BMC rice source

Discussion in 'Beer Talk' started by kylelenk, Jan 21, 2014.

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  1. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania
    In Memoriam

    Documentation of this claim please. Thanks.
     
  2. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania
    In Memoriam

    Apparently the bad is only in the minds of people who want to criticize ABInBev. The consensus of the homebrewing group a year or so ago when this switch from whole grain to allowing broken grains was discussed here is that it didn't make any difference in brewing with rice or in the end product to use a supply of rice that included broken grains. Apparently the whole thing with regard to the whole grains was simply a marketing thing used by Bud for several years.
     
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  3. rgordon

    rgordon Pooh-Bah (2,701) Apr 26, 2012 North Carolina
    Pooh-Bah

    Or pellets.
     
  4. HRamz3

    HRamz3 Initiate (0) Feb 9, 2010 Pitcairn

    Broken rice is aka Brewers rice.
     
  5. Smakawhat

    Smakawhat Grand High Pooh-Bah (7,191) Mar 18, 2008 Maryland
    BA4LYFE Society Pooh-Bah

    I am guessing it's domestic, I am not sure if rice farmers are exactly making money hand over fist, but I am sure you'd ideally want to sell it to a big customer like them
     
  6. otispdriftwood

    otispdriftwood Initiate (0) Dec 9, 2011 Colorado

    And this would make sense seeing that InBev has taken over and done everything to cut costs.
     
  7. jesskidden

    jesskidden Grand Pooh-Bah (3,145) Aug 10, 2005 New Jersey
    Society Pooh-Bah Trader

    I am basing that comment on the aforementioned Businessweek (pg 3) article:
    That was long a common claim from AB.
     
  8. cyrushire

    cyrushire Initiate (0) May 25, 2012 Florida

    For eating purposes broken rice doesn't cook evenly.
     
  9. HRamz3

    HRamz3 Initiate (0) Feb 9, 2010 Pitcairn

    Oh, I have no idea what kind of rice AB uses, I just found it odd that there would be some kind of negative connatation to using broken rice, as apparently that is traditionally the type used in brewing. It would seem using using un-broken grains would be an unecessary expense, but AB probably claims to because it sounds better.

    Also, I wonder if the type of rice depends on where the AB brewery is located.
     
  10. kylelenk

    kylelenk Initiate (0) Apr 17, 2012 Michigan

    I have no problem with any brewery using anything imported....as trade is essential for economic prosperity.

    I just believe it's ironic to think of the huge population of Budweiser drinkers that are very pro-Americana and don't realize that the base of their beer is likely comprised of imported grains. Don't want to stereotype but look at the group of people that are boycotting Suntory now that they own Beam and Makers...

    Furthermore, I'm sure the majority of Budweiser drinkers are naive to the fact that it isn't even American owned anymore.
     
  11. Ranbot

    Ranbot Pooh-Bah (2,463) Nov 27, 2006 Pennsylvania
    Pooh-Bah

    Wrong. Raw materials are not an expensive enough item to skimp and risk a multi-billion dollar brewing operation on. The cost of rice [and raw materials in general] is a drop in the bucket compared to marketing, distribution, energy, taxes, R&D, etc. Their massive brewing systems are calibrated for specific materials and changing them could cause many unintended consequences, not to mention if the final product were to change and people rejected it (for example, New Coke). You may not like their end product, but that doesn't mean the materials going into it are poor quality or they have any intention of ever reducing the quality.
     
  12. hopfenunmaltz

    hopfenunmaltz Pooh-Bah (2,635) Jun 8, 2005 Michigan
    Pooh-Bah

    Most of the info says the rice is domestic.

    Many US craft brewers also.use barley malt from.Canada, so I would not be surprised if Bud did too.
     
  13. otispdriftwood

    otispdriftwood Initiate (0) Dec 9, 2011 Colorado


    You're entitled to your opinion and I'm entitled to mine. I can't say you're wrong since I don't have first hand knowledge of exactly how much raw materials, marketing, distribution, energy, taxes, R&D costs contribute to the price of brewing beer at a specific brewery. Apparently you do and if so, please feel free to share it so perhaps I'll learn something factual.

    One of the main reasons New Coke failed is because Coca-Cola made a big deal of it. New cans, new advertising. People compared it with the old Coke. What I consider a minor switch in an adjunct additive should not have a major effect on the product. And I don't believe they if they were to make such a switch, it would be made without significant trials to see what, if any, effect there was on the product. Heaven forbid any change is made to Budweiser; the macro swillers would have a shitfit. And a cost is a cost, whether it is a drop in the bucket or not. InBev has a track record of cutting costs and that's what I based my opinion on. It has nothing to do whether I like the product or wouldn't use the product to wash my feet, in fact, I have high respect for a beer company that can product mass quanities of an identical product at many different facilities.
     
  14. kylelenk

    kylelenk Initiate (0) Apr 17, 2012 Michigan

    I agree with some parts here but I'd say that raw materials are a huge item for larger brewers. Companies of that size are undoubtably hedging their exposure to commodity prices through derivatives. You have to understand that they work on massive volume and tiny margins. A slight percentage bump in ingredient costs can have disastrous effects on the bottom line.
     
  15. rgordon

    rgordon Pooh-Bah (2,701) Apr 26, 2012 North Carolina
    Pooh-Bah

    Yep. You're talking about railroad cars full of commodity goods ordered who knows when? The true scale of these big breweries is hard to imagine- especially day after day...... And these guys are all hawking the pennies. People lose their jobs over these broken rices! Also, never toss broken rice at a wedding- very bad luck! Cheers.
     
  16. Ranbot

    Ranbot Pooh-Bah (2,463) Nov 27, 2006 Pennsylvania
    Pooh-Bah

    Large Scale Breweries:
    Factor in PricePercentage Weight

    Packaging28.00%
    Tax25.00%
    Sales and Marketing17.00%
    Production15.00%
    Malt8.00%
    Minor Ingredients4.00%
    Adjuncts2.00%
    Hops1.00%
    Total:100.00%

    [​IMG]

    Adjucts 2%... Heck, I'll bet the super bowl ads alone are more than what they spend on rice. Keep in mind they have the ability to contract rock-bottom prices for their raw materials years in advance, even less incentive to change to something cheaper. More costly items like "Production" are very dependent on consistent quality raw materials to keep that massive brewing machine running efficiently. A company like InBev has so many better places to pinch a penny than risking an entire brand on a raw material.
     
  17. jmw

    jmw Initiate (0) Feb 4, 2009 North Carolina

    So according to this, raw materials account for just as much as production and roughly as much as sales/marketing. That seems like a very valid component to try and pinch a penny on.
     
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  18. Homebrew42

    Homebrew42 Initiate (0) Dec 20, 2006 New York

    Just what is "sushi grade rice" and where does this information come from? This sounds like marketing BS to me. I used to go to an Asian market in my area and marvel at the "sashimi grade tuna"...I later found out that theres no such thing as "sashimi grade tuna", its 100% marketing BS.
     
  19. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania
    In Memoriam

    Basically as I understand it "Sushi grade" is the shorter grain Japanese style that must be composed of whole grains. And yes that requirement was apparently put in place by one of the AB owners several years ago so they could claim to use only the best ingredients (for marketing purposes). As soon as you buy the same rice from the same strain from the same fields but with lots of broken grains it is no longer "Sushi grade" and is also less expensive.

    The information comes from multiple sources including a Sushi Chef and online sources dealing with grades of rice and other grains.

    Edit: Also my original statement which you quoted is about something in the past. See the corrections that followed. They now use the lower grade of rice.
     
  20. Homebrew42

    Homebrew42 Initiate (0) Dec 20, 2006 New York

    Unless I'm missing something I can't find any mention of the words "sushi grade" in the USDAs rice grading scheme. Seems like a term devised specifically for marketing purposes.

    http://www.calrice.org/Cuisine/Food+Processors/USDA+Grades.htm
     
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