Tag: contract brewing

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Peel the Label – Ballast Point Capacity Shift

In brewing, it is important to be in the right size home when it comes to equipment, space and beer in the tanks.  It is the Goldilocks Conundrum.

I have been thinking about this since the news broke that Ballast Point Brewing had released its Miramar facility to a new owner and that they were going to determine what the best brewing size fit would be for them.  And while that hunt is under way, some beers will contract brewed for them.

But how does one know what capacity is needed?  And also be flexible enough for minor fluctuations up or down?  I theorize that it was harder back when growth was flying upward because as the accelerator is pressed, you don’t know when you will run into traffic. Not wanting to miss out on sales, you press down on the gas in the form of second locations and more tanks and more people power.  

Now, in opposition, is a bit easier to predict because the growth has flattened and you can see a truer demand than before.  A local brewery can figure out how to keep 6-10 taps filled while canning a bit and selling kegs when there is not a block long line out the door.  

But too big can be good overall as it provides contract homes for those breweries that are testing proof of concept or do not have the full funding needed for their own space so a little wiggle room is beneficial.

It is an interesting question and we will see in the next few years who played their cards right especially if Ballast Point turns a corner.

Peel the Label is an infrequent series with no photos or links. Just opinion.

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The Return of Contract Brews

Back in the day, craft beer had brands that were contract brewed. Breweries, especially ones in expensive real estate markets (like Los Angeles) or without the capital for buying mash tuns and fermenters would either provide a recipe or brew alongside workers at a brewery usually far away from their physical location.

Now, those breweries were looked down upon a bit (even by younger, less knowledgable me) as having less skin in the game but as is seen in the bourbon world, contract brands are not seen as less than currently and maybe that might translate into craft beer.

Now there are always pros and cons as is demonstrated in this Vinepair piece about contract distilling. The biggest one for me is the lack of disclosure. You can contract brew an excellent beer but many are just middle of the road. And it is only fair to a consumer that they can easily see that a beer is contract brewed. That way I can find out that Contract Brewery A is only average while Contract Brewery Q is quite good.

And I think that if there were more contract brewing facilities that made it easier to actually have the brewer make the beer on essentially rented equipment close to where they sell to lessen shipping and environmental costs, it could increase quality.

Incubators would be a good model or co-branded taprooms and bars. San Diego has had some luck with the former and Los Angeles has seen shared taprooms in the past and currently with Eagle Rock and Party Beer. They can be effective ways to begin a brewery within financial constraints.

All roads that can lead to a successful brewery should be explored.

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A Central Addition to LA

The name and logo seem just like any other….
Great-Central-Brewing-Company
…but underneath the hood, it is not one brewery but a contract brewery for start-ups. Instead of sneaking in a batch inbetween others. This Chicago facility brews exclusively for others. And the key component is that it will also feature a tap room for those beers to be sold at.

It would be great if each major beer city had an establishment like this. Not only would it prospectively weed out the brewers who are not up to snuff but it would also alleviate the out-of-town drive to the Bay Area or parts way east of the city for LA brewers who want to brew beer before they have a facility.

Just re-name it Grand Central.

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Squid Ink

Some in the beer snob camp have a moral aversion to contract brewing. I do not find it as odious because I understand that there may be people of brewing skill who do not have access to the funding needed to become a fully operational craft brewery. And call it the Trader Joe’s effect but I don’t mind private label brands. To me, the beer comes first. The only downside that I have trouble with is that many of the “brands” don’t disclose the full nature either out of fear that beer fans will consider it not “crafty” enough or because Marketing 101 tells them not to. OK, the other downside is that the current contract brewers seem a bit below average.
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Enter Octopi Brewing who are positioning themselves as “a one-stop shop for new beer brands, established breweries and hospitality chains.” They not only have new German brewing equipment but they also will assist in brand development too. You get brewers and designers.

If this and BrewHub in Florida take off, maybe a California version won’t be far behind.