Pabst - For Sale
Craft Brewery Defined
Brewers Association has just amended the
official definition of an "American Craft
Brewer" - it is  small, independent and
traditional.  •Small: Annual production of 6
million barrels of beer or less (approximately 3
percent of U.S. annual sales). Beer production
is attributed to the rules of alternating
proprietorships. •Independent: Less than 25
percent of the craft brewery is owned or
controlled (or equivalent economic interest) by
a beverage alcohol industry member that is not
itself a craft brewer.•Traditional: A brewer that
has a majority of its total beverage alcohol
volume in beers whose flavor derives from
traditional or innovative brewing ingredients and
their fermentation. Flavored malt beverages
(FMBs) are not considered beers.
The last change in the definition was in 2010—
redefining “small” from annual production of 2
million barrels or less to 6 million barrels or
less—to allow growing craft brewers not to be
penalized for their success and to align with the
association’s excise tax recalibration efforts.
C. Dean Metropoulos, the veteran food industry investor
who bought Pabst Brewing Co. back in 2010, is now in
the early stages of trying to sell the 170-year-old
brewery, according to Reuters. The Los Angeles-based
producer of heritage beer brands like Pabst Blue Ribbon,
Olympia and National Bohemian (Natty Boh), is expected
to sell for somewhere between $500 million and $1
billion, according to the report. While larger brewers
and private equity firms are expected to show interest,
the company is also considering an IPO

Pabst was founded in Milwaukee in 1844 by Jacob Best
and later sold to beer tycoon Paul Kalmanovitz. The
company was later left in a charitable foundation after
Kalmanovitz's death until a judge declared that it had to
be sold.  Metropoulos bought Pabst from Kalmanovitz
Charitable Foundation in 2010 for $250 million.
The business has grown substantially over the years
since his purchase and is likely to attract interest from
both larger brewers and private equity firms.
Worth $1.3 billion according to Forbes, Metropoulos has
built a fortune turning around struggling food brands like
Chef Boyardee, Bumble Bee Tuna, and Vlasic pickles.
Japan Attacks Beer -   Brewers in Japan face an April sales tax increase of
5% they feel will further hurt already sluggish sales.  And there's more. Brewers and
consumer staples producers also face the prospect of a second panned tax
increase in 2015 to 10 percent.  Ouch.

Beer and Burger-  A Midtown NYC restaurant will sell a $250 hamburger — an
umami bomb comprised of Kobe beef, foie gras, crispy pancetta, white truffles and
caviar. Ketchup and mayonnaise are complimentary. The Indulgence Burger at
Beer & Buns reataurant  is now the “most expensive burger” in the city title
holder.  The beer is a relative bargain at $10.

Caramel Beer Bar- The master chocolatiers behind Vosges Haut Chocolate
used Rogue Ales’ Chocolate Stout beer to create a Smoke & Stout Caramel Bar—
combining the chocolatey beer with Alderwood smoked salt, burnt sugar caramel,
and dark chocolate.  Expensive but worth it for any  beer/chocolate lover.

Lip Balm Beer - Atlantic Farms has created several varieties of all natural lip
balms made with dried hops, olive, coconut, and hemp seed oils and organic
beeswax. The Double IPA uses a whopping dose of certified organic hops flower
essential oils. Now you can enjoy a beer anywhere - just lather on this lip balm!

Underage Marketing

The Federal Trade Commission just released its fourth major study on alcohol
advertising and the industry’s efforts to curb marketing to underage
audiences. The report found that while the vast majority of campaigns across
a variety of media met the placement standard, Internet access should be
tightened so as to avoid targeting minors. While the vast majority of
marketing dollars, 31.9 %, were allocated toward traditional mediums such as
television, radio, magazine, and newspaper advertising, the amount spent on
digital campaigning increased “almost four-fold” to 7.9 %..   As such, the
agency is recommending companies “take advantage of age-gating
technologies offered by social media, including YouTube,” to block access to
users under the legal age of consumption, according to the report.

If you’ve ever visited the website of a brewery, chances are you were
prompted with a virtual ID check at the homepage. Some websites require
visitors enter their exact date of birth before being granted access, while
others ask simply that they confirm their legal drinking age.The agency is
endorsing the former practice as another way to restrict access to underage
consumers.  Age-gates on company websites should require consumers to
enter their date of birth, rather than simply asking them to certify that they
are of legal drinking age,” it adds.

Despite the recommendations of more stringent standards for access online,
93.1 % of all measured media – both traditional and new – met the alcohol
industry’s placement standard, “which required that 70% or more of the
audience viewing the ads be 21” or older. That standard is now 71.6 %



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Edited by Jim Attacap

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