The Beer Tap

Thoughts on GABF Winners

Over the weekend, I finally had the time to print out and ponder all of the winners from last weeks GABF.  I saw a few familiar names, but mostly lots that falls into the category of "Never even heard of".  Let's start with the familiar...

In the Wood- and Barrel-Aged Sour Beers category, Temptation by Russian River took the Silver.  They also picked up another Silver for Blind Pig in the American-Style India Pale Ale category.  Russian River is a brewery that you can trust to put out very enjoyable beers and I certainly missing having access to them now that I am no longer on the West coast. 

The brewery that helped "raise" me in my craft beer drinking ways, St Arnold, won Gold in the German Style Kolsch category with their Fancy Lawnmower beer.  In the hot Texas summers, an easy drinking beer is a must.  Luckily they approach easy drinking without sacrificing taste!

Moylan's Brewing took Gold and Silver in the Imperial or Double IPA category for Hopsickle and Moylander respectively.  My first Moylan's experience came years ago on a trip to San Fran for New Years with Kilt Lifter.  A malty Scotch Ale that I always add to the cart when I see it!

Other winners I enjoy: Hog Heaven by Avery (Silver in Imperial or Double Red); Big Bear by Bear Republic (Silver in American-style Stout); Alaskan Smoked Porter 2004 (Bronze in Aged Beer); Four by Allagash (Bronze in Belgian-Style Abbey Ale); Double Cream Stout by Bells (Gold in Sweet Stout) which I have a clone recipe for and love to brew!

And of course the larger brew pubs also had a good showing with various locations of Gordon Biersch, Rock Bottom, and BJ's all taking home a medal.  Its great to see that they encourage the development of new recipes and experimentation even in these more corporate chains.  However, something tells me if they tried to keep the brewers down, there might be a revolt!

The award for complete domination of a category goes to Miller in the American Style Specialty Lager with Icehouse, Mickey's Ice, and Mickey's Malt Liquor winning all of the medals.  With 16 total entrants, I am wondering who else entered outside of the big three. 

So what about the less familiar?  To be honest way more than I'd like to admit fall into this category.  On a positive note...that means there are many more great beers to taste.  Places to seek out when I travel.  One has to have goals in life and it looks like trying to taste every beer made in the US is going to keep me busy!

Also, I found it interesting to discover how many categories there are: 75.  Since I have been digging into the world of finer American beers, there have always been a large number of style categories.  It feels like the list only continues to grow each year.  In no way is that a complaint!  Merely an observation.  Innovation in the brewing world has driven some of that increase.  Look at Barrel-Aged for example.  It was normal practice to store beer in barrels back before stainless kegs, but many of those were coated with pitch and not exposed to the wood.  Now beer is being fermented and stored in barrels after being used in the production of liquor and wine.  And some of those beers are normal alcohol level, strong, or sour leading to three categories just for the use of wood.  The strong ale category was popular as well with 72 total entrants.

The most entered category should be no surprise with 120 in American-style IPA.  Other popular categories among brewers include American-style Strong Pale Ale at 91 entrants, Double IPA and Red near 70, and American-style Pale Ale at 68.  Hops and higher alcohol are always a good direction for me.

Most important observation from studying the list of winners...going to the GABF is the better way to go.  I'll see you in Denver next Fall!

Miller Coors and Distribution

A very big announcement in the beer world today!  SAB Miller and Molson Coors have created a new joint venture to produce, market and sell their brands here in the US.  The deal helps the two companies gain scale while delivering an estimated $500 million dollars in annual savings according to the press release.  They will produce a combine 69 million BBLs which still trails A-B and their US sales of over 100 million BBLs.  I do not usually report too much news on the larger brewers, but I think that this could have an effect on the craft and micros of the brewing world. 

Part of the rationale behind completing the deal is the desire to improve distributor relations and generate efficiencies in distributor operations.  As it is now, a good number of distributors carry both Miller and Coors products while most A-B distributors are exclusive.  With two of the big three in the same house, Miller and Coors end up competing for distributor attention and resources.  If the deal closes, the new Miller Coors will contribute a large portion of the profitability to a distributor.  Add in the fact that a few of these distributors also carry Heineken, Sam Adams and some Mexican imports and its starting to get crowded.  Yes, all of these brands were there before, but on average none of them was the completely dominant player.  With one big supplier and several other important brands needing attention, what happens to a small volume craft or micro?  Will they still be able to get the support they need?  As long as the craft category continues to grow at over 10%, I think that there will be room for these brands.  Some have even established themselves as a solid player in a number of markets.  However, what happens when the category slows down?  While I think that overall craft/micros are here to stay, the growth we are currently witnessing is probably not sustainable.  Just recently, the Wall Street Journal reported on increased hop and malt costs that are having a greater impact on the craft segment.  Using more hops per barrel means a greater effect on costs.  Avoiding corn and rice in favor of using all malt also means that rising malt costs hurt the small guy as well.  The smaller breweries cannot afford to eat these increased costs because their margins are not huge to begin with.  Their only real option is to pass on the increased costs through price increases which may stall some of the growth. 

So how will all of this shake out?  I think that only time will tell.  It will be interesting to see how growing brands weather the change.  Will they be able to find new distributors to take their product into new states and regions?  I certainly hope so!  I for one enjoy added variety even if it does mean paying a little more.  I rarely let price stop me in the beer isle because I place great value on enjoying a full flavored, hop filled, malt loaded beer.        

Another key thing to note is that each distributor is ultimately their own business.  Brewers do not have the ability to force changes or limit the brands they carry unless they have agreed to limits as part of their operating agreement with a brewer (typical for A-B).  Most of the time, a brewer's and a distributor's interest aligns so suggestions from a brewer are taken into careful consideration by a distributor.  However, in the end they need to do what is right for their business and portfolio to ensure long term profitability and success.  The rationale may exist for certain houses to aggressively pursue new brands as part of their overall strategy, while not in others.  Especially with an increased reliance on a single supplier (OK...bad joke here but I can't help it.  Porter's 5 forces in action!  See also Porter if you need help with the pun.)

Should be an interesting year to see what changes do take place.  My comments are certainly at the aggregate level and generalizations.  Each market and distributor will shake out in their own way with a number of overarching trends describing the change.  I'll be sure to report back if I hear of any developments.

In the meantime...pop the top off of your favorite beer.  I'm headed to open a Lagunitas IPA right now.