Brew News

Brew Blog's picks of stories from the beer business and beyond.

Scott Barnum, the CEO of Pyramid, tells Beer Business Daily (subscription required), that the proposed merger of Magic Hat and Pyramid could be the prelude to further craft brewer consolidation. Says Barnum: “Yes, I suspect there will be additional consolidation and combinations and strategic moves as people look to the future and how best to compete in a competitively intensifying beer industry. A number of craft brewery owners are getting older, and are looking to the future from a legacy and liquidity standpoint. Some people will be more motivated to do things that they wouldn't be motivated to do in the past because of timing, the economy and the changes taking place in the beer market.”

Observes Mark Swartzberg, an analyst for Stifel Nicolaus: "We take the merger as another indication of rising input costs’ disproportionate effect on smaller brewers. Both companies believe the deal provides the potential for cost savings and strategic merit, including cross-selling and production."

With the price of hops increasing, the San Diego Tribune suggests that craft brewers might seek new ingredients for aroma and bitterness. Lemongrass, marjoram or dill, anyone?

Meanwhile, CNNMoney reports that the economy grew -- albeit barely -- during the first quarter.

On a likely related note, consumer confidence fell to a five-year low. Reuters.

Amid this news, Wal-Mart says its winning more "affluent" shoppers, according to the Associated Press.