We present a simple method to convert a Gaussian laser beam into an annular beam using a homeotropically oriented nematic liquid crystal. The method allows creation of a beam with sub-millimeter diameter and a width of a few tens of microns for a propagation distance of more than 10 mm. High spatial gradients in the radial intensity distribution make the beams promising for use in atom trapping and guiding. (C) 2004 Elsevier B.V. All rights reserved.