Archive for the ‘Liquor Industry’ Category

Tourism

Tuesday, June 8th, 2010

I just finished writing a review of Garrett Peck’s The Prohibition Hangover: Alcohol in America from Demon Rum to Cult Cabernet. You will have to wait to read the review in its entirety until The Historian is published. The book is an interesting survey of the current liquor industry. One thing that stood out in the book was how much the liquor industry is using tourism as a way to promote itself.

Wine tourism, particularly in California, is very big business. One could make the case – Peck does not – that the best aspect about the liquor industry for the American economy is that they produce their products in America. They make something and offer traditional, well paying unionized jobs, particularly at the macro brewing level. If the industry shifts its’ focus toward tourism and away from production, these jobs will be replaced by lower paying service jobs, a familiar story for much of American industry.

Of course many places want to become tourist attractions. As part of the Little Berks, on Saturday I went on a  walking tour of Florence, Massachusetts. Florence use to have some industry; Pro Brush was a big employer. It closed in 2007. The David Ruggles Center is trying to restore and promote the history of the village. Florence was involved in many of the reform movements of the nineteenth century including the water cure, abolitionism, and the underground railroad.

sojourner-truth

Sojourner Truth Statue Florence Massachusetts

Sojourner Truth lived in Florence for a while and there is now a beautiful statue of her there. The house she lived in still exists but looks completely different. Local historians would love to be able to restore the house. If they do, it will certainly be a tourist attraction. Many of the places we have gone this year while traveling also hope to have something that will produce a steady stream of visitors.

7-Eleven Beer

Friday, April 16th, 2010

Alan McLeod has an interesting link in his A Good Beer Blog today. Apparently, 7-Eleven plans to sell premium private label beer at budget prices. The full story is here.

City Brewing Company will produce the beer for the convenience store chain. City is located in La Crosse, Wisconsin in the old Heileman brewery. In the past, they brewed beer for Boston Beer in the Rolling Rock, Latrobe, Pennsylvania brewery.

The key demographic group that 7-Eleven is trying to reach is young men, 21 to 27. The name of the beer is Game Day. I predict sports themed marketing.

Beer in Other Places

Saturday, March 6th, 2010

In the past week there have been some interesting items about beer in different places as well as some different beer customs.The New York Times had a very interesting story about beer in Vietnam. The local draft beer is bia hoi, “a crisp, cold beer with a clean taste suggesting rice and an almost subliminal whisper of something like hops.” I think most of the Americans who go to Vietnam are Vietnam War vets but I loved China and it would be very exciting to visit other parts of Asia.

The Alcohol and Drugs History Society website has a story today about Green Beer Day at Miami University in Oxford, Ohio. David Fahey teaches there. It is apparently a pre- St. Patrick’s Day beer crawl. This year there were twenty arrests.

A Good Beer Blog writes about proposed beer regulation in Botswana. One of the local beers is chibuku is made from sorghum. They also have a higher alcohol content beer made from honey and sugar, khadi. The Chinese make  Baiiju from sorghum. It is very strong and viscous. I didn’t really like the taste.

The final item comes from the Mount Hope Monitor, a Bronx newspaper. Apparently Burger Kings plans to sell domestic beers - Budweiser - in some New York locations.  I do not know if that will make Burger King more or less appealing.

This and That

Monday, November 16th, 2009

Here are some interesting links from around the web. They are mostly alcohol related but I couldn’t resist this story about giant jellyfish.

Giant Jellyfish Washed Ashore

Giant Jellyfish Washed Ashore

My favorite part of the article is that the Japanese are trying to make consumable products out of these creatures, including ice cream.

This past weekend there was a brewers festival in Manchester, New Hampshire. It was the first year and it sounds like a lot of fun.

Carla Champion, The Beer Babe, talked at a seminar entitled, ” I Wished My Girlfriend Liked Beer.” The subject of women and beer seems to have become a required element of any beer festival. As someone who has been drinking beer since I was eleven, on some level I don’t get it. I think more women probably like beer than is commonly known. It is more an advertising and marketing issue.

Roger Protz, beer-pages.com, has an interesting post about the Scottish brewer, Brewdog. Apparently they are in an issue of a newspaper, appearing  lewd and drunk. He thinks this is bad for the image of brewing.

The final item is also from Scotland. The Scottish drinks company, Whyte and Mackay is drilling in Antarctica to recover 100 year old Scotch. The liquor was left there by explorer Sir Ernest Shackleton. It is not clear whether they plan to drink it or not, but they do plan to see if it would be viable to start distilling it again.  Didn’t McKinlay and Co., the original distillers keep records?

Factions in The Beer Industry

Saturday, October 17th, 2009

Lager Heads, Jeremiah McWilliams blog on St. Louis Today.com, has an interesting story about a Marin Institute report on the mergers of Anheuser-Busch In Bev and Miller-Coors. The Institute is upset by Justice Department approval of these mergers and the potential negative effect this increased concentration and foreign ownership of the brewing industry will have on the three-tier distribution system.

The report is very negative about the country’s two largest brewers while being supportive of wholesale distributors. As McWilliams points out, some brewing analysts are seeing this as a “divide and conquer” strategy on the part of the Marin Institute. This approach has the potential to create division between the various aspects of the brewing industry.

Although wholesale distributors and the brewers have acted in concert when faced with potential tax increases, they do not have exactly the same interests. The NBWA is a larger and powerful lobby; there are more distributors in the country than brewers. The Marin Institute reports also proposed higher federal beer taxes so, in the end, the distributors and brewers may be on the same side in opposing this.

Bourbon Trail

Wednesday, September 30th, 2009

This past June, the Alcohol and Drug History site had an item about bourbon distillers attempting to market their product in a similar fashion to wine. The history of bourbon in America is one of a small minority trying to fashion a distinct identity. Ninety-five percent of the country’s bourbon is distilled in Kentucky. For the past  ten years there has been a Kentucky Bourbon Trail, modeled on wine tours and trails in other parts of the country, particularly Napa Valley.

Now micro distillers, also known as artisanal distillers, are trying to market their product as distinctive and build up their image in a similar fashion to craft brewers.  There are sixteen licensed artisanal distillers in Colorado and 170 nationwide.

All of these marketing attempts are part of a larger phenomena in the American economy which seeks to create recognizable commodities with a specific identity. Coffee, tea, bread, cheeses, and whiskey are all products that very large companies manufacture. Sometimes the companies have a lot of brand name recognition. Bud, Kraft, and Lipton are some examples. However Americans seem to want the producers of these products to be recognizable individuals who distill whiskey or make cheese on a much smaller scale.

101 Posts

Friday, September 25th, 2009

This is my one hundred and one-blog post if you count the thirty-eight I did before I had a word press blog. If anyone is interested in reading them go to my website, amymittelman.com, and click on archives.

At the panel discussion on Monday about women and blogging, Jenny Davidson said she had started her blog because she wanted to promote her novel. I initiated my website, then the blog in both versions, for the same reasons. Somewhere along the line, however, the blog has become its own entity. I enjoy writing and I think writing more frequently has helped me to become a better writer.

My public online presence or persona has also evolved. In the beginning, I felt it was important to stick to writing about beer and other topics that directly connected to Brewing Battles. I also wanted to sell as many books as possible so I tried not to write anything controversial or potentially offensive. I also tried not to generate controversy, which may have had the unwanted effect of limiting my audience.

I still want to sell books and maintain a professional demeanor but I have relaxed about topics and opinions. Partly I am never sure whom or how large my audience is. This has given me some freedom to express myself since it is entirely possible I am talking to myself.

The internet and web have changed ideas and expectations of privacy. Because I have consciously sought a public identity, I have to expect that when I Google my name various things come up. I live in a small town so car accidents and the like are news in a way that they would not be here in Manhattan.  Because all newspapers have an online version, news items wind up being readily available.

The discussion on Monday touched on some of these privacy issues and Alexandra’s comments about the racial nature of disclosure are troubling. The real life consequences for someone’s risky behavior coming back to bite them later in life are very sobering.

Realizing this makes me more determined to behave online in an appropriate and professional way.  My blog persona is therefore close to my real life persona but not necessary how I am in the safety and security of my home and family.

This is a little more serious than I initially planned to commemorate my 101 posts. I will keep posting about beer, politics, women, and any other subjects that interest me. If you have been reading, I hope you stay around. If you are new, welcome and cheers!

The Legitimacy of Taxes

Thursday, July 23rd, 2009

Today’s New York Times has a story about Oakland, California passing a “huge tax increase - 15 times the former rate” on medical marijuana. Members of the pot industry see this as a further step towards legalization of marijuana.  From 1862 on, the liquor industry accepted federal taxation in exchange for the recognition of their business as legitimate. During Prohibition,  Jacob Ruppert and other brewers argued for a return to legal production of alcohol for  tax benefits. Repeal occurred in part because of the desire of very wealthy Americans to avoid personal tax increases during the Great Depression. California has a huge budget crisis.  Oakland will raise $300,000 from the tax increase. The need of governments for steady, stable sources of revenue often triumphs over moral concerns.

marijuana plant

A-B Anniversay

Tuesday, July 14th, 2009

Yesterday was the one year anniversary of the InBev takeover of Anheuser-Busch. Jeremiah McWilliams had a story about it in Sunday’s St Louis Post-Dispatch. His story detailed the sequence of events that led to InBev taking over the  historic, mega company  Anheuser-Busch. Sidebars contained comments by government officials about the importance of Anheuser-Busch to the St. Louis and Missouri economy.

I don’t feel that the sale of A-B to InBev has really made that much difference in the beer landscape. The company is still a very big corporation producing a high quality, standardized product that I don’t like. At the time of the takeover, commentators wondered if it would set off a new round of mergers. That has not really happened; probably because of the global economic meltdown. Prior to the takeover, craft brewers and the mega breweries occupied two different and fairly distinct tiers of the brewing industry. That has not changed. Distribution issues for craft brewers and the perhaps, unfair advantage the big brewers have, have also persisted.

The biggest impact of the creation of InBev-AB  has been on the employees of Anheuser Busch. In that way the takeover contributed to the country’s negative economic picture. However, a year later, this Bud is still not for me.

( I could not find a link to the story. McWilliams’ blog is lagerheads/stltoday)

Book Review: “The Wettest County in the World” by Matt Bondurant

Thursday, June 25th, 2009

The Wettest County in the World, by Matt Bondurant, (Scribner:New York, 2008)is well written. The device of placing Sherwood Anderson within the story is more problematic. Anderson does serve to frame the story as a mystery. Under the guise of writing a story about the Bondurant boys and moonshine, Anderson’s character helps guide the reader through the narrative maze. It is interesting that Bondurant starts his story of hardship for the family in the Flu Pandemic of 1918-1919. This certainly gives his book a timely feeling.

Bondurant presents illicit distilling or moonshine production as occurring because of both hard times and thrill seeking. Moonshine, governmental corruption, and tax evasion have a long history, dating back to 1862 and the creation of the Bureau of Internal Revenue to finance the Civil War.

Until the passage of the Volstead Act, which established enforcement procedures for Prohibition, the federal government had a limited view of its proper role in the regulation of the liquor industry. From 1862 on, officials conceived of liquor taxation as an easy, painless, and morally expedient way to raise revenue. High excise rates led to speculation, corruption and illegal distilling, significantly reducing the amount of money the government received. The Internal Revenue Act of 1862 created many new patronage positions and new opportunities for spoils. Because officials established a bureaucracy but paid little attention to administration, time honored patterns of political appointments and gain continued.

Despite reform efforts by David A. Wells and others, the combined forces of speculators and government spoils men dominated the federal tax policy and its administration. In the generally lax atmosphere of the Grant presidency, corruption reached new heights. Using the need for funds for Grant’s reelection as a pretext, mid-level revenue officials in St. Louis and other Mid-west cities set up a collection ring that cost the federal government millions in revenue from St. Louis alone.

Following the breakup of the Whiskey Ring, the administration of the Bureau of Internal Revenue stabilized. Although fraud by licensed distillers did not disappear, the Bureau shifted its attention to moonshine, particularly in the South.1 These unlicensed distillers are the characters in The Wettest County. During Prohibition, any production of alcohol for commercial purposes was illegal but the Virginia distillers in the book had a history of illegal production dating back to the nineteenth century.

After Repeal, widespread illicit distilling subsided but Southern moonshine has remained a perennial problem for the federal government. Federal legislation prohibits distillation of spirits for home use. Distilling sprits always requires payment of taxes and filing of paperwork prior to beginning production. In the early twentieth-first century, the ATF was the lead agency in Operation Lighting Strike, formed in Virginia and North Carolina to fight the big business of illicit distillation of alcohol. In a first, Operation Lightning Strike used federal money-laundering legislation to combat moonshine.2

Jack Bondurant is the chief protagonist; the author does not fully develop his character. The epilogue, which ends the book, although factual, is the least developed aspect of the book, particularly because the author does not really explain why Jack left the family business. Overall, The Wettest County is enjoyable to read and provides some, good historical information.

  1. Amy Mittelman, “Who Will Pay the Tax” Social History of Alcohol Review, no. 25, Spring 1992. []
  2. Amy Mittelman, “Bureau of Alcohol, Tobacco, and Firearms (BATF)”, in Jack S. Blocker, David M. Fahey, and Ian R. Tyrrell, eds., 2 vols., Alcohol and Temperance in Modern History (ABC_CLIO:Santa Barbara, CA, 2003). []