This article from NYTimes.com has been sent to you by mbehrendt(a)mn.rr.com. Interesting info from Munich. //Mike Behrendt mbehrendt(a)mn.rr.com /-------------------- advertisement -----------------------\ Explore more of Starbucks at Starbucks.com. http://www.starbucks.com/default.asp?ci=1015 \----------------------------------------------------------/ Local Beer Only at Oktoberfest, Unless It's Belgian, of Course September 20, 2003 By MARK LANDLER MUNICH, Sept. 19 - The Oktoberfest starts here this weekend, and even before noon today, the vaulted main hall of the Hofbr�uhaus 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 L�wenbr�u, 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 L�wenbr�u, has long been an anchor of the Oktoberfest. Indeed, L�wenbr�u, 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 K�nig Ludwig, which he has fought unsuccessfully to sell at Oktoberfest for 20 years. Prince Luitpold said he did not want Paulaner and L�wenbr�u 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 L�wenbr�u or its sisters. "We see no reason not to serve it," said the general manager, Gabriele Weish�upl. "L�wenbr�u has been sold, but it is still a Munich beer, made in Munich, according to Munich practices." Ms. Weish�upl 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 Hofbr�uhaus, however, the talk was of the virtues of local ownership. The house beer in Munich's most famous beer house is Hofbr�u, owned by the state of Bavaria. Wolfgang Sperger, whose family owns the Hofbr�uhaus, said his guests valued the staunchly Teutonic image. "Hofbr�u 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. http://www.nytimes.com/2003/09/20/business/worldbusiness/20BREW.html?ex=106… --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! 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