Brookston Beer Bulletin

Jay R. Brooks on Beer

Socialize

Ali Spagnola’s Brookston Beer Painting

By

art-beer
Back in early July, my featured Beer In Art piece was by Ali Spagnola. In Beer In Art #84: Ali Spagnola’s Free Beer Paintings, I detailed how she’s taking requests and doing a new one-square foot painting every day, and then sends it out to the requester, all free of charge. When I wrote about her efforts, she’d done five beer-themed paintings, and I asked for a sixth, which she’s now completed. It’s also up on her blog, Ali’s Art Adventure, under the delicious title Like Cupcakes Mixed with Unicorns, made all the more funny because I actually have a beer cupcake post waiting in the wings.

Spagnola_beer4

I can’t wait until it arrives so I can get it framed and hang it in my home office. Thanks again, Ali, and awesome job.

MillerCoors Launches Craft & Import Division

By

tenth-blake
While MillerCoors had already announced their intention to start up a new division dedicated to its smaller brands and imports, today they announced that Tenth and Blake Brewing Co. was open for business. There’s no website yet, but there is a Facebook page.

Here’s the press release:

Tenth and Blake Beer Company Opens for Business

Earlier this summer, MillerCoors announced plans for a new company focused on craft and import beers, aimed at strengthening relationships within the beer industry and enhancing the overall segment’s volume and growth. Today, to reflect the passion, great brewing tradition and entrepreneurial spirit of its beer brands, the company announced its new moniker. Tenth and Blake Beer Company is now officially open for business.

“This is a unique and exciting period in the beer business,” said Tom Cardella, the company’s CEO and President. “With the added focus on our craft and import brands and the talent within our brewing network, Tenth and Blake Beer Company has the opportunity to make an impact and continue to help grow this segment. We’re made up of passionate brewers and merchants of the world’s finest specialty brews, and we look forward to celebrating the joy of beer with beer drinkers throughout the U.S.”

The organization wanted a name that reflects its great beer heritage from MillerCoors, while highlighting its unique and differentiated position in the industry. The 10th Street Brewery in Milwaukee brews Leinenkugel’s and various specialty beers. And Blake Street in Denver is home to the Blue Moon Brewing Company at the Sandlot. These facilities will be primary sources of many of the company’s brews, while serving as incubators of ideas and future beers.

The company’s network of brewing expertise extends beyond Denver and Milwaukee, with the Leinenkugel’s Brewery in Chippewa Falls, Wis. and the AC Golden brewery in Golden, Colo. In addition to craft brews like Blue Moon, Leinenkugel’s, and Colorado Native, Tenth and Blake Beer Company features top imports, such as Peroni Nastro Azzurro, Pilsner Urquell and Grolsch.

“Employees of Tenth and Blake Beer Company will take beer passion, education and capabilities to the next level,” Cardella said. “All team members will participate in training at one of our breweries, take part in beer merchant sessions and go through sales training to better understand and serve our customers.”

As an independent yet connected company, Tenth and Blake will own the strategic business drivers — marketing, trade marketing and an independent sales organization dedicated to the craft and imports business. The company will in-source other capabilities from MillerCoors, including legal, communications, HR, marketing services and consumer insights.

Hmm, I’m not sure what to make of that. Is it an admission that such a large, global company is too big to think small in the way one needs to for promoting and successfully selling smaller, niche brands? Or is it simply easier to parse out the tasks to two independent groups, one that has to think big picture, freeing the other to think small and more local? On the other hand, with sales of core brands flat or soft, perhaps it makes sense to give more focus to the smaller brands that actually are doing well.

Harry Schuhmacher from Beer Business Daily, reports that “Tom, in a letter to distributors obtained by BBD, writes that they have built a team of ‘brewers and merchants of the world’s finest specialty brews, celebrating the joy of beer with our customers and consumers’ to build a ‘deeper relationship’ with customers.” That sounds a little too rah-rah for my tastes, but then that was probably its intention.

Schuhmacher spoke to Tenth and Blake head honcho Tom Cardella, and he told him the following:

Tom says that their “entire team will participate in specially designed on-boarding programs that will include spending several weeks working inside our breweries and being certified in our beer merchant training. And everyone from the janitor to the CEO will go through sales training to better understand and serve our distributor and retailer customers. We will be an organization of merchants sharing our love of our great beers and creating value in the market.”

The new unit will have a “dedicated new sales organization” that will bring “focus” and they will provide a “dedicated supply chain function to ensure coordination of the fine motor skills needed to service smaller specialty brands” while still providing the services of a big corporation with regards to “legal, communications, HR, marketing services and consumer insights.”

The new unit will develop “distributor beer merchants (DBMs) in a whole lot of markets working side-by-side with you, our distributor partners.” DBMs will be “soley” dedicated to their import and craft brands with dedicated brewery “managers” who will “own and execute the craft and import portfolio for each of their respective management units, delivering wins to our general managers.”

And the Milwaukee Business Journal added:

MillerCoors’ 10th Street Brewery in Milwaukee brews Leinenkugel’s and various specialty beers, and Blake Street in Denver is home to the Blue Moon Brewing Co. at the Sandlot. The facilities will be primary sources of many of the company’s brews, while serving as incubators of ideas and future beers, the Chicago-based brewer said.

MillerCoors also operates the Jacob Leinenkugel’s Brewing Co. in Chippewa Falls and the AC Golden brewery in Golden, Colo. In addition to craft brews like Blue Moon, Leinenkugel’s and Colorado Native, Tenth and Blake Beer Company will be responsible for imports such as Peroni Nastro Azzurro, Pilsner Urquell and Grolsch.

Actually, according to the Facebook page, here’s the list of beers Tenth & Blake will be responsible for:

  • AC Golden brands (see below)
  • Aguila
  • Batch 19
  • Blue Moon
  • Colorado Native (AC Golden)
  • Cristal
  • Cusquena
  • Grolsch
  • Henry Weinhard’s
  • Herman Joseph’s (AC Golden)
  • Kasteel Cru
  • Killian’s
  • Lech
  • Leinenkugel’s
  • Peroni
  • Pilsner Urquell
  • Sandlot brands (Brewmaster’s Special, Ski Brews, Barmen, Championship Amber Ale, Right Field Red, Slugger Stout, Power Alley ESB)
  • Tyskie
  • Winterfest (AC Golden)

That should keep them busy.

tenth-and-blake

Local Union Blasts BevMo Over Employee Treatment

By

bevmo
Wow, this is certainly an interesting development. BevMo, the company where I was the beer buyer for nearly five years in the late 1990s, is coming under fire by the United Food & Commercial Workers Union, Local 5, for their treatment of employees. They were never exactly great to their employees. Like almost every big or growing American company, they squeezed a lot out of their workers, expected long hours from salaried employees. Don’t get me wrong, I liked a lot of things about the job, and met a great many good people — though a fair number are no longer there — but it was demanding in a way that was beneficial to the company, but necessarily to the well-being of the people doing all the actual work. I know that’s a fairly common scenario, but it must have grown even worse, because for a Union to step in and go after BevMo the way they are suggests a level of poor treatment above and beyond the average company.

According to the BevMo Can Afford to Do Better website set up by UFCW-5, they launched a campaign last week against BevMo “[o]n the heels of the company’s August 1 announcement eliminating full time jobs across the chain and under [the subsequent] BevMo rules resulting in the loss of health benefits for the new part time employees, the workers are fighting back.”

BevMo Can Afford to Do Better

BevMo! currently operates 104 superstores, located in California & Arizona. In March 2007, TowerBrook formally announced its acquisition of BevMo! TowerBrook is a private equity firm with $2.5 billion under management. TowerBrook pursues control-oriented private equity investments in large and middle market companies and has committed to making BevMo even more successful. According to BevMo’s CEO, Alan Johnson, sales in 2000 were around $100 million and in 2009 reached well over $500 million. Since Towerbrook’s acquisition of the company, BevMo has opened 40 new stores with plans to open 100 more over the next few years. Clearly, BevMo CAN AFFORD TO DO BETTER.

bevmo-devil

A press conference was held earlier today at Embarcadero and Clay streets in Oakland to explain the campaign to the public. The demands of the workers were laid out, as follows:

  1. Restore Full Time Positions
  2. Restore Health Benefits
  3. Initiate a Wage Increase Immediately
  4. Restore the 401(K)
  5. Union Recognition by BevMo

They’ve also set up a Facebook page about the campaign. And they’ve released a video outlining it, as well.

Hmm, I wonder if they’ll start calling for a boycott?

Mendocino Brewing Acquires Butte Creek

By

mendocino butte-crk-obope
Ukiah’s Mendocino Brewing announced today that it’s acquired Butte Creek Brewing and “will be brewing these beers at its state-of-the-art brewery at Ukiah, CA.” Butte Creek was originally founded Chico, California, in 1998 by former brewers from Sierra Nevada Brewing Co.

From the press release:

Butte Creek Beer — “The Official Beer of Planet Earth.”

Butte Creek’s mission statement has been: “At Butte Creek Brewing, we handcraft award winning earth-friendly organic ales and lagers. Since 1998, we have been committed to producing organic products focused on quality, balance, and true hop flavor. We support organic farming and promote sustainability in our community. We fight against global warming by reducing our carbon imprint.”

Mendocino Brewing CEO, Yashpal Singh, had this to say about the acquisition. “We’re proud to be the brewers of ‘The Official Beer of Planet Earth’. We fully endorse and will pursue Butte Creek’s mission. This acquisition blends perfectly with our own policy of brewing quality, full-bodied ales for the discerning beer lover.”

Mendocino Brewing Company will brew and market Butte Creek brands under its dba Butte Creek Brewing Company.

Anchor Sale Completed

By

anchor-steam
It appears we’re in for a day of beer business news. Anchor Brewing Co. today is officially Anchor Brewers & Distillers, LLC, with the deal to purchase the brewery and the Anchor spirits division now completed by the Griffin Group. They’ve also announced a strategic partnership with Berry Bros. & Rudd, the UK’s “oldest wine and spirits merchant,” which was founded in the 17th century.

From the press release:

“Today marks a major milestone, culminating our work with Fritz Maytag to maintain the time-honored legacy of Anchor Brewing Company in San Francisco,” said Tony Foglio, Chairman of Anchor Brewers & Distillers.

Keith Greggor, CEO of Anchor Brewers & Distillers continued, “In addition to fostering the culture of craft brewing and artisan distilling in San Francisco, there is an undeniable affinity for Anchor beers and spirits around the globe. To support this interest, we’ll be advancing our commitment internationally through a partnership with Berry Bros. & Rudd.”

With a primary focus on the spirits portfolio, Anchor Brewers & Distillers has established a strategic partnership with Berry Bros. & Rudd, Britain’s oldest wine and spirits merchant with a history that spans over 300 years. Through the strategic partnership, Anchor Brewers & Distillers will introduce two of Berry Bros. & Rudd’s award-winning spirits not currently available in the US exclusively in San Francisco in the Fall 2010.

“This is an ideal partnership for Berry Bros. & Rudd as Anchor Brewers & Distillers shares our passion and dedication for fostering the heritage of hand-crafted, premium spirits brands, while also making them available to a growing global market,” added Jeremy Parsons, CEO of Berry Bros. & Rudd Spirits.

With the closing of the acquisition and the partnership with Berry Bros. & Rudd, Anchor Brewers & Distillers is further reinforcing its intention to establish a “Center of Excellence” in San Francisco for craft brewers and artisan distillers from around the world. Much like Berry Bros. & Rudd’s No. 3 St. James’s Street in London, whose doors first opened in 1698, the Anchor Brewers & Distillers “Center of Excellence” will serve as an epicenter of development, education, entertainment and innovation, all designed to further contribute to the culture and heritage of craft beer and artisan spirits.

“Throughout Anchor’s history, quality, tradition and innovation have been cornerstones to its success. There has been an evolution of Anchor’s ownership over the last 140 years with each owner contributing to the ongoing legacy of Anchor,” added Fritz Maytag. “Tony and Keith share that commitment wholeheartedly, as well as a commitment to evolving the Anchor legacy by partnering with companies like Berry Bros. & Rudd that have embraced those same values for over 300 years.”

In addition, the San Francisco Chronicle has more details in Anchor Brewing acquisition is official, in their business section.

A Done Deal: NAB Buys Magic Hat & Pyramid

By

nab
The deal that was rumored late last month is now completed. North American Breweries has bought the Magic Hat, Pyramid and Portland breweries. The deal includes three breweries, five alehouses and one retail store.

From the press release:

According to Rich Lozyniak CEO of North American Breweries, the new beers add craft brewing credibility, and variety to the beers currently offered by the company. “We are really excited to add Magic Hat, Pyramid and MacTarnahan’s beers to North American Breweries. All three brands have a rich history of craft brewing that helps us gain acceptance in that tight-knit community,” said Lozyniak. “By having more beers to offer our customers, wholesalers and retail accounts, we can better compete with the multi-national mega brewers who dominate the U.S. beer industry.”

Along with the new craft beer offering, North American Breweries also imports and sells Imperial, Labatt Blue and the Labatt family of beers. Out of its Rochester brewery it makes and sells the historic line of Genesee beer, Dundee Ales & Lagers, the Original Honey Brown Lager and Seagram’s Escapes.

“The industry has taken a turn away from the mega brewers. We have a collection of regional and heritage brands that position us well among today’s beer drinkers,” said Rich Lozyniak. “At a time when the overall beer industry is in decline, we’re growing across brands which essentially created a great opportunity to collaborate with some of the best craft brewers in the business.”

According to the company, the heritage and brand position of Magic Hat, Pyramid and MacTarnahan’s will be closely guarded. “The credibility that these brewers have developed in the craft beer segment is key to our success. We will work hard to carefully maintain and grow what was passionately created by people who love to drink and brew beer.”

The new brands mean the addition of three new breweries, one each in: Portland, Oregon; Berkeley, California; and Burlington, Vermont. Magic Hat is the 10th largest craft brewery in the country, while Pyramid is the fifth largest. Both companies have a strong following of loyal consumers who love the craftsmanship that go into each unique beer.

Together Magic Hat, Pyramid and the Portland Brewing Co. (MacTarnahan’s) employ about 600 people. Currently, North American Breweries has approximately 500. “We’re a hardworking group of people with a strong track record of brewing beer, building brands and executing in the marketplace,” said Lozyniak.

Interestingly, the press release also includes NAB’s plans and their promise, presumably to consumers and fans of the brands they’ve purchased. That’s not something I’ve seen before, and it suggests they understand how brand perception effects how a particular brand performs, especially to beer geeks in the craft beer world.

North American Breweries’ Plans for Magic Hat, Pyramid and MacTarahan’s

  • The beer will remain the same: it will be brewed by the same people in the same breweries, using the same recipes, ingredients and commitment to artisanship as it has always been.
  • All breweries, Alehouses and the Artifactory will remain open. They provide a unique opportunity to sample and showcase the company’s best beers and brewing capabilities. Through the retail locations, we can talk to customers about the beers they want us to make.

North American Breweries’ Promise

  • We will communicate regularly and openly to our employees and at times — the media — about our business.
  • We put a very high value on our people and believe they are key to helping us compete with the mega, multi-national brewers who dominate the U.S. beer industry.
  • We will grow our brands by introducing them to new consumers and in new geographies through a focused sales and distribution effort.
  • We believe in working with one another to make our company great. We regularly adopt best practices company-wide.