Beer Battles

This beer news comes to us from a Wall Street Journal article from March 26 2010.

As I stated in past article reviews, the rise of “historically poor” countries economies has led to an increase in beer sales. America, look at places like South America and Africa for this is what we looked like to those countries when we were experiencing the rapid-expansion of the middle class; and to places like the ones i just mentioned, you to China. If you are not carful you to could end-up in the mess the American middle class is now finding itself. As a result of this new middle class in Africa, two beer brewers are now battling for beer supremacy in the ice boxes of middle class Africa. Heineken (the worlds third-largest brewer by volume) recently opened a large-scale brewery near Johannesburg which will brew Heineken and Amstel brands since the company stopped allowing SABMiller(who brews Miller Genuine Draft etc. etc.) to brew it for them back in 2007. As a result, the beer giant is taking to the TV in an effort to capture the market. Unlike conventional beer advertising that we are all with; in Africa the shows are sponsored by the beer makers. For example a show called “Class Act” which is like American Idol, where no-named contestants compete to win an agent, a trip to New York for acting classes and a staring role in a Amstel beer commercial and a soap opera called “Generations” where the Amstel brand is prominently placed allover the show. This is not necessary a new idea when it comes to brand placing here in America, we see it all the time like on CSI with all those swift working Dell computers that can pull up a perps record in a blink of the eye, which must just be a prop because anyone who has a Dell knows that the only thing it does in the blink of an eye is carp out! However I suppose it is not so much the fact that The beer advertisers are placing the beer in TV shows like the ones I just mentioned, but what that TV show is about. Generations is about a successful middle-class black family in Johannesburg, the prominent placement of the beer is telling the shows viewers, this is you, and this is your beer. In a sense telling this newly emerging middle-class how to be when it comes to what to drink. To all the people in the newly emerging affluent classes I beg of you. Don’t accept the well played advertising of the big beer brewers as a guideline as to what you should drink, It is not as if you all just started drinking beer for the first time. I know that you have been drinking it before you had more money to piss away on it, so yes go out and explore new opportunities that are being presented to you, but stick with your taste buds and not this newly found sense of who and what you which has come from you new found affluence. Remember beer should be about what taste good not what looks good.

Wanted: more brew pubs in Houston, NOW!!!!!

Todays beer news come from a Houston Chronicle newspaper insert that comes out every Thursday called Preview which gives a general rundown of what is going on during the weekend and where to go to eat and drink. This article I am reviewing is called “Brew pubs’ market is flat” and I could not agree more. The article talks about the lack of brew pubs in Houston despite a market that is ripe for such venues. Apparently back in the 90’s there were ay least three other brew pubs in Houston, it looked as if Houston was starting to become a beer lovers town. However, for one reason or another all but one brew pub (Two Rows) has gone the way of the do do bird. Today as brew pubs, like the sand hill crane seem to be making comebacks in other parts of Texas like Austin and San Antonio. Houston, a port city no less is stuck with just one lousy brew pub. It has been quite sometime since I went to the Houston location but from what the author of this article says, not much has changed. The place reeks of corporate conglomo franchising and that is so sad because in my opinion a brew pub should be anything but. A true brew pub in my mind is remenisent of a whole in the wall eked out of some old brick building in a historic part of town, run by guys who have full beards wear clothing from places like whole earth provision company to work and drive an old beater Isuzu trooper with Kinky Friedman stickers on the back glass. The food at Two Rows is lackluster at best and the beer was uninspired as well. Houston deserves better in the way of brew pubs and brewers. Houston is ready and as I stated before the demand is there it just seems that all we need now is some intrepid brewers and perhaps one cleaver “C” to help out with the location selection, but I digress. from the article it sounds like the Texas hill country is the place to be for good brew pubs and beer. Sounds like someone needs to go on a road trip.

“This Bud’s Screwed”

This bit of beer news comes to us from a March 5th 2010 Wall Street Journal Article titled “U.S. Sales Slump Clouds Outlook for Anheuser” However, “This Bud’s Screwed” sounds like a more appropriate title for the article. Apparently due to the state of the economy in America and Europa, two of Anheuser-Busch/InBev’s prime beer consuming countries the outlook for profits seems grim at best. in 09 the amount of beer that Anheuser sold dipped seven percent from the previous year when the onset of the economic hangover we are currently in was just starting to creep up on us the way a real hangover does, as we sit guzzling down the suds in extreme excess the night before. However, even with the companies two prime cash pipelines “sobering up” there is a silver lining in Anheuser’s can in the form of Latin American sales. Some of the reasons that America and Europe markets are doing so poor and Latin America is not is that in Europe the slump is being blamed on the aging population which is turning to wine instead of beer as they “grow up”. I am highly suspect of that claim, just look at places like England and Germany. The last blog I did was about how much fighting was going on with beer glasses. You can’t expect me to believe that all that beer related carnage is being portrayed by young wanker alone, beer drinking as a way of life there as it is in places like Germany. The last time I checked October feat was about Beer once again beer drinking is a strong bar of the culture and not going to go away any time soon as such. However, in america the reasoning sounds a little easer to swallow.

1) due to the slump in the U.S. economy less people have money to piss away on beer.

2)Young men, Anheuser’s core consumer are finding themselves unemployed of which the article says that “the us jobless rate among males age 16 to 24 stands at 22.5%” according to the Bureau of Labor Statistics.

Meanwhile down in Latin America thanks to a 2009 wage hike which and some cleaver re-packaging of the beer (Remember when Bud lite cans got taller and sleeker looking? Even I found myself almost swayed to pick up the swill solely based on the new can design, however I am proud to say my “taste Buds” were not as easily tricked. Trick me once shame on you trick me twice shame on me.) the newly emerging Latin American segment of the market is doing very will in terms of “brand preference”. If Anheuser-Busch/InBev wants to remain as a beer behemoth in the American and European markets as it has in the past it needs to adapt to the new frugal consumer markets. Perhaps focusing on what is inside of the can and not on the outside is what needs to be done here. If you want to hold onto the European markets, brew beers that have a little complexity to them, an example of what to stay away from in terms of taste is Stella Artois, the Budwiser of Europa and go for something with a little more flavor like say wells Banana Bread Beer. As for American consumers what i think it will come down to is value. As we all reevaluate our spending habits the general populous will want a beer that tastes good and is a good value. Thanks to the micro-brewers of America the taste revolution has beer going on for quite some time. American now have an alternative to what has been the big three of brewing (Budwiser, coors and Miller). As the screws get tighter people will look for value in flavor and price. Because we all know that no matter how bad it get people will continue to drink, however they will now be drinking smarter. Smarter with there money and there taste buds.