After releasing a variety case of beer called the “Homebound Hero
24 Pack” on April 21, Hopworks Urban Brewery has raised more than $1,500 for
the Looptworks Foundation. The case sold for $40 with $5 of each sale donated
to the Looptworks Foundation; the donation allowed the foundation to produce
over 400 face masks for Central City Concern, a non-profit organization
providing housing, health care and employment services for people experiencing
homelessness in Portland.
“It was really awesome to
be able to partner withLooptworks on this program,” said Christian Ettinger,
founder and co-owner of Hopworks Urban Brewery. “Our whole industry, like many
others, is going through a rough time right now, so being able to give back in
a meaningful way to other sectors that are hurting is super important. We
couldn’t have picked a better recipient with the Looptworks Foundation and
Central City Concern!”
With the collaboration
concluded, the “Homebound Hero 24 Pack” has now become the “Core Four” case,
complete with the same core four beers: Golden Hammer Organic Lager, Tree Frog
Organic Pale Ale, Powell IPA, and Robot Panda Hazy IPA.
Golden Hammer Organic
Lager features organic Northwest and German ingredients in a new take on
Germany’s most popular beer: the Munich-style Helles. Notes of honey malt aroma
and flavor greet herbaceous and floral hops at the castle door. Tree Frog
Organic Pale Ale is fueled by organic Fuggle, Citra, and Mosaic hops that jump
from branch to branch with juicy, floral notes that deliver the perfect amount
of dank hop aroma. Powell IPA is Hopworks’ flagship IPA that celebrates its
Powell Blvd. brewery, brimming with melon, tropical fruit, and a perfectly
balanced bitterness. Finally, Robot Panda Hazy IPA is fruity and juicy with a
fluffy mouthfeel and notes of spruce, tangerine, and papaya derived from
Denali, Lemondrop, and Cascade hops.
Keep in the know by following Hopworks social channels (everything @hopworksbeer), newsletter, and HopworksBeer.com for more details.
About Hopworks Urban Brewery
Founded in Portland,
Oregon, in 2008 by Christian and Brandie Ettinger, Hopworks Urban Brewery
creates sustainable beer and food with sustainable business practices that
protect the environment and support our community. Family-owned and operated,
Hopworks sources thoughtfully, operates efficiently and minimizes waste in an
effort to protect the planet. The company’s 20-barrel brewery produces 10,000
barrels of beer a year for Hopworks’ brewpubs and distribution throughout
Cascadia. Hopworks is the first Certified B Corporation brewery in the Pacific
Northwest and a proud member of 1% For The Planet.
Growlers and kegs have been staples in breweries for many years. With the bevy of options available to brewers today, choosing the right size, shape and material for these essentials may be an overwhelming task. To make the best choice, brewers need to consider their options as well as the new and exciting innovations in the world of portable containers.
Types of Portable Containers
Growlers can be made with
various materials, such as glass, stainless steel, ceramic and plastic.
Vacuum-insulated growlers go beyond a standard glass growler’s functionality to
keep beer colder and fresher for longer. Some popular models include Hydro
Flask beer growlers, DrinkTanks, GrowlerWerks, 45-Degree Latitude stainless
steel growlers, Yukon insulated beer growlers and two-liter Euro Growlers with
metal handles.
Meanwhile, keg types vary
based on volume, capacity and weight. The most common kegs are sixth barrels,
quarter barrels, slim quarter and half barrels. Consumers also have access to
Cornelius kegs, mini-kegs, one-way kegs and eighth barrels.
With headquarters in
Atlanta, Georgia, Schaefer Container Systems North America manufacturers ECO
KEGS that are lightweight, durable and stackable stainless-steel kegs, and 100%
stainless-steel Sudex Kegs. The company also offers fully or partially encased
Plus Kegs, the FreshKEG and SmartDRAFT keg with flexible small-scale dispensing
systems and Party Kegs that are stylish and easy to use with a gravity-fed
system. Schaefer’s specialty kegs include yeast brinks and cellar topping kegs
that are adaptable by using tri-clover and tri-clamp fittings.
“The most popular are our
ECO KEGS,” said Richard Winslow, the president of Schaefer Container Systems
North America. “These kegs provide immediate brand differentiation, are highly
customizable, and offer significant value-added features and long terms cost
advantages. Also very popular are our Party Kegs, which use a gravity-fed
system with all the utility of a Firkin and none of the hassles.”
Yet there are even more types
of portable containers that are trending and particularly attractive. For
consumers looking for less than the standard 64 oz fill, smaller containers,
like Swig Savvy’s stainless-steel water bottles, are popular. Some breweries
are now equipped to fill 32-ounce crowlers, aluminum cans filled and sealed on
demand that keep the beer fresh until it’s cracked open at its destination.
Best Materials for Growlers and
Kegs
Since the advent of the
modern growler, glass has been a popular material. Easy to clean, easy to fill
and easy to find, glass growlers can be clear or amber color. However, the
material is heavy and easily broken, among other problems.
“Glass has a highly non-porous surface and does not absorb microorganisms which can spoil your beer, but annealing is weakened with use and when subjected to temperature changes. Thus, glass weakens over time or when subjected to an impact and will eventually break,” said John Burns, Jr. of Craft Master Growlers. “Glass is not suitable to be pressurized.”
Based in Tacoma,
Washington, Craft Master Growlers creates the next generation of growlers
forged from high-quality stainless steel and designed for performance and
durability.
Stainless steel is sturdy
and keeps beer cold; however, during filling, bartenders are unable to
determine the fill level accurately, often leading to a loss of product.
However, stainless is sustainable and durable, resists oxidation and corrosion,
and is ideal for pressurization.
Ceramic growlers have a
classy look but are heavy, more difficult to clean and prone to chipping.
Plastic is also used for growlers because of its low cost and low likelihood of
breaking, but is less durable with multiple uses and may cause oxidation in the
beer.
For kegs, stainless steel
is the most commonly used material because it is durable, sterile, long-lasting
and affordable with reuse. Aluminum was once used for kegs because of its
strength and low cost, but is prone to corrosion and runs the risk of being
stolen for scrap metal. Plastic kegs are cheaper, lightweight and stackable,
but they also create concerns about durability, oxidation and exposure to heat
and sunlight.
Emma Shepanek of G4 Kegs
told Beverage Master Magazine that food-grade stainless
steel is the best material for kegs. Founded in the craft beer destination of
Bend, Oregon, G4 Kegs offers high-quality and durable kegs, as well as various
keg services and leasing.
“All stainless-steel kegs
are the most durable, reliable and safest kegs on the market,” Shepanek said.
“There have been recent innovations with plastic kegs, but they are still not
as safe or sustainable as all stainless-steel kegs.”
Refill Policy Considerations
For both growlers and
kegs, there are considerations to keep in mind about refill policies. First,
check local and state laws concerning portable container fills to ensure you
comply. Make sure to openly and publicly share your brewery’s policy about
refills with consumers to avoid confusion.
As a general rule, never
refill a container with questionable sanitation or cleanliness to avoid
compromising a consumer’s health. Brewers may always want to avoid refilling
containers with other breweries’ names and logos on them to avoid
misconceptions about whose beer is inside. Some states have laws against
filling any growler that does not feature that brewery’s logo. Again, brewers
should check state and local regulations for more information.
Many breweries have a
policy of not refilling plastic containers since plastic cannot be cleaned as
well as other materials and is more likely to harbor bacteria. Brewers should
only use and fill containers that maintain the integrity of the beer that
they’ve worked so hard to produce, such as insulated stainless-steel or colored
glass.
Return Policy Considerations
Return policies are
important to have in place if the brewery is in the business of leasing kegs to
consumers. Always provide written policy details to consumers and include
details about how to reserve kegs, the time frame for reservations and the
length of time before it must be returned.
Other important
information to provide includes how long the brewery will honor deposit
refunds, the charge for unreturned kegs and the deposits amounts for barrels
and hand pumps. Brewers may want to advise customers where to park while
picking up their keg and how to properly exchange an empty for a full one.
New Technology for Portable
Containers
The world of portable
beverage containers is continually changing due to new technology and
innovations in the industry. Portable beer systems are gaining popularity by
allowing consumers to pour their favorite beer anywhere. Pressurized growlers
serve as mini-kegs to maintain carbonation levels for longer and even include
customizable tap handles and pressure gauges. Entrepreneurs are even turning
shipping containers into mobile multi-tap kegerators to help beer lovers enjoy
their favorite brews outside the taproom.
Burns of Craft Master
Growlers said that new pressurized growlers substantially extend the longevity
and usability of fresh craft beer for a couple of weeks or longer. This is a
significant upgrade from glass growlers with virtually no shelf life.
“Double-wall insulation
lets you enjoy a cold or hot beverage for hours when outside or on the road.
Oxygen is substituted for CO2, as oxygen will cause the beer to go stale. A
pressurized growler goes beyond just beer, to cider, kombucha, spritzer,
seltzer and more,” said Burns. “At Craft Master Growlers, we are innovating the
CO2 delivery system, giving the user a way to control and monitor the pressure
for the appropriate beverage, and offering ways to infuse and ferment in a
small-batch container. The way we think of it is broadening the appeal and
accessibility of all the great things local craft brewers and homebrewers are
doing.”
Schaefer Container
Systems’ FreshKEG and SmartDRAFT technology allow brewers to pour beer without
CO2 tanks or draft systems. “The CO2 and beer are contained within a single keg
body, and the unit is tapped by an easy-to-use dispensing unit,” Winslow said.
“It’s ‘plug and play’ for the consumer!”
Because kegs have been
designed well and there’s little need for improvement, manufacturers look to
technology as the next big thing.
“Kegs are actually quite
boring and basic,” said Shepanek of G4 Kegs. “The design and engineering of the
keg have already been optimized, so there’s not much to be improved with the
form or function. Yet spear and keg manufacturers continue to innovate to
sustain consistent quality. There are some exciting things brewing in the keg
tracking and software space. Services that give breweries access to their own
data about their keg fleets and that can be used for other business insights
could be really beneficial.”
The Importance of Modern Portable Containers
The demand for portable
beer containers is growing, especially for small batches, and as more beer
drinkers begin thinking about how their consumption impacts the environment.
Beer consumers are a mobile population that’s on-the-go and looking for ways to
enjoy local craft beer while traveling and enjoying the outdoors.
Portable containers are an
eco-friendly option to help consumers control their waste, while also allowing
more access to rare and special-release beers. With the right marketing,
portable containers encourage brand loyalty with greater exposure in the
community and cost-effective refill programs.
Burns said Craft Master
Growlers’ products are ideal for anyone who likes beer, enjoys their local
craft brewery scene, and also homebrewers who want to share their hard work and
innovations.
“Craft Master Growler can be a delight for campers, boaters,
tailgating, picnics and barbecues where a cold and fresh local craft brew is
coveted,” Burns said. “Craft Master Growlers were designed for people who want
a luxury, high-end product for their home, and the professional food service
industry where quality and durability are so important.”
Expert Advice About Growlers and
Kegs
Industry experts who work
with growlers and kegs every day have a lot of useful advice and tips about how
to choose the best portable containers.
“I think most people are
aware that fads come and go, and plenty of companies jump briefly on the
bandwagon,” said Burns. “So, you want to make sure you are not buying a cheap
consumer product that will break or is destined for the basement, the yard sale
or donation center.”
Winslow of Schaefer Container Systems’ said breweries should spend the money to customize their kegs for distribution. “You want to maximize your chances of getting them back!” he said.
Shepanek advises craft breweries to invest in
their own fleet of kegs. “Kegs are a great investment as they can last 30 years
and pay for themselves quickly,” she said. “Leasing is a great option to keep
cash flowing, but make sure it is an ownership-based program. Rental and
logistics options can seem attractive and convenient, but many breweries end up
locked into contracts for services they don’t need.”
There is a compelling evolution in the industry and from our
vantage point, the industry is changing rapidly, every month – week – day! As our country continues to change at the
same rate, so must the beverage leaders to address this rapid evolution.
Change, however, is difficult and having agility built into your company is critical
to success. But, what is success? Many companies struggle with this notion.
When asked “what is your one year and five year plan?” many just do not have an
answer. This results in confusion at the top and bottom of your organization,
as well as with the investment community. Planning is not rocket science but it
is one of the most critical functions that leaders do for their company and
intellectual property (IP). How does your craft company create, maintain and
maybe even increase value?
The number of phone calls we receive at Baker Tilly regarding mergers and acquisitions (M&A) for craft companies has increased significantly during past 18 months. This is a testament to the state of the industry. You can certainly see cognitive dissonance with the hype in relation to the number of brewers, distillers and even distributor licenses issued and in process vs. our M&A conversations.
What is not apparent, is how thin these companies are running. Many are not capitalized appropriately, have poor information systems, lack qualified management, have incomplete infrastructure, understaffed expansion markets, equipment requiring upgrades, and a limited understanding of their customers and markets. Just because sales are up (and that’s not for many brewers) doesn’t mean they are financially sound. There are many investors that haven’t seen any return on their investment and are being asked for more financial support in order for the business to become profitable.
It is not surprising that investors and over-worked managers are looking for an exit. Unfortunately, for many companies, valuations may be disappointing and in some cases, there is little to no interest from new investors in a craft company. These companies have failed to distinguish themselves in the increasing competitive and volatile marketplace. M&A is not a solution for many due to current sales trends, market share and financial performance. Waiting for a deal to break through and rescue investors is only an option for those with well-run operations.
To overcome this
situation, a solid strategic understanding of your business and a supporting
plan is necessary. We are frequently asked, “How do I do this when I am so
busy?” The last thing you want to say to yourself is that we completed our
business plan a few years ago and everything is fine. Can your business really
be fine with the amount and speed of change with consumer and retail demands?
How you answer this question is how people are viewing you both internally and
externally. There are very large companies with plenty of resources looking at
your industry with plans and strategies to capture opportunities and improve
operating performance with an appropriate funding. You must do what they are
doing with a clear strategy and diligent planning processes that address the
consumer, retailer and aggressively play to your strengths as a company.
Understanding your
industry, the trends within it and where you fit, is a critical first step The
beer, wine, spirit and alcohol industries remain highly concentrated in the
hands of the largest suppliers. There are now approximately 9,000 brewers in
the United States and five of them control approximately 80% of the market
share. Currently, there is a record number of distillers and distributors with
licenses and many had aspirations of becoming a top-volume, successful operator
in their city, state, region or even country. It was common to bootstrap the
start-up phase while seeing others raise money from investors. Many began with
multiple founders and received support from family members. Few were able to
jump into business with all of the right funding for their business plan. No
matter how it transpired, everyone is feeling the pressure of shifting demand,
innovation, SKU rationale, minimum wage challenges and receding retail traction
for their brands.
Smaller operators are
trying to keep up with new entries as well as capture interest from
distributors and retailers by blitzing the market with innovations or riding
the wave of the latest consumer fads. Hazy IPA’s, craft spirits, cider, spiked
seltzer, Kombucha and CBD-infused concoctions are all part of the buzz.
Distributors want to make the most profit and retailers want to see SKUs with
high rate of sale. Analytics matter and if you have not figured out how
important it is to transcend beyond the ranking and distribution reports of the
past, then you are missing the boat on getting your team focused on what
matters most. Did you notice that the largest brewer on the planet just
released a spiked seltzer of their own instead of buying one? What does this
signal? Could it be they recognize small brand values are receding?
The share of the pie
continues to get smaller as more people seek licenses to brew, distill and/or
distribute. What we are clearly seeing is the inability to support these
numbers at the retail or distributor level. Those who signed up to own a brewer
and scale it to multiple cities or states are finding it nearly impossible to
make that vision come true.
They are being transformed
into bars and restaurants. Outside sales at retail are too costly to support
and rate of sale with those SKUs is not keeping up with the standards set by
many retailers. Small is fine and perhaps the best way to stay true to what you
do best. Most off-premise retailers (grocery, convenience, packaged liquor
stores) segment brands for the masses. From a supplier standpoint, it is
critical that you have the relationship with your key distributors. How your
brands fit into their local strategy is one of the most important aspects in
your relationship. Owning your marketplace is a great way to stay small, grow
organically and be ready to scale up once the business plan indicates success.
As stated earlier, with 9,000 brewers in the industry, gaining higher market
share than your peers should be the first priority.
Which companies will grow
and which ones won’t? Let’s go beyond the obvious characteristics like quality.
If you really want success, then you must listen to the consumer and those
closest to the front line. Take action and do not deny what you are seeing in
the data or what distributors, retailers and consumers are telling you. There
are plenty of new avenues for consumers to order, understand and even receive
delivery of your product. Disruptors in the market such as Amazon Prime, Provi,
goPuff and Barley Sober are changing the buying habits of consumers. Do not try
to push a rope – pouring additional effort into something that is not getting
traction will upset everyone in the supply chain. Create a strong plan that
covers all the bases and includes funding and support from all stakeholders.
What we are seeing is that
the successful and valuable companies are those that are the most agile and
adaptable. Meaning, they have identified the complexities within their
operations and streamlined them with the help of business intelligence so they
can spend more time focusing on growth. The traditional approach of just adding
bodies to the mix is both costly and ineffective. Having a sound plan for brand
growth driven by data is how you win. As we all know, the consumer is driving
this complexity. Whatever generation you want to target, there is segmentation
happening. How they spend their money needs to be a factor that is applied to
your planning and innovation. The next factor to consider is the occasion in
which the consumers are consuming. Developing your mix shift within each
segment and brand is a very key factor when planning for the now and future.
Addressing these consumer behaviors is critical for knowing what brands and
SKUs to carry.
Connecting the back-office
fundamentals with the front line is another solid key to success. Link your
back office to your front line employees. Speed and trust is critical in the
beverage environment as retailers shift from on and off premise to all premise.
We see great success when the plan fits the market strategy. It is a process of
zooming out and then zooming back in to understand your product attributes and
how they are perceived by consumers to ultimately achieve your objective and
satisfy retailer needs.
Retailers have less and
less time for a sales pitch on your latest brand. Technology has made it easy
for them to figure it out on their own. Your plan of attack should consider
their desire to get to the point of the pitch and be right about how well it
will sell. Call frequencies of your sales team should be developed with the
retailer’s business needs and schedules in mind.
Shareholder expectations
and funding requirements are issues for everyone. Getting the most out of your
resources and applying solid growth strategies are foundational pillars that
keep the focus of your company on profitable growth.
To lead in the 21st century, craft beverage
companies have to rely on innovation and planning. The traditional route to
market is not the same as yesterday. To be successful, understand your internal
strengths and protect your brands and processes. These should be the
cornerstones of your plan and that plan should be a working document that
increases both trust and speed to market for your entire organization.
I met Christian Layke in April 2016, when he was still the head
brewer at the Rockville, Maryland location of Gordon Biersch. Like many others I had spoken to before, and
since, he wanted to open his own brewery.
But, he wasn’t a homebrewer with romantic ideas of going pro with a 5
barrel system and a shoestring budget.
He had many years of education and experience in brewing (in addition to
being a homebrewer) and had grandiose ideas of opening a full production
brewery with a world-class taproom and launching immediately into
distribution. I was skeptical…at
first. I quickly came to realize that
Christian had already developed a clear vision of what he wanted to build and
had concrete plans to get there.
Fast forward to March
2020. Christian and his business partner,
Brett Robison, just celebrated the first anniversary of opening Silver Branch
Brewing Company in Silver Spring, Maryland.
I sat down with them recently to reflect on the legal lessons they had
learned in the three years leading up to their opening.
The “Harajuku Moment”
One of the things that
impressed me most about Christian was that when he first contacted me, he was
already focused on obtaining federal trademark registration of the brewery
name. For many people, this thought
comes much later. But, Christian and
Brett’s story highlights why this should be one of the first decisions.
After conducting a
trademark clearance search on their proposed brewery name, I had to give them
the bad news that not only was it unlikely they could register the name, but
that using it could expose them to legal liability based on another trademark
owner’s rights. This set off a back and
forth discussion of new potential names that lasted many months. In the meantime, they were moving forward
with other phases of their brewery development; we were drafting operating
agreements, deciding how to raise capital, and they were looking for commercial
space. Many months, many names, and many
trademark searches later, we were still kicking around names.
Then they met with their
commercial real estate broker and had what Brett refers to as their “Harajuku
moment;” an epiphany that turns a nice-to-have into a must-have. Any landlord of the type of property in which
they were interested was going to want to know what the branding of the
prospective tenant was going to look like and they were going to want to
negotiate with a company, not two guys with the idea of a company. They needed a name and a branding image
immediately.
They landed on Parallel
World Brewing Company and we filed a federal trademark application on January
18, 2017. On July 18, 2017, we received
a notice of allowance from the trademark office, meaning that the mark could be
registered as soon as they began using it “in commerce.” In the meantime, they formed their LLC,
opened a bank account, applied for their brewery permits, and began lease
negotiations, all under the name Parallel World.
That is when we got a
cease and desist letter from another brewery with a registered trademark that
they felt was too similar. Although we
believed their claim was without merit and that we would likely prevail if they
followed through on their threat to file a cancellation proceeding against the
Parallel World mark, it would have cost Christian and Brett money, time, and
energy, all of which were precious commodities at that point. Since they were still in the planning and
building phase and had not yet opened their brewery, it made more sense to just
abandon the name and try again. As
Christian put it, “if you’re not in business, you have no business being in
this fight… just sigh and move on.”
Ultimately, they feel that
this process ended up benefiting them.
As they went back to the drawing board for a name, they spent
significant time discussing and honing their vision of what they wanted their
brewery to be. It was an amalgamation of
what they consider four key brewing cultures, Belgium, Britain and Ireland,
Central Europe, and the Americas. From
this focus, they developed the imagery of their beer labels using cityscapes of
those regions and they designed their taproom to have sections that pay homage
to each culture. From this concept they
also found their new name, Silver Branch; a nod to their home location of
Silver Spring, Maryland blended with the old world tradition of putting a
branch outside your door to signify that you had beer for sale. Additionally, in developing their new name,
they also ended up with an extensive list of unused names, many of which have
now become names of their beers.
There are two overarching
lessons from this experience. First,
start as early in the planning process as possible to develop a clear vision of
what you want your customers’ experiences to look like. Use this vision to guide your brand identity
and the brewery name. Second, file for
trademark registration on the name as soon as possible. Christian and Brett did everything right;
they hired an attorney, researched the name, filed for registration, and got
approval from the U.S. Patent and Trademark Office, and they still had to
rebrand. If they had waited until they
were open for business before filing their trademark application and then had
to face a cease and desist letter, it could have been devastating.
The “Vegas Clause”
The second thing that
struck me as unusual when I first met with Christian and Brett was their focus
on drafting an Operating Agreement. Many
clients will try to use a form they find online or ask if I have a “standard”
operating agreement they can sign. That
is a huge mistake, because as Brett pointed out to me, “you don’t write these
things for the agreement itself,” rather the value in drafting the agreement
from scratch is that you get to know your partners extremely well and quickly
learn whether you will be able to work together effectively. In preparing the agreement, as Brett put it,
“you put your soul to bare in front of another person and tell them everything
embarrassing about yourself.”
In their case, one of the
defining moments came when we discussed what would happen if one of them were
to die unexpectedly. It’s something most
people don’t think about, but led to us drafting what they affectionately refer
to as the “Vegas clause.”
The discussion began with
two premises: 1) that if one of them died, their ownership interest would pass
to their heirs, and 2) if one of them was divorced the ownership may be
considered marital property, half of which would pass to the ex-spouse. While that was fine on its face, it meant
that the surviving owner could find themselves in a situation where they
suddenly had a new partner who had no brewery experience, perhaps no interest,
and possibly hostile intent.
So, we divided ownership
interest in the business into two classes of LLC membership units; Class A,
which were tied to managerial powers to run the business and had greater voting
rights, and Class B, which had no managerial powers and lesser voting
rights. If one of the partners died,
their ownership interest that was passed down to their heirs was immediately
converted to Class B. The same was true
for any shares given to an ex-spouse in a divorce. So, the heir or ex-spouse maintained the
economic interest without the power to run the business.
The problem was that at
the time we drafted the operating agreement, Christian was married, but Brett
was not. So, when the agreement was to
be signed, we could have Christian’s wife sign her acknowledgement of the
clause that her interest would revert to Class B shares. But, we could not do the same for Brett. This created a loophole where, purely
hypothetically, Brett went on a bender in Las Vegas, found himself unexpectedly
married (with or without Mike Tyson’s tiger in his bathroom), and quickly got a
divorce or was killed and Christian would be stuck with a new partner with
Class A shares, because Brett’s new wife had never signed the agreement.
Thus, the “Vegas clause”
was born. It provided that Christian or
Brett had to provide the company with a signed acknowledgement of the conversion
to Class B clause from their spouse-to-be at least 5 days before entering into
a new marriage. Failure to do so would
cause their Class A shares to convert to Class B. The converted units could be reinstated to
Class A upon receipt of the signed acknowledgement and upon a 2/3 vote of the
Members.
The lesson here is not in
the details of this clause, but that these issues would never have come up if
Christian and Brett had just pulled a “standard” agreement off the
internet. There is tremendous value in
discussing these issues and ensuring that everyone is comfortable with the
relationship. Like an insurance policy,
you hope that these clauses never come into play, but if something bad happens,
it is a relief to know that there is a plan to allow you to move forward.
The “Curve-Ball”
Ask anyone who has opened
a brewery and they will tell you that EVERYTHING takes more time and money than
you expect. With a nod to Helmuth von
Moltke, “no business plan survives first contact with the government.” Christian and Brett learned that lesson
painfully.
The location they found
for their brewery was the bottom level of an office building in downtown Silver
Spring. It was a massive undertaking
that required significant renovation, including raising the floor of one
section of the building to match the rest.
After multiple rounds of discussions with architects and engineers, they
were literally one signature away from getting their building permit. Just then, the person whose signature they needed
last went on vacation. So, their
application went to that person’s boss, who decided that because their proposed
business required a “change of use” for the premises from office use to light
industrial, they were required to bring the entire building up to specification
with the new energy code.
What this meant was a very
expensive upgrade to the building’s HVAC system and a construction delay of
months. After much blood, sweat, and
tears (and money), the upgrade was completed and they celebrated in the moment
captured in the photograph above; Christian and Brett toasting with a glass of
scotch outside the door of what would become their brewery, the building permit
in Brett’s hand.
The specific legal lesson
is that if your proposed location would require a change of use, ensure that
the property is grand-fathered into the old code specifications before signing
the lease. More generally, though, think
through all of the issues as thoroughly as possible before you get started, but
be prepared for the fact that you will be thrown curve balls. Budget for more than you think you will need
(it won’t be) and build a team around you to help navigate the unexpected.
A Year Later
Even with extensive
experience, Christian and Brett faced a steep learning curve in building their
brewery. That didn’t end when Silver Branch opened its doors. Expanding their food service, working with
artists to develop product labels, adding or changing vendors, and building
their distribution network, they have encountered numerous new challenges. But,
it sure is nice to meet those challenges with a glass of world-class pilsner in
their bustling taproom.
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.
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
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.
Origin Malt’s barley roots in Ohio fosters promising growth for the Midwestern malt market
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.”
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.
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.”
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.
