Beer News

By Andy Crouch & Todd Alström

Black Days for the Black Stuff?

In June 2007, drink behemoth Diageo announced a review of the St. James’ Gate Brewery after witnessing a substantial decline of Guinness sales in Ireland, during which many speculated that Diageo planned to sell the land and move the historic brewery. Nearly one year later, sources in the UK report that Guinness plans on selling half of the 56-acre site that’s been brewing Guinness since 1759. Additionally, the Kilkenny and Dundalk sites will close, which combined with the partial sale of St. James’ Gate is estimated to be worth €500 million and will cut some 250 jobs. A portion of the monies from the sale will be put toward refurbishing the Guinness Storehouse museum, which receives nearly one million visitors per year, and a new brewery to be built outside of Dublin to go online in 2013. Guinness “essence” is expected to continue production at St. James’ Gate for shipment to off-site facilities and to keep the smell of Guinness in the city’s air. [TA]

InBev Plans Price Hikes

InBev, the world’s second largest producer of beer by volume, has announced that it will raise its beer prices due to growing costs and warned of lower growth numbers for the first two quarters of 2008 compared to last year’s strong growth. InBev chief executive Carlos Brito told reporters, “You see the possibilities to pass some of the cost to prices … if your brands are strong enough, you should take that opportunity.” Brito added that price increases would be determined on a market-by-market basis, seeing “an opportunity in different markets to raise prices.” InBev’s global portfolio contains over 200 brands, including Beck’s, Brahma, Labatt Blue, Stella Artois, Leffe and Hoegaarden, with sales in over 130 countries. Though retail price increases have already occurred in the US for many of these mainstream imported beers, some fear even higher markups if wholesale prices increase. [TA]

Goose Island to Close Flagship Pub

With a population of nearly 3 million people, Chicago has long been lacking a sufficient number of brewpubs. Chicago’s short list grew a little shorter with the recent announcement that the Goose Island Beer Company will close its original brewpub at the end of the year. Citing the end of its lease, Goose Island will shutter 1800 North Clybourn, with no plans to relocate the pub and its brewing operations. Goose Island will continue to operate its Wrigleyville brewpub and its Fulton Street brewery; the former opened in 1999. Opened as a Lincoln Park brewpub in 1988, the Clybourn Street building also houses classrooms and educational facilities for America’s oldest brewing school, the Siebel Institute of Technology. Operated since 1872 and located at Goose Island since 2002, Siebel is presently looking for a new space for its operations. Goose Island experienced significant growth in 2007, expanding production from 60,000 to 90,000 barrels. [AC]

Denver’s First Mexican-style Cerveza Artesanal

Mexican beer tends to get a bad rap, at least in the US where these imported lagers from south of the border are lumped into the same category as Budweiser, Coors and Miller and garnished with a lime wedge. However, Jack Sosebee and Joe Fox aim to change this, at least in Denver, Colo. Del Norte Brewing is producing the first Mexican-style craft beers within the state of Colorado and arguably the US. In traditional Mexican lager fashion, one is light and one is dark. Orale is a “cerveza clara,” lighter all around, whereas Mañana is a classic Vienna Lager, darker and more malty, recalling “the European roots of Mexico’s great brewing history.” Currently few Denver-area locations carry the beer, but with the help of the brewery’s new bottling line, Del Norte cerveza should be flowing at liquor stores and bars throughout Denver soon. [TA]

Magic Pyramid Hat

The Magic Hat Brewing Co. of Burlington, Vt., recently announced the company’s signing of a letter of intent to purchase Pyramid Breweries of Portland, Ore. With a deal reportedly valued between $25-$30 million, including an assumption of debt, the brewers hope to close the agreement by August 31, 2008. Founded in 1994 and producing nearly 100,000 barrels of beer in 2007, Magic Hat has recently experienced enough growth to allow it and an outside investor to aggressively expand the brewery’s reach. The merger is not out of the blue as Magic Hat’s CEO, Martin Kelly, ran Pyramid until 2004 and understands the brewery’s fundamentals and existing troubles. Kelly previously helped Pyramid take over the Portland Brewing Co. and its MacTarnahan’s brands. Based on both coasts, the breweries have not announced whether they intend to brew each other’s brands for distribution in the partner’s market. Pyramid will become a private company if the sale is completed. [AC]

Beer Drinking Analyzed

While governments are usually the ones commissioning unusual studies and surveys, a recent report from SABMiller details the habits of European beer drinkers. After surveying 7,500 people from 15 countries, the “Time for a Beer?” report specifies the time during a typical workday when Europeans reach for their first beer. Enticing beer garden photos to the contrary, only 10 percent of Europeans would consider a beer at lunch, with most drinkers reaching for a beer at 6:08pm. Saturday remains the favored night for a pint, with 59 percent of those surveyed hitting the pub for a beer. The report offered Britons a few surprises, including the fact that Danes beat them to the bar by more than an hour (4:41pm versus 6:14pm) and that the British are the least likely Europeans to drink during the week. Czechs come in first with nearly two-thirds professing that beer is their favorite alcoholic beverage. [AC] ■