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Well, we are nearing the end of the semester but there is still a lot of news in the brewing industry that I want to update you on.
First off, yesterday was an interesting and important day for those of us who follow the beer industry. April 7th, 1933 was a very big day in the history of booze as it marked the anniversary of the passing of the Cullen-Harrison Act which became law in the United States. This act made it legal to sell and manufacture alcohol for the first time in 14 years as it was the beginning to the end of prohibition and is a day to remember as the end of the dry nightmare.
Now, on to the news of the industry that has impacted the market. Danish brewery Carlsberg has decided to make some big changes in hopes of increasing sales. In a story titled Branding Makeover for Carlsberg from The Wall Street Journal's website, they discussed how the executives at Carlsberg have decided to revamp the branding, ingredients and distribution of their Carlsberg lager, including a new range of packaging and a new slogan. In detail, the company has changed the design of their cans, changed their slogan, and have reformulated the lager using a new barley developed to keep beer fresher for longer. The company has claimed that consumers will be unable to taste the difference between the old version and the
new version, which is already in production and is being rolled out across all Carlsberg markets.The new barley the company is intending on using is called Null-Lox barley and has been developed by the company in ten different versions to suit a range of climates, which will mean the beer could be stored in less than optimal conditions. Null-Lox also has had great disease resistance and needed fewer pesticides. The company is intending on harvesting around 200,000 tons of the barley this year. I certainly feel that this is going to be a very smart move for the company even though they are taking on considerable risks in modifying the world's seventh biggest brand.
new version, which is already in production and is being rolled out across all Carlsberg markets.The new barley the company is intending on using is called Null-Lox barley and has been developed by the company in ten different versions to suit a range of climates, which will mean the beer could be stored in less than optimal conditions. Null-Lox also has had great disease resistance and needed fewer pesticides. The company is intending on harvesting around 200,000 tons of the barley this year. I certainly feel that this is going to be a very smart move for the company even though they are taking on considerable risks in modifying the world's seventh biggest brand.In other news, Kingway Brewery Holding Ltd., maker of Kingway Beer, said Monday that its
state-owned parent company has exercised a right to buy a 21.37% stake in the brewer held by Heineken-APB (China) Pte., a Singaporean-Dutch joint venture. This offer has allowed GDH Ltd. the ability to thwart a plan by conglomerate China Resources Enterprises Ltd. to acquire the holding. GDH, which currently owns 52.5% of Kingway Brewery, will acquire the additional shares on the same terms that Heineken proposed earlier to sell to China Resources, which makes China's top-selling beer, Snow. This deal was valued at 1.08 billion dollars and was a big move by GDH in using their pre-emption right to acquire these shares and keeps China Resources from being able to buy a major stock in the Hong-Kong listed firm. This will also allow GDH's state in Kingway Brewery to raise to 73.82% after this deal.In another story, Anheuser-Busch has made headlines recently as they are in the midst of a gender discrimination suit filed by the brewer's former highest-ranking female executive. This case has recently been sent to the Missouri Court of Appeals on Tuesday. Francine Katz, Anheuser-Busch's former vice president of communications and consumer affairs, alleges that she was given a smaller salary and bonuses than male executives. This case was orig
inally filed in the St. Louis City Circuit Court in 2009 and is still making big headlines as it comes closer to conclusion. Anheuser-Busch wanted to try to settle the situation within the company's internal arbitration process but Katz has demanded her day in court. According to Katz, she raised numerous concerns about the pay disparity between 2002 and 2007 to Anheuser-Busch's CEO Patrick Stokes, former Chairman August Busch III, and former CEO August Busch IV. Apparently, little was done to remedy the situation until Katz finally decided that she was going to stand up for herself.
inally filed in the St. Louis City Circuit Court in 2009 and is still making big headlines as it comes closer to conclusion. Anheuser-Busch wanted to try to settle the situation within the company's internal arbitration process but Katz has demanded her day in court. According to Katz, she raised numerous concerns about the pay disparity between 2002 and 2007 to Anheuser-Busch's CEO Patrick Stokes, former Chairman August Busch III, and former CEO August Busch IV. Apparently, little was done to remedy the situation until Katz finally decided that she was going to stand up for herself.
The last story this week is also about Anheuser-Busch, but certainly on a lot more positive note. A-B said Monday that it's glass bottle plant, Longhorn Glass Inc., is back in production after a $40 million upgrade and expansion. This glass plant supplies bottles to Anheuser-Busch's Houston brewery, including those for Budweiser and Bud Light. The factory now has one of the fastest glass-forming machines in the world. This overhaul allows Longhorn to increase production to 700 bottles per minute, which is up from their previous 600 per minute on one of its lines. Let's hope their sales will continue to rise through the nation's current tough times as the company has a great deal of funds wrapped up in the expansions and improvements they have made here. 
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