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Apr 18, 2014

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RBPMail 4.09, September 1998

Real Beer Page Mail (RBPMail) began as a modest update to craft-brew events on the WWW. It evolved into a news digest and sometimes editorial forum. We present its contents here much as they were emailed to subscribers. Often, links you will see are out of date, and businesses referred to may also be long gone.

In this issue:


If you like what you read here and want more and every week, subscribe to BEERWeek. Much of the content within is digested from BEERWeek, the paid subscription supported industry email newsletter. Get your free sample today at

http://www.beerweek.com

CORONA RISES TO FIFTH IN THE WORLD

Fueled by continued strong sales in the United States, Corona Extra has jumped from the ninth largest beer brand in the world to the fifth. The Gambrinus Co., which imports Corona in the eastern U.S., reported sales were up 48% in the second quarter of 1998. In 1997, Corona Extra passed Heineken as the No. 1 selling import in the United States. Budweiser and Bud Light retained the top two spots in the world, according to figures released by Barton Beers, which imports Corona in the western U.S.

TOP 10 BEER BRANDS WORLDWIDE

Millions of
barrels
Budweiser, Anheuser-Busch, Inc.
Bud Light, Anheuser-Busch, Inc.
Brahma Chopp, Companhia Cervejaria, Brahma
Asahi Super Dry, Asahi Breweries
Corono Extra, Grupo Modelo
Skol, Companhia Cervejaria Brahma
Antartica, Companhia Antarctica Paulisla
Miller Lite, Miller Brewing Co.
Heineken, Heineken NV
Coors Light, Coors Brewing Co.
42.7
23.3
18.7
18.5
16.6
16.5
16.4
16.4
16.0
15.0

BEER WAR IN CHINA?

Beck's brewery in China, Putian Golden Key Company, has cut its beer prices by over 25%. The Beijing sales manager for Putian stated that the cut is only through October, and was done to encourage consumption of the beer. Because of its relatively high price, customers have been reluctant to try Beck's. (BEERWeek, 8/17)

CHINA WEIGHS ON FOSTER'S PROFITS

Foster's Brewing Group is one of those that's found out how tough the going in China can be. Australia's largest brewer has decided to sell two small Chinese breweries and focus on its main operation in Shanghai. The brewery took a $167.7 million (US) writedown on the sale. For the year ending June 30, the company said that it earnings rose $159.6 million but investors remained concerned about further weakness in Asia. The company's bottom line benefited greatly by the $480 million profit on the sale of the group's half share in Canada's Molson Breweries. Foster's chief executive Ted said the brewery remained committed to China and its other developing Asian operations in India and Vietnam. "The demographics alone overwhelmingly support a presence there with India, Vietnam and China together accounting for more than half the world's population," he said.

CLICK HERE TO SAVE A PUB

A branch of the Campaign for Real Ale (CAMRA) has launched an Internet web site that is part of an effort to stem the theft of historic British pubs. The Birmingham chapter reports that the interiors of 10 historic pubs have been stolen in Birmingham in the last six years, and that none of those pubs ever reopened. The thieves prey upon pubs that are changing ownership, arriving while they are empty and stripping them bare in a matter of hours. The parts are apparently sold to refurbished pubs in the London area, or perhaps to the United States. The new website includes detailed photographs of fittings stolen from the pubs. You'll find it at:

http://www.netcomuk.co.uk/~mullaney/stolen/stolen.htm

TINY BREWERY MAKES ENGLAND'S BEST

A three-year-old brewery that produces about as much beer as the average American brewpub made the beer crowned best in England. Bluebird Bitter from the Coniston Brewery in Cumbria was judged 1998 Champion Beer of Britain at the Great British Beer Festival. The brewery opened in 1995 in a converted pig sty behind a pub. It is capable of making 20 barrels of beer per week. Brewers Ian Bradley and Rob Irwin were shipping 15 barrels a week before the GBBF. Despite the fact that Bluebird Bitter is in short supply, Matthias Neidhart of B. United International reports that 10 firkins (a little more than 100 gallons) are being shipped to New York City in September.

CZECHS RULE AGAINST MERGER

The Czech Republic's Anti-Monopoly Office has asked giant holding company to sell a majority stake in either Plzensky Prazdroj AS and Pivovar Radegast AS, two of the country's largest brewers. The Office had ruled in December 1997 that it would ban a merger of the two breweries. A Czech bank owned by Nomura stated that Nomura International Plc, which controls Radegast, or Nomura Europe Plc, which controls Prazdroj, has to sell a majority stake in one of these brewers within six months. (BEERWeek, 8/24)

SAN MIGUEL NETS $17 MILLION IN FIRST HALF 1998

San Miguel Corporation, the Philippines-based beverage, food and packaging group, reported a net income of $17 million (U.S.) in first half of 1998. This was 75% lower than the net income for same period last year. While sales volumes of San Miguel's domestic businesses gains were offset by a sharp increase in financing charges, a squeeze on margins in the packaging operations, weak performance of the real estate business and foreign exchange losses in Indonesia. Beer posted a growth rate of 7%. (BEERWeek, 8/10)

KIRIN DOMESTIC SALES DECLINE; TO PRODUCE BUD IN CAN

A dividend payment from a New Zealand brewery in which Japan's Kirin Brewery Co. bought a 45% stake in April offset a 9.2% decline in the brewery's domestic beer sales in Japan. Kirin is Japan's largest beer maker. In the works at Kirin is a plan to contract brew canned Budweiser beer for sale in Japan, starting in September, according to Kyodo report. Following a 1993 agreement with Anheuser-Busch, Kirin contract brewed bottled Bud in Japan, but had to import canned Bud from the A-B Los Angeles plant. (BEERWeek, 8/10)

DESPITE RECORD FIRST HALF, ASAHI NOT OPTIMISTIC

Japan's Asahi Breweries Ltd. announced a record pretax profit of 18.45 billion yen on an unconsolidated basis between January and June of its 1998 business year; this is 1.6% higher than same time last year. The brewery also reported a 5.3% increase in overall sales. However, the brewery forecast that sales for the year would be almost flat compared to 1997. Following that announcement Asahi shares fell as much as 10%. (BEERWeek, 8/10)

UK APPEAL UPHOLDS TIED HOUSE RULING

Great Britain's Court of Appeals has rejected claims that the United Kingdom's tied house system violated European competition laws. Innkeeper Graham Gemmel had challenged the traditional brewery-tied-pub tenancy system. Gemmel had been ordered to quit his Red Lion pub in Shepshed (in Leicestershire) for being behind in his rent and violating the terms of his tie with his landlord, brewer Gibbs Mew. The court ordered Gemmel to pay 15,199 pounds in unpaid back rent. (BEERWeek, 8/3)

****WEB WATCH****

MICHAEL JACKSON BACK IN CYBERSPACE

Yes, THE Michael Jackson. The world's best known beer writer is now partnering with Real Beer Inc. to satisfy your thirst for beer knowledge. "This is the definitive and exclusive Beer Hunter website," said publisher and President of Real Beer, Pat Hagerman. "It's been a couple of years in the making and you'll see we're not just picking up where Discovery left off; this is a complete redesign. The Beer Hunter site represents an important milestone in the development of our all- beer Network." Co-founder and CEO, Mark Silva stated, "This site will be the glossiest publication about beer on the web, in print or in any medium. The Beer Hunter will be the right combination of timely and timeless information. It's how people will be introduced to the great beers of the world and where they can start their own beer hunting pursuits." Available now are more than 100 of Michael's favorite articles from the 1990s. Learn about breweries, beer and beer culture around the world or compare your opinions with his tasting notes. Pour yourself a beer, sit back and enjoy yourself with the Beer Hunter.

http://www.beerhunter.com

STEPHEN BEAUMONT ON BABE BEER

What does Stephen Beaumont think of plans for Babe Beer from an Oregon marketing company? He writes, "let's face it, this is another attempt to parlay a pretty face on a bottle into beer market share and the flavour of the brew should be expected to have little to do with sales. Rather, success or failure will depend on the willingness of men to base their beer purchases upon the look of the label, or in the case of the promotional 'Babe Nights' at bars, the face behind the bottle. Either way, it's a pretty poor reason to choose a beer."

http://worldofbeer.com

MULTIMEDIA GUIDE TO BELGIAN BEER

You'll find all you want to know about Belgian beer here, starting with where it's brewed. Maps will direct you where to look, there's a guide to Belgium's unique beer styles, a list of classic examples and even a key to correct pronunciation of beer styles and classic brewers. We'll try not to hold it against these guys that they've included pictures of empty bottles (guess what happened to the beer).

http://belgianstyle.com/mmguide/

****REAL BEER PICKS****

INDEPENDENCE BREWING CO.

Since 1995, Independence has taken pride in recreating a time honored, hand-crafted tradition in a city which was once considered the brewing capital of the new world. All of its ales and lagers are brewed in small batches, with only the freshest and finest ingredients. The brewery uses no chemicals or additives, and there is no pasteurization. Their site provides plenty more information about the beers and where to find them.

http://www.independencebrew.com/

HOP-HEAD COLLECTION

HOP-HEAD: \'häp 'hed \ noun
1. beer aficionado, beer enthusiast, beer hobbyist, beer lover.
2. whimsical, colorful, trademarked logo, personifying beer enthusiasts.
If you have a friend who matches the first definition above, then head To the second to do your gift shopping. Of course, it's OK to buy beer stuff for yourself there, too.

http://hopheadcollection.com/

WEARABLE BLOWOUT AT PORTLAND BREWING

Doing your holiday shopping early? Tired of doing laundry and want to buy a month's worth of clothing? Portland Brewing Co. is offering T- shirts starting at $6.30 with six different shirt available for less than $8 reach. Hats and other quality wearables are also on sale. Buy one, buy a dozen. Don't wash another shirt until the Great American Beer Festival.

http://www.portlandbrew.com/merchandise.php

RAPIDS WHOLESALE EQUIPMENT CO.

Rapids has been serving the global market with everything from smallwares to large equipment since 1936. The company focuses primarily on the beer industry, and over the years has continued to expand its product line and locations to serve the food service and beverage industries in the United States and around the globe. It's a one-stop shopping source for value-priced commercial restaurant and bar equipment, and commercial food service supplies.

http://www.4rapid1.com/

SPECIALTY PRODUCTS INTERNATIONAL

This producer of brewing ingredients and equipment makes available to homebrewers the same malt syrups being used in brewpubs and microbreweries throughout the United States. Specialty products also offers a full line of homebrewing equipment -- great for beginners and experts alike. Complete satisfaction is guaranteed with the very first brew.

http://specialtyproductsltd.com/

TRIPLE ROCK BREWERY & ALEHOUSE

Did you know that Triple Rock Brewery & Alehouse is America's oldest brewpub still owned by its founders? Or why the brewery changed its name from Roaring Rock Brewery to Triple Rock? Discover more at the Berkeley brewpub's totally revamped its website.

http://triplerock.com

**** Brewed Fresh For You! ****

The Real Beer Page announces a diverse group of brew websites to check out:
http://www.monkscafe.com
http://www.irishpubtours.com
http://www.ecologiccleansers.com
http://www.brewersheritage.com
http://www.beerheads.com
http://www.maltbev.com
http://www.hwbta.org
http://www.merchantduvin.com
http://www.mainebrew.com
http://www.toronado.com
http://www.jtwhitneys.com
http://www.brewing.co.nz
http://www.beertravelers.com
http://belgianstyle.com/mmguide
http://www.independencebrew.com
http://hopheadcollection.com
http://www.4rapid1.com
http://specialtyproductsltd.com
http://triplerock.com

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QUICKIE EMAIL SURVEY

Thanks to all who have been replying to our Quickie Surveys. We draw one winner each month for the prize of "Michael Jackson's The Great Beers of Belgium" distributed by Vanberg & DeWulf (http://www.BelgianExperts.com), importers of fine Belgian beers and now brewers of Belgian-style beer in their Cooperstown-based Brewery Ommegang. Last month's winner was Sam Farlow, who wants to see more homebrewing information.

LAST MONTH'S QUESTION:
Last month we asked you which features you wanted to see more of on Real Beer. Overall, it looks like you're pretty interested in areas we're already delivering on and with which we can always get better. Fully 97% of our viewers say they want more: fun, breaking news, homebrewing, regional and tasting notes information.

Your comments are duly noted. In fact, as mentioned above we've just launched a site that addresses quite a few of the issues rather nicely. Have fun checking out the new Michael Jackson Beer Hunter website that has more regional information and tasting notes from the world beer authority.

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A-B EARNINGS RISE; BEER PRICES WILL TOO

Anheuser-Busch Cos. reported that second quarter earnings were 2.6% higher in 1998 than for the same period in 1997 and that second quarter domestic shipments grew 1.6% to 24.1 million barrels. August A. Busch III, Chairman of the Board and President said: "The company's strategy initiated at the beginning of this year to reduce the emphasis on widespread price discounting that occurred in the beer industry throughout 1997 has been successful in many markets. We have seen a reduction in discounting since the fourth quarter of last year, but pricing remains competitive." Busch was referring to a year of industry-wide price wars. Now A-B is introducing a modest price increase for the fourth quarter. The company indicated it wouldn't be an across-the-board, nationwide increase. Each market is to be assessed separately. The company also did not say which beers would be affected. If Miller Brewing Co., A-B's biggest rival, joins in, Anheuser may announced a larger hike early in 1999. Analysts expect Adolph Coors Co., the nation's third largest brewery, will likely follow A-B's lead on pricing, but if Miller doesn't as well they think A-B will abandon the price hikes.

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COORS SETS SALES RECORDS

Adolph Coors Co. announced record net sales and higher earnings for the second quarter of 1998. For the quarter ending in June, Coors reported net sales of $541.9 million, a 4.1% increase from 1997. Second quarter sales volume was a record 6,036,000 barrels, a 3.8% over the same period last year. (BEERWeek, 8/10)

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BOSTON BEER COMPANY CORE SALES UP

The Boston Beer Co. core brand shipments increased 2% in the first half of 1998, although barrels sold and net sales were lower because it discontinued a contract brewing arrangement for an iced tea beverage formerly brewed at its Cincinnati brewery. (BEERWeek, 8/10)

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CANADA'S SLEEMAN BREWERIES REPORTS RECORD QUARTER

Sleeman Breweries Ltd. announced that sales grew by 54% $14.1 million to $21.8 for second quarter 1998 compared to second quarter 1997. The 1998 results include the performance of Upper Canada Brewing Company since March 1, 1998. (BEERWeek, 8/24)

http://www.uppercanada.com

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EXPECT MORE TRIPS TO THE BATHROOM

After years of criticism for appearing to appeal to young drinkers, the alcoholic beverage industry has taken aim at a new target audience: graying baby-boomers, according to the Wall Street Journal. Spirits producers have taken the lead in creating ads for older consumers, but Anheuser-Busch indicates its Catalina Blonde is directed at "mature" consumers. August A. Busch IV, director of marketing, says consumers over 50 represent "a growth opportunity." By 2005, 42% of the adult population will be over 50, compared to 37% today. (BEERWeek, 8/17)

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PETE'S WICKED NEW BOOK MAKES BOOKSELLERS LISTS

"Beer for Pete's Sake," which Pete Slosberg, founder of Pete's Brewing Co., calls his "auto-brew-ography," has begun to attract national attention. It was No. 7 on a USA Today list of new books to watch, was No. 7 on the San Francisco Chronicle's Bay Area Cookbook Bestseller list and No. 1 on the Boulder, Colo., Daily Camera's best-selling business book list. (BEERWeek, 8/24)

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MICRO TAKES ON BIG BOYS, UNOFFICIALLY OF COURSE

Anheuser-Busch spent millions of dollars to become the official beer sponsor of the 2002 Winter Olympics in Salt Lake City, while Shirf Brewing has invested considerably less to make itself the "unofficial beer" of the 2002 games. Olympic organizers aren't pleased and have launched a campaign against such "ambush marketing." "It's cheating, pure and simple," USOC deputy general John Krimsky said. Anheuser-Busch paid more than $50 million to sponsor the Olympics. Krimsky said it is his job to protect that investment, 70% of which goes to fund the Olympics.

Schirf Brewing began its campaign by putting the phrase "Wasatch Beers. The Unofficial Beer, 2002 Winter Games" on one of its trucks. Brewery owner Greg Shirf said Olympics organizers are taking themselves too seriously by claiming ownership of the words "Games" and "2002." "Our contention is we were careful not to use the word Olympics," Schirf said. "No one has claim on 2002 and everyone uses the word games." Schirf is pushing the controversy a step further by marketing a beer labeled "Wasatch Unofficial 2002 Amber Ale."

Schirf doesn't know how long he can continue to afford to fight Olympic organizers, but did admit he could change his mind. "We don't want to make a deal. We just want to have some fun," he said. "The only way we will acquiesce is if they make us drink Budweiser."

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A LITTLE HAIR OF THE ...

A Bristol, England, mother gives Guinness credit for her baby being born with a full head of dark hair, but the Irish brewery hasn't suggested bald men rush out and start knocking back extra pints. During every night of her pregnancy, Kim Winstone had a pint of Guinness. Daughter Sophie was born with a dark mop of hair, and, after two months, her locks were below her ears. "I knew Guinness was supposed to be good, in moderation, for pregnant women, but I never expected this," Winstone said. Guinness is taking no credit. "We are delighted that Mrs. Winstone enjoyed our product, but there is nothing in a pint of Guinness that encourages hair growth. The fact that Sophie's hair is black is pure coincidence!"

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FTC AGAIN REVIEWS ALCOHOL MARKETERS' TARGETS

The Federal Trade Commission has ordered eight major alcoholic beverage companies to report on specific advertising practices to determine if the industry is doing enough to discourage ads that appeal to underage drinkers. The FTC's order comes as makers of alcoholic beverages are spending more money on advertising. Beer, wine and liquor companies spent $1.08 billion on ads in 1997, up 6% from 1996. Beer companies that must file reports are Anheuser-Busch Inc., Miller Brewing Co., Coors Brewing Co. and Stroh Brewery Co. (BEERWeek, 8/10)

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HERE'S SOLUTION: GIVE THEM WEB BROWSERS

For the first time in 10 years, college students have chosen an activity other than drinking beer as the most "in" activity. Web surfing was named by 73% of respondents as an "in" activity, while beer drinking was listed by 71%. Beer drinking had topped the list since Student Monitor, which polled 1,200 students on 100 college campuses, began the surveys in 1988. Eric Weil, managing partner at Student Monitor, warned that the figures don't necessarily mean that web surfing is more popular than beer drinking - just that the larger percentage of respondents called it an "in" activity. However, he also noted, "What's in on campus is an early warning system about what the adult population will try to do, emulate or adopt in 18 to 24 months."

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WHAT THE 'H'?

Lowell Brewing Co. of Lowell, Mass., spent a year researching the Harvard Brewing Co., which operated between 1898 and 1956, before reviving the "Harvard" brand. It has a red label and a crimson flag with the letter "H" on it. A brewery spokesman said that Lowell never thought about the university's crimson logo. Harvard University's trademark attorneys have asked the brewers to stop using the Harvard name, as well as the style of packaging. Since May, the brewer has sold about 4,000 cases, the bulk of it in Lowell and surrounding towns.

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LIBERTY MALT SUPPLY TO CLOSE IN SEATTLE

Liberty Malt Supply Co., one of the nation's best known homebrew stores, will soon be all-but-closed. According To Alan Shapiro, sales and marketing director of Merchant Du Vin, the parent corporation now under new management, most of the retail homebrew store will be closed. The corporation has decided to expand the brewery pub into Liberty's expensive First Avenue storefront retail space. "The lease was coming up for renewal, and we feel that the future of homebrew suppliers will be Internet-based," Shapiro said. Shapiro noted that this move will give the Pike Brewery & Pub important visibility on the street (it is currently located inside a shopping complex next to the Pike Place market.) Liberty Malt Supply was founded in 1921 and purchased by Merchant Du Vin in 1989. (BEERWeek, 8/17)

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1998 NINKASI AWARD WINNER ANNOUNCED

Art Beall of Hudson, Ohio, was awarded the 1998 Ninkasi award at the American Homebrewing Association's annual meeting. The Ninkasi, named after the Sumerian goddess of brewing, is awarded to the brewer who scores the most points at the AHA's annual homebrew competition. Beall took a gold medal and two silver medals for his German-style Double Bock, a German-style Schwarzbier and a German-style Weizenbock. Boston Beer Co. sponsored the Ninkasi. Beall receives a two-week course at the Siebel Institute of Brewing in Chicago and a trip to Boston Beer's pilot brewery in Jamaica Plain, Mass., to brew with the Sam Adams brewers. Beall plans to brew his Schwarzbier when he visits the brewery. (BEERWeek, 8/24)

http://www.samadams.com

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WISCONSIN BREWERY FLOODED AGAIN

Wisconsin Brewing Co., almost put out of business in 1997 by a flood that is supposed to occur but once every 100 years, was swamped again this summer. Friends in the brewing community rallied to keep the Wauwatosa, Wis., brewery afloat, so to speak, last year. Things may not be so bad this time around. Last year, the flood hit on a weekend and at night; this time there was time to prepare. Still, the brewery filled with more than four-feet of floodwater from the nearby Menomonee River. "God, this is unbelievable," co-owner Gary Versteegh said. "(But) it's not as bad as last year -- I've just got to keep saying that." It was a little easier because, unlike last year, he and his co- owners now have flood insurance. (Provided by Lucy Saunders)

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BREWERIES GIVE BACK: WILD GOOSE ADOPTS OYSTERS

A century ago, the Chesapeake Bay oyster population could filter the entire Bay in three to six days. Today, it would take the existing oyster stocks at least a year to do the same job. This year Wild Goose Brewery is again participating in a protective program to help save the Chesapeake Bay. Wild Goose, WRNR Radio of Annapolis, Md., and the Chesapeake Bay Foundation are sponsoring the "Adopt-an-Oyster" program. (BEERWeek, 8/10)

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PITTSBURGH BUYS WANKER BRAND FROM BANKRUPTCY

Pittsburgh Brewing Co. has acquired another branded trademark, Wanker Beer, originally established and marketed in New Zealand. Pittsburgh also recently acquired the brands of Evansville Brewing Co. in Indiana and entered into an exclusive service agreement with Blues City Brewing Co. in Memphis, Tenn. (BEERWeek, 8/24)

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NATIONAL BOP COMPETITION OCT. 17

The first National Brew-on-Premise Brewing Competition will be held in conjunction with the Real Ale Festival on Oct. 16-18 in Chicago, according to an announcement from New Hampshire BOP Red, White & Brew, Inc. owner, Steve Friedman. Approximately 18 categories will be judged. The competition is for owners/operators of BOPs, rather than BOP customers. The beers will be judged by judges already at the Real Ale Festival, and Michael Jackson has agreed to serve as judge for the Best of Show aspect of the competition. (BEERWeek, 8/17 & 8/24)

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GUEST EDITORIAL: FROM FRED BOWMAN, PORTLAND BREWING CO.

Northwest breweries have achieved a reputation for great beer that extends around the world. What has not been talked about as much, and should be of equal or greater importance to people who don't even care about beer, is the economic and social significance of this industry.

Brewery employment in the state of Oregon is over 1,800. Thousands of people come here every year just to visit the breweries, including many of the nearly 100,000 attendees of the Oregon Brewer's Festival. The industry pays considerable amounts of money in the form of taxes, not only normal business and property tax, but state and federal excise tax as well.

Most of the raw materials for beer, barley and hops, are products of Northwest agriculture. There are many supporting industries, from equipment manufacturing and maintenance, to cleaning supplies. Solid waste from the breweries (spent grains and yeast) becomes food for livestock.

Community involvement is a hallmark of this industry and contributions to local charity fund raising events, support for local amateur sports teams, the arts, public broadcasting, churches, community projects, etc., are the rule.

These breweries and brewpubs usually occupy older buildings many of which had been derelict for years. Many historic buildings have been given a new life, becoming important factors in the revitalization of neighborhoods which had fallen to neglect.

Knowing all of this, it's interesting to look at sales numbers for northwest regional beers which have leveled off or fallen, when virtually every imported beer of significance is showing increases from 20 to 90%. Do Mexican breweries purchase supplies and equipment from Oregon companies? Do European breweries contribute to local charities? Has a Canadian brewery renovated any old buildings? How many Oregonians do any of these breweries employ?

Virtually every popular style imported has a local counterpart. The breweries support their communities in every possible way. The people should support their local Northwest breweries. If they weren't here, a lot more than the beer would be missed.

Fred Bowman is a founder and vice president of Portland Brewing Company, which operates two brewpubs and a microbrewery in the heart of Portland. They can be found on the web at: http://www.portlandbrew.com

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