July 2017 News: Nevada Expands Brewpub Limits, WarPigs Launches in Chicago, and Maltster Peter L. Si

Discussion in 'Article Comments' started by BeerAdvocate, Jul 7, 2017.

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  1. BeerAdvocate

    BeerAdvocate Admin (4,017) Aug 23, 1996 Finland
    Staff Pooh-Bah

  2. Squire

    Squire Grand Pooh-Bah (4,081) Jul 16, 2015 Mississippi
    Pooh-Bah Society Trader

    Ah, San Miguel, that one brings back some long ago memories.
     
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  3. jesskidden

    jesskidden Grand Pooh-Bah (3,071) Aug 10, 2005 New Jersey
    Pooh-Bah Society Trader

    I guess they forgot about their majority share of the ownership of Kansas City's Muehlenbach Brewing Co. and San Antonio's Lone Star Brewing Co. in the 1940-50s. :grinning:

    (I know I was surprised to find out about it when I stumbled upon the fact several months ago.)

    They sold Muehlenbach to Schlitz in '56. Not sure when they sold off their share of Lone Star. Apparently Muehlenbach even brewed San Miguel Beer for the US domestic market.
     
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  4. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,181) Dec 15, 2005 Pennsylvania
    Pooh-Bah Society

    “….the Philippines-based San Miguel Corporation announced plans to build a $150 million brewery in Los Angeles.”

    @jesskidden is there any way to guess the size of this brewery from the dollar value? I wonder why they wouldn’t just buy the Miller-Coors brewery located in Eden, NC? Have you seen any price values associated with the Eden, NC brewery?

    Cheers!

    @Sixpoint
     
  5. SCW

    SCW Initiate (0) Jul 25, 2004 New York

    As a very general rule, it costs about $100 to add a barrel of productive capacity.

    Therefore, the San Miguel Brewery probably has to close to 1.5MM barrels worth of capacity.

    Typically when a brewery doesn't get sold right away there is a good reason why. Either its overpriced, or the amount of money needed to bring it up to modern technologies is cost-prohibitive.
     
  6. jesskidden

    jesskidden Grand Pooh-Bah (3,071) Aug 10, 2005 New Jersey
    Pooh-Bah Society Trader

    Some of the articles said the L.A. brewery would be the same capacity as two other planned SM breweries in the Philippines at 2m hl, so, yeah, around 1.7m bbl. Supposedly, they chose Southern California because their current expat market is there (1.5 million Filipinos) but, as your suggest, typically used capacity is a lot cheaper than new (esp. in So. CA I'd imagine). I know my first reaction to the story was "San Miguel Beer is still exported to the US?"

    I guess transportation costs rule out a NC facility (if it's truly even for sale - I haven't read much after the initial articles about the closure. re. The Teamsters, and Pabst [more below]) This ad sure doesn't sound as if they're selling it as a brewery http://www.theinvestor.jll/opportunities/americas/00/former-millercoors-brewery-eden-north-carolina/ IIRC, some of the previously closed Miller breweries included a sales clause that it could not be used as a brewery (maybe the Pabst/Olympia plant they ran for only a couple of years?).

    Until this story came out, I'd forgotten that San Miguel is nearly half owned by Kirin
    - which makes Brooklyn and SM "sister" breweries. :grinning: Of course, Brooklyn's joint ventures outside the US are done with Carlsberg (3rd or 4th largest brewer in the world, although with little to no US market share). What's the deal with that? :astonished:

    Well, with the Miller Eden plant, there's also the fact that there are few brewers in the country (or world) which can efficiently make use of a brewery with a 9 million bbl. capacity (supposedly it was 4% of the total US brewing capacity) and the fact that some industry people felt MC didn't want to sell to a competitor, especially given that Pabst, MC's biggest "customer" (good for 5m bbl/yr) , was the most likely buyer or leasee.

    Keeping capacity mothballed was a way to keep prices high, said the anti-trust lawyers at the time, suggesting that the entire deal was tied up with the MC-Pabst contract and a way to get Pabst to pay more.

    Eden was one of MillerCoors most efficient and versatile breweries (that's why they brewed Samuel Adams and other BBC brands, as well as initially the "new" Schlitz there, etc).
     
    #6 jesskidden, Jul 12, 2017
    Last edited: Jul 12, 2017
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  7. Thankin_Hank

    Thankin_Hank Grand Pooh-Bah (3,860) Nov 18, 2013 Texas
    Pooh-Bah Society

    San Miguel. 50 centavos in 1973 in Olongapo City near Subic Bay. It was the party capitol of the world when you're 19 and in the Navy. "Smoke on the water. A fire in the sky"
     
  8. Double_Barrel_Cannon

    Double_Barrel_Cannon Initiate (0) Jul 19, 2017 Georgia

  9. FlandersNed

    FlandersNed Pundit (840) Feb 8, 2009 Indiana

    From checkins, Warpigs brewery was open long before that beer was launched.

    It gets murky with intercontinental distribution, but all Warpigs beers seem to have another name as well.

    Just give me more great beer: I'm not a trademark attorney, nor do I play one on TV!
     
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