Draft Equipment

By Clementine Fletcher

Jan. 25 (Bloomberg) -- Global brewers, after spending $195 billion on acquisitions in the last decade, may slow the pace of deals in 2012 as beermakers struggle to maintain profit growth amid rising costs and weaker demand in the U.S. and Europe.

The two biggest companies to emerge from the spree, Budweiser owner Anheuser-Busch InBev NV and SABMiller Plc, are best positioned to profit with a presence spread over Africa, Asia and Latin America, while smaller rivals Carlsberg A/S and Heineken NV may suffer from their higher exposure to Europe.

Brewers will be “just getting through 2012, keeping their heads down, managing price and trying to keep input costs down,” Trevor Stirling, an analyst at Sanford C. Bernstein, said. “It’s going to be tough for everyone, and particularly Carlsberg and Heineken.”

More than $21 billion changed hands for beer assets in 2011, topped by SABMiller’s A$10.5 billion ($11 billion) takeover of Foster’s Group Ltd. That made it the busiest year since 2008, when InBev NV paid $52 billion for Anheuser-Busch Cos. As sales volume growth decelerates and the cost of making beer rises, companies including the integrated AB InBev, Heineken and Carlsberg may focus more on running their own businesses this year than buying others.

Carlsberg shares have dropped 25 percent in Copenhagen in the past year and Amsterdam-based Heineken has dropped 4 percent, compared to gains of 14 percent at SABMiller and 13 percent at AB InBev. Carlsberg said in November that it plans to eliminate as many as 150 jobs across Europe.

Reduced Forecasts

Heineken and Carlsberg both cut their forecasts last year due to tough conditions in Europe and Russia. Grain harvests have also been relatively poor in the area this year, according to Stirling, which could lead to sustained high costs in 2012 weighing on their margins.

The amount of beer sold may rise 3.1 percent from 2012 through 2016, slower than the 4.9 percent increase in the four years ended 2008, according to analysts at Nomura including Ian Shackleton. Commodity costs are higher, including malting barley, a key ingredient in beer, which has risen 65 percent since the futures contract started trading in May 2010.

“It’s unlikely that growth will return to historical high levels of 2005 to 2008,” Nomura wrote in a note. “The cost of business is set to rise.”

Beer Volume

Beer volume and revenue growth may be particularly limited in Europe and the U.S. as brewers compete for sales amid economic turmoil and high unemployment. SABMiller, the first brewer to post results for the three months through December, reported declining volumes in both regions, as every other unit grew. Carl Short, an analyst at S&P Capital IQ in London, said “recessionary conditions” may return to Europe this year.

Beermakers may have to rely on internal cost cutting as price increases may be limited. Carlsberg and Heineken may have a “really tough time managing the pricing mechanism,” said Anthony Bucalo, an analyst at Banco Santander.

Carlsberg, which exited or sold sites in Switzerland, Finland, Germany and Norway since 2009, may close more breweries and cut costs, according to Nomura analysts.

AB InBev should deliver $270 million of so-called synergies this fiscal year from the Anheuser-Busch acquisition, and Heineken will give details of a new cost-reduction plan when it reports full-year results Feb. 15.

Trading at Premium

Analysts at Nomura and UBS AG have reduced their outlooks on the beverage industry, which also includes spirits companies. The stocks “already command a significant premium to the market,” according to Nomura’s Shackleton.

Deals including Heineken’s purchase of Fomento Economico Mexicano SAB’s beer unit in 2010 and SAB’s takeover of Foster’s have previously helped brewers diversify into faster-growth regions away from the U.S. and Europe. With Brazil’s Schincariol Participacoes & Representacoes also off the market after Japan’s Kirin Holdings Co. swooped in last year, big acquisitions may be tough to find in 2012.

“There are fewer assets out there that move the needle,” said Anthony Bucalo, an analyst at Banco Santander. “We’re going into a period where companies are inward-focused.”

Carlsberg could make small acquisitions in Asia. The Danish brewer’s biggest deal in 2011 was buying 30 percent of China’s Chongqing Brewery Co. for about $31 million.

Any buyer with an eye on Corona brewer Grupo Modelo SAB, Groupe Castel and Turkey’s Anadolu Efes would have to wrangle with family ownership and existing joint ventures.

Expanding outside Europe and the U.S. isn’t necessarily a quick fix for brewers. SABMiller said Jan. 19 that Foster’s pro- forma sales slid 6 percent in the quarter ended Dec. 31, raising concern from some analysts that benefits from the acquisition could be harder to come by.

“Realistically, it’s probably not on anybody’s agenda” in 2012, Bucalo said. “This looks like kind of a low-drama year.”

--Editors: Sara Marley, Rick Schine

To contact the reporter on this story: Clementine Fletcher in London cfletcher5@bloomberg.net.

To contact the editor responsible for this story: Sara Marley at smarley1@bloomberg.net

By Clementine Fletcher

Jan. 25 (Bloomberg) -- Global brewers, after spending $195 billion on acquisitions in the last decade, may slow the pace of deals in 2012 as beermakers struggle to maintain profit growth amid rising costs and weaker demand in the U.S. and Europe.

The two biggest companies to emerge from the spree, Budweiser owner Anheuser-Busch InBev NV and SABMiller Plc, are best positioned to profit with a presence spread over Africa, Asia and Latin America, while smaller rivals Carlsberg A/S and Heineken NV may suffer from their higher exposure to Europe.

Brewers will be “just getting through 2012, keeping their heads down, managing price and trying to keep input costs down,” Trevor Stirling, an analyst at Sanford C. Bernstein, said. “It’s going to be tough for everyone, and particularly Carlsberg and Heineken.”

More than $21 billion changed hands for beer assets in 2011, topped by SABMiller’s A$10.5 billion ($11 billion) takeover of Foster’s Group Ltd. That made it the busiest year since 2008, when InBev NV paid $52 billion for Anheuser-Busch Cos. As sales volume growth decelerates and the cost of making beer rises, companies including the integrated AB InBev, Heineken and Carlsberg may focus more on running their own businesses this year than buying others.

Carlsberg shares have dropped 25 percent in Copenhagen in the past year and Amsterdam-based Heineken has dropped 4 percent, compared to gains of 14 percent at SABMiller and 13 percent at AB InBev. Carlsberg said in November that it plans to eliminate as many as 150 jobs across Europe.

Reduced Forecasts

Heineken and Carlsberg both cut their forecasts last year due to tough conditions in Europe and Russia. Grain harvests have also been relatively poor in the area this year, according to Stirling, which could lead to sustained high costs in 2012 weighing on their margins.

The amount of beer sold may rise 3.1 percent from 2012 through 2016, slower than the 4.9 percent increase in the four years ended 2008, according to analysts at Nomura including Ian Shackleton. Commodity costs are higher, including malting barley, a key ingredient in beer, which has risen 65 percent since the futures contract started trading in May 2010.

“It’s unlikely that growth will return to historical high levels of 2005 to 2008,” Nomura wrote in a note. “The cost of business is set to rise.”

Beer Volume

Beer volume and revenue growth may be particularly limited in Europe and the U.S. as brewers compete for sales amid economic turmoil and high unemployment. SABMiller, the first brewer to post results for the three months through December, reported declining volumes in both regions, as every other unit grew. Carl Short, an analyst at S&P Capital IQ in London, said “recessionary conditions” may return to Europe this year.

Beermakers may have to rely on internal cost cutting as price increases may be limited. Carlsberg and Heineken may have a “really tough time managing the pricing mechanism,” said Anthony Bucalo, an analyst at Banco Santander.

Carlsberg, which exited or sold sites in Switzerland, Finland, Germany and Norway since 2009, may close more breweries and cut costs, according to Nomura analysts.

AB InBev should deliver $270 million of so-called synergies this fiscal year from the Anheuser-Busch acquisition, and Heineken will give details of a new cost-reduction plan when it reports full-year results Feb. 15.

Trading at Premium

Analysts at Nomura and UBS AG have reduced their outlooks on the beverage industry, which also includes spirits companies. The stocks “already command a significant premium to the market,” according to Nomura’s Shackleton.

Deals including Heineken’s purchase of Fomento Economico Mexicano SAB’s beer unit in 2010 and SAB’s takeover of Foster’s have previously helped brewers diversify into faster-growth regions away from the U.S. and Europe. With Brazil’s Schincariol Participacoes & Representacoes also off the market after Japan’s Kirin Holdings Co. swooped in last year, big acquisitions may be tough to find in 2012.

“There are fewer assets out there that move the needle,” said Anthony Bucalo, an analyst at Banco Santander. “We’re going into a period where companies are inward-focused.”

Carlsberg could make small acquisitions in Asia. The Danish brewer’s biggest deal in 2011 was buying 30 percent of China’s Chongqing Brewery Co. for about $31 million.

Any buyer with an eye on Corona brewer Grupo Modelo SAB, Groupe Castel and Turkey’s Anadolu Efes would have to wrangle with family ownership and existing joint ventures.

Expanding outside Europe and the U.S. isn’t necessarily a quick fix for brewers. SABMiller said Jan. 19 that Foster’s pro- forma sales slid 6 percent in the quarter ended Dec. 31, raising concern from some analysts that benefits from the acquisition could be harder to come by.

“Realistically, it’s probably not on anybody’s agenda” in 2012, Bucalo said. “This looks like kind of a low-drama year.”

--Editors: Sara Marley, Rick Schine

To contact the reporter on this story: Clementine Fletcher in London cfletcher5@bloomberg.net.

To contact the editor responsible for this story: Sara Marley at smarley1@bloomberg.net

By Clementine Fletcher

Jan. 25 (Bloomberg) -- Global brewers, after spending $195 billion on acquisitions in the last decade, may slow the pace of deals in 2012 as beermakers struggle to maintain profit growth amid rising costs and weaker demand in the U.S. and Europe.

The two biggest companies to emerge from the spree, Budweiser owner Anheuser-Busch InBev NV and SABMiller Plc, are best positioned to profit with a presence spread over Africa, Asia and Latin America, while smaller rivals Carlsberg A/S and Heineken NV may suffer from their higher exposure to Europe.

Brewers will be “just getting through 2012, keeping their heads down, managing price and trying to keep input costs down,” Trevor Stirling, an analyst at Sanford C. Bernstein, said. “It’s going to be tough for everyone, and particularly Carlsberg and Heineken.”

More than $21 billion changed hands for beer assets in 2011, topped by SABMiller’s A$10.5 billion ($11 billion) takeover of Foster’s Group Ltd. That made it the busiest year since 2008, when InBev NV paid $52 billion for Anheuser-Busch Cos. As sales volume growth decelerates and the cost of making beer rises, companies including the integrated AB InBev, Heineken and Carlsberg may focus more on running their own businesses this year than buying others.

Carlsberg shares have dropped 25 percent in Copenhagen in the past year and Amsterdam-based Heineken has dropped 4 percent, compared to gains of 14 percent at SABMiller and 13 percent at AB InBev. Carlsberg said in November that it plans to eliminate as many as 150 jobs across Europe.

Reduced Forecasts

Heineken and Carlsberg both cut their forecasts last year due to tough conditions in Europe and Russia. Grain harvests have also been relatively poor in the area this year, according to Stirling, which could lead to sustained high costs in 2012 weighing on their margins.

The amount of beer sold may rise 3.1 percent from 2012 through 2016, slower than the 4.9 percent increase in the four years ended 2008, according to analysts at Nomura including Ian Shackleton. Commodity costs are higher, including malting barley, a key ingredient in beer, which has risen 65 percent since the futures contract started trading in May 2010.

“It’s unlikely that growth will return to historical high levels of 2005 to 2008,” Nomura wrote in a note. “The cost of business is set to rise.”

Beer Volume

Beer volume and revenue growth may be particularly limited in Europe and the U.S. as brewers compete for sales amid economic turmoil and high unemployment. SABMiller, the first brewer to post results for the three months through December, reported declining volumes in both regions, as every other unit grew. Carl Short, an analyst at S&P Capital IQ in London, said “recessionary conditions” may return to Europe this year.

Beermakers may have to rely on internal cost cutting as price increases may be limited. Carlsberg and Heineken may have a “really tough time managing the pricing mechanism,” said Anthony Bucalo, an analyst at Banco Santander.

Carlsberg, which exited or sold sites in Switzerland, Finland, Germany and Norway since 2009, may close more breweries and cut costs, according to Nomura analysts.

AB InBev should deliver $270 million of so-called synergies this fiscal year from the Anheuser-Busch acquisition, and Heineken will give details of a new cost-reduction plan when it reports full-year results Feb. 15.

Trading at Premium

Analysts at Nomura and UBS AG have reduced their outlooks on the beverage industry, which also includes spirits companies. The stocks “already command a significant premium to the market,” according to Nomura’s Shackleton.

Deals including Heineken’s purchase of Fomento Economico Mexicano SAB’s beer unit in 2010 and SAB’s takeover of Foster’s have previously helped brewers diversify into faster-growth regions away from the U.S. and Europe. With Brazil’s Schincariol Participacoes & Representacoes also off the market after Japan’s Kirin Holdings Co. swooped in last year, big acquisitions may be tough to find in 2012.

“There are fewer assets out there that move the needle,” said Anthony Bucalo, an analyst at Banco Santander. “We’re going into a period where companies are inward-focused.”

Carlsberg could make small acquisitions in Asia. The Danish brewer’s biggest deal in 2011 was buying 30 percent of China’s Chongqing Brewery Co. for about $31 million.

Any buyer with an eye on Corona brewer Grupo Modelo SAB, Groupe Castel and Turkey’s Anadolu Efes would have to wrangle with family ownership and existing joint ventures.

Expanding outside Europe and the U.S. isn’t necessarily a quick fix for brewers. SABMiller said Jan. 19 that Foster’s pro- forma sales slid 6 percent in the quarter ended Dec. 31, raising concern from some analysts that benefits from the acquisition could be harder to come by.

“Realistically, it’s probably not on anybody’s agenda” in 2012, Bucalo said. “This looks like kind of a low-drama year.”

--Editors: Sara Marley, Rick Schine

To contact the reporter on this story: Clementine Fletcher in London cfletcher5@bloomberg.net.

To contact the editor responsible for this story: Sara Marley at smarley1@bloomberg.net

Enlarge image

No Deals Brewing for Beermakers

More than $21 billion changed hands for beer assets in 2011, topped by SABMiller’s A$10.5 billion ($11 billion) takeover of Foster’s Group Ltd.

More than $21 billion changed hands for beer assets in 2011, topped by SABMiller’s A$10.5 billion ($11 billion) takeover of Foster’s Group Ltd. Photographer: Simon Dawson/Bloomberg

Global brewers, after spending $195 billion on acquisitions in the last decade, may slow the pace of deals in 2012 as beermakers struggle to maintain profit growth amid rising costs and weaker demand in the U.S. and Europe.

The two biggest companies to emerge from the spree, Budweiser owner Anheuser-Busch InBev NV (ABI) and SABMiller Plc (SAB), are best positioned to profit with a presence spread over Africa, Asia and Latin America, while smaller rivals Carlsberg A/S (CARLA) and Heineken NV (HEIA) may suffer from their higher exposure to Europe.

Brewers will be “just getting through 2012, keeping their heads down, managing price and trying to keep input costs down,” Trevor Stirling, an analyst at Sanford C. Bernstein, said. “It’s going to be tough for everyone, and particularly Carlsberg and Heineken.”

More than $21 billion changed hands for beer assets in 2011, topped by SABMiller’s A$10.5 billion ($11 billion) takeover of Foster’s Group Ltd. That made it the busiest year since 2008, when InBev NV paid $52 billion for Anheuser-Busch Cos. As sales volume growth decelerates and the cost of making beer rises, companies including the integrated AB InBev, Heineken and Carlsberg may focus more on running their own businesses this year than buying others.

Carlsberg shares have dropped 25 percent in Copenhagen in the past year and Amsterdam-based Heineken has dropped 4 percent, compared to gains of 14 percent at SABMiller and 13 percent at AB InBev. Carlsberg said in November that it plans to eliminate as many as 150 jobs across Europe.

Reduced Forecasts

Heineken and Carlsberg both cut their forecasts last year due to tough conditions in Europe and Russia. Grain harvests have also been relatively poor in the area this year, according to Stirling, which could lead to sustained high costs in 2012 weighing on their margins.

The amount of beer sold may rise 3.1 percent from 2012 through 2016, slower than the 4.9 percent increase in the four years ended 2008, according to analysts at Nomura including Ian Shackleton. Commodity costs are higher, including malting barley, a key ingredient in beer, which has risen 65 percent since the futures contract started trading in May 2010.

“It’s unlikely that growth will return to historical high levels of 2005 to 2008,” Nomura wrote in a note. “The cost of business is set to rise.”

Beer Volume

Beer volume and revenue growth may be particularly limited in Europe and the U.S. as brewers compete for sales amid economic turmoil and high unemployment. SABMiller, the first brewer to post results for the three months through December, reported declining volumes in both regions, as every other unit grew. Carl Short, an analyst at S&P Capital IQ in London, said “recessionary conditions” may return to Europe this year.

Beermakers may have to rely on internal cost cutting as price increases may be limited. Carlsberg and Heineken may have a “really tough time managing the pricing mechanism,” said Anthony Bucalo, an analyst at Banco Santander.

Carlsberg, which exited or sold sites in Switzerland, Finland, Germany and Norway since 2009, may close more breweries and cut costs, according to Nomura analysts.

AB InBev should deliver $270 million of so-called synergies this fiscal year from the Anheuser-Busch acquisition, and Heineken will give details of a new cost-reduction plan when it reports full-year results Feb. 15.

Trading at Premium

Analysts at Nomura and UBS AG have reduced their outlooks on the beverage industry, which also includes spirits companies. The stocks “already command a significant premium to the market,” according to Nomura’s Shackleton.

Deals including Heineken’s purchase of Fomento Economico Mexicano SAB’s beer unit in 2010 and SAB’s takeover of Foster’s have previously helped brewers diversify into faster-growth regions away from the U.S. and Europe. With Brazil’s Schincariol Participacoes & Representacoes also off the market after Japan’s Kirin Holdings Co. swooped in last year, big acquisitions may be tough to find in 2012.

“There are fewer assets out there that move the needle,” said Anthony Bucalo, an analyst at Banco Santander. “We’re going into a period where companies are inward-focused.”

Carlsberg could make small acquisitions in Asia. The Danish brewer’s biggest deal in 2011 was buying 30 percent of China’s Chongqing Brewery Co. for about $31 million.

Any buyer with an eye on Corona brewer Grupo Modelo SAB, Groupe Castel and Turkey’s Anadolu Efes would have to wrangle with family ownership and existing joint ventures.

Expanding outside Europe and the U.S. isn’t necessarily a quick fix for brewers. SABMiller said Jan. 19 that Foster’s pro- forma sales slid 6 percent in the quarter ended Dec. 31, raising concern from some analysts that benefits from the acquisition could be harder to come by.

“Realistically, it’s probably not on anybody’s agenda” in 2012, Bucalo said. “This looks like kind of a low-drama year.”

To contact the reporter on this story: Clementine Fletcher in London cfletcher5@bloomberg.net.

To contact the editor responsible for this story: Sara Marley at smarley1@bloomberg.net

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Global brewers, after spending $195 billion on acquisitions in the last decade, may slow the pace of deals in 2012 as beermakers struggle to maintain profit growth amid rising costs and weaker demand in the U.S. and Europe.

The two biggest companies to emerge from the spree, Budweiser owner Anheuser-Busch InBev NV (ABI) and SABMiller Plc (SAB), are best positioned to profit with a presence spread over Africa, Asia and Latin America, while smaller rivals Carlsberg A/S (CARLA) and Heineken NV (HEIA) may suffer from their higher exposure to Europe.

Brewers will be “just getting through 2012, keeping their heads down, managing price and trying to keep input costs down,” Trevor Stirling, an analyst at Sanford C. Bernstein, said. “It’s going to be tough for everyone, and particularly Carlsberg and Heineken.”

More than $21 billion changed hands for beer assets in 2011, topped by SABMiller’s A$10.5 billion ($11 billion) takeover of Foster’s Group Ltd. That made it the busiest year since 2008, when InBev NV paid $52 billion for Anheuser-Busch Cos. As sales volume growth decelerates and the cost of making beer rises, companies including the integrated AB InBev, Heineken and Carlsberg may focus more on running their own businesses this year than buying others.

Carlsberg shares have dropped 25 percent in Copenhagen in the past year and Amsterdam-based Heineken has dropped 4 percent, compared to gains of 14 percent at SABMiller and 13 percent at AB InBev. Carlsberg said in November that it plans to eliminate as many as 150 jobs across Europe.

Reduced Forecasts

Heineken and Carlsberg both cut their forecasts last year due to tough conditions in Europe and Russia. Grain harvests have also been relatively poor in the area this year, according to Stirling, which could lead to sustained high costs in 2012 weighing on their margins.

The amount of beer sold may rise 3.1 percent from 2012 through 2016, slower than the 4.9 percent increase in the four years ended 2008, according to analysts at Nomura including Ian Shackleton. Commodity costs are higher, including malting barley, a key ingredient in beer, which has risen 65 percent since the futures contract started trading in May 2010.

“It’s unlikely that growth will return to historical high levels of 2005 to 2008,” Nomura wrote in a note. “The cost of business is set to rise.”

Beer Volume

Beer volume and revenue growth may be particularly limited in Europe and the U.S. as brewers compete for sales amid economic turmoil and high unemployment. SABMiller, the first brewer to post results for the three months through December, reported declining volumes in both regions, as every other unit grew. Carl Short, an analyst at S&P Capital IQ in London, said “recessionary conditions” may return to Europe this year.

Beermakers may have to rely on internal cost cutting as price increases may be limited. Carlsberg and Heineken may have a “really tough time managing the pricing mechanism,” said Anthony Bucalo, an analyst at Banco Santander.

Carlsberg, which exited or sold sites in Switzerland, Finland, Germany and Norway since 2009, may close more breweries and cut costs, according to Nomura analysts.

AB InBev should deliver $270 million of so-called synergies this fiscal year from the Anheuser-Busch acquisition, and Heineken will give details of a new cost-reduction plan when it reports full-year results Feb. 15.

Trading at Premium

Analysts at Nomura and UBS AG have reduced their outlooks on the beverage industry, which also includes spirits companies. The stocks “already command a significant premium to the market,” according to Nomura’s Shackleton.

Deals including Heineken’s purchase of Fomento Economico Mexicano SAB’s beer unit in 2010 and SAB’s takeover of Foster’s have previously helped brewers diversify into faster-growth regions away from the U.S. and Europe. With Brazil’s Schincariol Participacoes & Representacoes also off the market after Japan’s Kirin Holdings Co. swooped in last year, big acquisitions may be tough to find in 2012.

“There are fewer assets out there that move the needle,” said Anthony Bucalo, an analyst at Banco Santander. “We’re going into a period where companies are inward-focused.”

Carlsberg could make small acquisitions in Asia. The Danish brewer’s biggest deal in 2011 was buying 30 percent of China’s Chongqing Brewery Co. for about $31 million.

Any buyer with an eye on Corona brewer Grupo Modelo SAB, Groupe Castel and Turkey’s Anadolu Efes would have to wrangle with family ownership and existing joint ventures.

Expanding outside Europe and the U.S. isn’t necessarily a quick fix for brewers. SABMiller said Jan. 19 that Foster’s pro- forma sales slid 6 percent in the quarter ended Dec. 31, raising concern from some analysts that benefits from the acquisition could be harder to come by.

“Realistically, it’s probably not on anybody’s agenda” in 2012, Bucalo said. “This looks like kind of a low-drama year.”

To contact the reporter on this story: Clementine Fletcher in London cfletcher5@bloomberg.net.

To contact the editor responsible for this story: Sara Marley at smarley1@bloomberg.net

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500 people RSVP'd to Saturday's Brew Ho Ho event in Wicker Park. It's an astounding number for an event centered around local homebrew clubs made more so by the fact that Maria's was hosting a Brewpub Shootout at the same time. As much as Chicago's craft brew community has grown in recent years, the homebrewing scene is probably more diverse in the beer being produced.

In fact, after tasting out close to 20 beers at Brew Ho Ho, we preferred some of the home brews over what's being produced locally. Home brewing clubs like Corazon, Soma Ale Werks, Big Dicks Brewing and Powell Brew House are making beer that would fly off shelves if they became full-fledged brewing operations.

Some homebrew clubs, like New Oberpfalz Brewing, are in the process of making the jump. Other homebrewers like improving their skills from those who came before them. Some of the best beers at Brew Ho Ho were made by Ryan Burke, a brewer who's working with Greg Hall on his Virtue Cider project. Burke's wheatwine was hands down the best beer at Brew Ho Ho, followed closely by two different smoked harvest apple ales. The first, made with a wit yeast, had a crisp effervescence to it. the one we preferred was brewed with Scotch ale yeast, giving the beer a warmer, richer flavor more suited to the weather.

Powell Brew House brought a variety of stouts to the event, none better than a peanut butter cup stout that was rich and sweet on the palate. Corazon is doing amazing work playing with Latin flavors in its ales, like adding tamarind to a brown ale or Mexican cocoa nibs to a firkin of stout. Tom Gustafson of Soma Ale Werks impressed with a breakfast stout aged in Pappy Van Winkle casks and a cucumber saison that balanced earthy yeast notes with sweetness.

Our columnist discovers a beer that completely screws with his perception of what a beer is.

THE impenetrably black liquid swirled around the goblet seductively, tempting me with its velvety smoothness. A whiff of rich dark chocolate and hints of sweet soy sauce rose from within the glass as I raised it to take a sip.

With that simple sip, layer upon layer of flavour started to hit my taste buds, from rich, dark chocolate to bitter stout, all enveloped by a syrupy sweetness of a port wine. After letting it sit for a while to warm up, another dimension of flavours emerged � warm, rich and slightly biscuit-y, with a dreamy, silky sweet finish.

Is the Black Tokyo* Horizon really a beer? At 17.2% alcohol base volume (ABV), it seemed closer to wine than beer; and as I was drinking it, my mind kept telling me that it was a beer, but my taste buds refused to acknowledge that it was a beer. What sorcery was this?

Scottish craft brewers BrewDogs have developed a strong following worldwide thanks to their rebellious punk rock philosophy and catchy beer names.

Selling for an incredible RM107++ per 330ml bottle at the newly opened craft beer bar Taps Beer Bar in Kuala Lumpur, one does not simply guzzle and gulp the Black Tokyo* Horizon. In fact, the beer is so rich and full-bodied that you couldn�t gulp it even if you wanted to. Like a port wine, the syrupy sweetness also means that it is hard to take more than a sip each time. Thankfully, the beer can be drunk warm as well, so you can just take your time and savour it slowly.

The Black Tokyo* Horizon is a special collaboration between three independent European breweries � BrewDog (Scotland), N�gne � (Norway) and Mikkeller (Denmark), and is a fusion of the respective breweries� big stouts, namely the Mikkeller Black, the BrewDog Tokyo*, and the N�gne � Dark Horizon. The beer is a small-run, limited-edition brew; and at the time of writing, there are only 10 bottles of the beer left at Taps.

It�s hard to believe that the Black Tokyo* Horizon is actually a beer. Then again, it is made by BrewDog, the Scottish punk rock brewers who have been actively pushing the boundaries of what �beer� actually is. Craft beers have always been about innovative ideas, rich flavours, and the constant pushing of boundaries; and BrewDog is one of the major movers of this particular trend in beer.

According to their official website (brewdog.com), BrewDog came about because founders James Watt and Martin Dickie were bored with all the industrially �brewed lagers and stuffy ales� that dominate the British beer market (as is the case with most craft brewers). So they decided that the best way to solve this problem was to brew their own beers.

Is that really a beer? The Black Tokyo* Horizon will challenge your perception of what actually is a beer.

During his keynote address at last year�s Asian Brewers Conference (part of Beerfest Asia) in Singapore, Watt said that the turning point came when they got an opportunity to meet Michael Jackson � not the late King of Pop, but the late writer who was considered Britain�s foremost expert on whisky and beer.

�We met him down in London and brought him some beers to try. We couldn�t believe it, �Michael Jackson is trying the beers we made at home!�,� said Watt. �He drank the beer, he shook his head, put the glass down and told us, �Boys, quit your jobs now, and start making beer!�

�We were both 24 at the time, and I was the captain of a fishing boat. I quit that, went to the bank, and got a loan to buy some brewing equipment,� he recalled. �We were so excited to be making our own beer, and our goal is to make other people as excited and passionate about good beer as we are. We wanted to show people there was an alternative to the mainstream beers that dominated the market in Britain.�

Watt and Martin founded BrewDog in April 2007, and it has since grown into Scotland�s largest independent brewery, producing about 120,000 bottles per month and boasting a hardcore following all over the world. This is mostly thanks to a combination of its rebellious punk rock philosophy (they proudly proclaim their beers to be �beer for punks� and �clever humans�), catchy beer names, crazy marketing gimmicks, and of course, their unique and craftily innovative beers.

As befitting their punk rock attitude, the brewery is not afraid to court controversy in their quest to push the boundaries of beer. They�ve brewed several beers that lay claim to being the strongest beers in the world, including Tactical Nuclear Penguin (32% ABV), Sink The Bismarck! (41% ABV); and the current record holder, The End Of The World (55% ABV), of which only 12 bottles were brewed, and bizarrely bottled in the bodies of small animals. Conversely in 2010, BrewDog produced Nanny State, a weak, 1.1%ABV in response to a controversy in Britain about their 18% ABV Tokyo* stout, just to show that there are just no limits to what a beer can be.

BrewDog beers are currently only available at Taps Beer Bar, which prides itself on having the most number of craft beers in Malaysia (it also carries an impressive range of craft beers from around the world, including those from Australia, Europe and America). Taps currently carries six different BrewDog beers, not including the aforementioned Black Tokyo* Horizon.

Trashy Blonde (4.1% ABV)

This is an easy drinking pale ale that has a nice fruity hoppy aroma, and a balance of flavours with just a hint of bitterness and subtle sweetness. Compared to the other BrewDog brews on the list, this is probably the least distinctive beer on the list.

There Is No Santa (4.7% ABV)

Christmas may be over, but you can relive the joy of the holiday through this limited-edition seasonal stout brewed with cocoa nibs and ginger stems. With a very distinct cinnamon nose and a Christmas-y gingerbread-like flavour, this is a great unique beer that we imagine goes pretty well with apple pie.

77 Lager (4.9% ABV)

Made with 100% malt and whole leaf hops, this is definitely a HUGE step up from commercial lagers, despite being quite light in texture and slightly sweet to boot. A good choice if you�re looking for something to drink all night.

5am Saint (5% ABV)

A great medium-bodied red ale with a fruity, floral aroma and a malty, slightly toast-like flavour. Of all the beers I tried from the BrewDog range, this was the closest one to a traditional British ale, in my humble opinion.

Alice Porter (6.2%ABV)

This rich brew is a union of one 300-year-old recipe and two cross-continental hop varieties. It is one of the best porters I�ve tried so far. It has a sweet, bubblegum-y nose that leads into a nice and smooth mouthfeel, with a subtle brown sugar-ish flavour.

Hardcore IPA (9.2%)

Don�t let the name fool you, this is a pretty easy drinking IPA (which stands for India Pale Ale) despite supposedly containing more hops and bitterness that any other beer brewed in Britain. It�s deceptively light and smooth for a 9.2% ABV beer, and is a wonderfully complex brew, with layer after layer of flavours dancing around your mouth, and a pleasant, sweet hoppy finish. Definitely one of my favourite BrewDog beers.

Taps Beer Bar is located at One Residency, 1 Jalan Nagasari, Off Jalan Raja Chulan, Kuala Lumpur. For inquiries, call 03-2110 1560 or visit www.tapsbeerbar.my. The outlet is closed today for Chinese New Year eve, but operations will resume tomorrow.

Our columnist discovers a beer that completely screws with his perception of what a beer is.

THE impenetrably black liquid swirled around the goblet seductively, tempting me with its velvety smoothness. A whiff of rich dark chocolate and hints of sweet soy sauce rose from within the glass as I raised it to take a sip.

With that simple sip, layer upon layer of flavour started to hit my taste buds, from rich, dark chocolate to bitter stout, all enveloped by a syrupy sweetness of a port wine. After letting it sit for a while to warm up, another dimension of flavours emerged � warm, rich and slightly biscuit-y, with a dreamy, silky sweet finish.

Is the Black Tokyo* Horizon really a beer? At 17.2% alcohol base volume (ABV), it seemed closer to wine than beer; and as I was drinking it, my mind kept telling me that it was a beer, but my taste buds refused to acknowledge that it was a beer. What sorcery was this?

Scottish craft brewers BrewDogs have developed a strong following worldwide thanks to their rebellious punk rock philosophy and catchy beer names.

Selling for an incredible RM107++ per 330ml bottle at the newly opened craft beer bar Taps Beer Bar in Kuala Lumpur, one does not simply guzzle and gulp the Black Tokyo* Horizon. In fact, the beer is so rich and full-bodied that you couldn�t gulp it even if you wanted to. Like a port wine, the syrupy sweetness also means that it is hard to take more than a sip each time. Thankfully, the beer can be drunk warm as well, so you can just take your time and savour it slowly.

The Black Tokyo* Horizon is a special collaboration between three independent European breweries � BrewDog (Scotland), N�gne � (Norway) and Mikkeller (Denmark), and is a fusion of the respective breweries� big stouts, namely the Mikkeller Black, the BrewDog Tokyo*, and the N�gne � Dark Horizon. The beer is a small-run, limited-edition brew; and at the time of writing, there are only 10 bottles of the beer left at Taps.

It�s hard to believe that the Black Tokyo* Horizon is actually a beer. Then again, it is made by BrewDog, the Scottish punk rock brewers who have been actively pushing the boundaries of what �beer� actually is. Craft beers have always been about innovative ideas, rich flavours, and the constant pushing of boundaries; and BrewDog is one of the major movers of this particular trend in beer.

According to their official website (brewdog.com), BrewDog came about because founders James Watt and Martin Dickie were bored with all the industrially �brewed lagers and stuffy ales� that dominate the British beer market (as is the case with most craft brewers). So they decided that the best way to solve this problem was to brew their own beers.

Is that really a beer? The Black Tokyo* Horizon will challenge your perception of what actually is a beer.

During his keynote address at last year�s Asian Brewers Conference (part of Beerfest Asia) in Singapore, Watt said that the turning point came when they got an opportunity to meet Michael Jackson � not the late King of Pop, but the late writer who was considered Britain�s foremost expert on whisky and beer.

�We met him down in London and brought him some beers to try. We couldn�t believe it, �Michael Jackson is trying the beers we made at home!�,� said Watt. �He drank the beer, he shook his head, put the glass down and told us, �Boys, quit your jobs now, and start making beer!�

�We were both 24 at the time, and I was the captain of a fishing boat. I quit that, went to the bank, and got a loan to buy some brewing equipment,� he recalled. �We were so excited to be making our own beer, and our goal is to make other people as excited and passionate about good beer as we are. We wanted to show people there was an alternative to the mainstream beers that dominated the market in Britain.�

Watt and Martin founded BrewDog in April 2007, and it has since grown into Scotland�s largest independent brewery, producing about 120,000 bottles per month and boasting a hardcore following all over the world. This is mostly thanks to a combination of its rebellious punk rock philosophy (they proudly proclaim their beers to be �beer for punks� and �clever humans�), catchy beer names, crazy marketing gimmicks, and of course, their unique and craftily innovative beers.

As befitting their punk rock attitude, the brewery is not afraid to court controversy in their quest to push the boundaries of beer. They�ve brewed several beers that lay claim to being the strongest beers in the world, including Tactical Nuclear Penguin (32% ABV), Sink The Bismarck! (41% ABV); and the current record holder, The End Of The World (55% ABV), of which only 12 bottles were brewed, and bizarrely bottled in the bodies of small animals. Conversely in 2010, BrewDog produced Nanny State, a weak, 1.1%ABV in response to a controversy in Britain about their 18% ABV Tokyo* stout, just to show that there are just no limits to what a beer can be.

BrewDog beers are currently only available at Taps Beer Bar, which prides itself on having the most number of craft beers in Malaysia (it also carries an impressive range of craft beers from around the world, including those from Australia, Europe and America). Taps currently carries six different BrewDog beers, not including the aforementioned Black Tokyo* Horizon.

Trashy Blonde (4.1% ABV)

This is an easy drinking pale ale that has a nice fruity hoppy aroma, and a balance of flavours with just a hint of bitterness and subtle sweetness. Compared to the other BrewDog brews on the list, this is probably the least distinctive beer on the list.

There Is No Santa (4.7% ABV)

Christmas may be over, but you can relive the joy of the holiday through this limited-edition seasonal stout brewed with cocoa nibs and ginger stems. With a very distinct cinnamon nose and a Christmas-y gingerbread-like flavour, this is a great unique beer that we imagine goes pretty well with apple pie.

77 Lager (4.9% ABV)

Made with 100% malt and whole leaf hops, this is definitely a HUGE step up from commercial lagers, despite being quite light in texture and slightly sweet to boot. A good choice if you�re looking for something to drink all night.

5am Saint (5% ABV)

A great medium-bodied red ale with a fruity, floral aroma and a malty, slightly toast-like flavour. Of all the beers I tried from the BrewDog range, this was the closest one to a traditional British ale, in my humble opinion.

Alice Porter (6.2%ABV)

This rich brew is a union of one 300-year-old recipe and two cross-continental hop varieties. It is one of the best porters I�ve tried so far. It has a sweet, bubblegum-y nose that leads into a nice and smooth mouthfeel, with a subtle brown sugar-ish flavour.

Hardcore IPA (9.2%)

Don�t let the name fool you, this is a pretty easy drinking IPA (which stands for India Pale Ale) despite supposedly containing more hops and bitterness that any other beer brewed in Britain. It�s deceptively light and smooth for a 9.2% ABV beer, and is a wonderfully complex brew, with layer after layer of flavours dancing around your mouth, and a pleasant, sweet hoppy finish. Definitely one of my favourite BrewDog beers.

Taps Beer Bar is located at One Residency, 1 Jalan Nagasari, Off Jalan Raja Chulan, Kuala Lumpur. For inquiries, call 03-2110 1560 or visit www.tapsbeerbar.my. The outlet is closed today for Chinese New Year eve, but operations will resume tomorrow.

Adam Mathews and Jon Denman aren’t giving up their day jobs just yet. They’re not interested in high-pressure sales tactics, they say, or making fortunes. They just want to share their passion: making beer.

A few days ago, with the incorporation of Backyard Home Brewers and Education Center, Humble became home to a home-brewing supply shop, with all its untapped potential.

At Backyard Home Brewers and Education Center in Humble, a couch is waiting in the corner for anyone who wants to plop down for a chat or a taste of brew. The dress code is casual. Strangers are greeted like old buddies – or maybe Mathews and Denman just never met a stranger. The scent of hops, barley and malt lingers like an olfactory premonition. Buckets of more than 30 different kinds of grains are stacked to the ceiling. Flasks and packets and tubes of yeast are neatly organized in a cooler in the back of the store. Kegs loom on the top shelves.

“Jon and I’ve been home-brewing for quite a while,” said Mathews, a Medicare consultant employed by a major insurance company who lives in Kingwood. “Last summer we went camping and we brought some homebrew out there with us, and we decided to open a homebrew store. We plotted out all kinds of ideas.”

The two friends say they depleted their savings to follow their dream of providing area home-brewing enthusiasts with quality products, a place to share the successes of their endeavors, bringing newcomers into the fold, and delivering support through education.

“As a home-brewer, you are a crafter. The possibilities are endless,” said Denman, who does pre-press work for a design company and lives in Pearland. “Home-brewing is about taking pride in what you make, and sharing it with friends and family. The best thing to get people together is beer.”

Denman and Mathews wrinkle their noses at the typical grocery store fare of Budweiser, Miller and Coors. Their passion is to experiment and create unique and flavorful brews, and to get others educated in the intricacies of making beer. It’s a process, they say, that’s not nearly as complicated as it seems.

“Homebrew is very clean. You can make beer exactly the way you want it to taste,” Jon explained. “There are only four main ingredients you will use – water, malt, hops and yeast. You won’t use any chemicals. When you look at any major brewery, they use ingredients you cannot even pronounce, and they add those to your beer. We’re getting back to a clean product.”

From light lagers to the heavier ales, golden pilsners to darker ports, Backyard Home Brewers offers any and all ingredients needed to create a palette of colors, complexities and personalized flavors of beer imaginable. Customers are invited, encouraged even, to experiment with citrus and chocolate undertones, or a dab of vanilla and honey to add depth to their very personal brew, never to be duplicated.

SHARE AND SHARE ALIKE

Because Mathews and Denman only sell the ingredients to make beer, but don’t actually sell alcohol, the business is not required to have a liquor license, they say. There’s a tap in the corner of the store where local home-brewers can offer a sip of their product for sampling, but a small taste of those brews is free.

And honest feedback is a must.

“If someone from the homebrew community wants honest opinions – outside of family and friends - on how good his brew really is, he can leave a sample here on tap and people can check it out,” Mathews said. “People can then voice their opinion anonymously on the [dry-erase] board.”

The initial investment to become a home-brewer usually comes to less than $200. Backyard Home Brewers offers equipment kits that include all but the necessary 5-gallon stainless steel pot- at home already in most households - for $115. Add another $25 or so in grains and other ingredients to produce the first batch.

“Depending on the style of brewing and ingredients you want to use, that’s about $25 to make five gallons of beer, which equals about roughly 55 bottles, give or take,” Mathews said. “Or, it fills up a 5-gallon keg. You get more than eight six-packs for that price.”

In an effort to offset cost to customers and operate an environmentally friendly business, Denman and Mathews launched a program to reuse and recycle beer bottles. Zachary’s Café in Kingwood, for example, donates used bottles, which are then cleaned and sanitized and available for free to anyone who needs them.

“When one customer is done with the bottles, hopefully he’ll bring them back and then the next person can grab them. The bottles have to be certain types – they can’t be twist; they have to be pop-offs,” Mathews said. “We also have a used equipment board so people can sell what they no longer need. We’re not involved in the sale; we’re just offering an outlet for people to sell and trade.”

OUT CLUBBIN’

To further help beginners get started and seasoned home-brewers advance in their techniques, Backyard Home Brewers teamed up with the newly formed Rogue Brewers Coalition, an Humble-based social group that was spawned by the launch of the business.

“We wanted to have a club where people who like to make their own beer can meet up. We have monthly meetings and periodic workshops,” said Chad Twogood, of Humble, vice president of Rogue Brewers Coalition. “We sample each other’s beer and talk about how we made it. We do workshops to educate people on how to make good beer. Hopefully, in the future, we can take our club to competitions among home brewing clubs.”

Twogood said he’s been brewing his own beer for about three years as a hobby. Backyard Home Brewers helped him find a community of like-minded enthusiasts closer to home.

“I love this place. Before, I had to go to Spring or downtown and it would take me a day just to get ready to brew a batch of beer. Now I’m five minutes away,” he said. “They have everything that anyone from beginner to advanced home-brewer could want.”

Denman said that home-brewing beer is not exclusively a man’s hobby. In a recent class of about 20 participants, he said, four or five were women. The goal of the classes, he stressed, is not to sell products but to share a fun experience and to educate.

“Eighty percent of the people who attend a class don’t brew and probably don’t have any intention to, but it’s something interesting to do on a Saturday,” he said. “You learn something new.”

Mathews said Backyard Home Brewers enjoys support from the community, and participation – and business - has exceeded expectations. The duo has its hands full just keeping the shelves stocked.

“So far we’ve had no detractors at all. We’re not teaching alcoholism. We’re not taking people away from their families, going out getting drunk. What we teach saves you money and it’s a social thing. We don’t get wild,” he said. “The idea is to grow this company at its own pace – without pushing. Our mortgages are not tied to this place. We’re blown away by how fast this has taken off, but we’re not really here to make a living. It’s a passion.”

For more information about Backyard Home Brewers, go to www.backyardhomebrewers.com.

To learn more about upcoming events by the Rogue Brewers Coalition, go to www.roguebrewers.com.

ATLANTA — For manufacturing giant Shaw Industries, producing carpet in North Georgia costs the company millions of dollars in sales taxes that it wouldn’t have to pay in most parts of the nation.

That’s because Georgia is one of the few remaining states that require manufacturers to pay sales tax on electricity, natural gas and other energy they consume to produce goods — whether they’re building Gulfstream business jets in Savannah or brewing Miller beer in Albany.

Gov. Nathan Deal has made scrapping the energy tax on manufacturing plants one of his priorities for the 40-day session of the state Legislature that began Monday. Deal says the tax exemption would save companies about $157 million a year. But it’s still unclear how the state — and likely local governments — would make up for the lost revenues when budgets are still lean from years of recession.

In the heart of North Georgia’s “carpet capital,” Whitfield County Commission Chairman Mike Babb said he fears the state risks losing jobs by keeping the tax on the books. However, with more than half the county’s 53,500 jobs tied to manufacturing, local officials also rely on the taxes those businesses pay.

“Because there is so much manufacturing here and they use so much energy, that goes to the bottom line of our budgets,” Babb said. “But we also need to make sure that we keep manufacturing here. And right now we’re not competitive with our surrounding states.”

Industry advocates say the energy sales tax may not be a deal breaker, but it’s certainly watched by companies counting every nickel. Not only does the tax discourage new manufacturers from locating to Georgia, they say, but it also gives those already here little incentive to increase production — and boost jobs.

James Jarrett, group director of manufacturing for Dalton-based Shaw Industries, said energy is easily among the company’s top five costs and is something its executives consider when deciding whether to expand in Georgia or go to one of its neighbors — Tennessee, Alabama or South Carolina.

“In our case the benefit would be in the millions” of dollars, Jarrett said, if Georgia exempted Shaw from its energy sales tax.

Georgia homeowners and nonindustrial businesses pay the same sales tax on utilities.

Industry groups have lobbied Georgia lawmakers to exempt their factories from the energy sales tax since the mid-1990s, but had to settle for a temporary — and now expired — cap on their maximum tax bills passed in 2008 to offset a spike in energy prices.

The tax exemption may have a better chance this year. With Georgia showing signs of an economic recovery, Deal said he’s ready to expand some of the state’s tax incentives aimed at luring new business, including the energy sales tax.

“Georgians cannot compete for jobs that go elsewhere when employers make the decision that a neighboring state is a better place to do business,” the governor said in his State of the State speech last week.

House and Senate leaders said they’ve heard little dissent among the Republican lawmakers who control both chambers.

“It’s almost, as far as tax reform is concerned, the one issue that everyone agrees on,” said Senate Majority Leader Chip Rogers, R-Woodstock.

However, the specifics of Deal’s proposal to end the tax still are being hammered out. And a couple of key details remain unsettled.

First, the governor didn’t account for the revenue losses that would result from the tax cut in his proposed budget last week. By law Georgia has to have a balanced budget. Lawmakers would either have to raise taxes or make additional budget cuts to pay for the tax break.

Alan Essig, executive director of the nonpartisan Georgia Budget and Policy Institute, said perhaps the fairest way to pay for Deal’s proposal would be to repeal other business tax breaks that haven’t proven effective at helping recruit and retain industry.

“We’re still in recovery mode, and you can’t assume that normal revenue growth is going to pay for them,” Essig said. “There are lots and lots of other tax breaks and exemptions that are on the books.”

Another unknown is whether lawmakers will try to roll back the local portion of the sales tax — typically about 43 cents of every tax dollar manufacturers pay for energy. The total cost to local governments is estimated at about $108 million per year.

Deal spokesman Brian Robinson said the administration only anticipates ending the state’s portion of the sales tax. A decision on eliminating the local sales tax would be left to local governments. However, the Georgia Association of Manufacturers and other business groups want to scrap both the state and local shares.

“My opinion is we’re going to have a mixed reaction among our members on it,” said Clint Mueller, government affairs director of the Association County Commissioners of Georgia.

Even counties that most want state lawmakers to repeal the tax may not be so willing to see their local portion cut.

In Albany and surrounding Dougherty County, where Procter & Gamble employs about 1,300 people making paper towels and toilet paper and Miller Brewing Co. has about 650 workers making beer, local officials say eliminating the state energy tax is critical to protecting local jobs. The Southwest Georgia county has lost three of its major manufacturers in the last five years.

However, asked in an interview if local officials would consent to giving up their 3 percent share of the sales tax, Commission Chairman Bodine Sinyard said: “Quite frankly that has not come up at all.”

He said many of the major incentives Georgia now uses to lure industry are property tax breaks — which are funded at the local level.

“The local counties and cities are doing their fair share,” Sinyard said.