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Local Beer Only at Oktoberfest, Unless It's Belgian, of Course
The NY Times ^ | 091903 | Mark Landler

Posted on 09/20/2003 11:18:30 AM PDT by Archangelsk

Local Beer Only at Oktoberfest, Unless It's Belgian, of Course By MARK LANDLER

MUNICH (MUNCHEN), Sept. 19 — The Oktoberfest starts here this weekend, and even before noon today, the vaulted main hall of the Hofbräuhaus was teeming with tourists in boisterous training.

But in Bavaria's breweries, bitterness is spoiling the season. Some of Germany's leading beers have been sold into foreign hands, and to defenders of national pride, something of Germany's birthright has been sold with them.

Earlier this week, one of Germany's oldest breweries, Gabriel Sedlmayr, announced it would sell its famous beers, which include Löwenbräu, to Interbrew, the giant Belgian brewer of Stella Artois, for 477 million euros ($543 million).

In previous deals, Interbrew acquired Beck's, the famous northern German beer, while the Dutch beer giant Heineken bought close to half of the Munich brewery that makes the locally popular Paulaner brand.

Sedlmayr, which brews the venerable Franziskaner and Spaten brands in addition to Löwenbräu, has long been an anchor of the Oktoberfest. Indeed, Löwenbräu, which is said to date from the 14th century and is known by its golden lion, virtually symbolizes the hallowed tradition of beer in Bavaria.

"The mayor is going to open the Oktoberfest with an Interbrew product," said Prince Luitpold of Bavaria, a descendent of the state's former rulers, who brews beer at his castle 30 miles west of Munich. "What's to stop them from brewing Stella Artois in Munich and selling it at the Oktoberfest?"

Actually, there are strict laws governing the production of beer within Germany, which would make it all but impossible for Interbrew to try to pass off a German version of Stella Artois, a mass-market beer it brews in Belgium, at the festival.

Moreover, by city law, only beers that are produced in Munich by traditional breweries can be sold at the festival. That disqualifies microbreweries, as well as dozens of brands from Munich's beer-drenched hinterland — including Prince Luitpold's König Ludwig, which he has fought unsuccessfully to sell at Oktoberfest for 20 years.

Prince Luitpold said he did not want Paulaner and Löwenbräu to be banned from the festival. But he said the city should let in smaller regional brewers, like himself, to offset the foreign-owned producers.

"The city of Munich should not defend the monopolies of Interbrew and Heineken," said the prince, adding that his family helped start the Oktoberfest in the early 1800's and has been brewing beer since 1260.

The festival's organizers said the Interbrew deal would not disqualify Löwenbräu or its sisters. "We see no reason not to serve it," said the general manager, Gabriele Weishäupl. "Löwenbräu has been sold, but it is still a Munich beer, made in Munich, according to Munich practices."

Ms. Weishäupl also said the festival would not reconsider its ban on beers made outside Munich. Although she agreed that Prince Luitpold had a distinguished beer-making lineage, she said if he were allowed in, the Oktoberfest would have to accept every pint-size Bavarian brewery, as well as Austrian and Czech brewers.

"It's a pity, but this is a question of principle," she said.

While the Oktoberfest has always been a closed market, the Munich brewers have added reason to be protectionist these days. Annual consumption of beer by Germans has fallen to 32 gallons a person from 38.4 gallons in 1980. Experts say this is partly from concerns about health. Beer sales have been further depressed this year by a new deposit placed on cans and bottles.

Germany has become a ripe target for acquisitions in recent years because it is a large but fragmented market, with 1,291 brewers producing around 5,000 beers. Interbrew was attracted to Sedlmayr because it gave the company a chance to fill out its portfolio in southern Germany.

"This is the right deal at the right price, in a key market," John Brock, Interbrew's chief executive, said at a news conference.

Interbrew's move vaults it ahead of Holsten of Hamburg as the largest seller of beer in Germany, with roughly an 11 percent market share. Analysts expect further acquisitions, with attention focusing on three large German brewers: Holsten, Brau and Brunnen, and Radeberger.

At the Hofbräuhaus, however, the talk was of the virtues of local ownership. The house beer in Munich's most famous beer house is Hofbräu, owned by the state of Bavaria. Wolfgang Sperger, whose family owns the Hofbräuhaus, said his guests valued the staunchly Teutonic image.

"Hofbräu is identified with Munich, the Oktoberfest and Germany," Mr. Sperger said. "The impression people have is that the beer is made in the house," he added, noting that it comes from a brewery within the city limits.



TOPICS: Business/Economy; Culture/Society; Germany
KEYWORDS: beer; beerbeerbeerbeer; belgium; germany; mmmmmmmmmbeeeeer; oktoberfest; realbeer; zymurgy
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Sacrilege.
1 posted on 09/20/2003 11:18:31 AM PDT by Archangelsk
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To: Archangelsk
Became a huge fan of German beers in the last few years, especially during a three-week trip to Deutschland last year. Tried Belgian beers while in Brussels and found them, um, lacking, and more close to Coors Light than Paulaner. Agreed. Sacrilege.

Paulaner has been in short supply in the DFW area for the last month or so, wonder if there is a connection.

2 posted on 09/20/2003 11:28:31 AM PDT by Defend the Second
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To: Archangelsk
They should try some of the new American microbrews. That'll get their panties in a wad.

3 posted on 09/20/2003 11:32:37 AM PDT by Agnes Heep
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To: Defend the Second
Tried Belgian beers while in Brussels and found them, um, lacking

Did you try Duval?

4 posted on 09/20/2003 11:56:08 AM PDT by Paleo Conservative (Do not remove this tag under penalty of law.)
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To: Archangelsk

5 posted on 09/20/2003 12:29:11 PM PDT by concentric circles
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To: Paleo Conservative
The best part of the occupation in Germany. Beir is Beir over there, it is entirely different. The kids would go to school with a borst sandwich and bottle of beer. It was treated as a food and had nutritional qualities. Octoberfest was the draining of the beer vats and drinking up the bach beer from the bottom of the vats.
6 posted on 09/20/2003 12:30:57 PM PDT by meenie
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To: Agnes Heep
They should try some of the new American microbrews.

Which ones, the one owned by Anheuser-Busch, or SABMiller? LOL
Furthermore, I'd like to see you explain the concept of a "microbrew" to a German. He'd probably look at you and say, "you mean, the way we've brewed beer in the past?"

7 posted on 09/20/2003 12:35:49 PM PDT by 1rudeboy
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To: concentric circles
Nice jugs.
8 posted on 09/20/2003 12:36:35 PM PDT by 1rudeboy
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To: 1rudeboy

9 posted on 09/20/2003 12:45:58 PM PDT by StriperSniper (The slippery slope is getting steeper.)
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To: Archangelsk
>The Oktoberfest starts here this weekend...

Oh-oh. My brother
is vacationing right now
in Germany. He

said he was going
over there to tour castles
and stuff. I wonder...

10 posted on 09/20/2003 12:49:49 PM PDT by theFIRMbss
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To: Archangelsk
Hmm, I wonder why I'm so thirsty all of a sudden ...
11 posted on 09/20/2003 12:52:53 PM PDT by mountaineer
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To: Paleo Conservative
Don't remember that one. I do recall that when we stayed in Normandy the hotel only carried Belgian beer - no German, no French (if such exists). The US Army types I had spent time with helped me become a big fan of Hefe-Weisse, so the Belgian stuff seemed too light.
12 posted on 09/20/2003 1:13:53 PM PDT by Defend the Second
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Comment #13 Removed by Moderator

To: Paleo Conservative
That's spelled "D-U-V-E-L". It's one of my favorites. Also Scaldis (which is called "Bush" in the Belgian market), Rodenbach Grand Cru, and Rochefourt 10. Nothing in Germany (or anywhere else)compares to Rodenbach Grand Cru or Rochefourt 10. Trust me.
14 posted on 09/20/2003 1:55:50 PM PDT by Renfield
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To: Archangelsk
Annual consumption of beer by Germans has fallen to 32 gallons a person from 38.4 gallons in 1980.

Two kegs a year is still pretty good.
15 posted on 09/20/2003 2:29:21 PM PDT by July 4th
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To: Defend the Second
Pardon the pun, but the connection is through Continental Express (KDFW). :-)
16 posted on 09/20/2003 4:52:14 PM PDT by Archangelsk ("Toss in a buck ya cheap bastard, I paid for your g**damn breakfast." Joe)
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To: July 4th; Fester Chugabrew
Two kegs a year is still pretty good.

Two half barrels. About 31 gallons.

A gallon a week would be 52 gallons a year, and a gallon a week would be 1/7th of a gallon per day. 1/7th of a gallon is exactly 33 ounces.

38 gallons per year is slightly more than 2 by 12 ounce beers per day. That's not alot.

Beer is food.

17 posted on 09/20/2003 5:04:21 PM PDT by Cboldt
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To: Cboldt
So, Clyde, how many 12oz cans in a keg? I'm looking for the cheapest beer possible as long as it ain't "lite."
18 posted on 09/20/2003 5:43:05 PM PDT by Fester Chugabrew (Your local dim bulb.)
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To: Archangelsk
Sausage and Sauerkraut

19 posted on 09/20/2003 5:44:42 PM PDT by carlo3b (http://www.CookingWithCarlo.com)
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To: Archangelsk
"Annual consumption of beer by Germans has fallen to 32 gallons a person from 38.4 gallons in 1980."

That's because I'm picking up the slack over here in Indiana.

20 posted on 09/20/2003 5:46:39 PM PDT by Fester Chugabrew (Your local dim bulb.)
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