Realbeer.com Beer Therapy

Brewing giant InBev has reported disappointing first-quarter earnings, a combination of lower beer sales and higher ingredients prices.

In the United States, craft beer sales leader Boston Beer’s sales continued strong but the company lost money in the first quarter because of its bottle recall.

InBev, based in Belgium, predicted the second of the year would be stronger. Beer sales fell in key market Brazil, partly due to inflation, an early Carnival holiday season and poor weather conditions. In eastern Europe, another key driver of growth last year, volumes were off 5.7%.

Cost of sales grew by almost 10%. InBev said weighted average inflation in the countries in which it operated was moving towards a 5-6% range, higher than the 4% it had foreseen.

Boston Beer, brewer of the Samuel Adams beers, had a net loss for the quarter of $3.7 million, with the estimated negative impact of the recall on net income of $8.8 million. It’s depletions from inventory increased 12%, indicating continued strong sales.

“We achieved 12% depletions growth in the first quarter over a very strong first quarter last year,” founder Jim Koch said. “We feel good about this growth and the continued overall positive craft beer category trends, even as our whole category has raised prices in the face of significant cost pressures.”

FredFest gets bigger this year, with an extraordinary charity beer auction planned in conjunction with the annual party in Portland, Ore., to celebrate the birthday of Fred Eckhardt. This year’s event includes the first-ever FredFest Online Beer Auction.

From the press release:

The auction starts at 3 p.m. PDT Friday, May 9 and begins to wrap up at 3 p.m. PDT Sunday, May 11. The auction is designed to run concurrently with FredFest 2008 — a celebration of the 82nd birthday of Fred Eckhardt, the Dean of American Beer Writers, which is taking place May 10 at Hair of the Dog Brewing Co., in Portland.

“FredFest started as a surprise 80th birthday party for Fred, but is coming back around in its third year as a fundraiser in the memory of fellow beer scribe and friend, Michael Jackson,” said FredFest co-organizer Lisa Morrison.

Each year, Eckhardt is asked to choose a charity for FredFest. This year, he chose Parkinson’s Resources of Oregon, a local affiliate of the National Parkinson Foundation. Jackson had been battling complications from Parkinson’s disease when he died last summer.

The first-ever FredFest online auction was the brainchild of Hair of the Dog owner Alan Sprints, Ben Love of Hopworks Urban Brewery and Matt Maples of Liquid Solutions bottle shop.

Here is a sampling of some of the lots up for auction:

-Hair of the Dog Dave 1994 (375 ml)
-Hair of the Dog Adam #1 1994 (12 oz.)
-Full Sail Old Boardhead Vertical: 1998 & 1999 (12 oz.), 2001-2007 (22 oz.)
-Pike Old Bawdy Vertical: 1996-1998, 2006-2007 (12 oz).
-AleSmith: Old Numbskull (750 ml), Grand Cru (750 ml), Horney Devil (750 ml)
-Lost Abbey: Older Viscosity (375 ml) Angel’s Share (375 ml), Lost and Found (750 ml)
-Rodenbach Alexander 1991 (330 ml) and Rochefort 10 1999 (330 ml)
-Westvleteren 12 1997 (11.2 oz.)
-Anchor Brewing Commemorative Michael Jackson’s 60th Birthday Beer (1.5 L)

Other breweries included in the auction are Avery, Midnight Sun, J.W. Lees, Big Time, Fish Tale and more.

An entire list of auction items and more details can be found at: www.liquidsolutions.blogspot.com.

The vote on Alabama’s “Gourmet Beer” bill could come as early as tomorrow.

“Free The Hops” is asking for your help: “Because the Gourmet Beer Bill has already passed the State House of Representatives, this is the final step before sending this bill to the Governor. It’s very close, so please contact your senator to express your support.”

When this bill was debated in the House, many legislators spoke of the dozens of phone calls they received from their constituents. Your phone calls and emails really do make a difference and is one of the primary reasons we passed in the House. Let’s do this again!

When you call your senator’s office, you’ll likely speak to a secretary who will only be interested in knowing the bill number and your position. Here’s an example of what to say if you’re not sure:

“My name is (your name) and I’m calling to let Senator (senator name) know that I support HB196, The Gourmet Beer Bill. I would like him/her to vote Yes on this bill. Thank you for your time. Have a pleasant day.”

Visit Free The Hops for details.

Vermont lawmakers have widened the number of stores that may sell beer stronger than 8% abv.

Last week the Senate followed the House’s lead and approved the measure that allows the beer to be sold at grocery and convenience stores. Previously only liquor stores could sell stronger beer.

Morgan Wolaver, the owner of Otter Creek Brewery in Middlebury, says that currently only 30% to 40% of the state’s 75 liquor stores carry the specialty beers.

He says he plans to launch a stronger brew after Gov. Jim Douglas signs the legislation loosening the distribution restrictions.

“Beer O’clock” arrives at Denmark 4:41 p.m., but not until 6:14 in the UK. That’s the time they’ll have their first drink at the bar, on average.

An average Frenchman is done at the bar by 8:33, while Germans don’t quit until 10:59 p.m.

Only one British in ten enjoys a pint with lunch anymore, while nearly a quarter of Danes have a lunchtime drink.

Those are some of the facts from a new report examining European drinking habits from SABMiller. The survey of beer drinkers in fifteen countries shows that with volumes of consumption rising in many nations, beer plays a central role in our social lives, as well as facts that may or may not surprise. For instance:

- Italians more than any nationality drink beer in a restaurant.
- Beer accounts for 64% of alcohol consumption in the Czech Republic, and the Czechs are most loyal to their own beer.
- The Polish are least likely to drink on their own.

The full report.

Wisconsin brewery Stevens Point has introduced a new beer: Point Nude Beach Summer Wheat.

“It’s the perfect summer brew for summer thirsts. What can be more fun than a nude beach?” said Joe Martino, Stevens Point Brewery Operating Partner. “Where and how you enjoy Point Nude Beach Summer Wheat is up to you. Clothing is optional.”

A company press release notes the beer is brewed with “au naturel” raw white wheat as well as traditional malted wheat and barley.

Wheat beers are among the best selling craft beers, and in the Midwest are the No. 1 craft beer style.

- Leinenkugel’s, also in Wisconsin, has brought back its Summer Shandy, which became the brewery’s best selling seasonal ever when it was originally introduced last year. The company describes it as “an adventurous blend of select malted wheat and barley, lemonade flavor and a hint of Wisconsin honey.”

A “shandy” (which is short for “shandygaff”), as it’s called in England and Germany, is typically a mixture of beer and soda or lemonade and has been enjoyed across Europe since the 17th century. Another variation of a shandy is the “radler” which is a German term for cyclist.

Thomson Financial reports that Pyramid Breweries and Magic Hat Brewing Co. have signed a letter of intent for Magic Hat to acquire Pyramid through an all-cash tender offer.

Magic Hat will pay $2.75 for each Pyramid share. The offer represents a 56% premium over Monday’s closing price of $1.76 for shares of Pyramid, a Seattle-based beer brewer.

The closing of the proposed transaction is anticipated to occur no later than August 31.

According to a joint press release, the board of directors of Pyramid has approved the transactions contemplated by the Letter of Intent.

“The combination of these two well established, high profile craft breweries will be very complementary given our respective brand portfolios and the geographies in which we predominantly operate. Additionally, there will be a number of important benefits for Pyramid to be part of a private company versus continuing to operate as a stand alone public entity. This consolidation makes both good strategic and financial sense and is well timed, particularly as the beer industry’s competitive dynamics continue to intensify,” Pyramid CEO Scott Barnum said for the press release. “The Company will continue to have offices in Seattle, its historical home, and will seek opportunities to capitalize on the enhanced assets and capabilities of the new combined entity.”

Martin Kelly, CEO of Magic Hat said, “We have a great deal of respect for Pyramid’s brand heritage, award-winning beers and its dedicated employees, and look forward to consummating this transaction, which provides both strategic and financial benefits both to Pyramid’s and Magic Hat’s stakeholders.”

Kelly previously served as CEO at Pyramid before joining Magic Hat.