Cincinnati Beer News (3 weeks old)

Friday, September 19, 2003 Local brews still make splash with consumers

Barrel House to have German varieties available

By Mike Boyer The Cincinnati Enquirer

People who cry in their beer, bemoaning the decline in Cincinnati's once vibrant brewing heritage, don't get much sympathy from Mike Cromer.

"There's still a lot of great beer made in Cincinnati,'' the co-owner of Barrel House Brewing Co. in Over-the-Rhine says.

This weekend, the 500,000 or so who will pack downtown Cincinnati for the 28th annual Oktoberfest Zinzinnati, the biggest thing this side of Munich, can sample Barrel House's seasonal Oktoberfest lager, RedLegg Ale and Hefeweizen. The beers will be available along with Budweiser, Miller Lite, Lowenbrau and Warsteiner, among others.

About half of the nine beer brands featured at this year's festival have some local tie.

Cromer, a former financial manager at GE Aircraft Engines who turned his "love of good German lagers and English ales'' into Barrel House eight years ago, said events like Oktoberfest "are an opportunity to show that Cincinnati is still a great beer town.''

Barrel House beer is available at about 100 establishments in Greater Cincinnati, including Great American Ball Park and Paul Brown Stadium.

And while it will be too late for this weekend's festivities, one of the city's best-known brands, Hudepohl-Schoenling, might soon make a comeback.

Mark Dottore, court-appointed receiver for Snyder International Brewing Group, which acquired Hudepohl-Schoenling brands in 1999, said Thursday that new financing permitting regular production of Little Kings Cream Ale, Hudy Delight, Burger and Christian Moerlein should be completed soon.

Since Snyder was forced by creditors into receivership in Cuyahoga County Common Pleas Court in January, the availability of Hudepohl-Schoenling products - now brewed mainly at Snyder's 5-year-old Frederick, Md., brewery - has been sporadic.

"People in Cincinnati need to know, they'll start seeing Hudepohl-Schoenling products on store shelves in 30 to 45 days,'' said Kevin Kelley, who is managing the beer business for Dottore Cos.

The brands, marketed in 32 states, are the centerpiece of the recovery plan for the Snyder company, which also produces Cleveland's Crooked River Beer and other regional brews.

Kelley said Cincinnati is unique in that Hudepohl-Schoenling products continued to be brewed locally until two years ago, long after most other regional breweries hit the bottom of the barrel.

Beer industry experts say quality has replaced quantity among consumer preferences.

"People are drinking less, but they're drinking better,'' said Michelle Sullivan, spokesman for Boston Beer Co., which brews its premium Samuel Adams, one of Oktoberfest's featured beers, at the former Hudepohl-Schoenling brewery on Central Parkway in the West End.

Boston Beer employs about 100 at its brewery here and produces about 45 percent of the 17 million cases that the company sells annually.

Boston Beer acquired the brewery in 1996 and brewed Hudepohl-Schoenling products under contract until 2001.

Last year, U.S. per capita beer consumption was 21.8 gallons, according to Beverage Marketing Corp., a New York research and consulting firm. That was down from 22 gallons a person five years earlier.

While the firm doesn't have specific data for Cincinnati, Gary Hemphill, Beverage Marketing's senior vice president, said per capita beer consumption in Ohio last year was 23 gallons.

In 1894, Cincinnati's beer consumption was 50 gallons a person, according to Cincinnati Breweries, a compendium on the city's early brewing history written by Robert J. Wimberg.

While total U.S. beer consumption has been relatively flat for years, Hemphill said two of the fastest growing categories are light beers and imports.

Reflecting American's increased calorie counting, light beer sales increased 4.8 percent last year while imports increased 6 percent.

Import growth, Hemphill said, is being driven by consumers' interest in new tastes and "what they perceive as higher quality.''

Miller Lite, brewed at Miller Brewing Co.'s massive Trenton plant in Butler County, about 30 miles north of Cincinnati, and German-brewed Warsteiner are two of Oktoberfest's featured products.

The Trenton brewery, one of Miller's largest, produces about 9 million barrels of beer annually. There are 31 gallons in a barrel of beer.

Although Warsteiner has been imported to the United States since the early

1980s, the brand has more than doubled its U.S. market share in the last five years, said Gregory Hardman, president of Warsteiner Importers Agency, the beer's U.S. marketing arm based in West Chester.

Last year, Warsteiner, which is marking its 250th anniversary, sold 1.8 million cases in the United States, up from 1.3 million in 1999.

While there's no question the beer will flow again this weekend at Oktoberfest, one of the festival's best-kept secrets is how much beer is consumed.

A spokesman for the Greater Cincinnati Chamber of Commerce said festival organizers typically don't discuss beer sales.

Cromer said he expects to sell about 10,000 16-ounce servings this weekend. Warsteiner's Hardman said sales usually depend somewhat on the weather. The forecast is for sunny skies Saturday with highs in the mid-70s and mostly sunny Sunday with highs around 80.

And that should be good for selling beer.

E-mail snipped-for-privacy@enquirer.com

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Garrison Hilliard
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And here's a 16-month old story...

Hudy fans stew while we wait for more brew Dan Monk Try not to panic, but the Tri-State's supply of Burger beer has reached dangerously low levels.

Cincinnati's Hudepohl-Schoenling Brewing Co. is having trouble getting a Wisconsin brewery to schedule production time for Hudy's canned-beer products.

As a result, Hudepohl has a 48,000-case backlog of orders for Hudy Delight, Burger and Burger Light. The next shipments aren't scheduled to arrive until early May.

"The beer's ready. It just has to be packaged, put on trucks and shipped," said Paul Abrams, spokesman for Hudepohl, the last survivor of a Cincinnati brewing industry that once included dozens of competitors. In addition to Hudy Delight and Burger, the company's brands include Little Kings Cream Ale and Christian Moerlein.

The Burger and Hudy Delight shortages have sparked rumors that Hudepohl is shutting down. Not true, said Abrams, one of three employees in Hudepohl's Blue Ash sales office.

But Hudepohl's local presence has shrunk in recent years. The Lichtendahl family

-- which merged Hudepohl into Schoenling in 1986 -- sold the company's West End brewery to Boston Beer Co., which makes Samuel Adams, in 1996. Then, the Lichtendahls sold the company to Cleveland-based Snyder International Brewing Group in 1999. Last summer, Boston Beer and Hudepohl ended a five-year brewing contract, forcing Hudepohl to ship production of its beer brands out of Cincinnati for the first time in more than 100 years.

Bottled beer and kegs are now produced at a Snyder-owned facility in Maryland. Cans are produced at City Brewing Co. in LaCrosse, Wis., where salesman Randy Hull calls Hudepohl one of his smaller customers.

"Some of our packaging lines are tight as far as capacity," said Hull. "(But) we do have production scheduled for the week of April 29."

A brewing industry expert said City Brewing has benefited from the success of Smirnoff Ice, a flavored malt liquor product that caught on quickly last year.

"They did roughly 900,000 barrels for Smirnoff Ice last year," said Paul Gatza, director of the Institute for Brewing Studies. "That basically has taken all of their time."

Abrams said Hudepohl is searching for other breweries capable of producing its canned beers. He said Hudepohl has added several new distributors in Wisconsin, Michigan, Minnesota and Pennsylvania.

"I'd say we're poised to do well if we can keep up with demand," he said.

Gatza said Snyder International is the nation's 16th-largest craft brewer, a category that produces 6.2 million barrels a year, roughly 3 percent of the U.S. market. Gatza said Snyder produced 64,000 barrels last year, with about 30,000 coming from its Hudepohl-Schoenling brands.

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Garrison Hilliard

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