Category: Beer Industry

my occasional rants and raves about what is going on in the industry.

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On Point

Target and craft beer aren’t usually mentioned in the same sentence often but since they pushed into the grocery aisle they have added beer, wine and spirits. To this point, I have not purchased craft beer at a Target since the selection seems just a tiny bit sku’d to the SABInBevMiller distribution side of life with only four or five bombers and some bigger often seen like Sierra Nevada Pale.
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But now, they seem to be changing things up. Starting with a location in Denver, Target has moved the beer to the front of the store and put it in a walk-in cooler. It is the first of possibly more “beer caves” as the Minnesota company calls them.
Other Target locations in Illinois seem to stock not only the widely available Goose Island but also Two Brothers and Revolution. How deep the stock is and who is doing the buying probably dictate what we see on shelves.

You probably won’t walk out with a rare beer but if they can start stocking local flagship beers it could be a great place to stock up for larger gatherings.

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This Land is Belgium

So this came about last week but I wanted to read the insta-responses before posting my own. But I recommend also reading THIS and THAT to get a rounded picture.

If you base your beer buying choice based on the word America and all the emotions that it evokes. Well then foreign owned Budweiser may have you covered. They have applied for and received special dispensation for a summer season label that swaps out the Budweiser and replaces it with America. As well as whatever other flag draped patriotic words they could find.
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And they are truly banking on people buying for that reason only. Maybe Americans will. It has been a weird and wild primary season and I suspect that many a political after-party will have buckets of “America” chilling on ice for the sheer easy-ness of the image that it will send. The flag lapel pin of beer, as it were.

I have my doubts though. Barring cans being emblazoned with first names or photos of Trump or Clinton, what percentage of consumer who already buys this type of beer is basing it on the label? Has there been a study done on it? My gut tells me that the average purchaser will pick on A) price or B) ingrained love/hatred of one brand over another. There might be a group of “undecideds” out there but of them, I again ask, what percentage will pass by reason A on the way to C) that label has America written on it.

I have grown accustomed to the avoidance of the beer inside the container but I also understand that mountains turning blue or a vortex neck might sway people for novelty in ways that a few word choices simply cannot. The cans will be made in far too great a quantity to be collectible though collecting is preferable to drinking them.

Or is this just some psychological experiment from the advertising world? The knowledge that they are a foreign owned company has probably seeped into their customer base and this may just be a way to stop the spread of the pernicious fact based rumor that they are run from Belgium/Brazil. What does it hurt them to slap a few patriotic words on a new label? Probably a drop in the marketing budget. All in exchange for forestalling their sales slide. Blatant misdirection has worked for the Tangerine Terror this political season (see Trump in his own version of 11 22 63). So, why not for America-wiser.

I fully expect to see a Point the Way USA IPA this summer in red, white and blue striped cans. Or perhaps a Patriot’s Peachy Pumpkin from Elysian.

I also fully expect craft brewers to answer this call with patriotic and hoppy puns combined.

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Hop Forecast

Hoppy, with a chance of bitterness. All kidding aside since you should not trust any LA based weather prediction, here is the news from the hop bines….
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The latest report from the Hop Growers of America points to a sunnier future for this IPA crazed drinking nation.

Hop inventories in the U.S. have increased by 10 percent in the last 12 months compared to last year. That doesn’t mean your local brewer will be able to brew up an exotic SMaSH beer because only a portion of that 10% will go to what is called the Spot Market (the not already pre-ordered part of the market). The rest will fulfill contracts that are purchased years in advance.

This year will mark the fourth year in a row that the acres of hop fields have grown here in the U.S.. In addition, it is the third year internationally with Germany expected to increase its acreage of hops by 10%.

Part of me sorta hoped that the supply would stay tighter as it would force brewers into different styles or be more creative with their personal hop supply. That is the same part of me that wishes that George Lucas always had to work on a shoestring budget for his Star Wars and not rely on the old green screen so much.

This will certainly help logistically for many breweries who had to really plan out their brewing schedules and will hopefully trickle down to the new brewers who don’t have the access to hops that the established brewers do.

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Misfits United

True Craft (check in around the 16 minute mark, though you should watch the build-up)….

Greg Koch today revealed plans that are bigger and more ambitious than even building an American brewery in Berlin. True Craft will launch a $100 million fund for investing in “real” food and beverage companies with the goal of creating a stable and ongoing environment for “craft” conscious companies so that selling out doesn’t have to be an only option.

This fund which has garnered a not unsizeable starting bankroll of $100 million will acquire minority positions in craft breweries. Per Koch, “They can make their own decisions about their future,” he said. “They can stay independent. They can get financing and flexibility that they need to flourish, while keeping their soul and control.”

I almost think it is too late to the game but a welcome addition to the brewery succession plan cupboard of ideas. ESOP’s and partial sales to investors or merging with bigger craft brands are all well and good but without a place to go that can guide brewery once the initial founder is done is what is needed more. SABInBevMiller may think they were smart to buy up formerly craft breweries but their eternal short-sight syndrome may have led them to buy when breweries would have gone “poof” and vanished. Innovative financing ideas like this and micro-loans are what are truly needed to keep innovative ideas bubbling for years.

I know the Pollyanna card will be played in my direction. Thinking that whatever breweries join must fall into lockstep with Stone could be a worry but the main reaction so far seems to be to the name, True Craft, alone.

Financing is tricky. So are succession plans. Just like a thriving craft beer culture needs breweries of all sizes. All types of plans should be available. True Craft may not affect more than a few breweries but it could be a lifeline for those few and to piss on the whole endeavor instead of finding where it could help seems counterproductive.

More on this endeavor will be posted here as it develops. (And I hope it catches on with coffee, cheese, wine and other “crafted” foods and drinks)

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Learn in Milwaukie

Setting aside that I am a Linfield grad, the chance to work with Breakside Brewery would make me sign-up for this Lewis & Clark class…
This is from Brewbound.com, “For the past 3 years, Breakside Brewery and Lewis & Clark College have partnered to offer a course in brewing and the business of beer for students interested in the craft beer industry. Sponsored by Lewis & Clark’s Center for Entrepreneurship, the course is instructed by Breakside brewmaster Ben Edmunds and R&D brewer Will Jaquiss.

The course is a comprehensive introduction to the beer industry, designed to prepare students with a practical understanding of how beer is designed, developed, produced and sold. The course focuses on three intertwined elements of brewing: fermentation science, beer as a business, and beer as an artisan craft, and students develop a broad understanding of the skills and theory needed to understand and/or join the beer industry.

In the capstone project of the course students split into small groups and each brew a beer of their own design on Breakside’s 3 barrel pilot system. The students work closely with Breakside’s brewing staff to select raw materials, develop a recipe, and create a sales plan for the beer. In the final class of the semester, the beers are evaluated by brewers from other breweries in Portland, so the students get real-time feedback from sources other than their day-to-day instructors. Unlike other brewing seminars for students, these beers are actually sold to the public and marketed just like any of Breakside’s other beers.”

I would love to take this class if I was still back in my hometown of Milwaukie. Not for the brewing part as much as the marketing at the end. How to sell a beer that you have had a hand in crafting must be a fascinating exercise and would put me squarely in the shoes of the people that I usually buy from.

Here is the list of the 2016 student beers and all three have aspects that draw me in…

Going Golden – American Summer Ale 5.3% ABV 22 IBUs
“This hoppy golden ale is equally refreshing and complex. it features the new Enigma hop, which has notes of apricot and peach, as well as touch of Mosaic and Cascade hops.”

Sunny Day Wit – Hoppy Belgian Wheat 4.1% ABV 15 IBU
“This is an interpretation of a Belgian witbier with the addition of more flavoring and aroma hops than would be found in a classic version. The hard-to-find Huell Melon hop, featured here, provides beautiful notes of honeydew and grass.”

Royal Baby – American ESB 5.8% ABV 35 IBU
“An American take on the classic English-style ESB, with a spicy, citrus aroma from both English and American hops, and a rounded mouthfeel from the addition of Torrified Wheat.”
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Draw the Label

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I have never been a huge fan of the painted on bottle look from AleSmith (I would describe it as plain and utilitarian) and now if I had any (I mean any) art skills I could do something about it. But maybe someone out in craft beer land will and enter the Evil Dead Red Ale Bottle Art Contest.

Evil Dead Red Ale is an iconic beer on shelves and conjures up all sorts of Halloween imagery and I will be hoping to see not only the winning choice but also the runners-up too to see if I agree with which art makes it on the label.

Artists may submit as many entries as they like to creative@alesmith.com from April 8 to May 9. Check out the AleSmith website for all the rules and regulations.

Submission Period: April 8-May 9, 2016
Winner Announcement: During American Craft Beer Week, May 16-22, 2016

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Untappd Tapping Data

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Pulling people to your website, be it a beer website or blog is much harder than pushing information to a set list of people. With the added benefit of having said names and information to possibly sell to others who might covet it.

The user base of Untappd is a niche group that might act on pushed information and that’s probably the reasoning behind the fact that they announced the launch of Untappd for Business. “Verified venues” that sign up and fork over the cash will have the ability to share tap lists plus event info to the 3 million users of the app.

Users (like me) can “friend” one of these venues to get the tap list and event info plus receive notifications when your favorited beers are tapped at one of your “friends” within a 15-mile radius of their location.

Expect more updates and additions to Untappd now that the founders are part of Next Glass and have more time to devote to the app.

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California Craft Beer Summit

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Denver has GABF, Washington DC has Savor and Sacramento plays host to the California Craft Beer Summit + Beer Festival.

Held over three day, it is part industry trade show, part seminars, part networking and it leads up to a California Only craft beer festival, in front of the state Capitol with 150 breweries. You read that correctly 150.

Here is more information for those (like me) tempted to visit:
“The Expo Hall is organized around the four main ingredients in beer and offers “Tap Talks” with brewing legends, chef demos at the Culinary Marketplace, regional beer tastings hosted by craft beer guilds across the state, homebrewing demos and interactive, hands-on displays.

Educational Sessions on Friday are focused on the brewing, business and hospitality industries and include everything from technical skills to branding to how to explain beer styles to your guests.
Educational Session on Saturday are for the people that really drive the craft beer industry: craft beer drinkers! These sessions offer entry and advanced level homebrewing lessons, tasting, judging and pairing opportunities and a few, fun history lessons with colorful California brewers.”

Tickets ain’t cheap but there are ticket options for various days and you can get into the festival only and it will get you access to more beers in one spot than you could probably dream of trying in a year of driving around the Golden State.

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America’s Top 50

You have no doubt seen many links to the map of the 2015 Top 50 breweries from the Brewers Association based on beer sales volume and you may also have seen the number of asterisks involved.

Brewing Company City State
1. D. G. Yuengling and Son, Inc Pottsville PA
2. Boston Beer Co Boston MA
3. Sierra Nevada Brewing Co Chico CA
4. New Belgium Brewing Co Fort Collins CO
5. Gambrinus San Antonio TX
6. Lagunitas Brewing Co* Petaluma CA
7. Bell’s Brewery, Inc Kalamazoo MI
8. Deschutes Brewery Bend OR
9. Minhas Craft Brewery Monroe WI
10. Stone Brewing Co Escondido CA
11. Ballast Point Brewing* San Diego CA
12. Brooklyn Brewery Brooklyn NY
13. Firestone Walker Brewing Co Paso Robles CA
14. Oskar Blues Brewing Holding Co Longmont CO
15. Duvel Moortgat USA KC & Cooperstown MO/NY
16. Dogfish Head Craft Brewery Milton DE
17. Matt Brewing Co Utica NY
18. SweetWater Brewing Co Atlanta GA
19. Harpoon Brewery Boston MA
20. New Glarus Brewing Co New Glarus WI
21. Great Lakes Brewing Co Cleveland OH
22. Alaskan Brewing Co. Juneau AK
23. Abita Brewing Co Abita Springs LA
24. Anchor Brewing Co San Francisco CA
25. Stevens Point Brewery Co Stevens Point WI
26. Victory Brewing Co Downingtown PA
27. August Schell Brewing Co New Ulm MN
28. Long Trail Brewing Co Bridgewater VT
29. Summit Brewing Co Saint Paul MN
30. Shipyard Brewing Co Portland ME
31. Full Sail Brewing Co Hood River OR
32. Odell Brewing Co Fort Collins CO
33. Southern Tier Brewing Co Lakewood NY
34. Rogue Ales Brewery Newport OR
35. 21st Amendment Brewery Bay Area CA
36. Ninkasi Brewing Co Eugene OR
37. Flying Dog Brewery Frederick MD
38. Narragansett Brewing Co Providence RI
39. Left Hand Brewing Company Longmont CO
40. Uinta Brewing Co Salt Lake City UT
41. Green Flash Brewing Co San Diego CA
42. Allagash Brewing Co Portland ME
43. Lost Coast Brewery Eureka CA
44. Bear Republic Brewing Co Cloverdale CA
45. Troegs Brewing Co Hershey PA
46. Karl Strauss Brewing Co San Diego CA
47. Breckenridge Brewery* Littleton CO
48. North Coast Brewing Co Inc. Fort Bragg CA
49. Four Peaks Brewing Co* Tempe AZ
50. Revolution Brewing Co Chicago IL

*Craft volume pro-rated in 2015 or will be pro-rated/exiting craft brewer data set in 2016

Four breweries will be exiting the craft beer category come 2016. Which four will take their place? The state of California will lose half of their Top 10 entrants as Lagunitas and Ballast Point will be gone leaving only Sierra Nevada and Stone unless Firestone Walker can jump a few notches their current 13 spot.

The overall California dominance will also take a hit unless there are two breweries lurking in the 50-55 range. Right now they hold a commanding 7 brewery lead over the next state with Colorado at silver with 5 and Oregon at the bronze level with 4.

There are only 22 states represented in the top 50 (with 13 having a sole representative) which to my mind points to growth possibilities. I’m thinking of Illinois and Michigan as well as the Southeast that could move more breweries into the Top 50.

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Devil Went Down in Virginia

Start copying/pasting your anti-takeover post from months back. At this point every beer blogger in America probably has a standard blog post template for SABInBevMiller “acquisitions”.

This time it is Devil’s Backbone Brewing of Virginia that has joined the “High End” making it the eighth company in that division of the multi-national industrial conglomerate. But it is also unique from past sellers in two ways. It bucks the trend of West & Mid-West breweries and DB has been a Great American Beer Festival darling. winning many a medal but also taking brewery of the year in numerous categories as it grew to its current size.

“…national titles for GABF 2014 Mid-Sized Brewing Company and Brew Team of the Year, 2013 Small Brewing Company and Small Brewing Company Brew Team of the Year, and 2012 Small Brewpub and Small Brewpub Brewer of the Year.”

DB has two locations, their Outpost which is the main production hub and their Basecamp & Meadows which is the primary guest destination Their Vienna Lager is the flagship of their Germanic-hued line of beers.
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If you are worried about the beer quality, well either this statement will help or not, “While we are joining a creative group of craft breweries in the division, Devils Backbone will retain a high level of autonomy and continue its own authentic DNA within The High End framework,” brewery co-founder Steve Crandall explained in a press release on April 12th.

As I have explained before, don’t automatically write the latest “High End” entrant off completely. Put them on a watch list and see if the beer starts to decline or if the management or brewing team starts to leave. Some breweries have handled the transition well and others have not. Let’s hope that Devil’s Backbone doesn’t GRB it.