The Italian beer market

Six out of ten Italians like beer, and more often they are choosing it over wine (20.6 % vs. 18 %). Seven years ago, the disparity between the two beverages (wine 38 %, beer 22.7 %) was clear-cut. At home, beer has also become more popular. The number of beer lovers has doubled; in the evenings, particularly for “special” occasions, beer is served at one of every three gatherings, with the same frequency as white wine. Beer’s effervescence (which has really enchanted the Italians) and its distinctive flavor have met with approval in Italy under the condition that it is served with a large head of foam and in the proper glass, even if two out of every ten Italians – ignoring all the rules of etiquette – drink directly from the bottle.

Brand values

Determining sensory preferences | Bidding for brands in the international beer market place has reached a peak. By mimicking the “growth by acquisition” of the main players in the spirits sector global brewers appear to have an insatiable appetite plus inexhaustible coffers for any attractive beer brand which appears to be in the shop window. This has brought with it a new set of problems with the pressing need for exceptional brand image creativity to help separate the sheep from the goats, coping with a self-opinionated retail trade diffident in its respect for brand propositions, and other market stresses. If the inherent sensory quality factors of drinking a particular beer could be understood in consumer preference terms would that help influence the buying decision? Acknowledging the difficulty in measuring these intrinsic values of a brand has been a block in the past. In partnership with a prominent UK market research organisation (Marketing Sciences of Winchester, UK) Better Lines has developed a methodology based on sensory evaluations/selected chemical analyses to identify the principal components determining consumer sensory preference.

If only there was more of Africa

The Republic of South Africa, prominently projected as a rainbow nation throughout the world football season, has done Africa proud. From the comfort of my living room I watched many of the Football World Cup matches. Not that I am a soccer fan. I just wanted to see for myself the century held presumptions and stereotypes about Africa dispersed. Jubilant African soccer fans put the prejudice to rest that the continent is all about woes, worries and what nots. And if it took the damned vuvuzelas’ incessant, monotonous, droning moan, which had millions of viewers and even players screaming for a little peace and quiet, to blast any remnant prejudgment out of our minds, so be it. Yes, Africa can. Now let them have a beer to that.

Heat recovery pushes down costs for compressed air

Much energy input is needed to generate compressed air. When a lot is needed, there is usually also room for big savings. If looking for possibilities for saving energy and costs in compressed air systems, one will strike it rich quickly in most instances. Compressor waste heat – oftentimes completely unused – has one of the largest dormant savings potential.

The Brewers Association, the trade association representing the majority of U.S. brewing companies, today released strong mid-year numbers for America’s small and independent craft brewers. Dollar sales were up 12 percent in the first half of 2010, compared to 9 percent growth during the same period in 2009. Volume of craft brewed beer sold grew 9 percent for the first six months in 2010, compared to 5 percent growth in the first half of 2009.

India is one of the fastest growing economies in the world. Today India is the tenth largest economy and the third largest food processor worldwide. Due to the extraordinary developments in all important industrial sectors, the demand for machinery and equipment has grown rapidly within the last ten years - a demand that cannot be met exclusively out of India’s production.

Decarbonising the distribution of beer

Governments around the world now agree that the increase in global temperatures (above pre-industrial levels) must be limited to 2 °C by 2100 to keep the adverse effects of climate change within acceptable limits. This will entail a global reduction in CO2 emissions of 50 percent by 2050 (against 1990 levels), with developed countries cutting their emissions by around 80 percent. The World Economic Forum and Accenture [1] have estimated that logistics accounts for roughly 5.5 percent of global greenhouse gas (GHG) emissions. This GHG “footprint” may appear relatively modest, though, unlike that of most other sectors, it is expanding.

It ain’t over yet

| It must be high summer, when all rational discussion of important issues is cast aside for the perennial debate on “who is doing lunch or being lunch” which has driven mergers and acquisitions in the brewing industry around the world for the past 15 years. Following the break-up of Scottish & Newcastle and the take­over of Anheuser-Busch two years ago, several armchair pundits declared that the beer monopoly game was over. All said and done. Finished. No more. However, many tablecloth strategists would not accept this verdict. Indignantly, they pulled out their crystal balls, polished them off furiously and peered into them. Here is what they saw at the murky bottom.

More regulation, please!

You have to give it to him, in the fine art of psychological warfare AB-InBev’s CEO Carlos Brito is a pro. Last year, at an analyst meeting, his executives reportedly thought aloud that their U.S. unit Anheuser-Busch (A-B) could sell half of its volume directly to retailers. Hang on, how would that square with the Three Tier System? Wholesalers have been a crucial part of the beer-selling process in the U.S. since the end of Prohibition in 1933. After repeal, states generally required brewers to sell to distributors. Never mind if Mr Brito can really pull this one off. But the remark has had the desired effect: beer wholesalers have been up in arms, sensing their state-mandated monopoly is under attack. While Three Tier opponents are making antitrust challenges, calling the wholesaler tier a license to print money, wholesalers insist that they primarily serve the public good and have called upon legislators for greater protection. The protracted legal and political battles over beer distribution with their undercurrents of power, money and protectionism only underline that what started out as a social model has turned into such a successful business model that it is rousing the jealousy of the first and third tier.

Minimum pricing to combat binge drinking

It is not clear how the ban on selling alcohol below cost price could be enforced as retailers would be reluctant to reveal commercially sensitive details of deals with suppliers.