More on the Frightening Trend of Brewery Consolidation


<editor's note>
From the Real Beer Page Mail
</editor's note>

A-B, TSINGTAO STRENGTHEN ALLIANCE
Tsingtao Brewery Co., which has purchased 45 smaller Chinese rivals in 
the past three years, may use some of a planned $182 million investment 
by Anheuser-Busch to buy breweries in the United States. As part of the 
expanded cooperation plan announced last month, Anheuser-Busch said it 
was raising its stake in Tsingtao to 27%, from 4.5%. That gives the 
U.S. brewer new footing to help it penetrate the Chinese market, where 
beer consumption is growing six times faster than in the United States.

MANCHESTER WORKERS SEE CHANCE TO KEEP BODDINGTONS
The European Union could end up helping workers at the Manchester, 
England, Boddington brewery keep their jobs. Brewery owner Interbrew 
wants to move the majority of production to Preston and South Wales 
because it says it needs to save £3.5m and shed 80 jobs. But A European 
Union ruling might force Interbrew to stay in Manchester or change 
advertising that claims the beer is "locally brewed." "Interbrew stakes 
its fame in the export market on the fact that Boddingtons is brewed 
locally, with over 200 years of brewing tradition," Manchester Euro MP 
Arlene McCarthy said. She said that it would be misleading and a breach 
of trade description rules, for Boddingtons to continue to trade as a 
locally brewed beer if it moves out of Manchester. Newcastle Brown ale 
has its regional identity protected by the European Union's Protection 
of Geographical Indications ruling, which means it can only be produced 
in the area from which it originated.

CAMRA PAINTS GRIM FUTURE IF MERGERS CONTINUED
CAMRA, the Campaign for Real Ale, is predicting huge changes in the 
British beer and pubs market over the next 30 years, resulting in an 
increased stranglehold by large global companies. It claims that by 
2032, if current trends continue: there will be just two major brewers 
producing two beer brands each; two big pub chains will control over 
50% of all pubs with an increase in themed identikit bars; nearly 8,000 
local community pubs will have closed, many having been turned into 
private houses; 60% of all beer will be drunk at home with people 
enjoying a pint in "virtual pubs" from the comfort of their arm chairs; 
an increase of 40% (to 600) in the number of small specialized 
breweries selling local real ales, but with a tiny share of the total 
market; and a pint of beer will cost 20 new Euros (or £25 in "old" 
money!)
   http://www.realbeer.com/news/articles/news-001775.html

DANISH BEER DRINKERS FACE DIMINISHING CHOICES
Denmark's beer enthusiasts say that a new beer bottle return system 
will reduce their choices after it goes into effect Dec. 1. The daily 
newspaper Jyllands-Posten reports that more than 100 different imported 
specialty beers will be pulled from the shelves. Among the brands lost 
will be Anchor Old Foghorn, Anchor Steam, Leffe Bruine, De Koninck, Old 
Speckled Hen, Abbot Ale, and Strong Suffolk. One of the stated goals of 
the new deposit system was to expand market competition and promote a 
larger selection of beers in Denmark. But, as it stands now, four small 
beer importers have decided to remove many foreign specialty beers from 
their stock. According to the importers, they haven't got the time to 
paste on the new bottle deposit labels, and can't handle the extra 
administration work required to register every specialty brew trademark 
with bottle recycling authority Dansk Retursystem. The Danish Beer 
Enthusiasts say the government is using environmental consciousness as 
an excuse to allow big breweries to squeeze the imported specialty 
brews off the shelves even though specialty imports amount to no more 
than two million bottles annually.  "Every year, Danes throw 221 
million wine bottles and an unfathomable amount of ketchup bottles in 
the bin without anyone bothering with the environment," said 
Enthusiasts chairman Martin Nielsen.

Back to November 2002 front page


Hogtown Brewers Newsletter
November 2002