A few mos after Breckenridge Brewery announced plans for $20 mil new facility on 12 acres in Littleton, Colo, co just “installed the last of its 16 400-barrel fermentation tanks on Thursday,” and is set to open by Apr 2015, reported Denver Business Journal.  New brewery will instantly up capacity to 120,000 bbls per yr, and eventually boost annual capacity to 300,000 bbls.  Takin’ a page from some other big destination breweries thruout the country, Breckenridge will include a hop garden, 270-seat restaurant, concert area, and bike path “connecting to one of the most trafficked cycling trails in the area.”  “I don’t think there is anything like this in Colorado,” director of mktg, Todd Thibault told paper. Meanwhile “Breckenridge will sell its current main production facility and restaurant on Kalamath Street in Denver,” but will continue to operate other restaurant locations, paper added.  This yr Breck’s on pace to produce 70,000 bbls, about 13% growth over last yr’s total, and is currently available in 35 states.

Then too, Oh’s Columbus Brewing purchased 50,000 sq-ft “former Hill Distributing Co. warehouse,” that’ll get em’ to 20-25,000 bbls per yr with “plenty of space to expand,” founder Eric Bean told Columbus Dispatch.  Ironically Hill Dist was Columbus’s first distributor ever back when brewery started in 1988.  Current 6,000 sq-ft facility couldn’t even “squeeze another tank in,” Eric added.  All in, project pegged at $5 mil, and expected to be “up and running by late spring or early summer” next yr.  Columbus expects to brew 12,000 bbls in 2014.

Smuttynose Launches Texas with Ben E. Keith This Wk  Another regional brewery just finished a major capacity expansion and announced a statewide launch in Texas.  This week, it’s NH’s Smuttynose Brewing, which appointed Ben E. Keith for its Lone Star State distribution.  Smuttynose brands now available in 25 states and 5 countries.

Brewers have leaned into area codes when bolstering local support for their brands, but that push seems to be generating a lot of pull too.  Goose Island’s 312 series has expanded well beyond the Chicago area code’s limits, but plenty of smaller examples have recentered sales closer to home.  We’ve written about Firestone Walker’s success with 805 boosting the brewery’s overall trends north of +50% this yr.  In Ida, Grand Teton Brewing’s 208 Ale, released for the first time last yr, has helped its home state sales trend jump up to +70%, according to an Idaho Statesman report.  It’s pulled back from a much-broader distribution territory of 24 states over the last few years to 14 currently, after new ownership took over in 2009.  Sales in Ida, Wyo and Mont make up about half of total sales, but success of low-alc, all-Ida ingredient 208 Ale could shift that.  It’s the #3 draft brand for Grand Teton’s southeast Ida distrib, “behind only Budweiser and Bud Light,” per the Statesman.  

Grand Teton expects to produce around 10K bbls again in 2014, about the same as it’s been for the last few, but local sales and focusing on finding cost efficiencies “should allow it to be profitable for the first time,” the paper wrote.  “It is tough now,” the co’s COO Rob Mullin told the paper, “it’s harder to make headway with all these new breweries out there.  We’re kind of sitting tight, really focusing on the cost side, working hard to keep our quality getting better all the time,” while looking for organic growth to get it to 20K bbls.  Meanwhile, less than 5-yr old Payette Brewing looks to jump from just over 5000 bbls last yr to between 9 and 10K bbls in 2014 and Sockeye Brewing of Boise is headed from about 5000 bbls to 7500 bbls after expanding from brewpub sales with a production facility opened in 2012.

“If we disappeared off the face of the Earth today,” Flying Dog ceo Jim Caruso recently said of his Frederick, Md-based brewery, “nobody would be out of beer.”  So he and his co-workers “want to be a part of the community in a way that would make people miss us.”  That view defines and drives the brewery’s partnerships with local Baltimore-area charities, artists and museums, sports teams and venues and recently classic Maryland brand OLD BAY.  Recall, Flying Dog’s special summer release with the popular seasoning, Dead Rise, blew away expectations (see Jul 28 issue).  It’s also taken the co’s continual refocus on its Mid-Atlantic home market further, faster.  Flying Dog’s total shipments grew about 60% between 2008 and 2013, from about 50K to 80K bbls.  Meanwhile, Mid-Atlantic sales have grown upwards of 1000% in the last 5 yrs, Jim told CBN, and closer to +1400% when narrowing focus to Md, DC and Northern Va.  Flying Dog has “doubled our volume in the last year” at home, he added, and expects to finish out 2014 up about 18%.

That kind of growth would put the brewing co in the mid-90K-bbl range and Flying Dog’s current facility can handle between 100-110K bbls.  On its path to be “a dominant regional brewery,” Flying Dog has “a lot of room before we’re selling 100% of our beer here,” Jim told us.  So the co’s developed “four different expansion scenarios,” tho “none of them involve a second brewery” further afield.  He expects a decision to be made on which expansion route to take by January, reminding that it could be “two years between planning and getting equipment.”  In the meantime, “none of our core market areas are in danger of interrupting supply.”

Flying Dog’s already shown willingness to reallocate shipments closer to home when capacity got tight this summer with the unexpected success of Dead Rise.  The co “suspended shipments to some states for 6 weeks,” Jim told us, as the co worked focused attention on supplying Dead Rise demand.  During this peak period for the brand, Flying Dog was “selling Dead Rise at an annualized rate of about 800K CEs,” suggesting folks were picking up somewhere over 1100 bbls per week.  Jim doesn’t expect to duplicate the runaway success next year, but the co is working on getting Dead Rise “officially licensed” by Old Bay makers McCormick so it can be a “regular offering” during Summer, shipping during May and June so sales “peak on July 4” and “tail off.”  

Its other brands continue to grow too, particularly its leading IPAs, just like plenty of other brewers.  Belgian-style IPA Raging Bitch “has been #1 since the month we released it” in Dec, 2009.  Snake Dog IPA was up 30% last yr and “trending up in the low 30s-percent range” in 2014.  And “Pale Ale is still solid,” Jim said.  Those 3 brands typically represent somewhere around 70% of sales, but Dead Rise could throw that off a bit in 2014.  Recall, the co has intro’d a few other hop-focused brands this yr too, with debut of Easy IPA, a 4.7% ABV brand aimed at satisfying hop-lovers on “97-degree Maryland days with 90% humidity.”  That was one of 2 yr-round brands launched in 2014, along with Bloodline Blood Orange Ale.  Don’t expect flow of new brands to end too: Jim’s been looking to bring in a new “maltier offering” to the yr-round portfolio, “kind of a cross between a Belgian dark and Belgian dubbel,” he told us.  He’s targeting a Jan 2015 launch of that brand, which will likely cause Flying Dog to take one of its hop-focused brands out of yr-round rotation to bring a bit more balance to the portfolio.

Flavor innovations largely come in the form of Flying Dog’s Brewhouse Rarities series, which the co recently announced will appear in 12oz bottles next yr, not draft-only.  It’s “expanding production slightly for that, “but keeping distribution of the specialty beers “tight geographically,” Jim said.  Focusing off-premise sales at liquor stores in Md and DC, the co prefers Brewhouse Rarities to be “in and out of the market in five to six weeks.”  

Local focus doesn’t just manifest itself in specialty brands for short time periods: work with local sports teams has led to big boosts for Flying Dog.  Camden Yards, where the Baltimore Orioles play, and Nationals Park in DC rose to be the brewery’s largest accounts.  Fewer football games will keep sales at the Raven’s M&T Bank Stadium from overtaking the baseball stadiums, but “in addition to having beer at the stadium,” Flying Dog has a “huge presence” for Ravens fans “from the moment you enter the grounds,” with a branded stage in the Flying Dog Underpass for tailgaters.  

Work with sports teams was another “big surprise” for Jim, as early on the brewery’s local partnerships often grew out of Flying Dog’s roots in the art of Ralph Steadman.  From movie-series at the Weinberg Center for the Arts in Frederick to programs at the Maryland Institute for the Arts and plenty of support for and events with individual local artists and artisans, Jim sees this work as “not cross marketing so much but tapping into audiences that like both.”  While “massively time consuming,” Flying Dog does “not do any kind of financial analysis” of the partnerships, but chooses those Jim and team believe they can execute well.  Local charities and nonprofits entered the mix, many of them with a culinary focus, like donating a portion of proceeds from Pearl Necklace Oyster Stout to the Oyster Recovery Partnership and a similar piece of Dead Rise sales to the True Blue program, benefitting sustainable harvesting of Maryland Blue Crab.  Of course, developing Dead Rise required much work with McCormick, itself a Baltimore-based co with 10K employees and somewhere around $4.5 bil in sales, Jim noted.  Flying Dog’s local focus shows no signs of waning either: lookout for another “project coming up in December,” Jim hinted, with another well-known Baltimore “family firm.”

With announcement that Brew Hub will build its 2d $20 mil brewery in Chesterfield, Mo in St Louis County, Brew Hub is off to the races.  Plan is developing “a lot quicker” than originally projected, ceo Tim Schoen told Craft Brew News.  The first brewery in Fla was sold out before it opened its doors. The list of potential clients for the 2d Chesterfield brewery is already “as long as your arm,” Tim said. And Brew Hub simultaneously is “actively in pursuit” of its 3d location in Northeast, said chief operating officer Jerry Mullane, which it expects to announce by year end.  Brew Hub is looking both at greenfield projects, existing facilities that could be converted to breweries and even potentially buying breweries that could be expanded to meet Brew Hub specs in its forthcoming projects.  

Brew Hub originally hoped to realize its vision of 5 breweries around US by 2020; but it now expects all 5 to be up and running by late 2018, early 2019, said Tim.  The Brew Hub concept of “partner brewing” has taken craft world somewhat by surprise, rapidly creating more demand than many anticipated or than Brew Hub can fullfill.   Its private equity owner Yucaipa Cos (investment vehicle of Ron Burkle) has already invested considerable capital without very much revenue coming in, yet Yucaipa still “very happy” with pace of development and “where we are on the execution curve,” said Jerry.  “The economics work,” assured Tim.  Brew Hub gets a higher fee than many to brew for “partners,” then there are all the other consulting services it sells.   The way it works contractually is “craft owners are locked in for at least three years and pay a negotiated rate per case for brewing,” and other “business services are provided at a flat annual fee,” noted Bloomberg.  By the time all 5 Brew Hub facilities open, Yucaipa will have invested over $100 mil.

Recall, Brew Hub just had grand opening of its first $20+ mil facility in Lakeland, Florida.  And Brew Hub partners there include Cigar City (providing instant craft cred) and another big customer in BJ Restaurants, plus several smaller players.  Finished product will first hit mkt next mo, several months later than anticipated.  By next spring, Brew Hub facility in Fla will expand to over 100,000 bbls at which point it will be able to add 2-3 more partners there.  Those brewers it works with in Fla are potential customers in Chesterfield and other Brew Hub facilities as well.

Why St. Lou?  Mainly because the Midwest represents the kind of underdeveloped craft opportunity that Brew Hub correctly identified in Fla. It doesn’t hurt that Tim lives there and is a 28 yr veteran of Anheuser Busch.   Brew Hub is not taking direct aim at AB in its backyard, but rather responding to a shift in consumer preferences that has heretofore been more pronounced elsewhere.  But one can’t help but remember that there are many other ex-AB execs who either founded, bought or run craft brewers in and around St. Lou, including the coo of St Louis Brewery, founder of Urbran Chestnut and other key investors, plus the owner of O’Fallon’s and more.  These would seem to be naturals as a potential client base.  In aggregate, they as well as other former AB execs in key roles at craft brewers nationwide, represent quite a talent pool that are collectively part of a movement that makes it more difficult for AB to grow.  Tim also referred to St Lou’s “exceptional” talent base, potentially referring to others orbiting  in AB universe.  Tim wouldn’t talk about who Brew Hub’s next brewing partners will be.  All he would say is that Brew Hub has talked to every major local and regional brewer.  “We have had meetings and are negotiating partnerships with some of the top craft breweries in the Midwest.”  This 2d brewery will start at 75,000 bbls capacity and is expected to come on line in 2016, ultimately expandable to 200,000 bbls. 

Homebrewer orgs can once again organize fundraising events that serve their wares in Calif thanks to a bill signed into law by Gov. Jerry Brown last week.  Recall, an amendment onto a bill passed last year specified that non-profits can serve homebrewed beer at events, but not orgs “that either promote” the hobby or “are primarily composed” of hobbyist brewers or wine makers.  The new reversal, which maintains homebrew events must have “an educational component,” paves the way for the American Homebrewers Assn to hold next yr’s National Homebrewers Conference in San Diego, as planned, along with the large Southern California Homebrewers Festival, the AHA announced.

Craft beer attracts all kinds these days, including massive MGM Resorts International in Vegas and small-time gentleman’s club group outside of Dayton, Oh.  Owner of 11 hotels on the Strip, MGM Resorts announced partnership with Oregon Beer Festival organizers for inaugural Blvd Brew Fest later this month, according to the Las Vegas Review-Journal.  Interestingly, the MGM event seems to be targeting Vegas visitors and is bringing in many brews from out of state rather than focusing on local offerings.  While some had hoped to see more local brands, the mere interest on the part of MGM to hold a craft-focused event indicated a changing landscape on the Strip, organizer of a pair of competing beer events in the city explained to the paper.  

MGM isn’t the only group bringing new focus to craft options: a small town outside of Dayton, Oh could be home to “America’s First Strip Club Brewpub,” as an odd Dayton City Paper reported last week.  Without venturing into other assessments of the biz, the owner’s explanation of why, when renovating an older club, he chose brewing and renaming Baby Dolls as Pinups and Pints caught our attention.  Scott Conrad, who owns Pinups and Pints and a handful of other area gentleman’s clubs, “hadn’t been an avid homebrewer.”  But “Baby Dolls didn’t have a liquor license, and to get a license through the regional agencies can be tough,” per Dayton City Paper.  “However, a brewer’s license in easier to obtain,” reportedly, and “allows them to not only brew and serve their own beer, but also to serve a full bar of guest beers, liquor and wine.”  So Conrad put in just a 15-gal system, adding that “if I’m going to have it, I might as well make it good.”  Some folks, like the City Paper reporter, visit more for the beer than the show, Conrad said.  If he says so.

We tracked almost 30 different breweries that expanded to new mkts in Aug.  Among new entries, Lagunitas snuck into Louisiana with Crescent Crown after it was originally announced that co wouldn’t enter La until Oct.  Shiner Beer entered rest of New England – Vt, NH, Me – and only have Hawaii to go before they’re in all 50 states.  Allagash expanded upstate NY distribution with L. Knife operations, Tri Valley and TJ Sheehan Dist.  New Holland Brewing continues to rapidly add territory, tacking on four new states in Aug: Colo with CR Goodman, Ia with Glazer’s, Kans with World Wide Wine & Spirits, and Neb with Quality Brands of Omaha and Double Eagle Dist. That marks 9 new states total so far in 2014.  Left Hand officially entered Ia with Johnson Brothers.  Next mo it’ll begin partnership with James Clay for UK distribution, and has hired first overseas sales rep to cover the new territory.  Two other cos that’ve been adding new mkts for last several mos were at it again too – DESTIHL Brewing partnered with Orcas Dist in Wash and Knee Deep Brewing partnered with Clare Rose in NY to fill out state.  And Utah’s Epic Brewing entered Tex with Keg 1 and Andrews Dist, and is expected to add Houston and San Antonio territories by end of yr.  See the complete list here.

September Preview Some big entries already slated for September.  Yuengling officially enters Ct in late Sep with draught, followed by package in early Oct.  Co partnered with Star, HDI and Levine.  SweetWater entering Ms with mix of MC and AB distribs – FEB Dist, Capital City Beverage, A&B Dist, Mitchell Dist – and Oh with Superior Beverage (and others to be announced soon).  Boulevard making its first new market entries since before Duvel deal – to northern NJ and Philly with Peerless Bev and Muller Inc.  Troegs Brewing will enter NC tho has yet to announce distrib partners.  Deschutes originally planned Mich entry in Sep, but recently announced it will push back to Oct entry with West Side Dist. 

Ostensibly nonpartisan non-profit Generation Opportunity (GenOpp) came to its Free the Brews campaign of events (see Aug 22 issue) after “a really intense analysis” of what millennials follow on Twitter.  At least that’s what the org’s prexy Evan Feinberg reportedly told crowd at a June retreat organized by conservative billionaires David and Charles H. Koch, according to leaked audio posted by The Undercurrent this week.  The retreat brought together donors and recipients of the Koch brothers’ fundraising, listening to presentations and panels covering federal and state-level political strategy.  The college-focused, Ayn Rand-inspired magazine The Undercurrent posted a handful of recordings it claims to be from the retreat to YouTube this week.  One captures GenOpp’s Feinberg explaining how and why beer became a focus for his org during a panel with leaders of similarly-funded orgs focused on outreach to women and Latino Americans, picked up by Salon.  

“I have a big surprise for everyone here: Young people like beer,” the tape of Feinberg begins.  Early on GenOpp asked itself questions like “What do young people care about?  How do they form their communities online?”  They answered them by doing “a really intense analysis of their Twitter streams,” Feinberg said.  The group “found out that craft breweries and craft beer were actually the largest cultural segment in North Carolina.  So we set about to talk about craft breweries because it’s what they care about, so we care about it.”  He continued by noting that the beer industry is “marked by tons of government regulations, tons of cronyism where businesses are trying to keep the little guy down.”  A Free the Brews event in Asheville, NC attracted “over 500 people that we were able to impact.”  He referred to his op-ed, printed by “a number of papers that was very well received,” not mentioning industry pushback in NC and other states.  

Key for Feinberg and his audience, GenOpp has “been able to get tons of these young Americans interested in the ideas freedom, not because we came through with a really great way to talk about marginal tax rates, but because we were able to talk about freedom and regulation about something that they care about.”  Namely: beer.  The rest of the panel described how LIBRE Initiative is doing similar work – sometimes collecting info under the same beer fest tents as GenOpp, we’d add – targeting Latino Americans just as Americans for Prosperity reaches out to women.  Echoing Feinberg, an important goal for each organization is “to demonstrate our good will” and “show that we care,” as LIBRE Initiative spokesperson Rachel Campos-Duffy explained.  No surprise that this trifecta of voting blocs is a key focus for these orgs, presenting during the “Advance in the States” segment of a larger session on “The Foundation of Progress,” per The Undercurrent and a report in The Nation printed directly after the retreat.

Over the weekend, Stone Brewing closed its month and a half long campaign on IndieGoGo, earning over $2.5 mil.  Fans and distribs alike could pay for exclusive Groundbreaking Collaborations in 1.5L bottles, mostly at $30 a pop, with cases of 12 at $300.  Folks spent less than $50K on combo of exclusive Berlin glassware/t-shirts and invitation to “pre-opening party” in Germany, as Stone focused campaign on the collaboration beers and pulled less serious perks from list of offerings early on.  But later in campaign, it created so-called “Distributors Pack” for wholesalers (or fans) looking to save some clicks while dropping $3000 on 10-cases of collabs.  Over 250 of those packs got picked up before the campaign closed Saturday.  All in, factoring out merch and party invites, looks like Stone getting just under $2.5 mil for almost 83K large format bottles or just over 1000 bbls.

Another round of fall seasonals on the shelves so naturally another round of debate about early August entries of Pumpkin and Oktoberfest brews, this time sparked by BWC Company’s Bump Williams in his Aug monthly update.  This has been goin’ on for last several yrs, but perhaps that puts further perspective to an “unusual amount of Pumpkin/Oktoberfest…on display and draught already” spotted by Bump this time around.  Bump’s seeing lotsa customers “feeling pushed into drinking these styles before summer is truly over,” and “some retailers purposely refusing to sell Pumpkin/Oktoberfest in August when they were initially launched….another example of where perhaps the needs of the retailer and beer drinker are not aligned with the needs of the brewers.”  Key question posed by Bump: “When did the needs of the brewer outweigh the needs of the Consumer?”