Australian Beverage Industry Digest No. 133

ALCOHOL POLICY

Wine in supermarkets: The Foundation for Alcohol Research & Education has appealed to the SA Government to abandon a proposal to permit the sale of wine in supermarkets, saying that ‘the country is awash with alcohol, nowhere more so than SA and increased availability will lead to even greater harm…’ The proposal has the support of independent supermarkets but is vigorously opposed by the Independent Liquor Retailers Coalition in SA and by some members of the Australian Hotels Association. It is noted that alcohol is sold in supermarkets in many parts of the world and in Vic and ACT in Australia. [From Adelaide Advertiser, Mar 11 & 14, 2013]

BEER & BREWING: Australia – general

AIBA: The 2013 Australian International Beer Awards (AIBA) has announced a record 1,480 entries for 2013, an increase of 12% on last year. Local brewers have continued to support AIBA, with Australian entries increasing by 17% while 145 entries were received from New Zealand, a 55% increase. Entries have been received from 270 brewers in 35 countries and increases in entries are noted from key brewing regions including Brazil (40%), Japan (31%) and USA (3%). Chief Judge Brad Rogers said the increase in entries is testament to AIBA’s enhanced format and strong reputation in global brewing circles. He said ‘The AIBA is the largest and most prestigious showcase of beer and brewing excellence in the Asia Pacific region and it is great to have the support of brewers worldwide.’ The organizers have confirmed that they have commissioned a second Collaborator beer for this year’s Gala Dinner in May, to be brewed by the reigning Champion Large and Small Australian Brewers – Feral and Wig & Pen. [From Australian Brews News, Mar 19 & Crafty Pint, Mar 15, 2013]

Hops: According to Hop Products Australia (HPA), early indications of the harvest suggest it’s going to be a bumper crop, enabling increased supply of proprietary flavour hops to the international craft beer market. Already, demand is outstripping supply with the majority of the crop committed to pre-orders from Australian brewers and countries such as USA and UK. Traditionally, Australian hops have been used primarily for bittering but new varieties of flavour hops, born of HPA’s breeding program, are changing the face of the industry. Amongst the hops being harvested is Galaxy, HPA’s most internationally recognised variety, which features passionfruit and peach characters with clean citrus aromas. [From Australian Brews News, Mar 8, 2013]

Malt: It is rumoured that Australia’s largest maltster, Joe White Maltings, is being considering for sale by owner Glencore, the word’s biggest commodity player. Glencore recently acquired Joe White via its takeover of Viterra. [From E-Malt.comFlash 11b, Mar 17, 2013]

Premium beers: A recent review article suggests that the category generally known as premium beers is a mixture of several overlapping categories, usually retailing at $50 or more per case. Domestic premium lagers (Crown, James Boag’s, Cascade, Casella) are strong in the category as are the premium global brands brewed here under licence (Becks, Carlsberg, Heineken. Sapporo etc) and brands such as Corona Extra, the leader in the category. The third, and possibly most active segment of the category, includes the craft beers; the reviewer has Cooper’s products in this segment, along with James Squire, Little Creatures, Matilda Bay and many others. The cut-off of $50/case seems a little high as many of the beers listed are regularly offered at much less than this figure but there is no doubt that sales of premium products – however classified – are still rising as the trend towards premiumisation continues. In summary, the review maintains ‘Australia’s beer drinkers are more like wine drinkers these days … they’ve developed a good understanding of beer varieties, and are interested in trying local and overseas products that provide complex flavours and a broad range of tastes.’ [From National Liquor News, Mar 2013]

BEER & BREWING: Australia – mainstream breweries

Australian Beer Co (Casella): Haven’t heard much lately on this front but a press advertisements and reviews put Arvo Premium Lager 51 in the premium price range, comparable with Crown Lager, Corona Extra, Heineken, James Boag’s Premium etc. [From First Choice Liquor advert, Adelaide Advertiser, Mar 13, 2013]

Coopers: The Warradale Hotel in suburban Adelaide is releasing vertical tasting cases of Coopers Vintage Ales from 2009, 2010, 2011 and 2012. Chairman Glenn Cooper said, ‘A vertical mixed case of Coopers Vintage Ale is a very rare offer and consecutive years of the product are becoming more and more scarce. This limited edition will more than likely become a collector’s item.’ The cost is $180 per case. [From Australian Brews News, Mar 13, 2013]

CUB Victoria Pale Lager, launched with much fanfare in November 2011, has become a casualty with CUB’s renewed focus on its core Victoria Bitter product ‘Since returning Victoria Bitter back to its best, the decision was made to focus VB purely as the core brand and as a result we’ve deleted Victoria Pale Lager,’ a CUB spokeswoman said. ‘While it’s early days, we have been extremely pleased with the VB results, returning to growth for the first time in a decade and hope to continue this momentum with a huge program planned for the remainder of the year.’ [From The Shout, Mar 13, 2013]

BEER & BREWING: Australia – smaller breweries

NSW: Bellingen Brewing Co, a small but quiet achiever since 2006, had three beers in the Local Taphouse Hottest 100 beers for 2012 and with expanded plant capacity now services six outlets. [From Australian Small Brewery Update, Mar 2013]

Byron Bay Pale Lager, the labelling of which caused some angst earlier this year (as noted in Digest 130), is being retailed at a competitive $16 per 6 pack of 330mL. {From First Choice Liquor advert, Adelaide Advertiser, Mar 13, 2013]

Qld: Beard & Brau Brewery, originally established in Para Hills West (SA) in 2008, has moved its plant to Tamborine Village and expects to start brewing later in 2013 and the Fortitude Valley Co has started brewing at the former Eagle Heights Brewery at Tamborine. Beers will be produced under both Fortitude Valley and Noisy Minor labels.

Vic: Cavalier Brewing is test brewing with its new 10hL plant at Derrimut and 7 Cent Brewery has started producing at its facility at Gisborne South. [From Australian Small Brewery Update, Mar 2013]

7 Cent Brewery, a small operation at Gisborne South, has launched with three core beers with scope for special releases. The range consists of Whapping Wharf ESB, Hard Deck American IPA and B4 (aka ‘Bousa’s Big Black Belgian’) Belgian Dark Strong Ale. Each of the beers represents the favoured style and brew of one of the 7 Cent team. [From Australian Brews News, Mar 12, 2013]

At Red Hill Brewery the hop varieties grown this year were Tettnang, Willamette and Goldings; Tettnang provided the highest yield and most well formed hop cones, whilst the Willamette were generally small and loose. The public were invited to assist with the picking which occurred on the Moomba holiday week-end. Many of the hops will go into the next seasonal release, Hop Harvest Ale, an ESB to be released a month or two later than usual this year. [From Australian Brews News, Mar 13, 2013]

WA It is reported that wineries in the state’s South West believe microbreweries are ‘diluting’ the region’s brand and threatening its status as WA’s premier wine region. There are eight breweries between Busselton and Margaret River and a ninth – the Batch Brewery House will open early next year. Cullen Wines MD Vanya Cullen said it was a waste to build breweries on premium vineyard land. ‘You would not see breweries in the middle of Burgundy or Bordeaux,’ Ms Cullen said. “It’s a dilution of the wine industry, which the Margaret River region is known for internationally and it is not seen favourably.’ She hoped the wine industry would remain the major attraction to the region. But who knows, breweries might take over – there’s so many of them,’ she said. Cheeky Monkey director Brent Burton said breweries complemented wineries and did not compete with them. ‘We are probably bringing business to the region and helping the wineries,’ he said, a view shared by Geographe Bay Tourism whose chief executive Simon Taylor said breweries were helping wineries by attracting more visitors. A diverse product mix gives visitors more reasons to come to the region and encourages repeat visits. ‘The wine industry is world renowned and has certainly put the region on the map (but) we also have an exciting food scene and the emergence of craft breweries is providing another facet to this. In hospitality, everything has to change now and again to attract a wider variety of people who want a cheaper, more family friendly option,” he said. [From The West Australian, Mar 6; Crafty Pint, Mar 8, 2013 & other sources]

Cullen Wines a year or so ago opposed planning approval for Cheeky Monkey, citing the dangers of cross-infection of wine fermentations by brewery yeasts. It is hoped that this dog-in-the–manger/sour grapes attitude is not general amongst the Margaret River winemakers as a whole.

BEER & BREWING: International

Japan Ichiban Shibori Frozen Nama, the frozen beer innovation of Kirin Brewery Co is being globalized. The Japanese brewer said the brand, which uses a machine to cover the beer with an ice-cold foam head, has been well received in tests in Hawaii, Shanghai and Singapore and will be launched globally this year. Frozen Nama was launched in Japan last year. The head keeps the beer ice cold for about 30 minutes, according to reports. [From E-Malt.comFlash, 11b, Mar 17, 2013]

New Zealand The new Crafty Beggars range from Lion has been banned by a retailer for an insult to a great industry.’ In a recent Tweet, Liquorland Newmarket said that it would no longer stock Crafty Beggars brews due to the tagline causing a backlash among drinkers. The range is marketed with the following description:
Someone should make a craft beer you can actually drink. That’s the conclusion we Crafty Beggars came to. A rogue society, hidden deep within the industry, made up of nine brewers of unsurpassed skill and fanaticism, who all agreed that beer had gone in two directions – either hopelessly middle of the road, or so snobbily crafty that one overpriced sip will blow your face off in a blitzkrieg of hops and whatever else has been arbitrarily thrown in. Something had to be done.
Lion is adamant that promotion of the range is designed to be tongue-in-cheek and its there for mainstream drinkers interested in trying something new but not yet ready for some of the extreme flavour options available from the craft beer community. Lion also insists that the nine brewers mentioned are real people within the company. However, many beer lovers and commentators consider that Lion’s approach denigrates the industry, particularly the craft brewing segment. [From Beer & Brewer Mar 7, 2013 & other sources]

Sri Lanka Cargills (Ceylon) has agreed a deal with Carlton United Brewers (CUB) to brew and distribute Foster’s in Sri Lanka. The group is listed on the Colombo Stock Exchange and has interests in beverages, food and retail. [From E-Malt.comFlash 10a, Mar 7, 2013]

UK Chancellor George Osborne has scrapped the beer duty escalator that saw tax on beer rise at a rate of 2% above inflation each year, but spirit duty will continue to rise. Osborne revealed the Government would also cut beer duty by 1p from March 24 but there was no such measure for wine and spirits, which will continue on with the duty escalator as previously announced. The British Beer & Pub Association said: ‘This is absolutely brilliant news, and it will make George Osborne the toast of Britain’s pubs today. By cutting the tax on beer, he has moved to boost jobs in Britain’s pubs at a time when it is most needed’ [From E-Malt.comFlash 12a, March 20, 2013].

USA The Brewers Association (BA), the trade group which represents small and independent craft brewers, has reported that the American craft beer industry set a new record for exports in 2012. Based on results from a recent industry survey, craft beer export volume increased by 72%, compared with 2011, with a value estimated at $49.1 million. Canada is the biggest market, followed by Sweden, UK, Thailand, Japan and Australia. [From Australian Brews News, Mar 15, 2013]

BEVERAGES: General

Diageo For the six months to December 31, 2012, Diageo Australia reports that the ready-to-drink (RTD) category continued to be ‘the Achilles heel of the business’ in the 2011/12 year. In particular, declining sales for the Smirnoff Signature range were noted.

However, Diageo’s sales in Australia increased by 2% as business continued to switch to spirits. [From National Liquor News, Mar 2013]

Growth for the Big Two Trading results for Coles and Woolworths for the half year to December 31, 2012 show that both retailers enjoyed higher food and liquor sales. Woolies said that a further 11 Dan Murphy stores had been opened in the period, bringing the total to 170, with a further five expected to open by June 30 this year. Coles reported that, although growth in liquor sales was constrained by a decline in low-margin main-stream beer sales, overall growth in liquor had improved. 26 new liquor stores, including six First Choice outlets, had been opened but 15 under-performing stores were closed. [From National Liquor News, Mar 2013]

CIDER, JUICES, RTDs & SOFT DRINKS

New soft drink player A fledgling operator in soft drinks – Capi – will soon embark on a major television campaign to support its rapidly expanding distribution footprint. Founded by Pitzy Folk, a restaurateur of more than 40 years’ experience who also owns the Map Coffee business, Capi’s range of premium Australian mineral water, mixers and fruit sodas was launched nationally last year after two years of product trials and limited distribution. Capi is already in Dan Murphy’s, Thomas Dux supermarkets and close to 300 cafes and it will be available in Coles supermarkets from April 1. [From The Shout, Mar 18, 2013]

WINE & SPIRITS

Biodynamic winemaker The title of SA Rural Woman of 2013 has been awarded to Anna Hooper of Cape Jaffa Wines for ’her vision to help the wine industry become a world environmental leader.’ She plans to use her prize of $10,000 to visit New Zealand, South Africa and California to study environmentally sustainable wine production. [From Adelaide Advertiser, Mar 7, 2013]

Court case The Federal Court has commenced hearing a case brought by union body United Voice against Accolade Wines, concerning lack of notification of the closure of Accolade’s operations at Reynella SA last year, when 175 workers were made redundant. [From Adelaide Advertiser, Mar 13, 2013]

Labelling law New legislation passed by Federal Parliament defines how winemakers can describe vintage wines. Under the changes, grapes grown in the same year e.g. from September 1, 2012 to August 31, 2013, must be labelled as 2013. [From Adelaide Advertiser, Mar 14, 2013]

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FROM PAST DIGESTS … 5 YEARS AGO

Lemon aid The shandy in a bottle phenomenon continues with further promotions of Barefoot Radler, Carlton Dry Fusion and Zest Ale fusions of lime and lemon, products noted in earlier editions of the Digest. For the NSW launch of Radler, Lion Nathan invited guests for an afternoon of barefoot bowling, followed by a barbecue while Foster’s said that the release of Dry Fusion, with its addition of lime and salt, was in response to consumer demand for this Mexican-style experience. [From National Liquor News, Mar 2008]

Small breweries reach the ‘ton’ There were 101 small-scale commercial breweries operating in Australia at the close of last year, according to industry historian Brett Stubbs. VIC led the way with 27, followed by WA 25, NSW 24, SA 11, QLD 6, TAS 4, ACT 3 & 1 in Norfolk Island. Nineteen new breweries commenced in 2007, a record number of start-ups since the ‘small brewery movement’ arrived in Australia in the mid-1980s. [From Small Brewery Update – Mar 2008]

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