About half of brewery production staff at Craft Brew Alliance's Woodinville, WA brewery laid off by the co earlier this week, Seattle Times reports. "The volumes we expected through our contract brewing arrangement with Pabst have not materialized," COO Scott Mennen told paper. Co didn't disclose exact number of workers let go, but could be anywhere from about a dozen to up to 20, according to initial Brewbound report. Recall, CBA cut deal with Pabst earlier this year that included provision to allow Pabst to buy Woodinville plant, capable of producing over 200K bbls, at some point over next 3 years as well as produce more Rainier and other brands there (see Jan 13 issue). This move represents just next piece of ongoing capacity/production puzzle for CBA, which recall also struck deal with partial-owner AB to move some production to the large co's breweries, moving away from contract relationship CBA had with Blues City Brewing in Memphis. Series of agreements with AB announced at same time also creates pathway towards full purchase of CBA by AB, as well as sets up international distribution oppys for CBA thru AB-InBev system (see Aug 23 issue). 

Sam Adams announced 3 new brands for its 2017 lineup at annual Sam Adams GABF brunch earlier today. It's "continuing exploration of the IPA style" thru its Rebel series with new Rebel Juiced IPA, founder and chairman Jim Koch shared, starting end of this mo on draft followed by bottles coming Jan 2017 and cans in Feb. Rebel Juiced is a tropical IPA infused with mango juice that's "meant to really showcase the tropical fruit salad type of notes that you get out of some of the new american hops," including Mosaic, Mandarina and Zeus strands. And that gets "amped up" with the mango juice. Rebel IPA series remains one of the few sources of growth for Sam Adams brand family this year. Even as Rebel IPA and Rebel Rider session IPA decline, new Rebel Grapefruit launch and Rouser double IPA growth are carrying series into the black. So it'll be interesting to see how that progresses next year with addition of another new flavor.

Then too, Sam Adams will introduce 2 new spring seasonals, both of which also have a citrusy component. First it'll launch Hopscale for Jan-Feb, a "wheat beer with a big but not overwhelming dose of american hops" to give it piney and grapefruit notes. At 30 IBUs, Sam Adams "wanted a little bit of dank in here" and "thinner" wheat malt base "helps bring the hops forward," Jim explained. Then Sam Adams launching new Fresh As Helles lager brewed with orange blossoms for Feb-Mar and into Apr. This is "a collision of two great brewing cultures" said Jim. A typical German Helles lager in the sense that it's a "very simple" single malt, single hop brew. But the inclusion of new hop strand Bavarian Mandarina, an American influenced German hop, and adding orange blossoms takes that a step further. Altogether, that brings total number of seasonals to 5 next yr for Sam. There's "no rhyme or reason to it" other than notion that "if some beer is good, more beer is better," Jim quipped.

Craft Revolution "Ain't Over Yet," "We're in the Middle, Not at the End"; Jim Reflects on GABF's Past Jim reflected on how "the center of gravity of the brewing world has shifted" to where GABF is now "probably the greatest beer event in the world." This is Jim's 32nd GABF and when he initially came, there were merely 100 breweries. In all of CO there was 1 craft brewery back then, and now there are 350 breweries here today. Back then, meetings consisted of "maybe 20 people" and "that constituted the entire microbrewery movement," compared to "enormous convention center" it now takes to capture that energy. It's been "really cool to watch this revolution in beer" and "exciting news is it ain't over yet. We are in the middle, not at the end."  

  AB has sponsored Presidential debates for decades now with an experiential booth/beer tent on site, providing beverages as well as "light entertainment" for folks "producing and covering the event," VP of US Industry Affairs Doug Bailey reminded CBN. This yr AB's been increasingly politically-minded leading into election with its Bud Light Party ad campaign and ramped up "America" Budweiser labels. But this is first election where AB will really be able to leverage new local acquisition partners. It's "definitely a new opportunity this year to bring in these local partners" and "expand our storytelling a bit," said Doug.

First debate at Hofstra University was right in Blue Point's backyard. So Blue Point took oppy to create Colonial Ale, an American brown ale based on a "hand penned recipe of George Washington in a military journal for a small beer" that debuted at beer tent outside debate, brewmaster Dan Jansen told Fox News. Similarly, in St Louis AB will showcase its Research Pilot brewery with "debate-specific beer" called Lilly's Lager; a collab between pilot brewery and (much) larger St Louis brewery that will be served at a biergarten outside the debate and will be available at the brewery," reported St Louis Post Dispatch. Devils Backbone was available at VP debate held at Longwood University in Farmville, VA last night and Four Peaks to be at Las Vegas, NV debate. Keep in mind, these local brands are just a small piece of presidential debate sponsorship, while other typical AB products will certainly be available and emphasized thruout, natch. And themed collab brews/local offerings are far from out of the ordinary for special events. But altogether, this is a small example of how AB can utilize its craft acquisition brands in less conventional craft beer avenues going forward.

All signs point to Cincinnati and Columbus, Ohio as next test markets for e-commerce giant Amazon's budding on-demand alc bev delivery outfit. That's happening at same time a Dayton-based startup also looking into get into selling beer online and delivering it to thirsty buyers. Amazon's Prime Now LLC currently seeking permits in both Cincy and Columbus that would allow it to retail and deliver alc bevs in the state, Cincinnati Enquirer reports this week. It picked up 20K sq-ft warehouse earlier this year and this month expanded same-day delivery to premium service Prime customers in Cincy this month, just as it works to expand sales of grocery items nationally. On other end of the spectrum, new startup Buckeye Craft Beer looks to go live later this month with website where buyers can order beer for delivery, though not necessarily for immediate delivery, according to Dayton Business Journal. Company already has Warped Wing and Dayton Beer on board for launch, looking to bring on around 30 breweries. Shipments not staying just within Ohio either, as co plans to ship to at least parts of 9 other states in midwest and mid-Atlantic region. These two stories, published on same day in one state typifies small but burgeoning world of online alc bev sales: lots of small startups mostly looking to cater to relatively small geographic footprint alongside much bigger outfits with considerably bigger plans. Taken together, potential to further disrupt already fragmenting industry by chasing consumer demand all the way to their doors clearly ramping u 

Steady march of small US brewers into retail sphere continues apace, so here's just a taste of concepts currently in the works or opening soon. New Jersey-based Flying Fish teamed up with area chef and real estate developers to open Flying Fish Crafthouse in Brewerytown area of Philly, with soft opening planned for next month, founder Gene Muller said in interview with Philly Inquirer. Initial plans for full brewpub on site eventually scrapped, but branded restaurant outfitted with 16 taps, all but 2 devoted to Flying Fish beers, including specialty one-offs sold only at this new spot, natch. It's anchor retail outlet for new apartment complex with 131 units. Residents "will be able to order their beer and their food and have it delivered to their apartment," Gene explained. Add in growler fills and to-go sales plus event space, "all the things we can't do in New Jersey," and represents clear marketing oppy for co. Plus, "if it works as well as we think, we'd like to do another one and actually put a brewery in it," he said.

On opposite coast, Half Moon Bay Brewing set opening date for new Pacific Standard Taproom and Growler Station in Berkeley later this month, reported by SF Eater. Spot comes with 16-24 taps, just half of 'em planned to stay HMBB beers. Location will serve food to pair with the beer, of course, as well as sell packaged beer and growlers to go. In Western North Carolina, Nantahala Brewing soon to expand into brewpub biz in hometown Bryson City, per Smoky Mountain News. Sizeable 11K sq-ft warehouse near its production facility and taproom originally earmarked to help expand production capabilities. But founders chose to put in full-blown brewpub instead, catering to steady stream of visitors to nearby Great Smoky Mountain National Park, co said in release. Location includes ample outdoor space to host events and larger crowds, slated to open later this month.  

Fast-growin' young Georgia brewery, Monday Night, will build a 22K sq-ft 2d brewery and tasting room "focusing on barrel-aged and sour beers," co announced. After being "courted seriously by other cities in Georgia and other states," Monday Night found location "along one of the largest urban renewal projects in the country," the Belt Line. "Our barrel program has quickly become an integral part of who we are as a brewery" but "we simply don't have the room at our Westside location to do all the things we want to be able to do," co explained. Meanwhile, co has several core brands picking up steam in scans this yr too. Monday Night $$ up 77% to $1.5 mil in IRI multi-outlet + convenience data thru Aug 14, led by Kilt Scotch Ale (+73%), Belgian Wit (+26%) and newer Slap Fight IPA, Blind Pirate Double IPA and Blood Orange Blind Pirate Double IPA brands.  

Lotsa brewery expansions goin' on in Massachusetts these days, including recent announcements from 3 fast-growin' brewers in-state. Early last mo Wormtown announced plans to boost capacity from 20K bbls to 50K bbls/yr over the next yr, reported MassLive among others. Expansion will add 14K sq-ft in total, including 8K for "packaging hall" space and 4K sq-ft for "future fermentation and capacity increases." After lookin' into other potential expansion options these past 9 mos "in the end it was very important for us to be located here in Worcester. The City Manager, the Office of Redevelopment and all of our fans made it clear that they wanted us to find a great place here at home," said Wormtown managing partner David Fields. Recall, David is yet another ex-AB distrib that's made switch to the craft supplier side and has seen success; he previously had stake in Auburn, MA-based AB distrib Consolidated Bevs before selling rest to Quality Bevs in Sep 2013 and joining Wormtown. The 6-yr-old brewery has aggressively grown its biz these last couple yrs, from just 3K bbls in 2014 to "almost 20,000 barrels" this yr. All in MA.

Then too, acclaimed Tree House Brewing was issued $7.7 mil bond from MassDevelopment to help with expansion plans, Boston Biz Journal reported. Recall, in Mar co announced plans to build new 50K sq-ft brewery in Charlton, MA with "theoretical maximum" capacity of 125K bbls/yr by first half of 2017. "We were faced with many opportunities and plenty of sleepless nights going through our options for our expansion in Charlton" and "we're proud to say Country Bank and MassDevelopment made it an easy decision," said Tree House's Damien Goudreau. In just its 2d year, Tree House expects to produce 12K bbls in 2016.

Newburyport Partnering with RI Contract Brewery as it Enters RI Too; 15K Bbls This Yr As Newburyport Brewing expects to pass 15K bbls, over 30% growth, in just its 4th yr in biz, it will partner with new RI contract brewery concept, Isle Brewers Guild (IBG), co announced. Recall, Narragansett Brewing was first "owner-partner" to sign on with the 130K sq-ft and initial 60K bbls/yr brewing co-op (see Apr 4 issue) that's eventually expandable to 175K bbls/yr. Back then Narragansett prexy Mark Hellendrung thought IBG would brew about 15K bbls of over 100K bbls co expected for full 2016. IBG co-founded by former InBev exec Devin Kelly and biz partner Jeremy Duff who previously worked on Narragansett (among others) with his New England based marketing agency Duffy & Shanley. IBG is a multi-faceted operation, not only offering various brewing and packaging services (i.e cans, barrel-aging, full lab, etc.) but also "full service planning and logistics," mktg, sales and distribution assistance and access to its 4K sq-ft taproom, per co website.

Newburyport refers to IBG as its "sister brewery" that "will allow us to meet growing local demand and expand the reach of our year-round and seasonal offerings in new markets," said co-founder Chris Webb. So co wasting no time, entering RI by mid-Oct; its 3d state other than MA and NH. "Our IBG partnership is a key solution to our capacity constraints," since "we haven't been able to keep up with demand since the day we first opened our brewery in Newburyport, MA" Chris added.

All in, even amid overall craft category slowdown, these 3 MA breweries, along with Jack's Abby, among others, all makin' big bets on capacity expansions to keep up with rapid growth. 

In wake of US Dist Ct judge in OH granting Southern Glazer's TRO/injunction halting attempted termination by Great Lakes Brewing (see Sep 28 CBN), Great Lakes filed counterclaims vs Southern Glazer's and Southern Wine & Spirits (note this article appeared earlier today in INSIGHTS Express). Brewer charges: 1) breach of contract (for failing to get Great Lakes' consent to Southern-Glazer's merger); 2) violation of state franchise law (ditto); 3) fraudulent inducement (to sign contract when Southern Gazer's "always intended to claim" that key sections of contract "void and unenforceable and [which it] never intended to abide"; 4) tortious interference (vs Southern Wine for forcing Glazer's Ohio/Southern Glazer's to violate its contract); 5) conspiracy (vs Southern Wine and Glazer's for structuring merger in a way that would violate Great Lakes' rights under the contract and OH law). Great Lakes seeks damages, including punitives, and declaration that "there is no franchise" between Southern Glazer's and Great Lakes.

Simultaneously, Great Lakes filed request to accelerate discovery and trial (similar conflicts have gone on for years in OH). Why? "Great Lakes is being harmed each day that this dispute is ongoing" by being deprived of its contractual rights and "damaged in the marketplace because it is being forced to work with a distributor it did not choose and that lacks beer focus." Finally, recall judge put termination of SG by Boston Beer on "standstill." Attys for both brewers are same and request that if settlement talks fail, similar expedited process will apply to dispute with Boston.  

Due to "delays with construction and delivery of equipment" BrewDog pushed back opening date of Columbus, OH brewery, reported Columbus Dispatch. "We're looking at February or March at the moment for our first release from Ohio," and following delay "the (equipment) is due to arrive imminently," co-founder James Watt told paper. So BrewDog pushing back US hiring until Jan 2017 as well (still needs to fill US sales vp role after Jason Davis left to join Columbus Brewing too). Originally BrewDog expected brewery to open in Aug 2016.

Meanwhile, it's "identified the location for its Franklinton brewpub" at "space that currently houses an automotive repair shop," expected to open sometime in 2018. Keep in mind, co expects to eventually open total of 5 brewpub locations in US. All in, US launch a bit slower goin' than originally hoped. Currently BrewDog's raised "about $2.5 million" from 3K investors via Equity for Punks US crowdfunding campaign since launching in Aug. That seems to be running behind as well, since share offer "runs through February and is capped at $50 million." Tho "if we just needed money, we could just go to the bank," James asserted. Equity for Punks is about "building a community."  

Some good, some bad, and some downright ugly within off-premise craft results through first 3/4 of the yr. Overall craft volume trend slowed to +3.1% yr-to-date thru Sep 24, in Nielsen all outlet + convenience (xAOC + Conv) data, following 0.8% decline for 4 wks. Like rest of beer biz, month of Sep not so hot (total beer volume -1% for 4 wks). So craft didn't gain any share during most recent month, now up just 0.2 share of beer volume YTD, to 7. On the bright side, pricing still healthy and avg craft case price up almost a buck to $35.49. So YTD craft $$ trend a bit higher, +6%. Even better, "Remaining Domestic Brewers" still up over 11% by $$ YTD in Nielsen. (This broad group includes much of craft, covering Sierra Nevada, New Belgium and all smaller brewers. It also includes more than just craft.) But YTD volume growth of this group dipped into single-digits during the summer, now +8.2%. Early in the yr, these brewers were up by more than 20%. For 4 wks, cases sold by this catchall group up just 1%. That ain't so good.

Follow slow-down of craft growth throughout the summer in chart below, which picks up at 4-wk period through Jul 9. During July, craft trend topped out at +4% YTD, while 4-wk trends mostly below 2%. (Note that misaligned periods around early summer holidays caused big jump for 4-wk period ending 7/30.) Overall craft growth fell to just +0.5% during period ending Aug 6 and hasn't recovered. It dipped into negative territory by the end of the month, dampening YTD trend.



Six Big Brand Families -11% for 4 Wks, Rest of Craft +7% As we've reported all year, some top brands still struggling the most. Full Blue Moon franchise volume down 7.7% for 4 wks, Sam Adams -8.9%, Sierra Nevada -9.5%, Leinenkugel Shandy franchise -13.7% and Shock Top -23.7%. Most of those brands doing better YTD; only Sam Adams YTD decline slightly steeper. Those 5 brand families collectively lost over 4 share of craft volume during the period. Nielsen highlights one more brand family, New Belgium -1% for 4 wks. Following tougher trends early in year, NBB put up solid short-term growth thru most of summer. But it put up slight volume decline for 4 wks ending 9/3 and continued to decline thru Sep. Combined, these 6 brand families still represent about 40% of craft volume, down over 400K cases for 4 wks, -11%.

So the other 60% of craft volume up just over 7%, 336K cases for 4 wks. Second chart here shows absolute volume change for same 4-wk periods throughout summer, broken into 6 big brand families (listed above, highlighted by Nielsen) and all others in craft segment. Through most of summer, larger brands collectively lost 3-400K cases every 4 wks. Rest of segment gained well over 400K CEs in early part of season. But that slowed too and growth of these very many others no longer makes up for declines of bigger brands.