Challenges to the Beer Industry The health of the food supply after a heavy biofuels mandate By: Michael Hotz & Rob Sladek.

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Presentation transcript:

Challenges to the Beer Industry The health of the food supply after a heavy biofuels mandate By: Michael Hotz & Rob Sladek

Renewable Fuels Impacts Crops for biofuels get subsidized to the equivalent rate of $24.60 per acreCrops for biofuels get subsidized to the equivalent rate of $24.60 per acre Barley production down 5.5% just in 2007, likely to continue

Climate Bad Weather –Yield 1.6 million tons  1.2 million tons –270 Euros/ton  385 Euros/ton –Poor Quality Early Germination Off Taste Reduced performance Unable to Switch to Rice or Corn

Beer Law 1516 Germany can only use four ingredients in their beer making process Malted Grain Hops Yeast Water First used to stop buying competition from bread and beer –Neuzeller Kloster Brewery (Black Beer Controversy)

Beer Pricing Increase One liter = $10.70 This is a 5.5% increase from the previous Octoberfest

Inflation Electricity  +12.4% Dairy Products  +23.0% Oil Food Products  +42.7% Rice and Cereals  +26.9%

Types of German Beer Altbier (old beer) Berliner Weisse (Berlin wheat beer) Bock (strong lager) Dortmunder Export Dunkel (dark beers) Gose (a distinctive Leipzig style) Hefeweizen (Bavarian wheat beer) Kristallweizen (filtered Bavarian wheat beer) Kölsch (Koelsch) (a very pale ale from Cologne/Köln) Märzen (Bavarian "March Beer" — the original Oktoberfest beer) Münchner Helles (Munich light lager) Pils (AKA Pilsner or Pilsener) Sticke (strong altbier) Rauchbier (smoke beer)

German Beer Process

German Drinking Culture Can’t be alcoholics because they drink beer 42,000 deaths due to alcohol per year 1.7 million Germans “dependent on alcohol” Potential law change limiting teenage drinking