Article on brewery expansions - or not

http://www.cnbc.com/id/47030325/

Brewery expansion is a very tough issue. I'm speaking from a perspective of a past small-brewery owner (founder, Nimbus Brewing, Tucson) and as a friend of several other brewery owners.

One of my friends, Greg Koch, owner of Stone Brewing, pretty much pursued aggressive growth. He was the marketing guru for the company, and recognized how critical a sales presence is. When you expand rapidly, you can't just put your beer on trucks and send it out, you need to support it. That means working with each and every new distributor and making sure they know all about your product. And often it means giving them incentives to sell it. Many states don't allow any direct cash to distributors or to their sales reps, but you can give things like vacation incentives to them, and other contests. Tons of tricks and ways. But you must have a bunch of people who are working with each and every distributor when you expand. That means you need a big sales force. That means you need a bunch of money for salary.

A great product, or even a great logo, only goes so far.

Fritz Maytag, founder of Anchor Brewing, strongly advised me against over expansion (I've had the pleasure of hanging with him a little bit in San Francisco). He avoided over expansion by keeping his product prices very high, compared to competitors. So he enjoyed sustained slow growth. He may have been a bit over-cautious, in my opinion, but it worked for him.

My good friend from college, Lawrence Miller, former owner of Otter Creek Brewing in Middlebury (where I did a little "training/internship"), expanded pretty rapidly in his region (New England) but was careful to expand gradually. After hitting about five or eight states (I dunno), he decided to sell his brewery.

Other friends of mine, at Widmer, for example, enjoyed great growth, sold a large stake to Anheuser- Busch, thus raking in some good bucks, stayed out of the biz for awhile, and have now returned to brewmaster roles.

There are many ways to do it. But if you expand, you need to support your product. That is they key. Over expansion will lead to old beer on the shelves, which can kill your name.

Personally, I got statewide distribution, then parted ways with my partners, and went back to academia. Teaching a couple classes a day is a much easier life than running a brewing enterprise! Especially with a family to raise.

Cheers

Personally, I got statewide distribution, then parted ways with my partners, and went back to academia. Teaching a couple classes a day is a much easier life than running a brewing enterprise! Especially with a family to raise. Cheers

Facinating post! If you ever need someone to buy you a beer just let me know. I'm sure every beer lover on this forum would love to hear you speak. We couldn't lure you to a local brew pub for an afternoon or evening could we?
Cheers!

Personally, I got statewide distribution, then parted ways with my partners, and went back to academia. Teaching a couple classes a day is a much easier life than running a brewing enterprise! Especially with a family to raise. Cheers

Facinating post! If you ever need someone to buy you a beer just let me know. I'm sure every beer lover on this forum would love to hear you speak. We couldn't lure you to a local brew pub for an afternoon or evening could we?
Cheers!

Fascinating post, indeed, Shane! I feel like a broken record because I've said it on the forum before, but considering the conversations you and I have had, Shane, and knowing that you probably haven't read my past posts about Nimbus but are aware of the fact that my brother-in-law works for Sun King, I have tell you this: Nimbus is from Southern Indiana but his brewing company was in Tucson, where my siblings discovered his warehouse-style operation (I had a few pints there on a visit!) while they were living there in the late nineties/early 2000's. They made a nest there playing Euchre on weeknights, and my BIL (who is also from The Knobs) ended up working for him until they moved home. If you don't already know, Nimbus came back East soon after, opened Ray's next to Cumberland on Bardstown Road, and ran for Mayor. Nimbus pint glasses are prevalent in three of my family households.

I just can't help myself when I have the urge to draw a line around my small world.

Fascinating post, indeed, Shane! I feel like a broken record because I've said it on the forum before, but considering the conversations you and I have had, Shane, and knowing that you probably haven't read my past posts about Nimbus but are aware of the fact that my brother-in-law works for Sun King, I have tell you this: Nimbus is from Southern Indiana but his brewing company was in Tucson, where my siblings discovered his warehouse-style operation (I had a few pints there on a visit!) while they were living there in the late nineties/early 2000's. They made a nest there playing Euchre on weeknights, and my BIL (who is also from The Knobs) ended up working for him until they moved home. If you don't already know, Nimbus came back East soon after, opened Ray's next to Cumberland on Bardstown Road, and ran for Mayor. Nimbus pint glasses are prevalent in three of my family households.

I just can't help myself when I have the urge to draw a line around my small world.

I met Nimbus in his brewery in November 2000 and have the pint glass too. We were set to enjoy a vagrants Thanksgiving feast with Jackie's Tucson family until my long lost brother showed up to take us to dinner. Weird trip, that one.

Who did you go with? Jeff? My favorite Matt and Jeff story is when they broke into the world series dressed up in waiter costumes. (sorry for the off-topic diversion)

If you don't already know

Thanks for the background Jax! Having lived away from here for so long I hardly know anything about the amazing people who make up this community. You seem to know them all.

It's quite astounding that you met Nimbus so long ago and so far away. I spent a week in Tucson in 98 but it was all business. I traveled a lot in those days and got to experience very little. I'm trying to make up for it now.

Making friends with people like you and getting to find out about people like Nimbus is a constant pleasure. I was worried when I moved back here that I would be bored with the country folk from whom I came. Little did I know I would still the small fish!

I understand Nimbus may not be tempted by my earlier offer but it would still be a pleasure to meet him so I will watch to see if he attends an off site. Any Mayoral candidate who would advertise on a pint glass would get serious consideration from me. Thanks again Jax and cheers all!

Who did you go with? Jeff? My favorite Matt and Jeff story is when they broke into the world series dressed up in waiter costumes. (sorry for the off-topic diversion)

I was with Becky on our last childless vacation. Of course she was almost seven months pregnant, so not really childless.

If you don't already know

Thanks for the background Jax! Having lived away from here for so long I hardly know anything about the amazing people who make up this community. You seem to know them all.

It's quite astounding that you met Nimbus so long ago and so far away. I spent a week in Tucson in 98 but it was all business. I traveled a lot in those days and got to experience very little. I'm trying to make up for it now.

Making friends with people like you and getting to find out about people like Nimbus is a constant pleasure. I was worried when I moved back here that I would be bored with the country folk from whom I came. Little did I know I would still the small fish!

I understand Nimbus may not be tempted by my earlier offer but it would still be a pleasure to meet him so I will watch to see if he attends an off site. Any Mayoral candidate who would advertise on a pint glass would get serious consideration from me. Thanks again Jax and cheers all!

There is another brewer of note living in your fair town, Pekin. He retired from Kimball to brew for Tucker Brewing in Pekin and eventually worked for me for a couple years at BBC St. Matt.

There is another brewer of note living in your fair town, Pekin. He retired from Kimball to brew for Tucker Brewing in Pekin and eventually worked for me for a couple years at BBC St. Matt.

Ok, now you're just showing off David! I remember driving past Tucker Brewing a few times on my way to Salem while I was in on leave. It was gone before I moved back here I think. Any chance you meant to reveal the name of this august person? I would like to meet him as well. Thanks David!

There is another brewer of note living in your fair town, Pekin. He retired from Kimball to brew for Tucker Brewing in Pekin and eventually worked for me for a couple years at BBC St. Matt.

Ok, now you're just showing off David! I remember driving past Tucker Brewing a few times on my way to Salem while I was in on leave. It was gone before I moved back here I think. Any chance you meant to reveal the name of this august person? I would like to meet him as well. Thanks David!

More importantly, where is the Tucker Brewery now grasshopper?

More importantly, where is the Tucker Brewery now grasshopper?

Looks like they moved to Sellersburg before finally selling their equipment to something called NABC. Now unless you want this NABC to suffer a significant loss in revenue when I get really mad and stop drinking their beer for a week or three just to make a point you really need to tell me who this person is oh Brewmaster!

I'm warning you, I'll do it. Right after all that delicious hand pull bitter is gone. I really will!

I work with two people who came from breweriers, Full Sail in Oregon and Goose Island. The local/global caramel company, DD Williamson has a person or two from that big place in St. Louis after they were sold.
With the local home brewers organizations, too, I expect there could be quite a festival or two here. We don't do any competitions here, do we? Only the state fair? Would one get lost during Derby or take off because of Derby? I know there are tastings. I think Buckheads is having one soon - this weekend.

More importantly, where is the Tucker Brewery now grasshopper?

Looks like they moved to Sellersburg before finally selling their equipment to something called NABC. Now unless you want this NABC to suffer a significant loss in revenue when I get really mad and stop drinking their beer for a week or three just to make a point you really need to tell me who this person is oh Brewmaster!

I'm warning you, I'll do it. Right after all that delicious hand pull bitter is gone. I really will!

You are pretty good with the googles sir. Don Russell.

You are pretty good with the googles sir. Don Russell.

Gratzi, now you know both of my talents. I shall have to ask around and see if we have any mutual acquaintances (local) that might arrange an intro.

My other talent? I'm pretty good at drinkin beer.

Cheers David!