CURRENT ISSUES

What's in the news?

ere we report items of note that might be of interest to our readers; understandably these items are picked based upon what we view to be of importance to the industry as a whole. We do, however, hope they will promote further discussion and research into the topics presented. We will pick up items from various reliable news sources, briefly review the story-line and content and then provide additional links or references to those stories as appropriate. Our coverage can broaden depending upon our own readers' interests. We will try and pick stories that have long lasting impact and whose storyline will be ongoing and worth keeping an eye on.  [A link to Just-drinks.com, for more up-to-date news, is provided under our summary at the bottom of this page.]

Current issues
Many News Items Are Now

Being Covered on the Home Page

FIRST QUARTER 2007:

Prichard's Rum to Hit Europe. Tennessee craft distiller Phil Pritchard has been rumored to be visiting Europe and taking his fine rum with him.  Showing that, as for craft beer, there may be a lucrative European market for US craft distilleries.  Phil will be at the American Distilling Institute's Rum Distilling Conference in Indiana - March (28-31, 2007) so go visit him there to get the facts.

Ready to Drink Beverages are on a slump - at least in Europe - according to recent reports. BACK TO TRADITIONAL SPIRITS and CRAFT BEERS?

The Womens Voice on Brewing and Wine: For some neat articles on Beer, Brewing and Wine see: http://www.bellaonline.com/articles/art41400.asp

Americans to sell wood-chip aged wines in Europe: (Causing a stir if not a "wine haze" in the European wine community) see:
http://www.msnbc.msn.com/id/11763752

Airline Magazines and Booze!

When I travel I look forward to reading articles on alcoholic beverages in the Airline magazines.  Most of the time there is one article of interest in each issue which shows that there is a lot of interest in such topics by the airline traveler.  Watch this space for the latest developments - these items will appear on thus rare occasions that we get to travel by air.

EARLY YEARS' NEWS

JAN 2006: - BEER FINALLY REDUCED TO ITs ROOT PRINCIPLES?:

Research has now provided the first solid evidence for the keY components in beer responsible for "The beer AROMA". Further details appear on the journals page.

DEC 2005 - MAJOR NEW BOOK WITH IMPLICATIONS FOR THE INDUSTRY:

"Blue Ocean Strategy: How to create uncontested market space and make the competition irrelevant" (2005) W. Chan Kim and Renee Mauborgne - Harvard Business School Press, Boston, MA. ISBN: 1-59139-619-0. Creating new markets for wine and avoiding competition. A novel approach to business is discussed in this new book by Chan and Mauborgne.  The US wine industry is featured as a case in point but with the Australians gaining a major foothold in the US marketplace based upon new strategies and business principles.  This approach would be worth looking at by brewers and distillers as well as enologists in the ever competitive and cut-throat world of today. Learn how to carve out new market space.

WILL YOU STILL BE RELEVANT IN 2006?


RELIEVING ASIAN DRINKER'S DISTRESS: FLUSHING SYMPTOMS AND BEYOND.
From the Wall Street Journal - Tue. Aug. 16, 2005 (Page D6).  About 40% of the Asian Population carry a gene that makes it very difficult for them to adequately metabolize alcohol.  This in turn puts them at a greater risk of cancers linked to drinking.  But hope may be on the way as several companies are working on products that may relieve the flushing symptoms.  The condition of "Asian Flush" or acetaldehydemia is related to the build-up of the "toxin" acetaldehyde (which will be a feature soon on our Flavor Corner page). Most of the rest of the world's population can normally metabolize (and excrete) the toxic acetaldehyde before it builds up to dangerous levels. The article goes on to discuss the symptoms or flush factors involved with this condition, the populations affected by having the gene in question, the biochemistry behind the condition and the potential "pill" that will "cure" this flush.


France's power in the world of wine continues to fade.
Consumers are ever savvy and they know more about what they want than ever before. Chris Mercer in "Whining about wine" on the BeverageDaily.com site (30/05/2005) reports on the status of France in relation to other wine producing countries and that the decline in interest for French wines is due, at least in part, to failing to please the modern consumer. The upshot of the article appears to be "Watch out for new marketing efforts from the French winemakers" as they struggle to regain lost ground.

Sales booming for more expensive wines. According to Nielsen ratings and the Wine Institute more expensive wines are gaining in popularity. New wines, new packaging and new more modern-looking labels are generating excitement with consumers. Moreover, it is suggested that the movie (according to recent web reviews) "Sideways" (featuring a road trip through California wine country) might be having an impact with respect to wine sales. [More info. at: http://www.wineinstitute.com and http://www.acnielsen.com.]


US Supreme court ruling will have important
ramifications for out of state wine purchases.
 
Wineries see potential to boost sales following the Supreme Court ruling in May that paves the way for more direct (including State to State) wine shipments. The shakeout will ripple for months as each state decides how to work with the decision handed down. This was the BIG news emanating from the news sources on May 16th, 2005. The sale and shipment of wines by vineyards from State to State has been fraught with difficulties and controversy for quite sometime. The US Supreme court decided that current laws governing such sales were discriminatory and anticompetitive. For the decision go to: http://wswa.org/public/media/20050516.html and to a pdf file of the hearings and rulings at http://scotus.ap.org/scotus/03-1116p.zo.pdf (cannot be launched from here). Various on-line news resources reported and continue to report on the developments of this important story. The story is worth following by all alcoholic beverage manufacturers and consumers as the widening of the market for sales, and the choices, of other alcoholic beverage classes could follow.

Herb may help cure Binge Drinking!
Kudzu, a non-indigenous, invasive vine contains a compound that might help reduce the intake of alcohol in humans.  This according to researchers at the Harvard-linked McLean Hospital. The web posted news article (May 17, 2005) covered details of the study and the physiology behind this compound's effects. [More news at http://www.mclean.harvard.edu and http://www.alcoholism-cer.com.]

WHAT DO ADULT CONSUMERS WANT IN FLAVORED MALT BEVERAGES? Ready to drink flavored malt beverages have seen a decline in popularity recently but an article published a year ago might be of interest to those still pursuing this market area. The brief article, in Progressive Grocer, Vol. 83: Issue 8 (Special Section, page 4), discusses issues with regard to flavored malt beverages and what it is that the older adult consumer is looking for.

Craft Beer Production Grows By 7.0%.  Recent reports show that, nationally, US sales of beer are down and that distilled beverage sales are on the rise. The National Brewers will have the clout to fight back the decline of their beer sales but the good news here is for the much smaller Craft Brewery Movement. According to the Brewers Association, the 2004 Craft Beer Industry Statistics show the 7% growth spurt. Craft brews are increasingly showing their standing in the market place and with the ever discriminating consumer. [More information at http://beertown.org/craftbrewing/statistics.html.]

The Great Beer Deconstruction.  A major grant ($300,000) has been awarded by the US Department of Agriculture to Mocon Microanalytics to develop a "Quality Control Detector" that can adjust the components of a beer to a defined standard. This will follow from a study as to how variables affect beer ingredients and, following careful measurements, as to how the various chemical elements found in beer contribute to aroma and overall flavor quality. [Source and details: the startribune on-line; story now removed from the news pages. Story also posted at www.siliconvalley.com and information at: www.mocon.com and www.mdgc.com.] [Lets hope they don't forget the consumer in all this work; after-all the most "perfectly constructed beer" might still be rejected by the people who, ultimately, matter the most - the consumer.]

Summary: The main issue, emanating from many of the news items discussed above, appears to be that consumers are becoming ever more educated and more demanding and discriminating in their choice (and source) of beverages. Moreover, producers (and marketers) need to pay heed to the consumer ever more closely in order to maintain and, ultimately, increase their share of the market.

While we cannot be held responsible or accountable for the content of material we report upon we do maintain responsibility for our interpretation and commentary on any and all news items reported on this page. However, we do not hold responsibility for any issues relating to the use or misuse of our interpretations and comments.

Want even more current news affecting your industry?  One of the best choices today for FREE drinks industry news, analysis and research is just a click away.  Click on the "Switch" button to your right to find out how to get more free news from the folks at AROQ and "just-drinks.com".

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Brewing and Distilling Analytical Services, LLC.

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