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Alcohol Content in Beer

A Cup of (Organic) Christmas Cheer

‘Tis the season to…let’s face it…drink. People who seldom darken the doors of wine shops and liquor stores the other 11 months of the year find their way into the aisles of the purveyors of alcoholic beverages throughout December (to the irritation of those of us who spend rather more time there), loading up their carts with wine, spirits, beer and fruity “alco-pop” for those who like to get tipsy but don’t like the taste of alcohol. New Year’s Eve, the single largest day of the year for champagne consumption, usually finds most of us popping open bottles of champagne: so strong is the tradition that even people who don’t like champagne often feel some duty to toss back at least a few mouthfuls of it 23 seconds after midnight, grimacing with distaste.

We drink a lot of alcohol in the U.S. According to a recent Gallop poll, consumption of alcohol in the U.S. hit a 25-year high in 2010, with 67 percent of Americans reporting drinking alcoholic beverages. It’s apparently a level unseen since the 1970s, when 71 percent of Americans self-reported themselves as imbibers. While beer drinking is apparently down, wine drinking has generally been on the upswing, along with spirits (though with more modest growth and consumption than wine).

We’re also a wine-producing nation: the fourth largest producer of wine in the world after only France, Italy and Spain. More than 1,100,000 acres in the United States are planted for wine grapes, according to the Oxford Companion to Wine, with California producing about 89 percent of the nation’s wine.

So it’s no wonder that as organic farming and meat production expand in the U.S., so too does the practice of “green” wine making. So, how do you make green wine?

In wine grape-growing, just as in conventional growing of grains, fruits and vegetables, chemical fertilizers are used to generate larger crop yields, pesticides are used to protect the fruit against pests, herbicides and fungicides are used to keep weeds and molds at bay and plant pharmaceuticals are used to stave off plant diseases. So toxic are many of these chemicals that many wine grape farmers must wear protective gear in their fields. The chemicals, obviously, don’t remain harmlessly on the external part of the fruit to be washed away later: they are absorbed through the plant’s roots, into the wine grape vine’s sap, through which they are then drawn into the plant’s leaves and fruit. Ultimately, they find their way into finished wine, affecting the taste (some say) and entering the wine drinker’s system.

Ultimately, the boatloads of chemicals used in the traditional grape farming process concentrate in the soil, changing its character: since wine from different vineyards often have unique characters based not only on the grapes and the vineyard’s wine making process, but on the soil in which they are grown, pumping a lot of chemicals into that soil seems counterproductive to further production of good wine. The nature and quantity of the chemicals may also ultimately damage the soil beyond the vineyard’s ability to use it for future crops.

To avoid just these scenarios, many vintners are turning to greener methods. The production of organic wine is a two-phase process. The first part – growing the fruit – involves the methods of traditional organic farming: natural and non-toxic fertilizers, pesticides and herbicides as well as crop rotation and natural soil management. The second phase of wine production – turning the fruit into a tasty beverage that goes nicely with your chicken marsala – may seem the lesser of importance of the two phases, but it’s not…and here’s where it gets tricky.

Sulfites are organic compounds traditionally used in the production of wine. If you wish to call your wine “certified organic,” you can’t add any to your finished product. However, since the fermenting yeasts that reside on all grape skins generate naturally occurring sulfites – which means that sulfites are a byproduct of the fermentation process – it would, in fact, be impossible to produce a completely sulfite-free wine (or grape juice, for that matter, since grape juice without sulfites would continue fermenting until it turned to vinegar). When the level of sulfites in the wine is above 10 milligrams per liter (the level at which sulfur is generally naturally occurring in wine), it must bear the words “contains sulfites” on the label, at least in the United States. Almost all wines bear that “scarlet S” on the bottle’s label (or on the box with the plastic spigot, if you’re really classy).

But sulfites aren’t necessarily the evil-doers many people believe them to be. For starters, they are not a twentieth-century invention: sulfites have been used in wine making for centuries. They have both antioxidant and antimicrobial properties, which is why winemakers rely on them so heavily: nothing makes good wine go bad faster than rogue yeasts, bacteria or too much oxygen. (Oxidization is the reason your unfinished bottle of red wine isn’t nearly as tasty two days later as it was the night you opened it.) Sulfites are often used to clean wine making equipment, and to stop the fermentation of the wine if, for example, the winemaker wants to keep all the sugar from fermenting in order to produce a sweeter wine.

Different countries regulate sulfites in wine in different ways. In the U.S. and Canada, wine cannot contain more than 350 mg of sulfites per liter. EU wine makers cannot produce wine with more than 160 mg/L for red wine, 210 mg/L for white and blush wines and 400 mg/L for sweet dessert wines.

So why must organic wines contain no added sulfites? Ostensibly for health reasons, though there are few health issues associated with the levels of sulfites present in traditionally produced wine. Though many people blame sulfites for the “wine headache,” there is no credible evidence that sulfites cause headaches. (In fact, red wine, which usually gets blamed for headaches the most, contains fewer sulfites than white or blush wine.) While sulfites at higher levels are known to cause ill effects in about five percent of asthmatics, and there are some people who seem to have a genuine allergy to sulfites (fewer than one percent of the population, according to the FDA), they’re probably not the villains you might think.

The problem with wine with no added sulfites is that it tends to be bad wine (there are a few exceptions). Because sulfites help stop the fermentation process at the precise time the wine maker wants it to stop, and because they protect against oxidization, a lot of organic wine tends to be unstable and inconsistent ant taste slightly oxidized, if not downright spoiled. Those reputable wine makers who do not add sulfites to their wine must take extraordinary care in how their wine in stored and transported. As a result, a number of would-be organic wine makers recently lobbied the U.S. Department of Agriculture’s National Organic Standards Board (NOSB) to change the rules to permit small amounts of added sulfites in wine and still allow it to be labeled organic. They were unsuccessful.

This means that many wine makers that follow otherwise sustainable practices – skipping the use of commercial fertilizers and pesticides in favor or organic farming techniques – but who don’t want to risk producing bad, spoiled wine and hoped to be able to add a very small amount of sulfites to keep the quality high, are unable to easily let consumers know that their wine grapes are grown free of pesticides and chemical fertilizers. In other words, wine makers are still prevented from labeling themselves something like, “Organic, with sulfites” to appeal to consumers who seek wines from wine makers who follow sustainable farming practices but don’t object to some sulfites.

“Making wine without sulfur is unbelievably risky, like walking a tightrope without a net,” notes the wine blog Vinography. “Some people succeed, and do so brilliantly, but many people don’t, or can’t. So they add sulfur. You don’t need much, sometimes just a little squirt of sulfur dioxide gas right at bottling (it gets absorbed and bound up into the wine, inert and without taste). Leaving aside the claims that these sulfites cause headaches (which has been disproven scientifically), apart from philosophical grounds held by [some winemakers], there seems no rational reason in the world that anyone concerned with the quality of wine should want to prevent the use of sulfites in the wine making process.”

Particularly as there are so many benefits from wine that is otherwise produced organically. In addition to not passing on pesticides, herbicides and chemical fertilizers into the wine (and the wine drinkers’ bodies), there are studies that have shown that wines made with sustainable farming practices contain more tannins, phenols and anthocyanins (the components in red wine known to have multiple health benefits) than traditionally produced wines.

The result? There are a number of organic wine producers in the United States who cannot actually call their product “organic wine.” These vineyards are generally very easy to find by entering the search term “organic wine with sulfites” into a search engine.

So we know there are producers of organic wine, and we know there are producers of organic beer, but what about other holiday choices?

While the idea of organic whiskey – or any other spirit – a short few years ago might have seemed absurd: the average person who enjoys whiskey shooters is generally not stereotyped to be green-minded and sensitive to the environment but rather tattooed, covered in leather and hard-living – the organic spirit market is actually viable and growing today as more and more “artisan craft distillers” crop up thanks to some states, notably those in the Pacific Northwest, loosening their laws on small batch distillation. As more people become aware that pesticides in the products they consume can concentrate in their bodies and cause health problems, any product that is the result of large amounts of raw agricultural materials distilled into a small amount of finished product – as with spirits – the idea of organic alcohol becomes appealing.

Distilling spirits like whiskey or vodka – like brewing beer – is an energy-intensive process: it requires a lot of water and heat and produces a lot of waste materials (i.e., “spent grains”) that can be either discarded or reused, depending on the practices of the distillery. (Wine, by comparison, is a much less energy-intensive process, since little heat is required.)

Organic distillers follow a number of sustainable practices: they start out with organic grains, tuberous vegetables like potatoes (sometimes used in vodka-making) and fruits. They locate their distilleries close to the water sources, eliminating the need to pipe or truck water in. They use organic fermentation and distillation techniques (often by producing their product in a single distillation instead of multiple distillations, which they can do because they begin with organic raw materials and therefore have no toxins to remove). Next, they re-use the spent grains in some way, either recycling it as organic animal feed or using it for biomass to create energy and offset grid power use. Finally, they package their products in untreated glass and skip using paper boxes or cellophane shrink wrap.

In the case of many organic spirits, such as Scottish single-malt whiskeys, the idea behind organic distilling isn’t entirely about eco-responsibility. As more impurities and chemicals have crept into water in the last hundred years thanks to toxic run-off and polluted rain, and raw materials crops contain more pesticides, chemical fertilizers and other nasties, distilleries – particularly centuries-old ones – are aware that these factors have fundamentally changed the taste of their finished products, and not for the better. Many organic distillers say their goal is to make whiskey taste the way it did when they first opened their doors, and the newer entrants hope to make whiskey that tastes the way it did to their great-granddads.

So whether it’s for reasons of taste, eco-responsibility or an excuse to buy more alcohol (“But honey, I’m being green”), let’s raise a glass to a future of more eco-friendly booze.

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As local sales shrink, Sapporo looks to hike Vietnam beer output fivefold

Tuesday, Dec. 20, 2011

Sapporo Holdings Ltd., the nation’s fourth-largest brewer by volume, intends to increase beer production as much as fivefold in Vietnam by 2019 as a shrinking population at home crimps demand.

Sapporo, which started brewing beer in Vietnam last month, plans to boost annual output to as much as 200,000 kl from 40,000 kl in 2014, Yoshiyuki Mochida, president of Sapporo International, said in a recent interview in Tokyo.

Japan’s biggest brewers, including Asahi Group Holdings Ltd. and Kirin Holdings Co., plan acquisitions across Southeast Asia to access wider margins after beer shipments slumped in 2010 for a 14th consecutive year. Sapporo will compete with them in Vietnam, where the government estimates that demand for beer will more than double by 2020.

“Vietnam’s business environment is such that you have to knock the competition out before they do,” Mochida said. “If you fall asleep there, your head will be lopped off.”

The Asahi Group has identified targets in Southeast Asia, President Naoki Izumiya said in an interview on Dec. 12. Kirin will “consider corporate tieups and small-scale mergers and acquisitions” in the region, Chief Executive Officer Senji Miyake said Dec. 13.

Sapporo shares were unchanged at the close of trading in Tokyo. They have declined 19 percent this year, trailing the 20 percent slide for the broader Topix index. Asahi has risen 7.6 percent and Kirin has fallen 18 percent.

Sapporo, maker of premium brands such as Yebisu, may decide to open a second factory in Hanoi in 2014, Mochida said. Consumption in Vietnam is forecast to overtake that of Japan by 2020 if current trends continue, he said.

The Southeast Asian nation had a population of 89.6 million at the end of last year that is forecast by the U.S. Census Bureau to increase to 93.4 million by 2014. Japan had 126.8 million people and is forecast to drop to 125.2 million by 2014, data shows.

Demand for beer in Vietnam is expected to rise to 5.8 million kl by 2020 from 2.6 million kl last year, according to the nation’s ministry of industry and trade.

“The beer market for Vietnam is huge and will overtake Japan,” said Hiroshi Saji, a Tokyo-based analyst for Mizuho Securities Co. who recommends buying Sapporo shares. “But the first order of the day is to turn a profit for their overseas operations.”

The push into the region will give the brewers access to markets where some rivals’ operating margins are more than double those of Asahi, Kirin and Sapporo.

Sapporo’s operating margin of 7.1 percent compares with 26.7 percent for the Philippines’ San Miguel Brewery Inc. and 22.4 percent for PT Multi Bintang Indonesia, according to quarterly figures compiled by Bloomberg.

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As local sales shrink, Sapporo looks to hike Vietnam beer output fivefold

Tuesday, Dec. 20, 2011

Sapporo Holdings Ltd., the nation’s fourth-largest brewer by volume, intends to increase beer production as much as fivefold in Vietnam by 2019 as a shrinking population at home crimps demand.

Sapporo, which started brewing beer in Vietnam last month, plans to boost annual output to as much as 200,000 kl from 40,000 kl in 2014, Yoshiyuki Mochida, president of Sapporo International, said in a recent interview in Tokyo.

Japan’s biggest brewers, including Asahi Group Holdings Ltd. and Kirin Holdings Co., plan acquisitions across Southeast Asia to access wider margins after beer shipments slumped in 2010 for a 14th consecutive year. Sapporo will compete with them in Vietnam, where the government estimates that demand for beer will more than double by 2020.

“Vietnam’s business environment is such that you have to knock the competition out before they do,” Mochida said. “If you fall asleep there, your head will be lopped off.”

The Asahi Group has identified targets in Southeast Asia, President Naoki Izumiya said in an interview on Dec. 12. Kirin will “consider corporate tieups and small-scale mergers and acquisitions” in the region, Chief Executive Officer Senji Miyake said Dec. 13.

Sapporo shares were unchanged at the close of trading in Tokyo. They have declined 19 percent this year, trailing the 20 percent slide for the broader Topix index. Asahi has risen 7.6 percent and Kirin has fallen 18 percent.

Sapporo, maker of premium brands such as Yebisu, may decide to open a second factory in Hanoi in 2014, Mochida said. Consumption in Vietnam is forecast to overtake that of Japan by 2020 if current trends continue, he said.

The Southeast Asian nation had a population of 89.6 million at the end of last year that is forecast by the U.S. Census Bureau to increase to 93.4 million by 2014. Japan had 126.8 million people and is forecast to drop to 125.2 million by 2014, data shows.

Demand for beer in Vietnam is expected to rise to 5.8 million kl by 2020 from 2.6 million kl last year, according to the nation’s ministry of industry and trade.

“The beer market for Vietnam is huge and will overtake Japan,” said Hiroshi Saji, a Tokyo-based analyst for Mizuho Securities Co. who recommends buying Sapporo shares. “But the first order of the day is to turn a profit for their overseas operations.”

The push into the region will give the brewers access to markets where some rivals’ operating margins are more than double those of Asahi, Kirin and Sapporo.

Sapporo’s operating margin of 7.1 percent compares with 26.7 percent for the Philippines’ San Miguel Brewery Inc. and 22.4 percent for PT Multi Bintang Indonesia, according to quarterly figures compiled by Bloomberg.

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The Morning Line, 12/19

TML isnt sure what to say about 20-13. The Men won. Their closest wild card competitors did not. It’s hard to whine about a tepid display against Looie when the Titans are losing at Indy and the Jets no-showed at Philadelphia. Even the mighty Ravens were exposed last night, in San Diego. If they can’t get to the QB, their secondary is vulnerable.

So maybe for this week, a win is a win. The Bengals are back driving the bus for the last WC spot.

But…

Anyone else think they’re running on fumes?

This was not a good team they beat. This was, in fact, the second-worst team in the league, starting a QB who’d practiced with them five days. Can The Men play better the next 2 weeks? Sure, but recent efforts don’t make you feel great about that.

Without further ado…

TEN THINGS.

1. The offensive line got pushed around. They miss Williams and Smith. When they needed a yard, they rarely got it.

2. Dalton has lost some of his mojo. Long season, defenses figuring out him and Gruden, whatever. The passing game looks pretty only when AJ Catches Everything is involved.

3. Don’t expect any insight from Red himself. He is willfully non-revealing, no matter how you phrase the question.

4. Domes are always lousy places to watch football. Domes housing 2-12 teams are positively morbid. They announced 54K at the game. There might have been 34K.

5. The loudest cheers of the day came when a Looie OL dropped an F bomb into a ref’s open mic, after the ref whistled him for holding; and for Marshall Faulk, honored at halftime for his HOF induction.

6. The Rams were the perfect team to implement TML’s go-for-it-on-4th-down strategy. They had nothing to lose, and several chances. Instead, 4th-and-1s brought punts. Boooo!

7. The Bengals dont win if B. Tate doesnt return the punt 54 yards.

8. The pregame featured a contest in which fans wheeling  wheelbarrows had to catch little parachutes dropped from the dome ceiling. It was the lamest thing I’ve ever seen at a sporting event. Class A baseball teams do better than that.

9. If Kevin Kolb doesnt play for AZ at PBS Saturday, the Bengals will have faced six backup QBs this year. They might never have a schedule again as fortuitous as the one they got this year.

10. I’m not saying the offense is predictable, but TML predicted the upcoming play correctly at least half the time. Hard to go wrong with Ced-off-tackle on 1st-and-10.

Now, then. . .

* STOP WHINING AND EMBRACE THE TRADE. Did the Reds sell their souls to Win Now? Maybe. So?

People who bashed acquiring Mat Latos for two maybes, a DH and a head case need to look at the conga line of “prospects” the Reds have touted over the years. All I know is this: Latos gives us a far better chance, come August, to be sitting at GASP talking about a pennant race instead of sitting there 10 games back, talking about how well Grandal is doing in Triple A.

Mobster Paul sent a list of Reds’ would-be greats: Willie Greene, Pokey Reese, Brandon Larson. Gookie Dawkins, Ty Howington, Chris Gruler. Brandon Claussen, David Espinosa, Pat Watkins. The one and only Chad Mottola, drafted ahead of Derek Jeter. Have I missed anyone? Austin Kearns never was as complete as predicted. CJ Nitkowski. Feel free to add to the list. Point is, “prospect” is a polite term for “ain’t done nothin’ yet.”

The Reds have a window to win. It’s open this year for sure. That’s it. They needed a top of the line pitcher. There werent many available. They paid a high price. Five years from now, we’ll know if it was worth it. Right now, I’m glad they took the chance.

If Latos is as advertised, The Club should have the best rotation in the division. And they didnt give up an every day guy to do it. Good work.

* WHAT ABOUT YANCY? Gates is out of the UC lineup, and suddenly the Bearcats look like a team. Of course, they were playing Wright State and Radford. But the style seems to fit them so much better than the semi-plodding, halfcourt, lets throw in deep to Yancy method. Which does pose a problem for Mick. Can Gates play the upbeat game they’re playing now? How much will they need his big body in a few weeks, when they start playing real teams?

A problem with playing such a lightweight early schedule is, you don’t get the best feeling for how good you are, or where you really need to improve. What does a 31-point win over Radford accomplish? Mick’s coaching will be open for inspection.

* AS FOR THE XAVIER HOLLOWAYS. Wow. Down 30 in the second half, at home, to a decent team, but not one that’s going to be around much in March. You can’t expect a team to regroup immediately after losing its 2 best players, and a very good freshman. But K. Frease needed to be a senior, and he wasnt. And the supporting cast was just that. Good thing X didnt exactly get draconian with the suspensions, yeah?

* LOOIE TRIP REPORT. Magnificent. Thank you to Mobster CJ for hooking me up with Dan The Brewmaster. Dan gave me a personal tour of the Schlafly works on Saturday. Fascinating. There is nothing like drinking craft beer at the source. I sampled three: The Coffee Stout, the Oatmeal Stout and what Schlafly calls their APA, a dry, hoppy creature with a pleasant bite. The beer was great, especially the oatmeal, which I will seek out the next time I make a Party Source run. The conversation was better.

Dan spent a decade in the UK, apprenticing, learning his craft. He’s a Looie guy who had no intention of moving home. He married a Scottish girl. He even has a bit o’ the drawl. SCAW-tish. He’s a big soccer and rugby fan. His son attends St. Andrews University. Anyway, he did come back. He and his partner renovated a turn of the century building downtown, and began brewing beer. That was 20 years ago. Now, Schlafly is very popular locally, in part because the Brazilians bought Budweiser.

Schlafly doesnt want to be Bud, thankfully. They have expanded, and now face the happy quandary of whether to keep expanding. This is interesting: They don’t sell their products anywhere regionally where the baseball fan base is largely Cub fans. And they still get some resistance locally, from old-line Bud establishments, that won’t give them a tap or two.

No matter. They can’t make enough beer. Kinda like Great Lakes. It’s  no wonder. The stuff is very tasty. TML says head to the Source and score a sixer of Oatmeal Stout.

OUTTA HERE. Time to hustle out of here, for the privilege of sitting in two planes and the holding pen at the always delightful O’Hare.

TUNE O’ THE DAY. Darlene? Again? Of course. In fact, I might just play it every day this week. Welcome back Jerry Springer on the bells, ladies and gentlemen.

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Sapporo to Raise Vietnam Beer Output as Japan Demand Slows

December 18, 2011, 4:30 PM EST

By Cheng Herng Shinn and Shunichi Ozasa

(Updates with closing share price in sixth paragraph.)

Dec. 16 (Bloomberg) — Sapporo Holdings Ltd., Japan’s fourth-largest brewer by volume, intends to increase beer production as much as fivefold in Vietnam by 2019 as a shrinking population at home crimps demand.

Sapporo, which started brewing beer in Vietnam last month, plans to boost annual output to as much as 200,000 kiloliters (52.8 million gallons) from 40,000 kiloliters in 2014, Yoshiyuki Mochida, president of Sapporo International, said in an interview yesterday in Tokyo.

Japan’s biggest brewers including Asahi Group Holdings Ltd. and Kirin Holdings Co. plan acquisitions across Southeast Asia to access wider margins after beer shipments slumped in 2010 for a 14th consecutive year. Sapporo will compete with them in Vietnam, where the government estimates that demand for beer will more than double by 2020.

“Vietnam’s business environment is such that you have to knock the competition out before they do,” Mochida said. “If you fall asleep there, your head will be lopped off.”

Asahi Group has identified targets in Southeast Asia, President Naoki Izumiya said in an interview on Dec. 12. Kirin will “consider corporate tie-ups and small-scale mergers and acquisitions” in the region, Chief Executive Officer Senji Miyake said Dec. 13.

Sapporo shares were unchanged at the close of trading in Tokyo. They have declined 19 percent this year, trailing the 20 percent slide for the broader Topix index. Asahi has risen 7.6 percent and Kirin has fallen 18 percent.

Second Factory

Sapporo, maker of premium brands such as Yebisu, may decide to open a second factory in Hanoi in 2014, Mochida said. Consumption in Vietnam is forecast to overtake that in Japan by 2020 if current trends continue, he said.

The Southeast Asian nation had a population of 89.6 million at the end of last year and is forecast by the U.S. Census Bureau to increase to 93.4 million by 2014, according to data on the Bloomberg. Japan had 126.8 million people and is forecast to drop to 125.2 million by 2014, the data shows.

Demand for beer in Vietnam is expected to rise to 5.8 million kiloliters by 2020 from 2.6 million kiloliters last year, according to the nation’s ministry of industry and trade.

“The beer market for Vietnam is huge and will overtake Japan,” said Hiroshi Saji, a Tokyo-based analyst for Mizuho Securities Co. who recommends buying Sapporo shares. “But the first order of the day is to turn a profit for their overseas operations.”

Operating Margins

The push into the region will give the brewers access to markets where some rivals’ operating margins are more than double those of Asahi, Kirin and Sapporo.

Sapporo’s operating margin of 7.13 percent compares with 26.74 percent for the Philippines’ San Miguel Brewery Inc. and 22.47 percent for PT Multi Bintang Indonesia, according to the latest quarterly figures compiled by Bloomberg. Asahi’s operating margin was 9.73 percent and Kirin had a margin of 8.61 percent.

Malaysia’s Guinness Anchor Bhd. has an operating margin of 16.27 percent while Thai Beverage Pcl.’s was 12.14 percent in the most recent quarter.

San Miguel Brewery, a unit of the Philippines’ biggest company by sales that dominates the country’s beer market, is 48 percent owned by Kirin, which has been investing in the Southeast Asian country for at least a decade.

Sapporo also plans to expand in Thailand, where it will build brand awareness through Japanese restaurants, Mochida said. It may look for local partners to grow in that country, he said.

–Editors: Subramaniam Sharma, David Risser

To contact the reporters on this story: Shunichi Ozasa in Tokyo at sozasa@bloomberg.net; Cheng Herng Shinn in Tokyo at hcheng52@bloomberg.net

To contact the editors responsible for this story: Stephanie Wong at swong139@bloomberg.net; Frank Longid at flongid@bloomberg.net

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Sapporo to Raise Beer Output in Vietnam as Japan Demand Slows

December 18, 2011, 4:30 PM EST

By Cheng Herng Shinn and Shunichi Ozasa

(Updates with closing share price in sixth paragraph.)

Dec. 16 (Bloomberg) — Sapporo Holdings Ltd., Japan’s fourth-largest brewer by volume, intends to increase beer production as much as fivefold in Vietnam by 2019 as a shrinking population at home crimps demand.

Sapporo, which started brewing beer in Vietnam last month, plans to boost annual output to as much as 200,000 kiloliters (52.8 million gallons) from 40,000 kiloliters in 2014, Yoshiyuki Mochida, president of Sapporo International, said in an interview yesterday in Tokyo.

Japan’s biggest brewers including Asahi Group Holdings Ltd. and Kirin Holdings Co. plan acquisitions across Southeast Asia to access wider margins after beer shipments slumped in 2010 for a 14th consecutive year. Sapporo will compete with them in Vietnam, where the government estimates that demand for beer will more than double by 2020.

“Vietnam’s business environment is such that you have to knock the competition out before they do,” Mochida said. “If you fall asleep there, your head will be lopped off.”

Asahi Group has identified targets in Southeast Asia, President Naoki Izumiya said in an interview on Dec. 12. Kirin will “consider corporate tie-ups and small-scale mergers and acquisitions” in the region, Chief Executive Officer Senji Miyake said Dec. 13.

Sapporo shares were unchanged at the close of trading in Tokyo. They have declined 19 percent this year, trailing the 20 percent slide for the broader Topix index. Asahi has risen 7.6 percent and Kirin has fallen 18 percent.

Second Factory

Sapporo, maker of premium brands such as Yebisu, may decide to open a second factory in Hanoi in 2014, Mochida said. Consumption in Vietnam is forecast to overtake that in Japan by 2020 if current trends continue, he said.

The Southeast Asian nation had a population of 89.6 million at the end of last year and is forecast by the U.S. Census Bureau to increase to 93.4 million by 2014, according to data on the Bloomberg. Japan had 126.8 million people and is forecast to drop to 125.2 million by 2014, the data shows.

Demand for beer in Vietnam is expected to rise to 5.8 million kiloliters by 2020 from 2.6 million kiloliters last year, according to the nation’s ministry of industry and trade.

“The beer market for Vietnam is huge and will overtake Japan,” said Hiroshi Saji, a Tokyo-based analyst for Mizuho Securities Co. who recommends buying Sapporo shares. “But the first order of the day is to turn a profit for their overseas operations.”

Operating Margins

The push into the region will give the brewers access to markets where some rivals’ operating margins are more than double those of Asahi, Kirin and Sapporo.

Sapporo’s operating margin of 7.13 percent compares with 26.74 percent for the Philippines’ San Miguel Brewery Inc. and 22.47 percent for PT Multi Bintang Indonesia, according to the latest quarterly figures compiled by Bloomberg. Asahi’s operating margin was 9.73 percent and Kirin had a margin of 8.61 percent.

Malaysia’s Guinness Anchor Bhd. has an operating margin of 16.27 percent while Thai Beverage Pcl.’s was 12.14 percent in the most recent quarter.

San Miguel Brewery, a unit of the Philippines’ biggest company by sales that dominates the country’s beer market, is 48 percent owned by Kirin, which has been investing in the Southeast Asian country for at least a decade.

Sapporo also plans to expand in Thailand, where it will build brand awareness through Japanese restaurants, Mochida said. It may look for local partners to grow in that country, he said.

–Editors: Subramaniam Sharma, David Risser

To contact the reporters on this story: Shunichi Ozasa in Tokyo at sozasa@bloomberg.net; Cheng Herng Shinn in Tokyo at hcheng52@bloomberg.net

To contact the editors responsible for this story: Stephanie Wong at swong139@bloomberg.net; Frank Longid at flongid@bloomberg.net

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Colo. Brewery to Serve ‘Tebrew’ Beer Inspired By Denver Broncos Quarterback

  • The logo for Bonfire Brewing's new "Tebrew" beer features a silhouette of the controversial Denver Broncos quarterback holding a beer mug with the brewery's logo on it.

    (Photo: Bonfire Brewing/Amanda Hensley Jessen)

    The logo for Bonfire Brewing’s new “Tebrew” beer features a silhouette of the controversial Denver Broncos quarterback holding a beer mug with the brewery’s logo on it.

After they all agreed to the name, Jessen’s wife Amanda, who is a graphic designer, came up with a logo to represent the beer. The logo features a silhouette of Tim Tebow praying, or “Tebowing,” on one knee with a Bonfire Brewing beer mug in his hand. Above the silhouette it says “Tebrew,” and below it, “The Sunday Sipper.”

“Tebrew Sunday Sipper – a barleywine from Bonfire – is almost here. In the style of 4th quarter heroics, we’re waiting until the last minute to serve it up – the moment the 10oz glasses arrive, the real games can begin,” said a post from the brewery on its Facebook page.

Jessen told The Christian Post on Thursday that he never intended for the name of the beer to offend anyone, despite the religious connotation of its logo and its attachment to perhaps the most famous Christian figure in sports.

“To us it’s only been about football, beer, camaraderie, community. That’s what our company has stood for since day one. That pose, that symbol, that’s what it’s comes to stand for because of the way it’s been used: as a symbol of victory, as a symbol of people coming together, literally, on a football field and doing something great,” he said.

Another post from the brewery on its Facebook page, however, seems to take a joking attitude toward the beer.

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“Tebrew will be good for a variety of things – tolerating watching all that Tebowing; celebrating in victory or drowning the sorrow of a loss; dulling the pain of being the victim of a #tebowtipping. It will not, however, absolve you of any sins. In fact, it may cause you to commit many more,” the post says.

Some people have criticized Tim Tebow for being so open about his Christian faith, others for his play on the field, but still he has managed to compile a 7-1 record since he took over the starting quarterback position in Denver and is on the verge of taking his team to the playoffs.

“I think he’s definitely somebody you can build a team around based on his athleticism and, obviously, his ability to improve,” said Jessen. He later added, “I think it’s clear that he’s somebody they need to have in their plans for the future.”

The batch of “Tebrew” was made in October, but it was given a name only a week ago because it is a type of beer that takes a long time to ferment and age properly. The company plans to submit their new brew to the Vail Big Beers Festival in Vail, Colo., in January.

Some might be anxious to get a taste of the Tebow-inspired creation, but the company made only a 200 gallon batch, so people who live outside of Bonfire Brewing’s base in Eagle, Colo., shouldn’t expect to get a taste of it anytime soon.

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Brew Genius: A very non-artistic engineer finds ‘an artistic outlet’

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Couple planning to start microbrewery in Adrian

ADRIAN, Mich. —

An Adrian couple has plans to start a microbrewery in the city.

Brett and Krista Cotton received the Adrian City Commission’s approval Nov. 21 for a liquor license for the brewery. The city does not have the power to issue the license, but the Michigan Liquor Control Commission cannot consider approval of a liquor license application without approval of the local legislative body.

The city commission voted unanimously to recommend approval.

Brett Cotton said he became interested in brewing beer in 2008 when he spent some time in Washington, D.C., and visited a number of microbreweries with friends, tasting a wide variety of beers.

The Cottons began brewing beer for their own consumption at home and visiting microbreweries in other communities, Cotton said.

He believes Adrian would be a good place for a microbrewery because none now exists in Lenawee County, Cotton said. People who want to visit a microbrewery have to drive to Jackson, Milan, Ann Arbor or Maumee, Ohio, he said.

“It just seemed like it’s a needed business,” Cotton said.

Cotton, who manages a retail store in Madison Township, has a bachelor’s degree in business and a master’s degree in leadership.

“I figure it’s time to put my degree to work and get a business going,” Cotton said.

As a microbrewery, the business will keep the focus on beer, as opposed to a brew pub, which is a restaurant that brews its own beer, Cotton said.

Besides working on licensing, the Cottons have rented about 500 square feet of space in a factory on Lawrence Street where they hope to open their brewery.

Their Liquor Control Commission license application lists the company name as the Cotton Brewing Co. LLC. They haven’t yet chosen a name for their beer, Cotton said.

The company’s liquor license, if approved, will allow them to sell beers they brew in bottles or by the glass, Cotton said.

They expect to start small, producing perhaps a couple barrels of beer a week until they see what demand is like. Initially, they would sell beer for carry-out or possibly for delivery, he said. Longer range, they hope to move the business to another location where they would have a bar and sell their beer by the glass.

Their initial equipment will allow them to produce about a barrel a day, he said. A barrel of beer is 31 gallons, he said.

Krista Cotton, who works as an assistant comptroller at a company in Maumee, said she has begun developing her own recipes for beer. Having a microbrewery could bring a new experience to Adrian, she said.

“There’s a whole different world of beers out there that people haven’t even gotten to taste around here,” she said.

If there are no complications with the licensing process, he hopes the business can get going by March 1, Brett Cotton said.

Response to the idea has been positive, he said.

“I think there’s a lot of potential in microbrewing in Lenawee County,” Cotton said.

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Scientists Develop ‘Super’ Yeast to Turn Pine Trees into Ethanol for Biofuels [VIDEO]

The biofuels industry could get a big boost after scientists in Georgia revealed Thursday a certain type of yeast that can efficiently produce ethanol from pine trees.

University of Georgia researchers genetically engineered a strain of Saccharomyces cerevisiae, which is yeast typically used for baking and brewing beer, that can extract and ferment the cellulose from pretreated pines.

The finding, published this month in the online journal Biotechnology for Biofuels, showed strains of the super yeast, called AJP50, could produce a little more than 30 grams of ethanol per liter after 120 hours of fermentation.

That is roughly 90 percent of the yeast’s theoretical yield, according to the researchers.

Gary M. Hawkins and Joy B. Doran-Peterson, the two researchers involved, said the fermentation of ethanol from pine wood could replace gasoline in the future.

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That potential lies in how sustainable pine trees are. They are some of the fastest growing trees in the American South, making them a readily available and a renewable resource. The wood is also loaded with sugars that the yeast uses in the fermenting process, according to the University of Georgia in a release announcing the discovery.

As this University of Georgia video clip explains, the development means more wood can go into the fermentation to produce higher ethanol yields.

For two years, the researchers grew the yeast, altering it just enough to produce the maximum amount of ethanol as possible. Culturing the yeast in increasingly inhospitable environments, the researchers were able to form a strand that survives when placed on pine with a high biomass percentage, which would typically stress the yeast.

“We’re talking about using forestry residues, waste and unsalable timber,” said Peterson. “Alternatively, pine forests are managed for timber and paper manufacturing, so there is an existing infrastructure to handle tree-farming, harvest and transportation for processing.

“The basic idea is that we’re trying to get the yeast to make as much ethanol as it can, as fast as it can, while minimizing costs associated with cleaning or washing the pretreated pine. With our process, no additional clean-up steps are required before the pine is fermented,” she said.

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