Contenders for the Throne: Who Will Be the New King of Beers?

By Cory Bortnicker Apr 27, 2009 2:39 pm
All-American upstarts vie for Budweiser's former title.
  • Share this article:
  • A- A A+
If there’s any silver lining to the whole Anheuser-Busch-being-sold-off-to-the-Belgians fiasco, it’s that the field is now wide open for smaller American breweries to compete for the title of “America’s Largest Brewery Actually Owned By Americans.”

With St. Louis out of the running, the battle has gone feverishly colonial, with the Boston Beer Company (SAM) -- aka Sam Adams -- squaring off with Pennsylvania’s Yuengling & Son, Inc., maker of the intimidating-to-pronounce, yet easy-to-drink Yuengling Amber Lager.

Both companies produce around 2 million barrels annually, but for now, the Beantown Brew has got the upper hand.

While there isn’t any documented (at least to my knowledge) feud between these 2 companies, it’s high time that one began. After all, there’s nothing like good, old fashioned regionalism to get the competitive juices flowing. With economists and politicians declaring that America needs to start making things on its own again, the nation deserves -- nay, it demands! -- that consumers start buying more domestic beer.

And now that winter has turned to summer (spring was purchased, I’m told, by the Chinese), it’s incumbent upon any decent, beer-loving citizen to get off the fence and pick their poison. Now that the King of Beers has gone European, we need to crown a new king --er, president -- of American beers. Here’s a little background on both companies.

Boston Beer Company

Samuel AdamsSamuel Adams was an American patriot and beer brewer who, rumor has it, was so ugly that the company that bears his name today opted instead to use for its bottle labels a picture of the slightly more attractive Paul Revere.

In 1985, the Boston Beer Company launched its Samuel Adams brand using a lager recipe dating back to 1860. The beer became wildly successful, and the company went public in 1995.

Despite Sam’s prominence in New England, the beer was initially brewed in -- get ready -- Pennsylvania by the Pittsburgh Brewing Company. Since then, Sam Adams has been produced under contract in Portland, Cincinnati and Rochester, New York.

In a particularly nefarious swipe at Pennsylvania beer loyalists, Sam Adams is now being made in Latrobe - in the former Rolling Rock plant. If Pennsylvania wasn’t filled with peace loving Amish and self-flagellating Philadelphians, Bostonians might take note of their egregious expansion and prepare for a serious backlash.

Even though Boston’s own is sort of made by everybody else, that doesn’t stop Sox fans from enjoying a cold one whenever the mood may strike. And enjoy them they most certainly do. Earlier this month, the Boston Beer Company was named the number 1 Craft Brewery by the Brewers Association.

Yuengling & Son, Inc.

Yuengling Next time you’re in southeastern Pennsylvania, order a “lager” and within seconds you’ll be face to face with a Yuengling. That’s because this regional brew is so popular, no other lager will do. But, Yuengling wasn’t always the brand on the tip of everyone’s tongues.

“When I was a kid, the cool people would never be caught with Yuengling - it was only for coal miners,” writes one commenter on Philly.com.

Yuengling’s ascent may not have been as meteoric as Sam Adams’, but it’s every bit as tinged with history. When Yuengling got its start in 1829 -- making it America’s oldest brewery -- every Pennsylvanian was a coal miner. At least it probably seemed that way. After a few years of startup, a burned down brewery and a battle with prohibition, the company began expanding throughout New York, New Jersey and Delaware.
< Previous
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2009 Minyanville Media, Inc. All Rights Reserved.



(5)
2009-04-27 15:27:39
apples and oranges fallacy
Ahhh... an issue right in my wheelhouse !!

It's really apples v. oranges - Yuengling make the best mass-produced lager; while the Sam Adams line is more like a craft brewery, albeit an outsourced one (think about how odd that is.) Plus, Sam Adams costs about 50% more, around here.

To give you some idea, Yuengling Traditional is SO good that I definitely prefer it on tap to from a bottle - and about the only other beer I can think of where I bother to draw that distinction is Guinness.
2009-04-27 15:39:03
I agree!
A big fan of Sam Adams - especially the seasonals - nothing beats S.A. Octoberfest on a crisp fall Midwestern day. Well, that is unless you have a Fat Tire in the mountains during ski season. Now that Fat Tire is starting to move East, maybe we can have another one added to the friendly regional competition.
2009-04-28 21:18:27
Yuengling vs.Sam Adams
Was under the impression that a brewer was one that owned a brewery? Yuengling wins this one hands down!
2009-06-02 15:55:25
Why Sam is not #1
Sam Adams will never grow until it has a twist off cap. This is America, not Belgium. We demand the ability to be able to drink a beer without an opener. I would also like to drink Yuengling or Sam Adams because I am an American. However, Bud still has that smooth drinkability. If Yueng or Sam could make a smoother beer they would be #1.
2009-11-23 02:22:24
fitch
People all over the world know the <a title="abercrombie and fitch" href="http://www.anfworld.com/" rel="dofollow"><strong>abercrombie and fitch</strong></a>,but not everyone really knows how fashion the abercrombie is,hollister is the Legend maker. Everybody wears the hollister clothing would be the abercrombie mensand the abercrombie womens, if you want know you can search the Ruehl No.925 or abercrombie outlet in the www.google.com .
Subject:
Comment:
Get real-time options trading ideas from Steve Smith, veteran options trader and newsletter author, plus let him show you the way to cut risk and boost your returns through the strategic use of options.  Click here for a free 14 day trial to OptionSmith by Steve Smith.