HOT TRUB@BEER BASICS.COM
Vol. 03 No. 31 --- 20 November 2002
A newsletter of special interest to brewers,
members of the brewing community, chefs, restaurateurs,
and members of the media that cover the beverage alcohol
business.
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===========================
Publisher: Peter LaFrance
Editor: Deven Black
From Behind The Bar: Chris Halleron
On The
Loose: Kurt Epps
On The Beat: Alan Wax
Travel: Sharon McDonnell
============================
FROM THE PUBLISHER
===========================
===========================
NEWS & VIEWS:
GERMAN BREWING INDUSTRY SHAKEOUT IS A RADLER
WINE SHIPMENT BAN RULED UNCONSTITUTIONAL – Setting the
Stage?
BRITISH PUBS TO STAY OPEN LONGER AS BRITAIN SEEKS TO CURB
BINGE-DRINKING
TEACH A FRIEND TO HOMEBREW DAY BREAKS RECORD
BELGIANS LEAD PUSH
FOR REGIME CHANGE IN AMERICA
===========================
============================
SPECIAL REPORT:
BAA CONFERENCE IN SEATTLE: Questions and Challenges About
the Future of Small Breweries
By Alan
Moen
LOOKING THE GIFT HORSE IN THE MOUTH
by Chris Halleron
===========================
NEW PRODUCTS - PROMOTIONS – EVENTS – DINNERS:
===========================
===========================
CHECK THESE OUT: Links to interesting sites.
=============================
============================
FROM THE PUBLISHER
============================
Greetings,
The holidays are now upon us. I saw the
annual Anchor Our Special Ale on the shelf of my local beverage center.
However, it and about two dozen other “seasonal” brews have not been tasted
yet. Notes to follow in next (Thanksgiving) issue.
In a world that seems to feed on crisis I
hope we can all pause (not you chef) and reflect on the fact that market share,
the bottom line, and deadlines are only a part of our lives. This next week
take a moment to appreciate a good beer and a sit down meal with a friend. It
will do you both good.
It has been drawn to my attention that
there is a regional slant that seems to be developing. If this is happening
please don’t hesitate to let me know. Should you have a story with a hook so
big it has been banned by Green Peace for whale fishing please let me know
about it.
Looking for my tasting notes….
Cheers!
Peter LaFrance
Publisher
================================
=================================
NEWS & VIEWS:
=================================
GERMAN BREWING INDUSTRY SHAKEOUT IS A RADLER
First, Belgian Interbrew bought Beck's and Diebels. Then Heineken acquired
nearly 50 percent of the Bayerische Brau Holding brewery. To some it looks like
the major German breweries will become little more than distribution channels
for the global brands of Carlsberg, Interbrew and Anheuser-Busch as one major
brewery after the other falls into foreign ownership.
On the bright side, regional and local brewers are not very attractive to
international groups, and some of these breweries hope that mergers will end
the price war, which threatened to put them out of business.
Caught in the middle, the family-owned independent breweries do not fit into
the lucrative local niche of the brewpubs, and lack the marketing and
distribution networks of the national breweries.
And finally, German breweries have reacted to declining beer
consumption by introducing new products, such as Radler (beer mixed with
lemonade) or beer mixed with coke. The German brewery association says these
products have helped bring younger people back to beer.
(Once again, in another part of the world, the popularity of
the brewpub is noted, and the introduction of non-beer beers muddies the
market. It will be interesting to see how the German situation mirrors the
state of affairs in the United States. – Peter LaFrance)
----------------------------------------------------------------------
WINE SHIPMENT BAN RULED UNCONSTITUTIONAL – Setting the
Stage?
U.S. District Judge Richard M. Berman ruled last Tuesday
that a law banning out-of-state wineries from directly shipping their products
to New York consumers is unconstitutional. The New York law, similar to laws in
29 other states, requires that imported liquors be distributed only through
licensed wholesalers and retailers to ensure accountability and responsibility
and those taxes are paid.
Berman found the state law to be discriminatory since New
York allows in-state wineries to ship directly to New York consumers.
"That the New York direct shipping ban on out-of-state wine burdens
interstate commerce and is discriminatory on its face is clear from the very
wording, let alone the impact of the exemptions favoring in-state
wineries," he said.
He rejected arguments that out-of-state wineries could
easily get a license in New York to distribute as either a wholesaler or a winery.
The judge said it would be unreasonable to require an out-of-state winery to
become a resident in order to compete on equal terms.
Berman wrote that the "important goals of temperance and prohibiting the sale of wine to minors can be addressed in a nondiscriminatory manner for out-of-state as well as for in-state wineries which are currently able to sell their products over the Internet and to ship directly to homes in New York state."
The case was brought by Swedenburg Estate Vineyards in
Middleburg, VA.
Clint Bolick, vice president for the Washington-based
Institute of Justice, which argued the case on behalf of Swedenburg, said it
was likely the U.S. Supreme Court would ultimately have to decide, since two
federal appeals courts — in Chicago and Atlanta — have reached opposite
conclusions on the issue and several other cases are winding their way through
the courts.
(Although there are a number of groups shipping beer via
non-bonded means, I think it important to keep an eye on this case. – Peter
LaFrance)
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BRITISH PUBS TO STAY OPEN LONGER AS BRITAIN SEEKS TO CURB
BINGE-DRINKING
The British government hopes a proposed extension of the
hours pubs can open - part of its crackdown on petty crime and anti-social
behavior - will curb binge-drinking and end the noise and brawls that now spill
onto many streets at 11 p.m., the current closing time every day but Sunday.
``It's just more personal freedom,'' said Kieran Brogan, 23,
sipping a lunchtime beer at a central London pub. The current closing time, he
said ``forces people to cram in drinks.''
Britons frequently complain about boorish behavior on the
streets, trains and buses shortly after 11 p.m. and the mess on the streets the
morning after.
The Department for Culture, Media and Sport said the
Licensing Bill, which could be in effect by next summer, would transfer the
power to grant licenses to serve alcohol from local magistrates to town and
city councils, which would hear any objections from residents. The councils
would be free to allow pubs and bars to open for whatever hours the local
lawmakers thought appropriate. This is the way licenses are granted in Scotland
where there are no set licensing hours. The new law would apply in England and
Wales where, under current law, the maximum opening hours are 11 a.m. to 11
p.m. on Monday through Saturday. Last call is 10:30 p.m. on Sunday.
The department said the idea is to give those who live near
pubs a greater say in opening hours, and to empower police to shut pubs for 24
hours if there are problems with noise or disorder.
Compiled from Associated Press reports
(It is interesting to note that Britain and
the U.S. take different approaches to solving the problem of binge drinking.
While state and federal agencies in the U.S. adopt tighter regulation the
British approach is deregulation. – Deven Black)
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TEACH A FRIEND TO HOMEBREW DAY BREAKS RECORD
Another record is broken for the 4th Annual Teach a Friend
to Homebrew Day. Homebrewers at a record 124 sites around the world spread
their love for homebrewing by hosting homebrewing parties on Saturday, November
2, 2002.
The American Homebrewers Association (AHA), Teach a Friend
to Homebrew Day is an international effort to introduce people to the
homebrewing hobby and establish relationships with local homebrew supply shops.
Each year on the first Saturday in November homebrewers around the world are
encouraged to invite friends over and introduce them to the hobby by having
them help brew a batch of beer.
Homebrewers registered their event/site on www.beertown.org,
helping the AHA keep a running tally. After the event, homebrewers reported on
the web site the number of attendees and new homebrewers introduced to the
hobby.
This year saw a 63 percent increase from 2001ís registered
Teach a Friend to Homebrew sites. The
AHA estimates more than 450 new homebrewers were introduced to the homebrewing
hobby and more than 1,000 total homebrewers participated. This is an increase
of about 400 from last year's event.
The dramatic increase in the number of participants in Teach
a Friend to Homebrew Day clearly demonstrates the enthusiasm and dedication
today's homebrewers have for their hobby, says Gary Glass, the event
coordinator for the AHA. It is inspiring to know that homebrewers around the
world are willing to take the time to educate their friends and families about
the joys of homebrewing.
One site boasted an attendance of 75 at their Teach a Friend
to Homebrew Day celebration with a record 60 new brewers in attendance.
Visit this link for details:
http://www.beertown.org/AHA/teachbrew/teachday.htm
--------------------------------------------------
BELGIANS LEAD PUSH FOR REGIME CHANGE IN
AMERICA
Spurred by reports of an aggressive military build-up and failure to reign in
corporate terrorists, the government of Belgium is pressing for a preemptive
strike against the regime of George W. Bush.
"We cannot sit idly by and drink delicious beers while the United States
government engages in a policy of harassment," Belgian Prime Minister, Guy
Verhofstadt, said in a nationally televised address to the Belgian people.
"Now is the time for action. We cannot waffle."
Recent reports from Belgian intelligence sources indicate that the United
States is now in possession of weapons of mass destruction - chemical,
biological and nuclear.
"We know that the United States has nuclear weapons and that they have
actually used them in the past," intoned the Prime Minister. "There
is no reason to think they will not use them in the future." Verhofstadt
is insisting that United Nations weapon inspectors be given "unfettered
access to the massive stockpiles" of weapons, and that they be destroyed
immediately.
"We stand at the crossroads," pleaded Verhofstadt. "Either the
United States agrees to our demands, or we will be forced to put down our
delicious beers and lead the way for permanent regime change.
Remember, my dear Walloons, the current clique in Washington was elected in
direct contravention of the will of the American people. Regime change will be
welcomed by their citizens."
Reaction to the speech throughout Europe was swift. "We stand with our
Belgian brothers," offered French President Jacques Chirac. "France
is willing to commit thirty-five troops and many cases of fine champagne to the
cause. We cannot stand on the sidelines enjoying our delicious baguettes while our
comrades from Antwerp go it alone. Let me assure the dear Prime Minister;
France is with you, almost."
Russian President Vladimir Putin did not mince any words. "Again, it is
the powerful Belgians who must lead the world against aggression and American
hegemony. Russia stands with her European allies and insists that the United
States disarm unilaterally. I only wish we too had
delicious foods."
Following the speech, the mood at the White House was one of defiance.
"Let the Belgians make their empty threats," said White House
spokesman Ari Fleischer. "We are urging Anheuser-Busch, Coors, and the
folks who make Sam Adams to increase their yummy output by two-hundred percent
in the coming weeks. We intend to breakup the evil-doing Belgian beer cartel
once and for all."
Vice President Dick Cheney was even more bellicose. Speaking directly
underneath Karl Rove from an undisclosed underground bunker, the Vice President
warned of dire consequences should Belgium make a preemptive strike. "We
are prepared to strike back with alarming force," said Cheney. "The
Belgians cannot bully us. They may be the world's only superpower, but we here
in America have God on our side. To hell with their delicious beers."
Verhofstadt, while unyielding in tone and substance, did offer the Americans a
plausible way out. "I call upon George W. Bush to capture Sheik Kenneth
Lay, Imam Dennis Kozlowski, and the entire Worldcom terrorist organization, and
to hand them over to an international tribunal. The United States can no longer
harbor agents of terrorism. You are either with us or against us."
Back in Washington, the Joint Chiefs of Staff and National Security Advisor
Condaleeza Rice were trying eagerly to persuade President Bush that there was
indeed a country named Belgium.
Apologies to Phil Lebovits
(His piece featured Belgian Chocolates.)
============================
SPECIAL REPORT:
BAA CONFERENCE IN SEATTLE: Questions and Challenges About
the Future of Small Breweries
By Alan
Moen
Some 175 members of the brewing industry gathered in Seattle
for the 61st annual Brewer’s Association of America Conference on
November 8-12, 2002. It was a fitting
location, honoring the 20th anniversary of the craft brewing
revolution in the Pacific Northwest in the place where it began. But as
speakers and attendees mingled, some unresolved issues emerged about the future
direction of small craft brewers.
After welcoming remarks by BAA chair Kim Jordan of the New
Belgium Brewing Co., association president Daniel Bradford opened the
conference with an address that challenged what he called the “myths of the
microbrewing industry.” Bradford remarked that craft brewing still has
substantial growth after 25 years. He also attempted to counter the “widespread
misconception” that the success of small brewers has led today’s consumer to go
for imports instead of craft beers.
Disputing the supposed vulnerability of the craft brewing
segment, Bradford further noted that the beer industry as a whole has now shifted
into just two tiers, large and small. “We have to take our place at the table
with the big breweries,” he said.
Marc Sorini, BAA legal counsel, followed with a review of
beverage legislation nationwide that has affected the industry during the past
year. He mentioned improvements in direct shipping laws and franchise laws in
many states. An ATF ruling on the legality of health statements on beer labels
is still pending, and a strong movement to increase beer taxes on the state
level is unfortunately gaining momentum.
Beer and politics was the focus of the next lecture by Craig
Purser, vice president of the National Beer Wholesalers Association. Purser
said that the Republican triumph in mid-term national elections is generally
positive for the beer business. But because of the narrowness of their victory,
he felt that the GOP will need to appear moderate, and strive for
non-controversial decisions in most alcohol issues.
The first luncheon speaker at the conference was Howard
Schultz, chairman and chief global strategist for Starbucks. Even though he had
to restrict his remarks due to an untimely case of food poisoning, Schultz gave
dynamic account of his business growth and fundamental philosophy of success.
“You can’t succeed if you’re being known as a company without a heart,” he
said. “There’s a fragile balance of making a profit and being beneficial to
society.”
Other first day speakers included Michele Schmal, vice
president of client development of the NPD Food Group, who discussed craft beer
opportunities in the restaurant industry. Schmal spoke of a return to
"family values" in dining out. As a result, she said that the best
chance for small brewers to increase business now was in the “casual dining”
segment, where 55 percent of the businesses are independents. Surprisingly,
Schmal left any discussion of beer sales in fine dining establishments out of
the picture.
Wholesaler and retailer relationships were the focus of the
second day. With Pyramid Breweries president Martin Kelly as moderator, a panel
discussion on working with wholesalers started things off. The panel consisted
of Chris Caffrey, president of I.H. Caffrey Distributing Co., Tom Potter of
Brooklyn Brewing Co./Craft Brewers Guild and Ron Fowler, CEO of Liquid
Investments. Asked if the current small brewer-wholesaler relationship was
generally a “zero-sum game”, Potter disagreed. “The industry leaders aren’t
growing the market,” he said. Questioned about the role of malternatives,
distributor Caffrey was “happy to have them”, while Potter found them a
“distraction that didn’t “present beer in the most profitable light. If that’s
what the future is, I’m not optimistic.”
To the key question of what distributors should expect from
suppliers, answers from the panel were also mixed. Cafffrey felt that many
small brewers had unrealistic expectations of distributors, demanding “full
support.”
A second panel on “making a difference” with chain retailers
was led by Boston Beer Co. founder Jim Koch. Panelists were Ed Cook, wine and
beer marketing manager of Harris Teeter stores, and Joe Miglino, wine director
and buyer of Larry’s Markets. Miglino’s advice to craft brewers was “give me a
reason to sell your product.” Cook said that supporting the brand in the
marketplace is the best strategy for small brewers.
A following presentation by Steve Cahillane of Labatt USA on
“Interbrew in the United States” drew mixed reviews. Hearing his success story of the “world’s largest local brewer”
without reference to some of its competition-bashing tactics (such as buying
off-premise shelf space in Quebec) was offensive to some in the audience,
including Andre Dion and Laurent-Xavier Gilbert of Unibroue.
Later venerable industry analyst Robert Weinberg presented
his usual armada of statistics showing the growth of craft brewers and the
brewing industry in general since 1947. “Only 11 of the top brewers in ’47 were
still in business in 2001,” he pointed out. Weinberg was generally bullish on
the growth of regional craft brewers, however. He charmed the audience by
recalling his days with mega-breweries, the turning point of which, he noted,
“was when I learned to say 'fascinating' instead of 'bullshit.'”
Most brewers seemed pleased at the range of subjects
discussed at the conference, which ended with an awards banquet aboard the
Royal Argosy Cruise Ship in Seattle’s scenic harbor. “This is what we need to
talk about,” said Gary Fish, president of the Deschutes Brewery of Bend, OR.
“Gone are the ‘go go’ days of craft brewing. We didn’t have to sell beer then.
They came to us to buy it.” But Bob Sullivan of Boulevard Brewing Co., Kansas
City, MO, who also received an award from the BAA for his marketing efforts,
was uncomfortable with some of the big industry views expressed about how small
brewers should perform. “We didn’t get here by following their model,” he said.
--------------------------------------------------
LOOKING THE GIFT HORSE IN THE MOUTH
by Chris Halleron
There are several aspects of the job that make bartending a rewarding profession. Subsequent to the tips and free after-hours boozing (and well ahead of dealing with belligerent drunks and cleaning up occasional vomit), the oodles of free swag handed out by benevolent beer and liquor marketers ranks high as one of major bennies. In fact, it nearly compensates for the lack of medical coverage, paid vacation and 401K Plan.
Nevertheless, leave it to me, a bartender who complains to
his patrons about HIS bad day, to bitch about getting free stuff. While this
may sound like a slap-in-the-face from some thankless prick, it's actually a
service to beer and liquor marketers insuring their promotional efforts (and
more importantly, BUDGETS) aren't wasted on useless rubbish that will leave
bartenders thinking, "Gee, thanks--now just what the $*@% am I gonna do
with THAT?!?!"
When you're trying to butter up bartenders the most
important thing to keep in mind is PRACTICALITY. Give them something they can
use, something that will last, and something they will appreciate.
One thing vitally important to a bartender is his or her
bottle opener. Like a chef's knives or mechanic's tools, bartenders are
fiercely protective of them. I saw one bartender actually wrestle with another
because she picked up his bottle opener. The next night he had it tethered to his
apron with climbing-strength, military issue nylon rope. These tools are so
important simply because a good bottle opener is extremely hard to find. While
promoters flood bars with scads of branded bottle openers they neglect to see
if the damned things can even open a bottle. I don't want to name names, but a
promoter who represented--let's just say--a well-known Jamaican lager delivered
unto the bar a bag of openers for use by the bar staff on a reggae theme night.
After struggling to pop the top off about three of the grenade shaped bottles I
tossed the opener and the rest of the bag into the garbage and went looking for
my ol' reliable. I hated to waste the guy's money like that, but we couldn't
use the openers and the promoter was wasting our time.
Something that will last is equally important when giving
stuff to bartenders since you want to maximize the exposure you get from the
promotional item you give. One of the worst calls I ever saw was by reps
from--let's just say--a well-known Dublin-based stout brewer who came by the
bar on St. Patrick's Day with lovely white golf shirts for the staff to wear
that day. These were particularly gorgeous, and I was exceedingly grateful,
until I realized I was about to work the messiest shift of the year and that
shirt was as good as gone. By the end of the night it was covered with the beer
it advertised and ended up in the garbage with those cheesy green plastic
bowlers and "Kiss Me I'm Irish" buttons that the Italian guys threw
away after they realized they weren't getting any. I felt really bad about that
one, but the shirt was beyond salvation. Thankfully, the reps grew wise and
came in the next year with black golf shirts. That was three years ago and I
still wear it to work today.
Something bartenders will appreciate is a little harder to
find since different bartenders have different tastes. Despite what you're
reading, I'm fairly easy to please. T-shirts are a great little token of
appreciation, but even they really need to be decent quality or they end up
going to goodwill. I work in a town with a lot of bars and a lot of homeless
people (it’s a coincidence!), and it's interesting to see how many of the folks
end up in ill-fitting beer promo t-shirts. I know it's a harsh reality to spell
out, but I'm sure you don't want your marketing dollars promoting that image.
The most important thing to do is to make sure the t-shirts are appropriate for
the audience you’re targeting. A couple of months ago a rep from--let's just
say--a well-known Puerto Rican rum marketer dropped off these men's size XL
t-shirts with yellow neck and arm bands. The trouble was the neckline was a
loose, almost scoop-neck fit. I looked like a gay
pirate in the thing, and it went right into the goodwill bag--along with my Zima "Zomething Different" t-shirt and free Coors Light Cincinnati Bengals jersey.
There ARE a few things I do appreciate, despite how it
appears here. For instance, I'd like to thank a St. Louis-based lager brewer, a
Manchester, England-based/Belgian-owned brewer and the previously mentioned
Dublin-based stout brewer for hooking me up with some fantastic jackets. The
key to any bartender's heart and a ticket to his or her share of mind is a
nice, higher-end token of appreciation—like a sweatshirt, pullover or jacket. If
you have an account that goes through an outstanding volume of your product why
not reward the person who's serving it with something a little out of the
ordinary. They may be likely to remember it when an indecisive patron needs a
hand selecting a beverage.
I hope this little window into the thoughts of us seemingly
ungrateful bar folk are insightful and constructive. My simple purpose is drop
a few helpful hints to let marketers know what I like and don't like so that
promotional budgets may be properly aimed at the their goal--making ME happy.
If anyone wants to thank me for my blunt candor with a
functional bottle opener, a well-fitting t-shirt or a lovely pullover, feel
free to contact me at c_halleron@yahoo.com for
sizes and address. Or maybe you want to email me and tell me I'm a misguided
ingrate--whatever floats your boat. Either way, I'm just telling you how I see
it "From Behind the Bar."
=============================================
LETTERS TO THE PUBLISHER
=============================================
From: Lew Bryson [beerfly@prodigy.net]
Sent: Wednesday, November 13, 2002 10:18 AM
To: Peter LaFrance
Subject: Plastic beer
Peter,
Beer in plastic has a long way to go before becoming
universal, and I hope
it doesn't happen. Beer is already available in three
extremely recyclable
containers (glass, aluminum cans, and kegs, which have a 35
YEAR service
life); plastic is not as recyclable. Plastic also presents
problems on the
bottling line, where brewers have had problems attaining the
kinds of filler
speeds that they can with glass and cans. Plastic doesn't
keep a beer cold
like glass does. Plastic may not shatter or puncture as
easily as bottles or
cans, but plastic is problematic in disposal.
I don't like plastic packaging. Guess it shows.
Lew Bryson
======
============================
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NEW PRODUCTS - PROMOTIONS – EVENTS – DINNERS:
Oskar Blues Brewery, located outside Boulder, Colorado, has
just released Dale’s Pale Ale, the nation’s first full-flavored, canned pale
ale and Colorado’s first canned craft beer.
“We like pushing the envelope and stretching the
boundaries,” says Dale Katechis, founder of Oskar Blues and namesake for his
company’s precedent-setting beer. “We like hearing something can’t or shouldn’t
be done and then doing it. That’s what craft brewing is supposed to be about.”
Dale’s is a richly hopped ale that stretches the style
guidelines for pale ales. Brewed with hefty amounts of European malts and four
strains of American hops (added in a 90-minute boil), it weighs in 6.5% ABV.
Canning eliminates the risk of light damage and oxidation,
and a glass polymer lining in the cans ensures the beer never contacts metal.
Cans are easier to recycle than bottles and are considered more environmentally
friendly. Dale’s Pale Ale cans are shipped under constant refrigeration, a
quality control practice used by no other microbrewery in America.
Can sixpacks of Dale’s Pale Ale are now appearing in stores
in the Boulder/Denver area and along Colorado’s Front Range of the Rocky
Mountains.
=====================================================================
=====================================================================
=====================================================================
NOVEMBER
22-23 – 10th The Great Canadian Beer Festival, Victoria,
British Columbia, Phone contact: 250-383-2332,
Web contact: www.gcbf.com
DECEMBER
6 – FARMHOUSE WINTER WARMER DINNER, Emmaus, PA, Phone
contact: Chris Adams 610-967-6225
6-7 – Harpoon Christmas Party, Boston, MA, Phone contact:
617-574-9551 ext 3, Web contact: www.harpoonbrewery.com
7 – Holiday Craft Beer Festival, Durham , NC, Contact Phone: 919-484-1128
Contact Email: beerhntr@verizon.net
14-15 – 7th Annual Kerstbierfestival (Christmas Beer
Festival), Essen, Belgium, Web contact: http://home2.pi.be/gmarch/eng/kerst_eng.htm
14 – Brewmaster's Festival, Taos Ski Valley, Taos, NM
2003
JANUARY
17-18 - 9th
Annual Great Alaska Beer and Barleywine Festival, Anchorage, AK, Phone
contact: 907-562-9911
Annie Chavez, Web contact: showpros@gci.net
31 – February 2 – Miami Beach World of Beer Festival: Miami Beach, FL, Phone
contact 305-754-5886 Web contact: info@worldofbeerfestival.com
#####
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