Craft Brew Guide will be available at the beginning of next week.  So reserve your copy today of this year's edition of the best compilation of data and analysis available anywhere on the fast-moving, ever-changing craft brew biz in the US. Craft Brew Guide includes key numbers: segment totals, top brewer totals (every player 100K bbls+), retail trends and more. Craft Brew News and beer marketer’s INSIGHTS editors provide analysis of trends, top craft brewer profiles and put craft in the broader context of US beer. Graphics bring the numbers alive and PDF and 6X9” printed formats are handy for quick reference or extended review. Brewers, distribs, retailers and suppliers alike need Craft Brew Guide to stay on top of trends, plan strategy, bring staff up to speed and more. Click here for more info and to order your copy. At only $199 for the electronic edition or $249 for both electronic and print, Craft Brew Guide is a great value addition to your personal and company libraries.

News that ex-Mich beer distrib Keith Klopcic made investment  just a few mos after selling his longtime stake in West Side Beer got us wonderin’ about what seems like a trend.  Keith is at least 4^th  ex-AB distribs who bought into a craft brewer upon selling their beer distribution stakes (compared to no MC distribs that we know of). After cashing in their distribution chits, each of these individuals reinvested in beer biz on the brewing side; in very segment that’s frequently giving their former lead supplier fits. 

Do these former distribs just love the beer biz and want to stay in, in a different form?  Do they have extra money to invest and see the growth oppy? Do they understand some of AB’s vulnerability from the inside?  It’s likely all of the above.  Each of these scenarios emerged in just the last 18 mos or so.  Keith, a one time AB wholesaler panel chairman (as was his brother Don, more recently) will now be prexy of Perrin. 

Plan to take over Perrin only came together after Keith had sold his interest in West Side to his brother Don, Keith told mlive.com.  Perrin has 700 taps in Mich, with 250 in Grand Rapids alone.  One popular Perrin brand is a grapefruit IPA, “a huge opportunity,” Keith said.  Could be canned this summer with Oskar Blues on board. 

In addition to Keith, the Pearlstine family of Charleston, South Carolina bought Palmetto, Ed Crowley, formerly of Dichello Dist in Conn bought Stony Brewery and David Fields, formerly of Consolidated Bevs in Mass, bought into Wormtown Brewing.  (See Craft Brew News Vol 5, #53, #56.)  How many more are not publicly known or still to come?

And it’s not just ex-wholesalers.  There are so many ex-AB employees that have invested in or work at craft brewers, a veritable army of folks.  Some of the most visible include the leaders/owners of Brew Hub, Urban Chestnut and O’Fallon, each of which is headquartered right in AB’s backyard and experiencing rapid growth.  This just scratches the surface. All this talent formerly associated with AB, now lined up in competition, and collectively, it’s gotta have some effect. 

Scotland-based BrewDog reported earnings shot up 69% to 4.9 mil pounds or $7.3 mil in US $$ in 2014, reported The Herald Scotland.   A 64% surge in sales to just over $44 mil was fueled by opening of 12 new bars, 6 of them in international mkts last year.  That brings BrewDog’s total bar count to 26 with more planned this yr including openings in Berlin and Rome.  “2014 was an epic year for BrewDog and the craft beer industry as a whole. Our growth has shown that with a healthy disregard for the impossible you can achieve anything,” said co-founder James Watt.  BrewDog, which now ships to 55 countries, is spending just shy of $30 mil to expand its brewery to keep up with production.  BrewDog expects to add another 130 jobs at expanded brewery when completed in 2016.  Co is also “mulling plans to build a brewery in US,” noted Herald. 

New Holland total sales up 52% in Q1, sales veep Adam Lambert (previously with Dogfish Head) shared in note to wholesaler partners.  In 2014 New Holland grew shipments 19% to 31,000 bbls, Adam told CBN, so that’s a big acceleration to start the yr.  Recall, New Holland actively expanded footprint last yr into 8 new states – CO, NE, KS, IA, CT, MA, RI, TN – likely contributing to the boost.  Yet home-state Mich sales are up 33% and accounts for 46% of the biz, and total Mid-West accounts for about 3/4 of total biz, up 22%.  Two key brands – Dragons Milk and The Poet Oatmeal Stout – are up 40% plus, driving co growth.  Together those brands account for half of New Holland’s total case biz (Dragons Milk accounts for 32%, The Poet accounts for 18%).  Rest of core portfolio collectively grew 30%, led by Mad Hatter brand (13% of total case biz).  Its Cabin Fever seasonal was up 30% in Jan and Feb vs 2014, and White Hatter Belgian Pale Ale launched Mar 1 driving 70% increase in depletions over vs Mar 2014.  Chain biz is rockin’ too, up 42% to #48 craft vendor in IRI tracked food stores, Adam noted.  Flagship Dragons Milk “led the pack” up 74%, “generating a whopping $95.42 per case basket ring.”

Lastly, gotta note, there’ll be “Big News on April 15^th,” Adam hinted, so “stay tuned for more updates but we will be turning the world upside down with something special.”  Guess we’ll hafta wait and see. 

Oskar Blues sold majority of its biz to Fireman Capital, reportedly for a valuation of over 15x EBITDA, CBN hears.  For how long will craft brewers continue to receive such rich valuations?  Another craft deal could be coming soon.  In fact, a new player may soon enter scene, with an interesting angle.  The private equity firm Friedman, Fleisher and Lowe in San Francisco has partnered up with ex-Harpoon founder Rich Doyle.   Rich is reportedly assembling team of execs, who will help run craft cos which FFL buys stake in. Stay tuned. 

It doesn’t seem to matter what happens underneath the hood of craft segment, cause it keeps postin’ 20% gains time and time again.  It’s no different in 2015 so far in latest scans.  Craft $$ up 20% to 8.2 share in IRI multi-outlet + c-store data thru Mar 22, wrapping up most of Q1. 

Sierra Nevada trend improved again in latest 4 weeks, putting total co up 28% yr-to-date thru Mar 22.  That adds up to 0.6 share gain of craft $$ (a full share of craft volume), a good chunk of share it’s lost in the past two years.  Sierra Variety Pk (+938%) is virtually all of that hefty share gain, yet all top Sierra brands up double digits plus too: Sierra Pale (+10%) and Torpedo (+16%) maintained solid growth rate thruout Q1, and Sierra Seasonal (+18%) accelerated each mo this yr (up 34% last 4 weeks).  Recall, Sierra Seasonal was down 7% last yr this time.  Lagunitas hasn’t missed a beat either, up 60% thru Mar 22.  It’s IPA (+61%) has solidified top spot among all IPA brands in scans after sales passed Sierra Torpedo earlier this yr.  And Little Sumpin’ Sumpin’ keepin’ a 60% plus growth pace as well.  All in, Lagunitas snagged another 1.26 share of craft $$ to just over 5.  Stone (+36%), SweetWater (+41%) and Bell’s (+29%) were other top craft cos that gained share, collectively up over a half share.   

Meanwhile, Boston Beer total $$ up solid 16% YTD tho Sam Adams top brands off to tuff start in 2015.  Sam Seasonal $$ flat, Boston Lager -3% and Sam Variety Pk down 14% (volume down for all 3).  Sam Adams Rebel IPA doubled vs last yr, yet startin’ to cycle and more like +20% in latest 4 weeks.  Still, if Rebel can maintain that kind of growth along with Rouser and Riser intros, it should bode well for Boston Beer.  New Belgium up 8% thru Mar 22, tho flat for latest 4 weeks.  Shed 0.9 share of craft $$ YTD.  Recall, NBB facin’ tuff comps vs last yr when co was rockin’ 40% plus trend around this time, and was 2d highest share gainer behind Lagunitas.  Fat Tire and Ranger IPA growth rates slowed to single digits (down for 4 weeks), and NBB Seasonal down 13%.  Yet NBB Variety Pk up 40% plus.  Remaining top cos’ trends were mostly low-double-digit to high-single-digit gains: Gambrinus up 8%, Craft Brew Alliance up 5%, Deschutes up 12%, Dogfish Head up 19% and Duvel USA up 10%.

Leaders of three of the biggest breweries in PA touched on everything from 20 by 2020 to state and federal regulatory issues, craft M&A and more during dinner discussion at Brewers of Pennsylvania (BOP) event at Fegley’s Allentown Brew Works last night. Yuengling prexy Dick Yuengling, Boston Beer chairman/founder Jim Koch and Victory Brewing founder/BOP prexy Bill Covaleski,“some of the greatest minds in beer,” as BOP exec director Dan LeBert intro’d them, took on these hot topics. Repeatedly, the panelists referred to beer entities and interests outside the room, often differentiating themselves, as a group, from those bizzes.

After a little Yuengling history, moderator Steve Hindy, founder of Brooklyn Brewery, kicked off asking Jim if Brewers Assn’s 20 volume share by 2020 goal is “possible” and how. “Throw in cider, you might get there,” Jim quipped after noting the “flat” or “stable” state of total US beer volume. To get there, small brewers will need to work against the “market clout” “distributor clout” and extensive “resources” of bigger brewers. Small brewers have been able to “combat some of the entrenched brewing interests” in US, Bill said. Later, he added that small brewers have “stormed the castle walls of the biggest brewers in the world,” and took positive view of how “mainstream” craft is becoming, “a wonderful thing.”

Returning to question about which kinds of beers will help craft hit 20 share, Steve later asked about “bitter styles.” Jim offered that “I don’t think there’s going to be a ‘next IPA.’” Bill noted that many brewers started making “American-style versions of British Ales,” which led to formulation of American IPAs. Then small brewers started Americanizing (i.e. with American hops) Belgian styles. So, “the next style of beer” to get that treatment, Bill suggested, “is probably lager.” Yuengling will take part in that, it seems, as it will “come out next year with an IPL,” or India Pale Lager, Dick revealed. “Craft brewers are gonna keep it going,” he said.

Of Packages in Pennsy and Taxes in DC Early in the discussion, Dick referred to the success of “more flavorful” beers before turning to the way big brewers “block you from trying to get shelf space in grocery stores.” He then quickly segued right into package reform, much on the minds of PA brewers these days. “A change in the distribution can be quite scary,” Dick said, before urging audience to “keep supporting the little guys.” Later on in discussion, he returned to topic, calling recent PLCB decision (to allow small “home d” retailers to sell 12-packs) a “lousy thing to do.” At this point, Dan tried to quiet the noisy room to listen to a discussion that’s “very important to this Commonwealth.”

Bill reiterated the “brewers’ standpoint” against the change and possibility of 18 pks. Pennsy law “conditioned” brewers to build bizzes with understanding that the “primary way of selling is in the case.” But with recent decision, PLCB turned around, said “our interpretation is incorrect,” Bill paraphrased. “In golf, that’s a mulligan,” he said. He noted brewers’ goal to give consumers the “best-flavored beers in most-convenient packaging.” But the decision was “not very respectful of the industry we’ve created here,” implying the work of outside interests as Dick had. He expects “more change to come,” and “that change is probably going to make us change a bit more,” he said. “Keep your seatbelt fastened.” Later, Bill argued that “the Pennsylvania system is not broken by any means,” adding “look what we’ve done together.”

Panel took on federal excise taxes too, teed up by Steve who described Small BREW Act as reducing taxes to brewers under 6 mil bbls, so “everyone sitting at this table.” But “the large brewers,” he explained, “have asked Congress not to sign onto our bill.” So did NBWA, he said, and now the “teamsters union weighed in on the side of the big brewers.” So what are the bill’s “prospects,” he wondered. The “first issue,” Jim said, is that there are “no good prospects” in Congress “for anything these days.” The other assns “played nice,” Bill said “for 4 years.” But now that small brewers “have momentum,” he argued, those assns decided it was “time to start opposing that.” When you’re successful, “you find out who your friends and your enemies are,” he thinks.

Of M&A by Big Brewers and Private Equity Does the “unprecedented amount of money” coming at small brewers “change the business,” Steve asked. “It probably will,” Jim said. “Would you feel differently,” he asked the crowd, “if we were owned by Anheuser Busch?” Small brewers’ “allies are the drinkers,” he said, adding that “luckily, the drinkers are on our side.” Dick noted Shock Top and Goose Island, AB’s attempts at “giving their wholesalers” brands to compete against craft. While “Jim’s all over,” he said, referring to Boston Beer distribution, “we’re not,” he added.  And AB doesn’t “want to see Yuengling in a Bud house” as it expands.

Meanwhile, Bill gets an “awful lot of phone calls from the folks at venture capital and private equity,” he said, quickly assuring the audience that they’re “only short conversations.” But he took pragmatic view of PE buying into craft brewers. When brewers agree to deals, it’s “usually a very level-headed and sober decision,” in his view. “You will see those businesses” change ownership “to other partners,” which is “natural.” But he insisted that beer drinkers “just pay attention to the quality of the beer.” Jim too turned to quality later on. Steve asked what advice he would give to a prospective brewery owner. “I don’t think it’s really changed,” Jim said. “Don’t get into it unless you have a real passion,” not for biz but for beer and for brewing, he said. And “make sure you make a darn good product.”

Craft Brew Guide will be available within less than a week.  So reserve your copy today of this year's edition of the best compilation of data and analysis available anywhere on the fast-moving, ever-changing craft brew biz in the US. Craft Brew Guide includes key numbers: segment totals, top brewer totals (every player 100K bbls+), retail trends and more. Craft Brew News and beer marketer’s INSIGHTS editors provide analysis of trends, top craft brewer profiles and put craft in the broader context of US beer. Graphics bring the numbers alive and PDF and 6X9” printed formats are handy for quick reference or extended review. Brewers, distribs, retailers and suppliers alike need Craft Brew Guide to stay on top of trends, plan strategy, bring staff up to speed and more. Click here for more info and to order your copy. At only $199 for the electronic edition or $249 for both electronic and print, Craft Brew Guide is a great value addition to your personal and company libraries.

Craft Brew Alliance is taking baby steps, it seems, towards bringing any other brands officially into its portfolio. After “strategic partnership” struck late last year, CBA announced “distribution agreement” with Appalachian Mountain Brewery today. The small North Carolina brewery’s brands will soon hit some of CBA’s (that is, AB’s) distribs. And AMB could get some expanded production at CBA’s breweries, but co’s still “discussing opportunities,” release notes. So AMB gets more distribution, clearer pathway to volume, sales growth. CBA gets to “market, sell, and distribute” AMB beers, put some extra focus on (and likely build some relationships in) hot NC market.

Not all beer-related expansions involve making room for more, bigger tanks. As baseball season hits, plenty of minor league outfits teaming up with local brewers. But craft’s coming to the big leagues too, including in nation’s capital. National Park’s new neighbors will be Bardo Brewpub and beer garden, on 2 acres next to the major league stadium, according to Washington Biz Journal. It’ll be new location, with 25-bbl brewing system, for Bardo owners, operating in DC since 2013 and itself “a reincarnation of the Arlington brewpub that helped launch craft beer in the DC region in the 1990s,” per report. Across the country, Anchor Brewing getting ready for first season of its new pop-up “beer garden” in parking lot at San Francisco’s AT&T Park. In meantime, brewers operating in the already well-developed SF/Oakland market about “to nearly double,” San Francisco Chronicle reported over weekend. “Taprooms and gastropubs are becoming what sushi bars and cocktail lounges were to the 1990s,” according to report. Current, but outgoing exec director of SF Brewers Guild Brian Stechschulte “[rattled] off a long list of coming-soons” before copping to “losing track.” Brian just announced he’s headed to marketing role at Speakeasy Brewing in coming weeks, just one piece of fast-changing Bay Area scene.

A pair of Twin Cities-area entrepreneurs looking to go big and small at same time: 10K Brewing founders just signed lease for less than 2000 sq-ft spot in nearby Anoka, with plans to produce just a few hundred bbls per year plus “100 and four taps, with a beer selection that will rotate weekly,” Minneapolis/St. Paul Biz Journal wrote. Kickstarter’s set up, renovations just began and co hopes to open this summer. Down in Alabama, much smaller tap list of 32 soon to be available at “beer nerd’s paradise” building out in downtown Huntsville, AL.com reports. Founders of Old Town Beer Exchange want taproom (no brewery) “to be all about ‘craft,’” co-founder Matt Fowler told paper. “It’s more about the maker than it is so much the thing.” Small group of founders already thinking about expanding bottle-shop/taproom combo concept in other nearby areas. Elsewhere, Las Vegas-based Motley Brews beer fest organizer plans to go to bat in “major leagues of craft beer,” launching its first fest in San Diego this summer. Ticket sales for Vegas events up 15-20%, Motley Brews owner Brian Chapin told Las Vegas Review-Journal; previous events hosted 6,000 and 3,000 attendees. With ticket prices ranging from $30-85, no wonder beer festivals becoming big biz across US.