Georgia, Mississippi Push for On-Site Sales
On-site beer sales could finally be coming to Georgia and Mississippi.
A compromise between lobbyists and Georgia lawmakers appears to have been reached that will allow for limited taproom sales, according to WXIA Channel 11.
Georgia wholesalers have resisted on-site sales for years, leaving craft brewers with a shell-game workaround, allowing breweries to sell tours and give away beer at the end. However, the times are changing.
“I am 99.9 percent confident that [wholesalers] will not have objection to it,” Rep Ron Stephens (R-Savannah) told the TV station.
It would appear that they shouldn’t. Stephens told the TV station that the state’s wholesalers helped him write the bill.
Meanwhile, Mississippi brewers are asking consumers to contact their state lawmakers and encourage them to pass a bill allowing limited on-site alcohol sales, according to WCBI TV. The bill has the support of the Mississippi Brewers Guild, the Mississippi Beer Distributors Association, the Mississippi Manufacturers Association, and the Mississippi Restaurant and Hospitality Association.
Mississippi is the only state in the country that doesn’t allow any form of direct sales at breweries to consumers.
Anheuser-Busch, MillerCoors Cut Malt Barley Contracts
In a blow to Montana’s barley growers, Anheuser-Busch InBev and MillerCoors will cut the amount of malt barley the megabrewers will purchase this year, according to the Great Falls Tribune.
A surplus of barley harvest in recent years has led to the cutback, which could be anywhere from 20 to 60 percent. It’s a significant loss for the state’s growers as the two companies make up about two-thirds of the barley grown in northcentral Montana, the outlet reported. If the cutbacks reach 60 percent, it could result in a loss of more than $65 million in potential revenues for Montana farmers.
“The past two growing seasons have resulted in large volumes of high quality barley, which has more than met the requirements of barley users,” ABI vice president of raw materials Russ Harville said in a statement issued in December. “As a result, for 2017, we are modifying our barley procurement to accurately reflect our needs. Anheuser-Busch has a long history of partnership with growers, and we look forward to continuing that partnership.”
Wheat prices have also declined for third consecutive year, reportedly pushing grain growers below the break-even point for year-end profitability.
However, Collin Watters, bureau chief for the Montana Wheat and Barley Committee, told the outlet that this is “more of a market correction.”
“I think it’s a concern for growers, but the sky isn’t falling,” Watters told the newspaper.
AB and MillerCoors Smack Talk
A verbal smackdown is brewing between marketing execs at Anheuser-Busch InBev and MillerCoors. The latest shot fired came from ABI U.S. marketing VP Marcel Marcondes, who told Ad Age:
“We are not going to create fantasy stories about our brands. We are never going to tell people to … climb mountains and things like this.”
Of course, that’s a knock on the Coors Light “Climb On” campaign.
MillerCoors CMO David Kroll returned fire, telling Ad Age, “We are pleased to see that ABI and Marcel are finally listening and following our lead … that building brands with meaning and purpose will help return respect to American light lagers and that leadership brands need to actually talk about the beer. Let’s just hope they don’t default again to using humor to make fun of beer drinkers or raising a meaningless mirror to generic social occasions. More cliché beer marketing from ABI would continue to be a hangover for our entire category.”
Meanwhile, the fight has been more than words, with Miller Lite lashing out against Bud Light’s NFL can promotion in recent ads.
Although Bud Light isn’t pushing mountain climbing, the beer maker is getting sappy with its “Famous Among Friends” campaign.
Meanwhile, after 32 years, Budweiser is dropping its sponsorship of Team USA.
ABI vice president of experiential marketing Eelco van der Noll issued a statement saying the company is always evaluating its sponsorships “as our business priorities evolve” and “adjusting our portfolio to reflect those priorities.”
Asahi Hungry for More Acquisitions
Following a $10 billion spree to acquire the European assets formerly owned by SABMiller, Tokyo-based Asahi Group Holdings is hungry for more.
“We are always studying potential targets,” Asahi president Akiyoshi Koji told Reuters. “We need to keep studying, so that we can stay sharp for good deals.”
Asahi has been hurt in recent years by an aging consumer base and declines in consumption, and industry data reportedly has shown a 12th straight year of declines in domestic shipments from Japanese breweries.
Last year, Asahi acquired Peroni, Grolsch and Pilsner Urquell, among other brands, through a combination of bank loans and bond sales, Reuters reported. The moves have pushed Asahi’s net debt to more than five times of its earnings before interest, tax, depreciation and amortization.
Possibly on the radar for Ashai is a bid for Vietnam’s state-run Saigon Beer Alcohol Beverage Corp. The company is also reportedly reviewing its portfolio of minority interests, which include China’s Tingyi Asahi Beverages Holding Co Ltd and Tsingtao Brewery Co Ltd.
“We have to think what the best way is for our alliance with Tingyi and Tsingtao,” Koji told the outlet. “Under the current structure, they have become purely financial investments for us.”
Heineken in Talks to Purchase Kirin Holdings’ Brazilian Unit
Heineken appears to be in line to purchase the struggling Brazilian unit of Kirin Holdings, according to Reuters.
A deal between the Dutch brewer and Brasil Kirin, which runs 12 factories in the country, could come as soon as February.
Full-Strength Beer Push on in Kansas
The movement to sell full-strength beer and wine in Kansas grocery and convenience stores is receiving a renewed push. The latest proposal would make sales legal as soon as July 2018, according to CSP Magazine.
The legislation is similar to the law passed in Oklahoma last November. However, liquor stores would remain the exclusive spirits seller in the state.
The Kansas Senate rejected a similar proposal in May 2015, but the new bill comes with support from Republican state Sen. Sean Tarwater.
“Kansans have long expressed their frustration with Kansas liquor laws, and it’s time that we as a legislative body take action to create equity in the marketplace and allow consumers the freedom to decide where they purchase their adult beverages,” Tarwater told the magazine. “It’s not responsible to have policies in place that encourage shopping across the border. We need to retain business in Kansas, and improving how alcohol is retailed is one to keep Kansas money in Kansas.”
Twelve Rounds Brewing Faces Boycott After Owner’s Facebook Slam on Women’s March
A rant by Twelve Rounds Brewing owner Daniel Murphy on his personal Facebook page criticizing last weekend’s Women’s March has led to boycotts of the brewery and its beer being dropped by several Sacramento restaurants and bars, according to the Sacramento Bee.
Last Sunday, Murphy wrote of the Women’s March: “I am disgusted at all of the people and politicians that supported this anti-Trump event.”
That led to a deeper dive into Murphy’s social media feed, which returned posts calling President Barack Obama a traitor, opposition to gay marriage and support for deporting all Muslims in the U.S.
The paper reported that Twelve Rounds’ tasting room remained crowded, but Murphy was absent. In a statement, he told the newspaper that he’s taking “some time away from brewery operations to do some self-reflection and focus on my family.”