Brewers conference names winners, looks at year ahead

The annual Craft Brewers Conference, held in San Diego last week, celebrated the success of craft beers as well as the 2008 World Beer Cup winners, even as industry experts indicated 2008 will prove a tougher year than last year.

Paul Gatza, director of the Brewers Association, Boulder, Colo., told attendees craft brewers grew volume 12 percent last year, but they will face a hops shortage as well as increased costs for hops, barley and fuel in 2008. In addition, large brewers are adopting craft beer terminology, potentially blurring the lines between large and small.

Despite the challenges, the industry has reason for optimism, he said, including four decades of "trading up" in the beer industry. An economic slowdown could convince consumers to switch from high-end spirits and wine to beer, even higher priced beer. In addition, demographic attitude trends show younger legal-age drinkers are more anti-corporate than their Gen X elders, making them more attracted to small brewers, and environmental awareness has encouraged consumers to think and buy local.

Overall, craft brewers had a strong showing in 2007, with every category, from brewpubs to regional operations, enjoying more openings than closings. In total 94 craft brewers opened their doors in 2007 and 51 closed.

During the conference, the association presented a number of awards, including the Brewers Association Recognition Award, which went to Michael Lewis, professor emeritus of brewing science at the University of California, Davis. The Russell Schehrer Award for Innovation in Brewing was given to Vinnie Cilurzo of Russian River Brewing Co., and the F.X. Matt Defense of the Industry award was presented to John Carlson, executive director of the Colorado Brewers Guild.

The event also included the 2008 World Beer Cup, in which 644 breweries from 58 countries put 2,864 beers to the test. Among the winners: Coors’ Blue Moon Brewing Co. was designated the 2008 Large Brewing Company Champion Brewery; Privatbrauerei Hoepfner GmbH, the Mid-Size Brewing Company Champion; Port Brewing Co. and The Lost Abbey, was named the Small Brewery Champion; Pelican Pub & Brewery, the Large Brewpup Champion Brewery; and Bend Brewing Co. the Small Brewpub Champion. See the full list of World Beer Cup winners or read more about the conference.

Coca-Cola Co. first quarter sales up

The Coca-Cola Co. reported its first-quarter 2008 results this week. “We have begun 2008 successfully, with another solid quarter consistent with our overriding objective of creating long-term sustainable growth,” said Chairman and Chief Executive Officer Neville Isdell. “Our system’s success in executing our strategies – from marketing to beverage innovation to effective execution at the point of sale – continues to drive our growth.”

Coca-Cola’s worldwide unit case volume was up 6 percent and international unit case volume was up 7 percent. The sparkling and still beverage categories both were up from the previous year by 3 percent and 17 percent, respectively. International business led the way for much of Coca-Cola’s quarterly growth, the company says.

Earnings per share were $0.64, which is an increase of 19 percent from the prior year. Earnings per share for the quarter included a net charge of $0.03 per share that was related to restructuring charges and asset write-downs. Read more about the results.

Cadbury Schweppes demerger on track

With revenue for its Americas Beverages group up by 3 percent, Cadbury Schweppes took the separation of its confectionery and Americas Beverages businesses to shareholders for approval last week. Price increases and strong performances by Americas Beverages’ core brands, Snapple, Mott’s and Clamato, contributed to the company’s growth.

“While the economic outlook in 2008 is challenging, we are encouraged by the performances of our confectionery and Americas Beverage businesses and the continued progress being made on their separate strategic agendas,” said Todd Stitzer, chief executive officer of Cadbury Schweppes.

Cadbury Schweppes announced the results at its 2008 Annual General Meeting. A Court Meeting and General Meeting were held as well. The last day of the dealings in Cadbury Schweppes Ordinary shares and the conditions on the demerger will be May 1. Read more about the demerger.

Pepsi debuts new recycling campaign

Pepsi introduced the “Have we met before?” campaign designed to communicate the benefits of aluminum can recycling. The recycling facts and messages for the campaign were provided by the National Recycling Coalition, and will be featured on 500 million Pepsi cans and 250 million Diet Pepsi cans nationwide each month.

“Recycling is a small step everyone can take that will make a real difference for our planet,” said Kate Krebs, executive director of the National Recycling Coalition. “A campaign like the one Pepsi is running will undoubtedly have a positive impact by reminding Americans to recycle and raising awareness of what the effect recycling has on this great big beautiful planet we live on.”

A total of 7 billion cans will carry the message by the end of the year, and the ad value for the space on the cans is worth between $35 million and $40 million. The recycling messages featured on the Pepsi and Diet Pepsi cans this year include: “Recycling could save 95 percent of the energy used to make this can”; “On average, aluminum cans produced in the United States contain 40-50 percent recycled content”; and “The average person has the opportunity to recycle 25,000 cans in a lifetime.” Read more about the campaign.

Mountain Valley Spring Co. designates five new distributors

Mountain Valley Spring Co., Hot Springs, Ark., appointed five new distributors to carry its bottled water brand.

The five new distributors include Turner Beverage Co. Inc, a family-owned distributor servicing the Huntsville and North Alabama market; Birmingham Budweiser Distributing Co., Birmingham, Ala., which operates a warehouse in Gadsden, Ala. Capitol Beverage Sales L.P. is a family-owned distributor serving the Minneapolis-St. Paul/Bloomington, Minn., market. Valley Budweiser Inc., Decatur, Ala., and Shoals Distributing Inc., Muscle Shoals, Ala., will also distribute Mountain Valley Spring water. Read more on the company.

Dog On It!

White Hat Brands LLC, Atlanta, released three new Dog On It! flavors and changed the packaging for all five all-natural, fruit beverages. Dog On It! Kiwi Watermelon, Strawberry Lemonade and Tropical Tangerine join Berry Punch and Orange Splash are fortified juice beverages that include nutrients such as calcium and vitamins A, B, C, D and E. The refreshed package design complements the new fruit flavors and the addition of the Juvenile Diabetes Research Foundation International logo, marking its partnership with White Hat Brands. See more about the products.

Aquafina Alive

PepsiCo, Purchase, N.Y., relaunched its Aquafina Alive line and introduced four reformulated versions: Satisfy, Protect, Energize and Hydrate. Satisfy (Peach Mango flavored) offers the benefit of fiber. Protect (Berry Pomegranate flavored) provides 10 percent of the daily recommended value of vitamins E and C. Energize (Orange Lime flavored) contains 10 percent of the daily recommended value of vitamin B and is enhanced with as much caffeine as in an average cup of coffee. Hydrate (Lemon flavored) offers electrolytes, sodium and potassium. Protect, Energize and Hydrate are calorie free. Read more about the line.

Skyy Infusions

Skyy Spirits LLC, San Francisco, a subsidiary of Gruppo Campari, released Skyy Infusions, an all-natural fruit infused vodka line. Infusions launched in five flavors: Citrus, Cherry, Passion Fruit, Raspberry and Grape. The line will be available in 750-ml. and 1-liter sizes and for the Citrus flavor only in a 1.75-liter bottle. Skyy Infusions were unveiled in Skyy Vodka’s new bottle shape. See more about Skyy Infusions.