Brewbound — Craft Beer News, Events & Jobs Startup Brewery Challenge 4: Meet the Judges Register for the Brewbound Session Latest News Attention Startup Brewers: Registration Upcoming Events

Posted by Dien Nguyen on 9:44 AM

We’re less than 48 hours away from Brewbound Session Summer ’15 in Chicago, and it’s time to introduce a quintet of judges for this year’s Startup Brewery Challenge, our bi-annual business pitch competition.

Presented by Craft Brew Alliance, the Startup Brewery Challenge gives U.S. craft breweries who have been on the market for less than two years a chance to show off their business plans, sample one core product offering and receive immediate feedback from our panel of expert judges.

During Thursday afternoon’s competition, which is scheduled to begin at 1:15 p.m., our industry veteran judges will evaluate Startup Brewery Challenge finalists and critique contests on their elevator pitch, branding & packaging, marketplace potential and product quality.

Competing for the chance to become the Widmer “Brother for a Day,” the winning company will receive an all-expenses-paid trip to Portland, Ore. and the opportunity to craft a new collaboration beer with Widmer Brothers Brewing. Winners will also take an extensive tour of the company’s production brewery, participate in Widmer Brothers’ daily taste panel and receive business coaching from CBA executives as well as sales, marketing, graphics, quality assurance and packaging department leaders.

Specialists in brewing, branding, sales and retailing will join the judging panel and include:

, Senior Manager of Emerging Business, CBA

Karmen is the Senior Manager of Emerging Business for Craft Brew Alliance, currently managing CBA’s partnership with former Startup Brewery Challenge winner Appalachian Mountain Brewery. Previously CBA’s Redhook Brand Manager, Karmen led the development of Redhook’s partnership strategy, resulting in a nearly 20% volume shift for the declining 30+ year old beer brand. Karmen has over a decade of experience in CPG Food and Beverage Marketing, specializing in brand strategy and strategic partnerships.

, Brewing Innovation Manager, CBA

Ben grew up as part of the Portland craft beer scene. Born and raised in the Pacific Northwest, he got his start as a brewer when he was 19 at Bridgeport Brewing. After three years, Ben began brewing at Widmer Brothers Brewing, where he has been brewing for the last 19 years; during the last 9 years, Ben’s role has centered on innovation and Widmer Brothers/CBA beer development.

, President, Upland Brewing Company

Doug Dayhoff has led Indiana-based Upland Brewing Company since 2008. During that time, Upland has grown from 2,500 to 17,000 BBLs, built a new production brewing facility, expanded two tasting rooms, and is in the process of constructing a second facility focused on wood fermentation for Upland’s sour ale program. He has a degree in philosophy from Indiana University and an MBA from Dartmouth College.

, Founder, Good Beer Hunting

Strategist, writer, and photographer Michael Kiser serves the industry through strategic branding, storytelling, and new product development from his studio in Chicago’s Logan Square neighborhood. He created Good Beer Hunting as a chronicle in craft beer, documenting the stories behind America’s favorite beverages. Most recently he helped unite craft beer and coffee innovation through his ongoing Uppers & Downers event series in collaboration with Intelligentsia Coffee. www.goodbeerhunting.com

, Beer Buyer, Binny’s Beverage Depot

Pat Brophy is responsible for curating one of the most expansive beer selections in Illinois. Founded in 1948 by Harold Binstein, Binny’s sells more than 6,000 different beer SKUs across its 31 locations. “If you can’t find it at Binny’s, it’s probably not worth drinking.”

If you haven’t yet registered for Brewbound Session, this is your LAST CHANCE to grab one of the few remaining seats. Sign up TODAY!

Register for the Brewbound Session

Brewbound — Craft Beer News, Events & Jobs Press Clips: BrewDog Selects Ohio; Illinois Raises Production Cap Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:44 AM

Scottish craft beer company BrewDog has unveiled plans to establish a U.S. beachhead, last week announcing that Columbus, Ohio, will become the company’s stateside brewing headquarters. On its blog, BrewDog wrote that it has “provisionally agreed” to acquire 42 acres of land in Columbus and said it intends to build a 100,000 sq. ft. brewery complete with a 100-barrel brewhouse, canning machine and bottling line to serve markets across the U.S. The company also anticipates employing 100 people at the new facility. BrewDog first confirmed its U.S. ambitions in April when it launched its fourth wave of equity crowdfunding. At the time, the company was hoping to raise roughly $3.2 million for a U.S. brewing operation. BrewDog also credited San Diego’s Stone Brewing for suggesting Columbus, a city that had been a finalist in Stone’s own search for a secondary location.

A bill aimed at helping craft brewers grow by raising the production cap imposed on companies that operate multiple retail fronts in Illinois is headed to the governor’s desk, reports the Chicago Tribune. As passed by the House and Senate, HB 3237 allows for breweries that run as many as three retail operations to produce up 120,000 barrels per year. Under the status quo, brewers that manage additional retail components are limited to producing 30,000 barrels annually. Gov. Bruce Rauner has 60 days to sign, veto, or amend the bill, adds the Tribune.

Boston Beer Co., manufacturers of the iconic Samuel Adams line, has applied for a trademark applicable to beer on the phrase “Boston 2024,” the slogan popularized by the city’s effort to host the Olympic games. The city’s bid to land the 2024 summer games has been highly controversial on a local basis, as large swaths of residents oppose the campaign, but for Boston Beer, it could be a good marketing opportunity. “We were introduced recently to members of the Boston 2024 Committee and had a very preliminary conversation about collaborating on a special beer in the future,” company spokeswoman Jessica Paar told Reuters. “There’s nothing set in stone. It’s just a fun idea we talked about.” It wouldn’t be the first time Boston Beer capitalized on a momentous sporting event in the city. For the past few years, the company has released a beer dubbed “26.2” in celebration of the Boston Marathon.

Coopers Brewery of Australia has been licensed to brew and distribute Brooklyn Brewery’s Brooklyn Lager on the island continent. Per Australian Brew News, the partnership will better establish Brooklyn’s presence in Australia and is actually a continuation of an old relationship.“We actually used to sell Coopers beers here in New York from 1991 until 2003 when we sold our distribution arm, so we knew their beers well,” Brooklyn CEO Eric Ottaway told the website. “As we looked at how we could better supply the Australian beer market, conversations turned to the opportunity to work together.”

Brewbound — Craft Beer News, Events & Jobs Brewbound Session: Drizly Hopes to Change Consumer Purchasing Behavior (Video) Latest News Attention Startup Brewers: Registration Upcoming Events

Posted by Dien Nguyen on 9:44 AM

Drizly isn’t here to disrupt the three-tier system. Rather, as Cory Rellas, the COO of the booze-to-your door delivery app tells it, the company operates in the name of “accelerating the status quo.”

Drizly works like this: a legal drinking age consumer pulls up the app on their smartphone or computer, places an order for alcohol, and one of the company’s retail partners delivers it directly.

“We don’t touch money and we don’t touch alcohol, so at the end of the day we can say we’re not part of the alcohol industry,” said Rellas during a talk at the Brewbound Session in Chicago last week. “We don’t take a percentage of sales. It’s all about not being a part of that transaction.”

Instead, Drizly aims to add value to the space by propagating mobile e-commerce, a digital marketplace that has become entrenched in other industries but has yet to take root in the alcohol category, according to Rellas. It’s a simple enough model, though Rellas sees it adding tremendous value to all three tiers of the industry.

For retailers, Rellas told the Brewbound Session audience of nearly 200 that the proposition is an easy one.

“We’re bringing incremental profit, incremental consumers of a kind they wouldn’t get in the store,” he said. “The mix of product selection due to who we’re attracting, the average order size is three to four times higher – these are profitable consumers that any store would want to have.”

Rellas added that distributors could take solace in the fact that the company seeks to open up a new lane to the consumer.

“We’re three-tier compliant,” he said. “You’re in a $100 billion off-premise alcohol industry and only 1 percent of that, maybe 2 percent is e-commerce related. I’d like to think that’s going to 10 to 12 percent.”

For suppliers, Drizly presents many opportunitie “One, we know a lot about our consumers,” he said. “For the first time, you can control how your product is merchandised on a digital shelf. For the first time, you have the ability to influence the consumer at the point of sale in a three-tier compliant way.”

To date, he said the company has been most simpatico with craft brands on the beer side because they launch in new markets similarly.

“We are fighting to establish capacity, distribution and consumer awareness in a way that makes sense for all parties involved,” he said.

He did add, however, that it could make sense for Drizly to eventually partner with the likes of a Anheuser-Busch InBev or a MillerCoors-type supplier on future consumer engagement initiatives.

Drizly is currently only available in 17 cities, works with nearly 200 retail partners and is boasting around 30,000 downloads a month, according to Rellas.

Looking ahead, he said the company plans to build out “the largest and most sophisticated” retail partner network of any e-commerce booze delivery service, continue to improve the app’s technological function to make delivery “efficient, reliable, and profitable,” and drive consumer awareness through marketing.

To that end, Rellas noted that there has been a shift from physical to digital advertising, with some of the heavy hitters in the beer industry allocating more and more of their resources to developing a digital platform.

That nexus between a digital shift in attitude and open roads ahead leaves Rellas optimistic about the future of e-commerce as it relates to alcohol.

“I don’t know exactly where that can take us, but I can tell you I’m optimistic it’s big enough to continue trudging along.”

Video of Rellas’ talk can be played above. Complete video playback from every Brewbound Session Chicago presentation can be found on the Brewbound Youtube channel in the coming days.

Brewbound — Craft Beer News, Events & Jobs Oskar Blues Taps West Virginia & Arkansas Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:44 AM

With an expansion to its North Carolina brewing facility underway, Oskar Blues is continuing to grow its footprint throughout the eastern half of the U.S. The company, which just last week revealed plans to increase production capacity at its Brevard outpost, has announced plans to add distribution in West Virginia and Arkansas.

For coverage throughout Arkansas, the Longmont, Colo.-based company has signed a wholesale agreement with Arkansas Craft Alliance, a network of four distributors including Arkansas Craft Distributors, Three Rivers Distributing, Three Lakes Distributing, and White River Beverage. In West Virginia, Oskar Blues has partnered with Proud Eagle Inc., a collection of four Anheuser-Busch InBev wholesalers including Proud Eagle, Northern Eagle, Mountain Eagle, and Mountain State Beverage.

As Brewbound reported last week, in its first two years of operation, Oskar Blues produced 110,000 barrels at its North Carolina brewery alone.

Exact launch dates are still being finalized, the company said in a statement, but West Virginia and Arkansas would bring the number of states where Oskar Blues beer is sold to 44. Its beers are also sold in Washington, D.C. The brewery said it plans to add two more states in 2015 as well as additional international markets.

Oskar Blues, the 24th largest craft brewery in the nation by volume, produced 149,000 barrels total in 2014, up 25 percent over 2013.

Brewbound — Craft Beer News, Events & Jobs Press Clips: BrewDog Selects Ohio; Illinois Raises Production Cap Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:44 AM

Brewbound — Craft Beer News, Events & Jobs Craft Brewers, Guild Leaders Meet with Lawmakers on Capitol Hill Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:44 AM

More than 150 craft brewery owners and state brewers guild leaders descended on Capitol Hill last Thursday to meet with lawmakers and discuss legislative reform, most notably a bipartisan bill that aims to slash the federal excise tax rate imposed on every barrel of beer produced in the country.

The “hill climbers” had over 300 individual meetings with members of Congress and their staffers, according to Bob Pease, CEO of the Brewers Association, which organized the lobbying effort in conjunction with the SAVOR beer and food festival. More than half of those were “member level” meetings, held between participants and their own representatives and senators, said Pease.

Steve Crandall, founder and owner of Devils Backbone Brewing in Roseland, Va. said he met with Rep. Robert Hurt (R-VA) to help secure his support of the Small Brewer Reinvestment and Expanding Workforce Act (Small BREW Act), the abovementioned tax bill.

“He was on board. Basically, what I told him was this is a jobs bill,” Crandall told Brewbound. “I said, ‘Certainly it gives us some relief, some tax relief on what we’re paying on barrelage. But ultimately, American craft breweries are going to use that money to invest in infrastructure and hire more people.’”

The Small BREW Act, which is supported by the BA, seeks to cut the federal excise tax rate on a brewery’s first 60,000 barrels from $7 to $3.50. The bill would also reduce the rate on production between 60,001 and 2 million barrels to $16 from $18. As written, once a brewery surpasses the 2 million barrel benchmark, the tax would not change from its current $18 per barrel rate. Brewers producing 6 million barrels or less would qualify for the lower rates.

Lawmakers do have a competing bill to mull over, however. The Beer Institute-backed Fair Brewers Excise and Economic Relief Act (Fair BEER Act) promotes even deeper cuts and extends them to all domestic and international beer companies, regardless of size.

With the craft industry well represented in D.C. this past week, both for the Hill Climb and for SAVOR, Crandall said he did see ads for the Fair BEER Act both on television and in the Washington Post. Brewbound reached out to the Post and the BI for further comment and to confirm the existence of the ads, but both organizations were unavailable as of press time.

Crandall made clear though that while he supports the Small BREW Act, he doesn’t oppose the Fair BEER Act, saying the passage of either bill would be a net positive for the industry.

“Also, we told [Rep. Hurt], ‘You know what, we don’t mind if you sign both bills,’” added Crandall. “We don’t oppose the Fair BEER Act. We just think the Fair BEER Act is the bigger challenge.”

Rick Chapman, founder of San Diego’s Coronado Brewing, echoed that sentiment.

“We tell everybody, if you can’t make a choice, do them both. It’s going to help us all out eventually,” said Chapman. “If you just push together forward we’ll get relief down the road.”

A BA memo that detailed the legislative talking points for the visit was sent to hill climbers prior to the visit and encouraged brewers to invite lawmakers to join the Small Brewers Caucuses of both the House and Senate. Additionally, the BA sought to encourage legislative support for the Craft Beverage Bond Simplification Act of 2015, which would “significantly reduce the regulatory and paperwork burden” faced by brewers by removing bonding requirements and necessitating less frequent tax filings.

The meetings came on the heels of the Senate unanimously passing a symbolic resolution late Sunday in praise of the jobs and wages created by the craft brewing industry.

Schell’s Starkeller Peach

Posted by Dien Nguyen on 12:23 AM

– “Peach schnapps. Babes love it.”

Peach is one of those flavors we sometimes associate with sticky sweet things like wine coolers and the aforementioned schnapps. This, my friends, is not cut from that mold. As described, Starkeller peach is hazy, golden and full of peach aroma. You’ll find no candy-sticky-sweetness here. Instead you’ll probably catch the traditional Berliner Weisse tartness with just a bit of sweetness and… get this… peach. Seek this one out!

“It’s a beauty Clark.” Nice work @schellsbeer.

A photo posted by MNBeer.com (Ryan) (@mnbeer) on Jun 15, 2015 at 4:37pm PDT

Brewbound — Craft Beer News, Events & Jobs TTB Label “Dictator” Retires Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:44 AM

Kent Battle Martin has been called many things throughout his time as the Alcohol and Tobacco Tax and Trade Bureau’s Malt Beverage Labeling Specialist.

A 2014 Daily Beast profile described Battle as the “beer bottle dictator,” characterizing him as the “tyrant,” and “pedantic pain in the ass” that has approved every beer label design in the U.S. for the better part of a decade.

Indeed, since joining TTB in October 2004, Battle has single-handedly reviewed every malt beverage label application ever submitted. But on May 28, that came to an end.

The TTB has formally announced Battle’s retirement from the U.S. Treasury, which is tasked with monitoring and enforcing compliance for the expansive beverage alcoholic category.

“Battle’s departure marks the end of an era at TTB,” a statement read.

The end of an era indeed — Battle processed over 60,000 malt beverage labels in 2013 and 2014 alone. Since just last October, he had already reviewed over 25,000 labels.

A polarizing figure in craft beer circles, most brewers had somewhat of a love/hate relationship with the man. In the Daily Beast piece, Scott Newman-Bale, a partner at Michigan’s Shorts Brewing, was quoted as saying “I’ve never seen anyone working as hard as him.”

His reputation for being an eccentric and, at times, awkward figure at the controls of a multi-billion dollar industry has practically taken on a life of its own. He was known for approving labels in the middle of the night and rejecting labels for including nuanced design elements like googly eyes on a Santa or a hamburger, which, according to Battle, implied there were meat additives in the beer.

At trade shows, brewers have routinely traded whispers about their run-ins with the label czar, and how he could make or break the production of a beer with the single stroke of a pen.

But don’t tell TTB copywriters that.

“He was also a very popular person at many beer industry conferences and trade shows over the years, providing advice, presenting seminars, and even processing people’s malt beverage label applications on the spot,” the release stated.

Also, according to the announcement, Michael Webster will now the lead TTB’s malt beverage labeling efforts.

Brewbound — Craft Beer News, Events & Jobs The Last Call: Kansas City Brewery Beats A-B in Trademark Race Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:44 AM

Five days after airing its now infamous Super Bowl ad poking fun at craft brewers, Anheuser-Busch attempted to trademark the phrase upon which the ad was built: “Brewed the Hard Way.” Turns out, as noted by Kaider Law, an intellectual property firm, the beer giant was actually beat to the punch. On February 5 — one day before A-B filed its own trademark — a small brewpub in Kansas City called Martin City Brewing filed a trademark application of its own for its “Hard Way IPA.”

Here’s where it gets a bit tricky. Martin City filed its request as an “actual use” application, citing February 4, 2015 as the date the mark was first used in commerce. A-B, conversely, filed an “intent to use” application, meaning that its desired mark had yet to be used in commerce. From Kaider Law: “This is significant, because trademark rights stem from usage and the first in the market has priority over all second-comers.”

In turn, the U.S. Patent and Trademark Office (USPTO) suspended its examination of A-B’s trademark application on May 13 pending the outcome of Martin City’s application, which was filed first. Now, assuming Martin City’s application is a go, the USPTO will publish the trademark for “opposition.” At that time, A-B could theoretically object and argue why the mark should not be allowed.

New Hampshire Gov. Maggie Hassan vetoed a bill Tuesday that would have allowed for the sale of alcoholic beverage products adorned with labels depicting minors, so long as the imagery didn’t promote underage drinking, reports the Associated Press.

State Rep. Keith Murphy (R-Bedford) – who also runs a tavern in the state – originally sponsored House Bill 122 because he wanted to be able to buy and sell Breakfast Stout, a popular beer from Founders Brewing that features on its label a baby wearing a bib spoon feeding himself.

The bill passed muster in both the House and Senate, but democratic Gov. Hassan said she believed more formal guidance was necessary and vetoed it. Currently, state law prohibits the sale of all alcoholic beverages whose labels make “any reference to minors, pictorial or otherwise.”

In April, Brewbound reported that San Francisco-based private equity firm Friedman Fleischer & Lowe (FFL) was a significant investor in Enjoy Beer LLC, the acquisition-minded craft beer consortium launched by ex-Harpoon founder, Rich Doyle. Now, a new report from Reuters colors in a bit the size of that investment.

According to the article, in its fourth and largest private equity raise, FFL secured $2 billion. Of that, reports Reuters, “about a quarter” has been invested in two unspecified eye care companies and the Enjoy Beer enterprise. With the new fund, FFL plans to invest in companies without “using a lot of debt.”

Mike Stevens, co-founder and CEO of Founders Brewing, and Brett VanderKamp, president of New Holland Brewing, interviewed each other about the state of the craft during a recent meetup hosted by Start Garden, a venture capital firm based in Grand Rapids, Mich. The pair touched on a number of subjects, most notably, M&A activity in the space and whether their respective companies would be buyers. Selected, a few highlights, as gathered by MLive.com:

On the influx of private money in the space:

VanderKamp: “They all say the same thing… They want to come in, own a majority, keep me around and then buy me out, or I buy them out in five to seven years.”

Added Stevens: “I’m a little worried about who owns this industry 10, 20 years from now.”

On whether they’d be interested in buying a craft brewery:

Stevens: “Our compound annual growth rate for the last six years is averaging 72 percent. We’re not even out west yet… why would we want to hit the reset button and have those complications when we’ve got so much in front of us?”

VanderKamp: “It’s definitely something we’ve talked about.”

Illinois lawmakers have passed a bill to repeal a 25-year-old ban on happy hour drink specials and other promotions in the state, reports the Chicago Tribune. Pending Gov. Bruce Rauner’s signature, the bill would allow for vendors to discount alcohol for up to four hours a day and 15 hours a week, provided the promotions are advertised a week in advance. Under the bill, volume specific deals, like two drinks for the price of one, notes the Tribune, would remain banned. “We’re jumping up and down about this,” Aaron Zacharias, managing partner of Fountainhead and Bar on Buena, told the Tribune. “I can’t believe that Illinois lawmakers did something good.”

Brewbound — Craft Beer News, Events & Jobs Gatza: FDA Menu Labeling Requirements Could Impact Craft Sales Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:41 AM

The Brewers Association has issued the following warning to its members regarding pending federal requirements to disclose the caloric value and other health criteria of beer being sold at on-premise chains: “Be ready or lose sales.”

Although the Food and Drug Administration has yet to issue the organization with “formal guidance” on the requisite labeling procedures slated to take effect later this year, the agency has provided a glimpse of what’s to come in a question and answer session with the BA.

The FDA, according to the BA, has indicated that chain restaurants with 20 or more units and “similar retail food establishments” will be subject to the stricter labeling requirements.

– “Restaurant menus and menu boards will include calorie listings for each brand of beer.”

– “FDA will require chain restaurants to have nutrient figures for each beer for total fat, calories from fat, saturated fat, trans fat, cholesterol, sodium, total carbohydrates, dietary fiber, sugar and protein.”

– “Restaurants may use a combination of methods to develop the information, including the USDA Nutrient Database, manufacturer-supplied data, calculations with defensible ideas behind the calculations, laboratory analysis and recipes.”

– “[Draft] beer will be included if listed on a menu. Nutrient values for [draft] beer will not be required if the beer is not on a menu.”

– “Each size pour will require its own listing of all data.”

– “The values for ‘regular beer’ in the USDA Nutrient Database won’t be considered accurate for craft beer and other methods of ascertaining this information will be required.”

Last November, the FDA told Brewbound that the new regulations would not impact craft brewers, clarifying that retailers — not manufacturers — would be responsible for gathering this information. Nonetheless, Paul Gatza, director of the BA, wrote on the organization’s website that brewers doing business in the restaurant channel should be prepared to adhere to the impending changes.

“While the onus rests with the restaurant chains, it is easy to foresee that companies may drop brands that do not have this information readily available,” he wrote. “If you don’t know your nutrient values and do business in chain restaurants now or plan to in the future, now is the time to start gathering your information. Menu development takes months for many chains, and they are moving on this issue already.”

The new guidelines are slated to take effect December 1 of this year.

Brewbound — Craft Beer News, Events & Jobs Preliminary Agenda for Brewbound Session Chicago is Now Available Latest News Attention Startup Brewers: Registration Upcoming Events

Posted by Dien Nguyen on 9:41 AM

The preliminary agenda for Brewbound Session Chicago, which takes place on June 11 at Moonlight Studios in Chicago, is now available.

The full-day business conference, which will kick off with an evening welcome reception at Revolution Brewing’s Kedzie production facility on June 10, will feature a wide array of speakers and topics, including presentations on merger & acquisition activity, the latest retail trends, and inspiring discussions with industry leaders.

View the Agenda >>>

This year’s program is packed with informative presentations from veteran industry experts like IRI Worldwide’s Tenth & Blake’s and First Beverage Group’s .

In addition to hosting conversations with notable beer executives – including Anheuser-Busch InBev’s CEO of Craft, and Oskar Blues founder , among others — Brewbound will also offer numerous structured networking opportunities throughout the day.

Haven’t registered yet? We’re less than 30 days away from Brewbound Session Chicago and a limited number of tickets remain. Don’t miss your chance to join hundreds of beer industry professionals at what is sure to be one our best events yet!

Register Now >>>

Are you producing less than 15,000 barrels of beer annually? A limited number of discounted tickets are available for early-stage craft entrepreneurs. Please contract Jon Landis at jlandis@bevnet.com or (617) 231-8834 for more information.

The Brewbound Session is a full-day business conference addressing the topics that most directly impact the decisions craft brewers are faced with as they look to grow their brands. The event focuses on the business side of craft, offering brewers a unique opportunity to learn from and network with industry leaders.

Brewbound — Craft Beer News, Events & Jobs Gatza: FDA Menu Labeling Requirements Could Impact Craft Sales Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:41 AM

The FDA, according to the BA, has indicated that chain restaurants with 20 or more units and “similar retail food establishments” will be subject to the stricter labeling requirements.

– “Restaurant menus and menu boards will include calorie listings for each brand of beer.”

– “[Draft] beer will be included if listed on a menu. Nutrient values for [draft] beer will not be required if the beer is not on a menu.”

– “Each size pour will require its own listing of all data.”

– “The values for ‘regular beer’ in the USDA Nutrient Database won’t be considered accurate for craft beer and other methods of ascertaining this information will be required.”

The new guidelines are slated to take effect December 1 of this year.

Brewbound — Craft Beer News, Events & Jobs The Last Call: SABMiller Acquires Fast Growing UK Brewery Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:41 AM

SABMiller, the world’s second largest beer company, today announced it has acquired Meantime Brewing, one of the fastest growing craft breweries in the UK. Though specific financial terms of the deal were not disclosed, the acquisition will include all of Meantime’s retail sites — the brewer currently operates a number of bars and taprooms.

In a statement, SABMiller, the South African beer and soft drinks giant and parent to MillerCoors stateside, said it plans to grow Meantime’s sales nationally, while exploring export opportunities in other European markets.

“Meantime has been at the forefront of the modern craft beer movement in the UK and brews an outstanding range of beers across a variety of styles,” said Sue Clark, managing director of SABMiller Europe, in a news release. “This expertise will boost our strategy to develop beers that appeal to more people, including women, and which can be attractive alternatives to wine and spirits.”

Meantime’s sales volume increased 58 percent in 2014, the company said, far outpacing the 1 percent growth exhibited by the UK’s broader beer market.

“We are all excited about the opportunity to continue growing Meantime. We are also thrilled and flattered that SABMiller has given us remit to innovate,” added Nick Miller, Meantime CEO. “The team at SABMiller has stressed how important our culture is to our success to date, and have a strong record in retaining the special identities and heritage of the local businesses they’ve bought in the past decade.”

There are also plans for Meantime to open a pilot brewery to double as the center for SABMiller’s European innovation and product development, according to the news release.

The deal is expected to close in early June, at which time, Meantime will be incorporated into SABMiller Europe’s accounts.

Earlier this year, California’s years-long drought forced the state to impose mandatory water use restrictions, an ominous sign of how severe the problem has become in the state. As such, there have been a lot of questions about how this not only impacts the state’s craft beer industry, but over how much water brewers are using to make beer. To address that, the Public Policy Institute of California recently released a report estimating the “water footprint” of craft brewers in the state.

The report, which is available to read on the California Craft Brewers Association’s website, says craft brewers use an estimated 558 million gallons of water to process 93 million gallons — or 3 million barrels — of finished product. As Brewbound reported earlier this week, California brewers made 3.4 million barrels in 2014.

Together, according to the report, craft brewers use an estimated 651 million gallons of water a year, or enough to supply 1 million people. For perspective, the entire industry’s water usage is equivalent to that of a 640-acre almond orchard, the report said. As astutely noted by Quartz, there are more than 1 million acres of almond orchards in the state.

Florida’s war over the 64 oz. growler is finally over. Yesterday, reports the Tallahassee Democrat, Gov. Rick Scott signed SB 186 into law, legalizing the long banned half-gallon container often cited as the industry standard. Prior to the bill’s passage, 32 and 128 oz. growlers were legal, though the middle size was expressly prohibited. The bill, which lawmakers passed last month, also clarifies a controversial “tourism exemption” that had allowed for brewers to operate in a legal gray area as both producers and retailers.

Brewbound — Craft Beer News, Events & Jobs Jon Poteet of Central States Beverage to Speak at Brew Talks Kansas City Latest News Benefitting Charity: Sign Up for Brew Talks Upcoming Events

Posted by Dien Nguyen on 9:41 AM

Jon Poteet, Central States Beverage Co.

Brewbound is excited to swing by Boulevard Brewing in Kansas City this upcoming Monday, May 18, to host the next installment of Brew Talks, our traveling meetup series for industry professionals.

Today, Brewbound is pleased to announce that Jon Poteet, vice president of marketing at Central States Beverage Co., will offer his unique perspective on things from the middle tier.

Specifically, Poteet will explain how his company, a MillerCoors-aligned distributorship, was able to sell 1 million cases of Boulevard beers throughout the greater Kansas City metropolitan area alone in 2014, the most ever by one of the brewery’s distributors in a single year. To better understand just how much beer that is, that area, which stretches across the borders of Kansas and Missouri, is only about a 10 million case-per-year market.

Poteet will walk through how – since acquiring the brand in 2007 and launching with sales of 497,000 cases – his company was able to grow it so dramatically in such a short span of time. Further, he’ll provide a glimpse into the future, expounding on how he plans to build on the brand’s momentum.

Though Boulevard accounted for roughly a quarter of all Central States case sales in 2014, it isn’t the only brand the company sells. Poteet will also provide insight on how his portfolio is acting in the marketplace, while spotlighting broader craft beer trends he has seen along the way.

Attendees will also have the opportunity to hear from Simon Thorpe, the president of Duvel Moortgat USA, and three of Kansas City’s newest craft brewery startups.

Beer industry professionals are invited to join us in Boulevard’s Muehlebach Suite (2501 Southwest Blvd, Kansas City, MO 64108) at 5:00 p.m. The first panel discussion is scheduled to start promptly at 5:30 p.m.

Since hosting our first event in the basement of a craft beer bar in Boston in 2013, the meetup series has developed into a multi-city tour where beer industry professionals can come together inside of some of the country’s most recognizable craft breweries and share business insights with one another. In less than two years, we’ve hosted 19 meetups, in 15 U.S. cities, and connected with thousands of individuals from all tiers of the industry. The events are also broadcast globally via a free live stream.

Brewbound — Craft Beer News, Events & Jobs Power Hour: Craft’s Proliferation Problem Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:41 AM

99 Bottles of beer on the wall? For craft, it’s actually about 11,727 — and that’s not a great thing.

The bigger number is the total amount of craft brands being sold at bars and restaurants, according to on-premise data supplier GuestMetrics, which tracked those SKUs through the first quarter of 2015. In two years, the number has increased by nearly 50 percent, from 8,027 in the first quarter of 2013.

Exuberant entrepreneurs might look at the number and see the pint glass as half-full. But while a broader selection of beers might be great for the drinker, it’s problematic for brewery owners and publicans alike. Despite the fact that on-premise accounts are stocking more SKUs, they aren’t turning product as fast as they were in 2013.

During yesterday’s Power Hour, hosted by the Brewers Association, GuestMetrics’ VP of strategy and insights, Peter Reidhead, displayed a graphic that highlights the growing problem: the number of craft brands being sold on-premise has continued to expand faster than the category, which GuestMetrics believes will put pressure on brewer economics.

In other words, adding more taps doesn’t necessarily mean restaurant operators will sell more beer; In fact, the effect might be the opposite. Back when there were 8,000 craft brands being sold on-premise, craft sales, by brand, indexed at a score of “100,” Reidhead said. Over the last five quarters, however, the number of brands being sold on-premise has grown by a consistent average about 20 percent. As a result, velocity has decreased and craft beer sales by brand are now indexing at a score of 78.

“The number of brands being sold on-premise has grown 22 percent and during that time craft beer sales are only up 5 percent,” he told Brewbound during a phone conversation.

The best way to understand the figures, Reidhead said, is to consider proliferation. While the number of unique craft beer brands being sold is on the rise, the sales efficiency of each brand is deteriorating.

So with more choice comes slower sales – not exactly top-secret information, but the numbers could serve as a warning sign for brewers who rely on strong on-premise sales to carry the load. Additionally, Reidhead said, on-premise trends can be a leading indicator of what could happen 3 to 6 months later off-premise.

Reidhead also pointed to the craft spirits segment as a comparison, where sales in that category are growing at a much healthier clip relative to proliferation. When including Tito’s Vodka in the data set, sales of craft spirits are up an impressive 50 percent on-premise. But brand proliferation is only up 10 percent. That’s significant, because it indicates that new product introductions are not outpacing consumer demand — something that is the exact opposite in craft beer.

“The math here isn’t particularly complicated,” he said. “Look at the growth in the offerings versus growth in actual sales. The question really is, are these new craft brewers making money?”

So, new brewers can continue to sprout up and introduce SKUs, as long as those brands are profitable.

That could explain why there’s been a glut of new IPAs hitting the market. IPAs have accounted for 25 percent of all newly launched craft beer products since 2013, Reidhead said. The style is continuing to drive craft’s share gains of total beer, however, while share gains in other styles have tapered off.

And while it’s very probable that the total number of brands being sold on-premise will continue to rise, craft’s overall share gains in the channel might not, Reidhead said.

Craft beer already accounts for 30 percent of all on-premise beer sales, he said, but share gains are slowly decreasing. Craft beer gained 1.3 share points of total beer dollar sales in the first quarter of 2015, down from 2.6 share points in the first quarter of 2014.

“Mathematically, it is probably very unlikely that craft will be 50 or 60 share of beer category on-premise,” said Reidhead. “At some point, there will have to be a peak and it will have to take place at some point in the next couple of years.”

Reidhead predicts that craft share gains will continue tapering off as restaurant and bar operators zero in on what he calls a “optimal assortment.”

“In our data, craft beer has a 30 share,” he said. “If you have 10 tap handles, why would there be more than 3 or 4 taps handles devoted to craft?”

Reidhead added that many large restaurant operators GuestMetrics’ is currently working with have indicated that they have “gone too far” into craft.

Nevertheless, there are still opportunities for growth, especially in areas like Texas, Arizona and Florida, where craft’s share of on-premise beer sales is under-indexed.

Opens Friday 5/22 – The Brewer’s Table at Surly Brewing Co.

Posted by Dien Nguyen on 3:34 PM

Tea Egg at The Brewer’s Table (Photo: DD)

Located in the upper level of the brewery, The Brewer’s Table, Surly’s fine-dining sibling to the Beer Hall & Restaurant, opens this Friday and offers patrons a more ambitious menu and more intimate setting than what is found downstairs.

Creating the fine dining experience at a brewery has been a welcome challenge for both Executive Chef Jorge Guzman and Head Brewer Todd Haug; each of them masters of their craft, now tasked with innovating while also keeping the pairing of food and beer in the back of their minds.

The results of that collaboration are outstanding and belie the modest price point. Entrees on the menu will be changed regularly and range in price from $10 to $25. The most intriguing option, in my opinion is the $15 Beer and Bump, where the diner has no clue what they’re getting other than is is a food paired with a beer. I’m a sucker for a surprise.

A five-course food and beer pairing can be had for $75. You could combine your own, but you’ll be well-served to leave it to the experts. The pairing of Pentagram with beets & foie gras was an exercise in perfectly contrasting flavors. The tea egg paired with Cynic was a piece of art – a soft-boiled egg, steeped in black tea and a charcoal mixture to give a marbled appearance – and showed just how versatile that stalwart of Surly’s lineup is.

Octopus & Chorizo @ The Brewer’s Table (Photo: DD)

While the butter-soft pork jowl is a must-have, I will go out of my way to have the octopus and chorizo again. Spicy and smoky with a perfect texture one would not expect from a cephalopod, it was perfectly complemented by an Overrated West Coast IPA.

A different experience in different parts of the building – to paraphrase Surly Hospitality Director Linda Haug – is what Surly is offering patrons with their tours, Event Center, Beer Hall & Restaurant, and The Brewer’s Table. With the opening of the latter, the Surly vision is complete and ready to be had.

(Photo: DD)

The Brewer’s Table

520 Malcolm Ave. SE, Minneapolis, MN 55414

Reservations via OpenTable can be made here.

Hours:

Wednesday & Thursday: 5-10 p.m.
Friday & Saturday: 5-11 p.m.

Phone: 763-999-6526
Email: brewers.table@surlybrewing.com

First Sunday Growler Sales… Sunday… at Montgomery Brewing

Posted by Dien Nguyen on 1:33 PM

montgomerybrewing Great news from Montgomery, MN. Last night the City of Montgomery passed a provision to allow for growler sales. The city worked quickly and Montgomery Brewing Co. will be open for the state’s first Sunday growler sales this Sunday, May 24th. Don’t hesitate, though… they have a 3 bbl brewing system and the beer just won’t last.

Congrats to Montgomery Brewing!

Brewbound — Craft Beer News, Events & Jobs Brew Talks KC: Duvel Moortgat’s View of the Evolving Craft Landscape Latest News Benefitting Charity: Sign Up for Brew Talks Upcoming Events

Posted by Dien Nguyen on 9:40 AM

Simon Thorpe presents at Brewbound Session, Boston

The beer business has changed radically over the last five years and, while it’s impossible to know how the landscape will develop over the next five, one thing is certain: continued evolution is inevitable.

To better understand how the beer segment could look in 2020, Brewbound has asked Simon Thorpe, the president of Duvel Moortgat USA, to share his view of the ever-evolving craft landscape at today’s Brew Talks meetup, being held at Boulevard Brewing at 5:00 P.M.

Register Today>>>

At a time when beer segment has ceded share to wine & spirits, craft beer has been a bright spot, offering consumers a unique product and a new drinking experience every time they belly up to the bar. It’s brought volumes back to the category, prompting small breweries to invest behind continued growth opportunities.

With demand for more flavorful, handcrafted products on the rise, breweries across the country have raced to build the infrastructure needed to keep pace with growth. Regional and national players have embarked on multi-million dollar brewery expansions, added millions of barrels of capacity and grown into new markets in an effort to better serve demand. At the same time, thousands of entrepreneurs have entered the fray, opening small breweries all across the country.

And with nearly every craft enterprise enjoying double-digit growth, private equity firms and multi-national beer corporations have started acquiring brands. So how is that increased investment altering the competitive landscape? And what happens if (or when) category growth slows? Will those craft brewers that have doubled down and built new breweries still be able to fill their tanks? And if not, how will that impact category dynamics?

During Monday’s talk, Thorpe will share his perspective on a wide-range of issues, including increased merger & acquisition activity, growth management strategies, overcapacity concerns and the threat of a craft bubble. Brew Talks attendees will also hear from Central State Beverage Company’s Jon Poteet, who will share insights from helping to make Boulevard one of the best-selling beers in Kansas City.

Beer industry professionals are invited to join us in Boulevard’s Muehlebach Suite (2501 Southwest Blvd, Kansas City, MO 64108) at 5:00 p.m. The first panel discussion will begin at 5:30 p.m.

Brewbound — Craft Beer News, Events & Jobs Narragansett Expands Distribution Along East Coast Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:40 AM

Attention craft beer drinkers in Western Pennsylvania and the Mid-Atlantic U.S.: say hi to your new neighbor.

Narragansett Beer, the 125-year-old heritage brand out of Rhode Island, has announced plans to expand distribution throughout Maryland, Delaware and previously untapped markets in Pennsylvania, including Pittsburgh, Erie, and Reading.

For wholesale coverage in its new markets, Narragansett has signed on with Legends Distributing in Maryland, NKS Distributing in Delaware, Frank B. Fuhrer in Pittsburgh, Glenwood Beer in Erie and All-Star Distributing in Reading, the company said. In Pennsylvania, Narragansett has a pre-existing presence in Philadelphia.

Narragansett beers – including its flagship Lager, the Mash-Up and Lovecraft series – will be available both on- and off-premise in the new markets later this month.

The expansion, said Narragansett president and CEO Mark Hellendrung, was timed with the recent hire of Vinny Prattico, the brewery’s new vice president of sales and business development.

“Vinny’s valuable industry relationships played an integral role in securing distribution in these markets,” said Hellendrung. “We’re glad to have him on board and look forward to providing beer drinkers around the country with more opportunities to drink ‘Gansett as we continue to grow.”

The brewery is also in search of a facility in Rhode Island to call its own. As Brewbound reported in March, the company was getting ready to close on a 93,000 sq. ft. property in Providence before the building burned down in a fire. Narragansett was planning to share the facility with Isle Brewers Guild, a startup contract brewing outfit similar to Brew Hub and Two Roads Brewing. Narragansett also holds an equity stake in Isle Brewers Guild.

Narragansett sold 78,034 barrels in 2014. Its beer is currently sold in 15 states and Washington, D.C.

Brewbound — Craft Beer News, Events & Jobs First Beverage Founder: Flood of Craft Deals Forthcoming Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:40 AM

Here’s a bold prediction: 25 craft brewery transactions in the next 12 months.

At least, that’s what Bill Anderson, the founder and CEO of investment and advisory firm First Beverage Group, believes is the inevitable short-term future for craft.

Speaking to a room full of brewery executives, distributors and investment bankers who attended yesterday’s Beer Marketer’s Insights conference in Chicago, Anderson characterized craft beer as the “hottest category in CPG (consumer packaged goods)” and confidently stated that the pace of craft deals is about to pick up.

“I think there could easily be 25 more transactions in the next 12 to 15 months,” he said, adding that attractive multiples coupled with a growing pool of interested buyers and investors has led to “a huge acceleration of brewers” looking more seriously at the both exits and capital infusions from private equity firms, family offices and strategics alike.

“Big checks have a way of opening doors,” he said.

And although Anderson wouldn’t comment specifically on any transactions that his own firm was involved in – First Beverage advised on the Boulevard Brewing, 10 Barrel and Southern Tier deals – he did suggest that some fast-growing craft breweries are fetching as much as 18 times earnings.

Anderson said he’s counted “at least six or seven rollup groups” that are approaching acquisitions with more of a portfolio mindset, adding that many of those companies are also eyeing public offerings as an eventual exit strategy.

Anderson also hinted that one top-ranked craft brewery was currently looking at its own IPO; something he believes could happen within the next six months.

“The business of craft beer is going to radically change,” he said, comparing it to the real estate sector.

“This was a great little neighborhood created by Kim [Jordan], Jim [Koch] and Ken [Grossman],” he added. “Now there are a few people down the street building McMansions. They want to come to your barbeque but they aren’t bringing anything. They just want to eat your food.”

Craft businesses like Boston Beer, Sierra Nevada and New Belgium were more predictable when fewer players were competing in the space, Anderson said. But with more money flowing into craft, the “core business” will become less predictable and motivations will differ greatly from the category’s original founders.

Nevertheless, Anderson doesn’t believe the spirit of the movement or the general collegial nature of craft will suddenly disappear, even as more professional money managers take over the books.

“I think it will be frothy for another two to three years, and I think it will change the nature of the business of this industry, but the consumer part will not be as affected,” he said.

Maintaining the collegiality might be a focus for brewery founders, but not for one investment banker who, prior to attending the Craft Brewers Conference last month, opted for a more aggressive approach to dealmaking.

In a solicitation e-mail sent to craft brewers and obtained by Brewbound, a partner with Arlington Capital Advisors teased a forthcoming “top 15 brewery transaction” and indicated that foreign companies like Heineken International, Asahi Breweries, Carlsberg Group, Sapporo Breweries, and Suntory Holdings all have expressed a “deep interest” in craft.

That same email also suggested that Boston Beer Company and other domestic strategic buyers had made bids on the company’s previous transactions, which include SweetWater Brewing’s minority sale to TSG Consumer Partners and Enjoy Beer’s acquisition of Abita.

And while it’s not known which craft brewery owners are currently looking to sell, Anderson made it clear that more transactions are on the way.

“There is a tremendous amount of money on the sidelines that wants to get into this industry,” said Anderson.

“I think this is a unique window of very high multiples and very able, willing, hungry buyers,” he said. “This window may not happen again for another eight to ten years.”

Brewbound — Craft Beer News, Events & Jobs California Craft Beer Contributes $6.5 Billion to State Economy Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:40 AM

California’s craft beer industry still has a way to go before it can hold a candle to its celebrated wine trade, but it’s certainly trending in the right direction.

In 2014, the market for craft beer in the state continued to flourish, contributing more than $6.5 billion to the economy, according to a newly released report from the California Craft Brewers Association (CCBA).

While the figure is representative of a “fairly conservative” uptick of 18 percent over the year prior, craft beer still boasted a higher economic impact in California than anywhere else in the nation, the CCBA said.

Tom McCormick, executive director of the CCBA, attributed the growth to a number of things, including lenient rules that govern both startup and established businesses.

“It’s a very, very vibrant state,” he told Brewbound. “For the most part, our regulatory structure here is very conducive both to startups and the growth of craft breweries, and I think that makes a big difference.”

All in, the state’s brewers – which include nationwide top 10 craft players Sierra Nevada, Stone, and Lagunitas – produced more than 3.4 million barrels of beer in 2014, while employing more than 48,000 people.

The industry’s growth, in part, was driven by the arrival of new players on the scene. In 2014, there were 519 operating craft breweries in the state, up from 418 the year prior (though as of March, California has 554 operating breweries). In 2012, California played host to only 313.

McCormick said he was only aware of one or two brewery closings in the state in 2014, though, as the space continues to crowd, he expects to see “the dynamics of that change” sometime in the next few years.

Together, the report continues, California’s brewers paid more than $56 million in both state and federal excise taxes in 2014, and more than $1.3 billion in income and other federal, state and local taxes.

Looking ahead, McCormick concluded he still sees a lot of run room for craft to continue to nab market share of the overall beer market, which he pegged currently somewhere between 20 and 22 percent.

There is, of course, also a severe drought plaguing the state that has been a popular talking point as it relates to the craft beer industry — and its future growth.

“If we can get rain out here, I think we’ll be in great shape,” added McCormick.

Brewbound — Craft Beer News, Events & Jobs Wachusett Hopes to Grow Contract Business Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:39 AM

After investing more than $5 million on brewery infrastructure over the last five years, Wachusett Brewing is turning more attention to the contract portion of its business. But in order for the company to fully capitalize on all of the opportunities coming its way, it says, it needs a little help from Massachusetts state regulators.

In an effort to extend both its own line of craft products into cans and to attract brewers looking to do the same, the Westminster-based craft brewery acquired and refurbished an old Coca-Cola canning line in early 2012. The following year, Wachusett added a multi-packer, giving it the ability to produce 12-packs.

The company’s facility improvements finally culminated with the installation of a fully-automated, 50-barrel brewhouse earlier this year. That system, which was fabricated in Maine, is capable of churning out 600 barrels per day and has improved the company’s ability to produce greater quantities of its own beer while taking on new contract partners, like Portsmouth, N.H.-based Smuttynose Brewing.

But in a conversation with Brewbound, Wachusett founder and president Ned LaFortune said that unless Mass. regulators pass House Bill 187, which would clear the way for additional tenant brewing privileges, the company’s future contract business could be limited.

What LaFortune is hoping for is a change in regulations that would allow out-of-state brewers to transport their finished beer across state lines and utilize Wachusett’s’ canning services. The brewery currently owns two food-grade tankers and is capable of hauling up to 300 barrels of beer at a time, but those vehicles can only transport beer brewed within the Commonwealth.

It’s a resource that would give an out-of-state brewery like Smuttynose, which just built its own new brewery, the ability to brew in New Hampshire and then utilize Wachusett’s canning line, a piece of equipment it doesn’t currently own. But the state needs to allow for amended tenant brewer privileges first, LaFortune said.

LaFortune’s offer to contract brew isn’t necessarily geared toward startups entrepreneurs. While he has plenty of space for both brewing and canning, his system isn’t as accommodating for startup brands that are still working to establish a foothold in the marketplace.

“It would be our preference to work with someone who can fill 100,000 cases annually,” he told Brewbound. “Before I take on a bunch of contracts, I would want to work with someone who can take thousands of cases for one SKU. It minimizes administrative costs and overhead.”

LaFortune says he can still can for those smaller brewers, and he hopes to be able to do so regardless of their state of origin. A change to the law would also allow Wachusett to explore opportunities with larger customers — the kinds who could fill large canning runs but don’t need the company’s brewing services.

Regardless of the customer size, the increased emphasis on contract brewing is somewhat of a strategic pivot for Wachusett.

“It is partially based on my decision to keep the Wachusett brands a local, New England brand,” he said. “I don’t want to try and take the brand further away, I just want to make sure that we are diversified.”

The Wachusett line — 80 percent of which is sold in Massachusetts — is still growing, but there’s a need for contract services in New England not currently being met, LaFortune said. As new competitors enter the fray, LaFortune believes additional contract volume will help shield the company from surrendered tap and retail shelf space.

“When Yuengling entered the market, it did have an affect on us,” he said. “Fortunately, for us, it didn’t have too much impact on the company because we had picked up a lot of contract volume. Any diminishing growth for Wachusett was made up by contract volume.”

Wachusett made 32,000 barrels of beer in 2014, making it the second-largest packaging brewery in Massachusetts. The company is forecasting sales of 45,000 barrels in 2015, a figure that could increase if contract business grows.

So will there ever come a time when Wachusett is producing more beer for other brewers, a la Connecticut’s Two Roads Brewing?

“If it goes down that road and it is working for us — and if we are working with people that we respect and cash is flowing — it could happen,” he said. “It will all depends how successful the brands are in cans.”

And perhaps, too, on House Bill 187.

Town Hall Growler Spring Cleaning Program Continues

Posted by Dien Nguyen on 3:25 AM

Town-Hall-growlers

How many empty growlers are squirreled away in your basement, in the back of your cupboard or in your garage? And of those growlers, how many do you actually use?

If you’re up to your neck in old growlers, Minneapolis Town Hall Brewery can help. Through Sunday, May 17th, you can bring your growlers to Town Hall’s flagship 7 Corners location and exchange those growlers for either a $4 gift card or a $4 discount on a fresh growler of beer from Town Hall.

Earlier this week we were told that Town Hall had accepted more than 1700 growlers. Most of the returns have come from Minnesota breweries and brewpubs, but returns have also come from places such as Wisconsin and California.

After Sunday, through the rest of the month, Town Hall Brewery will continue to accept empty growlers from other breweries. Fans that return growlers will receive a $4 discount on refills.

Brewbound — Craft Beer News, Events & Jobs CBA Details Rough First Quarter Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:39 AM

As Brewbound reported yesterday, Craft Brew Alliance (CBA) suffered through a difficult first quarter, which ended on March 31, 2015. Net sales and total beer shipments decreased 5 percent and 8 percent respectively.

CBA CEO Andy Thomas summarized the quarter during an earnings call with investors and analysts on Thursday.

“I’ve remarked to many of you before that I look forward to the day when our numbers speak for themselves,” he said. “Well, Q1 2015 still isn’t that time.”

The dull quarter stands in stark contrast to that of that same period from one year ago, which Thomas called an “aberration” that saw net sales and shipments increase 20 percent and 17 percent respectively, leading the way for the company to close out 2014 up double digits in both areas.

An aberration notwithstanding, CBA has made plenty attempts in recent months to stoke portfolio-wide growth. In recent months, the company has added nine states to Kona’s distribution footprint and created additional capacity at Blues City Brewery in Memphis, where it contracts some production of its beer, to better serve the Southeast. That prompted at least one listener on the call to question how, despite higher-than-average sales during last year’s first quarter, shipments could still dip 8 percent in 2015.

“The nine final states that we rolled Kona out in, candidly, are relatively insignificant and small,” Thomas responded. “The key in moving them out and into the states isn’t necessarily the volume we’re going to generate in those nine states. It’s the fact that, that will enable us to actually start to service some national accounts that have coverage in those nine states. The benefit won’t be linear, I would say, and directly proportional.”

Ken Kunze, CBA’s chief marketing officer, spotlighted a few broader, industry-wide factors that contributed to the company’s lethargic quarter, including negative on-premise traffic, a 4 percent decline in beer industry tax paid shipments, and even California’s recent ban on scanbacks that hampered its ability to provide competitive prices in the company’s biggest volume state.

Kunze also offered additional insight on the company’s portfolio of brands. CBA’s gluten-reduced offering, Omission, was the big winner. Depletions were up 33 percent on the quarter, “achieving a 50 share of the gluten-free segment,” an increase of 11 share points over the year prior, said Kunze. Kona depletions were up 9 percent and the brand now controls 21 percent of the Hawaiian beer market. Widmer Brothers depletions were down 3 percent for the quarter, though off-premise sales were up 4 percent, driven primarily by its flagship Hefe and Upheaval IPA, he said.

Redhook, on the other hand, Kunze said, has been its least profitable in the brand family, with depletions down 10 percent.

“There are geographies where we sell a fair amount of volume but make very little gross margin in the process,” he said. “The challenge is to balance sourcing more Redhook volume in more profitable geographies while we transition less profitable geographies to other more profitable brands in the portfolio.”

That process will take a while, however, and Kunze expects Redhook to continue to suffer as a result.

Looking ahead, Scott Mennen, the company’s vice president of operations, detailed the four main priorities CBA has set for itself as it looks to expand gross margins ( between 30.5 percent and 31.5 percent in 2015).

According to Mennen, CBA must:

The executives on the call, which, alongside Thomas, Kunze, and Mennen, included newly appointed CFO, Joe Vanderstelt, were also questioned about any lingering hangover from the 25 percent reduction in SKUs from 2014.

Mennen said to expect additional rationalization, noting that any further cuts would not be as dramatic. The continued reduction of struggling brands would be offset by the introduction of new items, naming Widmer’s Hefe Shandy as an example.

Though most of the call was devoted to explaining grim numbers, there were some bright spots discussed. In the company’s home markets of Oregon, Washington and Hawaii, depletion volume grew 8 percent, a credit to continued investment in the backyard.

“We’ve been explicit about our home market strategy,” added Thomas.

As Brewbound reported earlier this year, the company plans to invest a total of $25 million in expanding operations in Portland, Ore. ($10 million) and Hawaii ($15 million). All in, depletion volume grew 1 percent over the first quarter, the company said.

Brewbound — Craft Beer News, Events & Jobs Beer Institute VP of Communications Chris Thorne to Depart Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:39 AM

Chris Thorne, the Beer Institute’s vice president of communications, has announced his resignation from the organization effective May 29.

Thorne plans to open his own “media and issue advocacy” group in Washington D.C. and continue working with the Beer Institute as an independent consultant. He will represent the lobbying group as its communications counselor until the organization fills his vacant position, BI president Jim McGreevy told Brewbound.

“Chris was our first in-house vice president of communications and he is a model for the kind of person we will look to bring in as his successor,” McGreevy said. “As an advocacy organization – for our members and a category – you can’t just be talking to people inside the building. You need to talk to people in the community so that they understand the importance beer has in Washington D.C. and America. That is what Chris did so well and what he will continue to do on behalf of beer.”

Thorne began his time at the BI in April 2012, helping to rebrand the organization and execute the launch of various industry campaigns such as “Know Your Drink” and “Brand Beer.”

“Being involved in regulatory issues but also representing the category to the broader public is the piece of the job that Chris excelled at,” said McGreevy.

Not surprisingly, the BI is Thorne’s first official client, though McGreevy said it’s unknown how long the BI intends to work with his yet-to-be named venture.

McGreevy said the Beer Institute is currently searching for a replacement and will look to “have a team that is at full strength” by early summer.

Brewbound — Craft Beer News, Events & Jobs Beer Institute VP of Communications Chris Thorne to Depart Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:39 AM

Chris Thorne, the Beer Institute’s vice president of communications, has announced his resignation from the organization effective May 29.

Thorne began his time at the BI in April 2012, helping to rebrand the organization and execute the launch of various industry campaigns such as “Know Your Drink” and “Brand Beer.”

“Being involved in regulatory issues but also representing the category to the broader public is the piece of the job that Chris excelled at,” said McGreevy.

Not surprisingly, the BI is Thorne’s first official client, though McGreevy said it’s unknown how long the BI intends to work with his yet-to-be named venture.

McGreevy said the Beer Institute is currently searching for a replacement and will look to “have a team that is at full strength” by early summer.

Brewbound — Craft Beer News, Events & Jobs CBA Details Rough First Quarter Latest News Featured Jobs Additional News Craft Beer Industry Jobs Recent Articles Upcoming Events

Posted by Dien Nguyen on 9:39 AM

CBA CEO Andy Thomas summarized the quarter during an earnings call with investors and analysts on Thursday.

“I’ve remarked to many of you before that I look forward to the day when our numbers speak for themselves,” he said. “Well, Q1 2015 still isn’t that time.”

Redhook, on the other hand, Kunze said, has been its least profitable in the brand family, with depletions down 10 percent.

That process will take a while, however, and Kunze expects Redhook to continue to suffer as a result.

According to Mennen, CBA must:

“We’ve been explicit about our home market strategy,” added Thomas.

Brewbound — Craft Beer News, Events & Jobs Brew Talks Chicago: An Interview with Revolution’s Donn Bichsel [Video] Latest News Sign Up for Brew Talks Upcoming Events

Posted by Dien Nguyen on 9:38 AM

In the world of XY charts, there are companies with steady linear trajectories, the oft-coveted hockey stick growth curves and then there’s whatever geometric shape Revolution Brewing is creating.

Since diving head first into full-scale production in 2012, the Chicago-based beer company has brewed up a revolution in the Windy City – growing sales to just over 50,000 barrels in 2014. 2015 forecasts place sales from its production brewery and its brewpub somewhere north of 70,000 barrels, a figure that Donn Bichsel, Revolution’s director of sales and marketing, estimates will double by 2017.

So this summer, in an effort to keep up with increasing demand and a desire to expand into new markets, the company will embark on a multi-million dollar expansion, install a new 120-barrel brewhouse – twice the size of its current system — and four 800-barrel fermentation tanks. And depending upon how firmly the company wants to press on the gas pedal, capacity could accelerate to 225,000 barrels as quickly as Ziemann, their fermentation tank supplier, can weld together pieces of stainless steel.

But even Revolution isn’t impervious to the threat of an uprising, one that will include about 50 craft breweries in the Chicagoland area before the end of 2015.

So what’s the company’s strategy for accelerating growth at a time when so many craft breweries are competiting for valuable tap and shelf space?

The chains.

“We really embraced the chains early, knowing that we are a chain driven market and knowing that we wanted to make our beer available to as many people as possible,” Bichsel told Brewbound during a recent phone conversation. “We could have done this without getting involved in the chains. We just have to make sure they are taking care of our brands the right way and selling them at the right prices.”

Propelling Revolution’s growth in the chains is its flagship IPA, Anti-Hero, which accounts for nearly 60 percent of company-wide sales.

“It’s our horse,” Bichsel said during a conversation at last month’s Brew Talks meetup, held on April 28 at the Revolution Brewery in Chicago.

“We try to temper it down, but we like to let it run,” he added.

Bichsel believes the brewery’s recently introduced Fist City “Chicago Pale Ale,” brewed with all “C-hops,” could one day be the lead brand.

Despite the optimism, there was a very practical reason for behind Revolution’s introduction of a fifth year-round product in cans, Bichsel said.

“Some chains are deeply committed to craft and deeply committed to giving us a full shelf in the cooler,” he said. “That is one of the reasons why Fist City was created — to be able to have a fifth brand that can fill out a shelf.”

But while that strategy plays well in Chicago, it’s tougher for Bichsel and Revolution to command cooler space as it moves farther away from home.

“In home markets, chain buyers have become quick to adapt and know that their local brands will be their horses,” he said, noting that Revolution is probably “over-indexed” in Chicago.

“As we move farther afield, and start to move further into Ohio, that is where the pushback becomes more evident. It is give me your number one and give me your number two. If number one performs well, we will give you your second placement. If that performs well, we will give you your third,” he added.

In our latest video from Brew Talks Chicago (above), Bichsel provides an update on Revolution’s progress through the midway point of the year, offers his takeaways from the 2015 Craft Brewers Conference, and shares his vision of craft category development over the next 12 – 18 months.

Brewbound — Craft Beer News, Events & Jobs Startup Brewery Challenge Returns to Brewbound Session – Apply Today! Latest News Registration Upcoming Events

Posted by Dien Nguyen on 9:37 AM

Brewbound is pleased to announce that the Startup Brewery Challenge, our bi-annual business pitch competition, will return for a fourth edition at the June 11 Brewbound Session in Chicago, IL.

“Since launching the competition in December 2013, we’ve seen the level of entrepreneurial talent and the quality of both the beer and the pitch improve immensely, and we expect that to continue in 2015,” said Brewbound editor Chris Furnari.

Participating entrepreneurs will be given three minutes to explain their business propositions, and company mission statements, and will receive immediate feedback from a judging panel that will include accomplished beer executives, innovative brewers and savvy craft retailers. Pitching in front of a more than 200 industry professionals, Startup Brewery Challenge participants will also be allowed to visually showcase their brands with Powerpoint slides.

Simply visit the application page for a complete listing of rules and selection criteria. Applicants will be evaluated and chosen by the Brewbound team. Questions about the competition can be directed to Jon Landis at jlandis@bevnet.com or 617-231-8834.

Complete details on the Startup Brewery Challenge, including exact timing of the competition and judging announcements will be made in the coming weeks.

Past winners of the Startup Brewery Challenge include CODA Brewing, Appalachian Mountain Brewing and 5 Stones Brewing. Last December, as a direct result of participating in the Startup Brewery Challenge, Appalachian Mountain Brewing and CBA formed a strategic partnership. That partnership recently evolved into a master distribution arrangement and a commitment from CBA to market, sell and distribute AMB products exclusively through its wholesale network.

Combining the best in business information and networking, the Brewbound Session offers an unmatched strategic learning opportunity for craft brewers and wholesalers. Focused on the business side of craft brewing, the event will take place in Chicago, IL on Thursday, June 11. Current speakers include Anheuser-Busch InBev’s CEO of Craft, Andy Goeler; Oskar Blues founder Dale Katechis; Tenth and Blake president Scott Whitley and Alchemy & Science president Alan Newman, among others.

The Brewbound Session provides an excellent opportunity to learn marketing, investment, and distribution strategies, as well as hear case studies of successful brands in a highly collaborative atmosphere. The upcoming conference aims to address the topics that most directly impact craft brewers as they look to grow their brands.

Brewbound — Craft Beer News, Events & Jobs Startup Brewery Challenge Returns to Brewbound Session – Apply Today! Latest News Registration Upcoming Events

Posted by Dien Nguyen on 9:37 AM

Brewbound is pleased to announce that the Startup Brewery Challenge, our bi-annual business pitch competition, will return for a fourth edition at the June 11 Brewbound Session in Chicago, IL.

Complete details on the Startup Brewery Challenge, including exact timing of the competition and judging announcements will be made in the coming weeks.

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