Ale Street News Online

America and Britain currently share the same low consumer confidence but beer has several double whammies. It’s being hit by the health lobby as alcohol joins tobacco as the reason for society’s ills.

The smoking ban (in all public places) hit pubs last summer and is estimated to be the sole cause of 175 million less pints being drunk. It was expected the cleaner atmosphere would attract diners and pubs planned accordingly. The same optimistic planning several years ago believed 24 hour licensing would lead to a Mediterranean "café culture" for drinking in Britain. Ten out of 10 for naivety on both counts.

The 4p/pint duty hike on beer in March was borne out of the Government’s desperation to raise revenue, rather than the official reason of additional funding for the National Health Service because of alcohol-related issues. As a result of the hike the Chancellor has been banned from all pubs in Britain.

Pubs are closing at the rate of 20 a week and are under pressure to reduce noise, use plastic glasses and even keep streets clean. Rather than being the hub of the community, the British pub should be renamed "The Scapegoat Arms."

Underage (18) drinking gets more press than cannabis classification and a hysterical media would have us believe it’s all down to wicked pub landlords (acting like pushers) and cheap alcohol at supermarkets, rather than a societal issue. That same illogical, lazy thinking has police chiefs and health lobbyists seeking a ban on alcohol advertising, an increase in the drinking age to 21, even higher duty and a legal definition of drunk. The Nanny state is trying out Prohibition-lite.

Twenty years ago, a Government investigation into "brewery power abuse" (Anti-Trust), lead to the BEER ORDERS, which forbade breweries to own more than 2,400 pubs. The law of unintended consequences kicked in as the breweries unloaded their pubs to newly formed Pub Companies (PubCos).

Bass, Whitbread and Scottish & Newcastle got out of brewing as well and were replaced by the likes of Enterprise, Punch, Admiral and Mitchells & Butler who, between them own over 20,000 pubs or 41 percent of all pubs in Britain. Brakspear and Youngs’ breweries closed because of their greater value as real estate rather than a brewery; likewise the PubCos are seen as parcels of real estate that happen to dispense beer and are likely to undergo another Government review on abuse of power. Plus ca change!

On the positive side, the introduction of Progressive Beer Duty in 2002 has benefited breweries below 30,000 HL. Start-ups were encouraged to invest in equipment and marketing rather than lower prices. Since its introduction, several breweries that would be at home on the American Craft Brewery scene have developed cult followings; e.g London’s Meantime and Scotland’s Brew Dog have been medal winners at the Beer World Cup and are exporting to America.

In the beautiful Peak District, Thornbridge is four years old and brewing awesome traditional and experimental beers. Brooklyn’s Garrett Oliver has been a guest brewer and remains a fan; only limited brewing capacity prevents exporting. In bohemian Brighton, Dark Star takes traditional British beers to new heights: its Hop Head is self explanatory. And, yes, the brewer is a Dead Head.

The two big business stories are operating in their own bubble. My guess is the assimilation of Scottish & Newcastle by Heineken in Britain will have little effect whilst the A-B/InBev mating ritual belies the old Indian saying "When elephants dance, grass gets trampled." Their union will keep the banks and lawyers in business for years before it’s unbundled a few years down the line making the same professionals even richer. The business cycle in action but of little obvious impact on British brewing.

In between the giant and the micro-brewers, established breweries of Fullers, Greene King, Harveys, Shepherd Neame et al all report reasonable business in tough conditions. Collectively they post beer sales down 3 percent but cask ale as a star with 4 percent growth.

The Bass brewing museum (sorry, Coors visitor centre) in Burton-on-Trent has closed. It will re-open if a trust can be established and Coors will contribute and agreed to keep its records intact and retain the Shire horses. The museum will always have one insurmountable problem — it’s in a rust-belt town in the Midlands with no other reason to visit it.

Pubs generally may be having a hard time but the best will always prosper. In London, the White Horse in Parson’s Green is well known to American visitors and is as good as ever, whilst a newcomer, The Rake in Borough Market, opened in October 2006 but has already won a stack of awards. Its beer choice will remind drinkers of Denver’s Falling Rock. Yup, that good!

Beer and food matching is some years behind America but the chefs at London’s high-end restaurants are beer advocates and it’s a wish their love will infect their diners and food critics. The Taste of London is a showpiece for four days every June in London’s Regent’s Park as 40 of the best show their dishes. Breweries, butchers, bakers etc all contribute to stake London’s claim as the most cosmopolitan city in the world.

Supermarkets are helping brewers: Waitrose (think Whole Food) emphasize local food connections and stock five local beers at each of their 150 stores; Marks & Spencer have introduced regional bottle conditioned ales; even Tesco (think WalMart) have woken up to the power of local beers.

The Great British Beer Festival kicks off on Aug. 5 with trade day. It brings the brewing industry together and is a showcase for British brewing but rarely surprises, although this year Shepherd Neame is launching Canterbury Jack, a 3.5% cask ale. The judging is short and the procedure dilettantish compared to Denver each fall. The real attraction is the area devoted to beers of the world, allowing drinkers to taste beyond these shores.

I started writing this article at Glastonbury, where 140,000 festival goers drink over a million pints of beer and cider over three days. And, lest we forget, this will be the first GBBF without Michael Jackson. We’ll toast his memory.