Molson Coors’ sales fall on lower beer demand in Canada, Europe

Molson Coors says it is looking to Colorado for insight on the possible effects the legalization of marijuana in Canada could have on its beer sales.

Stewart Glendinning, CEO of Molson Coors International, was asked by an analyst Tuesday during the company's quarterly earnings conference call for his opinion on the potential impact the legalization of marijuana could have on Canada's beer sector.

"Cannabis is something we are thinking very carefully about, not only as a business but also as an industry," Glendinning, who was the former head of Molson Coors' operations in Canada, said in response.

"There's just a lot we don't know at the moment. ... It's steady as she goes because of the lack of clarity about the deployment of the drug itself."

It's not clear whether Glendinning's comments are a signal that Molson Coors views a recreational marijuana industry as a threat or opportunity. He did not elaborate and the company did not return calls seeking clarification.

But during the call, Glendinning said Molson Coors (NYSE:TAP) is looking to Colorado, the state where the recreational use of marijuana was legalized in 2013 and where the company is headquartered, for guidance.

The federal government has said it plans to introduce a bill in the spring to legalize the recreational use of marijuana.

Stephen Beaumont, an industry watcher and Canadian author on beer trends, said the Colorado breweries he follows have not reported any impact on sales.

"It could be one of those things that hit more at mass-market breweries because if someone wants to get a buzz on instead of buying Coors Light, they'll buy some weed," he said.

"On the West Coast of the United States, craft beer and marijuana have happily co-existed for quite some time."

Brittany Weissman, an analyst with Edward Jones, said any possible effect from marijuana legalization in Canada on Molson Coors' beer sales will be mitigated. She said that's due to the fact that Canada represents a smaller share of the company's market following the US$12.2 billion acquisition of Miller brands and SABMiller's 58 per cent stake in MillerCoors.

Source: http://www.castanet.net/edition/news-story-179745-6-.htm


Geographically, Europe contributes a major portion in the global beer market revenue. Developing economies such as China and India would largely contribute to the growth of this market. 
The Asia Pacific market should garner a revenue of $202.4 billion by 2020, growing at a CAGR of 7.3% over the forecast period 2015-2020.

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Heineken hikes beer sales but sees bigger currency hit

Heineken, now the world's second-largest beer maker, sold more beer than expected in the third quarter and retained its full-year profit margin forecast, although said the impact of currencies would be worse than previously thought.

The maker of Europe's top-selling lager Heineken, Tiger and Sol said it sold 2 percent more beer on a consolidated basis than a year earlier, with strong growth in Mexico and Asia, notably Vietnam, but lower volumes in Russia, Egypt and the Democratic Republic of Congo.

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Heineken also fared well in most European markets, due to favorably beer-drinking weather.

Heineken has now become the world's number two brewer, although the gap between it global leader AB InBev has widened after the latter's takeover of SABMiller earlier this month.

"Performance in the third quarter was robust despite strong comparatives in Americas and Europe, and a tough environment in Africa Middle East & Eastern Europe," Chief Executive Jean-Francois van Boxmeer said in a statement.

Overall beer volumes were 54 million hectolitres, higher than the average expectation in a Reuters poll of 53.1 million.

The company said it still expected its operating margin would expand by about 40 basis points over the year, slowing down following a 124 point expansion in the first half.

It did not give its margin for the third quarter.

However, it forecast an even heavier currency translation impact, now at 215 million euros at operating profit and 115 million euros at net profit level, from 200 million and 110 million euros seen before.

Source:http://www.cnbc.com/2016/10/26/heineken-hikes-beer-sales-but-sees-bigger-currency-hit.html

Brexit: Cobra beer baron Karan Bilimoria slams proposed cuts to UK immigration

British business leaders are concerned that a push to dramatically wind back immigration could seriously harm the UK economy.

Conservative Prime Minister Theresa May has vowed to reduce net migration from over 300,000 a year to less than 100,000, and introduce a controversial register of foreign workers.

Karan Bilimoria, an Indian-born entrepreneur who co-founded the Cobra Beer empire, accused the Conservatives of losing the plot, and said countries like Australia would benefit from Britain turning its back on immigrants.

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"We have the lowest level of unemployment in living memory - we have the highest level of employment in living memory, and that's in spite of having over 3 million people from the EU living and working in the UK," he told 7.30.

"What would we do without those 3 million people from the EU living and working in the UK?"

Beer cashed in on UK curry house boom

Lord Bilimoria arrived in England from India as a 19-year-old student. While studying law at Cambridge, he and a friend decided the English needed a new beer - one specifically made to drink with curries.

"Our first company car was a £295 battered Citroen called Albert, and we would drive it and sell our most expensive Indian beer," he said.

"It could take fifteen cases and if you looked down you could see the road through the floor of the car."

Cobra beer is now sold in 99 per cent of licensed Indian restaurants in the UK as well as in 45 other countries around the world.

In 2006 the beer baron was appointed to the House of Lords and in 2014 became chancellor of the University of Birmingham.

Lord Bilimoria said he got his opportunities because the UK opened up under Margaret Thatcher.

"When I came to this country as a student in the early 80s, Britain was the sick man of Europe, Britain had no respect in the world economy," he said.

"Entrepreneurship was looked down upon as second-hand car salesmen."

Now, he says, the Conservative Government is sending out all the wrong messages.

As well as wanting to cut immigration, the Government is also proposing more restrictive international student regulations.

"Instead of setting a target to increase the amount of international students, in a way a country like Australia who gets it does, we put them off and send out these negative signals," Lord Bilimoria said.

"It's just economically illiterate to do that. Australia, I know, are laughing at us.

"I've heard from senior Australian Government officials saying, 'We thank you for your immigration policies in the UK because you are sending the brightest and best from countries like India to us in Australia and we welcome them.'"

Read more at: http://www.abc.net.au/news/2016-10-25/business-leaders-say-immigration-changes-threaten-uk-economy/7959766

Boston Beer Bubbles Up Despite Another Painful Quarter

Shares rose even after the craft brewer fell well short of expectations. Here's why.

Boston Beer (NYSE:SAM) stock climbed more than 4% Friday, after the company released third-quarter 2016 results, but that doesn't mean Boston Beer was toasting its own performance.

Boston Beer's headline numbers

In fact, on the surface there was little to like about Boston Beer's report. Quarterly revenue declined 13.5% year over year to $253.4 million, net income fell 18.4% to $31.5 million, and -- thanks in part to Boston Beer's repurchase of around 807,000 shares of Class A common stock for $138.4 million during the quarter -- net income per diluted share fell a more modest 13% year over year, to $2.48.

By comparison, and though we don't typically pay close attention to Wall Street's quarterly demands, analysts' consensus estimates predicted Boston Beer would achieve higher earnings of $2.60 per share on revenue of $279 million.

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Depletions -- a key measure for how quickly Boston Beer's products travel from warehouses to consumer outlets -- declined 8% year over year, marking a negative acceleration from the metric's 5% slide last quarter. This also means that early improvements in depletions trends that management cited as of last quarter's report didn't hold for the duration of the quarter. To be fair, though, Boston Beer CEO Martin Roper did caution at the time that "it's too early to determine if these improvements are sustainable."

"Our total company depletion trends declined in the third quarter at a slightly faster rate as we lapped new beer launches from last year," explained Boston Beer founder and Chairman Jim Koch, "and we saw a further slowdown in growth across the craft-brewing industry."

Roper elaborated that depletions declines in Q3 were primarily driven by decreases in Boston Beer's flagship Samuel Adams, Angry Orchard, Coney Island, and Traveler brands, which were only partially offset by continued gains from the Twisted Tea, Truly Spiked & Sparkling varieties.

Thirsty to find growth again

So why did the market reward Boston Beer stock with Friday's jump?

For one, keep in mind that Boston Beer is still down more than 30% over the past year as of this writing. That decline might be enticing for any investors still optimistic for the prospects of the craft-beer market over the long term. And Boston Beer isn't sitting on its heels as it continues to get pressed by both larger and smaller rivals encroaching on its niche.

In keeping with a comprehensive review of Boston Beer's brand messaging and packaging completed (ahead of schedule) last quarter, Koch noted that a "major packaging update for Samuel Adams Boston Lager has already shipped, to be followed by new Seasonal and Rebel packaging by the end of the fourth quarter."

In addition, Boston Beer expects to complete the national draft launch of its new Samuel Adams Rebel Juiced tropical IPA by the end of this month and has plans for "reimagining" its seasonal program with several promising new seasonal brews over the first three months of 2017.

On operational efficiency, financial guidance

But perhaps most intriguing were Roper's comments that Boston Beer is now conducting another comprehensive review, this time of its brand strategies and activation plans with the aim of ensuring "our investments are effective and efficient in building long-term brand equities."

This news naturally spurred some rumblings on Wall Street of whether Boston Beer might be considering whether to put itself up for sale. But until an actual acquisition scenario materializes -- and in light of management's decidedly long-term comments (more on that in a moment) -- I think investors would be wise to focus first on the actual business.

Read more at: http://www.fool.com/investing/2016/10/23/boston-beer-bubbles-up-despite-another-painful-qua.aspx

Will the craft beer industry boom or bust?

By the end of 2016, New York State craft brewers will make about a quarter billion pints of beer. That's a lot, but still only enough to give us drinking-age New Yorkers less than two per month. That's why people like Brewers Association Chief Economist Bart Watson say the industry is fine.

https://www.flickr.com/photos/calflier001/6171442583

"The growth in breweries is built on solid demand fundamentals," Watson says. "Beer lovers want fuller flavor, they want more variety, and they want beers from small and independent local producers."

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New York brewers, like Pat Greene at Chelsea Craft Brewing Company, can get New York ingredients, which is what the people want.

"The population is younger, professional, well educated, and also enjoys fresh ingredients in their products not only in their beer but their food and their wine," Greene says. "And the brewer now can make those small batches of beer and serve them locally."

The big difference between the bust of the late 1990s and today is the beer is just a lot better. The people making it are smarter and more experienced. The ingredients are fresher and local. And this is another thing these breweries have: tap rooms. The tap rooms let them sell directly to the consumer. That helps them withstand downturns in the industry.

"For many breweries, those direct sales, they're a lifeline," Watson says. "And even if sales decrease in wider distribution we've seen breweries pull back to their taprooms and continue to stay in business."

"A lot of the breweries are designed just for that," Greene says. "Their equipment I'd say is a little bit bigger than a home brewer's where they can do small-batch beer and they know that every ounce of that is going to be sold at a retail price so their markups are good and they can survive."

Even if there is no bubble right now, craft beer sales are down. But companies like Boston Beer Company, the maker of Sam Adams, are playing a big role in that. They're still "craft" brewers but their sales are slumping. And while these producers are nowhere near as big as Budweiser or Miller, Fortune Magazine's John Kell says craft beer drinkers might feel like they're still too big.

"People kind of want to discover something new when they are discovering a craft beer so for a company like Sam Adams that's been around for over 30 years at this point doesn't feel very local," Kell says. "People are really excited about experiencing something that's new, and tasting something that's very local. When they travel they want to taste a local beer -- that's part of the experience."

So while the bigger brewers do have things to figure out, your smaller, local tap rooms will still be pouring plenty of pints for the foreseeable future.

Source: http://www.fox5ny.com/news/212750226-story

Craft beer revolution trickles down to South America

Think of Latin American alcohol and you are likely to think of wine and spirits.

Mexico has its tequila, Cuba has rum, Brazilians drink caipirinhas and in Peru they make pisco. In Chile and Argentina, the tipple of choice is often a cabernet sauvignon or a malbec.

You are less likely to think of craft beer.

But slowly, surely, the beer revolution that is so well established in northern Europe and North America is starting to trickle southwards.

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Across Latin America, small breweries are opening up, offering alternatives to the mass-produced brands of lagers.

These emerging microbreweries account for only a tiny fraction of overall beer sales, but that fraction is expanding quickly.

"Sales of craft beer in Latin America are growing at between 20% and 40% a year, depending on which country you're in," says Daniel Trivelli, president of Copa Cervezas de America, one of the region's biggest craft beer contests.

"Here in Chile, sales are growing at 25% and craft beers have around 2% of the overall beer market. We have around 250 craft beer breweries here, producing around 1,500 different beers."

Traditionally, Latin Americans have tended to drink light low-alcohol lagers, in part due to the hot climate across much of the region.

But that is starting to change as people acquire a taste for stronger, more complex brews.

"In Brazil, despite its economic crisis, craft beer sales are growing at 40%," Mr Trivelli says.

"They still represent only around 0.8% of all beer sales but in a country of 220 million people who consume 69 litres of beer per capita each year that's still significant."

Brazilian brewers are also starting to experiment with their country's dazzling array of tropical fruits.

"The Brazilians could take over the world in beer if they use their unique ingredients," says Kristen England, a US beer expert and a judge at the recent Copa Cervezas de America contest staged in Chile.

"The Brazilians have fruits we've never heard of in the US."

Fernanda Meybom, a Brazilian beer sommelier, says some Brazilian brewers age their beers in barrels previously used to store cachaca, the powerful sugar-cane spirit which forms the basis of the country's national cocktail, the caipirinha.

"It gives the beer a unique taste," she says. "Of course, in Brazil we're more famous for our cachaca and caipirinha than our beer, but there's room for everyone. You can make a really good craft beer using traditional Brazilian elements."And it is not just the Brazilians who are experimenting.

Read more at : http://www.bbc.com/news/world-latin-america-37607727

Germany’s Biggest Beer Rivals Actually Taste the Same, Study Says

Deeply entrenched rivalries are what makes the world go round. New York versus New Jersey. Giga Pets versus Tamagotchi. Boat propellers versus manatees.

And then there are beer rivalries: Cologne versus Düsseldorf is one particularly fraught example. Both cities, located in North Rhine-Westphalia region of Germany, claim to have the superior beer. But a new study, published online this week, is putting a big damper on the long-established competition. Cologne loves its golden pale ale Kölsch, while Düsseldorf lauds its dark copper-colored Altbier. The study, however, says the two beers taste exactly the same.

PC via Flickr user Derekskey

The rivalry between the two cities—which are located less than 40 kilometers apart—extends to more than just beer preferences. The residents of the two cities each allegedly claim to be smarter. And better at celebrating Karneval. In other words, they’re unlikely to feel kindly about this new study.

In fact, if you go to Düsseldorf and order a beer, you may be told “Ex, oder Kölner.” This evidently means “bottoms up, or you must be from Cologne”—an insult of the first order. And if you show up in Cologne and order an Altbier, you’re not going to make many friends.

Enter Professor Helmut Quack (seriously!) of the Düsseldorf University of Applied Sciences. Quack says that he tested 50 men from Düsseldorf and 50 men from Cologne. When asked which beer they preferred, 78 percent of each group picked their hometown beer. But when they were blindfolded, all hell broke loose.

They couldn’t tell the beers apart.

When asked whether they liked the beer, whether it tasted fresh, mild, or herby, their answers were “nearly equal,” the researchers say. Then the main event: the participants were asked to identify the beer. That’s when their long-held allegiances came crashing down: The participants gave the correct answer only 55 percent of the time, which is pretty much the same results as if they had randomly chosen.

Read more at: https://munchies.vice.com/en/articles/germanys-biggest-beer-rivals-actually-taste-the-same-study-says

European Beer Market Quenches the Thirst of Drinkers Worldwide

European beer brands are banking on more sales in 2016. Brands here are eyed by Asian companies who want to have their fair share.

Europe is definitely a fascinating destination Besides multiple cultures, influences and languages, one of the greatest aspects of this old continent is; people here enjoy drinking. European simply love beer! While each country in the region has their national beer some of the most exciting ones include Guinness (Dublin), Heineken (Amsterdam) and Tuborg (Copenhagen). Research analysts at Allied Market Research assessing the industry share and size, consumption volume, growth rate and opportunities indicate that the alcoholic drink dates back to the period when monks preferred brewing their own beer and were permitted to sell it to the public directly. Beer were then stored in cellars and under the courtyards. Shade of the chestnut trees kept the beer cool.

Brands Sell More Beer than Ever

The market shares of few beer companies rose to a record high. Truly, many good factors have finally converged in for the most popular brand, Heineken. Sale of this brand remain high in different regions including Eastern Europe. The brand has been focusing on the underlying trading environment across different countries. They have learnt the hard way when it comes to generating currency in the beer market.

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The Entire World Seems Thirsty for Europe’s Beer     

When it comes to beer, Europe preserves a rich culture and repute. The region has won many customers worldwide. One of the renowned brands, Heineken shot to fame when it sold over 200 brands over 200 brands across 179 nations in Europe. The continent holds significance as an expert backed by a long-standing culture of beer production. Countries such as Czech Republic, United Kingdom, Belgium and Germany are known for producing world’s finest beer.

Japanese Beer Buys Growth in European Countries

Few large brewing companies are believed to have invested in beer brands as well as manufacturing units in Europe. In a recent incident Japan’s famous brewery Asahi is said to have made a generous investment of EUR 2.55 billion in two beer brands Grolsch and Peroni. The deal also includes a manufacturing unit from AB InBev. The world’s favoured brewing brand AB InBev, has put both the brands for sale as an initiative to receive the consent of competitive authorities globally for its collaboration with SAB Miller, considered as world’s second – largest beer brand. The collaboration is likely to result in a new mega-organization that will account for about 30 percent of the world’s beer industry.

Rapid growth in the sector has persuaded research analysts at Allied Market Research to publish a report titled “World Beer Market - Opportunities and Forecasts, 2014 - 2020". The study outlines that the sector is ready to register a CAGR of 6 percent by 2020. This clearly indicates that Europe would definitely have a fair share in the profits.

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Scientists Turn Urine Into Beer !

The next time your warm beer tastes “like piss,” it may just be because it really is piss. Thanks to scientists at a Belgian university, there’s now a machine that can turn urine into beer.

Pissing drunks everywhere, rejoice.

The machine actually turns the urine into two things: drinkable water and fertilizer. It uses solar energy to heat the urine, which then passes through a membrane separating the water from all the other nutrients found in urine.

The potential for such a machine is vast: Researcher Sebastiaan Derese said that it could do anything from bringing drinkable water to rural areas of the world that don’t have clean water to saving money by being installed in airports. Or, as we noted, yes, it could be used to brew beer.

Source : http://www.foxnews.com/health/2016/08/07/scientists-turn-urine-into-beer.html

Noted urine aficionado Bear Grylls must be head over heels at the news.

The Belgian researchers have been working on this machine for two and a half years, testing it at a music festival in Ghent. They ended up with 1,000 liters of water, thanks to the attendees. In order to fulfill the circle of life, the water will be turned into beer — the form that it probably began as.

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Happy International Beer Day. Let’s celebrate

Young Henry's brewery is one of the most popular breweries in NSW.Source:News Corp Australia

THOSE taking part in International Beer Day festivities across the globe are encouraged to give each other the gift of beer on this sacred day. So we have put together a list of the top three Aussie Breweries and Beers in celebration.
Top three Aussie BeersPirate Life IIPA This South Australian brew is the perfect balance, and possibly the best IPA out there. Fixation IPA They say it themselves, they are “obsessed with brewing the perfect IPA” and they have done it. This Byron Bay brewery has set a new standard for Australian IPA’s.Modus Operandi Former Tenant Red IPA The Sydney brewery has managed to create the best red beer in Australia, taking out Champion Australian Craft Beer in 2014.


Source :http://www.news.com.au/lifestyle/food/drink/happy-international-beer-day-lets-celebrate/news-story/47330ebe32f8fa622cc53b158f0ec6c4

Happy International Beer Day Australia Picture: John Appleyard

Here are the top three Aussie Breweries, based on recommendations 

Young Henry’s, Newtown, Sydney The brewery that has garnered a cult following due to it’s popular boutique beers, such as the Newtowner, and Rock n’ Roll vibe

Prancing Pony Brewery, Hahndorf, South Australia The brewery is in a small German town on the outskirts of Adelaide, known for its amazing German beer breweries. Prancing Pony used the process of grain brewing with small batches.

Mornington Peninsula, Mornington Peninsula, Victoria
This brewery is built inside an old factory with beers and a wood-fire oven proving popular with locals. This place is more than a brewery, it’s a destination.

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The Paramount to host an Olympics for beer lovers ! And Its TODAY !!!!!!!!!

If you win the Beerlympics on Aug. 4, your reward is a free tour and tasting at Blue Owl Brewing.

Although most of us can’t bend it on the beam like Gabby Douglas or slice like a fish through the water like Michael Phelps, we can do one thing rather well — drink beer.

And to the Paramount Theatre, that’s worth celebrating. In honor of the 2016 Olympics, launching Aug. 5 in Rio de Janeiro, Brazil, the Paramount is launching the “Beerlympics” as a one-night competition in the American-Statesman parking lot at 305 S. Congress Ave. The $25 tickets get you automatic access to the boozy contest, which will have fun backyard and tailgating games like giant Jenga, flip-cup and more.

You’ll also get a special Beerlympics cup, and beverages come included.

For more information, visit austintheatre.org.

To participate, either form a team of six or note when you sign up that you’re an individual, so the Paramount can add you to a team.

And if you and your teammates prove to be the best at beer-soaked fun, you’ll get a shiny gold medal for your efforts, of course — as well as something rather appropriate for games like these: a free brewery tour and beer tasting at East Austin’s Blue Owl Brewing. The top three teams, in addition to their medals, will also receive a free drink at the Beerlympics after-party at Aussie’s Grill down the street.

The Beerlympics, which begins at 7 p.m. Aug. 4, is the first event of Paramount Social Presents, a new type of programming aiming to “target the next generation of arts patrons and supporters,” according to the Paramount. Other upcoming events of Paramount Social Presents include a comedy show from Bridget Everett and a musical performance from the Skivvies.

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