Australian Beverage Industry Digest No. 131

ALCOHOL POLICY

Move for warning labels – again A group of vocal anti-alcohol bodies, including National Alliance for Action Against Alcohol, Alcohol Policy Coalition, Vic Health and Victorian Cancer Council, are now demanding that confronting images be shown on both front and back labels of all alcohol products. The latest campaign, which targets beer, wine, spirits and mixers, aims to highlight public health hazards arising from risky drinking practices, not only just the dangers of drinking during pregnancy.

Vic Health considers that voluntary warning labels (introduced by some major winemakers) and the recent national Drinkwise campaigns are inadequate and argues for ‘more prominent labels with clear and visually arresting graphic information.’ It says ‘Bigger back label warnings are a must and the potential move to sizable front labels should be considered.’ [From Adelaide Sunday Mail, Feb 10, 2013]

In SA, the wine industry is vital to the state’s economy and Sunday Mail editorial comments accuse ‘extreme elements of the public health body’ of irresponsibility and conclude …’Let good sense and good science prevail and we will be able to enjoy a glass of our favourite drop in the future without being reduced to having to sip out of paper bags or cowering in the corner like drug addicts.’

Small bars As many as 20 small bars are expected to open in Adelaide’s CBD shortly, following the passing of legislation creating a new type of liquor licence. For 12 months these licences will be restricted to city venues but, if these are successful, the concept could extend to some suburbs and other regions. Although the Australian Hotels Association (AHA) – SA Branch considers that the 120-person limit for the new venues is too high, it did not lobby to stop the legislation. [From Adelaide Advertiser, Feb 20, 2013]

BEER & BREWING: Australia – general

Asahi’s status Despite speculation to the contrary, Asahi Premium Beverages has stated that there are no plans to brew Asahi in Australia, dismissing suggestions that the Japanese brewer was investigating the possibility of producing Asahi locally at the Laverton (Vic) brewery of its subsidiary, Independent Distillers. In the meantime, on February 14, Asahi Holdings (Australia) and Independent Liquor (NZ) filed papers in the Federal Court, alleging that equity firms Pacific Equity Partners and Unitas Capital had made false allegations prior to the purchase of Independent Distillers by Asahi. [From The Shout, Feb 8 & Adelaide Advertiser, Feb 15, 2013]

BEER & BREWING: Australia – mainstream breweries

CUB: An interesting statement from Peter Filipovic (Sales Director) appeared this month:

‘The announcement about VB is a testament to the refocus on quality under SABMiller. CUB has improved the brewing process across the board and, by reducing the exposure to oxygen in the process, we have been able to take the preservatives out of our brews, including VB. There’s no doubt we’re tasting a cleaner, more refreshing product because of this. Our brewers reckon they’ve finally been given back control of CUB’s beers. Our senior team has clearly demonstrated faith in their technical ability to improve the quality of our beer. There’s certainly a renewed sense of pride in the people crafting our beers.’ [From National Liquor News, Feb 2013]

Lion: International partnerships and innovation helped Lion grow its beer business in a falling market in the year to Sep 2012. The accession of Corona Extra and Stella Artois in the third quarter and innovative market strategies helped profit to rise 5% to $625 million, while the national beer market fell 5%. However, dairy product revenue fell 10% and white milk volume was down 14.5% [From Adelaide Advertiser, Feb 15, 2013]

BEER & BREWING: Australia – smaller breweries

NSW: The Woolpack Hotel in Redfern, has increased the volume of beer sold by more than 10% since devoting half its taps to craft beers, cutting back its CUB tap contract to a 50/50 arrangement in November last year. Surplus taps were then opened up to small craft breweries like Two Birds, Balmain Brewing, 4 Pines and Young Henrys. [From The Shout, Feb 6, 2013]

Hunter Beer Co has come up with another special edition brew: Banana Smoothie Beer which makes use of the ‘banana-lolly esters’ produced by Hefeweizen yeast, while the addition of honey and toasted coconut ups the smoothie-factor. Head Brewer Keith Grice says the beer, in 750mL champagne-style bottles, pours a ‘hazy straw colour topped by a rich white foam … it has a light fruity mouth-feel, you can taste the banana, toasted coconut and the honey flavour lingers after you swallow.’ [From Beer & Brewer, Feb 14, 2013]

Vic: Interesting descriptions of a number of craft breweries have appeared recently in Brewer & Distiller International, a monthly journal published by the IBD. The January issue deals with Hix, Mornington Peninsula, Red Hill & True South Breweries with Moon Dog, Mountain Goat & Temple featuring in the February issue.

In early February, Bright Brewery officially opened its new all-weather venue with a complete brewing and dining experience for the entire family, plus capacity to brew more MountainCrafted beer. The extensive expansion was opened by The Hon Martin Ferguson – Federal Minister for Resources Energy and Tourism and the project was co-funded by the Australian Government under T-QUAL Grants, a program aimed to stimulate sustainable economic growth in the Australian tourism industry. Funding is available to projects which enhance and refresh Australia’s tourism scene and breweries and cellar doors around the country are eligible to apply for funding. The 2013 process will commence soon, with submissions expected to close mid-April 2013. [From Beer & Brewer, Feb 7, 2013]

Two new brewers are 7 Cent Brewery, with its first official beer launched in mid-February and Cavalier, on the verge of releasing the first beer through their new brewhouse in Melbourne’s west. [From Crafty Pint, Feb 8, 2013]

Brewers at Thunder Road Brewing in Brunswick’s have relied on a recipe of Alfred Terry, a brewer in Melbourne in the 1860s and a pioneer of Australia’s brewing industry, to recreate a pale ale, first brewed in 1864 at Melbourne’s Carlton brewery in Bouverie Street, a forerunner of today’s CUB. [From The Age, Feb 2, 2013]

WA: Gage Roads’ newest limited edition brew, reportedly due to hit stores just before Easter, is called Abstinence – in keeping with the Lenten period of voluntary deprivation that runs for 40 days before Easter. The beer, a Belgian Dubbel Chocolate Ale, will be released in 640mL bottles. Gage Roads also reports significant increases in keg beer sales (148%) and in contract beers (91%). [From Beer & Brewer, Feb 7, 2013]

The story behind Billabong Brewing – described as two breweries in one – recently featured in the international brewing press. [From Brewer & Distiller International, Feb 2013]

BEER & BREWING: International

UK: Radler beers – Heineken has launched a new 2.0% abv Foster’s Radler with the aim of dominating a mid-strength lager category. Heineken, UK’s leading beer supplier calls it the ‘moderation’ category which could represent a ‘£300 million category growth opportunity. It is estimated that the section is about 0.5% of the lager market, but could rise to 5%. Heineken has stated that the Radler style is ‘an example of global innovation being undertaken with local brands, one that was executed in over 20 markets in 2011 -12 with the aim of making it a global initiative by the end of 2013. ’ Carlsberg also released a 2.8% abv lager blended with natural lime juice to the UK this month; Carlsberg Citrus is the first new lager from Carlsberg for several years and will be backed up by a multimillion £ advertising campaign.

Beer mixed (or ‘shandied’) with lemonade and known as Radler first appeared in Germany in the 1920s as a thirst quencher for cyclists who stopped for a rest in the mountains – Radler means cyclist in German. Radler beers are now popular in a number of European countries and are available in a range of fruit flavours other that lemon. [From E-Malt.comFlash 06b & 07a, Feb 10 & 18 & Brauwelt International Newsletter Feb15, 2013]

[Lion’s Bare Cove Radler, brewed by SA Brewing at 4.2% abv and originally known as Barefoot Radler, was released a few years ago but seemingly has not made a significant impression on the local market. In the early 1970s, SA Brewing enjoyed brief success with West End Shandy, a 1.0% abv product in 375mL cans. Being non-excisable, it was sold in delicatessens and similar non-licensed outlets but its availability at or near some schools probably led to adverse publicity and the eventual demise of the product. Beer shandies – with lemonade – have, of course, been served in Aussie bars for generations.]

BEVERAGES: General

CCA’s plans 2013 will be a big year for Coca-Cola Amatil, ‘building on the back of the great success we have had with our Jim Beam portfolio, particularly the launch of the Devils Cut RTD portfolio and the incredible growth of the Canadian Club range …of course, in December we will be back in beer in Australia with the Australian Beer Co’s products from the state-of-the-art brewery in Griffith NSW’, said John Murphy, MD – Australian Beverages. [From National Liquor News, Feb 2013]

Role of diet mixer drinks An individual’s breath alcohol concentration (BrAC) after intake of alcohol is influenced by several factors, including food. It is well known that food delays the stomach emptying, thus reducing BrAC but only recently has the role of non-alcoholic drink mixers used with alcohol been explored as a factor influencing BrAC. A new comparison of BrACs of alcohol consumed with an artificial sweetener versus alcohol consumed with a sugared beverage has found that mixing alcohol with a diet soft drink can result in a higher BrAC. [From Science Daily, Feb 5, 2013]

Top Shelf 2014: A new show, aimed at trade professionals and discerning consumers, known as Top Shelf, is scheduled for February next year. Located at the Melbourne Showgrounds and held on February 23 & 24, 2014, it will bring together beverage industry suppliers to showcase a range of premium spirits, craft beers and ciders, fine wines, quality soft drinks and bar accessories available in the market. The show will be supported by leading industry publications Bars & Clubs, Australian Hotelier, National Liquor News and The Shout. [From The Shout, Feb 8, 2013]

CIDER, JUICES, RTDs & SOFT DRINKS

Changing consumer tastes Reporting results for calendar 2012, Coca-Cola Amatil says that ‘low and no-sugar beverages continue to be a high-growth path of the portfolio, growing at three times the rate of sugar beverages … more than 250 low and no-sugar stock-keeping units represent over a third of total volume.’ Coke Zero grew by 12% in 2012 and Mt Franklin water products by 50%. After tax profit for the year was down about 22% to $460 million, due mainly to write-downs on assets and goodwill of the SPC Ardmona fruit business. [From Adelaide Advertiser, Feb 20, 2013]

WINE & SPIRITS

Missing wine On February 15 NSW police started investigating the loss of over 60,000 bottles of SA wine, en route by road to markets in the eastern states from 12 McLaren Vale/Langhorne Creek winemakers. The trucks of the carrier involved (a company in receivership) arrived empty at the NSW depot. [From ABC radio news services, Feb 15, 2013 …. no other references encountered – where is the wine?]

Wine industry review The Wolf Blass Foundation is helping to fund a comprehensive review of issues facing Australia’s wine industry, with completion expected within six months. Legendary winemaker Wolf Blass has warned that Australia will be left behind unless strong marketing support – with financial assistance from governments – is not made available to the sector. The review is aimed at increasing profitability and ensuring that decision-making was based on evidence, according to the Winemakers Federation of Australia (WFA); it will also investigate demand in key markets and reconcile domestic supply against projected demand. [From Adelaide Advertiser, Feb 15, 2013]

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FROM PAST DIGESTS … 5 YEARS AGO

Forecast revision at Lion Nathan Lion Nathan has revised its profit forecast after recalculating the costs associated with the recent acquisition of Boag’s. Although it had enjoyed a good Christmas trading period, increased costs in absorbing the Launceston company had forced a drop in profit guidance from A$275 to $265 million. Reaction form the market was positive with the stock lifting by 2% to close at a recent high of $9.99. Revenue growth in the December quarter was strongest in LN’s power brands – Tooheys Extra Dry, XXX Gold & Hahn Super Dry and premium international brands Becks & Heineken. Nevertheless, total beer volumes for the quarter were down 1% on the previous year with tap beer sales being hardest hit. LN’s wine brands all performed well. [From Adelaide Advertiser Feb 15, 2008]

Lobbying Canberra Australia’s burgeoning craft brewing industry is hopeful that the new Federal Labor Government will give active consideration to reducing the excise payable by small brewers, thus providing assistance similar to that long given to the nation’s small winemakers. New journal Beer & Brewer Australia & New Zealand (B & B) rightly points out that, in the wake of the Kevin07 movement that swept PM Kevin Rudd to power, small brewers need to pull together as one and the journal urges its readers to assist by petitioning the government. Perhaps, this time the pleas of the small brewery sector will be heard! [From Beer & Brewer Australia & New Zealand, Summer 2008]

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