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Terrapin Beer Co. adding 100 barrel brewhouse this fall
(Athens, GA) – Terrapin Beer Co. Co-Founder, Spike Buckowski, reveals nonchalantly in this video that Terrapin is expanding in a big way in 2012. The company is adding fermenters in April and a 100-barrel Rolec system in August. Rolec has built/is building systems for breweries like Stone, Lagunitas and BrewDog. Buckowski expects to be brewing on the system this fall. The expansion will bring capacity into the six-figure range. Financing for the expansion was made possible, in part, from a minority investment by MillerCoors this past year. Co-Founder, John Cochran, said of the financing at the time… First, the loan conversion will allow Terrapin access to more capital from the banking market to fund a $4.5 million expansion to double our brewing capacity. Everyone knows that due to buying the company back from our previous investors we were unable to expand capacity this past year. This has led to severe shortages in several markets of all of the Terrapin beers and even in our home state we have been unable to make enough of our more limited and specialty beers to meet demand. This expansion will allow us to get all our beers back in stock in the 9 states where Terrapin is available and get those high-end, innovative beers such as Hopzilla,Wake-n-Bake, and Moo-Hoo into the hands of more Terrapin fans. Second, Terrapin will begin a full time barrel aging program. We have played around with barrels one or two at a time just for fun. But now we can begin a full fledged barrel aging program and really show people what innovative beers Terrapin is capable of crafting. Oh, and Terrapin Beer Co. is working on a collaboration with Nogne O in Norway, an Imperial Rye Porter, which may or may not be available in the U.S. eventually (they don’t specify). Nogne O has secured a new location in which is hopes to gradually move over brewing operations. Not to mention, Terrapin Hopzilla ships in early March.
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Tenth and Blake Beer Co. update: Blue Moon opportunities and Crispin acquisition(Chicago, IL) – MillerCoors‘ management team, led by CEO, Tom Long, did a Q&A at the tail end of last week’s Q4 earnings call. The team offered some comments on two Tenth and Blake Beer Co. properties, the recently-acquired Crispin Cider and Blue Moon Brewing. — Crispin Cider: Long said the company acquired Crispin because they see it as “the most innovative, the most brand-oriented, and with the best capability to set the American palate toward what the future of cider really is.” That future, the company believes, is in crisp, dry, complex, totally natural cider and not overly sweet, cloying cider. Long also points out that Crispin has a wide range of offerings including barrel-aged ciders. The company plans to move quickly due to a) competitive pressures coming in the segment and b) to steer cider drinkers away from cloying cider for the benefit of the category, as a whole. They seek to quickly double and then quadruple Crispin’s capacity rapidly. They see demand in chain stores and Long says they will have the capacity to serve these customers with consistent supply. They see big potential nationwide, not just in certain markets, albeit it in “select outlets.” As for stemming the wine and spirits categories eroding the beer category, Crispin plays a part in the company’s strategy. “We believe volume will be sourced mostly from wine and spirits drinkers so we expect this to be a mostly additive move.” — Blue Moon Brewing: President, Sales and Distributor Operations, Ed McBrien, offered some thoughts on Blue Moon Brewing. The big opportunities are a) in the grocery channel with seasonal expansion where McBrien says the company is lagging behind some of the leading competitors, b) expanded distribution in convenience stores where craft has traditionally been behind the curve and c) on-premise (both Belgian White and seasonals). New distribution on seasonals was worth over 300,000 incremental barrels to the company in 2011. Blue Moon is now ranked second in the craft category in sales for variety packs and seasonals with a strong 2011 (ranked #1 in craft overall). Blue Moon distribution in convenience stores is in the neighborhood of 50%. In 2011, they gained 20% in distribution points and they think they can achieve 20% growth again in 2012. — On the strength of premium lights (Coors Light, etc.) vs. crafts: McBrien threw out some stats… - Premium lights, in terms of velocity per point of distribution, are the hardest working items in a store (incl. productivity per linear sq. foot) - New item news about premium lights drives more incremental volume than does new item news about crafts - Better lift off of feature support in premium lights than do crafts - Premium light display support drives better results for the retailer (not to mention, better lift from a larger base) - Premium lights are twice as loyal as craft drinkers That said, they have a “both/and” strategy and still believe strongly in the craft segment and think that it is healthy for the category, overall. Finally, McBrien noted that Leinenkugel’s Summer Shandy was a 250,000 barrel business last year (they previously said 200,000 on a past call). He also made it a point to mention that that the company plans to expand Batch 19 this year.
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Cabinet Artisanal Brewhouse strikes distribution deal: 35 states and EuropeBut will it have enough to send around? Take a look at the level of production… Three weeks ago, according to Hawbaker, (Cabinet Artisanal Brewhouse) agreed to a distribution contract that will place its beer in 35 states and Europe in the coming months. Production will be tiny by industry standards: only about 50 barrels per month at first, or roughly 1,500 gallons. Still, for a brewery that hardly exists - Hawbaker has brewed only a handful of test batches, on equipment left behind by Shenandoah - such a deal is unusual. via The Washington Post.
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Hair of the Dog, De Struise to collaborate
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AB InBev, others eyeing Czech brewery, StarBev, valued near $3 billionBeer heavyweights including Anheuser-Busch InBev NV, on the hunt for assets in faster-growing markets, are examining a possible purchase of the owner of Czech lager Staropramen in a deal that could be valued at as much as $3 billion, according to people familiar with the matter. via WSJ.com.
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Carlsberg sales decline 7% in RussiaThe immediate outlook doesn’t look much better. The government’s campaign to tackle Russia’s big problems with alcohol abuse is likely to further damp demand. This year will see a ban on drinking in public places, while kiosks won’t be able to sell beer as of January 2013. Beer sales could fall by a 0.4% compound annual rate from 2011 to 2016, Euromonitor forecasts: Over the same period, Asian markets could grow by 4.8%. via WSJ.
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Rhonda Kallman talk on the rise and fall of New Century Brewing (video)
Feelings about New Century Brewing products aside, this is a worthy watch for those hoping to enter the beer business (and in general, beer people and entrepreneurs). Runtime: 1 hour. In 1983 Rhonda Kallman and Jim Koch created The Boston Brewing Company and launched Samuel Adams Lager. Rhonda tells an amazing story of entrepreneurship, filled with both ups and downs. Today Rhonda owns New Century Brewing and has faced FDA regulations and many other issues. Rhonda is very transparent about her struggles of building this new brewing company. via >> LessEverything.
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Virtue Cider gearing up for upcoming launch(Chicago, IL) – Just listened to the Aleheads podcast featuring Virtue Cider‘s Greg Hall and took a few notes… - Turnaround time from leaving Goose Island to apple harvesting season was only a few months so, for now, enlisting help of a winemaker in Southwest Michigan to produce its cider - Bought 300,000 pounds of apples last fall for this year’s production which have all been pressed and are now in fermentation - First style of cider will be an English/farmhouse-style cider called RedStreak (more info below) which will be available this spring - Has picked out land in Southwest Michigan and has an offer into the bank. Hopes to have an announcement in the next few weeks. - Will start with Chicago and Southwest Michigan markets, will send a bit to New York as well and that will be it in 2012. Will look to add markets in 2013. - Going for draft and cork & caged style bottles instead of 6-packs like Woodchuck - Is excited for the potential of MillerCoors/Crispin deal and impact it will have on cider industry - In general, cider makers have a short season to make fresh cider, they start pressing in September and are generally done by early January - From pressing to serving, it will take them about four months (he notes it can take as short as three days but it depends on what kind of cider you want to make) According to Virtue Cider’s website, “RedStreak is a true English style draft cider. With a hazy vermilion hue, the scent of ripe apples and a touch of oak, RedStreak has a crisp, tart finish that pairs perfectly with your favorite mature cheddar. First grown in Herefordshire and discovered around 1630, The Redstreak bittersharp apple produced a cider so good that it was said to be fit for kings.”
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Manhattan Beer nets nearly $24 million in tax breaks as part of $60 million investment dealThe city approved two multi-million dollar subsidy deals last week for delivery firms to expand in the South Bronx and only one was for Fresh Direct. Manhattan Beer Distributors will receive tax breaks worth nearly $24 million from the Industrial Development Agency to buy and renovate four parcels of land in Hunts Point. The company expects to add at least 25 jobs at the site within three years of opening its new headquarters, in 2013. via NY Daily News.
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Pabst Blue Ribbon beer truck catches on fire
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Stolen Ranger Creek Brewing van recoveredSAPD found our van based on an anonymous call. The ignition is busted, not sure if anything else needs fixing. But it wasn’t torched! They’re dusting for finger prints now… Most of the tools and equipment we had inside are still there, including Rob’s cassette tapes! But she won’t start, so we’re getting her towed to a doctor. via Facebook | Ranger Creek Brewing.
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Flanders Fred Collaborative Ale label revealed(Eugene, OR) – Hair of the Dog Brewing‘s Alan Sprints has revealed the label for Flanders Fred, a collaboration with De Proef of Belgium. According to the HOTD Facebook group, Sprints will leave for Belgium the middle of next week. — Label copy: The sixth edition of the De Proef Brewmaster’s Collaboration Series is our first blended beer. Legendary brewer, Alan Sprints of Hair of the Dog joins Dirk Naudts at De Proef to create this unique bottle conditioned beer. Flanders Fred is a blend of Flanders-sourced lambic with a collaboratively-brewed version of the famous Hair of the Dog Fred. The result is a deep golden ale topped with a creamy off-white head. The nose is complex with notes of lemon, pine, tropical fruits and spice. The palate is rich and layered with toffee, apricot and almond, balanced by some green apple, a hoppy bitterness and barnyard funk. Please enjoy Flanders Fred with food and friends. This beer should pair very well with many cheeses, roasted vegetables and grilled meats. We believe this bottle will continue to evolve beautifully over the next few years, adding a subtle blending of the flavors. Cheers from Portland and Flanders!
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Thirst for craft beer growing in ChinaWith the recent opening of Slow Boat Brewery in Beijing, the city's number of Western-style microbreweries officially doubled - to two. But according to both brewers, there's a growing and largely untapped market in China's capital as disposable income rises and beer-swilling residents clamor for more variety at the pub. Late last year, Slow Boat held an evening tasting of its beers, whose flavor resembles brews of the U.S. Pacific Northwest such as Sierra Nevada. The beer ran out in just 45 minutes, despite the brewery quadrupling its offerings to four kegs from a prior event. via Wall Street Journal.
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New Albanian on Pabst eyeing craft beer segment acquisitions
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Pabst Brewing looking to make acquisitions, take advantage of craft growthPabst Brewing Co. owner C. Dean Metropoulos said he will look to make more beer acquisitions, in part to take advantage of the growing craft market. [...] The company may expand into cider, Metropoulos's son and co-owner, Evan Metropoulos, also said. via Businessweek.
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Samuel Adams Boston 26.2 Brew celebrates 2012 Boston Marathon, Boston Beer Co. anniversaryThe Boston Beer Co., best known for its Samuel Adams line of craft brews, said it is preparing a special commemorative beer to mark the 2012 Boston Marathon. The company is planning to unveil "Samuel Adams Boston 26.2 Brew" at a news conference scheduled for Thursday at the Samuel Adams Brewery. At the conference, Boston Beer is expected to formally announce its first-ever partnership with the Boston Athletic Association, which manages the Boston Marathon. The beer is a low ABV beer made with coriander and salt. Samuel Adams Boston Lager was actually launched during Boston Marathon Weekend nearly 27 years ago in 1985. via The Boston Globe.
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MillerCoors Sales Ops President on craft beer growth(San Diego, CA) – A couple interesting factoids surfaced on Twitter this afternoon from an attendee of The Beer Summit, a beer industry event taking place this week on the West Coast. MiilerCoors President, Sales and Distributor Operations, Ed McBrien, was one of the speakers and had this to offer on the proliferation of SKUs in the craft beer market (admittedly, no idea what the context of the stats were). MillerCoors has more sight to data than most beer companies do. See Project Apollo.
As @fizz_womm asks, what say you?
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Marble City Brewing calls on Marble Brewery to drop lawsuitRemember when the ugly Marble City v. Marble battle surfaced last year? Then, we thought that the two sides had made up and all was rosy? Well, things took a turn for the worse in the many months since, according to Marble City. To be fair, here is Marble Brewery’s original statement from last year. And here is Marble City Brewing’s latest update (pdf) released within the past hour on a battle that has apparently got even uglier. via Marble City Brewing on Facebook.
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Beverage industry lobbyist: mandatory ignition interlocks have implications for on-premise drinking(On mandatory ignition interlocks) they’ll have to be set well below the legal limit of .08 for physiological and legal reasons — since BAC can increase after drinking ceases, they’ll be set as low as .02 or .03, the level most individuals reach after a single drink. Say goodbye to champagne toasts at weddings and beer at baseball games. Interesting read >> Washington Examiner.
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Celebrator 24th Anniversary Party
Steve Atkinson, who does great video work for the Celebrator and others, put together this fun video from last night’s SF Beer Week closing celebration at the Trumer Brauerei in Berkeley. I should give you fair warning; you will have to suffer through not one, but two interviews with yours truly. Enjoy.
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