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From Chaseburg, you can take Highway 35 south or choose
any one of the winding back roads through the hollows and ridges
of the Driftless Area down to Potosi, and the Potosi Brewery. Founded
in 1852, the Potosi Brewery was a strong regional beer-maker, staying
in business until 1972. In 1999, the building was purchased by a
group of concerned citizens who wanted to save it. Before renovation
began, the Grant County site was listed as one of the 10 most endangered
historic landmarks in Wisconsin. The non-profit
Potosi Brewery Foundation (www.potosibrewery.com) is completing
a multimillion-dollar revival of the property. With more than 7,000
square feet of museum space, the site will be the home of the national
museum of the American Breweriana Association, a group dedicated
to preserving the history of American breweries. In
addition, the site will have an interpretive center for the Great
River Road; a Potosi Brewery Transportation Museum; and a microbrewery
and restaurant, complete with gift shop. The brewery
plans to bring back some of the old Potosi recipes, using water
still flowing from the original spring and running underneath the
building. (The spring is visible through a panel in the floor of
the restaurant.) Also intact on the site is a 75-foot cooling cave
that houses old brewing artifacts. Although the
entire operation is not scheduled to open until June, portions of
the museum will be open to the public at the end of this month.
The brewery-museum project is already generating
economic development in the area, including a new community center,
specialty shops and, possibly in the future, a new hotel. With
30,000 to 50,000 visitors expected per year, the community hopes
the influx of people and dollars will fuel new growth. (c) 2008 Gary Porter, Milwaukee Journal-Sentinel BEER, SWEET BEER Barley is in short supply because of the government subsidized fairy tale of ethanol as a sustainable fuel. So farmers are planting less food crops and more corn to turn into this inefficient fuel alternative. Meanwhile, farmers who fed corn to their livestock are now looking for other sources of feed, including barley. So, a truckload of barley we paid $10,000 for in December is now $18,000. Not a pretty picture. So what does this mean to you? Well, you're going to have
to start paying more for beer. Our beer and pretty much everyone
else's. We just took a small price increase that nowhere near covers
our out-of-control costs.
LOUIS GLUNZ
120TH BELL’S
ADDS FOUR TO SALES TEAM The Michigan-based craft brewer is building on its momentum, bolstering its sales team with four key hires as it continues to expand into new markets around the country, including Florida. The company now distributes its beer in 13 states. Marten Compton has been appointed Sales Manager for the entire Bell’s team, bringing more than 24 years of industry experience in sales, marketing, management and consulting to the brewery. Most recently, he was with Alaska Distributors in Anchorage. Previously, he has held positions in Washington, D.C., with International Distributors, and in Seattle, Washington, with Redhook Ale Brewery and G. Raden & Sons. Compton was also a founder of Broadview Beverage Consulting, holds certifications from several Coors training and management schools, and is certified by the AHA (American Homebrewers Association) as a Beer Judge. “Marty is the seasoned professional we were seeking to help us both expand further and manage our growth effectively,” said President Larry Bell. “Not only does he have great sales experience but he understands that maintaining the high quality and the unique character of our beer remains the first priority.” Paul Moebius joins as the new sales representative for Wisconsin and Iowa. Most recently, he was sales manager for Capital Brewery Company in Middleton, Wisconsin. His eight years of experience includes positions with several industry leaders in the Badger state, including Beer Capitol Distributing, Lakefront Brewery and General Beverage Company. To continue the brand’s growth in two of its newest markets, Cynthia Curtis comes aboard as a sales representative covering Florida and southern Alabama. Most recently, Curtis served as a sales representative with Southern Wine & Spirits in Tampa, Florida. She adds nearly 15 years of management and sales experience to the Bell’s team, including time spent in Grand Rapids, Michigan, as a district manager and sales representative for Kent Beverage Company — a Bell’s distributor — and as the general manager of Pietro’s Trattoria. Derek Zomonski joins Bell’s as the sales representative for Pennsylvania, North Carolina and Virginia, three markets where the brand is experiencing rapid growth. Before this appointment, Zomonski spent the past seven years, as a sales representative with Premium Beverage Supply of Columbus, Ohio. His resume also includes positions as a brewer at Main Street Brewery, a brew master at Thirsty Dog Brewing Company and a manager at Jungle Jim’s International Market, “With these hires, we are well-positioned to grow in new areas of the country and continue to gain fans of our beer in established markets,” added Bell. “Despite rising commodity prices and other challenges facing our industry, we’re very bullish as we head into 2008.” For more information about Bell’s Brewery and its
brands, visit www.bellsbeer.com. Phil Leinhart Brewery Ommegang Brewmaster (Cooperstown, New York) Randy Thiel, Ommegang Brewmaster since 1997, is heading home to his native Midwest. In February, 2008, he will become Director of Quality Control at the New Glarus Brewing Company of New Glarus, Wisconsin. New Glarus Brewing is a 100,000 barrel capacity brewery well-known for brewing a wide range of world-class, handcrafted beers that are distributed exclusively in Wisconsin. Back in Cooperstown, Phil Leinhart will add the title and duties of Ommegang Brewmaster to his current responsibilities as Ommegang Director of Production. Randy has led Ommegang as Brewmaster since the initial brewing of Ommegang Abbey Ale Dubbel in 1997. Since then he has overseen the development of all things Ommegang, particularly the brewery’s renowned line of Belgian-style ales. During his tenure the Ommegang portfolio has grown to include Hennepin Farmhouse Saison, Rare Vos Amber, Three Philosophers Quadruple, Witte Wheat, Ommegeddon Funkhouse, and Ommegang Chocolate Indulgence Stout, along with other seasonals and special limited-production beers. Ommegang beers have garnered awards around the globe, including a recent gold medal for Hennepin in the prestigious 2007 European Beer Star Competition. Randy’s skills have been essential to the ongoing recognition of Ommegang ales and he has also been personally honored by the best of the international brewing world. In 2004, he became the first-ever American brewer inducted into the Knighthood of Brewers Mashstaff, by the Belgian Brewers Guild in Brussels, Belgium. Randy’s co-workers and friends, in New York and around the world, wish him all the best in his new endeavors and raise a toast to him: “Proost, Sir Randy!” The Ommegang mashstaff will be passed on: Phil Leinhart, Ommegang Director of Production since January 2007, will take on the office and responsibilities of Ommegang Brewmaster. Phil has been in the brewing industry for over twenty years, and has worked in and studied brewing in England and Germany, as well as in the US. He has practiced his craft in breweries ranging from brewpubs to craft breweries to – most recently – Anheuser-Busch in Newark, New Jersey. Phil arrived at Ommegang in January 2007 to help increase brewing capacity and to manage installation of new packaging and brew house equipment. Since then he has overseen 2007’s record-breaking brewing production at Ommegang. Phil says he is “pleased and honored to assume the Brewmaster responsibilities as Randy relinquishes the mashstaff,” while Randy wants to assure every Ommegang devotee that he “is leaving Ommegang in fantastically capable hands – hands that will help Ommegang imagine and produce even more fine Belgian-style ales.” For more information on Phil Leinhart and Brewery Ommegang, contact Larry Bennett at 607-544-1802. For more information on Randy Thiel and New Glarus Brewing, contact Deborah Carey, New Glarus Brewing at 608-527-5850. Brewery Ommegang opened in 1997 as a craft brewery dedicated to making fine Belgian-style ales. It currently brews five ales all year-round as well as seasonals. The beers are distributed in forty-five states and have won wide following by connoisseurs of fine beer. The brewery is located on a 136-acre farmstead on the banks of the Susquehanna River in Cooperstown, NY. For further information contact info@ommegang.com, call 1-800-544-1809, or visit www.ommegang.com. UK
Whisky Consultation The rules have been set out by the UK Department for Environment, Food and Rural Affairs (DEFRA) following the adoption last month of new laws regarding production and labelling of spirits by the European parliament. According to the European Commission, the new regulations will safeguard the reputation of the bloc's spirit brands by taking into account both traditional production methods, and technological innovations where there is a link to improvements in quality. Interested parties have therefore until 25 March 2008 to submit their views on how Defra's new production rules for whisky will impact on their operations, a deadline which cannot come soon enough for trade body, the Scotch Whisky Association (SWA). SWA spokesperson David Williams told BeverageDaily.com that he believed the proposed amendments were "fundamental" to protecting both the quality and reputation of Scotch amidst increasing global demand for the product. "It is an exciting time for Scotch producers, particularly in markets like the US, India and Russia on the back of considerable investment by the industry in warehousing and distilling," he said. "We are glad the industries campaign for greater protection is recognized and hope the measures will be implemented as soon as possible." Defra's proposals, in their current form, will tighten labelling requirements on whisky, both in terms of geographic and cask origin, in a bid to build better consumer understanding of what exactly constitutes Scotch whisky. "Passing the regulations would offer producers a robust legal framework to prevent unfair competition by supplying consumers worldwide with vital information about the product and where it came from." With Scotch whisky increasingly being sought after, the changes could prove another important step in boosting profitability for producers. Williams added that although 2007 export figures were not available, the SWA was anticipating further growth on the back of record global sales for the product during the previous year. In 2006, Scotch whisky exports rose four per cent in value over the previous year to £2.5bn according to the SWA. The rise beat the previous annual sales record of £2.4bn in 1997, reflecting healthy optimism in the market. The amendments, announced earlier this year, will require Scotch whisky to be classified under one of fivedefinitions, which must be used on labelling. These definitions will be: Single Malt Scotch whisky, Single Grain Scotch whisky, Blended Scotch whisky, Blended Malt Scotch whisky and Blended Grain Scotch whisky. Five regional categories will also be initially allowed for use on labels including Highland, Lowland, Speyside, Campbeltown and Islay, with the possibility of additional protected regions added later. However, these labels will not be available for products that are not wholly made in their respective regions. This will also apply to labels and promotional material using a name linked to a specific distillery, if it is not produced at the relevant site. Scotch whisky must also be wholly matured in Scotland,
with export strictly prohibited unless a product has first been
bottled and labelled in the country. Exports in wooden casks would
also be prohibited.
Peterson most recently added another new venture to his growing resume of projects – a beer company. Earlier this year, Peterson created Buffalo Water Brewing Co., a new beer brand brewed and packaged in Milwaukee. The company’s first beer, Bison Blonde Lager, is being introduced to the marketplace this month. Peterson concocted his brewing venture when he was leasing office space for Zigman Joseph Stephenson at the intersection of Water and Buffalo streets.The Buffalo Water name was too good to leave alone, Peterson said, and begged to be developed into a beer brand.“I talked to my friends in the brewing business, and they said the name is ingenious,” he said. The first beer produced by Buffalo Water is Bison Blonde Lager, beer specifically formulated to be paired with Buffalo wings, Peterson said.“The No. 1 finger food is Buffalo wings,” he said. “And we want the name to be synonymous with wings and hot foods.”To create his new beer, Peterson sampled 30 different beers he thought would match well with spicy foods such as Buffalo wings. He eventually found a profile that matched well, and he then tracked down its recipe online. With the help of a master brewer, that recipe was tweaked to create Bison Blonde Lager. While Bison Blonde Lager is a craft beer, it’s different from most microbrews, Peterson said. Bison Blonde Lager is relatively low in alcohol and light in color and in flavor. Many other microbrews have higher alcohol content, heavier flavors and use larger amounts of hops.“This is what I’d call a crossover beer,” Peterson said. “A lot of women don’t like the hops, heaviness and alcohol content. This beer appeals to people who don’t have an appreciation for big beers. And bartenders like it (Bison Blonde). They can sell twice as much of it (because of the lower alcohol content and lighter flavor).”Bison Blonde Lager was formulated for easy drinking – what Peterson calls “poundability.” One of the marketing slogans Buffalo Water Brewing is using to promote the beer is “Slam a Blonde Tonight.” Peterson knows lobbying, marketing, public relations and sales, but his expertise isn’t in beer brewing itself. He has created an alternating proprietorship of brewing premises with Milwaukee Brewing Co.’s Second Street Brewery at 613 S. Second St. Milwaukee Brewing Company is owned and operated by Jim McCabe, owner of the Milwaukee Ale House.“We are a separate company that leases the space needed to brew our product,” Peterson said. “We took a page from the Sam Adams book.” By using alternating proprietorship relationships, Peterson will be able to have Buffalo Water beer brewed at several locations around the country, when he is ready to enter different markets. And having the beer in other markets is a key part of his business plan. “The East Coast and New York state is the holy grail,” Peterson said. “That’s where we want to go. Every year, they have a Wing Festival over the Labor Day weekend. In two days, they draw almost as many people as they do in the whole Summerfest.” And Water Buffalo’s name could help it gain ground in Western states such as Colorado, where the American bison is a cultural icon. The first batch of Bison Blonde Lager was finished at the end of October, Peterson said. The beer is now available in two bars – the Milwaukee Ale House, 231 N. Water St., and Just Arts Saloon, 181 S. Second St. By Jan. 1, Peterson said, one prominent retail chain will sell the beer. He declined to name the chain. Peterson said current trends give his startup beer company a good chance for success. “Craft-brewed beer is the fastest growing segment of the alcoholic beverage industry,” he said. “Craft beer is up 17.8 percent in 2006 vs. 2005 and 31.5 percent in the last three years.“People are coming back to beer. Many of us switched to spirits as adults, then switched to wine which taught us to pay more for a beverage. We’re accustomed to a higher price point, but don’t want to go back to a huge brewed product.” Peterson and his consultants are working to create two additional beers for Water Buffalo Brewing Co. – a witte (white) beer named Ghost and a nutty ale named Horny Buffalo. “We have a lot of fun playing on words and with the packaging,” Peterson said. Buffalo Water Brewing has two full-time employees now – one in marketing and package design and the other who handles viral marketing. In the next few weeks, the brewery will hire a full-time salesperson who will sell tap lines to bars around the state, Peterson said. The brewing company, in its first year of operation, should grow sales by about 100 percent in the next three years, Peterson said. In later years, growth should taper to 15 to 20 percent. Peterson’s marketing skills will help set his microbrewery apart because many other microbrewers are experts in beer brewing, but not in selling their product.“We’re a marketing engine,” he said. “We already have a good-tasting beverage to market, and we take a lot of enjoyment in selling it. That’s one advantage we have right out of the box.” © 2007 Eric Decker - Small Business Times
NOTE: For more on Micro & Craft Distilling, such as
Distillers, Publications, Still Manufacturers & Supplies, ...
DIXIE BEER
BREWED AT MINHAS BREWERY IN MONROE
MIDWEST
HOMEBREWER OF THE YEAR:
MILW BREWING CO. GET'S
LICENSE ABSINTHE: The Green Fairy Absinthe figured into "Hemingway's
character Robert Jordan, in 'For Whom The Bell Tolls'," who
kept the "opaque, bitter, tongue-numbing, brain-warming, idea-changing
liquid alchemy" at the ready. Its ban in both Europe and America
resulted from murders and other mayhem allegedly committed by absinthe
drinkers, and medical studies alleging symptoms including "sudden
delirium, epileptic attacks, vertigo, hallucinatory delirium."
Apparently there's now general agreement that such problems were
more likely caused by alcoholism or madness than absinthe by itself.
Edward Rothstein describes its effects simply as "a kind of
relaxed alertness, accompanying the lulling impact of alcohol."
As well as perhaps a bit of bohemian legend ... and a lot of marketing. KOCHANSKI'S CONCERTINA
BEER HALL NOW OPEN Signs of progress
for the Pabst brewery redevelopment Please note that the Museum of Beer & Brewing has a letter of intent to locate in the 5000 square foot 2nd floor offices of the Historic Pabst Brewery.
The label carried the challenge: A grand - big money when the offer began in 1891 - to anyone who could prove Gettelman $1000 Beer contained any substitute for pure malt and hops. For 80 years, the reward stood unclaimed, until the last batch of Gettelman rolled off the line and would-be chemist-detectives lost their chance to become thousandaires. That beer truck has long since left the dock, but now, at least, people will have one more opportunity to taste the stuff. At 7 p.m. today, with appropriate ceremony, the first Gettelman $1000 Beer brewed since 1971 - a single keg produced according to a recipe squirreled away for years in family files - will be tapped. This is cause for some excitement, particularly among members of the Museum of Beer & Brewing, which is hosting the proceedings at the Miller Inn, 3931 W. State St. "It's just a wonderful, wonderful smooth beer," said Miller Brewing Co. brewmaster David Ryder, who oversaw production of the Gettelman and is among the very few to have tasted it in the last 35-odd years. "We're sure that the guests at the Museum of Beer & Brewing are really going to have a treat." Gettelman never approached the city's beer giants - Miller, Schlitz, Pabst and Blatz - in size. But the regional brewer made its mark as an innovator and, as much as any of its bigger rivals, embodied the German-flavored, lunch-bucket sensibility of Milwaukee's industrial prime. Tavern walls around town once were painted with "Fritzie," an advertising character with a Tyrolean hat on his head, a Gettelman bottle for a body and, usually, a smile on his face as he eyed a glass of lager. Some of the billboards said "Get. . . Get. . . Gettelman." Others cut to the heart of things with an even simpler slogan: /"Let's have a Beer!"/ According to a history of the A. Gettelman Brewing Co. by family member Nancy Moore Gettelman, the firm was Milwaukee's first brewer to advertise on television, sponsoring wrestling matches at the Eagles Club in 1947. Two years later, Gettelman introduced non-returnable bottles, cradled in what it called a "Basket O' Beer." And in 1957, as the Braves rolled toward the World Series, a service group sponsored by Gettelman paid for a canopy to shelter the hillside seats where veterans watched home games at County Stadium for free. Gettelman's fortunes, though, were going flat, and in 1961 the company was sold to Miller, its next-door neighbor on W. State St. Miller still makes a Gettelman brand, Milwaukee's Best. But the big brewer pulled the cork on Gettelman's signature beer after 10 years. This evening's gathering is open to the public ($15, but free drinks), and those inclined to dismiss Gettelman as another anonymous American beer may be surprised. "This is an all-malt brew," Ryder said. "(And) it's got special hopping to it - about 20 bitterness units." Bitterness is one of the things that makes beer taste like beer, and 20 bitterness units is about twice as much as typical mainstream U.S. beers, said Peter V.K. Reid, editor and publisher of the trade journal Modern Brewery Age. "That should be a nice beer," he said. Ryder said people likely would describe Gettelman as having "sort of a European taste." That probably is to say a German taste: Many German beers are still brewed according to that country's nearly 500-year-old beer purity law, which mandates use of barley malt and hops - none of the corn or rice some American beers use. With its strict malt-and-hops formula, Gettelman should be "maybe a little bit beefier beer, a little more body," Reid said. The brewing museum, a virtual entity working on establishing a physical presence, will serve up other attractions this evening. Nancy Gettelman will speak about her book. Fred Gettelman, a great-grandson of the family's brewing patriarch, will show company memorabilia. And there will be a tribute to Fred's grandfather, Fritz, a smart, tough-minded character who guided the brewery through the '30s and '40s and entertained listeners with his mastery of the old German-influenced, streetcar-bends-the-corner-around Milwaukee grammar. Besides running A. Gettelman, Fritz found time to invent such things as a steel beer barrel, a widely used snowplow and a steam-brush bottle washer. Displays of some of his inventions will be shown. The principal business, though, will be the tapping of the keg and the tasting of its contents, which Ryder and other participants are eagerly awaiting, and which might even prompt a Fritz-worthy comment like one Nancy Gettelman highlighted in her book: "Come, we hoist another
yet!" Brewery Ommegang appoints Phil Leinhart as Ommegang Brewmaster - Wishes Randy Thiel a successful future at New Glarus Brewing (Cooperstown, New York) Randy Thiel, Ommegang Brewmaster since 1997, is heading home to his native Midwest. In February, 2008, he will become Director of Quality Control at the New Glarus Brewing Company of New Glarus, Wisconsin. New Glarus Brewing is a 100,000 barrel capacity brewery well-known for brewing a wide range of world-class, handcrafted beers that are distributed exclusively in Wisconsin. Back in Cooperstown, Phil Leinhart will add the title and duties of Ommegang Brewmaster to his current responsibilities as Ommegang Director of Production. Randy has led Ommegang as Brewmaster since the initial brewing of Ommegang Abbey Ale Dubbel in 1997. Since then he has overseen the development of all things Ommegang, particularly the brewery’s renowned line of Belgian-style ales. During his tenure the Ommegang portfolio has grown to include Hennepin Farmhouse Saison, Rare Vos Amber, Three Philosophers Quadruple, Witte Wheat, Ommegeddon Funkhouse, and Ommegang Chocolate Indulgence Stout, along with other seasonals and special limited-production beers. Ommegang beers have garnered awards around the globe, including a recent gold medal for Hennepin in the prestigious 2007 European Beer Star Competition. Randy’s skills have been essential to the ongoing recognition of Ommegang ales and he has also been personally honored by the best of the international brewing world. In 2004, he became the first-ever American brewer inducted into the Knighthood of Brewers Mashstaff, by the Belgian Brewers Guild in Brussels, Belgium. Randy’s co-workers and friends, in New York and around the world, wish him all the best in his new endeavors and raise a toast to him: “Proost, Sir Randy!” The Ommegang mashstaff will be passed on: Phil Leinhart, Ommegang Director of Production since January 2007, will take on the office and responsibilities of Ommegang Brewmaster. Phil has been in the brewing industry for over twenty years, and has worked in and studied brewing in England and Germany, as well as in the US. He has practiced his craft in breweries ranging from brewpubs to craft breweries to – most recently – Anheuser-Busch in Newark, New Jersey. Phil arrived at Ommegang in January 2007 to help increase brewing capacity and to manage installation of new packaging and brew house equipment. Since then he has overseen 2007’s record-breaking brewing production at Ommegang. Phil says he is “pleased and honored to assume the Brewmaster responsibilities as Randy relinquishes the mashstaff,” while Randy wants to assure every Ommegang devotee that he “is leaving Ommegang in fantastically capable hands – hands that will help Ommegang imagine and produce even more fine Belgian-style ales.” For more information on Phil Leinhart and Brewery Ommegang, contact Larry Bennett at 607-544-1802. For more information on Randy Thiel and New Glarus Brewing, contact Deborah Carey, New Glarus Brewing at 608-527-5850. Brewery Ommegang opened in 1997 as a craft brewery dedicated to making fine Belgian-style ales. It currently brews five ales all year-round as well as seasonals. The beers are distributed in forty-five states and have won wide following by connoisseurs of fine beer. The brewery is located on a 136-acre farmstead on the banks of the Susquehanna River in Cooperstown, NY. For further information contact info@ommegang.com, call 1-800-544-1809, or visit www.ommegang.com. UK Whisky Consultation It is not resolution, but regulation driving New Year optimism in Scotch whisky production, as the UK government this week opens consultation on new rules to protect the liquor's reputation internationally. The proposed amendments will restrict how the product is labelled and sold in the country, with a particular focus on protecting the geographical origin of the product. The rules have been set out by the UK Department for Environment, Food and Rural Affairs (DEFRA) following the adoption last month of new laws regarding production and labelling of spirits by the European parliament. According to the European Commission, the new regulations will safeguard the reputation of the bloc's spirit brands by taking into account both traditional production methods, and technological innovations where there is a link to improvements in quality. Interested parties have therefore until 25 March 2008 to submit their views on how Defra's new production rules for whisky will impact on their operations, a deadline which cannot come soon enough for trade body, the Scotch Whisky Association (SWA). SWA spokesperson David Williams told BeverageDaily.com that he believed the proposed amendments were "fundamental" to protecting both the quality and reputation of Scotch amidst increasing global demand for the product. "It is an exciting time for Scotch producers, particularly in markets like the US, India and Russia on the back of considerable investment by the industry in warehousing and distilling," he said. "We are glad the industries campaign for greater protection is recognized and hope the measures will be implemented as soon as possible." Defra's proposals, in their current form, will tighten labelling requirements on whisky, both in terms of geographic and cask origin, in a bid to build better consumer understanding of what exactly constitutes Scotch whisky. "Passing the regulations would offer producers a robust legal framework to prevent unfair competition by supplying consumers worldwide with vital information about the product and where it came from." With Scotch whisky increasingly being sought after, the changes could prove another important step in boosting profitability for producers. Williams added that although 2007 export figures were not available, the SWA was anticipating further growth on the back of record global sales for the product during the previous year. In 2006, Scotch whisky exports rose four per cent in value over the previous year to £2.5bn according to the SWA. The rise beat the previous annual sales record of £2.4bn in 1997, reflecting healthy optimism in the market. The amendments, announced earlier this year, will require Scotch whisky to be classified under one of fivedefinitions, which must be used on labelling. These definitions will be: Single Malt Scotch whisky, Single Grain Scotch whisky, Blended Scotch whisky, Blended Malt Scotch whisky and Blended Grain Scotch whisky. Five regional categories will also be initially allowed for use on labels including Highland, Lowland, Speyside, Campbeltown and Islay, with the possibility of additional protected regions added later. However, these labels will not be available for products that are not wholly made in their respective regions. This will also apply to labels and promotional material using a name linked to a specific distillery, if it is not produced at the relevant site. Scotch whisky must also be wholly matured in Scotland,
with export strictly prohibited unless a product has first been
bottled and labelled in the country. Exports in wooden casks would
also be prohibited.
Peterson most recently added another new venture to his growing resume of projects – a beer company. Earlier this year, Peterson created Buffalo Water Brewing Co., a new beer brand brewed and packaged in Milwaukee. The company’s first beer, Bison Blonde Lager, is being introduced to the marketplace this month. Peterson concocted his brewing venture when he was leasing office space for Zigman Joseph Stephenson at the intersection of Water and Buffalo streets.The Buffalo Water name was too good to leave alone, Peterson said, and begged to be developed into a beer brand.“I talked to my friends in the brewing business, and they said the name is ingenious,” he said. The first beer produced by Buffalo Water is Bison Blonde Lager, beer specifically formulated to be paired with Buffalo wings, Peterson said.“The No. 1 finger food is Buffalo wings,” he said. “And we want the name to be synonymous with wings and hot foods.”To create his new beer, Peterson sampled 30 different beers he thought would match well with spicy foods such as Buffalo wings. He eventually found a profile that matched well, and he then tracked down its recipe online. With the help of a master brewer, that recipe was tweaked to create Bison Blonde Lager. While Bison Blonde Lager is a craft beer, it’s different from most microbrews, Peterson said. Bison Blonde Lager is relatively low in alcohol and light in color and in flavor. Many other microbrews have higher alcohol content, heavier flavors and use larger amounts of hops.“This is what I’d call a crossover beer,” Peterson said. “A lot of women don’t like the hops, heaviness and alcohol content. This beer appeals to people who don’t have an appreciation for big beers. And bartenders like it (Bison Blonde). They can sell twice as much of it (because of the lower alcohol content and lighter flavor).”Bison Blonde Lager was formulated for easy drinking – what Peterson calls “poundability.” One of the marketing slogans Buffalo Water Brewing is using to promote the beer is “Slam a Blonde Tonight.” Peterson knows lobbying, marketing, public relations and sales, but his expertise isn’t in beer brewing itself. He has created an alternating proprietorship of brewing premises with Milwaukee Brewing Co.’s Second Street Brewery at 613 S. Second St. Milwaukee Brewing Company is owned and operated by Jim McCabe, owner of the Milwaukee Ale House.“We are a separate company that leases the space needed to brew our product,” Peterson said. “We took a page from the Sam Adams book.” By using alternating proprietorship relationships, Peterson will be able to have Buffalo Water beer brewed at several locations around the country, when he is ready to enter different markets. And having the beer in other markets is a key part of his business plan. “The East Coast and New York state is the holy grail,” Peterson said. “That’s where we want to go. Every year, they have a Wing Festival over the Labor Day weekend. In two days, they draw almost as many people as they do in the whole Summerfest.” And Water Buffalo’s name could help it gain ground in Western states such as Colorado, where the American bison is a cultural icon. The first batch of Bison Blonde Lager was finished at the end of October, Peterson said. The beer is now available in two bars – the Milwaukee Ale House, 231 N. Water St., and Just Arts Saloon, 181 S. Second St. By Jan. 1, Peterson said, one prominent retail chain will sell the beer. He declined to name the chain. Peterson said current trends give his startup beer company a good chance for success. “Craft-brewed beer is the fastest growing segment of the alcoholic beverage industry,” he said. “Craft beer is up 17.8 percent in 2006 vs. 2005 and 31.5 percent in the last three years.“People are coming back to beer. Many of us switched to spirits as adults, then switched to wine which taught us to pay more for a beverage. We’re accustomed to a higher price point, but don’t want to go back to a huge brewed product.” Peterson and his consultants are working to create two additional beers for Water Buffalo Brewing Co. – a witte (white) beer named Ghost and a nutty ale named Horny Buffalo. “We have a lot of fun playing on words and with the packaging,” Peterson said. Buffalo Water Brewing has two full-time employees now – one in marketing and package design and the other who handles viral marketing. In the next few weeks, the brewery will hire a full-time salesperson who will sell tap lines to bars around the state, Peterson said. The brewing company, in its first year of operation, should grow sales by about 100 percent in the next three years, Peterson said. In later years, growth should taper to 15 to 20 percent. Peterson’s marketing skills will help set his microbrewery apart because many other microbrewers are experts in beer brewing, but not in selling their product.“We’re a marketing engine,” he said. “We already have a good-tasting beverage to market, and we take a lot of enjoyment in selling it. That’s one advantage we have right out of the box.” © 2007 Eric Decker - Small Business Times LARRY
BELL INTERVIEW LARRY BELL
@ WALL STREET JOURNAL "I didn't feel that they were the right fit for us,"
says Mr. Bell, who founded his brewery, now based in Comstock, Mich.,
in 1985. Last week, Mr. Bell quietly re-entered the Illinois market
with a new brand, even though he expects to be sued by his former
distributor, National Wine & Spirits Inc. Mr. Bell found two
distributors, Central Beverage Co. and Schamberger Brothers Inc.,
in the Chicago area willing to take on his new Kalamazoo Royal Amber
Ale despite the possibility they'll be sued, too. The fights stem from the nation's complex regulations for selling alcohol. Under laws that date to the repeal of Prohibition in 1933, beer generally must be sold through distributors. Producers like Bell's Brewery sell the brew to a distributor, which marks up the price and trucks it to a bar, restaurant or store, which then sells it to a consumer. The system was designed to keep alcohol producers from running bars and restricting consumer choice. States were given authority to regulate alcohol sales within their borders. Many, including Illinois, have enacted so-called franchise laws, designed to protect beer distributors from being dropped arbitrarily by a brewer after they have spent considerable resources building a brand. The laws prevent a brewer from terminating a distributor except under certain circumstances, such as fraudulent business dealings. Distributors, on the other hand, generally have the power to sell distribution rights whether the brewer likes it or not. Historically, craft brewers have made relatively little fuss over distributors, in part because they have been happy to have companies willing to hawk their brands. But now, at a time when craft beer has become the industry's fastest-growing segment, some small brewers are taking greater control over their destinies. They are attempting to dump their distributors or fighting moves to sell distribution rights -- often over allegedly poor service. Craft brewers seem "to be feeling their oats a bit," says Benj Steinman, editor of Beer Marketer's Insights, an industry publication. Last year, Mr. Bell was dismayed when National Wine & Spirits, an Indianapolis company, insisted on selling distribution rights to Chicago Beverage Systems, a unit of Reyes Holdings LLC, one of the nation's largest beer distributors. He worried the company, which sells mass-market brands, including Miller Lite, would devote little attention to his beers. In an emailed statement, James Doney, president of Chicago
Beverage Systems, said "we were looking forward to adding Bell's
to our portfolio of fantastic craft beers" and "were puzzled
by Larry Bell's choice to leave the market." "I was really bummed," says 29-year-old Chicagoan Sean Ludera, a devotee of such brands as Bell's Two Hearted Ale and Bell's Oberon Ale. Mr. Bell has taken a measured approach for legal reasons, creating the new brand, which partly pays homage to the brewery's first home in Kalamazoo, Mich. The beer's recipe is also different than the brewer's traditional brands. After consulting with a lawyer about Illinois law governing breweries, Mr. Bell believes he can return to the market using new distributors as long as he offers new brands with new recipes. "I fully believe the law is on our side," he says. About two months ago, he says, Greg Mauloff, an executive
vice president with National Wine & Spirits, warned him he would
face a long legal fight if he tried to come back to Illinois. Mr.
Mauloff declined to comment. Mr. Bronson, a beer judge for regional competitions who used to run a microbrewery, said he was annoyed when he learned that Bell's wouldn't be sold in Illinois anymore. So much so that he said he went to his local liquor store last year and bought four cases of Bell's Two Hearted Ale "so I would have a store." Comparing Kalamazoo with other Bell's labels, Mr. Bronson said it was unlike anything else he has tasted from the company. "This is definitely different beer -- it has a surprising, nice malt character that I really enjoy." Several recent spats between small brewers and distributors have wound up in court. In February, New York's Brooklyn Brewery Inc., a fast-growing producer of beers such as Brooklyn Lager and Brooklyn Brown Ale, notified one of its distributors, Gasko & Meyer Inc., that it would terminate their agreement. Brooklyn Brewery was disappointed with its sales in the five counties in upstate New York in which Gasko & Meyer sold its beer, and complained that the distributor made late deliveries and sometimes delivered stale beer. Gasko & Meyer responded by suing the brewer in New York state court, claiming, among other things, that Brooklyn Brewery failed to properly notify it of any failures to adhere to their distribution deal, which began in 2001. A judge in September rejected Gasko & Meyer's request for a preliminary injunction to keep Brooklyn Brewery from changing wholesalers. Its new wholesaler, Lobo Distributing Co., has rapidly increased sales, says Steve Hindy, the brewer's president. Gasko & Meyer's lawsuit is still pending; officials at the distributor declined to comment. Trying to switch distributors "is a big gamble for a small company like ours, because these lawyers are not cheap and you want good representation," says Mr. Hindy. Mr. Hindy says heightened consumer demand for craft beers is giving small brewers confidence to "assert our rights more forcefully." Also emboldening them: Many distributors that once ignored craft beers are now clamoring to add them to their lineup to increase profits. It "is a whole different world for us than has existed in the last 20 years," Mr. Hindy says. Back in Michigan, Mr. Bell is bracing for a lawsuit and didn't do much celebrating of his beer's return to the Windy City. He has been taking it easy because he had surgery last month to remove his prostate after being diagnosed with cancer. "It's major surgery, so I'm watching my energy level," he says. "There's plenty of life left for drinking beer." (c) 2007 David Kesmodel - Wall Street Journal 2007
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