Category: Brewery

Lessons Learned from Opening a Taproom-Focused Brewery

Cyndi
taproom at pike place signage

By: D.C. Reeves, CEO, Perfect Plain Brewing Co., Pensacola, Florida

Blame craft spirits, seltzer or industry saturation, but the reality today is that craft beer is going to face its biggest challenges yet in the coming years. This is a turning point for the industry, and at a micro level, this challenge can present a turning point in your own market.

  Every brewery should be assessing what it does well, what it doesn’t and coming up with a plan to set itself apart. I wanted to share more of the more unique lessons we’ve learned about where we concentrate our time and resources that could help those thousands of taproom-focused breweries around the U.S. build and sustain their niche.

If you have a brewery you understand the value of top-quality product. We don’t need to cover that part. Let’s dive in on things that can separate you from your competition.

  I discuss a multitude of ways to do this in The Microbrewery Handbook. Graciously, Sam Calagione from Dogfish Head, Jeffrey Stuffings from Jester King and other experts shared their thoughts in the book about what they’ve learned along the way.

  Here are three key things that we learned and adapted as we opened and ran Perfect Plain Brewing Co. in Pensacola, Fla. starting in 2017 that helped us grow to one of the busiest taprooms in the state of Florida.

Taproom Vibe Matters (More than equipment sometimes)

  We spent a great deal of time deciding on the marriage in our budget between equipment “nice to have’s” and taproom. We ultimately decided to gear money towards the taproom and the taproom experience, and we’re thankful for that.

I visit breweries all over the nation that have sparkling new brewing systems and a neglected taproom. Imagine if a restaurant hired the most accomplished chef in New York City, built the most expensive kitchen, then left the dining room with bad lighting, plastic tables and old carpet? Would the chef and kitchen be worth the investment? Of course not.

  Don’t overlook the expenses of creating a great taproom. Having good furniture and fixtures. Good doesn’t mean expensive, it just means if you can afford a $300,000 10-barrel turnkey brewing system, you shouldn’t have your taproom look like a mismatched thrift store.

We can always grow into and upgrade equipment. It’s much, much more difficult to pick up and move a taproom or overcome a lacking first impression if your taproom isn’t up to par when you open.

  We are about to expand into a wood-aging program next door – it’s called The Well and will open this fall. This growth is attributed to us focusing on taproom first, and that success allowing us to do even more on the beer equipment side later.

Focus on Programming Your Space

  In the taproom model, the taproom is your sole business engine. We need to fuel it with events and fun to keep it busy, not just sit back and hope people come in.

  This is something we focused on from the start, but we’ve ramped up significantly in the past year or so. We wanted to be proactive about what brings people into our taproom. When we moved from one manager to two managers, we created an events position that would be charged with just one responsibility: Bring people into our taproom.

  So we’ve done all sorts of things: Drag shows, Harry Potter nights, trivia, we decorate the entire taproom for four days for Pensacon (our community’s version of ComicCon), we do pop-up theme bars in Garden & Grain, our cocktail garden behind the brewery.

  There are other things you can do: Synergize and integrate your brewing schedule and batch planning with your programming calendar from the get-go to give your patrons an immersive experience that has fun beer releases tied to it. A shared calendar with reminders set three months in advance can give you enough time to plan a special beer release, prepare a one-off pilot batch, or order seasonal ingredients for use in a beer for an approaching holiday. At Perfect Plain, we’ve found success with this simple reminder system that we check when we sit down to do our batch planning and raw material orders.

  What NOT to do is get desperate and offer deep discounts on your product as an attraction model. While you may see an increase in taproom foot traffic, you slowly devalue your product to the point that customers no longer desire to pay “full price” because they know they can get it somewhere else.

Learning to care about your employee culture, engagement and hiring well

  One distinct advantage I was fortunate enough to have when opening Perfect Plain Brewing Co. was working for Quint Studer, who pioneered customer service and organizational change in healthcare with his company, StuderGroup. They taught hospitals all over the nation about how to treat patients, treat employees and build winning cultures.

I was able to learn from Quint and adapt some of those tools to the beer business. That said, this also made me realize how much of a forgotten piece of the puzzle hiring and employee culture are in our business. We like to talk about how collaborative we are as an industry, but ask yourself, how are we when it comes to focusing on treating our own employees well?

Here are a Few of the Things We Installed at PPBC

  We have a three-interview hiring process for all positions that ultimately ends with peers making the decision on who to hire. I know, sounds like overkill. Maybe a little crazy. But it works. It allows all parts of the organization to have ownership of new hires and it gives employees the sense of ownership that their opinion on employees matters.

  We are one of the only bars or restaurants in North Florida with less than 50 employees to start offering comprehensive health benefits to our employees for 2020. It’s a significant expense, but an important one to send the message that these jobs are important, these people are important, and their work is important. I’m not saying you have to go to that extreme but think about measures you can put in place that build your employees’ sense of ownership.

  Another key piece to caring about your staff and culture – and a must for us each year – is doing an employee engagement survey. This is an assessment of how your employees feel in many different categories. The value of this is to not only know where you and your company stand with your employees, but it lets your staff know that their opinion counts and is heard. We have made some adjustments each year based on this feedback, so it has proven immensely valuable.

Questions Like:

•    Does the organization employ people whom I like to work?

•    Do my coworkers and I share a strong work ethic?

•    Are many of my coworkers performing at an acceptable level or better?

•    Do I feel connected to my coworkers?

•    Is the work I do meaningful?

  In The Microbrewery Handbook I have more details of how we conduct this survey (it’s not hard!) and the complete list of the 34 questions I ask my employees that could help you get started with your own survey.

  These tactics are especially important with a taproom focused staff. Your taproom staff is the face to your entire revenue stream. You want them happy and feeling a sense of ownership about the company.

For more information about The Microbrewery Handbook or brewery consultation email dc@perfectplain.com

Innovation in Craft Beer is Dead: Long Live Innovation

Cyndi
4 men watching intently

By: Erik Lars Myers

It’s the rallying cry of the craft beer fan: What’s freshest?  What just went on tap? What haven’t I had before?

  Today’s craft beer industry is a vast whirlwind of new. “Rotation nation” we call it, as we tuck our tried and true flagship recipes into the back of the filing cabinet and turn to search for the next new thing to wow the customer with. This industry, with over 10,000 breweries making hundreds of thousands of individual beers each year, is becoming more competitive than ever before. As each brewery fights for their individual slice of market share, it all comes back to that same question “Whaddya got that’s new?”

  Weirdly, it’s an answer that our industry seems to struggle with. The hippest, most sought after breweries in the country are all really coloring from the same box of crayons – lactose laden juicy IPAs, pastry stouts, and fruited kettle sours. It’s the strategy at the forefront of the industry because it makes real money, particularly in a taproom setting selling the vast majority over the bar to customers who are willing to drop exorbitant amounts of money on a case of 16 oz cans. But at the end of the day, the answer to “Whaddya got that’s new?” right now in the industry really seems like, “Some more of the same.”

  Certainly, the small side of the industry is making great strides in technical brewing. We’re reducing TPO and gaining shelf life on small, open air, 4-head canning lines in ways we’ve never been able to do before. But shelf stability isn’t innovation. Our largest macrobrewery competitors have had shelf stability down for decades and longer. We’ve got enzymes available that will cut down fermentation time, reduce diacetyl, promote and stabilize hop aroma, cut gluten chains, and create clear – or hazy! – beer. But buying new products from your chemical supplier can hardly be considered innovative. The suppliers are innovating. Our hop growers are creating new varieties to supply all of our customer’s wildest fruit flavored dreams. We’re the middlemen who put it into beer.

  Most of the innovation in the industry in recent years really comes down to variations on the theme of IPA. American IPA, Black IPA, Brown IPA, Red IPA, White IPA, Imperial/Double IPA, New England-Style IPA, and the most recent brief experimentation, the Brut IPA.

  For years, IPA has been the dominant style in the American market. Leaning on hops, and particularly fruit-forward and citrusy hops, was the defining differentiator for the American craft beer industry in its nascent years all the way through to current day. It is a story that doesn’t exist with any other ingredient available right now. Every other brewing culture in the world uses malt, water, and yeast and (basically) always has. But hops – the American craft beer industry has hops. And not just, “put it in to make your beer bitter” hops, but wide ranges of usage to create wide ranges of flavor hops.

No Wonder it’s Been Our Source of Innovation

  The story of Brut IPA is a good snapshot of what innovation in the craft beer market looks like right now. A brewer – Kim Sturdavant of Social Kitchen and Brewery – had an idea. Use amyloglucosidase – an enzyme used in brewing to help increase saccharification in the mash, or to increase attenuation during fermentation – in a traditional IPA, dry it out as much as possible, build a hop bill that complimented the dry body and malt flavor profile instead of a sticky sweet one and, bam, a new style is born.

It’s a cool – yes, innovative – idea, and one that resulted in some delicious beer.

  But also one that resulted in a mind-boggling range of other results. Shortly after Sturdavant made his Brut IPA, other breweries started jumping on the bandwagon – and why not? In an environment in which “new” is prized, being the first brewery around to make a new style, much less a new IPA, is going to draw some quick dollars, and so Brut IPAs began to pop up around the country with staggering speed. The only problem is that very few of the people making them had ever had one. Sure, it was easy enough to pop “Brut IPA” into Google, read a few articles, and probably find a thread or two in brewing forums describing how people were taking shots at it, but few worked from the source of the innovation, or even tried one before making one. Consumers were presented with a wide, inconsistent range of interpretations of what a “Brut IPA” meant from dry-bodied dank hazy beers, to crystal clear effervescent champagne-like beers, and as a collective style they largely faded from draft lineups as quickly as they appeared as consumers turned back toward what they knew they could count on.

   “New England Style IPA” was arguably the last real true innovation in craft beer. It created something wholly new that the industry hadn’t seen before. Certainly, as it’s evolved, the only reason that we call it an IPA at all is that we don’t have another term for a beer that uses a lot of hops – but that’s the only resemblance it bears to IPA as a style. It lacks any sort of bitterness or clarity, and leans toward overripe tropical fruit flavors instead of the floral, citrus, woody, or dank characteristics that IPAs have exhibited for the known span of IPA history.

  Think on this. The Alchemist’s “Heady Topper” was released 16 years ago. The prototypical example of a “New England IPA” that graces the draft lineup of almost every one of those 10,000 breweries in the country is older than 75% of those breweries and the brewers in them wearing “Make Beer Clear Again” hats. It was years before you could find this style outside of Vermont.

  Since then, there have been years of experimentation and articles written about the virtues of the biotransformation of hop oils during fermentation. There have been whole books put together about the style that include topics like haze stability and how to increase fruit characteristics in dry hopping. Recently, the largest craft brewery in the country introduced one of its fastest growing SKUs, “Hazy Little Thing” as it finally jumped on the trend. Maybe Brut IPA will get there, but I suspect that, like its cousin the Black IPA, it will only see rare comebacks – a fad, not a trend.

  It’s worth arguing that wild Belgian-style, spontaneous fermentation in America fits the same categorical differentiation in many ways, but focused on bacteria and yeast, rather than hops. And it’s true – coolships, foeders, and barrel rooms are being installed at breweries dotting American geography as brewers on this side of the Atlantic experiment with their own versions of spontaneously fermented ale and mixed culture fermentations. However, it’s worth noting that while these beers are being experimented upon and popularized by American brewers, they’re ultimately historic styles. As small brewers we’re mimicking the actions of those who have been there before us. Yes, we’re learning and improving, yes, that can definitely lead to innovation, but it is not (yet) innovation in itself.

The New Forefront of Innovation: Not Beer

  It’s difficult to ignore hard seltzer’s impact upon the brewing industry. In 2019 seltzer exploded into a $1+ billion business and it immediately turned heads. Not only is it a substantial threat to shelf space and customer mind share, it delivers something that most breweries have a difficult time consistently delivering: a completely clean, completely clear beverage. That hasn’t stopped brewers from trying to emulate it, though – and that might ultimately be the basis of the industry’s problem with it.

  For a moment, think through what hard seltzer is as a beverage: a fermented neutral base (either Clear Malt Base, Dextrose, or sometimes even Sucrose), blended with a flavor. While a brewery could use a fruit puree or real fruit additions to gain that flavor, fruit extracts are cheaper, easier, and don’t add pesky colors or haze. From a pure process standpoint, it’s about as far away from crafting a beer as you can imagine, and when your innovative take on a product means, “Make it taste like Dragonfruit instead of Lemon/Lime”, you know that you’re not making great new creative strides forward. Making hard seltzer is the latest in the trend of making a thing that tastes like a different thing. It’s a bubbly water with flavorless alcohol that tastes like a fruit – maybe two fruits!

  That is ultimately the problem that craft beer faces – its fans have fallen down the rabbit hole of mimicry. We are actively helping our customers turn from beer. Those people who are standing in line at hype breweries for milkshake IPAs, pastry stouts, and fruited sours? They’re not really fans of beer. They’re fans of alcohol, and of things that taste like other things. It is the Imperial Stout that they’re a fan of? Or is it Butterfingers and Count Chocula? Are they really fans of the IPA or the fruited sour? Or do they like getting drunk while consuming something that tastes like juice?

  Chasing these customers is a sound financial decision in the short term – but when those same fans turn from the rest of your products because they taste like beer instead of something else, then you’re ultimately undercutting the concept of a brewery – a beer factory – itself and opening the door to eventual obsolescence. When customer tastes shift from juice and candy bars to something else, hope against hope that the thing they shift to is “back to beer” or your future is limited.

  Innovation in beer may be the only thing that brings these customers back – and it’s difficult to know what that looks like. Before the iPod was invented, only a small handful of people could imagine what that looked like. The next new innovation in the brewing industry – that whole new thing that brings people back to beer – could be in your head. It could be in your brewery right now, but we’ll never know if our industry continues to build and thrive upon mimicry.

  Erik Lars Myers is an author, brewer, and lover of beer. He currently works as the Director of Brewing Operations at Fullsteam Brewery in Durham, NC where he strives toward innovation every day while supporting the Southern Beer Economy by using brewing ingredients sourced and grown across the American South.

Soul of the Beer

Cyndi

Origin Malt’s barley roots in Ohio fosters promising growth for the Midwestern malt market

hand grabbing grains

By: Tracey L. Kelley

It’s taken nearly a century, but barley production for craft beverages in Ohio is making a comeback. Victor Thorne and Ryan Lang, the founders of Origin Malt in Marysville, just north of Columbus, are ready to fulfill brewers’ and distillers’ demand for local products. “From seed to sip” is not only the company’s motto but also a source of intention.

  “In 1900, there were over 4,000 breweries in North America. Four of the largest malt houses in the continent were in Ohio, and over 300,000 acres of malting barley were grown in the state,” Thorne told Beverage Master Magazine. “In 1978, there were fewer than 50 breweries, and no malting barley produced in our region. Now, with over 8,000 breweries in the country, and roughly half of the 27 million barrels produced within a day’s drive, we still have no industrial malting plant within 300 miles.”

  Barley was a viable crop in Ohio and throughout the Midwest before Prohibition. After repeal, beer and spirit makers disappeared, and regional farmers switched to more valuable commodities such as corn, wheat and soybeans, growing barley mostly as animal feed. While producers in the Great Northern Plains and the Pacific Northwest provide some access to quality malting barley, crafters in other regions have to look elsewhere.

  “Our craft brewers import the majority of their malt from Canada and Europe,” Thorne said. “Also, craft brewers require more than three times the amount of malt per barrel that they produce when compared to large industrial brewers, so as the craft segment grows, demand for malt exceeds domestic supply.”

  Thorne, a tech serial entrepreneur but no stranger to the foodservice industry, believes in building relationships from the ground up. One of his first ventures provided a solution for process automation software by partnering with titans such as Cargill, Sysco and Tyson. Origin Malt’s co-creator, Lang, is a fourth-generation distiller and co-founder of Middle West Spirits in Columbus. He understood a crafter’s desire for local products. The two opened the malt house in 2015.

  “I enjoy matching complex challenges with experts who can solve them. In the beer, spirits and specialty foods sectors that procure sprouted and malted grains, we require a range of expertise to tackle each of the delicate steps to provide the highest quality products at competitive prices,” Thorne said. “Before taking steps to build a malt house, Ryan and I spent several years forming trusted relationships with the agricultural community, from seed breeding, seed production, agronomists, university researchers, established global maltsters and the end customer—brewers and distillers. Our equity partners represent all of these key relationships.” 

More Than Malt

  “Malt is the foundation of beer—some people may say the ‘soul’ of craft beer. After working in the industry and learning so much about the brewing process—sensory, fermentation and quality—what struck me was that malt sets us up. It’s the canvas with which wort is created,” said Sara Hagerty, sales and marketing director for Origin Malt.

  “The question we want to answer is, ‘Why isn’t barley grown [in the area], and how can we bring it back to the region in a functional, sustainable and economically-impactful way?’” she said. “Victor and Ryan found a way to truly shorten the barley supply chain. For me personally, I could get behind that and feel confident that the groundwork was laid for a revolution in sourcing, procuring and bringing high-quality malt products for brewers and distillers to market.”

  From her passion as a dedicated homebrewer to her work for a leading liquid yeast provider, and later with a global malt provider, Hagerty’s experience helps her envision an integrated purpose for Origin Malt. “Suppliers should be more than salespeople with a price list and a catalog. Suppliers should be educators, listeners and visionaries. From our work with consumers, our customers, and our directly-contracted growers—every step of our supply chain is highly regarded and valued.”

  Supply starts with seed—in this case, that of LCS Puffin, a two-row winter malting barley. It’s derived from the heirloom variety Maris Otter—a popular grain grown in the United Kingdom and appreciated by brewers worldwide. Puffin was initially identified from 50,000 stock seeds by Eric Stockinger, a molecular biologist at Ohio State University, and now bred by the Miln Marsters Group.

  “In the Midwest/Great Lakes region, Puffin is planted in early fall and harvested in late spring/early summer. As a winter grain, the variety comes with some standard characteristics—a well-adhered husk, low protein and winter hardiness. These attributes and more play a part in how we malt it and the flavors it creates,” Hagerty said.

  Base and specialty malts include Pilsen, Brewers, Light Munich, C40, C60 and C90. “Some of the flavors and appeal that Puffin has can be identified in its classic nutty characteristic, and as more pronounced roasted almond flavor in some of our specialty malts,” she said.

  “How we decide on the base and specialty malts we bring to market is based on the general needs of our customers, and also the ability to provide a solid lineup of products that are versatile. Meaning, you could utilize all of them across a set of recipes or pull in one or two for a specific recipe,” Hagerty said. “While our established products exist with industry specifications in mind, we’re always keeping our eye on the opportunity to produce limited-edition specialty and custom products for customers.”

  The company currently uses a partner malting facility, but plans to establish one of its own in central Ohio so, as Thorne puts it, the supply chain shortens to “300 miles from seed-to-sip.”

  At press time, Origin Malt’s products are used in more than 50 beers and spirits, as well as health foods, baked goods and other items. To help producers explore the possibilities, the team frequently hosts beer dinners and “Seed-to-Sip Malt Schools” with brewing and distilling partners using a Hot Steep method to evaluate aroma and flavor.

A Boom for Midwest Agriconomy

  Puffin is sourced from directly-contracted family farms in Ohio, Pennsylvania, Michigan, Indiana and Illinois. Growers in New York are interested, too. Producers in search of a reliable winter cover cash crop have an advantage with Puffin not only because of its cold heartiness and disease resistance, but also its ability to help reduce soil erosion and runoff, improve terroir and water quality, and provide wildlife habitat.

  “By growing winter malting barley in combination with double-cropping soybeans, farms can reduce soil erosion and phosphorous runoff by as much as 80%. This is significant since we’re growing in the Great Lakes region, and phosphorous is the primary feed for algae blooms,” Thorne said. “I didn’t anticipate this being a major discovery that reinforces our commitment to conservation and sustainability.”

Origin Malt expects a 2019–2020 harvest of 10,000 acres, but the five-year projection is 75,000.

  “Puffin has a rich European heritage, and has had amazing results since we began producing and testing the variety—initially a cup of seed—nearly a decade ago,” Thorne said. “Our process and demonstrated commitment to bringing malting barley varieties to large has inspired more interest in our region from seed breeders who have been more focused on developing varieties suited to grow in other regions around the world.” 

  Reintroducing an integral ingredient in a multi-level supply line isn’t without risk, but Hagerty thinks Origin Malt’s best practices are factors growers and crafters can trust.

  “Every crop year can yield slightly different results, and it’s up to us—the maltster—to manage how we adapt and uphold our specifications and adjust our malting protocols. I’m a big believer in that it comes down to how you’re educating and keeping your customer informed—as that relationship needs to be lock-step to make sure that everyone can do their best,” she said.

  “We’re very focused on risk management, which is why we’re strategic in where we grow and how we develop and diversify our growing region,” Hagerty told Beverage Master Magazine. “That being said, if barley volumes or quality were low, there’s an established global market for high-quality malting barley that Origin Malt could procure. Maintaining those secondary-sourcing relationships is something we already have in place in case of a North American shortage or crop failure.”

  Thorne said weather is the challenge he worries about most, but cannot control. “To mitigate the risk of weather damaging our crops, we’re committed to spreading our seed across a several-hundred-mile range from Illinois to the Atlantic coast.”

  The company’s agriconomy roots will filter even deeper in the coming years. “When our plant is at capacity, we’ll be ‘reshoring’ tens of millions of dollars every year from the local researchers, seed sales, malting barley production, agronomists, local storage and transportation, and our malting facility,” said Thorne. “Total economic impact will exceed $2 billion from seed-to-sip.”

  He said he loves all the people Origin Malt works with, “aligning every day to make this a success. I’m driven by the potential to make a sustaining impact on an important supply chain.”

  Hagerty is always excited by the “amazing products made with our malt and watching consumers learn about our supply chain and the processes and products that come as a collaborative effort between Origin Malt, barley growers and our brewing and distilling customers.”

  “The value that our malt house has is in the ability for our future facility and the agricultural economy to tie in more deeply with the craft beverage movement, and most critically with craft beverage consumers,” she said. “Sustainability isn’t just an outlook for the short term, but a long-term goal that will continue to be challenged and achieved with the efforts of our team, our growers, our brewing and distilling customers, and, most importantly, consumers who seek to support American agriculture.”

Making First Impressions Count: Smart Math & Creativity Produce Innovative Design and Manufacturing of Labels

Cyndi
stacks of beer cans

By: Cheryl Gray

Whether beer or bourbon, a distinguishing label serves a dual role in either identifying an old standard or giving consumers a reason to try something new.  

  Craft breweries and distilleries count on the design and production of their labels as a key marketing strategy. Labeling is part of brand identity, a creative process frequently handled by specialists in the field. Among them is Argent Tape & Label, a global, woman-owned business headquartered in Plymouth, Michigan, which makes labels, tapes and adhesives for the automotive, pharmaceutical, industrial, healthcare and food and beverage industries. While it considers itself to be a small company, ATL is big on customer service. Bekah Keehn, who spearheads quality assurance for the company, says its customer service goes well beyond the sale.

  “We are a small, dynamic company whose hallmark service begins with the personal interactions between customers and sales account managers,” she says. “Our sales account managers and customer service representatives are in continual contact with our potential existing customers, and we pride ourselves on listening to our customers. From the moment an inquiry comes through our website or an introduction is made at a trade show or other industry event, and even through successful delivery of the finished label, our sales account managers are engaged with the customer base.”

  Experts say that attractive, cost-effective and environmentally friendly are among the characteristics that craft brewers and distilleries want in their labels. Keehn says that finding the right combination of standard elements and unique creativity is what ATL strives to produce for its clients.

  “Every customer requires different characteristics for their labels,” she says. “Once we speak to our customers and have a thorough understanding of their requirements, we work with our material suppliers to provide the material substrate (underlying layer) for label production.”  

  Durability, Keehn says, is also important. “Some need a very durable label to withstand the outdoor elements, very moist or high heat conditions, while others may need something delicate and attractive or flashy and eye-catching for prime shelf appeal. We consider all conditions the label must ultimately withstand, we review the effect or finish the label should have, we address the color and graphic requirements and we employ several different pricing methodologies to achieve our customers’ requirements. Most recently, we have experienced a demand for sustainable material from our customers, and we now offer metallic, clear and white sustainable materials that we can print on. You would never know the label is specifically designed and considered environmentally friendly!”                                

  With design demands constantly changing, technology plays an integral role in the design and production of product labels. Keehn says that digital processing gives customers a heads-up on possibilities.

  “We employ digital processing and are able to show our customers online samples of what their finished product will look like,” she says. In this way, customers can ask questions, and we can discuss changes without always running numerous, costly physical samples. We can refine the outcome well before running a physical sample so that when and if we do require a physical sample, it is as close to production-ready as possible. Employing technology in this process is invaluable in allowing flexibility and efficiency through the product and design development phases.”

  Some craft beverage makers find inspiration through other kinds of collaboration. Todd Thrasher, owner of Potomac Distilling Company in Washington, D.C., teamed up with a graphic designer to get just the right look for his product labels.

“I hired a graphic designer that I knew and trusted,” Thrasher tells Beverage Master Magazine.

  “I showed her vintage labels for inspiration. We primarily concentrated on bottles from the 1960s and 1970s. I completed a marketing course at Moonshine University (in Louisville, Kentucky) that was focused largely on labels, so I was excited for the opportunity to apply what I had learned in this process. After we met a few times and sketches were developed, I sent three versions of the logo for review via email to a group of 30 people—close friends, family, business owners, etc.  A large majority favored the label that had been my favorite. It was really validating to have the opinion and feedback of others.“

  Thrasher, well-known in the Capital Beltway as both a sommelier and bartender, wanted creative labeling to showcase Thrasher’s logos for his five signature rums—Spiced, Green Spiced, White, Gold and Coconut, all produced in an urban, waterfront D.C. setting on the Potomac River known at District Wharf. For Thrasher, making products instantly recognizable was vital.

  “The most important element is that the label is easy to read and identifiable from across a bar!  I also wanted the aesthetic of a more vintage bottle. I decided not to use shrink wrap and instead went with waxing the bottles for a more handmade approach.”

  Owner input also goes into label designing at family-owned and operated Bron Yr Aur Brewing (pronounced “bron-yar”), located in Washington State’s Yakima Valley. Amanda Hatten, co-owner and Operations Manager, says that in the beginning, the brewery utilized an outside design company, but it wasn’t long before she took over the task. Becoming the brewery’s solo in-house label designer was less about saving money and more about adding a personal touch to the brewery’s brand.

  “This is a passion of mine, and it’s a great way to express who we really are as a company when it comes to working so closely together on designs,” Hatten says. “We have them printed elsewhere. For our crowlers, the main thing is to create fun graphics that are filled with adventure.” 

  There is adventure, too, in developing new innovations for labeling, led by companies like ATL, which tracks market trends. ATL’s sales force has identified a rise in the use of sustainable materials in labeling and packaging. Keehn says the information was priceless. 

  “They brought this trend information in-house, and we put together a cross-functional team that identified, tested and priced out a line of sustainable label substrates,” she says. “We partnered with new and existing material suppliers who pioneered the introduction of sustainable materials into the label market, and now ATL has its own line of sustainable material offerings that are proven compatible with our traditional, Flexo and Domino N610i, digital presses.  In this time of environmental consciousness, we are excited to meet the demand for recyclable labels that utilize less material and may be biodegradable with a low carbon footprint.”

  Above all else, a quality label is long-remembered by the client—and consumers.

  “Producing a quality label is paramount at ATL,” says Keehn. “We take quality seriously, employ standard procedures and processes to assure consistent outcomes, and we spend time prior to production reviewing our customers’ needs and whether and how we can produce their quality label.”

  Some craft breweries and distilleries are opting for full-body shrink sleeve labels. A shrink sleeve label provides top to bottom coverage because it conforms to an entire container’s shape, allowing a complete label identity for any product. It is one of the specialties of PDC International Corporation, a 50-year old company based in Norwalk, Connecticut.

  According to PDC International, converting to a full-body shrink sleeve not only boosts a product’s shelf appeal and visibility but does so at significant savings. A regular, stock container (bottle or can) is generally used, and, with a full-body shrink label, there is no worry about aligning front and back labels. One sleeve, the company says, does the job of three labels, improving consistency, lowering costs and requiring only a single application. In the spirits industry, one full-body shrink sleeve can brand a product on the front, back and at the neck. 

  For breweries, a full-body shrink sleeve conforms to the entire can, covering it 360 degrees. Rather than having to store large quantities of pre-printed cans, full-body shrink sleeves allow a brewery to decorate blank cans when needed. PDC experts say that the process saves warehouse space, pares down logistics and saves money.

  Increasing the bottom line for companies in the labeling industry sometimes means anticipating client needs before even the client can pinpoint it. ATL’s Keehn underscores how communication and innovation go hand-in-hand, citing an appreciation from clients to a commitment to stay on top of industry trends.

  “We attend trade shows and review trade publications to keep abreast of new offerings in materials, inks and methodologies, and we continually expand our product line to offer new and innovative materials and printing effects. As high shelf appeal and unique design are common characteristics of our customers’ labels, we strive to meet the next level of creativity, quality and excellence.”

  That said, creativity, quality and excellence of any label are perhaps best measured by how consumers respond as they peruse store shelves for the multiple craft beer and spirits options competing for their attention—and their money.

Testing, Metering and Monitoring Tools Enable Consistent Brewing

Cyndi
staff checking quality control

By: Gerald Dlubala

Consistency in the craft brewing process is achieved through quality control. Quality control includes regular testing and monitoring of ingredients and processes to achieve consistent results over multiple batches, while also ensuring that all regulatory issues are followed and the risk of contamination is minimized. With new flavor profiles and textures being introduced seemingly daily, a craft brewer needs to practice exceptional quality control to make their beer the best they can, even if it’s a new and unique offering. Craft brewing starts with water, and as a major component, that is where the testing must begin. Quality testers and monitors are a necessity, but so is the willingness and discipline to use them diligently at the proper times.

Simplifying the Chore of Testing and Monitoring

  Milwaukee Instruments Inc., of Rocky Mount, North Carolina, operates on the belief that digital testing technology should be easy to use and available for every level of brewer. They focus on offering affordable, easy to use instruments manufactured from quality hardware. Milwaukee Instruments offers all the most widely and regularly used testing and monitoring products for the craft brewing and winemaking industries, and they do so without the use of test strips. Being known for outstanding capability while packaged in a smaller, more convenient size, their handheld meters can be kept conveniently in a pocket, and feature exceptional accuracy and lab grade performance.

  “Temperature probes, pH meters and a unit like a refractometer that measures Brix are must-haves when brewing craft beer,” said Jason Brown, Operations Manager, North American Operations. “Monitors and meters are used throughout every stage of the brewing cycle. Depending on the type of beer the brewer is making at the time, there are major factors to be controlled and monitored. The initial pH of your water plays a big role in the taste and profile of the beer, whether you’re brewing a lager or a stout, a smooth or a bitter, or anything in between. The Brix, or sugar content, is measured before and after fermentation by measuring density. We have the right testing and monitoring products available for every stage of brewing, as well as every level of brewer.”

  Included in that selection of testers and meters is their turbidity, or haze meter, used to measure clarity by the concentration of undissolved, suspended particles that are present in the beer.

  “All of our instruments are very precise and accurate when taking measurements within the specific applications of pH, temperature or Brix. Our testers and meters are manufactured to be small and wireless, yet durable and waterproof to give a brewer the most convenient and easy-to-use method for testing and monitoring applications. These instruments have withstood the test of time and generally fit all of the required needs of the craft brewer at all levels,” said Brown. “That being said, of course, there are always ways to improve on the current tools and instruments. Brewers haven’t asked for anything that we can’t provide, but faster processing and longer-lasting probes would always be welcomed. The average lifespan of a normal pH probe is 12 to 18 months, so maybe we can improve upon that. More manufacturers are heading towards data logging equipment so brewers can have a historical view of their pH, temperature and Brix levels during different applications.”

  Milwaukee Instruments’ automatic smart controllers continually monitor the required parameters set for the brewing process, including pH and ORP. These monitors dose and adjust the system as needed, 24 hours a day, seven days a week. Automatic monitoring and control systems are nice additions because let’s face it, things happen, and measurements can and will get delayed or forgotten, allowing water makeup parameters to possibly get off track. Automatic smart controllers have your back when needed.

Quality Water Before Quality Beer

  Industrial Test Systems in Rock Hill, South Carolina, knows that water matters in craft brewing, and, no matter what type of beer, it’s best to know the makeup of the water source. Without quality water, there cannot be quality beer. The water chosen for brewing, depending on things like chlorine or other contaminants, affects the sulfide to chloride ratio, how the beer is expressed to the drinker’s palate, and, ultimately, the final taste of the beer. 

  Water hardness plays a significant role in the beer’s mouthfeel. Light beers tend to be noticeably smoother on the palate, and a lot of that has to do with using softer water for brewing. Dark beers can use harder water, producing that familiar stronger or crisper flavor profile.

  All-in-one kits, like the Smart Brew Starter Kit by Industrial Test Systems, can keep water testing on target. The self-contained kit tests for water hardness, calcium hardness, alkalinity, pH, chloride and sulfates. Once brewers get the hang of the basics and are looking to expand their testing, the Smart Brew Professional Kit provides the same testing plus the eXact pH+ Smart Meter System, a Bluetooth enabled, handheld multi-parameter pocket meter that works within their eXact iDip app for both iOS and Android smart devices. This unit can test pH, conductivity, salinity, Total Dissolved Oxygen, Temperature, and Oxygen Reduction Potential using two different probes. The data captured is useful for specific brewer formulas and brewing-specific calculations.

Temperature and pH Determine Results

  “A good pH meter and thermometer are used in all stages of brewing and are, by far, the best friend of the craft brewer looking to produce a quality, consistent brew,” said Casey Thomson, Application Sales Engineer for Hanna Instruments, a world leader in pH and titration science.

  Hanna Instruments is known for developing innovative products, and many are the norm throughout the instrumentation industry. Included in their product offerings are pH electrodes with built-in temperature sensors and waterproof, portable pH meters.

  “As a brewer, one of the most important things to test regularly is the water supply you’re using as source water. If you’re using your area’s general water supply on a year-round basis, chances are your source water is changing with the seasons, and that’s ultimately going to alter and change the taste of your beer. Inconsistency in the taste of your product is something you never want because that’s a good way to lose customer loyalty. Pilsners, for example, are all about the water that they’re brewed from. Guinness will never be exactly duplicated here in the states because of the water that is used as the base.”

  “Craft brewers also need to keep tabs on temperature over the entire process,” said Thomson. “Extra-long probes, like the one we affectionately call ‘The Sword,’ come in very handy to monitor the temperatures down deep into the mash to ensure consistent temperatures throughout. When you do that, you’ll know that you’re keeping the yeast happy enough to form alcohol from the sugars.”

  Thomson told Beverage Master Magazine that refractometers are useful for brewing reports and for measuring the sugars before fermentation. After fermentation, a refractometer measures alcohol content. Many brewers still like to use older style hydrometers, and that’s fine, but they have to use a larger amount of product for a sample. If the brewer offers hazy IPAs, a haze meter is a great addition to their testing instruments and can indicate the amount of concentrated, suspended particles in the beer by measuring the amount of transmitted light through the product.

  “Due to the growth in the popularity of sour beers, we are also seeing increased interest and requests from brewers for a tool to measure lactic acid,” said Thomson. “While we don’t currently have beer-specific units to do this, we do supply these types of testing units to the dairy industry, so the breweries can use those and expect quality, true results. Additionally, being able to measure the alpha and beta enzymes in hops is an area with some interest, so we’re learning more about the science behind as this is an area of business growth.”

  “All of our instruments are generally easy to learn and use,” said Thomson. “It’s more of a situation of having the time to get the measurements done as needed. I always like to show the users what the process is to take the measurements and make sure they know what they’re getting into as far as using our equipment consistently. We get users up to speed in about two hours tops, but we also provide web training through YouTube videos, our online training manuals, etc.”

  Hanna Instruments also provides testers and monitors for the wine industry. Consistent pH measurements are important throughout the process. Their Halo wireless pH meter provides direct readings on a phone or tablet. Their edge wine meter kit is their most popular unit, measuring pH, conductivity/cold stability and dissolved oxygen. It’s Bluetooth capable, able to be carried around and equipped with an eight-hour battery. A benchtop cradle transforms the unit into a tabletop wine lab.

  “Winemakers are more traditional with their processes, so the testing tends to stay more standard,” said Thomson. “Occasionally, you’ll get a winemaker with a science background that wants to play around, experiment and see what happens under different circumstances so that other tests can come into play. But pH is, of course, very important throughout the entire production process, as is the ability to stay aware of free acids and sulfur dioxide that affect both bouquet and shelf life.”

Collaboration is Key in Canadian Craft Beer

Cyndi
blood brotherhood beer

By: Alyssa Andres

With the number of breweries in Canada growing to over 900 this year, craft brewers need to find new ways to set themselves apart from the competition. A series of rotating taps isn’t enough to draw the crowds to the tasting rooms anymore. There are over 300 craft breweries doing that in the province of Ontario alone. Many Canadian breweries are choosing to team up with other brewers, local businesses and people in the community as a way of creating something newsworthy, both in their beers and in their tasting rooms. It’s no longer an “every man for themselves” mentality in the brewing industry. Collaboration is a key component for some of Canada’s most exciting and successful breweries. It allows them to experiment with new techniques and approaches. It also sparks interest in new products while building a sense of community and assisting other local businesses.

  In downtown Toronto, Canada, craft brewers have to battle to be the latest and greatest in the food and beverage scene. The foodie culture is strong in the city, but Torontonians tend to lose interest quickly, so the battle to stay hip is hard.

  Blood Brothers Brewing has managed to stay at the top of the wave since opening its doors in 2015. Owners and actual brothers, Dustin and Brayden Jones, combine innovative brewing ideas and methodical techniques with beautiful design and packaging, making Blood Brothers Brewing stand out amongst the hordes of other Toronto craft breweries. However, that’s not all they’re doing to keep people’s attention. For the brewery’s newest releases, they’ve teamed up with four other Ontario craft breweries to create “The Blood Brotherhood.” The brewery released four beers on February 22nd, each a different collaboration with a smaller microbrewery in the area; Barncat Artisan Ales, Badlands Brewing Company, Short Finger Brewing Company and Rouge River Brewing Company. The limited-edition series sparked massive interest from the brewery’s online following after only a week of promotion. The Blood Brotherhood Imperial Stout with chocolate, coconut and banana, a collaboration with Barncat Artisan Ales in Cambridge, Ontario, sold out all 200 bottles within an hour of release.

  For microbreweries like Barncat, pairing with a reputable brewery like Blood Brothers gives them exposure and instant credibility in an otherwise volatile market. It’s easy for many new craft beer releases to fall under the radar, but a limited release collaboration creates something one of a kind, and people tend to take notice. At the same time, collaborating allows brewmasters to work with other brewers, sharing new ideas, learning new techniques and utilizing different facilities to make unique products they might not otherwise create.

  Powell Brewery in Vancouver, British Columbia, used this mentality when brewing its Ode to Wallflower Pale Ale. Powell has teamed with East Vancouver distillery, Odd Society Spirits, to create a Citra pale ale aged in Odd Society gin barrels. This limited edition 6.2% ABV beer has incredible personality. It is crisp and botanical, with a slight oak quality and smooth finish. A collaboration like this helps both businesses gather attention and create a hyper-local product that speaks to its location.

  Many craft brewers in the Niagara Peninsula are collaborating with local winemakers to create innovative beers that reflect the region. Exchange Brewery in the heart of Historic Downtown Niagara-on-the-Lake, uses grapes from popular local winery, Pearl Morisette, to create their Grand Cru Ale. The ale is brewed with a hint of spice and aged for one year on pressed grape skins. The result is a dry, fruity ale with a deep colour and smooth body. Nearby, in the Twenty Mile Bench VQA appellation, Bench Brewing Company is also using local wine barrels and grapes to brew their beers. Not only that, but they’re also using a plethora of fruits grown in the surrounding farming region. The result is a roster of beers that showcases the land from where it comes. These collaborations help to support the community and local farmers.

  Collaboration is not only happening in the breweries but the tasting rooms as well. Many Canadian craft breweries are choosing to partner with local businesses to enhance the front of house experience and create something authentically local. At A-Frame Brewing Company in Squamish, British Columbia, owner Jeff Oldenborger works alongside local businesses to create a one of a kind haven for people in the community. Local food trucks serve guests regularly outside the brewery, and snacks are for sale from local vendors such as Spray Creek Ranch Pepperoni and Kaylin & Hobbs Pickles. Oldenborger has even partnered with Trae Designs, a local toymaker that creates sustainable and innovative wooden toys, to create “Okanagan Lake,” a play area for children to enjoy while visiting the space. Combined with regular events and live music, the space is a hub for ongoing collaborations within the community, and a popular retreat for locals.

  On Cape Breton Island, Nova Scotia, on the eastern coast of Canada, a similar collaboration is happening between local craft brewery, Big Spruce, and Cabot Public House, a popular local pub. The restaurant has orchestrated a regular “Tap Takeover” with Big Spruce, where the pub pours only their beers for a night, offering locals the chance to try a larger selection of their products. The event draws quite a crowd.

  That’s not the only exciting collaboration for Big Spruce. Each year since 2017, the small east coast brewery partners with the Ocean Tracking Network to create a “colla-BEER-ation” that raises awareness surrounding issues that face the ocean’s ecosystem. The beer, Big Spruce’s “Tag! You’re It!” American-style IPA, doesn’t change, but each year the brewery chooses a new oceanic creature to be featured on the label. The 2019 label featured an Atlantic salmon and raised $5000 for marine conservation. This brought the total amount to $56,000 in donations since the project launched. This year’s featured species will be announced in May, and the donations will continue to help support ongoing initiatives to support the ocean ecosystems.

  On the opposite coast, another brewery choosing to collaborate to do good is Surrey, British Columbia’s Central City Brewing Company. Every April, their Red Racer line releases a special edition beer to raise money for autism research. This year the brewery released a Superfruit IPA. Two dollars from every six-pack and $0.25 from every pint sold at participating restaurants go to the cause. Since 2013, the company has raised $600,000 to help battle autism. Red Racer also collaborates with a slew of craft breweries all over Canada to create their “Across the Nation” collaboration pack, originally released to celebrate Canada’s 150th birthday in 2017. Now in its fourth year, the 12-pack features beers from 12 different Canadian craft breweries, one from each province and territory in the country. Beers range from traditional to entirely experimental, but they each pay tribute to a local monument from their hometown. This collaboration helps put smaller Canadian breweries on the map and builds camaraderie within the industry from coast-to-coast. 

  The ultimate example of craft beer collaboration in Canada is Collective Arts Brewing in Hamilton, Ontario. This grassroots brewery has made collaboration the core spirit of their company. They collaborate every step of the way, not only with other brewers, local businesses and charities, but also with artists and musicians from all over the world. The result is truly remarkable. Each of Collective Arts’ beers displays artwork from a different artist chosen from thousands of applications on a bi-annual basis. To date, over 600 artists have been featured on Collective Arts’ cans. Visitors of the brewery can see the entire collection in the tasting room. A recent three-way collaboration with Chicago brewery Marz Community Brewing Co. and Hamilton Donut shop Donut Monster resulted in the hugely successful “Beady Eyes Pale Ale.” The beer, brewed with blood orange, hibiscus and lactose sugar, to emanate one of Donut Monster’s signature treats, featured art from Hamilton artist Joel MacKenzie.

  Collective Arts’ cans showcase not only artists but also feature different bands and musicians. To take it one step further, the brewery has expanded this alliance and is hosting an event in Hamilton, Ontario, in June 2020. Liquid Art Fest will see over 50 brewers from all over the world pouring their most unique and rare beers. The event will feature live music as well as live mural artists, screen printing and food trucks. Collective Arts has transformed what it means to be a craft brewery and created a company that embodies creativity, community and collaboration.

Canadian craft brewers all over the country are coming up with new ways to join forces and make headlines. Collaboration in the craft beer industry creates the same buzz as a celebrity romance. It’s like a superstar duet featuring two of your favourite bands. Not only does it create a buzz on social media and allow a brewery to network outside of its direct audience, but it inspires innovative ideas and results. It brings communities together and helps local businesses. It encourages camaraderie within the industry and can even support charitable causes. There is no downside to collaboration, especially when the other result is just really good beer.

How Craft Beer Producers Can Incentivize Distributors and Wholesalers to Help Them Go to Market

Cyndi
lone beer glass in front of a beer stall

By: Nichole Gunn, Vice President of Marketing and Creative Services, Incentive Solutions

As a craft beer producer, competition is fierce. According to the Brewers Association, there were 7,346 craft beer producers in the U.S. last year competing for $27.6 billion in sales. That’s a lot of beer! And, that doesn’t even take into account competition from “The Big Five” or import beer for shares of the overall U.S. beer market.

  For craft beer producers who are looking to scale and increase sales, it might be tempting to start pouring your marketing funds into consumer marketing. But will that really make a splash? Think of the hundreds of millions in media spend by beer companies every year that you’ll be going up against.

  Could there possibly be a more efficient way to use that marketing spend? For craft beers producers who are trying to go to market, it’s important to sit down and ask yourself, “Who has the biggest impact on whether or not end consumers find my beer? And how can I motivate them to prioritize my business?”

Understanding the Craft Beer Sales Channel 

  When it comes to connecting with end consumers, craft beer producers have four options:

•    On-Site: Selling directly to consumers at your brewery.

•    E-Commerce: Selling directly to consumers online.

•    Retail: Selling to consumers through other retailers.

•    On-Premise: Selling to consumers through bars and restaurants.

  However, on-site sales are limited by geography and e-commerce sales require brand familiarity or extremely creative (or very expensive) marketing. For a scalable sales and marketing strategy, craft beer producers have to turn their attention to retail and on-premise sales and the indirect sales force that helps them achieve penetration with these vendors.

Incentivizing Distributor and Wholesaler Sales Reps

  Outside of smaller, highly localized breweries, most craft beer producers rely on distributors, wholesalers and other supply chain trading partners to market to retailers and restaurants. Distributor and wholesaler sales reps are responsible for selling vendors on the value of your beer, negotiating pricing and terms of sale agreements and ultimately getting your craft beer to market.

  There’s one small problem: no matter how awesome your craft beer is, it only a small fraction of your distributor or wholesaler’s supply mix. In this battle for mindshare, it’s up to you to educate reps about your brand, enable them to sell your product and supply them with a value proposition that inspires them to take action on your account.

  This is where an incentive program comes into play. When many people think of incentive programs, they think about rewards. But while rewards play a big role in building relationships with your channel partners and adding to your overall value proposition, modern incentive programs take a more holistic, software-driven approach.

  Today’s incentive programs act as comprehensive sales and marketing platforms that enable craft beer producers to:

•   Build mindshare with distributor and wholesaler sales reps.

•   Target promotions by qualifying participant type, regions or product line.

•   Fill data gaps within their channel.

•   Enable sales reps to sell their product to vendors.

•   Deepen relationships with partners throughout their channel.

Building Mindshare with Distributors and Wholesaler Sales Reps

  Sales reps, for the most part, sell what they know. However, in a crowded supply mix, building this awareness and product knowledge with sales reps can be challenging. While every supplier wants something from these outside sales reps, far fewer supplier focus on offering value and creating memorable brand interactions.

  Inviting these sale reps to enroll in an incentive program where they have the opportunity to earn millions of rewards or exclusive incentive travel opportunities (and perhaps giving them a generous point bonus upfront) is more than a nice gesture. It’s a strategic differentiator and an opportunity to stand out from your competitors.  

  Your rewards program also creates new opportunities for communication and engagement that aren’t strictly business. These brand interactions are an opportunity to improve personalization and build relationship capital, which can be difficult to achieve in supply chain partnerships.

Targeting Promotions to Minimize Cost and Maximize Return

  It’s worth noting that a channel partner program is an investment. When planning an incentive marketing strategy, craft beer producers need to focus on maximizing the return on their marketing spend. This means that they should target first and scale second.

  For instance, would it make more sense financially to target your program to the sales and brand managers at the distributor level or the individual reps who work beneath them? It depends on your go-to-market strategy and the size and number of distributors you work with. If you sell through smaller wholesalers with a handful of reps, who each are responsible for a significant portion of your overall sales volume, then it might make sense to structure your program to reward individual sales reps. On the other hand, if you’re selling through a number of wholesalers and distributors, or an extremely large distributor with thousands of reps, it might make more sense to target your incentive programs to sales and brand managers.

  Additionally, from those managers and sales reps, craft beer producers can set qualification thresholds, based on sales volume or engagement, to ensure that their incentive program spend is allocated toward the participants who are most impactful to their sales growth.

  Another aspect of your targeting strategy is choosing to set incentive promotions by specific regions or product lines, based on strategic initiatives and opportunities for growth.   

Collecting More Complete Data Throughout Your Channel

  Craft beer producers, like many other companies who sell into a channel, often struggle with having inaccurate and incomplete data about their channel. Your incentive program is an opportunity to motivate distributors and wholesalers to provide more complete data. There are several ways craft beer producers can use their incentive program to fill in gaps in channel data:

•   Structuring enrollment forms that capture contact information and firmographic data during program registration.

•   Including automated tools for sales reps to attach invoices or other documents as part of the program’s sales verification process.

•   Offering rewards to participating sales reps for referring other reps within their organization.

•   Rewarding sales reps for completing voluntary surveys that can be used to clean up your existing database or collect more information about your participants’ interests, demographic and lifestyle.

•   Analyzing engagement datapoints the program generates to spot highly engaged accounts that are ripe for upsells and cross-sells.

  All of this information can be used to inform your sales and marketing strategy and increase the level of personalization you offer your supply chain partners.

  However, all the data in the world is useless unless you’re able to act on it. Modern incentive software includes CRM integration, data filters, reporting dashboards and custom reports to streamline this data for optimal use.

Enabling Your Distributor and Wholesaler Sales Reps

  Do you know one of the quickest ways to build brand preference with an indirect sales rep? Provide quality sales enablement. Using proven strategies to educate sales reps on your brand and your products makes it easy for them to sell your products to vendors.

  Integrating interactive quizzes and training videos with your incentive program is a powerful tool for supplying your external sales reps with the knowledge they need to sell your beer. This education can be supplemented by your incentive program’s digital communication platforms. (If you use this kind of strategy, make sure to break things up into bite-sized pieces and focus on the highlights your partners will need to help you go-to-market). Additionally, these quizzes are another opportunity for sales reps to earn rewards, increasing the overall value proposition of your program.

Deepening Relationships Throughout Your Channel

  Finally, in addition to short-term sales growth and marketing penetration, your incentive program has another benefit that will have a lasting impact on the success of your go-to-market strategy: relationship-building. Non-cash rewards are a social currency that achieve emotional impact and memorability with sales reps at distributors and wholesalers. In addition to motivating sales growth and reinforcing desired behavior, the rewards your program offers create a sense of personalization.

  For craft beer producers, your distributors and wholesalers are more than just conduits to the end consumer. They are your partners – an indispensable part of your go-to-market strategy. Offering your sales reps the opportunity to choose from exciting rewards or treating top performers to unforgettable incentive travel experiences represents the type of brand interactions that will set you apart from the competition. But more than that, these rewards inspire your distributor and wholesaler sales reps to emotionally invest in your brand and take an active interest in your success.

Unsure About Where to Start? Be Smart, Explore Your Options and Focus on Scalability

  An incentive program can be an integral part of a craft beer producer’s go-to-market strategy. However, what about companies who have never used this type of strategy before? If you are interested in creating a channel marketing program for your distributors and wholesalers, do your homework. Identify a goal for your program and the software functionalities you’ll need to achieve that goal.

  Compile a list of incentive program providers who fit your requirements and who have a proven track record, with case studies and testimonials to prove it. From there, begin reaching out to these providers and enlist their help in planning your incentive strategy. Use these conversations to refine your strategy and learn more about what has worked for companies with similar goals and similar distribution channels to yours in the past.

  Once you’ve decided on a provider, you don’t have to go all in. It’s prudent to start small, maybe with a pilot program or highly targeted incentive promotion. You can always scale, once you’ve proven that you can do this successfully.

  However, it’s also important to have a sense of urgency. As craft beer sales continues to grow, so will competition for craft beer dollars. Beating your competitors to building an incentive program for your distributor and wholesale sales reps can be a major competitive advantage. Plus, you owe it to your future customers to help them find their new favorite beer!

  Nichole Gunn is the VP of Marketing and Creative Services at Incentive Solutions (www.incentivesolutions.com), an Atlanta-based incentive company that specializes in helping B2B companies improve their channel sales, build customer loyalty, and motivate their employees. Nichole Gunn can be reached at ngunn@incentivesolutions.com

Increasing Brewery Cash Flow: Craft Breweries and the R&D Credit

Cyndi
A money bag with the word Cash Flow and a chart with an up arrow

By: Wendy Landrum, CPA, Partner and R&D Advisory Leader; Mark Heroux, JD, Principal, Tax Advocacy and Controversy Services Leader; and Brian Haneline,  CPA, Senior Manager, R&D Advisory

Craft brew popularity is at an all-time high in the United States, with explosive industry growth in the past five years. According to the Brewers Association, craft brewers now make up 98 percent of all U.S. breweries. As new craft brewers continue to enter the industry and existing brewers look to keep up with recent trends, significant financial investments must be made before the first brew can reach the consumer. Whether these costs are related to the formulation of the brew, or how to produce or package the brew, costs can be substantial.

  Fortunately, federal and state governments offer an often overlooked but valuable benefit to help offset these costs in the form of R&D tax credits for craft brewers engaging in “qualifying activities.” 

R&D credits result in a dollar-for-dollar reduction in income taxes and, if applicable, payroll taxes, providing cash flow for future investments. The R&D credit applies not only to new product development, but also to improvements to existing products and manufacturing processes. Importantly, the activities need only be evolutionary to the organization, not to the industry as a whole, to qualify for the credit.

  Because the R&D credit is nonrefundable, startup companies and other small businesses like craft breweries are often limited in their ability to claim the R&D credit in the current tax year because they do not have current income tax liability to utilize the credit. Despite the credit having a 20 year carry forward if not used currently, the company receives no immediate tax advantage from the R&D credit, especially for years in which R&D activities and investments may be high.

Payroll Tax Offset

  However, the Protecting Americans from Tax Hikes (PATH) Act of 2015 allows certain small businesses to offset the R&D credit against payroll taxes instead of income taxes. PATH allows for up to $250,000 of annual federal R&D credits that can be allocated against payroll tax liability. This applies to tax years that begin after Dec. 31, 2015.

  To qualify for the payroll tax offset in 2019, a business must have gross receipts of less than $5 million in 2019 and may not have had gross receipts for any tax year before the five-tax-year period ending with 2019. For example, if the credit-claiming year is 2019, a company must have had less than $5 million of gross receipts in 2019 and no gross receipts prior to 2015.

  The R&D credit may be applied against the FICA portion of payroll taxes beginning in the first calendar quarter following the date on which the business files the income tax return. If the payroll tax credit portion of the R&D credit exceeds the tax liability for any calendar quarter, the excess is carried to the next calendar quarter and allowed as credit for that quarter. The payroll tax election is limited to five taxable years.

Four-Part Test

  Naturally, the question then becomes, what are “qualifying activities” to be able to claim the credit and what costs can be captured? Generally, activities must meet the following four criteria (referred to as the “four-part test”) to include the related wages, supplies, or contract research costs in the R&D calculation:

1.   The activity must be technological in nature. The activity must be based on the principles of a hard science such as chemistry or engineering.

2.   The activity must be for a permitted purpose. The activity must involve the creation of a new or improved level of: function, performance, reliability, quality, durability or cost reduction for a product or manufacturing process

3.   The activity must involve the elimination of uncertainty. The activity must explore what was not known at the start of the project.

      •   Capability: Can we develop the new or                                improved product or process?

      •   Methodology: How will we develop the new                       or improved product or process?

      •   Design: What is the appropriate design of                            the new or improved product or process?

4.   The activity must involve a process of experimentation. Substantially all activities must include elements of experimentation such as:

      •    Evaluating one or more alternatives

      •    Performing testing or modeling

      •    Examining and analyzing hypotheses

      •    Refining or abandoning hypotheses

  A wide range of technical activities related to product or process development or improvement in the craft brew industry may qualify for the R&D credit. Consider the examples below:

•    Developing new or improved recipes and styles.

•    Brewing experimental or pilot batches of new or improved recipes and styles.

•    Performing lab testing, or other functional testing, on new or improved products or processes.

•    Developing new or improved ingredient mixing methods.

•    Developing new or improved yeast strains or fermentation processes.

•    Developing new or improved manufacturing processes.

•    Researching new or improved production techniques.

•    Automating existing manufacturing processes.

•    Developing new or improved processes or methods to prevent spoilage.

•    Developing new or improved bottling or packaging processes.

•    Developing new or improved methods to minimize or treat wastewater.

  For reference, examples of activities that may not

qualify include:

•    General administrative and managerial functions.

•    Sales, marketing and business development activities.

•    Routing data collection (e.g., management studies, efficiency surveys).

•    Day-to-day production activities.

•    Routine quality control and inspection.

•    Maintenance and installation services.

•    Training (even if related to new equipment or technology).

•    Research conducted outside the U.S.

Qualifying Costs

  As mentioned above, the following costs are included in the R&D calculation:

1.  Wages paid or incurred to employees who are directly engaged in qualified research activities, or who directly supervise or support qualified research activities. Qualified wages are computed by multiplying the percentage of an individual’s annual time attributable to qualified research activities against W-2, box 1 wages.

2.  Supplies include any tangible property, other than land and depreciable property, which is used or consumed during the development process.

3.  Payments to third parties to perform research and development activities on your behalf. The services must be performed within the U.S. and you must have financial risk (with T&M or hourly contract terms paying for the services versus final product).

  There are two calculation methodologies to consider, alternative simplified credit and regular credit, both with alternatives for start-up companies.

Documentation Requirements

  Federal and state regulators focus on whether a taxpayer can document: 1) the process of experimentation, and 2) the development of a new or improved product or process (also referred to in a research credit discussion as “the business component”).

To maximize the credit taxpayers are well-advised to conduct a disciplined, documented research process. It is important to document every step of the research process, particularly the process of experimentation used to eliminate uncertainty and the identification of the business components, i.e., the new or improved product or process. Sales increases and customer surveys will help to identify improved products, but will not be conclusive. It’s the contemporaneous recording of the research activity that will carry the day in an IRS exam.

  It’s also important that breweries identify the amount of time that professionals spend performing qualified research activities. Time tracking software that identifies the various activities that take place when creating a new or improved product or process is the best option to document time spent by professionals in the conduct of qualified research activities. Taxpayers that do not use time tracking software generally use estimates provided by the research professionals, through the use of time surveys, as to the percentage of time that they spend conducting creditable research activities.

Case Study

  To see how the credit can benefit a craft brewer, the following case study is instructional. In this example, XYZ Brewery in Texas wants to design a new brew from scratch. Once research is conducted to determine the ideal end product (and this research should qualify for the R&D credit), here is the process employed by the brewer (pre-bottling) and who is involved:

  General R&D process including potentially qualifying activities:

1) Mashing – malts are mixed with adjunct flavorings and liquor (pure water) and heated to allow enzymes to break down starch into sugars.

2) Lautering – consists of three steps: mash out, recirculation, and sparging.

3) Hops boiling – once the mash is sparged, the resultant wort is sent to a hops boiler where hops are added for flavor and boiled according to a recipe hops schedule.

4) Fermenting – the wort is sent to a fermentor where the sugars undergo fermentation, via the glycolysis which causes a chemical reaction.

  Who might be involved in the process:

1) Head R&D Brewer

2) R&D Brewery Manager

3) Production Manager

4) Assistant R&D Brewer

5) Brewery Quality Control/Lab

The brewer in this case provides their tax advisor with a W-2 box 1 wage listing and supply expenses for the current and previous three years, and had no contractors that assisted with the development process. Your tax advisor conducts technical interviews with the employees below to help identify the qualifying activities and to allocate a percentage of time to each qualifying activity:

  Assumptions:

•   Head R&D Brewer’s time qualifies at 100%

•   R&D Brewery Manager time qualifies at 100%

•   Production Manager’s time qualifies at 50%

•   Assistant R&D Brewer’s time qualifies at 100%

•   Brewery Quality Control/Lab’s time qualifies at 100%

  Qualified supply expenses by year:

•    2018: $60,000

•    2017: $50,000

•    2016: $50,000

•    2015: $40,000

  Once the data is gathered, analyzed and quantified, your tax advisor calculates a federal and state R&D credit. In this case, the brewer will generate a federal credit of $10k and a Texas state credit of $6k.

  As can be seen from the case study above, the R&D credit can be a valuable tool for craft brewers to help offset startup or other operational costs, either in the way of credits to offset tax liability or refundable payroll tax credits in certain cases.

  While it may not be readily apparent that the R&D credits are in-play for the craft brew industry, many craft brewers have taken advantage of this opportunity. Craft brewers should take notice of the activities that they engage in and consider whether R&D credits might be an option.

For more information, contact the authors at Baker Tilly or 608-240-2334.

Distribution Agreements: Negotiate Your “PreNup” Carefully

Cyndi
Business people shaking hands, finishing up a papers signing
Business people shaking hands, finishing up a papers signing. Meeting, contract and lawyer consulting concept.

By: Brian D. Kaider, Esq.

Starting a brewery requires learning a lot of new skills and practices that have nothing to do with making great beer.  One of the most confusing and frustrating is the issue of distribution.  If their state allows, most new breweries initially distribute their own products and, if the brewery is content to be relatively local, that might never change. 

But, in many cases, brewery growth necessitates working with a distributor.  This is not a relationship to be entered into lightly. A distributor becomes an ambassador for the brewery’s brand and, once retained, the supplier may have little control over how its beer is marketed. Further, these relationships can be difficult or financially impossible to break once established.

  Supplier/distributor relationships are governed by franchise laws in most states. In the absence of franchise laws, the relationship is defined entirely by a distribution agreement between the parties. But, even in franchise states, the distribution agreement can play a critical role, particularly in the termination of the distributor relationship.

  Too often, however, breweries accept a distributor’s “standard” agreement and when the relationship sours, the supplier finds that they are stuck with no viable option to terminate. The best practice is to engage an experienced attorney to negotiate the terms of the distribution agreement. While even the best attorney cannot evade state franchise laws (which generally prohibit a distributor from waiving its rights), there are ways an attorney may help bring balance to the supplier/distributor relationship.  Some of the key terms to negotiate include termination, territory, brand scope, and exclusivity.

Termination

  The most critical section of the agreement sets forth the manner and circumstances under which a supplier may terminate the distributor. In a franchise state, the law typically says that a supplier may terminate for “good cause.” If good cause is defined in the law, it is paramount that the distribution agreement mirror the language of the law, because in many cases, a contract that contradicts the law will be held invalid, leaving the supplier in the position of effectively not having an agreement at all.

  For example, the Virginia Beer Franchise Act states that good cause includes “failure by the wholesaler to substantially comply, without reasonable cause or justification, with any reasonable and material requirement imposed upon him in writing by the brewery.”  Further, the Act provides, “good cause shall not be construed to exist without a finding of a material deficiency for which the wholesaler is responsible.”  Tracking that language, a distribution agreement in Virginia should clearly define certain of the distributor’s obligations as “material requirements” and explicitly define certain actions as “material deficiencies.” 

For example, the Virginia law identifies failure to “maintain a sales volume” of a brewery’s brands as being a reasonable and material requirement.  But, the law does not specify what volume is required.  So, the distribution agreement should clearly lay out specific minimum sales volumes (preferably on an escalating scale) and identify the requirement to hit those volumes as a material requirement of the contract. 

  When the law does not define good cause, and in non-franchise states, it is essential for the distribution agreement to do so. The contract should clearly set forth the distributor’s requirements that are critical to the business relationship and for which failure to perform will be grounds for termination.

Examples of common requirements include: meeting specified sales and marketing goals, maintaining appropriate records and reports regarding inventory and sales, transporting and storing the product under specified temperature and lighting conditions, exercising adequate quality control measures to ensure product freshness, and paying invoices within a specified time frame. It is also common to include termination rights if the distributor is declared bankrupt, enters a voluntary’ petition for bankruptcy, enters into a compromise or agreement for the benefit of its creditors, or fails to maintain in good standing all Federal and State licenses and permits necessary for the proper conduct of its business.

  In some cases, sale of the distributor or even a change in the ownership structure may be justification for termination.  In February 2019, Bell’s Brewery of Kalamazoo, Michigan completely pulled all of its distribution in the Commonwealth of Virginia.  The issue was that its distributor in Richmond was sold to a subsidiary of Reyes Beer Division, the largest distributor of beer in the United States.  Per its distribution agreement, the original distributor was to have provided Bell’s with certain information about the sale to Reyes, but it failed to do so and Bell’s believed that because it did not have the opportunity to properly vet the new distributor, termination of the franchise was warranted.  To this day the dispute has not been resolved and Bell’s beer is not available in Virginia.

  In most states, a supplier must compensate the distributor for the lost business even if the supplier is able to terminate for cause.  Sometimes the law simply says the supplier must pay the distributor the “fair market value” of the distribution rights.  There can be an expensive battle just to determine that compensation if fair market value is not defined in the distribution agreement.  Often the value is defined as a percentage of the prior year’s case volume multiplied by some dollar amount per case. The “standard” contracts pushed by some distributors can be very severe in this section. In the beer industry, it is not uncommon to see values set at an entire year’s worth of profits times a multiplier that can range from 1.5 to many times higher. In practice, often a new distributor will buy out the distribution rights from the old distributor, but if the supplier wants to return to self-distribution, this buy-out provision may be cost prohibitive. 

  While the beer franchise laws in most states were written at a time in which large beer manufacturers had significant market power over small distributors, those roles have substantially reversed.  Slowly, state laws are being revised to accommodate this change.  In Maryland, for example, the law changed on January 1, 2020 to eliminate the “for cause” provision of termination for suppliers who manufacture fewer than 20,000 barrels per year and the termination notice was shortened from 180 days to 45.  However, the manufacturer still has to give the terminated distributor fair market value of the franchise.

Territory

  Depending on the size, experience, and reach of the distributor, there may be an opportunity to creatively carve out different territories. Territories are most commonly limited to certain states. However, a supplier may be able to limit a smaller distributor to certain counties or even specific types of establishments (grocery stores, but not restaurants, for example). One of the clearest breaches of the distribution agreement, that may constitute good cause for termination, is for a distributor to make sales outside of its contracted territory. 

Brands

  Generally, when a distributor is hired to carry a brewery’s brand, it has the right to all of the products in that brand. But exactly what constitutes a  ‘brand” is unclear both in the statutory language of most state franchise laws and in many distribution agreements. 

In Maryland’s beer franchise law, for example, “brand” is not explicitly defined, but the law appears to favor the distributor in terms of brand scope. Specifically, section 105 of Maryland ‘s Beer Franchise Fair Dealing Act prohibits a brewery from entering into a beer franchise agreement with more than one distributor for “its brand or brands of beer” in a given territory. One might argue that the language “or brands” means that the first distributor has the right to all brands of the manufacturer in a given territory.

In fact, that very’ issue was litigated in the 1985 case of Erwin and Shafer, Inc. v. Pabst Brewing Co., Inc. and Judge Couch, writing for the panel of The Court of Appeal of Maryland, disagreed. The court held that if a brewery retained a distributor to handle one or more of its brands within a territory, it could not then contract with a second distributor within the territory for those same brands. It could, however, contract with a second distributor to carry a different set of brands.

  How far the court would take its interpretation of what is a “brand” is unclear, however. In the Pabst case, the first distributor was given the right to distribute Pabst brand beers, but Pabst later merged with Olympia Brewing Company and gave the second distributor the right to sell its newly acquired Hamm’s brand beers. Whether the court would have allowed the brewery to contract with one distributor for Pabst and another for Pabst Extra Light it did not say.

Exclusivity

  Even if rights under a distribution agreement cannot be divided by brand (as in the case of the beer franchise law in Maryland), some states may nevertheless allow a supplier to contract with more than one distributor within a territory. If permitted in their state, a brewery should ideally enter into all of its distribution agreements for a given territory simultaneously, providing notice to each distributor. At a minimum, the brewery should ensure that the first agreement entered into is explicitly designated as non-exclusive. Otherwise, the distributor may view the agreement as giving it exclusive rights to the territory and could sue the brewery for diminishing the distributor’s business if it were to engage a second distributor in that territory.

Final Thoughts

  Whether a brewery is in a franchise state or not, it is critical that it review and negotiate its distribution agreements carefully, with the assistance of an experienced attorney. It is also important to remember that the supplier’s diligence does not end when the agreement is signed. No matter how well the terms of the distribution agreement are negotiated and drafted, they are effectively useless if the supplier cannot back up its claims for good cause.

Accordingly, thorough documentation is essential. If a distributor is not meeting sales goals, mishandling product, or failing to provide adequate reports, they must be given written notice of those deficiencies each time they occur.

  There are great distributors out there who become essential partners in a brewery’s business. But, sometimes those relationships can sour and signing an agreement without anticipating complications down the line can make it virtually impossible to sever those ties. A little forethought and planning and a lot of diligence will go a long way toward a successful termination of a bad relationship.

  Brian Kaider is a principal of KaiderLaw, an intellectual property law firm with extensive experience in the craft beverage industry. He has represented clients from the smallest of start-up breweries to Fortune 500 corporations in the navigation of regulatory requirements, drafting and negotiating contracts, prosecuting trademark and patent applications, and complex commercial litigation.

HOP SENSORY: Benefit to Growers & Brewers

Cyndi
people having beer taste test

Just because something is fun to do, doesn’t mean there isn’t a robust science involved. Case in point: beer sensory. My relatives like to joke that they also studied beer sensory in college, but I think the readers will be aware of the difference between running a carefully randomized tetrad test and doing a keg stand on a football player’s front porch. To properly conduct the science of beer sensory, you start by finding 16-or-so willing participants (shouldn’t be difficult) to undergo rigorous beer flavor training and validation. Through this training and validation, you ensure that everyone is speaking the same flavor language, describing specific flavor-active compounds in agreed-upon terms.

  While technology has come a long way in helping us describe the chemical reactions taking place on brew day, quantitative data from analytical equipment falls short in describing the sensory experience of drinking a given beer – good news for your 16-or-so panelists. The human nose is capable of detecting millions of aromas, and more importantly, humans are capable of linking these aromas to incredibly specific real-world objects like guavas or jasmine flowers. It’s an impressive feat, and in this particular battle of Human vs Machine, we’re winning. 

Beer Sensory in a Hop Context

  Beer sensory is important to the industry, but it’s far too time consuming and resource intensive to assess every lot of hops during harvest this way. Enter: hop sensory. The process of gathering and training panelists is similar to that of beer sensory, but the results are produced a lot faster; thousands of samples can be assessed within a harvest period. This allows for ruined harvest lots to be eliminated from the get-go before expensive resources go into processing them. Hop sensory produces a clear snapshot of different varieties from different growers, harvested on different days, so that brewers participating in hop selection can get exactly the product they’re looking for each crop year. Using this data, we can reveal how the sensory characteristics of each variety are evolving over time.

  However, due to thousands of reactions that take place during brewing, the key aromatic compounds identified in hops have undergone many changes by the time they make it into the final product, if they even make it at all. When brewing, hop compounds are modified by thermal reactions, yeast biotransformation, chemical conversions such as oxidation/reduction, hydrolysis, isomerization, ester exchange, and even evaporation. During fermentation, for example, yeast metabolic activity will biotransform geraniol (a bed of roses) into β-citronellol (zesty lemon), completely changing the aroma characteristics of the beer. So, it’s not only necessary to apply sensory to hop aroma, it’s vital to also focus on the aroma compounds present in the end product – the beer brewed with these hops, to fully understand which hop characteristics are of the greatest importance to brewers. 

  To complicate matters further, brewing components like malt and yeast contribute to flavor in varying degrees depending on the beer style, and hops contribute non-aroma characteristics to beer such as bitterness, mouthfeel, and haze, all of which are important to monitor and assess in order to fully understand a hop’s full contribution to beer.

Benefit to Growers

  Hop growers are beginning to identify the specific genes responsible for producing certain flavor compounds and can use beer sensory data to zero in on the ones that actually make it into the final product.

Beer sensory assessment acts as a helpful stage in filtering through the thousands of experimental varieties that breeders develop to determine the lucky few that will be planted on a large scale and eventually released to the public. The whole process of new varietal development takes upwards of 12 years, with only one in every 10,000 new hop varieties ever making it to market. This lengthy, arduous, and resource heavy process relies on sound assurances that beer drinkers will embrace a new hop, in turn giving brewers a reason to welcome it onto their brewing schedule.

  At the other end, when growers wish to tweak production to increase efficiency, beer sensory can make sure that any changes have not negatively impacted sensory attributes of the final product. From optimizing harvest windows to dialing in the perfect kiln temperature, growers use beer sensory feedback to guide the decision-making process.

Benefit to Brewers

  Brewers ask a lot of questions. How do I get my beer to taste like starfruit? When in the process should I add hops to achieve a perfect balance between fruity and bitter? How will dry-hopped beer behave over time in different storage conditions? Answers to such questions are critical for success, but not all commercial brewers have the luxury of committing precious resources to pilot brews in order to find them. Beer sensory scientists can glean important information from brewing the exact same beer multiple times, tweaking only single aspects (like hop variety, hop addition timing, or storage conditions). The results of sensory analysis on these experiments can be passed to brewers, saving them time and capital, and optimizing the quality of their outputs. 

  The results of beer sensory studies also help brewers by guiding hop blend development to meet specific market demands. For example, an additive effect has been found to exist whereby the coexistence of linalool, geraniol, and β-citronellol creates a strong flavor impression of lime – crucial information in a time where citrus flavors in beer are fervidly sought, making access to hop products developed using this information incredibly valuable.

  To put it simply, brewers just want to make good beer that people like, and sensory assessment is one weapon in the arsenal that can be used towards that goal.

The Circle of Sensory

  Hops growers, brewers, and the beer market are linked in a never-ending feedback cycle. Growers develop and produce a hop variety, brewers use it to make the best beer they can, and the market lets us know what they think with their dollars. That information gets passed back to growers, who can adjust according to what the people want.

  And the stitches linking this whole process together? You guessed it. Beer sensory.

  Written by Tessa Schilaty, Sensory Coordinator at Yakima Chief Hops

  At Yakima Chief Hops, we have invested in a robust hop and beer sensory program, dedicating time and resources to gathering this valuable information in-house that we then share with our industry partners. Trained YCH staff members from all areas of the company meet regularly to taste, sniff and evaluate various beers and hop varieties with the guidance of our own Technical and Brewing Innovations teams. Drinking beer is a tough job, but our employees are happy to take one for the team!