News

A dispute between Lagunitas Brewing Co. and Sierra Nevada Brewing Co. that flashed in the public arena on Tuesday basically ended later in the day.

Posting on Twitter, Lagunitas founder Tony Magee wrote, “Today was in the hands of the ultimate court; The Court of Public Opinion and in it I got an answer to my Question; Our IPA’s TM has limits.”

On Monday, the California brewery took Sierra Nevada Brewing Co. to court, claiming the brewery’s logo on its new Hop Hunter IPA violated Lagunitas’ trademark. As part of the lawsuit, Lagunitas was seeking a temporary restraining order to block Sierra Nevada’s use of the Hop Hunter design. The case was scheduled to be heard Jan. 20 in an Oakland courtroom in the U.S. District Court for the Northern District of California, according to online records.

After the suit became public on Tuesday, seemingly every human on earth that has ever drank a beer from either of the breweries posted an opinion on some social media site. Some supported Lagunitas’ right to defend its trademark, but Magee obviously saw overall opinion was on the side of Sierra Nevada.

Before announcing he would drop the suit on Wednesday, he also tweeted, “Today, January 13th 2015, has been the worst day ever in 23 years of growing my brewery. Worst. Growing a biz involves defending a biz…”

Lagunitas Brewing Co. has sued rival Sierra Nevada Brewing Co., according to the Press Democrat, alleging the Chico-based brewer has engaged in trademark infringement on its new Hop Hunter IPA label. Sierra Nevada is the second-largest craft brewer in the United Sates, while Lagunitas is No. 5.

Lagunitas owner Tony Magee argues Sierra Nevada’s design on Hop Hunter uses all capital, large, bold and black “IPA” lettering that is similar design to his label. The suit was filed Monday in the federal district of northern California.

Lagunitas alleges that the Hop Hunter “IPA” lettering is a “radical departure” from Sierra Nevada’s traditional design.

Lagunitas has filed four claims in its suit: federal trademark infringement; common law trademark infringement; unfair business practices; and unjust enrichment.

St. Louis-based Urban Chestnut Brewing’s plans for brewing in Germany do not quite match the scale of what Stone Brewing has announced in Berlin, but UCBC co-founder Florian Kuplent admits they are nonetheless rather ambitious.

“I’m thinking we might be a little crazy opening our third brewery in (less than) five years,” he said for a press release, but the opportunity to purchase a recently closed brewery in Wolnzach, Germany, was too good to pass on.

UCBC has acquired Bürgerbräu Wolnzach in Wolnzach, which is located about 50 kilometers north of Munich International Airport. Urban Chestnut has been exporting small quantities of beer to Germany since 2013. Co-founder David Wolfe said, “In considering different ways to grow Urban Chestnut in Germany and in Europe as a whole, we believe the U.S. craft beer model of ‘local’ is a more than viable strategy. Actually owning and operating a brewery in Bavaria will provide us with a solid platform for growth.”

Urban Chesnut opened its first brewery in 2011 in midtown St. Louis and a much larger production facility and beer hall a few miles away early in 2014.

The new brewery will be the smallest of the three UCBC breweries. The Wolnzach operation will be utilized to brew beers to distribute in Europe as well as to brew unique, German-brewed beers to export to the U.S. It will also act as the central point of operations for the importing/exporting of raw materials, beer, and other goods to and from the U.S.

“Since my apprenticeship as a teenager at Erharting Brauerei, I’ve always dreamed of owning my own brewery in Bavaria,” Kuplent said.

The numbers are in from the Brewers Association in Colorado.

“It’s remarkable to see how beer has evolved in the past century. Year over year we’re seeing tremendous growth in the craft beer sector and 2014 proved that craft beer is moving into the mainstream,” Bart Watson, BA chief economist said for a press release. “Consumers are making a conscious choice to buy and try the plethora of options produced by small and independent craft brewers.”

The BA recap:

– U.S. brewery count returns to historic levels. In November, the United States passed the mark of 3,200 brewers in the country and the number of brewery licenses reached the highest ever, topping 4,500 in the first sixth months of the year. Thirteen states (CA, CO, WA, OR, MI, NY, PA, TX, FL, WI, IL, NC, OH) now have more than 100 breweries each.

– Breweries are opening at a rate of 1.5 per day. In addition, there are more than 2,000 breweries in planning.

– Craft brewers were the growth point in the overall beer industry. Through June of 2014, craft brewers enjoyed 18 percent growth by volume. Numerous data channels are showing continuing double-digit growth for craft in the second half of the year.

– India Pale Ales (IPAs) remained the most favored craft beer style. According to retail scan data, IPA is up 47 percent by volume and 49 percent by dollar sales, accounting for 21 percent volume share of craft and 23 percent dollar share of off-premise beer sales. Additionally, the style was the number one entered category at the Great American Beer Festival®.

– Variety packs had a strong year with craft beer lovers. Retail data also indicates that variety packs are up 21 percent by volume and 24 percent by dollar sales, equating to nine percent volume share of craft and seven percent dollar share.

– Craft beer fans are becoming as diverse as craft beer itself. Data indicates that 38 percent of households bought a craft beer in the last year versus 29 percent in 2010. Additionally, women consume almost 32 percent of craft beer volume, almost half of which comes from women ages 21-34. Hispanic populations are demonstrating increased craft engagement as well.

The Grain Belt beer sign that has been a Minneapolis landmark since the 1940s but dark for almost 20 years apparently may soon be lit again. August Schell Brewing Co., which acquired the Grain Belt brand in 2002, announced it will buy the sign and the Nicollet Island land it sits on and donate it to the Preservation Alliance of Minnesota. The organization plans to raise money to light and maintain the sign.

“People love the sign,” Schell president Ted Marti said. Schell, located in New Ulm, is the second oldest family owned brewery in the country.

Minneapolis Brewing Co., which brewed Grain Belt until selling the grand to Schell, originally leased the sign from the Eastman Family. It was moved to its current location on the Mississippi river in 1950 after first sitting atop the Marigold Ballroom. The Eastman Family Trust currently owns the sign.

Green Flash Brewing and Alpine Beer Company have announced a unique partnerships in which the breweries “will join forces, teaming up to share resources, knowledge and experience.” In a press release, Alpine founders Pat and Val McIlhenney and Green Flash founders Mike and Lisa described the affiliation as mutually beneficial. The press release describes the deal:

Each company will remain independently operated and maintain its distinct brand and culture. Pat will remain Alpine’s President and Brewmaster to oversee all operations of Alpine Beer Company while also ensuring Alpine beers continue to meet his unwavering standard of quality, whether brewed at the Alpine or Green Flash facilities. The most notable change will transpire over the next several years, as Alpine beer will become available to their legions of fans from across the country who have only experienced the greatness of Alpine beers while visiting California.

In a “handshake agreement,” Green Flash began brewing Alpine beer in November 2013 at their San Diego facility with the goal of helping longtime friends at Alpine raise capital to expand their production capacity. Green Flash has been producing three of Alpine’s brews (Nelson, Hoppy Birthday and Duet), increasing Alpine annual production from 1500 to 3000 BBLs.

The experience of brewing together has been a successful learning experience for both breweries. Green Flash Brewmaster, Chuck Silva divulged, “It was both intriguing and challenging to meld our philosophies while we worked together to scale up Pat’s recipes to be brewed in larger quantities. We worked together to stay true to the original beer and were very happy with the ultimate results. Working with a close friend is a real treat, but for me, brewing with Pat and making Alpine beers, is yet another highlight of my brewing career in San Diego.”

The successful arrangement they have shared over the past year was the impetus that prompted the breweries to take their relationship to the next level. Each views the partnership as an organic evolution that will benefit both of their operations in many ways. “Our team was thrilled to be able to brew the awesome beer from Alpine when we began teaming up,” says Mike Hinkley of Green Flash. “The excitement of our brewers is what prompted me to think about additional ways we could work together and help each other. We perceive this solid new partnership as an incredible opportunity to continue to explore our craft while benefiting from the passion and experience of Pat McIlhenney.”

“After working with Green Flash for the past year, I have come to truly trust and deeply respect the entire Green Flash operation – Chuck and all of their brewers are meticulous, yet easygoing, and I am comfortable working with the team,” says Pat McIlhenney of Alpine Beer Co. “There are many benefits in teaming up with Green Flash as a partner. Not only are they committed to producing high-quality beer, the company culture and mom and pop roots of Green Flash are very similar to our own.”

Alpine employs 20 people, is distributed exclusively in California with the ability to produce a maximum of 1500 BBLs from their San Diego County brew-house, with most of their beer sold directly from their on-site pub. Brewing capacity limitations have made it impossible for Pat and his team to support the overwhelming demand for their exceptional products. As partners, Alpine will be able to tap into the growing Green Flash team of talented brewers, their production capacity, access to capital, and human resources in operations and administration. Mike added that “I am hopeful that the culmination of the next few years will be that, together, we build a new production facility in Alpine. Maybe we will even brew some Green Flash ale in Alpine.”

“I know there is strength in unity, which will allow both of our breweries to secure even higher quality ingredients – we will be a great force as a team,” exclaims Pat. “However, the most important advantage is how this partnership will help improve the quality of life for my employees. For the first time, Alpine will be able to offer our team an excellent company benefits package including affordable health care, 401K plans and other perks made possible by this exciting partnership.”

In 2015, Green Flash will begin bottling select Alpine brews in 22oz bottles adding to the three current draft offerings. Collaborative brews are already in Chuck and Pat’s top-secret conversations, so consumers can expect these to appear in their tasting rooms and at the best craft beer bars in Southern California. The two Brewmasters are already talking about how they can work together at Green Flash’s Cellar 3, a special barrel-aged beer packaging facility that is currently under construction in Poway, and will include a cork-finish bottling line.

Chuck said, “I consulted Pat and borrowed some of his ideas when I made our tenth anniversary Flanders-style ale, which was a great success and will be recreated at Cellar 3. I am always on the look-out for ideas. With Pat and me on the same team, you can count on us to push the envelope even further.”

Mike summarizes, “This partnership is win-win-win. Green Flash wins because we are teaming up with a truly iconic brewery. Alpine wins because they get to see their beers enjoyed by so many more of their adoring fans. But most of all, beer geeks everywhere win, because Chuck and Pat will be working together to create beers that will blow their minds.”

Anheuser-Busch today announced it has agreed to purchase 10 Barrel Brewing Company, located in Bend, Ore.

From the press release:

“For the past eight years, we’ve been brewing beer, drinking beer and having fun doing it.” said co-founder Jeremy Cox, who will continue to lead 10 Barrel along with his partners, co-founder and brother Chris Cox, and Garrett Wales. “We are excited to stay focused on brewing cool beers, get our beers in more hands, and make the most of the operational and distribution expertise of Anheuser-Busch,” said Cox.

10 Barrel expects to sell approximately 40,000 barrels of beer in 2014. Apocalypse IPA, the brewer’s most popular beer, accounts for nearly half of the company’s total volume.

“10 Barrel, its brewers, and their high-quality beers are an exciting addition to our high-end portfolio,” said Andy Goeler, CEO, Craft, Anheuser-Busch. “The brewery is a major contender in the Northwest, an area with a large number of craft breweries. We see tremendous value in the brewery’s unique offerings and differentiated style, which 10 Barrel fans know and love.”

In addition to the Bend brewery, the acquisition will include the company’s existing brewpubs in Bend and Boise, Idaho; and a Portland brewpub scheduled to open in early 2015.

Anheuser-Busch’s purchase of 10 Barrel is expected to close by the end of 2014. Terms of the agreement were not disclosed.

Earlier this year Anheuser-Busch acquired New York-based Blue Point Brewing.

San Diego-based Stone Brewing Co. has announced it has signed a formal letter of intent with the City of Richmond, Virginia, signifying the company’s interest in building its East Coast facility in the city’s Greater Fulton Community. Subject to local approvals, Stone plans to invest $74 million to construct a production brewery, packaging hall, destination restaurant, retail store and its administrative offices. Construction of the facilities will occur in phases. The brewery is anticipated to be operational in late 2015 or early 2016, with Stone Brewing World Bistro & Gardens opening a year or two after that. Ultimately, the company will employ more than 288 people.

More details from a company press release:

“The search for our location east of the Mississippi River was no easy endeavor,” said Stone President and Co-founder Steve Wagner. “We received and reviewed hundreds of proposals, visited more than 40 sites, and received quite a bit of attention from communities and craft beer fans. The three finalist cities each provided diverse offerings, however, we decided to begin next-step negotiations with Richmond because of their ability to meet our extensive site requirements, subject to the city’s approval. We also feel that Richmond’s vibrant energy and impressive craft beer culture, along with the uniqueness of the property, will allow us to create a truly memorable Stone experience for our fans. We are honored by the amount of time and effort all the communities that submitted proposals put forth, and we want to specifically thank Virginia Governor Terry McAuliffe and Richmond Mayor Dwight C. Jones for welcoming us.”

Adds Stone CEO and Co-founder Greg Koch, “A facility on the East Coast will allow us to meet demand for our beer, ensure we are providing our fans with the freshest beer possible and also serve as a distribution hub for states located east of the Mississippi. We look forward to becoming an integral part of the lively craft beer community in Richmond, the state of Virginia and the entire eastern U.S.”

Stone anticipates building a 200,000 square-foot production brewery and distribution facility on 14 acres of land. Equipped with a 250-barrel brewhouse, the brewery will produce year-round and special-release beers to be bottled, kegged and distributed, as well as enjoyed on-site. The company also plans to renovate a two-story, 30,000 square-foot building, transforming it into a destination restaurant spanning four acres and highlighting locally grown organic food, complementing the harmonious nature and seasonality of the location’s surroundings. The restaurant will feature beautifully landscaped gardens where visitors will be able to enjoy craft beer, dine and relax in an inviting atmosphere.

“Today’s announcement marks the fruition of months of partnership and aggressive efforts to show Stone Brewing Co. that Virginia is the best state for its new craft beer production and hospitality facility,” said Virginia Governor Terry McAuliffe. “The company received submissions from more than 20 states, and the Commonwealth of Virginia was selected. This competitive, high-profile project really puts Virginia on the map and cements our standing as a serious player in the craft beer industry. In addition to Stone’s significant investment and more than 288 new jobs, the far-reaching economic benefits of this operation are innumerable. The City of Richmond offers the infrastructure, available site and building, and natural resources that will allow the company to thrive and grow, and we are confident that Stone will benefit from the Commonwealth’s excellent business environment for years to come. Today is an achievement of great magnitude, and we are excited to welcome Stone Brewing Co. to Virginia.”

“We are thrilled about Stone’s decision to choose Richmond as its East Coast production and distribution facility location,” said Richmond Mayor Dwight C. Jones. “After competing with 20 other states, we are so pleased that Stone has discovered those attributes that make Richmond a great place to do business. The fact that they have chosen a site in the Greater Fulton Community underscores their understanding of the rich history and natural assets that we have to offer. As they bring their unique craft beer and visionary business model here, I look forward to the many opportunities that lay ahead with Stone.”

This is the second expansion announcement Stone has made this year. In July, the company unveiled it will become the first American craft brewer to independently own and operate a brewery in Europe with the opening of Stone Brewing Co.—Berlin.

The Great American Beer Festival concluded Saturday in Denver. Earlier in the day the winners of the commercial competition were announced. A complete list of the winners is here. The Brewers Association has compiled plenty of facts and figures about the competition and the festival.

– The competition saw its biggest panel of judges ever, with 222 beer experts from 10 countries evaluating 5,507 commercial entries, plus 89 Pro-Am entries.

– Winners in 90 categories were chosen from 5,507 competition entries (16 percent more than in 2013) from 1,309 breweries.

– Fifty-two first-time entering breweries won awards.

– Top three states by ratio of medals to entries by state:
* New Jersey: 19% with 16 entries and three medals
* Alaska: 13% with 16 entries and two medals—tied with federal district Washington, D.C.: 13% with 8 entries and one medal
* New Mexico: 10% with 84 entries and eight medals

Style Categories
Since 2002, the most-entered category has been American-Style India Pale Ale (IPA), which saw 279 entries in 2014.
The top five entered categories were:
1. American-Style India Pale Ale (279 entries)
2. Herb and Spice Beer (150 entries)
3. American-Style Pale Ale (145 entries)
4. American-Style Amber/Red Ale (140 entries)
5. Imperial India Pale Ale (135 entries)

More numbers:
– 710 breweries in the festival hall
– More than 3,500 beers served at the festival
– 49,000 attendees
– More than 3,200 volunteers
– 222 judges from 10 countries
– Average number of competition beers entered in each category: 61.2 (excludes Pro-Am beers)

Oasis Beverages, a Russian food and beverage company owned by Eugene Kashper, announced it has entered into an agreement to acquire Pabst Brewing Company. TSG Consumer Partners, an investor in growth-oriented consumer brands, will acquire a minority stake in Pabst as part of the transaction.

“Pabst Blue Ribbon is the quintessential American brand – it represents individualism, egalitarianism, and freedom of expression – all the things that make this country great,” Kashper said for a press release. “The opportunity to work with the company’s treasure trove of iconic brands, some of which I started my career selling, is a dream come true. It will be an honor to work with Pabst’s dedicated employees and partner distributors as we continue to build the business. We intend to invest meaningfully in the organization, to continue strong marketing support for PBC’s unique brands, and to drive new product innovations and renovations, such as the recent launch of Ballantine IPA.”

Kashper will serve as the CEO of PBC and the company’s headquarters will remain in Los Angeles, California.

Brian Krumrei, managing director at TSG, said “Pabst has a strong portfolio of authentic American brands including Pabst Blue Ribbon, Rainier, Lone Star, Old Style, Schlitz and National Bohemian, among others. We’re excited about the partnership with Eugene and the outlook for Pabst going forward.”

Dean Metropoulos announced in March he was seeking a new owner for Pabst, and hoped to sell it for between $500 million and $1 billion, according to some estimates. Terms of the transaction were not announced.

Pabst was founded in Milwaukee in 1844 by Jacob Best and later sold to beer tycoon Paul Kalmanovitz. The company was later left in a charitable foundation after Kalmanovitz’s death until a judge declared that it had to be sold. Metropoulos, who works with his sons Daren and Evan, bought Pabst from Kalmanovitz Charitable Foundation in 2010 for $250 million.

Kashper, a graduate of Columbia University, began his career in the beer industry in 1994 with The Stroh Brewery Co. Since then, he has managed brewing companies in Eastern Europe and the former Soviet Union. He founded Oasis Beverages in 2008 and currently serves as chairman, according to a company biography.

Pabst Brewing’s portfolio includes such brands as Pabst Blue Ribbon, Lone Star, Rainier, Ballantine IPA, Schlitz, Old Style, Stroh’s and Old Milwaukee.

It seems like rumors that Anheuser-Busch InBev would manage a takeover of SABMiller started just about the time the ink dried on the deal in which InBev bought out Anheuser-Busch in 2008. But things have heated up of late, with new rumors everywhere.

The Wall Street Journal, and now others report that AB InBev has been talking with banks about financing a megadeal that could coast $122 billion. That would be considerably more than the $52 billion it cost InBev to acquire A-B.

AB InBev had a nearly 20% share of the global beer market in 2013, while SABMiller had 9.6% share and and Heineken 9.3%.

The Journal reported that although a tie-up between the world’s two biggest brewers would put control of nearly one-third of global beer supply with one company, analysts say antitrust issues aren’t insurmountable. AB InBev would likely have to sell SABMiller’s stakes in two joint ventures, MillerCoors in the U.S. and CR Snow in China. Until those matter are sorted out making lists of which brands the new brewing giant would control is pure conjecture.

AB InBev has a history of reshaping the beer industry with large-scale acquisitions. In 2004, Brazil’s AmBev and Belgium’s Interbrew merged to create the global No. 1 brewer by volume. Four years later, the new company bought Anheuser-Busch and became AB InBev. The AB InBev management team trimmed billions of dollars off those brewers’ annual operating costs, helping to pay off the large debt that AB InBev took on to finance the deals.