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WHAT'S BREWING

Headlines January - March 2003 ...

2003 Beer Drinker of the Year
The annual Beer Drinker of the Year contest sponsored since 1997 by Denver's Wynkoop Brewing took place again early this year and the 2003 winner was Ray McCoy, a 42-year-old computer consultant from North Carolina. McCoy, along with John Ahrens of NJ and John Marioni of WA, were flown to Denver to compete for the coveted title as a panel of nine black-robed, white wigged judges tried to stump the beer lovers with intensely beery questions that lasted more than two hours. McCoy, the third NC-winner since the competition began in 1997, won free beer for life at Wynkoop, $100 worth of beer at his home brewpub (Liberty Steakhouse & Brewery in High Point, NC), his name on a trophy that is on perpetual display at Wynkoop and clothing proclaiming him the 2003 BeerdDrinker of the Year. McCoy owns a collection of 1,600 beer labels and 300 beer glasses. After the competition he stated: "It's not the time drinking beer that matters. It's the intensity."

La Parade des Chefs -- Cooking with Beer
The winner of the Ninth Annual Heineken "La Parade des Chefs" Culinary Competition, which took place at the International Restaurant and Foodservice Show in New York City last January, was Franco Brattoli from the Columbia Inn in Montville, NJ. Judged on compatibility, presentation and originality of the entrŽe, Brattoli prepared a brunch that included a Heineken Martini, Amstel Light Mushroom Cappuccino Soup, Amstel Light Flash Oysters and Heineken Stone Island and Fancy Scallops.

Belgian Beer Consumer Group Calls It Quits
The Objectieve Bier Proevers (OBP), a Belgian beer consumers organization, has disbanded. Formed from many local beer consumer groups in Belgium (which have not disbanded), OBP was Belgium's representative to the European Beer Consumers Union (EBCU). OBP was also the producer of the famous 24 Hours of Belgium beer festival, held for the past fifteen years in Antwerp. A possible producer for a 2003 festival is unknown. Recent rumors from Belgium and the Netherlands hint at a new, better-organized OBP to emerge at some point in the future.

Pub Rules Survey Favors Changes
Results of a Campaign for Real Ale (CAMRA) survey of public views on pub opening hours show that the majority of adults in England and Wales support the government's plans to reform old liquor licensing laws by introducing more flexible opening hours for pubs. The survey shows that 75 percent of adults believe a pub should be able to open when the publican pleases, providing the local community is protected from excessive noise and nuisance. Sixty percent of adults believe there would be less disorder in town centers if pub closing times varied and 67 percent think adults should be treated as adults and should have the opportunity to drink in pubs at any time they choose.

A-B Files Suit Against Micro
Anheuser-Busch has filed a lawsuit against Caught-On-Bleu Brewery in Franconia, NH, for naming one of its beers Billy Budd (after the Herman Melville character). A-B claims that consumers will confuse Caught-On-Bleu's Billy Budd Classic American Ale with A-B's Budweiser.

New Hop
A new hop variety has been approved by the U.S. Department of Agriculture's Agricultural Research Service (ARS). Named "Newport," the new variety (15.3 percent alpha acids) is a high-bittering hop that is resistant to powdery mildew and downy mildew, two common problems for hop growers. Newport is a blend of several current hop varieties, including Magnum, Brewers Gold and Fuggles.

Barley Crops Down, Prices Up
According to the U.S. Department of Agriculture, last year's barley crop, 227 million bushels, was the smallest since 1937. In North Dakota, the leading state for barley production, the 2002 crop was down 28 percent. Production in Canada fell 33 percent. The reasons for the low yields are due to disease, drought and other weather problems. Prices have risen for barley from $2.35 per bushel last year to as much as $3.50 per bushel.

Cheap German Beer
Germany was awash in cheap beer last December -- with some cans selling for as little as five cents -- as shops cleared stocks in advance of a new recycling law that went into effect in January. The new law, designed to discourage "throw-away" beer containers, imposes costs of 25-50 cents on non-reusable cans and bottles. German recycling had fallen below a 72 percent minimum target set in 1997. Consumers must now return their empty beer cans and bottles back to the store where they purchased them -- not just any store, but the exact store where they purchased their beer -- in order to receive their deposit refund. Store owners complained that they didn't have storage space for an influx of empties, so they cleared their stocks at discount prices to make room. It's expected that the new recycling law will result in three billion fewer cans and bottles either disposed of as trash or litter in Germany, which produces 53 million hectoliters (45.1 million barrels) of beer each year. Germans drink about a third a liter of beer daily.

Frontier Airlines Serves Canned Microbrew
Frontier Airlines and Oskar Blues Brewery (CO) have signed an agreement under which Frontier will serve the micro's Dale's Pale Ale (in cans) on all Frontier flights. "It gives new meaning to the concept of 'flight privileges,'" said Dale Katechis, owner of Oskar Blues.

Boulevard Brewing wins BAA Award
Boulevard Brewing of Kansas City, MO, received the 2002 Sales and Marketing Excellence Award from the Brewers' Association of America (BAA) last November at the association's annual conference. The award was given to Boulevard because of its "effective, efficient market penetration." Founded in 1989, Boulevard Brewing is the largest specialty brewer in the Midwest, having grown between 15 and 20 percent in each of the last seven years. Last year's sales were in excess of 63,000 barrels of beer.

French Aim to Block Strong Beers
French tax authorities, with a law approved by the French Senate and National Assembly last November, have plans to enact a 50 percent increase in the price of beers with an alcohol content of more than 8.5 percent. The purpose of the law is to discourage teenage drinking and alcohol-related violence, but the practical effect will be to prohibitively raise the price of many specialty beers from other countries, especially Belgium. The association of Trappist brewers in Belgium, producers of many beers that would be affected under the new tax law, has protested the new tax levy with a complaint filed with the European Commission. A French beer consumer group, ATPUB, is lobbying the European Parliament to try to get the law rescinded.

Blood-Alcohol Limit Lowered in New York
New York State lowered the legal blood-alcohol limit to 0.08 percent, becoming the 32nd state to lower the limit to this level.

A-B has Top-Rated Super Bowl Ads
According to USA Today's "Ad Meter Real-Time Consumer Ranking," for the fifth consecutive year Anheuser-Busch had the number one Super Bowl commercial this year -- the "Zebra Official" spot. Altogether, four of A-B's ads placed in the top five Super Bowl ads.

Presidential Campaign Kicks-Off at Brewpub
U.S. Senator John Edwards (R-NC) opened his presidential fund-raising campaign at the Raleigh, NC, brewpub Greenshields Brewery & Pub.

Ommegang Sold
Brewery Ommegang (NY), producer of the Belgian-style ales Ommegang, Hennepin and Rare Vos, has been sold to one of its founding partners, the Duvel Moortgat Brewery of Belgium. Moortgat's U.S. partner in Ommegang, the import firm Vanberg and DeWulf, will remain as a consultant for Ommegang. Duvel Moortgat, founded in 1871, is an independent producer of specialty beers and Freya fruit juices. It has grown to become the fifth largest brewing group in Belgium. Seventy-six percent of its annual sales come from its flagship beer, Duvel, of which it sold 68,080,536 bottles last year, up eight percent from 2001. Other beers produced are Maredsous, Pilsner, Passendale and Bernard (a Czech brewery purchased in 2001). A newly created company, Duvel Moortgat USA, will take over import rights for Duvel for the eastern seaboard in the U.S.

Big Numbers at A-B
Anheuser-Busch, the world's largest brewer, achieved record high sales in 2002 as it shipped 101.8 million barrels of beer to wholesalers. This represents an increase of 2.1 million barrels (2.1 percent) over 2001. "For the first time, total domestic shipments exceeded the 100 million barrel milestone," said company president, August A. Busch IV.

New Chief at Miller
Norman Adami has been appointed the new CEO and president of SABMiller's North American operations, Miller Brewing. Adami's last position with SABMiller was as chairman and managing director of The South African Breweries Ltd. (Beer South Africa). He takes over the helm at Miller from John Bowlin, who headed Miller since 1999.

Tumwater to Close
SABMiller announced that it will close its smallest U.S. brewery, the Tumwater Brewery in Washington State. Four hundred jobs will be lost at the brewery, which opened in 1896 to brew Olympia beer. Miller acquired Tumwater in 1999.

Belgian Brewery in Florida
St. Sebastiaan Belgian Microbrewery, a micro and 320-seat brewpub, is planned for Spring Hill (Hernando County), FL, with a projected opening date this August. The owners of the project are Leen Sterkens and Serge Van Limbergen, both from Belgium. Sterkens hails from a family that has been in the brewing business for almost 300 years and owns nine breweries in Europe and Asia. She is the family's first female brewer and will be the brewer at St. Sebastiaan.

New Slogan for American Beer Month
American Beer Month takes place in July and the sponsoring organization, The Association of Brewers (AOB), has come up with the 2003 slogan: Discover the Flavors of Independence. The month-long event promotes American brewing and celebrates the diversity and variety of American beer.

Anti-Cancer Beer
Reports from Germany state that scientists are working on a beer that may help fight cancer. The antioxidant xanthohumol, present in hops, has been shown in lab studies to stem the growth of tumor cells. German scientists are experimenting with adding xanthohumol to beer, working with an un-named Bavarian brewery. Sales of the "anti-cancer" beer may begin later this year. Further tests are necessary to determine if the augmented beer will actually be effective in preventing cancer in humans.

Golf All Night Under the "Midnight Sun"
Amstel Light is sponsoring Time4 Media's annual "Iceland Open" amateur golf tournament, taking place in Reykjavik, Iceland, on June 23-29. With round-the-clock daylight in Iceland due to the Summer Solstice, the 36-hole tournament features tee times at midnight and two practice rounds played on two of Iceland's finest golf curses: The Reykjavik Club and The Keilir Golf Club. If four rounds of midnight golf isn't enough excitement for participants, other activities include hiking, white water rafting, soaking in mineral hot springs and Reykjavik's world-renowned nightlife.


INTERNATIONAL NEWS ROUNDUP

Argentina
Brazilian brewer, AmBev, the fourth largest brewer in the world, has received permission from regulatory authorities to acquire 37.5 percent of the Argentine company Quinsa, which owns Quilmes, Argentina's largest brewer and a market leader in Bolivia, Paraguay and Uruguay. Following this announcement, Heineken sold its 15 percent holding in Quilmes.

Austria
Austrian drinks group BBAG, owner of beer brands that include Goesser and Zipfer, is reportedly looking for a major international brewing group with which to partner. SABMiller, Interbrew, Heineken, Scottish & Newcastle and Carlsberg are all possibilities. BBAG is a market leader in Austria and Romania and in the top three in Hungary.

Belgium
Belgium's second largest brewer, Alken Maes (owned by Scottish & Newcastle), will close its brewery at Waarloos.

The new CEO at, Interbrew, the world's third-largest brewer, is John Brock, formerly chief operating officer of the soft drinks and confectionery group, Cadbury Schweppes. He replaces Hugo Powell, who is retiring from Interbrew.

Bulgaria
Carlsberg has increased its stake in Bulgarian brewer, Pirinsko Pivo, from 67.17 percent to 94.5 percent.

Canada
Sleeman Breweries will create a new company, La Brasserie Sleeman du Quebec, in order to increase sales in Quebec.

Chile
Heineken has acquired 50 percent of Irsa, the company that controls Chilean brewer, CCU.

China
Tsingtao (China's largest brewer) shareholders have given approval to the investment being made in the company by Anheuser-Busch. Last October A-B said it would increase its stake in Tsingtao to 27 percent (from the current 4.5 percent) by the end of the decade.

Carlsberg's newest Chinese acquisition, its third brewery in that country, is the Kunming Huashi Brewery, located in Kunming, the biggest city of Yunnan province in southwest China, bordering Vietnam, Laos and Myanmar. Carlsberg will make the purchase, subject to the approval of Chinese authorities, through Carlsberg Asia's subsidiary, Carlsberg Brewery Hong Kong. Carlsberg Brewery Hong Kong currently owns 99 percent of Huizhou Brewery in southern Guangdong province and 25 percent of Tsingtao Beer Shanghai Ltd.

Croatia
Heineken has acquired 68.8 percent of Karlovacka Pivovara, the second largest brewer in Croatia.

Czech Republic
Plzensky Prazdroj, the largest Czech brewery (owned by SABMiller), produced a record 9 million hectoliters (7.7 million barrels) of beer last year, an increase of 13 percent from 2001 and the third consecutive annual rise. Exports of the brewery's flagship brand, Pilsner Urquell, were up by 36 percent to 1.26 million hectoliters (1.07 million barrels).

The European Union (EU) has granted protection to geographically defined designations of beer brewed in the Czech city of Ceske Budejovice -- Budejovicky Pivo and Ceskobudejovicky Pivo -- as part of the Czech Republic's accession agreement with the EU. Two breweries in Ceske Budejovice, Budejovicky Budvar (brewer of Budvar, known as Czechvar in the U.S.) and Budejovicky Mestansky Pivovar, now have the right to the Budejovicky Pivo name. Only Budvar, however, is allowed to use the Ceskobudejovicky Pivo name.

Germany
Warsteiner, which had sales fall 8.9 percent in 2002, will cut 152 jobs. The brewer stopped sales to German supermarket chain Lidl and raised the price of its beer last February.

Guatemala
AmBev is planning to invest $50 million to build a brewery in Guatemala.

Italy
Interbrew has terminated its license and distribution agreement, in place since 1995, with Heineken Italia. All Interbrew brands brewed and sold in Italy will now be under control of the Belgian brewing giant. Heineken Italia will launch its own line of specialty beers.

The strategic alliance in place since early last year between Royal Grolsch and Warsteiner Brauerei has been extended to Italy, where Warsteiner Italia now has the right to distribute, sell and market Grolsch. The two breweries' initial alliance was focused on buying packaging and raw materials.

Peru
Bavaria (Columbia) plans to buy Peruvian brewer, Backus & Johnston, the country's monopoly position brewer.

Poland
Carlsberg has acquired a further 9.9 percent of its partly owned Polish subsidiary, Carlsberg Okocim, from Bitburger Brauerei (Germany). Carlsberg now owns 71.47 percent of Okocim.

U.K.
U.K. cider group, HP Bulmer, has announced that financial difficulties may force it to consider takeover offers or possibly selling the company.


AWARDS

CAMRA Winter Ales Festival
Burton, UK -- January 23-25, 2003

Supreme CAMRA Champion Winter Beer of Britain 2003: Old Growler, Nethergate Brewery, Clare, UK (a 5% abv porter which also won in 1997)
Silver: Gale's Festival Mild, George Gale & Co., Horndean, UK
Bronze: Oatmeal Stout, Wentworth Brewery, Rotherham, UK

Category Winners

Old Ales & Strong Milds
Gold: Gale's Festival Mild, George Gale & Co., Horndean, UK
Silver: Dark Ruby Mild, Sarah Hughes Brewery, Dudley, UK
Bronze: Norfolk Nog, Woodforde's Norfolk Ales, Norwich, UK

Stouts & Porters
Gold: Nethergate Old Growler, Nethergate Brewery, Clare, UK
Silver: Wentworth Oatmeal Stout, Wentworth Brewery, Rotherham, UK
Bronze: Old Slug Porter, RCH Brewery, Weston Super Mare, UK

Barley Wines
Gold: Headcracker, Woodforde's Norfolk Ales, Norwich, UK
Silver: Christmas Ale, Harvey & Son Ltd, Lewes, UK
Bronze: Old Tom, Frederic Robinson Ltd., Stockport, UK

Great Alaska Beer and Barleywine Festival
Anchorage, AK -- January 17-18, 2003

1st Place: Auld Gnarley Head Barley Wine, Wild Duck Brewery, Eugene, OR
2nd Place: Old Guardian Barley Wine, Stone Brewing, San Marcos, CA
3rd Place: Arctic Devil Barley Wine, Midnight Sun Brewing, Anchorage, AK
Best Barley Wine in Alaska: Arctic Devil Barley Wine, Midnight Sun Brewing, Anchorage, AK

Strong Beer & Ale Festival -- People's Choice Awards
Scottsdale, AZ -- January 18, 2003

First Place: 3-way tie for first
Red Ale, BJ's Brewery, Chandler, AZ
Fat Bastard, Four Peaks Brewing, Tempe, AZ
Stone's IPA, Stone Brewing, San Marcos, CA

Second Place: 3 way tie for second
Strong Scotch Ale, Alcatraz Brewing, Tempe, AZ
Raven Maniac, Prescott Brewing, Prescott, AZ
Imperial Almond Stout, Bandersnatch Brewing, Tempe, AZ

Third Place: Bitternacht, BJ's Brewery, Chandler, AZ


NEW RELEASES

Stone Brewing's (CA) yearly edition of Old Guardian Barley Wine has been released. This big (9.91% abv) ale is brewed exclusively with Warrior hops. Available in 22-oz. bottles in order to accommodate the 453 words of back-label text written by brewer Greg Koch.

Fish Brewing (WA) has released Ingall's Extra Special Bitter under the brewery's Leavenworth label. An English-style ESB, Ingall's is a draft-only beer. Fish has also released the 2002 vintage of Old Woody, an oak-aged, bottle-conditioned, 10% abv beer in the Fish Tale Ales Artist Series. Available in 750-ml bottles.

Edelweiss Imports, Inc., importer of Tucher Weizen, has launched Becker's Lager in the U.S. The Becker's Brewery, founded in 1874, is located in southwest Germany. Available in 11.2-oz. bottles and 16.9-oz. cans.

The newest import from B. United International comes from the Wye Valley Brewery (U.K.). Butty Bach is a 4.5% abv Welsh bitter. Available in 16.9-oz. bottles and on draft.

BridgePort Brewing (OR) has released a new vintage of Old Knucklehead Barley Wine, the eleventh vintage since the beer's introduction in 1989. The current Old Knucklehead label features an image of Fred Eckhardt, a Portland-based beer and sake writer and contributor to All About Beer Magazine. BridgePort has also updated the packaging for its Pintail Copper Ale and Blue Heron Pale Ale, both named after indigenous Northwest birds. The new package designs focus on the native habitat of each bird.

Murphy's Stout and Murphy's Red Beer from Ireland have changed their canned packaging from 14.9-oz. cans to 16-oz. cans, both available in 4-packs. Murphy's Stout will also be available in 8-packs.

Rockies Brewing (CO) has added Sulley's Light Lager as a year-round beer, brewed with 2-row malted barley, Pilsen and Vienna malts and Hallertau and Saaz hops. The micro has also redesigned and repackaged its two flagship brands, Singletrack Copper Ale and Buffalo Gold Premium Ale, in 12-oz. longneck bottles in both 6- and 12-packs.

Cinder Cone Red is new from Deschutes Brewery (OR) as a spring seasonal. This amber ale is brewed with four kinds of caramel malt, a "hint" of dark roasted barley, East Kent Goldings and Tettnang hops. Available in 12-oz. bottles and on draft.

Smirnoff Ice Triple Black is a new malternative from Diageo, maker of the best selling malternative in the U.S., Smirnoff Ice. Triple Black is a clear beverage, whereas Smirnoff is cloudy from the added lemon flavors. Available in 12-oz. and 24-oz. bottles

Bacardi O3 is a new malternative from A-B, incorporating the tastes of oranges, tangerines and mandarin oranges. The release date was a clever 03/03/03.



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