June 2004 - Return to Newsletter Index

In this issue, you will find:

1. Preface
2. Company Progress
3. Availability
4. Competition
5. Housekeeping

We hope you enjoy following our journey through the world of innovation and great beer.

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Preface 
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Get ready! Bard’s Tale Beer Company is preparing to launch the world’s first craft brewed gluten free beers. For those who are new to the newsletter you can read previous editions on the website. Please use the link on the home page (www.bardsbeer.com/newsletter.asp). For those of you have been with us for a while, patiently waiting for an update, on behalf of the whole team, I would like to extend our sincere apologies for taking so long to send out this next installment of our newsletter. The last several months have been very hectic as we try to make this a reality. So we would like you all to know that we are here and working diligently to bring you the world’s best Gluten Free beer so you can satisfy your thirsty palate.

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Company Progress 
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We plan on our official launch of the world’s first craft brewed gluten free beer, Dragon’s Gold, to be in late July/early August. After years of research and development, the beer will be ready, and provided that we receive our government approvals in time, we will launch. There are several steps to this process and it takes a long time to get the permits in hand. When we do, celiacs will once again be able to drink craft brewed beer.

Last week we had a write-up in a Connecticut newspaper. You can get to the article through this link:

http://www.stamfordadvocate.com/features/scn-sa-zebora2jun02,0,6892838.column 

The celiac community will be happy to know that one of the reasons for our delay has been the insane amount of interest in the pioneering research that we have done with gluten-free grains and processing techniques in order to produce the beer. From this research we have determined that we can make other gluten-free products such as liquid sweeteners that can be used in cereals instead of barley malt syrup, baby food with higher nutritional value than traditional formulas, and sprouted gluten-free flours that should help overcome some of the baking limitations we encounter on a daily basis. We have been literally bombarded with requests for information from interested parties from private businesses to government agencies. We choose to spend the time exploring these situations in order to determine how we could help improve the overall quality of life for celiacs and non-celiacs alike. The cost was a delay in the release of the beer. The benefit is the opening of nutritional research frontiers that will serve as the foundation technologies for food and beverage processing in the years to come. Since our overall goal is providing better lifestyle opportunities to the celiac community through products, services and research we felt this path was important for the greater good of all. We appreciate your ongoing support during this period.

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Availability 
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We receive a lot of emails asking where our beer will be available. That’s a fair question, but the truth is that it is really not up to us. Our customers will decide. For those that are not aware, here is a primer on distribution in the alcohol beverage industry.

The alcohol industry is based upon a 3-tier system. The 3 tiers are manufacturers, wholesalers/distributors and retailers. With very few exceptions, every State requires that beer goes from a manufacturer to a distributor and then to a retailer (liquor store, restaurant, bar, etc.). The problem lies in that the distributor has to be convinced that the product will sell in order to carry the product in a particular area. Since most distributors do not understand celiac disease or its prevalence, the time we spend having to educate them significantly lowers our effectiveness of getting the beer to you. Since our beer tastes as good as other craft brewed beers, our job is a little easier. But, truth be told, without the strong showing of support by the celiac community it will always be an uphill battle. Therefore, unless the celiac community goes to retail establishments and distributors to show a strong demand for the beer, we may not be able to get our product to you.

In order to help with this process we have posted a couple letters on our website (www.bardsbeer.com/distributors.asp) on the “Our Distributors” page that can be printed, signed and brought to your local retailers. We ask that, if possible, that you concentrate on Wild Oats, Whole Foods, Trader Joe’s, Hy-Vee and Outback Steakhouses. The idea for concentrating on these companies is that since they have a hierarchy of management, we will get a domino effect. In other words if several stores in a region start receiving many requests then the regional manager is bound to hear of it. If several regional managers hear of it, then headquarters is bound to hear it as well. These companies have the purchasing power to get distributors to carry products. Then we can get the beer to you. It is unfortunate, but the process starts with you. So the more people you can enlist, to more successful we will be in getting the beer to you. We have added links to these companies on our website, also on the “News” page, so you can use their store locators to find a location near you.

We have received a couple emails from people stating that they are uncomfortable requesting products they have never tried (please see competition section below). Unfortunately, that is a catch-22 situation. It is illegal in most states to ship beer directly to customers. Therefore, it is difficult if not impossible to sell beer to you by mail order or over the internet. We are aware that there beer companies that do ship to customers across state lines, but if they get caught, they will lose their permits and be out of business. They are taking a risk that we are not willing to take. We hope you can appreciate our position.

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Competition 
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First, let us say that competition is good. We like it and we are excited that other GF beers are available or soon will be available. This is great for the celiac community as well as the beer industry. Though as you are all well aware, not all products are created equal.

Our beers are made with 100% GF grains. Other GF beers are made from either honey and molasses (technically an alcohol beverage made from honey is called a mead and is considered part of the wine family) or raw buckwheat and rice syrup. In order to convert the starches of the buckwheat into fermentable sugars, industrial enzymes are used; which is pretty scary.

Everybody’s tastes are different and so we expect that all the products will sell well, but for those looking for beer with a beer taste, aroma, and body you will find our product superior (yes we know it doesn’t mean much if it’s not available). We don’t use syrups, industrial enzymes or additives. Your long wait for craft brewed beer will soon be over.

Remember, if you want beer, please print the letters from our website and bring them to your local retailers. The more requests that are made, the higher the probability of our being able to get beer to you.

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HouseKeeping 
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Cheers,

Kevin Seplowitz
CEO

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