VB ‘now more Queensland than XXXX’ – CUB puts grain growers back in the driver’s seat

What’s more Queensland than a slab of XXXX beer? It may sound like the punchline of an Irish joke if you answered ‘VB’, but you’d be far from punch-drunk.

Farmer Andrew Ostwald, left, with PURE Grain Network chief executive Stuart Tighe.

What’s more Queensland than a slab of XXXX beer? It may sound like the punchline of an Irish joke if you answered “VB”, but you’d be far from punch-drunk.

Carlton & United Breweries believes its beer named, after the southern state, is now more Queensland than rival Lion’s XXXX, with it producing the beverage for a “hard-earned first” on the Gold Coast with barley sourced from farmers south of the Tweed River.

This strategy bypasses bulk grain handlers, putting extra money in farmers’ pockets, while CUB head brewer Jaideep Chandrasekharan says it gives the company greater oversight of its supply chain, delivering more consistency of taste.

It sounds more like a masterclass for viticulture, where “terroir” and other environmental factors can affect the wine swirling in your glass. But Mr Chandrasekharan is serious about how CUB’s direct sourcing strategy can help lift the profile of Australian barley.

Japanese beverage giant Asahi bought CUB for $16bn last year and is watching closely how its newly acquired brewer is working directly with farmers to produce its household-name drops.

And it couldn’t come at a better time. As Tokyo was finalising its purchase of CUB, Beijing was stepping up its attack on Australian soft commodities, unleashing a ban on Australian-grown barley.

China’s decision has resulted in a shift in the global barley trade, with Canadian barley normally destined for Japan now going to China, creating an opportunity for Australian grain growers.

“Now with the global barley market shifting … what that means is it has put a lot of pressure on Canadian barley, which was where Japan was buying a lot of barley. So I think there’s certainly an opportunity for Australia to supply more barley to Japan,” Mr Chandrasekharan said,

“And I think one of the benefits now of Asahi Japan having us as part of their business is obviously our learnings in terms of the barley market here.

“We’re providing that to them with local varieties so it kind of makes sourcing Australian barley for Asahi that much easier.”

CUB began sourcing grain directly from farmers in Victoria’s western district to supply its breweries at Abbotsford and Melbourne’s inner east and Laverton in the city’s west late last year.

It is now employing the same strategy at its Yatala brewery – Australia’s biggest – on the Gold Coast.

This has led to Asahi Beverages buying up to 40,000 tonnes of barley direct from farmers in northern NSW every year to supply the Yatala brewery, which produces a suite of CUB beers including VB, Carlton Draught and Pure Blonde.

But it’s not only Queenslanders enjoying a frothie from locally produced grain. Yatala also services Sydneysiders and NSW.

Seven NSW farmers have joined the program, with more expected to join next year.

Andrew Ostwald – a NSW barley farmer in North Star, about 45km from the Queensland border – says it has put grain growers “back in the driver’s seat”.

“The barley from my property will be used to brew Victoria Bitter that’s enjoyed across Queensland, much of NSW and beyond,” Mr Ostwald said.

“The opportunity to tap into a direct deal with a brewing giant such as Asahi Beverages is an enormous leg-up for Australian barley growers. By simply removing a layer between the grower and the brewer we can then invest the financial gain into the long-term partnership with Asahi.

“We’re now in the unique position to afford and plan upgrades to technology, machinery and people. This deal puts growers back in the driver’s seat, allowing us to do what we do best – grow great barley.”