On mark of its 20^th anniversary, MC’s Blue Moon announced it’s building a 10,000 bbl/yr innovation and pilot brewery “in the heart of Denver’s rapidly growing RiNo Art District,” founder and head brewmaster Keith Villa said in release.  Brewery is expected to “open its doors in 2016.”      

Iowa’s Toppling Goliath Brewing is next to announce partnership with nationwide contract concept, Brew Hub (first brewery partnering with its St Louis facility).  Toppling Goliath produced approx 3,200 barrels in 2014 but new partnership with Brew Hub will “allow the company to increase its volume to nearly 20,000 barrels annually,” per release.  Brew Hub is already currently brewing a couple of Toppling Goliath’s beers and “the first batches will be packaged in early May and sent back to Iowa,” reported USA Today separately.  Co is currently available in IA, IL and WI, and has plans to “eventually” expand into Minnesota and have some distribution in Fla via Brew Hub’s Lakeland facility.  Recall, Brew Hub expects its 2d facility in St Louis to be completed by next yr, which will allow Toppling Goliath (as well as other brewing partners) “capacity to expand their distribution throughout Missouri and eventually throughout the Midwest, release noted. 

CT’s Two Roads Brewing “expects to ship 1.5 million cases this year, about 70 percent of it bottled for others and the remaining 30 percent under the Two Roads label,” reported Greenwich Time after founder/ceo Brad Hittle spoke at Northeast Consumer Products Conference last week.  That means its Two Roads brands expected to double production to about 33,000 bbls in 2015 (from 16,800 bbls last yr), and its contract biz would grow from 53,000 bbls to over 77,000 bbls.  Next mo, co will complete installation of “a quartet of 50-foot-tall fermentation tanks” to give it “ample new capacity.”  Two Roads currently contracts for 13 breweries ranging from mid-sized craft brewers such as Blue Point (owned by AB) and Terrapin (MC has 25% stake), to microbreweries such as Lawson’s, Evil Twin, Stillwater and Notch.  Last yr Two Roads annual revs reached $22 mil, “easily besting the $12 million forecast,” Brad said.  

Then too, “you have to have (the) ability to invest in the marketplace,” said Brad.  “Going to a distributor and saying ‘Yes I have the liquid, I’ve got the packaging, but I’m going to spend $8 a case in your market and $3 a case in your market…will open a distributor’s eyes in a big way, because very few of these craft breweries invest money in selling and marketing.”  Separately, Brad “expressed caution about attempting to duplicate” Two Roads concept in different parts of country and/or overseas.  “That doesn’t mean we couldn’t do Two Roads West Coast, Two Roads Europe, Two Roads Asia… (but) there would have to be an immediate demand for that to validate the model and we don’t know yet if the Two Roads brand can carry in California.  Right now we’re making it carry here and we’re getting a national reputation,” he said.  

We briefly caught up with Dogfish Head founder Sam Calagione the other day as he was getting ready for Craft Brewers Conference. At CBC, Dogfish Head will host or co-host events featuring Sam’s beer geek hip hop band Pain Relievaz, opening for pioneering rapper Tone Loc, collaborative brew with local brewer John Harris of Ecliptic, and the Amber Waves party featuring local art and craft beer, among others. But Sam had other recent developments on his mind too.

As “excitement” about American craft is “at all-time high,” Sam sez, small indy brewers are attracting keen “interest” from “financial world,” “world’s largest brewer” and “mid-sized overseas brewers” alike. Sam sees the “acceleration” of recent deals and timing as “not coincidental” with CBC coming right up. And he expects “most top 50 craft brewers will be having meetings” at CBC. Indeed, Sam too will be “taking meetings,” he said, tho he wouldn’t elaborate, other than to point to successful partnership he’s had with Mario Batali and Eataly as just one example of what’s possible.

Dogfish Head “is 100% committed to staying within the BA definition” of a craft brewer, Sam said. And that definition is “more important than ever.” Recall, that definition has changed several times over the years but craft brewer is currently “small” (6 mil bbls or under), “independent” (less than 25% owned by a larger alc bev co that is not a craft brewer) and “traditional.” Editor’s Note: those who sell control to private equity firms with billions under mgt are viewed as “small” and “independent” under BA def.

“I am sure there will be tons of brewers taking meetings with bankers and all kinds of business people,” reiterated Sam. “But for most us as craft beer peeps and brewers, CBC is about catching up with old friends, learning from each other in our seminars and informal chats and making new friends," continued Sam. "Regardless of all the flirting with money people and power brokers that will be happening with a small fraction of the attendees, this is the craft brewers conference, this isn't tinder.” While “I am sure more deals will happen,” Sam expressed his hope that as “people talk more about deals,” folks “don’t allow that to consume the spirit of CBC.” But is “soul” of craft slipping away a bit with all the big money coming in, CBN asked Sam, following up one craft brewer’s recent comment to us. The BA and CBC are a big part of where the “soul” of craft still resides, according to Sam. It will be interesting to see how that “soul” manifests itself at CBC this week with 11,000 people.

What about Dogfish Head’s Search for Sales Veep? “We have two great candidates for our VP of sales position. We are really taking our time with this important hire,” said Sam. “We have many strong performers in our sales world and are ahead of our budget to grow 11 percent this year, so we don't have to settle for a good VP. We can be particular and find the best person for the role.” 

Elysian co-founder Dick Cantwell gave notice of his resignation from AB this morn, effective in about 30 days. Dick said he was “never really part of the process” involved in selling company. And it was “getting controversial” so that he had to resign as head of Wash craft brewers guild and was relieved of many BA duties. As a former BA board member, Dick “knows where the lines are drawn” and is fine with how BA handled that. During selling process, his partners had “diminished my role” and at same time “tried to sell me as part of the deal.” Since then “situation deteriorated” further. And he also knows his “heart lies elsewhere. I’m a craft brewer.” As for AB, “they have been very polite” and offered him many opportunities. In fact, he just got back from Patagonia. He and Goose Island founder John Hall were consulting for ABI on a brewpub there. What’s next for Dick? He will finish writing a book with New Belgium’s Peter Bouckaert on wood-barrel aged beer.

How much more developed can craft segment become in already its most developed mkt, Portland, Oreg?  Nobody knows for sure, but one thing’s certain, craft keeps growin’ here, and it ain’t slowin’ down.  Craft kept up low-double digit growth pace to start the yr, snagged nearly another 3 share of $$ to 42.2 of total beer sales in Portland IRI foodstores thru Mar 29.  Both craft and cider segments’ market share in Portland foodstores are more than 2.5X their market share in total US foodstores.  Astoundingly, craft and cider (up a full share pt to 6.3 share) together make up nearly half the beer market in Portland foodstores.  Could look different in other channels.  And craft certainly seems to be more than half of on-premise, tho much harder to track with many small local players doin’ swift biz at their taprooms.

Interestingly, growth has come from a variety of different cos in just the last handful of years.  Currently no co is gaining share faster than Hop Valley in Portland.  It’s $$ up 167% and gained 1.8 share of craft thru Mar 29.  That puts sales ahead of long established Rogue Ales (+12%).  Hop Valley has spacious, bustling brewpub a couple hours south in Springfield and opened a production facility and tasting room mid-2013 in adjacent Eugene.  Several other newer, smaller local cos among top share gainers in scans too.  In fact, 8 of top-10 share gainers were Oreg cos, including: Hop Valley (see above), Worthy Brewing (+204%), Laurelwood (+59%), Goodlife (+107%), Breakside (+120%), Fort George (+61%), Pelican Pub & Brewery (+65%), and Caldera Brewing (+141.5%).  Collectively they gained a hefty 5.25 share of craft $$ to 11.5.  Two out-of-state cos that gained most share were Elysian (+50%) and Sierra Nevada (+21%).   

Yet last few years it was 10 Barrel takin’ the market by storm, and this year (1^st with ABI) it’s $$ sales only up 6% and shed 0.3 share of segment in largest in-state mkt thru Mar 29.  Ninkasi (+5%), another co that’s grown great guns in last handful of years, also losin’ share at home this year, -0.6.  And cos that’re losin’ most share of all are mostly the older, larger, long established Oreg cos.  Gambrinus (-23%) lost most share of craft $$ of any co in Portland to-date, -2.1, with its Oreg-based Bridgeport brands.  Deschutes $$ up 3% (vol down 4%) in home scans.  Dropped 1.3 share of craft, tho still has 14.1 share.  And to lesser extent Craft Brew Alliance (+9%) and North American Breweries craft portfolio (+3%) each down half a share (CBA actually gaining share of volume, +0.35 to whopping 17 share of craft cases).  Contrarily, long established Full Sail up 14% and gaining share of craft $$, largely due to its new Session IPA and Session Pilsner brands, as well as Session Black Premium Lager (+47%) and Session Fest Red Lager (+76%).  Meanwhile New Belgium (-6%) and Boston Beer craft portfolio (-22.4%) each lost over half a share of craft.

Widmer Much Healthier at Home; Top-6 Brands Up 29% Widmer is 2d largest craft brand family in Portland IRI foodstores (behind only Deschutes) and has struggled in recent yrs at home.  Yet Widmer startin’ off 2015 hot in Portland foodstores.  It’s got 6 brands in top-100 brands here, collectively up 29%, +1.4 share to 11 of craft $$ (+0.9 to 4.6 share of total beer).  Its largest brand, Widmer Hefe is largest craft brand in Portland scans and back to growin’ double-digits (+15.5%) to start the yr (vs +2% in natl IRI foodstores).  Widmer Upheaval IPA is driving majority of growth, up nearly 5X in its 2d yr, gained 1.1 share of craft $$.  That makes it the largest gaining brand in Portland foodstores to date, just ahead of Deschutes Fresh Squeezed IPA (mostly incremental gains, +1 share).  Widmer Seasonal up 65%, Widmer Variety Pk up 18% and Widmer Drop Top Amber Ale up 13%, tho each were down in 2014.  Only Widmer Drifter Pale Ale is down this yr (of top-6),

-20%.  CBA’s Kona and Omission top brands are all up solidly for yr as well, however Redhook top brands took a hit: Redhook Long Hammer -12.5% and Redhook ESB -34%.

The Craft Brewers Conference officially begins tomorrow night and will be pushing a record 11,000 here in Portland, nicknamed Beervana. There will be some 100 events associated with CBC alone. Portland proper had 58 breweries at the end of 2014, while metro area over 80 and Oregon has 220. (Updated numbers will be released by the Oregon Brewers Guild later today.) Craft Brew News visited a number over the weekend, including Cascade Brewing, aka House of Sour, the brand spanking new Commons, Hair of the Dog, and Green Dragon all within a few blocks of each other. And all were doing lotsa biz on a Saturday afternoon. We also visited Deschutes huge and highly popular brewpub in the Pearl district. More details on Portland’s highly evolved beer scene in a future issue.

Basic point is that while craft beer is over 40 share of $$ in Portland foodstores (see below), in each of these on-premise establishments, craft is usually 100% of beer consumption. And so, the biggest brewers who are still over 70% of US beer market, basically don’t exist in those accounts, which are a growing portion of the biz. As thousands of beer folks from all over will experience during the course of this week, Portland is an example of just how far craft can go, at least in some geographies. 

We just released our 2d edition of this unique publication, perfect for checking stats and quickly getting up to speed on this fast-moving beer segment. Craft Brew Guide pulls together data from multiple sources and pairs it with the insights and analysis only Craft Brew News’ experienced editors can provide. As the only source that offers such a broad view of craft’s growth in one handy volume, CBG makes the perfect training manual for new employees and partners. One spin through the CBG gives readers long-term looks at craft in the context of the overall beer industry, deep dives into top players and important markets, insightful yet quick-hitting analysis of key topics like M&A, distribution, legal and legislative issues and more. Order this one-of-a-kind volume here or call us for multiple-copy rates and more info: (845) 507-0040.

In trio of very different communities, small breweries keep on finding places to grow nearby other breweries, a group of local Biz Journal articles report. In Kansas City, 6 metro-area breweries opened in the last year, pushing total up to 20. Two of 6 opened in Crossroads Arts District, which will see another couple open in the next year or so, according to KC Biz Journal. Part of growth in area and city generally due to “changes in local law” adjusting license availability and requirements. Breweries are “really helping each other out because people are going to come to all the breweries,” founder of just-opened Border Brewing, Eric Martens, told paper. Brewers Assn director Paul Gatza echoed the sentiment, noting that “a lot of the sales are coming from the tap room,” which across the US “are becoming cultural hubs.” Boulevard is far and away largest local brewer, more than 10X size of Granite City and Tallgrass, each 15-16K bbls in 2014, per paper. Free State, at about 11K bbls, and Weston, at 3000 last yr, rounded out KCBJ’s top 5. When the paper asked local breweries about challenges and barriers to growth for yet another piece, a few brewers on the Kansas side cited “alcohol laws,” and others pointed to forecasting and managing growth, marketing and branding, raising capital and more.

In upstate NY, Albany Biz Journal surveyed 28 breweries, 16 of which opened in last 5 years. In Greene County alone, the fifth of 5 currently-operating breweries just opened and a 6th is slated to open this yr. The “thriving Greene County industry,” according to county Chamber of Commerce exec director Jeff Friedman is “an important economic driver for us.” Meanwhile, in Baltimore area, Jailbreak Brewing is doubling capacity to be able to brew 7000 bbls/yr, after opening in 2013. The brewery’s footprint has already doubled from 10K to 20K sq-ft. Expansion into DC and Virginia markets is on hold as “we are out of beer,” co-founder Justin Bonner told Baltimore Biz Journal. “We’re way behind.” Tanks come in June. That’s just after planned opening of coming Waverly Brewing, just across the Jones Falls Expressway from Baltimore’s Union Craft Brewing, according to separate BBJ piece. The 5-bbl brewery on 4000 sq-ft plans to open mid-may.

In case you lost track of all the new markets craft brewers launched in the last mo, we've put 'em all together for you inone handy pdf. Organized by state, this list includes craft brewer distribution expansions with sales expected to begin in Mar 2015, as well as a preview for Apr 2015 expansions.  While it may not be comprehensive, this list includes announcements made by the largest craft brewers and many expansions by smaller players.