Quotulatiousness

September 24, 2015

Ontario takes baby steps toward liberalizing the beer market

Filed under: Bureaucracy, Business, Cancon, Politics — Tags: , , , , — Nicholas @ 05:00

At the Toronto Beer Blog, a less-than-enthused look at the latest changes to minimally change the just-barely-beyond-prohibition-era rules for selling beer in Ontario:

This has been a noisy day in the wonderful world of beer sales in Ontario. The Liberal government released the details of the new 195 page master agreement between The Beer Store, the Province (LCBO), and the new kids on the block, grocery stores.

Much of the information is what we heard when they announced it with the budget. Some more details have come out. If you read my thoughts in April, you will remember I was not happy. I’m still not.

The good from today’s news is there are some clear definitions of what constitutes a grocery store (10 000 sq/feet dedicated to groceries, not primarily identified as a pharmacy); that the 20% craft shelf space is for both grocery stores and The Beer Store, and that there cannot be a fee to get listed (though we all know how effectively the province enforces pay-to-play in bars around the province); and that they have some novel system to divide sales licenses between both huge chains and independent grocers.

The old news about shared shipping for smaller breweries and no volume limit for a second on-site retail location are accurate, and very good news.

But here’s the thing: This is just more Ontario political craziness.

This is to “level the field”, apparently for small brewers, who nobody would suggest get a fair shake in the current system.

But what could have been an actual leveling of the playing field, turned out to be more insanity and government control and meddling. And remember, I’m saying that as a sworn lefty nutjob, who generally thinks having controls and regulations is a good thing.

Remember, these are not the ravings of a far-right-wing free-enterprise-maniac … these are the regrets of a self-described “sworn lefty nutjob”:

A level playing field would be one where anybody could apply for a license to sell beer, and do it. A brewery can pick and choose who they sell to, as a retailer can choose who they do business with. Nobody would need to guarantee a percentage of shelf space, because the market would control what products were successful and got shelf space.

This isn’t a level playing field, it’s just a bunch of new rules to try to counter how horrible we’ve allowed our playing field to get. Yes, it will be more convenient for people who shop at one of the 450 stores that have a license. But the agreement still favours The Beer Store heavily (for instance, grocers are limited in the volume they can sell. They can exceed the limit, but then have to pay a fine to the LCBO who distribute it to, you guessed it, the breweries who own The Beer Store to offset their lost sales. Seriously).

September 18, 2015

Beer? In Ontario grocery stores? It’s more likely than you think

Filed under: Business, Cancon, Government — Tags: , , — Nicholas @ 02:00

Ben’s Beer Blog scores an exclusive interview with Tom Barlow, President and CEO of the Canadian Federation of Independent Grocers on the topic of liberalizing Ontario’s Prohibition-era market access rules for beer:

Some details about beer in grocery stores

  • We will likely see beer on grocery store shelves in the next 18 months
  • The province still hasn’t decided how to auction off licenses to sell beer in a way that is fair to small grocers
  • At least one grocery store chain has stated they’d like to sell “100% craft beer.”
  • If you have fears that bigger brewers are going to be able to buy shelf space, continue to be scared of that very real possibility
  • Brewers will be allowed to do direct-to-store delivery

A transcript of my chat with Tom Barlow, President and CEO of CFIG, edited slightly for length

Ben Johnson: Thanks for chatting with me Tom. It’s been pretty quiet in terms of the announcement about exactly how we’re going to get beer in grocery stores. So can you tell me a little about the process for becoming eligible to sell beer in your stores? Speculation has been pretty rampant that we’d only see bigger chains getting the privilege, so it’s interesting to hear that independent grocers are at the table.

Tom Barlow: Yeah, I’ll share what I can. The regs will be coming out soon, and the people that have been in discussions are under a non-disclosure but what I can tell you is that the original conversation was that it would be just large chains, then the government through consultations with [CFIG] and regions decided that it should be open to “grocery” under the North American definition of what grocery is, namely that they carry fresh produce, fresh meat, and that kind of thing. I don’t know if they’ve settled on a size — there was some discussion that there would be a minimum size — but for all intents and purposes it would be “grocery” and it would be wide open. The discussion we’ve had so far is that there would be so many licenses to start and they’d step it out, then get comfortable, then release some more, and then release some more. The number that was floated was around 450 licenses. That is, 450 retailers are going to have the opportunity to sell beer.

BJ: I’m assuming it’s a bidding process for getting the license and that’s the part you can’t talk about?

TB: They’re still working through the mechanism, but are looking at a biding process. I think we made our point that privately held — vs. publicly held — the access to cash is different, so there needs to be a plan made so all the licenses don’t all get swallowed up by —

BJ: Galen Weston?

TB: — Yeah, exactly. We were a little frustrated at first but after numerous conversations they’ve heard our position, and I think it’s the same with the corporate chains, is that they should have just opened it up to “grocery” from the start. If you’re going to go grocery, go grocery. This contest for picking winners and losers is a slippery slope to be going down.

September 3, 2015

The beer ineQuality index

Filed under: Cancon, USA — Tags: , , — Nicholas @ 04:00

I took a couple of weeks off over the summer and subsequently forgot some of the interesting articles I’d intended to link to from the blog (but no sensible person comes here for breaking news, do they?). Here’s one from the wonderfully named Worthwhile Canadian Initiative blog:

The conventional Canadian view is that American beer is bad; watery and weak. Yet American breweries produce some of the world’s best beers — superb brews coming out of microbreweries across the country.

Why is american beer

What is striking about the United States is the country’s level of inequality — or, to be more precise, the beer quality inequality. Countries like Germany, Belgium — the Scandinavian countries in general — have much less variation in the quality of their beer.

The question is: why? Does beer quality inequality result from other forms of inequality, like disparities in income and wealth? Or do the forces that produce income inequality also produce beer quality inequality? Is it a spurious correlation, or is the armchair empiricist’s observation that the US has more beer ine-quality simply wrong?

The income-causes-beer quality inequality story is easily told. Some people are poor. They demand cheap beer, and cheap beer is necessarily poor quality. Some people are rich. They demand high quality beer, and are willing to pay for it. Hence, in theory, we would expect income inequality to produce beer quality inequality. As an empirical observation, the US has substantially more income and beer quality inequality than other rich countries, including Canada, while Scandinavian countries have some of the lowest levels of income and beer inequality in the world (here). So income inequality causes beer quality inequality: Q.E.D.

This story is plausible, and there may be some truth to it. The problem with it is that not everybody drinks beer. Take a country like England, for example. There beer was traditionally a working man’s drink — the upper classes sipped Pimm’s on the lawn, or perhaps a gin and tonic. If the rich aren’t drinking beer, an increased concentration of income in the hands of the richest 1 percent will have no impact on the variation in beer quality.

August 17, 2015

Flying Monkeys …. in spaaaaaaace!

Filed under: Cancon, Randomness, Space — Tags: , — Nicholas @ 04:00

Published on 11 Aug 2015

On June 4th, 2015 we sent Flying Monkeys SuperCollider 2.0 DIPA craft beer into space just for kicks. After 3 hours in flight it came back to earth from 109,780 feet. The footage is unbrew-lieveable!

August 12, 2015

Better hops through science

Filed under: Science — Tags: , , — Nicholas @ 04:00

At Wired, Katie M. Palmer discusses an interesting (if only to brewers and beer fans) development in the quest for better beer:

For craft breweries, originality is everything. Your favorite microbrew prides itself on the particular combination of grains, yeast, and hops that go into its fermented nectar. Regardless of the magic that goes into the recipe, though, a lot of those ingredients come from the same big suppliers — bulk barley, high-yield yeast. So when agricultural geneticist Sean Myles was visiting his brewing buddies over at Tatamagouche Brewing Company in Nova Scotia, the conversation turned quickly to the one place where microbreweries can really distinguish themselves: hop varieties.

“I’m a craft beer fanatic…a little bit,” says Myles, who researches at Dalhousie University. “I ended up hanging around the hop yard, and we were taking a look at the vines.” In Nova Scotia, brewers grow the same varieties of hops you’d see elsewhere — Cascade, Willamette, Fuggle — which add aroma, flavor, and bitterness to a beer while helping to preserve it. But the vines don’t thrive like they do on the dryer, warmer west coast. The region’s high humidity makes the plants vulnerable to mildew. Myles looked at the hops growing in the brewers’ backyard, stunted and suffering from fungus, and had an idea: “I said, well, let’s go get some pollen.”

So Myles and Hans Christian Jost from Tatamagouche traveled from Nova Scotia to Corvallis, Oregon, where the USDA has one of the biggest hop collections in the world. “In order to get new varieties you need to let these plants have sex and generate some offspring,” says Myles. The National Clonal Germplasm Repository — which includes a gene bank in addition to physical collections of berries, mint, and nuts — is one of the only places where hopheads have access to pollen from male plants. (The pine cone-shaped hops that go into your beer are the flower of female plants, so most growers don’t bother keeping any males around.)

At the USDA hop library, which has dozens of varieties bred for different taste profiles, disease resistance, and viability in different climates, Myles worked with hop expert John Henning to find four different male mildew-resistant hops. But he couldn’t take the plant material across the border to Canada — so he stuck baggies over the top of the plants, collected their pollen, and brought it back to sprinkle on top of the female flowers grown by the brewery.

That’s the beginning of what will be a multiple-year process of growing, seed collection, and growing again to select the most mildew-resistant plants that still keep their floral hop character. When the brewers are done, they’ll have a unique variety of hops that they can call their own — and hopefully grow more of, thanks to its improved mildew protection.

August 10, 2015

Toronto craft brewers and beer cans

Filed under: Business, Cancon — Tags: , — Nicholas @ 02:00

Ben Johnson explains the rising popularity of beer cans even among microbreweries in the Toronto area:

Whether it be memories of your dad’s garage fridge filled with industrial lager in little tins or visions of shotgunning affordable lagers at college parties, beer cans have, for the most part, gotten a bad rap as something like the poor-man’s beverage container.

But that’s quickly changing.

Increasingly, as Toronto’s craft beer scene booms and the city’s brewers seek out the best ways to sell their beer, cans are becoming the preferred option. But why?

Jeff Rogowsky, the co-founder of Session Craft Canning, has seen the popularity of cans grow in the last few years. Rogowsky’s company is a mobile operation that brings canning capabilities to craft brewers who often can’t afford their own expensive canning lines.

I spoke with Rogowsky via email and he told me that he thinks the increased popularity of cans is largely being driven by consumer demand. “Canning gained popularity,” he says, “because it allowed people to take beer to more places–golf courses, beaches, in a backpack, to a movie theatre–cans are infinitely more portable and easier to travel with.”

June 19, 2015

Even the Fed pays attention to the rise of craft brewing

Filed under: Business, USA — Tags: , , , — Nicholas @ 03:00

The Federal Reserve Bank of Richmond had an interesting article on the rise of craft beer by Jamie Feik and Joseph Mengedoth:

In many places across the country, it’s hard not to notice the shift in product offerings at local bars and restaurants and in the beer aisle of the grocery store. The colorful, ornate tap handles of craft brewers have joined the classic blue, red, and silver posts of the traditional powerhouses, and bartenders play the role of consultant purveying the selections. Shoppers who once stood in the beer aisle trying to decide how many cans of beer to buy now stand in front of coolers filled with different brands and styles of beer available in single bottles, packs of four, six, or 12, and even on tap in a growing number of stores. Many of them have been made at a brewery down the street; according to the Brewer’s Association (BA), the trade association that represents the craft beer industry, approximately 75 percent of the drinking-age population in the United States lives within 10 miles of a brewery.

In 2014, there were 615 new craft breweries that opened, pushing the number in the United States to 3,418, more than twice the number that existed just five years earlier. The BA defines a craft brewery as one that produces fewer than 6 million barrels a year, is less than 25 percent controlled by an alcoholic beverage industry member that is not itself a craft brewer, and produces a beverage “whose flavor derives from traditional or innovative brewing ingredients and their fermentation.” The ownership restriction excludes the craft-style subsidiaries — such as Shock Top, Goose Island, Leinenkugel, and Blue Moon — of large brewers like Anheuser-Busch InBev and MillerCoors (the two largest brewers in the United States).

Although craft beer remains a relatively small segment of the market, accounting for only 11 percent of the beer produced in the United States in 2014, the segment is growing rapidly. Craft beer’s share of production has more than doubled since 2010, when it was just 5 percent. In 2014, craft beer sales volume increased nearly 18 percent, according to the BA, versus just 0.5 percent for the overall beer industry. The retail dollar value of craft beer grew 22 percent in 2014, while the total U.S. beer market increased only 1.5 percent in value.

The growth of small breweries runs counter to the trend of consolidation in the beverage industry that persisted through much of the 20th century. Why are craft brewers thriving?

April 17, 2015

QotD: Bitterness about bitterness

Filed under: Food, Quotations, USA — Tags: , , — Nicholas @ 01:00

And if I may insert a personal plea: could the bittermongers please knock it off with the sneers? Somehow, in the collective cocktail consciousness of America’s hipsters, “bitter” has become synonymous with “sophisticated”. Bitter beer is good beer, bitter cocktails are good cocktails, and the louts who like things thin or sweet deserve what they get, which is everyone else at the bar struggling to conceal their bemused smile. Yet there are many of us who hate, hate, hate bitter flavors not because we haven’t been exposed to them, nor because we’re unadventurous slobs who would really rather be hooked up to a glucose IV. Personally, I find bitter flavors like Campari so strong that even a sip is on the verge of being physically aversive, as if you were punching me in the tongue. That’s not a matter of sophistication, but a matter of personal chemistry. There are people who can taste bitter compounds in broccoli and soapy-tasting substances in cilantro that make it completely unpalatable, while the rest of us dig into our veggies and say they don’t know what they’re missing. In fact, we’ve got it exactly backwards: we don’t know what we’re missing — and we’re moralizing our deficits.

Megan McArdle, “Dinner, With a Side of Self-Righteousness”, Bloomberg View, 2015-03-27.

February 3, 2015

You can’t trademark the mere arrangement of a few letters

Filed under: Business, USA — Tags: , , — Nicholas @ 03:00

At Techdirt, Timothy Geigner explains why a recent trademark action was (sensibly) dropped:

Here we almost went again. The craft beer space was known for quite a while for its congenial attitude when it came to competitors. That seems to have shifted a bit in the past few years, with all kinds of silly intellectual property disputes arising among breweries. Trademark claims seem to be the issue du jour, not surprisingly, though you’d think with the common public response being backlash this trend would have ceased already. It seems the lesson still needs to be taught, however, even amongst some of the larger craft breweries with some of the best reputations. Lagunitas, for instance, which likes to bill itself as the hip and laid-back beer for the NPR crowd (yes, over-simplifying), saw fit to sue competitor Sierra Nevada over trade dress issues until the public reacted and they quickly backed away.

    In a suit filed Monday in U.S. District Court, Lagunitas owner Tony Magee argued Sierra Nevada’s design for its Hop Hunter India Pale Ale — which features “IPA” in large, bold, black capital letters — is too similar to the design for his Lagunitas IPA label.

And here are the labels in question.

IPA trademark nonsense

Both, as you can see, feature the letters “IPA”, for India Pale Ale, in a bold font that has some degree of similarity. As you’ll also see, assuming you aren’t a blind wombat that’s been dipping into the barley wine for twenty straight hours, both brewery’s names are super-evident on the label, the color scheme is uber-different, the rest of the label isn’t remotely the same, and oh my god, why do we have to keep doing this? The likelihood of customer confusion here is roughly the same as the likelihood that I’m about to sprout wings, horns, and enslave humanity under my forked tongue. I mean, sure, it might happen, but then we all have bigger problems, don’t you think?

January 29, 2015

QotD: Coping with beer experts

Filed under: Humour, Quotations — Tags: , — Nicholas @ 01:00

Beer is a far dodgier subject in these post-real-ale days — there are experts everywhere. Safest to adopt the generic Amis Defence Against Knowledge and treat the whole subject as an eccentric fad. If forced to drink beer say, “A glass of any old lager, please, if it’s there. I’m sure all this business about top fermentation and CO2 is quite fascinating, but life’s too short.

Kingsley Amis, Everyday Drinking: The Distilled Kingsley Amis, 2008.

January 3, 2015

The Beeriodic Table

Filed under: Randomness — Tags: — Nicholas @ 11:00

Christine Hurlbut sent me a link to The Beginner’s Guide to Craft Beer which included a neat little “family tree of beer styles” image. Unfortunately, the version they embedded was too small to be useful, so I looked for a larger version. I found a few other beer-centric images, including this one:

Found via a Google search at gunaxin.com (but don't go there directly ... my antivirus software had a field day warning me about the site's contents). [Click to see full-sized version]

Found via a Google search at gunaxin.com (but don’t go there directly … my antivirus software had a field day warning me about the site’s contents). [Click to see full-sized version]

Another find from the quick Google image search was this one at The Urban Diplomat:

The very, very many varieties of beer (via The Urban Diplomat)

The very, very many varieties of beer (via The Urban Diplomat)

October 19, 2014

Brace yourselves for Beer Store price hikes

Filed under: Business, Cancon, Government — Tags: , , , , — Nicholas @ 12:38

In the Toronto Star, Rob Ferguson details the provincial government’s new-hatched plans to pry more money out of consumers (by way of the Beer Store monopoly):

Premier Kathleen Wynne says she won’t shrink from a battle with The Beer Store as her government thirsts for a bigger cut of sales despite brewers’ warnings it would mean higher prices for suds lovers.

The comments came Saturday as Wynne commented in detail for the first time on recommendations from a blue-ribbon panel on squeezing more money from publicly owned agencies and the distribution system for beer, wine and spirits.

“They’ve laid out some challenging ideas for us and I’m absolutely willing take those on,” Wynne said of the panel headed by TD Bank chair Ed Clark.

“Will it be easy, will it be a path that is without any challenges? No it won’t be but that’s not a problem from my perspective. That’s exactly why it needs to be taken on,” she added after a 22-minute speech to party members in this border city for a strategy session and victory party after winning a majority in the June 12 election.

Clark’s recommendations Friday were a timely distraction for Wynne with the legislature starting its fall session Monday and her Liberals under fire for a bailout of the mostly vacant MaRS office tower across from Queen’s Park, with taxpayers on the hook for hefty interest payments.

The government already taxes beer at 44%. I guess they think that’s too little.

October 2, 2014

American craft beer fans owe Jimmy Carter a hearty “Cheers!”

Filed under: USA — Tags: , , , — Nicholas @ 00:02

If you like your beer — that is beer for the taste rather than for the numbing effect of the alcohol — you probably prefer craft beer (or imports). You should probably thank the man who finally made it legal to brew your own and to sell your beer to the public. The craft beer revolution broke out very quickly after that:

There has never been a better time to love beer. Duck into any local sudshouse in any half-horse town, and one is likely to find behind the bar a distinctive tap dispensing Fat Tire Amber Ale, or Shiner Bock, or — at the very least—Samuel Adams Boston Lager. At fashionable metropolitan lounges, the menu is more dizzying: porter and stout, hefeweizen and lambic, ales brown and blonde and pale.

’Twas not always so. Shortly after the repeal of Prohibition, the number of American breweries spiked to more than 800, but thereafter consolidation marked the industry for decades. By the late 1970s, that figure had fallen to fewer than 100. These were the Dark Ages, when selection was nigh nonexistent and “lite” was a selling point. Miller went so far as to brag in the tagline of its commercials: “Everything you always wanted in a beer — and less.”

The best anecdote I have found to help explain these dismal times comes from “Confessions of a Beer Snob,” a 1976 article I stumbled across in the archives of The American Spectator, the magazine where I work. There’s a bit midway through the piece in which the author, a former Nixon speechwriter named Aram Bakshian Jr, describes a beer newly available on the East Coast that had taken Washington, DC, by storm. That beer? Coors.

“What transports of delight the availability of Coors threw certain White House colleagues of mine into. I always suspected that they were more excited by the idea of its being specially flown in from Colorado than by what little taste it — or, for that matter, they — had,” Bakshian wrote. “Today the Coors cult still thrives, its devotees buying it even at the most ridiculous prices, and liquor store windows across the country proudly displaying banners blazoned with the inspiring motto, ‘Coors is here!’”

This was the state of affairs until near the end of the decade, when everything changed, not quite suddenly, but faster than could have been reasonably foreseen. In 1978, Congress and Jimmy Carter officially legalized home brewing, previously a federal crime punishable by prison time, bringing tinkerers and hobbyists aboveboard. The first brewpub since Prohibition opened in Yakima, Washington, in 1982. It was a mad dash to the fermenting tanks from there. Today, somewhere around 3,000 breweries of various sizes operate from sea to shining sea, churning out all manner of hoppy, malty, citrusy concoctions.

The Coors mania was felt as far away as the suburbs of Toronto: driving down to Buffalo to visit their incredibly wide variety of beer and liquor stores (one of my friends always referred to them as “boozaterias”) was eye-opening (and wallet-emptying at the punitive exchange rates of the day) for Ontarians in the late days of the LCBO’s Soviet store era and the grimy Brewers Retail outlets of the 1970s. And Coors, for a while, was the Holy Grail of American beer. Shudder.

September 12, 2014

Welcome to Indiana, here is your regulatory compliance brewpub menu

Filed under: Bureaucracy, Business, Food, USA — Tags: , , — Nicholas @ 08:00

Indiana, like most states, has some odd laws still on the books from the immediate post-Prohibition era, including a “food requirements” rule that specifies that any establishment that serves retail alcoholic beverages must also maintain a restaurant on-site. That restaurant is required to serve certain specific food items. This is how the Bank Street Brewhouse complies with the law:

Indiana regulatory compliance menu

As you can see, this fully complies with the wording of the rule which requires “a food menu to consist of not less than the following:”

  • Hot soups.
  • Hot sandwiches.
  • Coffee and milk.
  • Soft drinks.

H/T to Katherine Mangu-Ward who has more on the ridiculous requirements.

September 4, 2014

How post-Prohibition restrictions still plague many states

Filed under: Law, USA — Tags: , , , , — Nicholas @ 17:07

The American craft beer boom continues, but making the beer is only the start of the process of getting the beer into the hands of eager consumers. CEI’s Michelle Minton explains how rules crafted for the end of Prohibition now artificially restrict the craft beer marketplace, reduce consumer choice, and add unearned profits to favoured corporations:

After Prohibition ended, Americans could sell, produce, import, and transport alcoholic beverages, but home-brewing was still illegal until 1978 when then President Jimmy Carter signed legislation to legalize brewing in the home for personal or family use. In that year, the number of breweries was at its lowest point after the repeal of Prohibition. But in the 1980s, after states began to legalize brewpubs, the number of brewers began to rise. This development, along with easy access to capital in the 1990s and 2000s, aided efforts of modern craft breweries to change the laws in their home states so that they could brew more, self-distribute, and start the microbrew revolution.

[…]

Another hindrance for craft brewers are franchise laws, enacted among the states in the 1970s and 80s due to fears of brewers’ market power. With less than 50 brewers in the nation at the time — most of them large — there was a fear the big brewers could hold wholesalers hostage by threatening to walk away unless distributors bowed to the brewers’ demands. Since then, however, the landscape has completely shifted.

Although the number of wholesalers nationwide has declined, those remaining are larger and more powerful than almost all of the breweries in the nation. Yet, the laws remain, giving the wholesalers “virtual carte blanche to decide how the beer is sold and placed in stores and bars,” according to Brooklyn Brewery founder Steve Hindy.

In almost every other industry, a manufacturer unhappy with a distributor’s performance or price can terminate a contract in search of a better fit. This is not the case for beer manufacturers. Brewers wishing to switch from one distributor to another must go through long and costly legal battles. Hindy, for example, paid $300,000 to get out of a contract with a New York wholesaler. Yuengling COO Dave Casinelli’s experience was similar. In a phone interview, he noted that in his 24 years with the company, he couldn’t recall any attempt to switch wholesalers that didn’t end up with some legal ramifications.

Most state franchise laws not only make leaving a wholesaler hard, but they also create regional monopolies, known as “exclusive territories,” where a brewer is prohibited from selling through more than one distributor within a given area. This undermines incentives for wholesalers to compete by improving performance, increasing efficiency, or lowering prices. After all, distributors have little or no fear that a brewer will leave — because most of them can’t. As for consumers, they end up paying more because of this lack of competition.

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