Local-focused grocery chain, and big-time friend of craft, Whole Foods Market continues to blur lines between on- and off-premise, adding a "rooftop beer hall and restaurant" to its new Brooklyn, NY store, according to InvestorPlace. Recall, the chain already operates isolated beer specialty shops within a handful of its other NYC outlets, where patrons can buy packaged beer to-go, fill growlers and have a pint at the in-store bar. Whole Foods also has planned to brew its own beer to serve at a rooftop beer garden at a coming San Jose store (see Aug 26 issue). 

New Hampshire has 19 licensed breweries near the end of 2013, 7 of which are licensed "nanobreweries," restricted to producing less than 2000 bbls a year and forced to self-distribute. NH was the first state to legally create the nano distinction in 2011. An additional 10 brewpubs lifts the state's total brewery count to 29, up from 14 in 2008, according to the Eagle Tribune. But Granite State Brewers Assn Bill Herlicka compared the 1.3% of NH craft beer sales made by a state brewer to the 20% in neighboring Vermont. That's partially because his state's "dominant brewing is at its brewpubs," while the majority of beer sales are 6- and 12-pks in grocery chains and "New Hampshire brewers haven't made beer to fit that format." Down in Alabama, the state's craft biz has grown to include 10 licensed brewers and a couple of local players have seen some big volume jumps, according to the Birmingham Biz Journal. The city's Good People Brewing expects to sell 18K bbls by yr-end, the state's largest craft brewer by far. Tho the paper sez Good People has grown up from 400 bbls in 2008, that's how much the co shipped just last year, according to Brewers Assn stats. Avondale Brewing told the paper it hopes to post a 45% growth rate this year, up to 2900 bbls from 1900 last yr.  

Lines between tiers aren't the only ones being blurred by recent state activity. Distinctions within tiers, i.e. those that separate certain types of retailer, wholesaler or supplier licenses, are being threatened in some state battles. Wisc retailers have taken sides debating over growler sales in the state recently as the Wisc Grocers Assn looks to expand ability to install taps and sell growlers (as well as on-premise pints) in off-premise licenses, according to the Capital Times. But such a change would "turn the state's liquor licensing system on its head," a spokesman for the Tavern League of Wisc told the paper. Grocers are able to operate with on-premise licenses, like the Milwaukee Whole Foods, which got an addendum to its license so it could sell growlers and pints on tap. But bars "aren't going to put a big meat section up in a tavern where you can get your center-cut pieces of meat," the Tavern League spokesman said, since "that's what a grocery store is supposed to do, not sell growlers." While the grocers believe the change would be "a great opportunity for craft brewers in Wisconsin," the Tavern League notes that "if we are going to start eroding the current system, we might have some recommendations of our own to make." No bill to officially support or oppose yet, but look forward to more in coming legislative session.

The package of bills that make various adjustments to liquor laws in Mich continues to wait for a vote, even tho many have touted its "bipartisan support." Add to that list Bret and Eric Kuhnhenn, owners of their namesake brewery, and Paul Quasarano of Eastown Distributors in a Detroit Free Press editorial this week. The op-ed describes the 10-bill package as "the result" of "more than a year" of work, during which "Michigan craft brewers, distributors and other stakeholders have collaborated, cooperated and compromised." If passed, the package would "ensure Michigan businesses compete on a fair and level playing field." Recall that Mich's "secondary use" rule (see Dec 5 issue) has been a sticking point between retailers and distributors in the state. According to this op-ed, "the proposals would allow" such purchases "from independent third parties" in order "to address concerns among bars and restaurants that have long wanted to buy glassware."

Distrib vs Distrib in Ind Over Ability to Add Liquor Suppliers On the supplier level, lines between brewers, winemakers and particularly distillers have continued to blur, particularly in the craft segment. Shouldn't be terribly surprising then that beer distributors are expanding their biz into other alc bev types. But in Ind, beer wholesalers are specifically prohibited from distributing liquor, something the state's largest beer distrib, Monarch Beverages believes is "entirely illegitimate." After unsuccessfully trying to change law in legislature for several sessions, Monarch filed suit in federal court in Oct (detailed extensively in sister pub INSIGHTS Express, yesterday). Not only wine and spirits distrib assn weighing in against Monarch, but so is Indiana Bev Alliance, assn of AB distribs in state, 18 of which compete against much larger Monarch (an MC house with craft subsidiary, World Class Beer) and Indiana Bev.

Houston Proposal Could Allow Liquor Sales Near Churches, Schools, Flood "Food Deserts" Houston City Council is considering a measure to lift its current ban on alcohol sales near churches, schools and hospitals, according to the Houston Chronicle. Some argue that the ban has discouraged grocery chains from opening in poorer city districts, leading to so-called "food deserts," disputed and discussed in the city and elsewhere for years. While some activists believe that if chains thought opening stores in these neighborhoods would be profitable they would have done so already, "Kroger has not opened a 'dry' store in a decade," the paper wrote. Houston law-makers will consider lifting the ban for grocery stores only, a measure heartily supported in a Chronicle staff op-ed today.  

Ninkasi parted ways with sales director, Marty Ochs, marking at least the 3rd head of craft sales at a BA Top 50 brewer to go in recent mos. Recall Avery parted with seven year vet, Ted Whitney, who just hired on with 21st Amendment Brewing earlier in Dec (CBN vol 4, no 68). And ex-Oskar Blues sales director, Wendy Weathers, was hired by SanTan Brewing just last week, as brewery announced expansion into 5 new markets in 2014 (CBN vol 4, no 70). As for Ninkasi, "ultimately, based on a considerable number of factors related to the dynamics of our company in an ever evolving industry, it was my decision to make a change going forward," Ninkasi co-founder, Nikos Ridge told Brewbound. Co currently on pace to hit approximately 90K bbls for 2013, added Brewbound. That's up another 30% plus, putting them next in line to cross the 100K bbl mark in 2014.  

 After pulling out of Indy in 2011, Dogfish Head announced its heading back earlier today via its blog. "Our first distribution partner in the state will be Indiana Beverage (MC network)," and "additional Indiana Wholesalers will be finalized in early 2014…. Dogfish beers could be back on shelves in northern Indiana by the week of December 30th," sez blog. Recall co also recently announced that it will be back in Wisc and RI in time for holidays. "We're also working hard towards getting our beers back in Tennessee," noted blog. So re-entry in Tennessee would mark the last of the states Dogfish pulled out of in 2011. Dogfish originally was with largest Indy distrib Monarch Bevs, thru its craft-centric World Class Beer unit, before pulling back in 2011.

Recall, in RI, Dogfish Head went back to C&C (Coors), same distrib it had before. In each of Wisc, RI and Indy mkts, Dogfish mainly with MC network. Recall, at end of 2012, Dogfish Head settled lawsuit with Chi area distrib Louis Glunz and went with MillerCoors cluster of distribs. Stay tuned to see where Dogfish ends up throughout rest of state.

New Belgium continues with its rapid expansion, announcing move into Alabama, going again with MC network as it had in Fla and most of volume in Oh. One of key distribs in Ala, Gulf Dist, is also NBB's distrib in Fla with Gulf/Goldring. The other distribs are Supreme, Allstate, and Premium. In last 12 mos, New Belgium has announced expansions to Fla, Oh, La, Alaska, Utah, Del and now Ala. NBB just launched in Ohio earlier this week. Stay tuned.  

Tho Boston Beer had already guided to mid-teen depletions growth in 2014, Compensation Committee of the Board added detail and specific numbers at recent mtg laying out bonus oppys of top execs. These goals show Boston looks for even bigger growth as objective, over a half mil bbls incremental in 2014. Its execs have opportunity to get big bonuses based on achieving these "company-wide goals." Goals are depletions increase of at least 18% and at least $7.5 mil in "resource efficiencies and cost savings, while maintaining brand health." If goals only "partially achieved," i.e. depletions +14%, Sam Adams brand +3%, top execs will get 50% of payments. On top of that, sales veep John Geist has some very specific brand sales goals (see details below).

Boston bonuses calculated as % of base salary. Chairman Jim could get bonus of 100% of base salary. Over half of bonus weighted to depletions growth trend/Boston's performance vs craft category. Another 20% weighted to gross profit/margin goals and 10% each to freshness goals, and time Jim invests in "craft industry initiatives which support the category and the Company." (Base salary data for 2013/2014 not available, but Jim's salary was $390K in 2012, up 2%).

For CEO Martin Roper, about 1/3 of 2014 bonus oppy - he could get 80% of 2014 base salary - based on depletions. A quarter of Martin's bonus weighted to gross profits/margin, another quarter to "significant reduction in 'out of stock' and improvement in service," along with "capacity and capability" to meet projected growth. The rest depends on cost savings/Freshest Beer Program. Boston hopes to have 75% of volume in program by end of year, up from about 2/3 at end of Q3 this yr. On top of this, Martin has "stretch" bonus oppy, up to another 80% of regular bonus or "an incremental 64% of his base salary," if depletions growth gets into the low 20% range, combined with improved services, inventory reduction, efficiencies. (Martin's salary in 2012 was $714.5K, also +2%.)

Depletions goals for sales veep John Geist to score bonus of 50% of 2014 base salary (John's salary was $355K in 2012) based on more detailed depletions trends. Thirty % of bonus based on the shared company goals noted above. Another 5-10% each based on Sam Adams depletions (+9%), Twisted Tea (+17%), Angry Orchard (+50%) and total depletions including Alchemy & Science projects of +18%. John also incented on "price adjustments of greater than 2%," draft handles, Seasonal distribution, "display execution during key holiday periods," sampling of drinkers and improving "departmental or functional talent bench strength." Bonus for CFO Bill Urich, 50% of base salary, stretches across company-wide goals as well as efficiencies, procurement, support for A&S initiatives, organizational development and IT. And operations veep Thomas Lance can score bonus of 50% of base salary based on company goals, safety, quality, supply chain, capacity expansion, cost savings and "organizational development."

Separately, Boston plans to add capacity and people at Pennsy brewery in 2014, reports Lehigh Valley Live, tho no official expansion plan submitted to local govt officials yet. That includes fermentation tanks, spokesperson told paper, "to keep up with the brewing demands as we introduce new innovative styles like our Barrel Room collection." Boston's website lists 22 job openings at Pennsy plant and co added 70 positions there in 2013.  

Actually it's a 14 passenger van that takes its passengers on "roughly four-hour excursions," making "four or five stops for private tours and tastings," reported Boston Globe. Greta sticks to nano-breweries and small brewpubs alike. The largest brewery on the tour list is Throwback Brewery which produced 352 bbls of beer in 2012, according to Brewers Association data. Other stops include Earth Eagle Brewing, "a nanobrewery hitched to a homebrew supply shop," in downtown Portsmouth, Blue Lobster Brewing Co, Sea Hagg distillery, and couple of pubs and beer-centric food stops. So Greta's bus really concentrates on some of smallest players in attempting to create a memorable tour experience.  

Cider shipments up 40%, another 25,000 bbls to 88,000 bbls in September. That's a fair amount slower than in many recent mos. Marked the first time monthly ciders shipments below 100k bbls since March, and lowest % growth of 2013. Yet cider still up 79%, 365,000 bbls to 848,000 bbls YTD thru September. Import ciders dropped 16% in 3d qtr and fell to 10 share for the qtr. Still up 14% yr-to-date and got 13 share, down from 20 last yr. Domestic ciders up 91% for 9 mos. Typically Q4 has represented largest shipment mos for cider, so stay tuned to see how 2013 stacks up.  

Russian River's once a year release of its sour beer, Beatification, drew literally "hundreds of fans" standing in line for hours this past Saturday morning to sample the limited release brew, reported the Press Democrat. Starting in the middle of the night. The first people in line were there by 1:30 AM Saturday, according to brewery co-owner Natalie Cilurzo. "It's probably one of the top three sours in the world," one fan told paper. Already by 4:00 PM Saturday, 800 of the 1200 cases of Beatification made were sold, Natalie noted.