Beverage Bulletin November-December 2012

California Beverage Retailers Association

Beverage Bulletin

P.O. Box 56686

Sherman Oaks, CA 91413

(818) 788-8120

Ron Ziff, Editor

www.cbraliquor.org

November-December 2012

 

A big double edition for November & December! This month's stories include:

A quotation from Lincoln and a quotation from David Brooks

Getting High With Scotch
Drew Barrymore Joins the Wine Industry
Brands Try to Get Out of Movie
Chateau Mouton Rothschild Loses Trademark Battle
Voters Turn Down Taxes & Regulations on the Industry
Hurricane Sandy to Cause Shortages
Coffee Prices Starting to Drop
Wine Shortage on the Horizon
Shortage of Vines in California

The Wine Institute Offers Two New Resources
Dry Ros
é Imports are Way Up
What Are They Drinking in China?
Energy Drink Implicated in 13 Deaths
U.S. is #1 in World Consumption of Tequila, #2 in Vodka & Gin
Ships Captains Needed IPA
Beer Helped Build the Pyramids
Cocktails Make a Comeback
Edible Packaging May Replace “Paper or Plastic”
No More Hangovers!
Happy Anniversary to Bacardi and to The Food Network
London Olympic Games Lead to Big Losses
Black Friday in a Changing Economy

Health and Diet -Vegan Beverages, Beer is Lower in Calories, Resveratrol in Red Wine Helps Fight Cancer, Sugary Soft Drinks May Cause Strokes in Women
Two Winter Drink Recipes
and as always Tasting Notes and the Industry Calendar

 

 

 

With Steven Spielberg's movie “Lincoln” being released it is timely to offer a quotation from our 16th President. When a committee came to Lincoln to complain about General Grant's drinking, he replied “Tell me what brand of whiskey Grant drinks. I would like to send a barrel of it to my other generals.”

 

And a current quotation from David Brooks, Columnist for the New York Times.

Things would be better if there were more people in Washington drinking Bourbon together.” ...The fact is -they used to. In the 19th Century the U.S. Senate maintained a bar for members in the Capitol Building.

 

Getting High With Scotch

An SAS Jet was stranded at Alicante, Spain with ice on its wings. The ground crew at the Costa del Sol airport didn't have de-icing equipment or the anti-freeze type liquid, propylene glycol, used to melt the ice. The resourceful pilot had to get the plane in the air en route to Stavanger, Norway. So he did the only thing he could. He raided the plane's bar for 6 liters of Scotch. Then poured 3 liters on each wing and got underway. The plane took off 90 minutes late with the captain announcing “I've poured whiskey on the wings, now there's only wine left for the passengers.” SAS Communications Manager Knut Johansen complimented the captain on his ingenuity.

 

 

Drew Barrymore Joins the Wine Industry

Drew Barrymore, who has played in 61 films, has joined the wine industry with a winery she has purchased in Triveneto, Italy. The winery makes a Pinot Grigio with grapes purchased in Trentino-Alto Adige, Friuli-Venezis Giula, and Veneto. She says the wine is crisp, fresh, subtle, refreshing, and complex. The Barrymore Wines label includes her grandfather's crest and art work by Shepard Fairey. She says her favorite part of the venture is getting “a private stash” of wine each year.

 

Brands Try to Get Out of Movie

Brands usually pay a lot for product placement in a movie. Recently we reported Heinekens paying $145 million for placement in a James Bond movie. Now brands are trying to get out of a film. In the movie “Flight” Denzel Washington's character plays an alcoholic pilot who favors Budweiser and Stolichnaya. Budweiser has asked Paramount to remove or obscure its logo from the film. Rob McCarthy, VP of AB/Inbev stated “We would never condone the misuse of our products, and have a long history of promoting responsible drinking and preventing drunk driving.” Wm. Grant & Sons which distributes Stolichnaya in the U.S. says it didn't license the brand to be used and would not have given permission if they were asked. Legal experts say there is nothing the companies can do legally to get the drinks removed from the film. Daniel Nazer at Stanford Law School said “That's not a right the trademark law gives them.” Absolut and Smirnoff are also in the film but have not commented on their exposure.

 

Taiso Osawa

Chateau Mouton Rothschild Loses Trademark Battle

Chateau Mouton Rothschild lost a trademark battle with the small New Zealand Winery, Floating Mouton. The French winery also bottles Mouton Cadet and objected to Floating Mouton as being too similar to its names. Japanese owner Taiso Osawa applied for trademark status in New Zealand and Japan. He chose the name Floating Mouton because Mouton means sheep in French. The Hawkes Bay winery was founded on what was a sheep ranch and has a continuous stream of white clouds floating by overhead. Thus the name. It produces a little over 20,000 cases a year.

 

Voters Turn Down Taxes & Regulations on the Industry

California voters turned down Proposition 37 which would have required foods and beverages to show on the label if they contained GMO's. The legislation could have caused manufacturers and farmers to make massive changes in recipes, formulas, and plantings. Also would have caused re-structuring of the industry and increased prices for consumers. Although they lost the election; proponents view the 2 million plus votes they got as a victory. They vow to press on with the fight and plan campaigns in Washington and Connecticut.

 

Voters also turned down a municipal “Fat Tax” on soda pop in Richmond and El Monte.

Hurricane Sandy to Cause Shortages

Food Shortages caused by Hurricane Sandy will be part of what we will be hearing in the coming months. All year we have heard about the Midwest drought. Now it's Sandy. Cranberries mainly come from Massachusetts and New Jersey and will be short this holiday season. The oyster beds along the New England coast will take about a year to recover. Other commodities from the East Coast will be short as the year goes on. In the days following the storm New York City found drinking water unavailable. Stores had empty shelves where bottled water had been just a few days earlier. Outside the U.S., Haiti's entire agriculture was devastated. Famine there will follow.

 

Coffee Prices Starting to Drop

Arabica Coffee prices have started to fall as the crop from Guatemala and Costa Rica start to hit the market. Brazilian growers have been holding back their crop to bolster prices. Now they may be forced to sell before the bottom falls out. Prices peaked at over $3 a pound in 2011. They are now about $1.53 per pound and predicted to drop to $1.40 or less by December. Warehouse holdings of 2.4 million 60 kilo bags of certified quality beans are currently at the highest levels since April 2010.

 

Wine Shortage on the Horizon

Wine production will be down worldwide for 2012. Look for some shortages and higher prices. Abnormal weather is the cause of much of the problem. Total production will be at the lowest level since 1975. French production will be down by at least 20%. Italy's grape crop will only be down by 4%. Argentina will produce 24% less. Only the U.S. will have a 7% increase this year. Bulk wines are expected to be in short supply. In Portugal wine grapes are short and the cost of brandy used to arrest fermentation has doubled. The combination is sure to cause the price of Port to spike.

 

Shortage of Vines in California

Grape plantings in California virtually stopped when the wine bubble burst and recession came in 2007. Now after a 5 year hiatus, vintners are rushing to plant and to replant exhausted vineyards. The problem is that nurseries have eased up production during the period and don't have stock ready for planting. As growers began placing orders during the summer and into the fall it suddenly turned into a frenzy to get the last available vines. Now most nurseries are sold out. Short are Cabernet Sauvignon, Pinot Noir, Petit Verdot, Malbec, Petite Sirah, Chardonnay, Sauvignon Blanc, and Pinot Grigio. The result is that we will be facing a shortage of wine 2 to 3 years out. Prices will definitely go up and we might even see a “5 Buck Chuck.”

 

The Wine Institute Offers Two New Resources

The Wine Institute is offering a new video California Wines Food Tour.

And an online resource discovercaliforniawines.com that promotes recipes that use and pair with wine.

Dry Rosé Imports are Way Up

U.S. sales of imported dry rosé wine increased 22.8% in dollar value and 26.4% in volume during the first half of 2012. “Imported rosé wine sales continue to post impressive double-digit increases, this year again greater than 20%, extending for yet another year a long string of dynamic growth,” said Danny Brager, vice president of Nielsen’s beverage alcohol team.

 

What Are They Drinking in China?

According to Chinese wine writer, “Simon” Wei Hsu, Chinese consumers drink an average of 1.15 liters per year when they are given the right to drink. He expects the amount to double in the near future. China will become the fifth largest wine consuming country by 2014. Imports are expected to be worth $3.19 billion in U.S. Dollars. The main drinkers of wine are in the urban centers such as Guangzhou, Shanghai, and Beijing. 50% of Chinese consumers are between 25 and 44 years old. The government has run promotional ads on the health attributes of moderate drinking in order to increase sales. Chinese still wine sales are 85% red and 15% white. Cabernet sauvignon is the most popular varietal. In China the color red is a symbol of happiness, love, and good luck.

 

 

Energy Drink Implicated in 13 Deaths

Living Essential's beverage, 5-Hour Energy Drink has been linked to 13 deaths. This is the second energy drink to come under investigation by the FDA. Last month we reported on Monster. Each time there is a medical problem with a dietary supplement, the company has to file an “Adverse Events Report” with the FDA. Since 2009 there have been 90 such reports filed on caffeinated energy drinks. About one third were life threatening. When the drinks are first marketed they have be filed with the FDA and show how much caffeine they contain. A possible loophole is that if the drink contains guarana (a fruit) or Yerba Mate (similar to tea leaves) they may not have to show these caffeine sources as part of the total caffeine. Senator Dick Durbin (D-IL) has written 7 letters to the FDA complaining that energy drinks do not list caffeine content on their labels and they are sold to minors.

 

U.S. is #1 in World Consumption of Tequila, #2 in Vodka & Gin

The U.S. consumes 13% of the world's Vodka annually. Russia consumes more at 45%. The U.S. consumes 21% of the world's Gin. The Philippines beats us with 36%. The U.S. is number one in Tequila consumption at 50%. Mexico drinks only 33% of the world's Tequila.

 

Ships Captains Needed IPA

India Pale Ale (IPA) was first made in the 18th Century. British ships headed for India carried beer that had enough hops and alcohol to hold up during the six month trip. The high alcohol content kept bacteria from growing in the barrels and spoiling the flavor of the beer. The style of beer caught on at home and soon was being brewed all over England.

 

 

Beer Helped Build the Pyramids

When the pyramids were built in ancient Egypt, the Pharaohs had a small city built alongside the construction. The city provided food and shelter for the workers. The food and beverage for the workers were two products that are related; Bread and Beer. Both are made with grain and yeast. They were flavored with Za Atar, an arabic spice mixture. Each worker was given 4 to 5 liters of beer a day. It provided nutrition, refreshment, and reward for the day's work. Beer Archaeologist Patrick McGovern of the University of Pennsylvania tells us “The pyramids couldn't have been built without beer.”

 

Cocktails Make a Comeback

Zagat reports that cocktails are making a comeback. Restaurant patrons have a cocktail an average of 3.1 times a week. By sex it's 3.6 times for men; 2.7 times for women. The average is 1.8 cocktails per outing.

Edible Packaging May Replace “Paper or Plastic”

As cities like Los Angeles try to outlaw plastic bags another solution is on the horizon. Harvard professor David Edwards and designer Francois Azambourg have invented edible packaging. Called Wikicells, it can encase food or liquid like the skin of a grape. The new packaging is claimed to be able to hold soup, ice cream, yogurt, wine, and other foods. It is made from food particles held together by calcium or magnesium ions and alginate.

No More Hangovers!

Dr. Leonard Grossman has developed a patch called Bytox which is supposed to prevent hangovers. It works much like a nicotine patch by slowly releasing vitamins and acids which the body loses during drinking and contribute to headaches, fatigue, and nausea. The patch releases acai berry extract and vitamins A, B, D, E, and K continuously into the blood stream. The patch is supposed to be worn from 45 minutes before drinking and for 24 hours afterward. According to Dr. Grossman “It won't however prevent you from getting drunk and definitely won't prevent embarrassing or regrettable behavior.”

Happy Anniversary to Bacardi and to The Food Network

2012 marks the 150th anniversary of the founding of Bacardi in 1862. Bacardi was founded in 1862 in Santiago de Cuba, when Don Facundo Bacardi Masso revolutionized the spirits industry by creating the world's first light-bodied rum.

Twenty years ago The Food Network was founded by Reese Schonfeld. Today it is owned by Scripps Network. At the time, Trygve Myrhen, President of The Providence Journal, traveled the country convincing skeptical cable TV operators to broadcast this new concept. They didn't believe people would watch programs telling them how to cook. He also had problems getting chefs like Julia Child to do programs for the new network. Today our customers watch 24/7 to see what to cook, what to eat, and how to do it.

London Olympic Games Lead to Big Losses

The wrap-up on the 2012 Olympic and Paralympic Games indicated that London pubs and restaurants lost £55 million. West End restaurants and the wholesalers that supply them were the biggest losers. About 680,000 visitors came to London to watch, participate, or work at the games.

 

Black Friday in a Changing Economy

TV news carried pictures of Black Friday crowds at malls and Walmart. But, they didn't give the shocking hidden statistic. For the first time more than half the consumers said they had shopped on the internet. Online sales that day totaled over $1 billion according to data analysis by comScore Inc.

Health and Diet

Vegan Beverages

Are Beer and Distilled Spirits Vegan? Most are. Until a few years ago the industry used animal byproducts to filter them. Over the past few years filtration has shifted to using diatomaceous earth. Cordials may not be Vegan because some are colored with animal products. Some Wines use egg whites for fining and are not suited to a Vegan diet.

Beer is Lower in Calories

Beer is a healthy drink according to The Beer Education Trust. A half pint of Pale Ale is 85 calories. A half pint of Orange Juice is 128 calories. Half the quantity of white wine is 131 calories and red is 119 calories. “Beer is 95% water, contains very few free sugars to convert into fat, which gives it a low glycaemic load, and has a relatively low level of alcohol per volume. This all means that it is less fattening than spirits or wine.” said Dr. Jack Edmonds, in a report released by the Beer Eduction Trust.

Resveratrol in Red Wine Helps Fight Cancer

Resveratrol in Red Wine has another use. A U.S. study published in the Journal of Andrology and Cancer Science shows that it may help fight prostate cancer by making the cells more susceptible to radiotherapy. Professor Michael Nicholl said “Other studies have noted that resveratrol made tumor cells more susceptible to chemotherapy, and we wanted to see if it had the same effect for radiation therapy. We found that when exposed to the compound, the tumor cells were more susceptible to radiation treatment.” It was found that resveratrol increased two proteins in the cells. After the treatment, 97% of the cancer cells died.

Sugary Soft Drinks May Cause Strokes in Women

A study by Dr. Hiroyasu Iso of Osaka University, Japan showed that women who have sugary drinks daily are 83% more likely to have strokes. High soft drink intake is linked to an increase in weight, blood sugar, fat, and hypertension, which is in turn linked to an increased risk of stroke. Of those women that rarely had a soft drink, 1.7% had strokes. Among women who drank soft drinks daily, 3% had strokes. The study tracked 40,000 people from 1990 to 2008. There was no link found in the men who participated in the study. Diet drinks were not included.

 

 

Two Winter Drink Recipes

Espresso Martini

Ingredients:
2 ounces Vodka
1 ounce Coffee Liqueur
2 ounces of espresso
Directions:
1) Put all ingredients in a cocktail shaker.
2) Shake with rhythm until the outside of the shaker is cold.
3) Strain into a martini glass.
4) Garnish with 3 coffee beans.

Hot Apple Martini

Ingredients:
1 part vanilla vodka
3 parts apple juice
1 cinnamon stick
Directions:
Heat the apple juice with the cinnamon stick until steaming hot. Pour apple juice and vodka into a mug and serve.

Tasting Notes

The annual Pinot Days tasting took place at the Shrine Auditorium in downtown Los Angeles. There were many good, fine, and even great wines. Based on quality alone, it would be difficult to choose between the hundreds of wines offered. Adding the additional criteria of value, our choice became much easier. We found four choices that we consider “Best Buys.”

From Inception Wines the 2010 Central Coast Pinot Noir was full bodied and had good color and good nose. At $19 it is a good buy. Contact Jonathan Hirsh jon@inceptionwines.com or George Pitsironis george@inceptionwines.com (310) 801-3372.

Cameron Hughes showed several negociant wines. Our favorites were Russian River Lot #265 at $18. And a French Sauvigny les Beaune Lot #294 at $25. info@chwine.com or (415) 495-1350.

Undoubtedly the “Best Buy” of the tasting was 2010 Fleur Carneros Pinot Noir by Francis and Kathy Mahoney. It had a robust character, subtle undertones, good deep color, and good nose. A perfect compliment to red meats or just an evening in front of the fire. $15 to $18. Contact Stacy Manley stacy@mahoneyvineyards.com (707) 696-8725.

The second big tasting of November was Stars of Cabernet. There were many fine wines to be savored. The prices were justifiably high to stratospheric. Among these wines we found a line of “Best Buys.” Waterstone Winery in Napa Valley produces what they call “luxury wines at affordable prices.” They are right on! We tasted 2009 Napa Merlot that was mellow with deep color, good body, and good nose $18. 2009 Cabernet Sauvignon that had everything you would expect in a Napa Cab $24. Fantastic! And a 2011 Napa Chardonnay that was bright, clean, and buttery at $18. A fine offering of excellent wines at affordable prices by partners Philip Zorn and Brent Shortridge. Contact Stacy Manley stacy@anders-lane.com or (707) 696-8725.

Industry Calendar

12/9 Hanukkah (starts sundown 12/8)
12/25 Christmas
12/31 New Years Eve

2013

1/1 New Years Day

1/20-22 Winter Fancifood Show- SFO

1/19-20 Asian/American Expo – Pomona
1/23 Stars of Santa Barbara – Beverly Hills

New Legislation for 2013

Our industry has more laws controlling it than most industries. The State Legislature and the ABC give us license privileges and can take them away. 2013 has several new laws that you must follow. New alcoholic beverage laws will be introduced that will be effective in 2014. Many critical issues are pending. Is your business safe? Members are encouraged to look through the Legislative Bulletin. If there is a new law that is a problem for your business, call the association office now. The CBRA is your voice in Sacramento. If you are not a member, join today. The CBRA is your only voice when it comes to new beverage laws.

Brands and Comments

The CBRA Newsletter has not accepted any payment from any of the brands mentioned in this edition. The editor, Ron Ziff, welcomes comments at ron@cbraliquor.org

 

CBRA Membership Remains Open

Now, more than ever, access to your industry is important. The CBRA is California's only statewide association of licensed retailers, and our membership continues to be open for the first time in 20 years.

At CBRA we deal with licenses and regulations that affect the beverage business on a daily basis. That's why CBRA offers practical solutions, unique products, services, information, and timely advice for both large and small beverage businesses. With reasonable fees, superior service, and associates that are easy to reach, CBRA helps you to run your business better and easier. One of the most valuable services we offer is that call to the ABC to ask your question. We can ask that question and keep you anonymous. That's something you just can't do yourself.

Join or renew your valuable membership today. You can't afford to delay.

California Beverage Retailers Association – California's Only Association of Licensees. We're #1!

 

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