Microbrewery expansions increases citrus alcohol sales

Global demand for citrus alcohol market is set to hover at nearly 5 per cent growth rate, as growing preference for craft beer, and rising alcohol consumption create fertile ground. A recent study by ESOMAR certified market research and consulting firm, Market Research Insights, analysed citrus alcohol growth in over 20 countries, building a holistic and comprehensive analysis of the market.
Increasing inclination among consumers towards craft spirits, owing to their unique and subjective taste is another key factor driving sales. Study opines that proliferating number of breweries across the world will drive demand in the long run.
The COVID-19 impact on the market will create short-term challenges through 2021-end, with steady recovery expected from 2022.
Features include:

  • Spirit will remain the largest selling category, capturing over 50 per cent market share.
  • Glass bottles will hold nearly half of market value, owing to safety and minimal risk of leakage.
  • Based on sales channel, specialty stores accounted for over one-fourth of market value in 2020 and will remain the most lucrative channel.
  • Asia Pacific will remain the largest regional market for citrus alcohol, backed by the presence of a large young population base with high spending on alcoholic beverages.
  • Europe and North America will collectively account for nearly 50 per cent market share, being the largest producers and consumers of alcohol.

COVID-19 Impact
The outbreak of COVID-19 has impacted operations in the food and beverage sector, thus creating a downfall in the volume produced in the first and second quarters of 2020. Moreover, supply-side difficulties such as hindered distribution network and closure of sales channels.
Furthermore, altered consumer priorities during the lockdown and high demand for essential products, while distribution and sales of non-essentials, including alcoholic beverages, have been deprioritized. On the back of these facets, the growth trajectory of the citrus alcohol market will experience fluctuations during the pandemic.

FREE Brewing releases Coast Series 20-21 organic beer

Australian organic beer company, FREE Brewing Co. has released its COAST SERIES 20-21 – four special-edition cans of their refreshing organic lager featuring iconic Australian places and their rugged coastlines.
This release is a first for the organic beer brand and is a collaboration with FREE Brewing Co. ambassador and surfer Brett Burcher.
FREE Brewing Co. and Burcher have chosen four beach locations to showcase through the series, and the release celebrates not only these stunning and wild coastlines, but the communities that make them what they are. The ambition of the campaign is to promote and celebrate local travel and adventures, there are so many places on our coast that are free to explore.
“Burcher’s lifestyle very much captures the essence of FREE Brewing Co. He is a free surfer, school teacher, writer and filmmaker who approaches everything he does with a fearless passion. There are so many incredible places to roam and discover on our vast coastline, but for this series, we’ve worked with Burcher to share some of his favourites – Shipstern Bluff in Tassie, the iconic Bells Beach on Victoria’s Great Ocean Road, Margaret River in
Western Australia and his home town of Mollymook on the beautiful NSW South Coast.” says FREE Brewing Co.
As an independent brewer, FREE Brewing Co.’s passion for free brewing flows through to everything they do. The organic lager is free from preservatives, embraces all-natural ingredients and traditional simple brewing method to deliver a beer that’s better for you and the planet. COAST SERIES 20-21 celebrates the beauty of being absolutely free in nature and on the road.

Beer consumption suffered during lockdown

Across the globe, beer consumption suffered from the Covid-19 pandemic in the early stages of 2020. In some countries – such as South Africa – alcohol consumption was restricted, while others – like Mexico – classified brewing as a non-essential activity and ceased beer production.
“In most countries, consumers faced a lockdown and the on-premise channel was closed, creating varying degrees of pain for nearly all brewers,” according to Francois Sonneville, Senior Analyst – Beverages at Rabobank .
“In North America, the overall market has held up relatively well, helped by its reliance on off-trade sales and stellar e-commerce growth. Brewers large and small have proved surprisingly nimble and adaptable – which may lead to notable changes to the on-premise moving forward,” says Sonneville. Craft brewers, who are more dependent on the on-trade, have so far avoided closures, although the winter might impact those dependent on outdoor seating.
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In Europe, on-trade markets have been hit hard, especially in tourist areas, and beer
going stale in kegs has caused additional problems. As new Covid cases are on the
rise and the risk of a second lockdown increases, chain integration might help to
lower costs.
Despite a sharp recovery in China, the loss of summer sales will hang over 2020
Asian beer volumes. As China comprises 70% of total Asian beer consumption, it is
critical to recovery. Thailand and Japan have shown smart recoveries in Q3 2020. For
the rest of Asia, specifically, India, the Philippines, and Vietnam, there are mixed
fortunes.

Beer company raises money for drought-affected farming community

A new Australian Beer has launched and $2.00 from every case will be donated to the charity ‘GIVIT’ to help raise much needed funds and equipment for those living in drought-affected communities.
Brewed in Goulburn, Southern NSW by award-wining Tribe Breweries, ‘Hughie’ is a light, refreshing lager made from 100 per cent Australian-grown hops and malt and makes a great, easy-drinking thirst-quencher at the end of a long hot day.
“The name ‘Hughie’ derives from the term “Send it down Hughie” which was a common Aussie bushman’s cry for rain at the turn of the 20th century, so it’s great to see that the money raised from the sale of Hughie can go towards helping those living in drought-affected communities today,” said Billy Ryan, category manager, craft beer, Dan Murphy’s.
Since late 2018, GIVIT has spent more than $600,000 in donated relief funds to co-ordinate over 140,000 items purchased in local communities to help 12,000 people across regional NSW affected by drought conditions.
“Being able to replace a water tank, mend a fence or purchase a week’s supply of groceries at the local store can make a significant positive contribution to a family dealing with drought,” said Scott Barrett, GIVIT’s NSW Manager. He said that last year was Australia’s driest on record and although some areas have received rainfall this year, it will take much more than a few showers to make any significant difference.
“Drought affects everyone in regional communities; farmers, their businesses and their families.  It affects lives, live-stock and livelihoods.  Whole communities are impacted: local businesses dry-up because of reduced spending and the effects run deep across generations, economically, socially and emotionally.  Many of these communities are now dealing with double-whammy of drought followed by bush-fires.  It doesn’t get any tougher than that.”
With its strong agricultural roots in wool production, Hughie’s birth-place and home in Goulburn, has also seen the far-reaching impact of drought:
“Drought really affected our local agricultural community over the last few years.  It’s fantastic to be producing a drop of great-tasting Goulburn beer that is 100 per cent Australian and gives back to the community it serves,” said Anton Szpitalak, Tribe Breweries, Goulburn.

Brewdog becomes carbon negative

Scottish craft brewer BrewDog has announced that it has taken the unprecedented step to become carbon negative, and that it will remove twice as much carbon from the air than it emits every single year. Making it the first carbon negative international beer brand in the world, as it sets out to fight climate change and have a positive impact on the planet.

The move is founded in its belief that carbon neutral is no longer enough, and that businesses should be having a positive impact on the planet. To this end, BrewDog is unveiling a climate action program with AUD $55m (£30m) of green investments across its business.

As part of these efforts, it has also purchased 2,050 acres of Scottish Highlands just north of Loch Lomond, to create the BrewDog Forest, and plans to plant one million trees over the next few years. Meanwhile, BrewDog Australia is introducing a host of green infrastructure projects and sustainability initiatives, including the introduction of solar-panels, a partnership Carbon Neutral’s Yarra Yarra Biodiversity Project to offset all excess C02 emissions, and the creation of a sustainable drive thru.

The news comes as BrewDog Australia launches its first Brisbane-brewed headliner beers.

Over the past few months BrewDog has been working closely with lead scientific advisor Professor Mike Berners-Lee and his team at Small World Consulting. Berners-Lee is one of the world’s leading experts in carbon foot-printing and sustainability and has led the process of calculating BrewDog’s carbon footprint and been pivotal in the design of its carbon removal plan. The partnership has helped to direct over AUD $55m (£30m) of investment into green infrastructure to support the business in reducing carbon emissions.

In order to double remove all of its carbon, until it is able to begin planting the BrewDog Forest, the brewer will be working with offset partners on a series of projects. Each organisation has the highest standard of accreditation and has been additionally vetted by Berners-Lee and his team with each project deemed beneficial to biodiversity and local communities.

“Our Carbon. Our Problem. So, we are going to fix it ourselves. Huge change is needed right now, and we want to be a catalyst for that change in our industry and beyond. We fully acknowledge that we are a long way from perfect. However, we are determined to rapidly and fundamentally change everything as we work hard to ensure we have a positive impact on the planet.” James Watt, co-founder of BrewDog commented,

Mike Berners Lee, Founder of Small World Consulting continued,

“After decades of inaction we have a full-on climate crisis on our hands. The scale and speed of the change we now need is enormous, and cuts right across politics, business and every corner of society. The good news is that if we are smart about our transition, we can make our lives better at the same time as making them more sustainable. With the actions laid out in this report, BrewDog is giving some of the leadership the world so badly needs. They are raising the bar for the business world, both in their strong carbon cutting action and their straight talking. BrewDog beer can represent another small nudge for a better world.”

BrewDog Australia will soon be adding solar-panels to supply a significant amount of the energy demand from the brewery, taproom and restaurant and is providing all spent grain to feed local cattle in Queensland. Excess CO2 emissions are offset through Carbon Neutral’s Yarra Yarra Biodiversity Corridor, a multi-species native reforestation project located in Southwest Australia which is a global biodiversity hotspot. This Australian Native Reforestation Gold Standard certified project aims to remove existing carbon and improve the environment by planting native species of trees and shrubs to recreate a healthy, functioning landscape, restored after decades of habitat loss and degradation.

BrewDog Australia is also looking to work with green partners, all of which have the highest standard of accreditation, and has plans to launch a sustainable drive thru that will act as beer collection points, hubs for electronic vehicle deliveries and hubs for closed loop, zero waste packaging such as growlers, mini-kegs and returnable bottles. Further details on this will be announced in due course.

A spokesperson for Carbon Neutral said:

“Carbon Neutral is delighted to be working with BrewDog as part of its carbon offset strategy. BrewDog has done more than address our very real climate crisis; it has also acknowledged the need to halt biodiversity loss by funding native reforestation in the Outback of Australia. BrewDog’s approach shows a true awareness of our impact on the planet – by reducing its GHG emissions and supporting the Yarra Yarra Biodiversity Corridor, BrewDog is helping to bring life back to barren landscape.”

One of BrewDog’s primary reasons for investing in local brewing and opening a site in Brisbane is to significantly reduce the miles the beer travelled to reach the consumer. Having unveiled its state-of-the-art Australian Brewery and Taproom in Queensland’s capital city late last year, BrewDog can now offer fans across the country the opportunity to enjoy freshly-brewed BrewDog beer – dispatched the next working day.

The headliner range includes the beer that started BrewDog’s craft beer revolution, Punk IPA, alongside Hazy Jane New England IPA, Elvis Juice Grapefruit Infused IPA, and a West Coast classic Pale Ale.

Since opening in Brisbane last November, BrewDog has been working hard to establish strong Aussie roots – pouring the best craft beer from across the Sunshine State including Range Brewing, Black Hops, Brouhaha, Aether and Sea Legs at the taproom and restaurant. Having debuted its first Australian exclusive 3.5 per cent Easy Pale Ale back in January, the team is keen to create more small batch brews and show their commitment to supporting other Queensland businesses and collaborating with local distilleries like Beenleigh Rum to create exclusive Queensland-made products.

BrewDog’s expansion into Australia has been supported by the Queensland Government through the Advance Queensland Industry Attraction Fund and Brisbane City Council through Brisbane Economic Development Agency. The brewery is creating a breadth of new jobs for Queensland’s craft brewing industry, with a team of 50 and around a dozen more jobs expected before the end of the year, helping to boost economic growth in Brisbane. The team are also committed to making the business as environmentally sustainable as possible to help support Queensland’s unique environment.

Brisbane Lord Mayor Adrian Schrinner encouraged residents to get behind local producers, such as BrewDog.

“Brisbane is a clean, green city and council supports innovative businesses that take a proactive approach to environmental sustainability,” Cr Schrinner said.

“It is also great to see BrewDog beer being produced right here in our backyard for local and national distribution. This type of job-creating investment in key sectors such as food and beverage will help drive our city’s recovery and future growth as we climb out of the economic hole created by the global pandemic. It’s our civic duty; if we’re going to crack a brew on the weekend, make it local first.”

Global drinks industry M&A deals total $706.92m in Q2 2020

Total drinks industry M&A deals in Q2 2020 worth $706.92m were announced globally, according to GlobalData’s deals database.

The value marked a decrease of 86.9 per cent over the previous quarter and a drop of 85.8 per cent when compared with the last four-quarter average, which stood at $4.99bn.

Comparing deals value in different regions of the globe, North America held the top position, with total announced deals in the period worth $385.07m. At the country level, the US topped the list in terms of deal value at $385m.

In terms of volumes, North America emerged as the top region for drinks industry M&A deals globally, followed by Asia-Pacific and then Europe.

The top country in terms of M&A deals activity in Q2 2020 was the US with 12 deals, followed by the UK with four and China with four.

In 2020, as of the end of Q2 2020, drinks M&A deals worth $6.09bn were announced globally, marking an increase of 123.5% year on year.

Drinks industry M&A deals in Q2 2020: Top deals
The top five drinks industry M&A deals accounted for 100 per cent of the overall value during Q2 2020.

The combined value of the top five drinks M&A deals stood at $706.85m, against the overall value of $706.92m recorded for the month.

The top five drinks industry deals of Q2 2020 tracked by GlobalData were:

  • Shanghai Yuyuan Tourist Mart’s $265.91m acquisition of Jinhui Liquor
  • The $255m asset transaction with Constellation Brands by SazeracInc
  • E. & J. Gallo Winery’s $130m asset transaction with Constellation Brands
  • The $46.82m acquisition of Tianjin Heavenly Palace Winery by Tianjin Food Group
  • PepsiCo’s acquisition of Rude Health Foods for $9.11

Coopers 2020 Vintage Ale a homage to brewery’s history

A special barley variety named after the original site of Coopers Brewery brings a historic touch to the 20th year celebration of Vintage Ale.

The Coopers 2020 Vintage Ale features Leabrook barley, named after the former site of the sixth generation Australian family-owned brewery. Coopers was located at Leabrook in Adelaide’s eastern suburbs from 1881 until 2001 when it moved to its current and expanded site at Regency Park.

The Leabrook barley variety, grown on the eastern slopes of the Adelaide Hills, has been crafted by the brewer’s maltster Dr Doug Stewart into pale malt, to which crystal and wheat malt is added to create an authentic Vintage Ale with a special twist.

Coopers 2020 Vintage Ale is the 20th in the series of Vintage Ales that commenced in 1998. Like all Coopers ales, the 2020 Vintage Ale undergoes secondary fermentation and natural
conditioning. It retains an alcohol level of 7.5 per cent ABV.

All Hands available in cans

All Hands Brewing House  has canned four of its award-winning brews, and will be available across 24 Dan Murphy’s stores in Sydney.

All Hands and Signature Hospitality Group CEO, James Sinclair, explains that the move has been an  exciting one for the brand.

“We had been toying with the idea of canning and selling our brews via retail for a while, but the current coronavirus pandemic gave us the nudge we needed. We’re starting locally with the tremendous support of Dan Murphy’s in Sydney, but there is potential to grow if this is successful in the future. We’re lucky to have an incredible and award-winning Head Brewer at All Hands, Sam Clayman, who has worked tirelessly to bring this idea to life in such a short amount of time,” said Sinclair.

Indie Beer Day set down for July 25

On Saturday, July 25, independent beer fans across the country are coming together to say, “Cheers to Indie Beer”.

Only the second of its kind, Indie Beer Day and the nationwide synchronised toast at 7 pm (AEST), is designed to celebrate resilience, survival, and easing (in some states) of restrictions. Most of all, it’s a toast to the great indie brewers and venues who have been doing it tough, many of which were dealing with fires and floods before this pandemic even began.

Breweries, pubs, and venues across the country are hosting celebrations (both physical and virtual), launching beers, and offering special deals to help us raise a glass to our favourite indie beer.

“With restrictions eased in most states, we need Indie Beer Day now more than ever. We need the people who love and support indie producers to give our industry a much-needed boost in every way,” explains Independent Brewers Association (IBA) General Manager Kylie Lethbridge. “Many indie breweries are located in regional areas, so the loss of regional tourism and pub closures has hit them hard.”

“Whether you’re buying takeaway beers, ordering your indie mixed pack online, having a small gathering with mates or heading to your favourite local for drinks, make sure you ask for indie beer and raise a drink with us at 7pm on the 25th,” says Lethbridge.

Sydney’s Northern beaches will hit party mode as Modus Operandi celebrates its 6th birthday with new brews, top food, and tunes. Traveling north to Queensland, newly established Straddie Brewing Co will be launching their Point Lookout Lager, and Bribie Island Brewing Company will be reopening its doors for the first time since lockdown. Over in South Australia Little Bang Brewing Company is showcasing 21 taps of indie beers from around the country. While Melbourne may be in lockdown, it doesn’t mean they’re not joining in the fun – Killer Sprocket is offering take away specials all day. From Margaret River to the Top End and all the way down south in New Norfolk, Tassie, you’ll be able to find indie beer and venues elebrating in style. In fact, some indie brewers have donned their dancing shoes to get people excited for the day.

NSW government provides relief to indie brewers

NSW Deputy Premier and Minister for Regional NSW, John Barilaro, announced welcome support NSW independent brewers by providing financial assistance to the Independent Brewers Association (IBA) to implement a range of measures that aim to pave the way for recovery.

Barilaro revealed $135,000 would contribute to the cost of memberships for the 120 independent breweries in NSW for a year and $60,000 would go to a partnership associated with the IBA’s annual conference, BrewCon being held in November. These contributions ensure the industry body can continue to provide valuable assistance and resources for members during their recovery from the Coronavirus crisis.

The Independent Brewers Association represents over 600 small and medium business in every state and territory across Australia with a majority of members located in regional areas. We directly employ over 3,000 people and support the employment of more than 25,000 in related industries of agriculture, logistics, hospitality, manufacturing and services.

“Our region depends on tourism, so we’ve been struggling to hang on, especially after the fires and then Coronavirus. This support will allow us to keep staff onboard and focus on getting new beers ready for our local community and the next tourist season.” explains Jacob Newman from Eden Brewery.

The support follows on from the NSW Independent Brewers Action Plan launched by the Deputy Premier late last year which contained a broad range of initiatives to support growth in the sector. This new funding recognises that the industry has been devastated by the Coronavirus pandemic and that NSW breweries will struggle to recover without assistance.

“We’d like to thank Deputy Premier John Barilaro for being a champion of the independent brewing industry, his support has been essential in delivering policy and regulatory changes that will have long-term benefits for every NSW brewery. This strong partnership with the NSW Government is crucial for the health of our industry and it is the first step toward recovery for NSW breweries and their employees”, said Peter Philip, IBA Chair and founder of Wayward Brewing Company.

“Our industry has been doing it tough, especially small breweries based in regional areas that rely so heavily on tourism and taprooms for survival. A large percentage have lost nearly all their revenue since the pandemic started. This support will go a long way to alleviating some of the immediate pressures being faced these small, family owned and operated businesses.” explains Philip.

Furthermore, the NSW Government is lending its voice and asking the Federal Government to provide tailored responses for our industry, including modifying the small brewer excise refund scheme and developing a national strategy for the independent beer industry.

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