Breweries

The city of Portland has abandoned an effort to take away a local brewery’s right to using an iconic logo. Old Town Brewing secured the exclusive rights to use the leaping deer logo found on the city-owned Portland, Oregon, sign in 2012.

The city hired a private trademark attorney and spent four years contesting Old Town Brewing’s exclusive rights. The Oregonian reports city officials announced Portland will no longer seek to secure the trademark for use of the logo on beer, wine and liquor products.

In exchange, the Old Town brewery will allow the city to license the image for certain local alcohol-related uses such as festivals, events and advertising for local trade organizations. Old Town Brewing will not allow use of the logo on any alcohol-related products or packaging.

Smuttynose Brewing Co., founded in 1994 and the largest craft brewery in New Hampshire, will be sold at bank auction March 9 unless a buyer is found before. The company employs 68 people and generates more than $10 million in revenue a year.

The sale includes the Smuttynose brand, its facility on the historic Towle Farm in Hampton and Hayseed Restaurant located next to the brewery on its 13-acre site. The brewery is capable of producing 75,000 barrels a year, but in the last year it has been running at 50% capacity.

“The company’s financial models were based on 20 years of consistent growth but the explosion of microbreweries has led to changing dynamics in the marketplace,” Smuttynose owner Peter Egelston said in a press release. “This dramatic shift occurred just as Smuttynose committed to a major infrastructure investment with the construction of the new production facility. As the turmoil in the marketplace stabilizes, Smuttynose, a trusted brand with strong consumer loyalty, can regain its footing with a major infusion of capital.”

Egelston stressed that the company is open and will conduct business as usual.

Lead lender Provident Bank is managing the auction process. “Smuttynose Brewing Company has been a valued customer and an important part of our community. Provident Bank is committed to working with the company during these challenging financial times to produce the best outcome for everyone involved,” Provident Bank President Chuck Withee said.

Egelston, along with partner Joanne Francis, is also owner of the Portsmouth Brewery, a brewpub located in downtown Portsmouth. It is not part of the sale.

Green Flash Brewing, which operates breweries on both coasts, announced it will withdraw distribution from 32 states and reduce its workforce by 15%.

“We were doing pretty well close to the breweries, and in some strategic markets we had some strongholds, but we had a lot of territory that was in pretty steady decline,” co-founder Mike Hinkley told Brewbound. “Rather than to continue to fight that battle, we took the resources from out there and brought ’em all into a smaller territory — as much as we could, anyway.”

Green Flash sold only 18% of its beer in the 32 states it will not longer ship to. “We kept about 82% of our wholesale trade business,” Hinkley said. “We were pretty sparse and in decline in that other territory, so reeling it back to strength. Now we can put our sales and marketing resources into a tighter geographic footprint.”

Green Flash will continue to supply Arizona, California, Colorado, Hawaii, Nebraska, Nevada, Texas, and Utah, Delaware, Maryland, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee and Virginia from two breweries — the original San Diego location and its second brewery in Virginia Beach. Green Flash also recently acquired a brewpub in Lincoln, Neb., and expects that could be a model for the future.

“If that’s successful, that’ll be the model for how to go to another city,” Hinkley told Brewbound. “And then the 100-year plan is maybe there’ll be 10 Lincolns over the next 20 years of my life. But who knows? I just can’t support all of that territory. I don’t have the resources to compete on that broad a scale.”

A federal trademark court has ruled that Innovation Brewing in North Carolina is clear to register its name and branding. Bell’s Brewery in Michigan had argued the microbrewery’s name is too close to two of Bell’s marketing phrases.

In opposing Innovation’s trademark registration in 2014 Bell’s argued Innovation’s name sounded too much like the bigger brewery’s unregistered advertising slogan, “Bottling innovation since 1985.” Bell’s also claimed the word “inspired,” which Bell’s has used on some logos and marketing materials within the phrase “Inspired Brewing,” carries the same meaning as the word “innovation.”

The trademark court found that the slogan in question had not been “used and/or advertised … in connection with a single product (so) that they have come to be associated together, in the mind of the purchasing public” with Bell’s products.

Mendocino Brewing Co., which has a direct link to the beginning of the American craft beer movement, will close its California taproom Saturday and the future of the brewery is in doubt.

Originally located in Hopland and later relocated to Ukiah, the taproom was the first brewpub to open in California and second in the United States after Prohibition. Some of the brewery’s equipment came from New Albion, the first post-Prohibition purpose-built microbrewery.

The closing comes as Mendocino Brewing is in discussion with an investor to help rescue the company, said Michael Laybourn, brewery co-founder who is still a board member. Its Ukiah brewery is located about a half-mile away from the taproom. “If it happens in the right way, he will save the company,” Laybourn said of the investor, which he did not name but said was from Northern California.

The brewery, which opened in 1983, has struggled recently under its chairman and indirect majority shareholder, Vijay Mallya, who bought the company in 1997. Mallya resides in London and is fighting extradition to India on charges of fraud and money laundering, according to news reports.

Keith Villa, who wrote the recipe for Blue Moon Belgian White in 1995, is retiring from MillerCoors. “While I am stepping away and retiring from MillerCoors, this company will forever hold a special place in my heart,” Villa said via a statement. “Over the last 20 years, I have witnessed the growth of Blue Moon from a local beer that we developed at the SandLot (a brewery that began inside Coors Field in Denver) to a brand that is sold around the world.”

Villa served as head brewmaster and global brand ambassador in recent years, continuing to write recipes for other Blue Moon brands.

According to market research firm IRI Worldwide, Blue Moon Belgian White Ale ranks as the No. 1 craft brand with sales of more than $258 million in grocery and convenience stores.

Green Flash Brewing, which opened 15 years ago in San Diego and added a second larger brewery last year in Virginia, has announced it will operate another brewery in Lincoln, Neb.

A press release states the company has purchased a 10,000-square-foot production facility and tasting room with a restaurant in Lincoln. Ploughshare Brewing, which opened in November 2014, closed its doors July 3. “The new brewery was purchased intact, and Green Flash expects the tasting room, restaurant, and brewhouse to be open and operating by the end of this year,” according to the press release. “Upon opening, Green Flash will be able to offer fresh beer with regional prices in the Midwest, and will focus on the consumer connection in their Lincoln tasting room. The move reveals Green Flash’s long-term strategy to increase their strength as a national brand by establishing regional footholds in key cities across the United States.”

“We hope to become a local favorite in our new Nebraska home,” saids Green Flash co-founder Mike Hinkley.

The new brewery has a capacity of 10,000 barrels, much smaller than breweries in San Diego and Virginia Beach. It will produce both Green Flash and Alpine brand beers.

Write your own headline. The press release New Belgium Brewing issued this afternoon turned the process of picking a lead item into a multiple choice question.

The Colorado brewery will purchase Magnolia Brewing in San Francisco, the 20-year-old brewery that was in bankruptcy. A newly formed partnership, in which New Belgium is the majority shareholder, that includes Elysian Brewing co-founder Dick Cantwell and Belgian lambic producer Oud Beersel, will operate Magnolia. Cantwell will head up brewing operations, working along with Magnolia founder Dave McLean, who will be an employee of the partnership. Cantwell left Elysian in 2015, after the A-B InBev bought the company.

“I’m tremendously excited to be back in the beer business and looking forward to working with the team at Magnolia to develop new beers and new ideas,” Cantwell said in the press release. “This project is the natural evolution of a longstanding strategy of collaboration between myself, New Belgium and Oud Beersel.”

The release explains that Belgian lambic producer Oud Beersel joins the partnership as a contributing experimenter, with the goal of eventually shipping containers of its traditionally-produced and spontaneously fermented beers for blending with Magnolia-crafted beers. Installation of a coolship is planned, along with the wooden aging vessels for which both New Belgium and Oud Beersel are known. To be called lambic a beer must be produced in Belgium, and by shipping lambic to San Francisco, the partnership plans to establish the world’s first dedicated lambic blendery outside of Belgium.

New Belgium already did something similar with Transatlantique Kriek, a beer produced with Oud Beersel and Brouerij Boon, wherein beer was shipped from Belgium for blending with New Belgium wood-aged beers. New Belgium is also likely to ship beer to San Francisco for blending from its Fort Collins, Colorado brewery.

“We’ve been looking for ways to diversify our assets and expand our community,” said New Belgium co-founder and Executive Chair, Kim Jordan. “These two tap rooms are right in the heart of historic San Francisco neighborhoods, a place Dick (Cantwell) and I call home. Magnolia makes excellent beer and plays an important role in the community. We’re excited about the possibilities and look forward to continuing our journey while honoring Magnolia’s history and presence.”

McLean opened Magnolia Brewing in 1997 in San Francisco’s Haight-Ashbury district. Smokestack, a barbecue restaurant attached to a 30-barrel production brewery, followed in 2014. When its revenue did not meet expectations the company to file for Chapter 11 bankruptcy protection in November 2015.

“Magnolia has had quite a journey in San Francisco for nearly two decades, including some very challenging and difficult times in recent years,” Mclean said. “I’m incredibly grateful for this opportunity to see Magnolia start a new chapter and to be working with New Belgium, Dick Cantwell and Oud Beersel to preserve what we all love about Magnolia while embarking on some exciting new craft beer adventures together.”

Constellation Brands has acquired as second craft brewery, today announcing it has bought Florida’s Funky Buddha Brewery. Constellation, which also imports popular Mexican brands such as Corona and Modelo, purchased Ballast Point two years ago.

Ballast Point cost Constellation $1 billion. The terms of the Funky Buddha deal have not been disclosed.

Funky Buddha, founded in 2010 and based in Oakland Park, is projected to produce 35,000 barrels of beer in 2017, up 29% from 27,000 barrels in 2016.

“Adding a fantastic regional brand such as Funky Buddha to our craft beer portfolio, along with Ballast Point, advances our strategy in continuing to lead the high-end beer segment,” Paul Hetterich, president of Constellation Brands’ beer division, said in a press release.

Funky Buddha is known for beers such as Hop Gun IPA and Floridian Hefeweizen, as well as its Maple Bacon Coffee Porter and Last Snow Coconut Coffee Porter.

Japan’s Sapporo Holdings has purchased Anchor Brewing, the San Francisco brewery credited with igniting the American craft beer renaissance. Sapporo reportedly paid $88 million for the brewery, considerably more than AB InBev spent ($38 million) to acquire Goose Island but much less than Constellation brands paid ($1 billion) for Ballast Point Brewing.

Sapporo’s statement announcing the deal describes Anchor in a most modest way:

“Anchor is a prominent and historic US beer producer founded in 1896 in San Francisco. ‘Anchor Steam Beer,’ its flagship brand, is said to be an icon that ignited the current craft beer boom in the US. Armed with its strong brand power primarily in San Francisco, where it is based, as well as other areas across the US, it has been enjoyed by countless beer lovers throughout the years.

“The addition of Anchor’s strong brand power and network to the Sapporo Group’s US beer business portfolio through the conclusion of this agreement is expected to accelerate its speed of growth in the US.”

Although Anchor was founded 121 years ago, American beer enthusiasts focus on its history since 1965, when Fritz Maytag took a stake in the struggling business. He took full control of the company in 1969, first reviving the “steam beer” style the brewery is best known for, but then many others not brewed in the United States. The brewery, and its beers, inspired a new wave of small breweries — that would later be called craft breweries — including Sierra Nevada Brewing.

The Griffin Group, an investment and consulting company headed by Keith Greggor and Tony Foglio, purchased Anchor in 2010. According to Greggor, the sale to Sapporo comes after a year during which the company spoke with “many, many” larger breweries all over the world to find the right fit. “When you take a brand like Anchor, its very soul exists in the heart of San Francisco,” Greggor said. “Of all the people we spoke to, (Sapporo) respected Anchor the most, what it stood for and the importance of its connection with San Francisco.”

SFGate asked Greggor what does the deal means for the future. Greggor replied that Sapporto agreed to keep using the Potrero Hill brew house — at least for the time being. “Sapporo committed to investing in the Potrero Hill brewery until we exceed capacity of that brewery, but I have no idea when that would be,” Greggor said. “We are currently running at about 55 to 60 percent of that capacity.” The deal also likely means that Anchor’s long-delayed Pier 48 expansion is likely to be dead in the water, though Anchor would not comment on the status of the project.

The Brewers Association has made a new seal designed to help consumers identify independent breweries. The seal is available for use free of charge by any of the more than 5,300 small and independent American craft brewers that have a valid TTB Brewer’s Notice, meet the BA’s craft brewer definition, and sign a license agreement. It is available to both member and non-member breweries of the BA.

It features a beer bottle shape flipped upside down, signifying that craft brewers have upended beer.

“Independent craft brewers continue to turn the beer industry on its head by putting community over corporation and beer before the bottom line. They continue to better beer and our country by going beyond just making the beverage. These small businesses give back to their backyard communities and support thousands of cities and towns across the U.S.,” said Bob Pease, president & CEO, Brewers Association, in an association press release. “As Big Beer acquires former craft brands, beer drinkers have become increasingly confused about which brewers remain independent. Beer lovers are interested in transparency when it comes to brewery ownership. This seal is a simple way to provide that clarity—now they can know what’s been brewed small and certified independent.”

All 19 of the Brewers Association board members approved the initiative, Pease said, adding that each of the 16 brewery representatives committed to printing the seal on packaging. Boston Beer Company, the second-largest U.S. craft brewery, and Maine’s Allagash Brewing Company are among the initial breweries that have agreed to place the seal on their packaging.

“Craft brewers build communities and the spirit of independent ownership matters,” said Allagash founder Rob Tod, who is chair of the BA board. “When beer lovers buy independent craft beer, they are supporting American entrepreneurs and the risk takers who have long strived not just to be innovative and make truly great beer, but to also build culture and community in the process.”

Massachussets-area private equity firm Castanea Partners has bought a majority share of The Bruery, a Southern California brewery known for its esoteric beers. In announcing the deal on its website the brewery stated it will “enable us to continue to grow in ways consistent with our ideals.”

“We chose to make Castanea a part of Famille Rue because of their talents and their appreciation and understanding of our vision, and because they want to contribute to our continuous improvement,” CEO Patrick Rue wrote. He and his father, Mike, started the The Bruery in 2008. The Rues expect to sell about 13,000 barrels in 2017, much of it directly to customers.

The brewery answered the question about why it would make the deal with a private equity firm this way: “The Bruery started out as a very small operation, and nine years later we’ve transformed into a proud leader in specialty craft beer. We’ve had plans for growth, some of which you have seen realized over the past couple of years, with the implementation of our more efficient brewhouse, our new packaging hall for our clean beer, and the extension of our sour and wild program into our Bruery Terreux brand and facility.”

The companies Castanea has invested in include Jeni’s Splendid Ice Cream, Urban Decay cosmetics, Essentia Water, and drybar.

Longtime New Belgium Brewing brewmaster Peter Bouckaert had announced he will leave the Fort Collins brewery to form a new one, also in Fort Collins. He will team up with Zach and Laura Wilson, formerly of 1933 Brewing, to form Purpose Brewing and Cellars. Bouckaert will begin working with his new partners immediately, but no formal timeline has been established for when he will leave New Belgium. It likely won’t be before the end of the year.

“We believe that everything in life has a purpose. Our mission at Purpose Brewing and Cellars is to inspire creativity, promote craftsmanship, and support our local community,” Bouckaert and the Wilsons said in a press release.

Bouckaert, a native of Belgium who previously worked at Rodenbach Brewery, began at New Belgium in 1996. “I got to work for 21 years in the best company in the US, since Google does not create beer,” he said. “I got to work with people that realize daily their love and passion. I said from the get go that I wanted to stay as long as I can learn. Now I want to learn new things. It will be hard to leave all this passion but change is good for learning.”