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The Profitability Of Craft Beer

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selling-craft
Like several people tonight, I also got a press release from Greg Koch of Stone Brewing. Stone Brewing has “made a video called ‘Craft Beer Profitability’ that lays out the business case for selling craft beer. [They] believe, and early feedback affirms, that it will be a valuable tool in educating restaurant and bar owners about the benefits of selling craft beer.” Their goal “is to help restaurant and bar owners understand why it is in their best interest to offer great beer choices.”

The video is below, but can also be found at Selling Craft Beer. And you can also download it from there, too, along with a few companion videos that expand on the information in the main one.

If you’re already a beer geek, you’ll probably know and agree with much of the video, but it’s aimed at bar owners who may not yet understand what all the fuss is about craft beer and hits them where they live: profitability. I think it’s a great idea, and hope many bar owners will watch it. The time is right. The numbers definitely bear that out. In some better beer communities, people get it — Philly’s a good example of a place that gets it — but in my experience most do not. In many cities, even in San Francisco, there is a good number of better beer bars, but a majority still don’t carry much, if any craft beer. And that, I believe, needs to change. What’s your take? What would you do differently?

From the website:

This video explains why craft beer can be a better, more profitable choice for bars and restaurants. From higher margins to more loyal customers, craft beer is the best use of valuable draught real estate and bottle lists. Stone Brewing CEO Greg Koch explains why switching from mediocre brands — which can sometimes rely on illegal giveaways and unethical incentives — and switching to quality craft beer will improve the bottom line.

Stephen Colbert Tastes Walgreen’s New Private Label Beer “Big Flats”

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colbert-report
Last month, you may recall, the drug store chain Walgreen’s debuted a private label beer brewed by Genesee, which they call Big Flats 1901. On last night’s Colbert Show, during his regular Tip of the Hat/Wag of My Finger segment, Stephen talked about the new Walgreen’s beer, and even tried a can of the beer. Wait through the British Superman story for the hilarious Big Flats piece.

The Colbert ReportMon – Thurs 11:30pm / 10:30c
Tip/Wag – British Superman & Big Flats Beer
www.colbertnation.com
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Gambrinus Discontinues Pete’s Wicked Ales

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petes
It’s the end of an era. My friend Pete Slosberg was a pioneer in the craft beer world. His Pete’s Wicked Ale, which debuted in 1986, penetrated the country nationwide and helped introduce flavorful beers in places that previously hadn’t known any. He was a beer ambassador who traveled tirelessly in those heady early days. Pete sold the brand to the Gambrinus Company in 1998, and they’ve had mixed results with it ever since.

I learned today that Gambrinus has sent letters to their distributors announcing that as of March 1, 2011 they’ll be discontinuing the Pete’s brand, citing “rapidly declining sales volumes.” Pick some up while you still can, and have your last taste of the iconic brand.

And for a fun trip down memory lane, below are a few television commercials that Pete did around 1994. Enjoy.

Signing Autographs, a TV commercial from 1994.

Here’s a second one, also from 1994, where a police officer ask him for a permit.

Here’s one that never aired, “Pete Goes Clubbing.”

“How Beer Saved The World” To Be Revealed January 30

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earthday
The documentary that the Discovery Channel was rumored to be working on, How Beer Saved the World, is now scheduled to air on Sunday, January 30 at 8:00 p.m. Pacific time. The trailer is a bit overwrought, but they appear to have some good people being interviewed on camera, such as Charlie Bamforth and Gregg Smith. This should be interesting.

If you want a good laugh, check out the ignorant comments on the YouTube page for this trailer. Their hilarity is only matched by their inanity. It’s certainly amazing how effective anti-alcohol propaganda is as evidenced by some of the nonsense being spouted. It’s also funny, and a little sad, to see the contrast between beer people, who can readily admit that there are some people who abuse alcohol and cause problems for themselves and others, and neo-prohibitionists who cannot bring themselves to concede that alcohol has any positive aspects to it whatsoever.

Binge Drinking Excuses From The OLCC

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olcc
Just in time for New Year’s Eve — a.k.a. Amateur Drinking Night — the OLCC has released yet another PSA, this one featuring the message “Binge Drinking Doesn’t Start With A Drink. It Starts With An Excuse.” The video lists four presumably common excuses for drinking too much, though frankly I’ve never heard another living soul say them, not even a variation of them. I’m not saying the excuses aren’t something to avoid — they are — but they don’t seem all that reasonable to me. Perhaps I don’t hang around with enough binge drinkers, despite theoretically being one myself (at least at every five-course or more beer dinner I attend, since the federal definition is absurdly five drinks in a row). As a result, like their other PSAs, it appears well-meaning but unintentionally a little funny. I’m of the opinion that people who want to binge drink don’t need any made-up excuse. They do so for their own reasons, no excuse necessary.

And frankly, this needs to be said. If someone wants to drink a little too much on occasion — such as a holiday celebration — I say they should be able to, provided they don’t drive or otherwise put others at risk. As the saying goes, “Everything in moderation, including moderation.”

Sapporo’s Legendary Biru

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sapporo
My friend and colleague, Tom Dalldorf, sent me the link to this cool video by Sapporo beer for the Canadian market. Entitled Legendary Biru, it’s almost Rube Goldberg-esque. The original music is pretty addictive, too, but it’s the inventive way in which they re-imagine the brewing process that I find interesting. You can also see more about it at Sapporo’s Canadian website. I think there may be a contest of some kind, too, but I didn’t look closely at that aspect of it.

Ken Grossman Presents The Sierra Nevada Story

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sierra-nevada
Our last day at Sierra Nevada’s Beer Camp last Friday, we were invited to their last quarterly beer dinner at the Big Room at the Brewery. Executive Chef Micheal Iles created an impressive five-course dinner, which each course mimicking one meal of the day, so that in essence we ate a day’s worth in one meal. You can see a photo gallery of the beer dinner below.

And as cool as the dinner was, the real treat was a presentation given by Sierra Nevada co-founder Ken Grossman. Throughout the dinner, in between courses, he told the story of how Sierra Nevada Brewery began, complete with slides. By complete happenstance, I happened to be sitting on a riser directly in front of the presentation, so I set up my Flip camera and taped most of it. The talk is separated into 8 parts, since that’s how the presentation was given. It’s just over an hour, and part one is below.

To see the rest of Ken Grossman’s presentation, I set up a page with all 8 videos embedded, The Sierra Nevada Story. Enjoy.

Sierra Nevada Beer Dinner Photo Galley

The OLCC’s “How To Throw A Party”

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olcc
The Oregon Liquor Control Commission (OLCC) has produced a couple of PSA videos about safe drinking during the holiday season. The latest, How To Throw A Party is hilarious. With wonderfully cheesy music, faux grainy 8mm school film quality, and purposely groovy language it manages to get across a relatively good message about safe drinking over the holidays and even includes some decent party tips. Enjoy.

A week earlier, the OLCC debuted Safe Oregon Holidays. While not quite as retro as How To Throw A Party, it does still include a few gems.

Not to be snarky, but I especially love the designated driver … on horseback. Are they suggesting that’s how she’ll transport her drunk friends home?

“Beer Culture” Film To Showcase Colorado Brewing Scene

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colorado
I’m starting to think we’re about to enter a period of time replete with films about beer, the “Golden Age of Beer Films” perhaps? There seem to be an awful lot in production right now, and I keep hearing about another one seemingly every other day. The latest is “Beer Culture,” which will be a film about Colorado’s beer scene. The film is being made by FM Productions who a couple of days ago posted the first trailer for their movie.

Here’s their description of the film:

Beer Culture is a documentary film about the growing trend in Craft Beer set in the epicenter of it all, Colorado. Beer Culture explains the cultural phenomenon behind the growth of craft beer telling it through the stories of struggles and successes of some top brewers in Colorado including, New Belgium, Oskar Blues, Avery Brewing Company, Tommyknocker, Upslope, including much more. This film is set to debut in the Summer of 2011.

Make A Pipe Dream Come True: Invest In Pipeworks Brewery

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pipeworks
Looking for a unique gift for yourself or a loved one? Why not invest in a brewery? Seem like a pipe dream? Well, then the Pipeworks Brewery may be for you. Two self-avowed beer geeks living in Chicago, Beejay Oslon and Gerrit Lewis, are trying to raise enough money to make their dream of starting a small brewery a reality. They’re using Kickstarter to raise the $30,000 they need to fund their little brewery. So far, they’ve raised just over $17,000 with 20 days to go. That means they need to find another $13,000 before the end of the month.

Kickstarter is great. I’ve contributed to help fund projects before using it and it’s a great tool for microbusinesses and microfinancing. It’s a fun way to help people out, even strangers, if you like their idea. I’d encourage you to check out all the cool projects trying to get off the ground there. There are projects in Art, Comedy, Comics, Dance, Design, Fashion, Film & Video, Food, Games, Journalism, Music, Photography, Technology, Theater, and Writing & Publishing. For each project, the people lay out their idea and provide different levels of investment for you to pledge, and usually each level of participation gets you something related to their idea as a thank you. There’s a set time within which they have to reach the amount of money they need. If they don’t reach their goal, you don’t pay a dime, but if they do then your pledge kicks in and then (and only then) your account is charged. It feels very satisfying to help someone realize their dream, or at least kick start it. Not only are you helping fund an idea you believe it using alternative financing but you’re also building community at the same time.

pipeworks-sam

For the Pipeworks Brewery project, you can pledge as little as $5 or as much as $10,000. There are a dozen different levels available you can choose from to help them get started. You can read their story at the Kickstarter website, where they also post regular updates. But here’s the short version:

Pipeworks began as…

the dream of a couple of beer geeks right here in Chicago. Beejay Oslon and Gerrit Lewis started their adventures in fermentation within the plastic buckets and stovetop kettles of the home brewer. The two met while working at West Lakeview Liquors, a mom and pop liquor boutique on the north side boasting one of the best beer selections in the world. It wasn’t long before they began dreaming up plans for their own craft brewery.

In January of 2009, after some persistence, the Pipeworks boys landed an apprenticeship in Belgium with Ratebeer.com’s 2008 Brewer of the Year, Urbain Coutteau of De Struise Brouwers. Living and working alongside Urbain, the Pipeworks crew honed their skills,learning the traditions of Belgian brewing while mastering some innovative new techniques. To document these brewing adventures the boys started the popular Buckets to Barrels Blog hosted on De Struise’s site.

Pipeworks is…

— Beejay Oslon, a native of Chicago who began home-brewing while attending art school. Beejay serves as the head brewer, with over five years of experience in both brewing and craft beer retail. Through his experiences as a fine artist and graphic designer, he also serves as the creative director for Pipeworks.

— Gerrit Lewis, a transplant from the brewery-rich Colorado, armed with a sharp palate and lust for everything beer.He spends his time (and lots of his money) visiting at least one area beer store a day, seeking out the newest craft beer releases. Gerrit attended Loyola University Chicago Business School and considers himself a savvy and aggressive fresh-faced marketer.

And below is funny video that should get you fired up about their project.

To learn more about Pipeworks Brewing Co., you can visit their website, their blog or their Facebook page.
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