As part of 35th anniversary celebration for its Redhook brand, Craft Brew Alliance plans to open a new Redhook brewpub in its hometown of Seattle next fall. Equipped with 10-bbl brewhouse, the brewery restaurant is already under construction in the Pike Motorworks development in Capitol Hill nabe. It'll be a small-batch experimentation and innovation center for Redhook that'll also revive some older brands, some to be exclusive to the brewpub. Though Redhook brands have been brewed in nearby Woodinville for many years, they have not been produced in Seattle proper for over a decade. The mixed-use Pike Motorworks complex includes a pair of apartment buildings housing 260 units with over 20K sq ft of retail space in 12 separate units below (a possible combo of half those units totals about 9000 sq ft). Recall, CBA promised a Redhook brewpub back in April, explaining its capital expenditure plan for its 3 primary brands, all of which will get investments in their home markets over the next couple of years. The Redhook project isn't the only planned investment in a Seattle retail base for an iconic craft brand: NAB also plans to pump some capital into its Pyramid Alehouse in town, execs said during distrib meeting last month.

Most breweries these days have refocused significant attention to direct interactions with beer drinkers, offering new tour programs, opening breweries to the public for the first time and creating smaller satellite locations to allow for more personal connections. Late last month, Abita explained plans for "a more intimate and informative experience" at the Louisiana brewery, a spokesperson told the Times-Picayune. New experiences will include peeks at Abita's new brewhouse, "designed with these revamped tours in mind." More breweries are certainly being designed or redesigned with visitors in mind. But older facilities are figuring out ways to make the work that goes on inside them more visible too. Guinness too recently announced an updated visitor experience, even as its Guinness Storehouse has long been one of the most visited attractions in Europe. The co opened up its small innovation brewery, now called The Open Gate Brewery, last month. It'll allow visitors a glimpse of what goes into Guinness' Brewers Project beers as well as a chance to interact with brewers. Back stateside, recall Denver alone will get a new New Belgium site as well as a Blue Moon pilot brewery and a 10 Barrel brewpub. Elsewhere, AB's sponsoring a rooftop Beer Park by Budweiser atop Vegas' Paris Hotel. No surprise that as ever smaller breweries open up every day across the globe, comparatively large brewing companies work to figure out how to make connections with beer drinkers more personal.  

Interesting article in Friday's Wall St Jnl has direct application to craft beer. Ballast Point is mentioned as one of a number of firms that dropped its IPO for a big buyout. Indeed, M&A activity is surging across many industries, while IPOs are struggling. This yr, dollar volume from IPOs down 63% from 2014 total of $36 bil. Meanwhile, M&A deals announced this yr up 46% from 2014, reported WSJ. "When company owners sell, they take all the market risk off the table versus an IPO. That's very compelling right now," said Goldman Sachs co-head of Americas investment banking services Pete Lyon. (Recall, Goldman Sachs advised Ballast Point.)

Turns out at least 18 cos "stopped pursuing filed U.S. IPOs because they were being acquired," sez Jnl. That's about 10% of the companies that filed overall. "Helping to drive some of the withdrawals is the poor performance of recent IPOs," continued Jnl. "Through Nov 20, stocks of companies that have gone public this year were down an average of 2% from their offering price." And over half of last 20 listings "priced below their projected range." That's gotta give pause. And may well have already affected thinking/actions of other cos supposedly slated for IPOs. For example, SweetWater is reportedly no longer pursuing an IPO. Recall, several private equity firms were pursuing craft rollup strategies, with an IPO as the eventual desired outcome. Might be far more difficult to get there in the present, rapidly changing environment.  

Recall that while fed judge sided strongly with MillerCoors' main arguments to dismiss attempted class action suit filed by Calif consumer alleging MC misleads consumers when it sells Blue Moon as craft beer, he gave plaintiff another chance to amend it. And so he did. New charges filed last week are basically same charges: that MC violated Calif consumer protection statutes via misrepresenting Blue Moon as craft and charging a premium for it. But plaintiff changed emphasis and some of the language and added a few specifics. This time around, suit focuses on argument that placement, price and portrayal of Blue Moon all add up to being deceptive. It also adds specific charge that Dr. Keith Villa, "whose PhD in brewing science was entirely paid for by Defendant, 'created' Blue Moon beer with the aid of Defendant's marketing team and at the insistence of MillerCoors executives." (Throughout lawsuit, plaintiff seems to assume that MillerCoors existed more than a decade before it was actually formed.) Point here is that while MC materials say Dr. Villa "is a home brewer who created Blue Moon as the first and flagship beer of an independent start up brewery" (the Sandlot Brewery), MC omits and "actively conceals the fact that Dr. Villa was an employee of MillerCoors (sic) when he allegedly 'created' Blue Moon and that he did so at the insistence of MillerCoors (sic) executives." The shift seems to be that not only is MC not a "craft brewer," but that Blue Moon's creator is not a "craft brewer" either.

Blue Moon as "Wholesale Fiction"; Priced, Placed and Portrayed to Mislead Plaintiff also emphasizes that Blue Moon's backstory of its Sandlot origins "paint an entirely fictitious story" since "Blue Moon has never been a craft beer, nor has it ever been produced by a craft brewery." Amended suit also draws distinction between true craft brewery and "a craft brewer that is subsequently acquired by a non-craft brewery." Instead, Blue Moon "is a wholesale fiction created by Defendant that was designed to deceive consumers into purchasing a MillerCoors product at a substantially higher price." Plaintiff took cue from judge's earlier order and dropped charges based on the trade name, labeling and claims about the specific phrase "Artfully Crafted." Instead, he focused on a more overarching set of charges that by "portraying Blue Moon Brewing Company [falsely] as a small brewery," stocking Blue Moon (or having it stocked) with craft beer on off-premise retail shelves, "endorsing third party misrepresentations" of Blue Moon as craft by on- and off- premise retailers and at sports venues (naming specific outlets where all this occurs) and pricing it at craft levels all add up to misrepresentation. Specifically, pricing Blue Moon at craft levels, the plaintiff now alleges, is "tantamount to selling a cubic zirconia ring for the price of a diamond ring and referring to the product as a diamond ring." But recall, the judge previously avoided resolving the issue of "whether or not there is a legal or controlling definition of 'craft beer'" and he rejected earlier charges that Blue Moon's ads/placement/pricing are deceptive. Will he change his mind now that those charges have been re-drafted with a few details? MC has chance to file another motion to dismiss and each side will get yet another chance to reply.  

 After "concerned" Senators piled on and antitrust lawyers sounded off on predicted impacts of ABI's acquisition of SABMiller, especially on craft, a Senate subcommittee hearing approaches, as promised. The date's set and invitations sent: 2 of 6 scheduled speakers from craft biz and a 3d already very vocal about ABI-SAB's potentially negative impact on craft brewers. Next Tuesday at 10am, Antitrust subcommittee of Senate Judiciary Comm will hold hearing on "Ensuring Competition Remains on Tap: The AB InBev/SABMiller Merger and the State of Competition in the Beer Industry," as we reported in sister-pub INSIGHTS Express this morning. Since then, the subcommittee added a pair of industry trade assn execs to witness list: both Brewers Assn's CEO Bob Pease and NBWA prexy/CEO Craig Purser will testify. A particular interest in small brewers and their access to independent distributors runs throughout announcement of hearing as it did the public rhetoric leading up to it. Bob and Craig will join AB InBev CEO Carlos Brito, Molson Coors CEO Mark Hunter, J. Wilson of Iowa Brewers Guild and Diana Moss, prexy of American Antitrust Inst, according to release from subcommittee chair Sen Mike Lee (R-UT).

Echoing comments she made previously as well as those of fellow Senators, ranking subcommittee member Sen Amy Klobuchar (D-MN) explained that the hearing will examine "if [the deal] will harm the craft brewers that are creating jobs and economic growth across the country," as well as how it might affect beer prices for consumers. She references "proposed divestitures," and gotta assume that Brito and Mark Hunter will stress that sale of SABMiller's stake in MillerCoors to Molson Coors means no structural change in US and no negative effects on distribution, price, consumer choice, etc. But since SABMiller announced ABI's overture this fall, voices opposing it have pointed to various other simultaneous developments that heighten concern when taken together. And perhaps no other voice has unloaded as consistently on the supposed "competitive harm" and "devastating effects" of the deal as AAI's Moss.

AAI has been raising red flags about ABI-SAB since at least 2012, when in midst of ABI-Modelo deal, it put out a White Paper and 117-page monograph titled "Global Beer: The Road to Monopoly." It wrote letter to US Dept of Justice opposing "the rumored 'ultimate' beer merger," last Nov, in which it asked DoJ to "treat the efficacy of any conventional divestiture with exceptional skepticism." Then too, "there's nothing in this deal that could warrant its approval by federal antitrust enforcers," Moss told Bloomberg in September, before revisiting price/choice concerns and "a harder life for smaller craft brewers," as Consumerist wrote, a month later.

Worries about the effect on small brewers have largely hinged on distribution, offered by Moss and an array of antitrust attorneys, many of whom act on AAI's advisory board. So pair of national advocates for small brewers and distributors as well as Minister of Iowa Beer J. Wilson are all very likely to speak to these concerns. While these broader issues likely to be trotted out for all to see during hearing next week, the critical analysis of this deal will come from Dept of Justice. And that analysis won't be public til far later date.

After "concerned" Senators piled on and antitrust lawyers sounded off on predicted impacts of ABI's acquisition of SABMiller, especially on craft, a Senate subcommittee hearing approaches, as promised. The date's set and invitations sent: 2 of 6 scheduled speakers from craft biz and a 3d already very vocal about ABI-SAB's potentially negative impact on craft brewers. Next Tuesday at 10am, Antitrust subcommittee of Senate Judiciary Comm will hold hearing on "Ensuring Competition Remains on Tap: The AB InBev/SABMiller Merger and the State of Competition in the Beer Industry," as we reported in sister-pub INSIGHTS Express this morning. Since then, the subcommittee added a pair of industry trade assn execs to witness list: both Brewers Assn's CEO Bob Pease and NBWA prexy/CEO Craig Purser will testify. A particular interest in small brewers and their access to independent distributors runs throughout announcement of hearing as it did the public rhetoric leading up to it. Bob and Craig will join AB InBev CEO Carlos Brito, Molson Coors CEO Mark Hunter, J. Wilson of Iowa Brewers Guild and Diana Moss, prexy of American Antitrust Inst, according to release from subcommittee chair Sen Mike Lee (R-UT).

Echoing comments she made previously as well as those of fellow Senators, ranking subcommittee member Sen Amy Klobuchar (D-MN) explained that the hearing will examine "if [the deal] will harm the craft brewers that are creating jobs and economic growth across the country," as well as how it might affect beer prices for consumers. She references "proposed divestitures," and gotta assume that Brito and Mark Hunter will stress that sale of SABMiller's stake in MillerCoors to Molson Coors means no structural change in US and no negative effects on distribution, price, consumer choice, etc. But since SABMiller announced ABI's overture this fall, voices opposing it have pointed to various other simultaneous developments that heighten concern when taken together. And perhaps no other voice has unloaded as consistently on the supposed "competitive harm" and "devastating effects" of the deal as AAI's Moss.

AAI has been raising red flags about ABI-SAB since at least 2012, when in midst of ABI-Modelo deal, it put out a White Paper and 117-page monograph titled "Global Beer: The Road to Monopoly." It wrote letter to US Dept of Justice opposing "the rumored 'ultimate' beer merger," last Nov, in which it asked DoJ to "treat the efficacy of any conventional divestiture with exceptional skepticism." Then too, "there's nothing in this deal that could warrant its approval by federal antitrust enforcers," Moss told Bloomberg in September, before revisiting price/choice concerns and "a harder life for smaller craft brewers," as Consumerist wrote, a month later.

Worries about the effect on small brewers have largely hinged on distribution, offered by Moss and an array of antitrust attorneys, many of whom act on AAI's advisory board. So pair of national advocates for small brewers and distributors as well as Minister of Iowa Beer J. Wilson are all very likely to speak to these concerns. While these broader issues likely to be trotted out for all to see during hearing next week, the critical analysis of this deal will come from Dept of Justice. And that analysis won't be public til far later date.  

Our other anonymous ancient Greek columnist Nestor weighs in on the potential effect of the biggest beer deal of all time, the ABI purchase of SABMiller, on all the smaller craft deals on the horizon.

By Nestor

Well, it would appear that MegaBrew is going to happen. It may take the better part of a year to finalize (probably not an unimportant detail for craft brewers; see below) as various sovereign nations examine the deal's propriety and, in some cases, extract their kilograms of flesh. But it will happen.

It would seem to be good for ABI (or whatever the new entity will be called). It would seem to be very good for Molson Coors. It would seem to be extremely good for SAB Miller shareholders and senior executives, who will be exiting with a vast number of pounds if they wish. But is it good for craft brewers?

Let's discuss.

1) ABI has expedited an agreement with Molson Coors, presumably because of its size (over 10% of MegaBrew) and to get the DOJ approval process going. Also, one expects, to mute the rather outré remarks being made by grandstanding US Senators who have promised to have the perpetrators of the deal pilloried. Still, expedited could still mean quite awhile-like the better part of a year. What will ABI, the US's most active purchaser of crafts, be doing during this awhile? Will it be business as usual, with acquisitions going on as DOJ ponders?

Maybe. But I would think not. I would guess that, as much as ABI may want to continue their craft shopping spree, they are likely to decide to take a little break (though they very well may finish transactions currently in process). MegaBrew is $100 billion or so. A nice little craft deal might be $100 million. I believe that this latter number is 0.1% of $100 billion. Which could mean that ABI's craft initiatives might go into hiatus if the company fears that further craft acquisitions could annoy the DOJ. For how long? Good question. Well, I can't see DOJ prioritizing this case, knowing that approvals in other countries are going to determine the ultimate timeline.

2) As long as we are talking about Justice, what about the BA's and the NBWA's demands that the DOJ "carefully" examine whatever horrible things the "new" US ABI is likely to do. Well, can't criticize Messrs Pease and Purser for doing their jobs and acting in their own self-interests. But ABI in the US will not become more powerful. Nor is global ABI likely to take its new Africa profits and use them to subsidize its US efforts. It's much more likely to work the other way around, with US earnings flowing to Africa (and South America) to build these growing markets. True, Justice did take steps to strip ABI of both the Labatt and Modelo brands in the US; but these deals involved incremental US volumes, which is not the case here. Access to commodities may be a legitimate fear, but I can't see Justice acting on such speculation.

3) Might MillerCoors also postpone its burgeoning craft efforts? Well, it is true that until MegaBrew is completed, MillerCoors will still be a joint venture with SAB Miller. Could or would the latter's board members veto any craft purchase during this period? It's a nice conspiracy theory. But not likely for a variety of reasons.

4) There have also been some thoughts that DOJ's participation (alongside of the state of California) in an investigation of ABI's purchases and ownership of wholesalers in the Golden State could somehow be a factor here. (The theory is that ABI is excluding independent craft beers from these distributorships' portfolios and therefore…well, I am not very clear on the therefore.)

First, it is by and large the craft brewers that are running away from ABI, not the other way around. Second, is ABI for some reason compelled to take any craft beer that wants representation? If a hundred craft brewers demand to join a portfolio, must they be accommodated? Third, nature abhors a vaccum. And so does beer distribution. New craft distribution options continue to emerge. I would be very surprised if this issue finds its way into Justice's MegaBrew deliberations. Craft brewers are certainly free to lobby to have supplier ownership of wholesalers prohibited (with carve-outs for craft brewer ownership, of course).

In conclusion: MegaBrew could take ABI out of the craft deal market for some time. Even with MillerCoors still a buyer, an ABI hiatus would drive prices down (their synergies allow them to make very compelling offers) and thus probably depress deal flow for awhile.

Where will we be when ABI returns? Will there still be plenty of aspiring sellers? Probably more than ever. Will there still be plenty of buyers? That will depend upon two things: how healthy the sellers will look then (in many cases, less healthy as additional competition takes its toll) and where interest rates will be (and they won't be down).

So is MegaBrew good for craft brewers? For aspiring sellers, no. For others, yes, at least for now since ABI not as likely to increase its ownership and thus competitive position.  

In modest way, The Bronx Brewery in a few short years has become a fixture in tri-state area surrounding NYC, at a time the city borough once associated with arson fires and police chases under elevated subway tracks is showing first glimmers of gentrification. It's gotten there thru aggressive branding, strict focus on pale ales ("Our philosophy: Do one thing, & do it right," packaging proclaims) and expansive brewery/taproom, complete with back garden and dog run, that opened a year ago in former ironworks in South Bronx. But as founders Chris Gallant and Damian Brown acknowledge, that tight focus may be reaching its limits now that city has advanced from half a dozen breweries at time BX got started in 2012 to 40 currently, including gypsy efforts. Even the Bronx now boasts several credible players, including thriving Gun Hill Brewing and venerable Chelsea Brewing, re-opening this month in boro after being priced out of its trendy Manhattan nabe and finding it couldn't afford Brooklyn either. "Saying 'We're small, we're local' isn't enough any more," lamented cofounder Gallant, who runs biz while partner Brown oversees brewing.

How BX navigates situation may have relevance to other brewers who're finding themselves engulfed by cluttered market - not least because Gallant, as former Heineken strategy exec, is no naïf in the biz. He described current dilemmas in conversation at taproom last Fri, while Brown worked next door with coffee startup Uptown Roasters prepping coffee for use in forthcoming winter seasonal, Uptown Coffee Milk Stout.

In nutshell, BX is going with cleaner, more accessible positioning for heart of market, while creating opportunities for more assertive styles at margin under the rubric "B-Sides." It's buffed off the rough edges of its branding and switched to more retailer-friendly 12-oz cans from 16's. On track to do about 10K bbl this year, BX buttresses its 20-bbl system in Bronx with contract capacity at Shmaltz Brewing up the Hudson River in Clifton Park, NY. It's distributed by trio of Sheehan operations around NY.

Tho branding via aggressive Goth-style lettering (abbreviated as striking "BxB") drew local admirers, that's been abandoned for cleaner sans-serif look shortened to BX, tho disk icon incorporates trestle image in nod to commuter tracks that carry Amtrak passengers right by imbibers in funky backyard. Older look was "offputting for some folks, too aggressive," Gallant concluded. (That suggests Brown likely won't be showing up at tastings sporting colorful Mohawk haircuts any more, as he did in early days.) Core packaging format of 4-packs of 16-oz cans has been dropped for 6-packs of 12-oz cans, concession to procuring better placement at retail. Gallant professes no regrets about move, even tho it cost BX some out-of-home accounts like arenas and rail lines. Besides, even at roughly same cost per oz, consumers seem to like getting 2 more cans for their money. No point fighting that, Chris figures.

Because "small and local" no longer is sufficient pitch, BX is getting serious about marketing. It's created 3-person marketing team led by Heineken vet Patrick Libonate and enlisted PR and creative agencies, with view to dialing up PR, social media and sponsorship activity, as well as quirky gambits like sidewalk stencils placed around city denoting distance to taproom (much closer than many think). Tho it often taps Hispanic cues via Mezcal-barrel-aged offerings and lotsa baseball references, it plans to make more concerted effort to recruit ethnic drinkers who populate surrounding neighborhoods and represent big upside to craft beer consumption in general. During several visits to taproom, CBN contributing editor has frequently encountered local Latinos who said BX was their first experience with craft beer; they often cited Coors Light or mixed drinks as their prior go-to's.

And while it's sticking with core premise of doing nothing but pale ales - however broadly interpreted - it's tinkering with hierarchy of beers. Pale ale focus proved smart gambit in offering flavorful but approachable beers rather than hop-heavy West Coast-style IPAs like those staked out by Other Half in more progressive Brooklyn market. By now portfolio comprises 4 year-rounders - American Pale Ale, Rye Pale Ale, Belgian Pale Ale and Session IPA - buttressed by seasonals such as autumn brew that uses 25% fresh-pressed apples from upstate orchard. But Black Pale Ale proved "too esoteric for the Irish bars" last winter, Chris said, so this year's effort will meld molasses, ginger, cinnamon and cloves in more approachable brew.

The B-sides, so-named as nod to Bronx's rich hip hop history, have begun appearing every 2 months or so in 40-barrel batches, starting with White IPA last July. Besides reinforcing BX's credibility with aficionados, the B-sides also offer chances to tie into local institutions, say by using Serrano peppers grown in local community gardens for Bronx Hot Sauce Co, or Uptown's coffee. Coming up are likes of Rye Fidelity Imperial RIPA and Say Hey Saison, which pays homage to the Say Hey Kid, Willie Mays, who once lived in boro.

Tho it's close to maxing out current 20-bbl system, BX is fortunate in not facing any imminent production upheavals. Shmaltz has proved good contract-brew partner, following relocation from Midwest copacker that demanded higher minimum runs, meaning beer could be 4 months old before last keg was consumed. (Swapping "Wisconsin" for "NY" on label didn't hurt either, Chris acknowledges.) In a pinch, current footprint can squeeze in more tanks, or accommodate upgrade to 30-bbl system, so no cosmic decisions loom on production side. And co was able to bring in patient family office, Tenth Ave Holdings, last spring to fund growth. So producing the suds won't be a problem for a while. It's carving out a durable niche amid all the noise that represents biggest challenge.  

AB featured founders of each of craft cos it has acquired on panel of The High End unit at its recent St Lou mtg, where all sang AB's praises as partners, as much or more than they told distribs of their plans for next yr. Elysian co-founder, Joe Bisacca said they're "now in this little magical bubble" since Elysian has "all the resources that AB has" while still "able to do what we want, brew what we want." So that "sets us apart from other people out there." To that note, Elysian experimenting extra with its upcoming spring seasonal. It'll brew a "habanero pineapple sour that we're gonna do in a six pack," with full wrap image around the package and 3 different labels matching different parts of the outer pack. Spring seasonals are "always a real tough area" that "don't really move well" tho "everyone tries to do one." So Elysian "taking a chance" and "engaging customers more than we have in the past."

Blue Point's Mark Burford talked about improved quality with AB. Initially "one of my fears was that we were going to be told what to do," and at first AB and Blue Point "weren't quite connected" on how to go about transferring Toasted Lager to their larger brewing system. Ultimately it "chose the right way," the "more expensive way to do it" to "retrofit the brewery" and use "all the expensive ingredients and procedures," to nail the recipe. And now quality has "never been better." Goose founder John Hall echoed Mark on quality, adding that "they listened to us and we got it right." Now Goose is "bigger in innovation than we've ever been." And they "don't have to worry about" not having enough beer to ship to wholesalers anymore, he added. But "have to think I should have waited 4 years," John quipped, 2 days after Ballast Point sold for $1 bil.

Greg Hall of Virtue Cider (John's son) and Golden Road's Meg Gill both praised AB distrib network too. Greg said it was "easier for us to manage a mixed system" of distribs with a small cider brand at first, but they ultimately "didn't get the results." And Meg lookin' forward to extra "marketing support," since previously Golden Road has been very distribution and sales focused. Golden Road officially "just closed our deal about 5 minutes ago," said Meg. So Golden Road will "finally be able to start planning" and integrate "into your network." Panelists concluded that "the opportunity was much bigger" with AB 'cause it brings "the whole package," has better "access to market" and there's "no better solution" when lookin' at "the long view of the beer business." And "together we're definitely gonna win," said The High End prexy Felipe Szpigel.

10 Barrel up 35% in OR thru Sep; Lotsa New Beers, Capacity, and Potential Brewpub Comin' In Oreg, 10 Barrel up 35% to 25,271 bbls thru Sep, according to latest Oreg Liquor Commission Control numbers. That's a marked improvement from +3% thru Jun (see Sep 11 issue), and already about as many bbls as it sold in-state for all of 2014 (25,847). And with expanded distribution into CO and NorCal, seems like a solid yr for 10 Barrel altogether in its first with AB. Similar to other acquisitions, 10 Barrel has "so many different projects right now" that are comin', in large part due to access to "new tanks," "technology" and resources to do things on a larger scale with AB, founders told audience via pre-recorded video (they didn't attend mtg). That includes lotsa "new beers" such as "line of sours modeled after its award-winning Cucumber Crush beer," as well as Flanders-style Red aged for 3 yrs, a barrel-aged Baltic porter and a 17% ABV "experimental beer," reported by Bend Bulletin. 10 Barrel has "a lot of activations" and "a lot of really cool stuff on the marketing and sales side" comin' next yr too, founders said via video. Also, 10 Barrel lookin' into potential new brewpub location, "possibly in Denver" according to Bulletin. "We would have expanded and done a lot of those things to keep our business moving forward anyway. But we wouldn't have had the capital to do it this fast," co-founder Chris Cox told paper.  

After 7 yrs operating as acclaimed Mass gypsy brewer, Pretty Things Beer & Ale Project "is drawing to a close," co announced on its website yesterday. "Interest that followed was so intense, it seemed to crash the site for much of the day," noted Boston Globe article. Founders Dann and Martha Paquette didn't offer specific reason(s) for closing, tho "Beer Scribe" Andy Crouch offered a few reasons via twitter. First off, "the bottom fell out of the 22oz bottle market which hurt Pretty Things' profit," since "keg sales were break even at best." (Editor's Note: another sign craft mkt getting tuffer.) Also, Pretty Things "suffered from lack of physical space, limited by the expense and challenges of operating in Boston," Andy wrote. And lastly, "the whole pay to play backlash was tough on them, both personally and professionally." Recall, last yr Dann publicly called out Boston bar scene for having "pay-to-play" environment, which eventually led to state investigation and (ironically) ongoing action against its own distrib, Sheehan Family Co's Craft Beer Guild of MA. It's "their legacy," said Andy. So now Dann and Martha "head off to a new adventure," and its Jack D'Or brew will "be coming with us," they hinted. They're going to travel for a yr, according to Andy, and will "likely" visit various brewers and do some "collaborative brews." Final batches of Pretty Things will ship over next coupla weeks, and beer should be available thru "at least January 2016," sez co.  

A handful of 120-bbl fermentation tanks stood waiting in Cigar City Brewing's parking lot during a visit by CBN earlier this month. And they'll soon be put to work, perhaps within a month, natl sales director Joe Burns explained. It may still look at expanding production further from home, but CCB will boost capacity at its current Tampa brewery first after recent change to city code. That change raises the previous cap Tampa kept on annual production at "microbreweries" in the city, from 60K bbls to 200K bbls. Those located in most city districts have this option, but they must be on at least 2 acres of contiguous land. The change came just in time too. Cigar City expects to finish the year somewhere around 60K bbls between its facility and production via alternating proprietorship at BrewHub. That would be up 15K bbls from 2014, 33%. So far CCB up 36% yr-to-date to retailers, Joe said. The co's targeting 75K bbls for 2016. Recall, CCB also has standalone brewpub north of Tampa, another small brewpub at Tampa Intl Airport and a new facility producing Cigar City Cider & Mead in nearby Auburndale; production at those locations not included in CCB total.

Cigar City is already in the middle of construction in its packaging hall, prepping to lay a new floor and move some equipment around. It completed a new, much-larger cold storage space earlier this year. That made getting beer out to distribs much easier, Joe said, as the co moves "towards a brew to order format, which is certainly going the right direction," he added. It's got 4 in-state wholesalers and 6 more out of state, but November was only the 3d month that all of 'em received CCB beer. So Joe particularly thankful for distribs' patience outside of Florida. And "their focus and execution has been great for us," he said of all CCB distribs. He ain't just whistlin' dixie: home state Fla remains 95-96% of CCB biz and Joe sees "still a ton of potential here."

Publix Tops CCB Account-List, Natch; Off-Premise Biz Flying in IRI Big southeast food chain Publix is largest account for Cigar City. Their beer team "has really embraced us," Joe shared. So as CCB looks to expand its biz outside of the state, it plans to fill in the Publix footprint, regionally. He's getting the ball rolling in Alabama and Georgia soon. "We hope Georgia will be a big state for us," he said, with somewhere around 200 Publix locations. Packaged beer represents about 58% of CCB's biz, Joe noted. It's currently got 5 reps in Fla with plans to add another in the panhandle. "We are extremely visible in the off premise channel," Joe said, hitting retailers each week, working towards "challenge [of] learning the market better every day."

In total, Cigar City up almost 60% in IRI multi-outlet + convenience data thru 10/25. And like its total biz, CCB's trend driven by Jai Alai IPA in this scanned off-premise channel. It's up 61% and now about 55% of its biz here. But other key brands flying too, including Florida Cracker +68% and Maduro Brown +75%. Invasion Pale Ale up 53%, still about 40% bigger than Maduro by $$ sales in IRI. Only existing CCB brand not growing double digits in IRI: distant #5, Hotter Than Helles Lager, +5% and less than 4% of scanned $$ sales.

IPA Still Leads Pack in Fairly Stable Portfolio; Torcedores Experimental Series So Cigar City's growth in IRI significantly faster than its total biz. Jai Alai is still half its biz overall, up about 40%. Florida Cracker and Invasion each about 12% of CCB total biz, followed by Maduro Brown and all up around 35%. It's also got pretty robust set of specialty brands inside Torcedores series, draft-focused beers created by Cigar City brewers on original 15-bbl brewhouse when inspiration strikes. They've done about a dozen in 2015, each 15-30 bbls. Those largely sold in CCB taproom, which poured a fascinating take on a shandy mashed up with growing Florida Weisse style when CBN visited. Lotsa Florida brewers playing around with traditional Berliner Weisse (a typically tart, wheat-heavy ale often served with syrups to sweeten) by incorporating fruit into the brew. At CCB, resulting 'Lectric Lemon, a 4.2% ABV lemon/grapefruit shandy with lactobacillus (which provides tartness), was a particularly popular refresher to combat Florida heat, which lasted well into Nov this yr.