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OzarkModerator
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Re: What's in the Fridge? [Re: HAUS]
      #215144 - 03/20/11 09:47 PM

Quote:

HAUS said:
fat checks.




Having been involved in two microbreweries and three brewpubs, all I can say is .......



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HAUS
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Re: What's in the Fridge? [Re: Ozark]
      #215156 - 03/21/11 07:19 AM

really?? they don't make money??


how long ago was this?

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OzarkModerator
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Re: What's in the Fridge? [Re: HAUS]
      #215161 - 03/21/11 09:06 AM

Brewing beer for money is a hard, hard way to make a living. 4 out of 5 brewpubs go broke real quick. The rest are doing good if they can operate at a 5% net profit. When they're combined with a restaurant, there's more money in the food than in the beer. It's not the ingredients, though they've got 'way expensive too - but overhead just kills ya.

Microbrewery costs are much higher - it's real expensive to bottle, package, and distribute beer, and the taxes are ridiculous.

When it's a big company that's willing to lose money to demonstrate their brewing equipment, like Mueller, then they can stay in business. It's kind of like the California gold rush - very few miners made any money but the guys who sold shovels did.

When a rare micro gets real big, like Boston Brewing Co. (Sam Adams) - then economics of scale kick in and they're making tons of money. My former partner is working for a company with restaurant/brewpubs in 19 states. The economic downturn has hit them hard, but they're going to survive.

Very few brewers grow large enough to be profitable. Trying to make money making beer is a tough way to go, and that's the truth.


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HAUS
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Re: What's in the Fridge? [Re: Ozark]
      #215170 - 03/21/11 12:02 PM

so when were you involved with these 2 micros and 3 brew pubs?

I am aware of your connections with Bj's, and the outfit that was in a garage in springtown, but where were the others and at what time?

i'm guessing the micros were bottling only since the can revolution has just begun. I really could care less of brew pubs. I like brewing beer, not cooking food.

did these micros fail? how many bbls were they producing at a time?

i agree, overhead CAN kill you, but even if you have an unlimited supply of cash, if you're brewing piss... you're still not going to make a profit.
Likewise, if you are smart, start small and brew great beer, I think you can survive.

Quote:

http://www.brewersassociation.org/pages/community/ba-blog/show?title=u-s-brewery-count-passes-1700

U.S. Brewery Count Passes 1700
The count is at 1,701 operating breweries in the U.S. There are 9 percent more breweries in the U.S. than a year ago. As I blow the dust off the historical records, it appears that there were 1,751 breweries in 1900 and 1,498 in 1910. So we have more breweries than we have since around 1905. My resource for these data points is The Register of United States Breweries 1876-1976 (compilers Friedrich and Bull). There certainly are a lot more diverse brewing styles being offered today, particularly by craft brewers, and I'm betting quality is far greater now than then.

At the end of March during the general session of the Craft Brewers Conference, I will present the number of breweries that operated for some or all of 2010, which will be a higher number than the current count, as it will include breweries that closed in 2010. Another interesting number will be the breweries opening count.

Paul Gatza







Quote:

Overall beer market down for third year in a row

While the craft beer industry has been, well, hopping along quite well thank you, the overall beer market has been, excuse the pun again; in the tank.

Last year marked the third consecutive year of diminishing growth rates in the beer industry, dropping 2.1 percent. According to the Beverage Information Group's recently released 2010 Beer Handbook, the beer industry's downturn can be directly attributed to the decline in the light beer segment. Light beer, which accounts for a 52.8 percent share of the U.S. beer market, posted its first negative year since its beginning 30 years ago.

Other segments of the beer industry differed in their 2009 results. Imports declined 6.9 percent, while the craft beer segment increased 7 percent.





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HAUS
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Re: What's in the Fridge? [Re: HAUS]
      #215174 - 03/21/11 01:08 PM

nice video from Stone Brewing for the retail folks...

http://sellingcraftbeer.com/

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OzarkModerator
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Re: What's in the Fridge? [Re: HAUS]
      #215175 - 03/21/11 02:54 PM

Quote:

HAUS said:
so when were you involved with these 2 micros and 3 brew pubs?

I am aware of your connections with Bj's, and the outfit that was in a garage in springtown, but where were the others and at what time?




What - I gotta give you references? Are you collecting names of breweries that no longer exist? I'm not applying for a job, you know.

If you don't want to believe me, then don't. Fact remains, brewing beer is a tough way to make a living and the business failure rate is very high.

I never had anything to do with BJ's. That's where John Oliver, our former general manager, works.

Everything I did with brewing was between 1984 and November, 1999 when we sold our homebrew supply business. So OK, maybe it's got easier to make a buck making beer since then. Friends who are still in the business tell me it's even tougher now, though.

OK, the country has 1700 breweries now, just like a hundred years ago. At the start of the 20th century, though, all those little breweries had a big market share in their own local regions and they were all selling a fair amount of beer. Now, 4 or 5 giant corporations have 90% of the national beer market, and the other 1695 brewers are competing for the other 10%. Quite a difference.

I've never owned any part of a commercial brewing operation, though people have certainly tried to sell me some. My involvement was in helping friends who bit on the hooks I wouldn't bite - finding equipment and ingredients, and helping out by putting on rubber boots and shoveling piles of malted barley, running filtration equipment, stuff like that. In the course of that I got pretty familiar with the financial end of brewing - watching those businesses go broke and trying to keep it from happening.

Hey, maybe it's my "help" that made 'em all go t!ts up. It sounds like you've got plans in the wonderful world of commercial brewing. If you do it, better stay away from me - I'm a curse.


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HAUS
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Re: What's in the Fridge? [Re: Ozark]
      #215176 - 03/21/11 03:11 PM

hey you can get defensive if you want. i'm just asking questions and trying to learn all i can.

when someone takes as negative a stance as you do on something, i like hearing the details of why.

sorry if you think i'm calling you out. maybe i am, but as rigid as you were on your stance, i wanted to know why. maybe the owners were great business people and they brewed sh*t for beer. maybe the owners brewed great beer, but didn't know how to run a business. maybe the owners bought $300k worth of equipment and set it up in a town of 1000 people...????

you've got great opinions and you've earned them. i guess in the end if you want to get defensive, you're welcome to it...

i'll just know now & in the future to not ask the tough questions.

thanks for your help in the past years. you were one of few that actually helped me advance my love of brewing...

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OzarkModerator
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Re: What's in the Fridge? [Re: HAUS]
      #215177 - 03/21/11 03:24 PM

Hey, I'm not defensive - I'm a mean old man. If I offend you, just tell me to go f___ myself. That usually works.

While you were typing, I added this paragraph at the bottom to my post above. It explains a lot of why the brewpub and microbrewery businesses are so difficult. Not impossible, just very difficult.

And you're right. I was really involved in the first micro/brewpub boom in CA in the late 80's - and the outfits with the snazziest names, the prettiest logos, and the worst beer went broke first. A few outfits actually survived and are still operating today.

"OK, the country has 1700 breweries now, just like a hundred years ago. At the start of the 20th century, though, all those little breweries had a big market share in their own local regions and they were all selling a fair amount of beer. Now, 4 or 5 giant corporations have 90% of the national beer market, and the other 1695 brewers are competing for the other 10%. Quite a difference."


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HAUS
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Re: What's in the Fridge? [Re: Ozark]
      #215179 - 03/21/11 03:48 PM

you didn't offend me & i don't think you could.

all is well as it always has been.

sorry if i got your BP up.




edit: damn, you're a post editing machine.

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Edited by HAUS (03/21/11 03:50 PM)


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Paul Dallas
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Re: What's in the Fridge? [Re: HAUS]
      #215183 - 03/21/11 04:31 PM

I think the way to get into it would be to buy a micro-brew pub on its 2nd or 3rd failure. The first owner is paying the premium on all the startup costs and has all the headwinds. The 2nd owner buys the operation at a reduced price, and by the 3rd failure, you probably got yourself a bargain. Bottling and packaging your stuff for mass retail is a whole nother can of worms. Cost to ante up is for multi-multi-millionaires and even that doesn't guarantee success. Got have a good product, make it consistently well, and deal with fickle customer tastes and try to differentiate among a sea of other competitors.

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OzarkModerator
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Re: What's in the Fridge? [Re: Paul Dallas]
      #215186 - 03/21/11 05:28 PM

Quote:

Paul Dallas said:
Bottling and packaging your stuff for mass retail is a whole nother can of worms. Cost to ante up is for multi-multi-millionaires and even that doesn't guarantee success. Got have a good product, make it consistently well, and deal with fickle customer tastes and try to differentiate among a sea of other competitors.




AND, you've got to convince a Coors, Bud, or Miller distributor to distribute your beer - and that ain't easy.

They're going to want you to show a certain (very large) volume of sales, and how can you develop volume without getting your beer distributed first? Then - the distributor and the stores have "planograms" of the beer displays, with every inch taken and careful consideration given to what brand goes next to what. Does your brew "compete" with an existing one? Uh-oh, not interested.

If you can pass those hurdles, the retailers and the distributors are gonna demand more profit than what the brewer makes - it's real easy to brew for nothing or at a loss.

I haven't even got into the alcohol tax structure yet - in which the ABC man often has keys to padlocks that lock the brewmaster out of his own fermenters. You want to see how your brew is doing and test it? Wait until Thursday when the tax guy is supposed to come by.

I know of one deal where a brewpub changed ownership, and the brewmaster (who continued working for the new owner) had 15 barrels of real good pale ale in holding tanks. The guv'ment made him pour it out, 'cause the new owner couldn't sell beer that had been made (and taxed) under the old owner's license. THEN the city slapped the new owner with a big fine for putting the brew down the sewer system. The delights are endless.

Just sayin'.


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griffinAdministrator
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Re: What's in the Fridge? [Re: Ozark]
      #215188 - 03/21/11 07:29 PM

Look dammit.....stop arguing about the merits of opening a brew pub and get to opening one with some good beer. It' s a win/win for me....you make some good beer for me to drink, and I get paid off the dumb chit people do after they're drunk!! I don't give a rats ass which survive and which don't.

By all means.....MORE BEER JOINTS!!!!!!

griffin

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HAUS
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Re: What's in the Fridge? [Re: griffin]
      #215200 - 03/22/11 07:50 AM

Quote:

AND, you've got to convince a Coors, Bud, or Miller distributor to distribute your beer - and that ain't easy.





There are ways around this even in a 3 tier state like MO. I don't feel like typing a book this morning, but it involves wine and like Ozark said, it ain't easy, but it's easier than convincing one of the big 3 to haul yer product for you

Sorry to get this off track. I'll talk to Sam offline in the future or in person that way if I aggravate him, he can throw a lure or something at me...


I've got a 6pk of New Belgium 1554
Latitude IPA
Schlafly APA
1 bottle of Left Hand Smoked Porter
2 kegs of homebrewed foo-foo beer in a Honey Blonde and Pumpkin Ale
And 2 kegs of homebrewed man beer... Milk Stout and Smoked Porter.

Cheers m fers....



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sptsman
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Re: What's in the Fridge? [Re: HAUS]
      #215207 - 03/22/11 09:10 AM

You beer snobs would have proud of me. I spent three days in Dallas last week for a trade show / conference. In keeping with Lent, I drank nothing but Shiner Bock the whole time (learned it used to be just a lenten beer). It was free the first night and went down waaaaay too smooth. Second night I had to figure it was good enough last night, should be just as good tonight. It was. It got a little lumpy on me the third night but I suspect it had a lot more to do with the quantities from the first two nights...

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HAUS
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Re: What's in the Fridge? [Re: sptsman]
      #215216 - 03/22/11 11:56 AM

i'm proud of the fact that you actually drank some decent beer and didn't get yer ass whipped that far from home. you must not talk as much in person as you do on here...



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HAUS
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Re: What's in the Fridge? [Re: HAUS]
      #215217 - 03/22/11 12:00 PM

oh yeah.. new brewery alert... This one in Springfield. Mother's Brewing is trying to open near the end of April. They are a production brewery located at 210 S Grant, I believe.

I've spoken with owner Jeff Schrag thru e-mail and he sounds like a nice dude.

I hope they can put out some great brew. This area needs more of it locally.



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OzarkModerator
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Re: What's in the Fridge? [Re: HAUS]
      #215221 - 03/22/11 02:22 PM

Quote:

HAUS said:
Mother's Brewing is trying to open near the end of April. They are a production brewery located at 210 S Grant, I believe. I hope they can put out some great brew. This area needs more of it locally.




Yes it does. I'm not sure what you mean by production brewery.

Is it gonna be a brewpub with beer on premises only, or are they (hopefully) gonna can/bottle something? When it comes to local bottled beers, I can't get excited about anything Mueller is putting out.


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HAUS
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Re: What's in the Fridge? [Re: Ozark]
      #215222 - 03/22/11 02:26 PM

no grub, just bottles i believe with a tasting room and a chance to fill growlers.

said he was setting up shop in an old bread factory..

i agree, mueller beer is subpar overall, but man they got pretty equipment..

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Paul Dallas
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Re: What's in the Fridge? [Re: HAUS]
      #217201 - 04/30/11 07:16 PM

1/6th barrel of Schlafly APA. Almost went for the 1/2 barrel of Lagunitas but the candy store was a little too proud of it.

Got a bomber of Stone Sublimely Self-Righteous Ale that Ima fixin to crack. Its some kind've black, double-IPA. The bottle has a scary picture of Lucifer with wings and a tail, and the 8.7% has me a little worried.


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Paul Dallas
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Re: What's in the Fridge? [Re: Paul Dallas]
      #217322 - 05/03/11 07:20 AM

Had the Stone Sublimely Self-Righteous Ale last night. Loved every drop. Best new beer I've had in a long time. Pours an evil black, and big hops hit hard, not much malt body in the center, instead is a warm dome of alcohol cloaked in roasted malt that carries all the hops and never hides them, just smoothes their edges out to keep the choir all singing in unison.

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Re: What's in the Fridge? [Re: Paul Dallas]
      #217336 - 05/03/11 09:16 AM



Yeah, what he said!!

griffin

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Bubba
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Re: What's in the Fridge? [Re: Paul Dallas]
      #217338 - 05/03/11 10:01 AM

Quote:

Paul Dallas said:
Had the Stone Sublimely Self-Righteous Ale last night. Loved every drop. Best new beer I've had in a long time. Pours an evil black, and big hops hit hard, not much malt body in the center, instead is a warm dome of alcohol cloaked in roasted malt that carries all the hops and never hides them, just smoothes their edges out to keep the choir all singing in unison.




Once again , I find myself strangely aroused...

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Paul Dallas
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Re: What's in the Fridge? [Re: Bubba]
      #217341 - 05/03/11 10:10 AM

Feeling drowsy now . . . must find old couch to lie down on.

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Re: What's in the Fridge? [Re: Paul Dallas]
      #217343 - 05/03/11 10:29 AM

Bought a sixer of Langunitas Maximus last night. Not bad at all... Not as good as Big Sky, but I rather enjoyed the 8.25%... Anybody tried the Bigfoot Ale? Said it was made in the Barleywine? tradition?

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HAUS
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Re: What's in the Fridge? [Re: Jayhawk]
      #217348 - 05/03/11 11:21 AM

yeah, i've had the bigfoot barleywine and after reading your posts.... i'd suggest you stick with natty light.

bigfoot might make you soil your skirt...




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