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Stiff Competition for Gluten-Free Brew

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By: Sean Moloughney

Editor, Nutraceuticals World

Just because Anheuser-Busch is now selling a gluten-free beer—similar to Lakefront’s New Grist gluten-free brew—doesn’t mean “they’re going to be pushing everyone else out,” [Russ] Klisch [operator of Milwaukee’s Lakefront Brewery Inc.] said…Lakefront a year ago launched New Grist, a gluten-free beer brewed with sorghum. It’s targeted to people with celiac disease, a genetic disorder that makes it difficult to digest many grain-based products, including beer. New Grist has been a big hit for Lakefront, which expects its sales volume to grow by over 40% this year. About 80% to 90% of that growth is tied to New Grist, which is sold in 17 states and is the fastest-growing brand ever launched by Lakefront…Anheuser-Busch acknowledged this summer it was interested in possibly creating a gluten-free beer. The company’s gluten-free brand, known as Redbridge, was officially launched with [December’s] announcement…Last year, it [Anheuser-Busch] sold around 102 million barrels. Thanks to New Grist, Lakefront expects to set a new sales record for 2006 – of 9,000 barrels. Klisch, who started Lakefront in 1987 by selling kegs to nearby taverns in the Riverwest neighborhood, admits it gives him pause. But just enough to make a quip.

“Only 50 percent of the people out there want to drink Anheuser-Busch beer,” Klisch said, referring to his giant competitor’s market share. “I get the other 50 percent.”

—Tom Daykin, JSonline.com, 12/20/06

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