery bar, or through social media like Twitter or Facebook. This personal connection with the people making the beer is invaluable to the breweries, firstly for the customer feedback it gives them. (And, let’s face it; drinkers in pubs are not backward with comments if they think there is something wrong with the beer.) But the benefit of the personal connection that is possible is the loyalty it builds with the customer. When you have met the brewer, his dad and his dog, how heartless would you be not to buy their latest beer when you see it on the shelves? The big brewers would kill for this type of loyalty. Sure they have some loyalty built through history, but this is quickly dying. They will try to build loyalty with reward points, loyalty cards and giving weekends away on their very own island/ski chalet but this will cost millions and will not be as effective as simply sitting down and having a conversation with the beer drinker.

The media and marketing worlds are playing into the hands of the small brewer. There is a sizeable and growing niche in the people who are rejecting mainstream media the same way that they are rejecting mass produced, generic and impersonal products.

A wise man once explained marketing to me as the story of the mountaintop and the village. The big brewers are still standing on the mountaintop above the village, shouting. Whilst the craft brewers are in the village whispering to their friends. I know who I will be listening to. [From Australian Brews News, Jun 22, 2012]

BEER & BREWING: Australia – mainstream breweries

Casella Family Brewers The Casella family, already noted for one of the world’s most powerful wine brands, Yellow Tail, is taking on Australian brewing, promising another no-fuss drinking style – and the first beers off the line are Arvo Premium Lager in two versions: Brew 34 and Brew 51 for which the brewer is seeking consumer feedback regarding the preferred style. A medium capacity brewery has been built beside the expanding winery at Yenda, near Griffith NSW and the first of two bottling lines, rated at 35,000bph, is in place; the company also plans smaller boutique lines. MD John Casella – one of the three Casella brothers behind the wine giant – dreams of taking 5% of the local beer market. With his track record in wine, no one is challenging this ambition. [From E-Malt.comFlash 261, Jun 27, 2010 & other sources}

[A personal assessment suggests that the beers differ sufficiently to merit such a marketing campaign and I am interested to note that both could be said to fall comfortably into the generally accepted Aussie mainstream lager style – not surprising in view of Casella’s statement that the aim is to take on the’ big boys’. Ed.]

Coopers

  • A correction: Digest 115 noted that an employee at the brewery has been charged with sexual harassment – in fact, the person concerned is an ex-employee.
  • A Black Caviar connection: Peter Moody, trainer of our wonder Aussie mare, is a fan of Coopers Clear and the brewer made sure that there were adequate supplies available in the UK for Peter and the mare’s connections … however, on Sunday June 24 radio reports of the ‘after-party’ seemed to concentrate on other ‘bubbly’ beverages. There were also rumours that a Cooper beer had been added to Black Caviar’s feed in the UK. [From Adelaide Advertiser, Jun 22 & 27, 2012 & other sources]
  • The 2012 Cooper Vintage Ale will be launched on July 6 with Coopers Ale House (at The Earl, Adelaide) hosting a special lunch. [From Adelaide Advertiser, Jun 27, 2012]
  • In a candid interview at 150th birthday celebrations at Sydney’s Lord Nelson Hotel, chairman Glenn Cooper indicated that Coopers is more committed than ever to maintaining its independence as a family-owned company. Referring to gossip about interest from Coca-Cola Amatil (CCA), Glenn said ‘They [CCA] would like to enter into discussions with us, no question, because if you look at what is left over when they come back into beer, I think they are going to have a very tough run finding brands. MD Tim Cooper said the company had made its position quite clear … ‘We’ve been saying no, we’re absolutely not having any discussions with CCA’.
  • Vintage Ale 2012 This year’s brew comes in 355mL bottles and is notable for its multiple hop varieties. Coopers MD Tim Cooper said ‘We have used no less than five different hop cultivars to achieve a full-flavoured, aromatic beer, with a fusion of tropical fruity esters and citrus characters. German varieties, Perle and Magnum, provide the bitterness of Vintage Ale 2012, while Nelson Sauvin from New Zealand helps to impart a distinctive fruitiness. US varieties, Centennial and Cascade, provide the delicate citrusy and grapefruit notes. The combination of these varieties blend together during fermentation in both aroma and flavour to become the feature of this year’s Vintage Ale’. Alcohol content remains at 7.5% abv. [From Australian Brews News, Jul 6, 2012]
  • Big job for Casella Meanwhile, Glenn Cooper thinks ambitious newcomer to the beer category, Casella Wines, will have its work cut out. ‘There’s a big difference between having a capacity of that size and actually selling at that size’, he said. ‘If they want to take on SABMiller and Lion… there’s a trail of deaths behind, I can tell you’. Tim Cooper also expressed concern saying ‘…if Casella struggles to get traction with its Arvo brand, the winemaker may end up using its huge brewing capacity to supply private label brands to the supermarkets…if they find it difficult to get their brands established they may then end up just supplying Coles and Woolworths, which is regrettable’, he said. [From The Shout, Jul 02, 2012]

BEER & BREWING: Australia – craft & smaller breweries

Wise words for all brewers and retailers must be aware that craft beers can taste very different by the time they make it from the brewery to the bottle shop. At a recent conference brewing science lecturer Hugh Dunn said brewers need to look at their beers ‘not just fresh out of the brewery, but also out in the trade. If you are selling bottled beer, have someone in the market you’re in buy a sample, taste it and keep an eye on how your product’s surviving out in the marketplace,” he said. Little Creatures founder Howard Cearns said taste testing is critical, regardless of whether specifications would have brewers believe that their beer is consistent. ‘Always taste, taste, taste, regardless of what the numbers say. We are working with fresh ingredients. The recipe might be the same every time but it doesn’t mean it’s going to taste the same. Listen to what people are saying about your beer and about the variations that are going to happen over time. If you get your product wrong, your days are numbered,’ he said. [From The Shout, Jun 25, 2012]

Festivals & Awards

NSW: Some of Australia’s leading craft breweries have signed up for the inaugural Trainworks Winter Beer Festival, to be held in Thirlmere on August 25. Holgate Brewhouse, Illawarra Brewing Co, James Squire, Little Creatures Brewery, Matilda Bay Brewing Co, McLaren Vale Beer Co, Mountain Goat Brewery, Murrays Craft Brewing Co, Redoak, Stone & Wood Brewing Co, 4 Pines Brewery, The Little Brewing Co, The Rocks Brewing Co & Two Birds Brewing are among the confirmed breweries that will host tastings. Festival ambassador, Beer Diva Kirrily Waldhorn said the event will also feature hearty winter food options designed to complement the beers. [From Australian Brews News, Jun 20, 2012]

SA: At the 2012 Royal Adelaide Beer Awards Goodieson Brewery from McLaren Vale was the most successful exhibitor, taking four trophies, including Champion SA Brewer and best small brewer. Coopers won three trophies in the awards which attracted entries from four states. [From radio news services Jul 7, 2012]

Vic: There will be nine taps serving all the Red Hill seasonal beers across the weekend of July 21–21. This will be the last weekend the cellar door opens for a while as the proprietors now plan to concentrate on brewing and so are closing the restaurant and cellar door. Open 12noon-6pm on both days – booking is essential. [From Australian Brews News, Jun 22, 2012]

General:

NSW: The very happy owners of Six String Brewing Co, at Erina on the Central Coast, are celebrating the approval of their DA by the local council. Over 100 positive submissions supported the application. [From Beer & Brewer, Jun 28, 2012]

Vic: It appears there is light at the end of the tunnel for 3 Ravens. With some new beers in the pipeline they hope to have positive news on the brewery’s future soon. Around 100km north there is positive news from Tooborac while further north still Bridge Road is preparing to celebrate seven years in the brewing business, marking it with an uber-hopped version of their B2 Bomber, one of the most popular limited release beers from this brewery. [From The Crafty Pint, Jun 22, 2012].

The trend towards things ginger continues this winter with the Mad Brewers (at Malt Shovel Brewery) releasing Ginger Chops at the Portland Hotel on June 25 – ‘a brew that brings the warming glow of spicy ginger, layered on an authentic beer brew boasting a full lashing of wheat and barley. This is rounded out at the finish with the subtle addition of an aromatic Australian honey’. It won’t cure the common cold, but it’s sure to keep your innards warm this winter. In one scribe’s opinion it could be equally at home as a summer thirst quencher as well as being a good winter warmer. [From Australian Brews News, Jun 21 & Adelaide Advertiser, Jun 27, 2012]

Vic: Southern Bay has added to its increasing range, releasing two new beers, a pale lager called Requiem Uber Pale Pilsner and a seasonal porter, Metal Head Robust Porter. These beers are the first to be brewed under the direction of head brewer Steve “Hendo” Henderson, formerly of Otway Estate (Prickly Moses). He says the lager is ‘very hop forward, subtle on the malt… kind of like the lager you would make if you were to make an American pale ale’. The hops used are Perle, Amarillo, Northern Brewer, Pacifica and Southern Hallertau; it is dry hopped, giving it a huge tropical fruit-punch aroma while also having a rounded but still fruity finish. The pitch black 6% robust porter has a big dry-cocoa aroma and a dark chocolate and burnt toffee finish. These beers are a statement of intent by Southern Bay, who hopes to continue to push the 24 year old brewery to its limits; a new brewery being built on the site will help the operation more nimble and efficient. [From Australian Brews News, Jun 25, 2012]

WA: The arrangement between Brendan Varis of Feral Brewing and John Stallwood of Nail Brewing is quite unusual from a business point of view. It’s hard to know what to call it – collaboration, joint venture – neither term captures both the way the partnership benefits both entities, as well as allowing give and take on both sides. The joint ‘entity’ goes by the name of Brewcorp, although this is purely a trading name for the excise man, and both brewers are emphatic that their own brand names will remain separate. It seems to make sense to think of it more as a timeshare arrangement. ‘John and the Nail team will come in and brew, and they’re going to leave us a nice clean brewery to work with, and we’ll give them the same privilege when we’re done’, Varis explains. The advantages and implications of the new arrangement for both breweries are enormous. For Feral, Varis is happy that his sales staff will no longer be afraid to pick up the phone. As recipient of the Champion Large Australian Brewery award at the AIB Awards, demand for Feral beers has far outstripped the capacity of their small Swan Valley brewpub. Varis says the new brewhouse will easily be able to supply the existing customer base, which alone should be enough to keep them financially stable. John Stallwood, who started with a home brew kit 18 years-ago and later brewed at Bobby Dazzlers and won best Australian Stout nine times, will have his beers – ale and stout –ready for early July in bottle and keg form and in a couple of months hopes to also have a light beer. [From MB News 145, Jun 22 & Australian Brews News, Jul 3, 2012]

BEER & BREWING: International

Mexico/USA At long last, AB-InBev announced on June 29 that it had reached agreement with Grupo Modelo’s closely-tied family shareholders which allows it to swallow the half of the leading Mexican brewer it does not already own for US$20.1 bn or 12.9 times EBITDA before disposals. The deal is logical, well-priced and cleverly structured. AB-InBev inherited a 50.4% – but non-controlling – stake in Modelo when InBev bought Anheuser-Busch for about US$52 bn in 2008. The enlarged group had hoped to mop up the rest of the Mexican brewer, but the controlling families launched arbitration proceedings, claiming that the deal broke an agreement that Modelo should be consulted over any change in control of the stake. The arbitration panel ruled in favour of AB-InBev in 2010. Through the full takeover of Grupo Modelo, AB-InBev will own four of the world’s ten major international premium brands (Corona, Budweiser, Stella Artois, and Beck’s) – a fact that will not be lost on the analysts. {From Brauwelt InternationalNews Flash , Jul 02, 2012]

BEVERAGES: General

Evolution of Sweetener Strategies Over the past few years, a new sweetener – stevia – has had a major influence in food formulating, its presence frequently playing a key role in the development of different sweetener strategies adopted by food and beverage manufacturers. As stevia evolves, more and more stevia-based ingredients are being derived through patented processes and new blends of sweeteners using stevia and taste modifiers compatible with stevia are appearing. [From IFT Conference Live, Jun 27, 2012]

Winter warmers Surveying food and beverages for cold days, Adelaide daily Murdoch press papers in late June compared shiraz, stout, hot chocolate, coffee, pasties and pies as ideal ‘winter warmers’. Not surprisingly, two Penfolds wines: Grange (2007) & Bin 128 (2010) headed the shiraz choices of five surveyed and local brews (Cooper Extra Stout & Southwark Old Stout) fared well in that category. [From Adelaide Advertiser & Sunday Mail, Jun 23 – 28, 2012}

[This scribe was recently pleased to encounter Southwark Old Stout on tap at a Glenelg hotel, when the day was cold enough to allow an adequate quality check – it is good to see that this product is still available on draught.]

CIDER, JUICES, RTDs & SOFT DRINKS

New organic range From Willunga SA, Organic & Raw has released its range of Mojo Kombucha drinks, in organic original, ginger tonic and lemon citrus flavours. Commercialized after a five year collaboration with microbiologists from SA Research & Development Institute (SARDI), kombucha production features a unique fermentation process, said to have been developed over 2,000 years ago. Health food shops and yoga shops are amongst retailers stocking the range, made in Organic & Raw’s newly expanded plant. [From SA Business Journal, Jul 3, 2012]

WINE & SPIRITS

Diageo cuts back Confirming the departure of about 20 sales and innovation staff, Diageo Australia says that a fine-tuning of business structure had produced the changes designed to enable the company to focus on ‘shaping the future of spirits and premix and at the same time to engage with customers to drive growth in our fast-growing premium and super premium brands’. [From The Shout, Jul 6, 2012]

Pinot Gris: a colourful past & a bright future Recent work at CSIRO’s Division of Plant Industry reveals that wine grape variety Pinot Gris has a range of multi-coloured personalities. Known here also as Pinot Grigio (or Rulander in Germany and Szurkebarat in Hungary), the variety is subject to relatively common bud mutation and it is suggested that it was originally derived from Pinot Noir. The extent of mutation determines the ‘redness’ or anthocyanin content of the grape skins which can exhibit grey, pink and even red tinges. It is possible to produce lemon, straw yellow, gold and bronze coloured wines by adjusting ‘on skins’ contact times during fermentation. Winemakers today tend to minimize and reduce the ‘redness’ as Pinot Gris is generally marketed as a white wine. The variety was probably introduced to Australia as far back as 1832 but it is only in the last decade or so that it has been commercially grown here. Plantings increased ten-fold from 329 ha in 2003 to 3296 ha in 2010, when a crush of 43,000 t produced about 30 million litres of wine. Thus, Pinot Gris has assumed some importance on the local scene and possibly the acceptance of yellow, bronze or pink wines from the variety is now a marketing challenge. In the meantime, the popularity of the variety in Australia has jumped in the last 12 months and it is now the fastest-growing variety in the country, with figures from the Winemakers’ Federation of Australia (WFA) indicating a 39% increase in production. [From Chemistry in Australia, Jul 2012 & Adelaide Advertiser, Jul 6, 2012]

Taylors shines At the 2012 San Francisco International Wine Competition, Taylors from Clare Valley SA won the Best of Australia category for the fourth time, also winning double gold medals for 2011 Promised Land Riesling and a gold for 2010 Taylors Estate Merlot. [From Adelaide Advertiser Jun 28, 2012]

The second Australian winemaker to adopt the innovative new Viiva screw-cap on sparkling wine, Taylors has released its first ever sparkling wine – Taylors Estate Pinot Noir Chardonnay Brut Cuvee – under the screw-cap as well as the cork closure. The new screw-cap was used first by De Bortoli Wines earlier this year and Guala Closures say that Taylors will shortly be followed by several other big wineries in adopting the closure. [From The Shout, Jul 4, 2012]

Treasury Wine Estates is focusing on lifting the profile of several of its smaller brands, including Saltram, Wynns and Coldstream Hills, according to Simon Marton, MD of the Wolf Blass brand business unit. [From The Shout, Jun 23, 2012]

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FROM PAST DIGESTS … 5 YEARS AGO

New brewery for NT A permit has been granted for the development of a micro-brewery at Coolalinga, NT in an existing 1950s rice shed on the Stuart Highway. It is planned to produce up to 30hL/week of specialty beers to be distributed to outlets around the Territory; the first beer is expected within 12 months. [from National Liquor News July 2007] … what happened to this venture? Ed

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