Aftermath- Part 5

Next post crisis agenda, L.A. Beer Week. Each June the beer community gathers around our wide geographic area and celebrates. This year will be markedly not business as usual.

But, I do believe there is opportunity here. Yes, even if still locked down and isolated or out of business can provide hope. First, I think there must still be a Unity beer produced. And I would suggest that it be a strong golden ale that provides ABV but a golden hued glimmer as well.

If we are still isolated, there should be Zoom parties set-up for each day of the week, Jerry Lewis telethon style where brewery A hosts for 30 minutes, then a second brewery takes over with four breweries a night talking about their history, how best to support them and how to buy their beer. Or videos, can be made that guide people through a breweries beers and put up on the main Guild website and a dedicated YouTube channel.

If we are allowed outdoors in June, I would propose a Socially Distant Beer Festival. If only 10 people are allowed together in one venue, sell 9 tickets and have everyone properly spaced and then have a curated flight of local beers to offer them. Use the rules to make new events that abide by them. Or set a date for a Christmas Festival as a make-up. That is far enough in advance that it could actually happen.

We want people to get re-engaged with local.

Aftermath – Part 4

So, the Brewers Association has been surveying its membership about, basically, economics and the latest figures are pretty grim…

It’s that 46.4% number that is all that I can see. That means that brewery unemployment is going to spike here in April and May as owners wait by the mailbox for a check from the SBA. I’m not even counting that 15.2% number which are those in more dire straits. Current numbers from a survey of California breweries has Tom McCormick from the CCBA estimating that 15 to 20% of breweries will be gone in the next month or two with 5 to 10% more gone the rest of the year.

Wha would a world with 38.4% remaining breweries look like? Well, I would guess that sales and marketing would have a lot easier times fighting for shelf space. The booking of yoga and comedy and trivia would probably decrease too as extra measures won’t be needed. I would assume that the bigger regionals who had been hurting will love having a large distribution footprint as well when that void needs to be filled.

But it will mean suppliers from hops to cans to labels will have less market to pitch to and industry events might be a little fiercer because of it. Then there is the matter of all that expensive equipment. There will be no ready place for it. And I do not see a rush to take over spaces where fermenters are bolted down either so what kind of creative solution will emerge?

Last Year’s Sales

The Brewers Association released the sales numbers for last year, and normally I would post about it from the standpoint of California brewers or breweries entering or leaving the top 10 but this year, the numbers will need to be viewed against the 2020 numbers as well as the 2021 numbers before you can truly glean some insights.

I expect to see some churn in companies and quite possibly more CANarchy like groupings when we hit the post virus phase. I wrongly expected to see closures aplenty by now but the loans and financial measures seemed to have postponed those, though I still think fallout is coming. Unemployment numbers are going to really start to hurt, really soon. Unless Biden gets elected come November, I do not think there will be much long-term help for small business and especially a small business in California.

I sorely wish that I could do a pro forma, boring post about who is in the lead though.

Netflix & Beer

I have never seen The League and was only mildly amused by That 70’s Show so my hopes are a bit low for this new Netflix comedy, Brews Brothers that starts today. Also lowering my expectation is that the title is Brews Brothers. Not much of reach on the ol’ title tree for that one. Who knows though, maybe the creators had a better title and Netflix marketing chose to go the easy route. Anyway, I will give it a go and if it is worth the time, I will write more about it.

Aftermath – Part 3

The American shipping and distribution system is amazing. You can get something in under an hour. But as we have seen with the run on toilet paper, it doesn’t take much to hobble that system.

This will extend to breweries, and not just with ingredients but with items like the beer container. Kegs are not in vogue. But boy, the amount of Crowlers and sixteen ounce cans needed are rising higher.

But that means that a system built for just in time delivery and expecting only a certain quantity of sales now has to pivot to new market conditions and then will have to change again when this is all over.

Meanwhile, the growler, which has completely lost favor, has had a tiny renaissance as breweries have opened up the taps to any container that they can put beer in.

Supply and demand is in cans already and it will soon be hitting other ingredients too.

YeastTube

White Labs supplies yeast to breweries practically everywhere but they are also known for their education. Their tasting room and same beer, different yeast trials are well known and now they are “launching an online education portal”. Mostly for brewers these “videos are released every month and cover a range of topics.” But maybe the casual beer fan might enjoy while hunkered down at home. Check out the videos HERE.

Aftermath – Part 2

Part of me can fully understand why this might be true but another part asks the question of “if buying beer is hard then how is buying beer ingredients any easier?”

Will that ingredient access is difficult that could offset the cost savings of brewing your own? Also, in my opinion, quality has risen, so brewing a Belgian Wit could be cheaper but if Allagash White is around, why do it. You might have to wait in a line at Trader Joe’s but that pales in comparison to trying to emulate that beer or an IPA from El Segundo or a dark mild that matches Eagle Rock’s Solidarity.

Maybe price will win out and it will be interesting to see if it continues because if breweries close, a new generation of aspirational home brewers will be needed.

All Together

Other Half Brewing Co is taking a page from the Resilience handbook with their new All Together, worldwide beer collaboration. It was “created to raise funds & awareness for the industry we love so much. Regardless of location or circumstances, when one member of the hospitality industry struggles, the rest of the group (including brewers, servers, bartenders, bussers, dishwashers, GMs, buyers, chefs & owners) steps in to help and lend a hand”

More info, “How does the project work? #AllTogetherBeer invites any brewer, from any corner of the planet, to participate by providing the tools needed to make the beer at the lowest possible cost, including an open-source recipe, artwork, and name. In exchange, the collective asks that a portion of the proceeds go to supporting hospitality professionals in each brewery’s own community. The rest should be donated to keeping the brewery in business to weather this storm.”

Go to the website to find out if there will be togetherness near you. I know that Long Beach Beer Lab and Bodega did a version.

Great Beer Names / Labels for April 2020

First up for April is a special sour release from New Belgium, UK Spring Break. This ale combines Earl Grey Tea and red currants and I like the playful tone of the label and the name is just a touch funny too.

The second beer is from right here in L.A.. Mumford Brewing brings Sunnyness in the form of Motueka hops in this NEIPA. It also sports my college colors too.

Beer Buyers Club

The Beer Connoisseur magazine with great 20/20 2020 vision launched a new Beer Buyers Club, a partnership with beer delivery service, Tavour. Breweries are shutting taprooms and sales are limited so a good way to support craft beer might just be to have it delivered to you. I have a friend who has used the service and it worked well.

Head HERE to start checking out the details. Use promo code “BC2020” at the Tavour check-out.