Archive for the ‘Business’ Category

Why I Don’t Care About Steve Jobs

Friday, October 7th, 2011

My title is not meant to imply I am happy Steve Jobs died. It is very sad that a man who was a father and husband died prematurely. He was an important person in the history of American business. It is just that I don’t get why there has been all the fuss. The media coverage has turned him into a figure on the level of Thomas Edison.

Steve Jobs did not invent personal computers. My first computer was a Kaypro. I have never owned a Mac and I don’t like them. I hated the commercial where they implied Mac users were young, hip, and cool while the rest of us were old and stodgy.

Kaypro Computer

I have had a Nano for about six months and it is okay. It is very small but the touch screen is very hard to use so I always “shuffle” my music. This limits its versatility and puts it on par with the $10 mp3 player I previously had.

I found the media coverage, which has been extensive and pervasive, puzzling. Jobs died on Wednesday night, the same night that as many as 20,000 people were in downtown Manhattan marching against the excesses of Wall Street and capitalism. There were also demonstrations in over 160 cities the same night. Except for Keith Olbermann on CurrentTV, the main stream media did not really cover these events but focused on Jobs instead. Was the death of a CEO of a corporation more important than Occupy Wall Street? I don’t think so.

The main contribution of Apple and Steve Jobs to American society has been one of marketing. He created products that people felt they could not do without. Did that change society? Maybe. Did it change society for the better? Maybe not.

 

Better Late Than Never

Saturday, September 24th, 2011

The current issue of The Social History of Alcohol and Drugs has a review of Brewing Battles. The book was published over three and a half years ago but such delays are fairly common in academic reviewing.

If you want to read the full review you must be subscribed to the journal. If you have any interest in the topic I would encourage you to do that.

Martin Stack reviewed both Brewing Battles and Maureen Ogle’s Ambitious Brew. Here is an excerpt:

“Mittelman’s approach is quite different. She provides a more complete chronological overview, beginning decades before Ogle does. While she doesn’t spend as much time as does Ogle in connecting changes in the beer and the brewing industry to broader cultural and social developments, she is excellent on two key topics that Ogle downplays, regulation and worker-brewery relations. Mittelman examines thoroughly the history of the complex regulatory environment connecting beer, breweries, and the state and federal government, highlighting how and why this set of interconnections has changed over time. … Mittelman makes a significant contribution in her detailed discussions of how breweries and the federal government set about to develop a post-repeal regulatory system. …

Another topic Mittelman handles very well concerns worker-brewery relations. This discussion draws from some of her earlier work, and she provides some excellent analysis here. Of particular import is her discussion of brewery workers during the late nineteenth and early twentieth centuries; she notes that brewery workers, as did workers in many industries, focused too much on their internal struggles. For brewing this proved particularly short sighted, as workers and owners did not ‘form a self-conscious alliance … to combat prohibition forces … until 1913.’ (p. 61)

Together, the Mittelman and Ogle books bring much needed attention to an understudied topic. … As a student of this industry, I greatly prefer Mittelman’s book.”

It is never too late for such praise.

 

Alcohol Regulation

Tuesday, July 5th, 2011

Another interesting panel at the ADHS conference was “Regulating Alcohol in the 20th Century.” W. Scott Haine spoke on “Vichy’s Greatest Victory: Liquor Licensing and Urban Renewal in Occupied France, 1940-1944 and its enduring legacy.” The Vichy government waged a battle against cafes and aperitifs. The government passed seven different laws concerning liquor during the war. A 1943 zoning law sought to cure under population that the government felt was caused by alcoholism and the social life of the cafe. They wanted to move people from the city to the country. Interestingly when the Vichy government fell, the Resistance governments continued the same restrictive zoning and social policies.

Dan Malleck’s talk was on “Viewing and rev-viewing the public space: Ontario, 1927-1944.” Following the end of Prohibition in Ontario, the Liquor Control Board of Ontario licensed hotels to provide alcohol. Hotels were the only place people could drink. He provided very interesting maps that showed both the establishments that were licensed and those that weren’t as well as the surrounding neighborhoods.

William Rorabaugh spoke on “U.S. Alcohol Control after Prohibition”. The paper was really about the three-tier system of liquor production, distribution, and retail sale. This system grew out of the 21st amendment and is still the basic system of organization for alcoholic beverages. Washington is one of eighteen states that have a State Liquor Control Board.  Recently Costco has sued to be allowed to bypass the three-tier system and sell directly to consumers.

The three-tier system works very well for large alcohol producers and has created a powerful trade association, the National Beer Wholesalers Association.  Some craft brewers feel that the system prevents them from having equal access to shelf space and widespread distribution. At the same time, other craft brewers who have expanded nationally are pulling back. Dogfish Head Brewing, located in Delaware, pulled out of four states because the brewer was concerned with meeting demand while maintaining quality. Several other craft brewers have taken similar action. Voluntarily giving up shelf space and market share is not something that either regional or large brewers would have done during the intensely competitive atmosphere of the late 20th century.

Craft beers, however, are a niche product and withdrawing from some markets could increase demand for the product. Since the brewers have framed their market withdrawals within a context of a determination to maintain quality, these actions could also increase the commitment that craft beer drinkers have to the product.

For more on brewers withdrawing from markets  click here.

Connecticut Trail of Taxes

Friday, July 1st, 2011

The June/July issue of Yankee Brew News had two stories about Connecticut brewing that I think illuminate the shape of the craft brewing industry today.  On May 11, the Connecticut Senate passed a bill establishing the Connecticut Brewery Trail. In June, the House passed it and the trail will go into effect today. Connecticut already has a wine trail. The marketing of breweries as tourist sites is an important part of the development of craft beer.  As a niche market with deeply loyal customers, the chance for these customers to see where their favorite beer is produced as well as acquire paraphernalia from that brewery is very appealing.

Also today, the liquor industry in the state faces an increase in the sale tax as well as a floor tax that will apply to what retail stores already have in inventory. Yankee Brew News claims that these new taxes represent a 20 percent increase. Many other produces are also facing tax increases including tobacco. For more on these taxes click here.

Craft beer is a highly fashionable upscale product that also holds a special place in both the federal and state government’s treasuries. I have been surprised that more states have not already turned to alcohol beverages to shore up their deficit budgets.

Alcohol and the Modern State

Thursday, June 30th, 2011

Last week, I attended the Sixth Biennial Meeting of the Alcohol and Drug History Society. It was in Buffalo. I am a founding member of this organization, which was originally the Alcohol Temperance History group (ATHG). There were many nice people at the conference and many of the papers were excellent.

I chaired a panel on “Alcohol and the Modern State.” Brewing Battles deals with the relationship between the United States government and the brewing industry, that is probably why they choose me.

There were four papers and all were excellent.  Noelle Plack spoke on “Wine, equality and taxation in the French Revolution.” Prior to the Revolution, there was a very high indirect tax on wine. Using the rhetoric of equality common people fought for the abolition of the tax.  The taxes were reinstated between 1798 and 1804 but were much lower.

James Sumner’s paper was “Chemists in the brew house: Excise policy, chemical authority and the value of drink, 1790-1820. “ He looked at debates about how to determine the amount of alcohol in beer and what scientific methods to use. The English taxed beer indirectly and were looking for the most efficient, least corruptible way to maintain the tax and the revenue it generated.

Graceiela Marquez Colin and Gabriela Recio spoke on “Politicians and Brewers in Mexico: Taxing Beer in the 1920s.”  By 1899, five firms controlled 63% of Mexico’s beer production. Prior to the Mexican Revolution beer did not pay the stamp tax that other alcoholic beverages did. The Mexican Revolution halted national distribution of beer.  In 1912, the revolutionaries imposed taxes on beer for the first time and taxes rose five times between1912- 1922.  In response, the brewers formed a trade association that sought tariff protection, lower taxes, and a labor code.

Jon Miller gave a talk on “Petroleum Nasby and the Comedy of Excise Taxes.”  David Locke, a journalist, created Nasby as a fictional, satirical figure.  Nasby drank whiskey straight and was a Democrat. Locke used Nasby to promote support of the Republican Party and its’ polices. One of the policies he promoted the most was the excise tax on liquor. A modern comparison to Nasby would be Stephen Colbert who pretends to be a conservative Republican. Nasby was very popular and a favorite of President Lincoln.

All four papers reveal the centrality of liquor taxation to states and their need for revenue. They also reveal the different responses that varying interest groups have to liquor taxation.  In France, common people sought a reduction in taxes using the rhetoric of the revolution. In America, in the 1790s, western distillers rebelled against the imposition of a tax on whiskey.

Brewers in American, when faced with an excise tax to finance the Civil War, responded in a similar way to the Mexican brewers. They organized a trade association and sought amelioration within the tax system.The tax in the United States provided many patronage positions and this is one aspect of why Locke via Nasby supported the liquor excise. By looking at the relationship between states and liquor taxation, all the papers demonstrate how entangled liquor is in every aspect of modern life.

Containing Beer

Wednesday, June 22nd, 2011

On Saturday, I had dinner at Egg, a great restaurant in Williamsburg, Brooklyn. With the meal, I ordered a Narragansett Bock, 16 oz., and my husband had a Sly Fox Pale Ale. The restaurant didn’t have any beer on tap.  The two beers came in cans which surprised me. I know that some craft brewers have been producing beer in cans and Oskar Blues Brewery only produces beer in cans and has done so since 2002. ( For an article about canned beer and session beers, another trend in craft brewing, click here.)

Narragansett is an old brewery that has been recreated as a craft beer. At one time, Narragansett, based in Rhode Island, was a top selling beer in New England. Falstaff Beer bought the company in 1966. The brewery closed in 1981. In 2005, Rhode Island investors purchased the brand.

Usually when I go out to eat, I drink whatever beer is on tap and the same is true when I go to a bar.  I probably retain the negative association of bad beer with cans. The Narragansett Bock was okay but there really wasn’t anything special about it. My husband said the same thing about the Sly Fox.

To really evaluate if drinking from a can makes a difference in taste, I would have to drink the bock from a bottle or on tap and then compare.

A few weeks before the dinner at Egg, we went to Yankee stadium to see the Yankees play the Red Sox. Our seats were not that great and far away from any food or beer. It was hot so I got a Miller Lite – only 110 calories – in a plastic bottle. Miller Lite is a terrible beer and mostly tastes cold and wet. It would be impossible for the plastic to make it worse.

It is funny that soda comes in all different containers and no one thinks that   from a can instead of a bottle makes it taste worse. The new cans that craft brewers are using are not supposed to affect the taste at all and are lighter and easier to recycle.

I still think that the association of bad, macro beer with cans will limit how many craft brewers embrace brewing in cans.

76 Years of Beer Cans

Monday, January 24th, 2011

Today is the 76th anniversary of the beer can. In To commemorate the occasion, I am posting an excerpt from Brewing Battles: A History of American Beer (Algora, 20070), pages 106-107.

Krueger can. Photo courtesy of Brewery Collectibles Club of America.

The American Can Company had developed a viable beer can prior to Repeal. The company lined the can with enamel, thus earning the designation “keg-lined.” In 1933, the Gottfried Krueger Brewing Company of Newark, New Jersey engaged American Can to produce cans. The can company produced a trial run of two thousand Krueger Special Beer cans which contained 3.2 percent beer, the alcoholic content allowed by the modification of the Volstead Act. The test market approved of the taste of beer in cans, and Krueger went on to produce a line of canned beer which the company put on sale in Richmond, Virginia on January 24, 1935.[1]

The Gottfried Krueger Brewing Company dated from 1852. Its original name was Braun & Laible. By 1865 the name had changed to Hill & Krueger; Gottfried Krueger took over in 1875. In 1889, the brewery became part of the U.S. Brewing Company, Ltd of New York, a British brewing syndicate. After Repeal, Krueger reopened. A regional brewery, despite its’ brief moment of fame for canned beer, Krueger’s closed in 1960. Narragansett purchased the brand; when Falstaff purchased Narragansett, Krueger became one of its products.[2]

By September of 1935 American Can faced competition. Both National Can and Continental Can began producing lined cans. Crown Cork and Seal produced a cap that sealed Continental’s cans. American’s keg-lined cans required a special opener. By 1936 Continental felt sufficient confidence in its product to announce an advertising campaign in 200 newspapers representing a market of 193 cities.[3]

Both Pabst and Schlitz got on the can bandwagon early, but other brewers remained skeptical. By 1941 only 187 of the 507 United States brewers used cans. The light weight of the cans, which reduced shipping costs, provided further advantages to the national brewers.[4] By the late twentieth century beer cans had simultaneously become highly collectible as well as a major source of environmental pollution. Cans became the focus of brewers’ advertising as the trend towards off premises consumption intensified. With increased package sales, brewers changed their advertising approach. Not only did they have to promote beer as a healthy, family product, but the packaging had to sell this theme as well and be appealing in its own right.

For another take on the anniversary of the beer can, see http://ladiesocb.com/blog/happy-birthday-beer-can/


[1] Downard, Dictionary 64; “Beer Can History: The World’s First Beer Can,” Brewery Collectibles Club of America, http://www.bcca.com/history/overview4.php (accessed  July 17, 2007).

[2] Downard, Dictionary, 105.

[3] “Beer Listed and Canned,” Time, September 23, 1935; Baron, Brewed In America, 327.

[4] Downard, Dictionary, 44; Baron, Brewed in America, 246.

Agent Anxiety

Tuesday, November 2nd, 2010

I found a publisher for Brewing Battles without the help of an agent. I wrote queries to both agents and publishers. I got two positive responses from different publishers before any agent said they would represent me. I sent eleven queries; eight were to agents and three were to presses. I found all of that very frustrating and time consuming.

One day when I was feeling particularly frustrated, I realized that a particular agent lived in my hometown. I thought I would call him since writing letters and emails felt so distance and impersonal. It was a big mistake. Apparently, there is an underwritten rule that you never contact an agent on the phone. He informed me in no uncertain terms that the fact that we lived in the same area was irrelevant. So much for local connections. Despite his very negative response to my calling him, he did look at the book proposal. He told me it would never be published.

This experience along with others I had while trying to get Brewing Battles published has left me with some anxiety about dealing with agents. I feel that there are some many “rules” about what you can and cannot say to them and that you must not do anything that they could perceive of as wasting their time.

Two weeks ago, I attended Write Angles 25, a writer’s conference. I had the opportunity to meet face to face for 10minutes or so with an agent. That alone was an unusual occurrence. The agent liked my pitch and said I should send him/her the book proposal and sample chapter as well as Brewing Battles. This, of course, was exciting. Unfortunately, he/she wrote all of the instructions on his/her card with a felt tip pen that ran.

I tried the best I could to remember everything he/she had said. I had a lot of trouble sending him/her the documents as he/she had requested. I thought, oh, no this will ruin my chances. I emailed to say I was having trouble and ask if I could send them a different way. I did not hear back for two days, which also convinced me I had broken some cardinal rule and lost my chance.  I did receive a response the third day.

This whole experience made me realize I am terrified of agents. I am so terrified that I do not want to reveal the agent’s identity, which is why I am obscuring the pronouns. I want an agent for my new project so I can get a better deal from a publisher. However if it is going to make me such a basket case maybe it is not worth it.

Sales Tax on Alcohol

Monday, November 1st, 2010

Tomorrow people in Massachusetts will vote on three ballot questions. Two have to do with taxes. Question 3 would reduce the rate of the state sales and use tax from 6.25% to 3%.

Question 1 would remove the sales tax from alcoholic beverages. Before last year, there was no sales tax on alcohol. There is no sales tax on food, clothing, or prescriptions in the state.

I think sales taxes are very regressive and an unfortunate way to raise revenue. The basic rate for the Massachusetts income tax is 5.3%, which is less than the sales tax. Income taxes can be progressive and can even redistribute income but they are politically unpopular. Apparently, sales taxes are less unpopular.

I have not decided how I am going to vote on Question 1 because the liquor industry already pays excise taxes so the sales tax is, in some way, double taxation. Governments have usually seen alcoholic beverages as appropriate for taxation because they supposedly have inelastic demand.

Prior to Prohibition, the states did not generally tax distilled spirits, beer, or wine. Since Repeal, many states generate significant revenue through taxiing alcohol.  Only five states do not have a sales tax on liquor.

Both before and after prohibition, some legislators have felt that taxing alcohol provides benefits to society since it could potentially reduce drinking. This attitude would imply an elastic demand. Since the 1980s, public health advocates have called for increased taxation of alcohol to help pay for the societal costs associated with alcoholism, drunk driving, and other manifestations of alcohol abuse.

Usually the government’s need for revenue is what wins out. It is interesting that Massachusetts is looking at losing revenue from alcohol while California is seeking to gain revenue from legalizing marijuana. Legalizing the recreational use of pot would enable California municipalities to generate tax revenue, which would help shore up sagging budgets.

I urge everyone to vote tomorrow because voting is a privilege. If you don’t vote you shouldn’t complain.

Beer Labels

Sunday, October 17th, 2010

witchs-wit-87x300

I wrote this post in December of 2008 before I had this word press blog. It was part of a series of posts I did about the seventy-fifth anniversary of Repeal. I am reposting it because I just read a blog about the label on Lost Abbey’s  Witch’s Wit. Tenured Radical is circulating another blogger’s concern about the graphic of a woman being burnt at the stake while a crowd of men watches with rapt attention. Of course, the picture on the label is very small  but I am sure it looks worse when you actually see it. TR and others find it offensive.

December 2 2008

The Road From Repeal: Labels and Advertising

I wanted to write about aspects of beer advertising in the seventy-five years since Repeal but I wasn’t exactly sure what I wanted to say. I also wanted to touch on labels since they became a regulatory issue in the late twentieth century. While thinking about the topic I came across an excellent article about beer labels in All About Beer (no link available). Dave Gausepohl, a breweriana collector, examines the history of labels and describes the information labels contain.

Currently all beer bottles and cans contain a government warning about the dangers of alcohol use and abuse. Post-Prohibition, as beer consumption shifted from on-premises to off-premises, primarily the home, the packaging of beer became more important. Ultimately what the container looked like was an integral part of the product’s advertising and marketing.

Beer labels have a UPC code, dating information, the government warning and in some cases, alcohol content, but they do not list ingredients. Brewers, unlike most other producers of edible, consumable products, do not have to disclose what they have used to make the beer. They also do not have to say anything about how many calories the beer has.

What the beer bottle or can looks like is part of advertising but since Prohibition the major emphasis for beer marketing has been radio and television. Brewers gained an immediate and lasting advantage over distillers who, until recently have lived under a voluntary ban against advertising on television. Despite this free gift, post-Prohibition brewers were circumspect in their marketing because they feared a return of Prohibition. This self-restraint lasted to a good degree until the 1970′s and the onset of the “beer wars”.  The intense competition among the top tier brewers fueled by the influx of advertising dollars from Miller Brewing and its parent company Philip Morris led to a decrease in the propriety of beer television ads.

Prohibitionists never went away and one of their ongoing battles has been to limit brewers access to advertising. The Center for Science in the Public Interest, a self-styled consumer and public health advocacy organization, has a Alcohol Priorities Project  which seeks to “promote a comprehensive, prevention-oriented approach to the role of alcohol in society by addressing alcohol advertising, excise taxes, changes in product labeling, and other population-based policy reforms.” In August, the Center sent a petition “signed by 60 Division I presidents, 240 athletic directors and 101 football and basketball coaches” urging the NCAA to prohibit beer advertising during college games. The NCAA declined to change its policies.  George Hacker, director of the Alcohol Policies Project, was extremely disappointed and commented, “In contrast, the NCAA rejects advertising for distilled spirits, most wine, sports wagering, gambling, nightclubs, firearms and weapons, and NC-17-rated motion pictures, among others.” Mr. Hacker also co-chairs the Coalition for the Prevention of Alcohol Problems, a coalition of temperance groups.

Sports Biz, a blog, noted “The Mountain West Conference does not carry beer commercials on its network, the mtn. (Mountain West Sports Network) It also doesn’t carry commercials for Viagra and similar products, which is a blessing for those few people who actually can receive the mtn. Declining Viagra and Cialis commercials would be a public service that I recommend that the Big Ten Network and the WWLS adopt immediately. Football and basketball fans would be forever grateful.”

It is doubtful that the labels at the top of this posting would have played a role in the ongoing controversy over beer advertising. The image at the bottom however is a different story.