Toppling Goliath expansion through Brew Hub (FL)

Is the Florida production of TG going to cease when the STL location opens?

Are other beers brewed by Brew Hub (i.e. Jai Alai) going be brewed in STL and distributed in Midwest?

 

I really hope they brew in both locations, and Cigar City expands to STL to increase their distro.

 

http://www.usatoday.com/story/money/2015/04/13/toppling-goliath-brewhub-collaborate/25446027/

Reading USA Today is pretty horrifying due to spelling and grammatical errors but there are two interesting points in this article:

"The brewer knows there is a tendency among craft beer lovers to criticize business deals, such as Goliath-size Anheuser-Busch swallowing up craft brewer Goose Island. "There's some people who might dismiss this relationship without seeing it," Lewey says."
- How funny will it be when AB/INBev buys Brew Hub in a few years making it the new Goliath, that also BREWS Toppling Goliath? (This statement is insane speculation, of course.)

"It's not us, it's the consumer that is toppling Goliath, and they are changing the industry," says Schoen, himself a former Anheuser-Busch exec. "Guys like Clark and myself ... all we're doing is trying to stay on top and reach the demand and get the consumer what they are calling for."
- Isn't it heartwarming to know that Business Owners and CEO's only have the consumers best interest in mind?
I find that statement insulting to our collective intelligence.

 

That is your spin on the quote, but it is not what the quote actually says. What it says is that "consumers {are} toppling Goliath"... i.e. it is consumers who are buying the beer, and "all we're doing is trying to stay on top and reach the demand and get the consumer what they are calling for." ... i.e. supply a product the consumer wants. Nowhere does it say anything about "only {having} the consumers best interest in mind." In fact, the stated goals of staying "on top" and getting "the consumer what they are calling for" are pretty much the goals of any business making consumer products.

 

Valid point and my point has my super cynical slant on it, as you mentioned.

But I read his statement/s as Marketing BS... perhaps "masquerading" as being noble is a better way to put it.

 

No argument here! He failed to mention the "and make gobs more money" part!

 

Exactly.

And though it's wild speculation, what would happen if a gigantic Brewing Company like InBev did buy Brew Hub?
Or what happens when Brew Hub produces more than 6 million Barrels per year? Will this lift the stigma of Contract Brewing? (I say that as someone who avoids Contract Brewed Beers consciously.)

This may seem crazy now but if things keep going this way it could very well be a reality at some point.

 

Brew Hub insists they aren't a "contract" brewer, though that is essentially what they are doing. They call themselves a "Partner Brewer", as they give full control of all aspects to the brewery they are brewing beer for, if they should want to. Basically, if a brewery wants to, the partnership allows them to go into a Brew Hub brewery, take control over it and brew their beer on their system and package it they way they want all by themselves. For the sake of TG, it sounds like they are letting Brew Hub themselves handle the brewing of their beer, so in essence, contract brewing for them.

From the Brew Hub website: "Partner Brewing is a process that allows craft brewers to not only brew their beer to exact specifications under the supervision of their own Brewmaster, but also to package and distribute from the Brew Hub brewery and make their beer available for export to international markets. This concept allows craft brewers to expand their distribution without the overhead costs of building a new brewery, storing or transporting product. Partner brewers have full-control of the brewing and packaging process for their own brands to ensure that all specifications are met. In addition to brewing and packaging services, Brew Hub offers craft brewers assistance in sales, marketing and logistics initiatives, as well as legal and government affairs."

 

They can call it what they want. It's contact brewing. Unless the TG brewers fly to Florida/St. Louis every time a batch is made, TG is paying someone else to brew a version of their beer.

 

...And we're back to why Mike left!

 

^ allegedly

 

I get why people are apprehensive about the contract brewers, but as long as the quality of the beer is the same, I'm all for it. When CCB partnered with brew hub I was in the large body of people who questioned it, but reliable access to jai alai (that tastes the same as it always has) and access to more unique CCB brews now that CCB has freed up their own brewing space is a win.

Of course, the whole thing will be disastrous if the quality isn't the same. CCB is very close to brew hub (just a 40ish minute trip down the interstate) and may have more direct involvement in brew hub's jai alai production than TG could have with pseudosue's production. Also, CCB's proximity to BH makes ensuring freshness easier as well as the navigating and addressing of potential brewing problems. TG's distance from BH makes those issues loom larger.

If in the end, we get reliable access to fresh pseudosue that tastes like the pseudosue we know and love, I'll be happy and TG will have a great new revenue stream. If we don't, it will bed a real bad look for TG that will feed some big, negative narratives about TG's priorities and business decisions. A lot is riding on this.

 

I'm really not sure how the freshness thing should be an issue. It's a 24 hour drive from Tampa at most. So that puts delivery 1-2-3 days behind what it currently is. That's not going to kill the beer.

 

Keep in mind that the truck driver bringing that beer up may have to abide by the federal law that only allows a driver to drive 11 hours a day with maditory 8 (or so) shutdown and rest between. If it is 24 hours total for that trip, it won't be 1 or 2 days, but at least 3.

While it won't kill the beer. I seem to remember TG priding themself of delivering super fresh beer. Considering that, they are already 3 days behind and that is absolute best case scenario possibly not factoring another half day or day to can bottle/can it, pack it and load it. Depending on the arrival time of the delivery, TG may not be able to get it out until the next day.

Overall, I am not concerned. Most beer here in MN is beyond 4-5 days old before it hits the shelves. It is what it is, as long as it is good.

 

Good Lord, do you guys chase trucks to get psudoSue?!? All this fretting over 3 days!

And, the idea that the "secret sauce" cannot be replicated in another brewery is also much ado about very little, IMO. Sure, if it is done cavalierly, it won't be the same, but I doubt that will happen. It also may take a batch or two to get the process tuned at Brew Hub.

The real question is how much of the "secret sauce" for TG's best beers remains only in the departed brewer's head? That is an issue whether brewed in Decorah or Lakeland.

 

Having just toured the Brew Hub, I can't see how they will make PS under par from the last batch. Yes, I realize the issues involving scaling recipes, water differences, no Mike Saboe, etc, but I think those will be ironed out before we see the first cans in May. If anything, I think they will make a more consistent product. Jai Alai is a perfect example. Brew Hub has a handful of brewers that left other breweries that can pool their knowledge and experience to get the right product. I was told Orange Blossom brewing had lots of consistency issues and Brew Hub helped with that, as well helping to tweak some of the recipes in a positive manor. I didn't try any Orange Blossom beers, but I've also heard from several Floridians that the beer is now better after utilizing Brew Hub's facility.

 

I think this Mike guy should move to Florida and Brew with Brew Hub, making TG beers.

That would make me laugh WICKED hard!

 

Is TG still going to self distribute? I imagine it going to distributor warehouses instead of the Decorah facility.

 

I thought I heard they would, but maybe not with expanding their area. I am guessing a distributor would probably add more time.