Craft Brew Cast Blog

By Melissa Allison

Seattle Times business reporter

MIKE SIEGEL / THE SEATTLE TIMES

Scott Barnum, CEO of Pyramid Breweries, expects to leave after Vermont-based Magic Hat Brewing Co. completes its purchase of the Seattle beer maker, expected before September.

When R. Martin Kelly was chief executive of Seattle’s Pyramid Breweries a few years ago, he learned how cumbersome it is for a small company to be publicly traded.

Lawyers, accountants, paperwork and fees chew up time and money that could be spent on something more tangible, like making beer.

Kelly now runs a Vermont brewery, and on Tuesday it unveiled plans to acquire Pyramid for $2.75 a share, 56 percent above the previous day’s closing price.

Counting the Vermont brewer’s assumption of $10 million in Pyramid debt, the deal is valued at $35 million, according to executives and securities filings.

“They were spending a lot of money on being public that they couldn’t spend on being a brewery,” said Kelly, who left Pyramid in 2004 and is CEO of the privately owned Magic Hat Brewing Co. & Performing Arts Center in South Burlington, Vermont.

Pyramid CEO Scott Barnum said Pyramid spends almost $1 million annually complying with public company rules and regulations.

“This removes the shackles of being a public company and provides more opportunities for employees in the long run, being part of a bigger, more financially sound entity,” Barnum said.

Pyramid lost $1.8 million in the fourth quarter and $488,000 during 2007. It sold the Thomas Kemper Soda brand last year but continues to make soda for the new owner.

Earlier this month, Pyramid agreed to pay $1.3 million to settle a lawsuit alleging employees at three of its alehouse restaurants were denied adequate opportunity for meal and rest breaks.

Magic Hat sells beer in the East, while Pyramid’s sales are focused mostly in 13 Western states. At the moment, said Kelly, “we have no plans to change the way that business or our business operates.”

Barnum will leave after the deal closes, which is expected before Aug. 31. He said he expects Pyramid’s 500 other employees to keep their jobs.

Kelly was more tentative, saying Magic Hat needs to finish its “due diligence” — a process in which financial professionals go over the planned acquisition in detail — before he will know how the combined company might save money.

That process also will help decide whether the breweries begin producing each other’s beer, a move that would make Magic Hat beers available on the West Coast.

Pyramid is bigger than Magic Hat, producing about 200,000 barrels last year. It has large breweries in Portland and Berkeley, Calif., and operates alehouse restaurants there and in Seattle, Sacramento and Walnut Creek, Calif.

Magic Hat, known for quirky beer names like #9 and its annual Mardi Gras parade in Burlington, produced 102,000 barrels of beer last year. It was founded in 1994 and is still partly owned by co-founder Alan Newman. Among other owners is Basso Capital Management in Connecticut.

Magic Hat’s full name to the contrary, it does not have a performing arts center, Kelly said. The name is “part of our theatrical, irreverent take on the world,” which includes sponsoring performing artists.

News of the deal pushed Pyramid stock up 76 cents to close at $2.52 Tuesday. It has traded between $1.50 and $4.66 during the past year.

After Magic Hat completes its due diligence and the companies reach a definitive agreement, the deal must be approved by regulators and Pyramid shareholders.

Pyramid’s sale comes at a tumultuous time for the beer industry, with many small breweries struggling with the high cost of barley and hops, and worrying that consumers will not pony up when their pricey beer becomes pricier.

Those factors helped spur the merger this year of Woodinville-based Redhook Ale Brewery with Widmer Brothers Brewing in Portland and, on a much larger scale, the combination of Miller Brewing with Molson Coors.

Although Anheuser-Busch, Miller and Molson Coors collectively own a whopping 80 percent of the U.S. beer market, smaller breweries have carved into their market share over the past decade or so, said Ann Gilpin, an analyst at investment-research firm Morningstar.

Big beer companies have been selective in buying craft brewers, she said. “While they certainly have the financial strength to do it, they thought prices were too rich.”

If the Pyramid and Redhook deals are an indication, smaller breweries might be more willing to bargain now.

“I fully expect to see more [deals],” Gilpin said. “Whether it’s more consolidation within craft beer like Pyramid and Magic Hat, or big beer buying craft brewers, it could go either direction.”

Related

• Magic Hat Brewing Co.
• Pyramid Breweries

Pyramid Breweries

Founded: 1984 as Hart Brewing in Kalama, Cowlitz County

Ownership: Publicly traded since 1995.

Volume: About 200,000 barrels in 2007.

Employees: About 500, including 350 at five alehouses.

Flagship beer: Pyramid Hefeweizen, which accounts for more than half of total beer shipments.

Distribution: 38 states; about 75 percent of the beer is distributed in 13 Western states.

Magic Hat Brewing Co. & Performing Arts Center

Founded: 1994.

Ownership: Privately owned by co-founder Alan Newman, Basso Capital Management in Connecticut, and others.

Volume: 102,000 barrels in 2007.

Employees: About 125.

Flagship beer: #9, which it bills as a “not quite pale ale.”

Distribution: 20 states from Maine to Georgia and as far west as Illinois.

Melissa Allison: 206-464-3312 or mallison@seattletimes.com

Copyright © 2008 The Seattle Times Company

This press release just recieve: 

TO FEATURE BEER TASTINGS, HOMEBREW CONTEST, SILENT AUCTION, LIVE MUSIC

Eugene, Ore. - The Sasquatch Brew Fest, scheduled for June 7, 2008 at Broadway Plaza, started as a tribute to the passing of a friend, active community member, and professional brewer and evolved into one of the premier beer festivals in the Pacific Northwest.

This year’s Sasquatch Brew Fest will feature another range of beer-soaked activities, including a silent auction, a beer dinner, a homebrew contest and a golf Brew Am.  Located outdoors on the Broadway Plaza in Eugene from noon to 11 p.m.,  the beer festival will showcase the vibrant Pacific Northwest brewing industry by offering an opportunity to taste unique craft beers.

Tickets will be available when the festival gates open at 12 p.m. for $10. Entrance includes a commemorative glass and two taste tickets.  Additional taste tickets will be available for purchase throughout the festival grounds.

The Sasquatch Brew Fest is dedicated to the memory of Glen Hay Falconer, a well known and leading Pacific Northwest professional brewer.  Falconer was the skilled and popular head brewer at the Wild Duck Brewery in Eugene until his untimely passing in 2002.

To honor his memory, his friends and family created the Sasquatch Brew Fest, a unique beer tasting opportunity because the beers are selected by the head brewer of each participating brewery, with some brewers crafting a distinctive recipe just for the festival.

Each year, the festival evolves.

This year, the festival will be organized by the Northwest Legends Foundation, formed at the request of the Glen Hay Falconer Foundation, an organization that used to run the festival but now will manage the distribution of the brewing scholarships funded by the event.

Through local management, Northwest Legends will continue the Sasquatch Brew Fest, striving to ensure through active funding and support the overarching enjoyment of craft beers, educational and community spirit envisioned by all who knew Falconer, according to board member Jamie Floyd.

“The Northwest Legends Foundation will invoke the spirit of the legendary Sasquatch and the memory of Glen Falconer, known as one of the most talented and popular brewers in Eugene,” said board member John Burgess.

“By furthering the art of home brewing through the support of the people who brew craft-brewed beer in their home, and by continuing the financial support of the brewing scholarships and the good works of the Glen Hay Falconer Foundation, the Sasquatch Brew Fest will be locally managed but will remain true to the original mission,” Burgess said.

Sasquatch was Falconer’s nickname.

A large portion of the  proceeds will benefit the Glen Hay Falconer Foundation, a non-profit agency dedicated to furthering professional brewing education. Additional proceeds will be donated to local non-profit agencies.

The Third Annual Sasquatch Homebrew Contest will be administered by the Cascade Brewers Society, a local homebrew club.  Sanctioned by the American Homebrewers Association and the Beer Judge Certification Program, the contest is open to homebrewers currently residing in Washington, Oregon, and Northern California.

Prizes will be awarded at the Sasquatch Brew Fest to the top three finishers in the following BJCP style categories: English Pale Ale / Best Bitter / ESB; American Ale / American Pale Ale / American Amber; India Pale Ale / American IPA / Imperial IPA; and Strong Ale / Old Ale / American Barleywine.

The Bier Stein Bottleshop and Pub will cold store all entries. Rogue Ales Eugene City Brewery will host the judging.  For more information about style guidelines and admission procedures, please visit http://www.sasquatchbrewfest.org/ .

The Glen Hay Falconer Foundation Brewing awards a full tuition scholarship each year to apprentice brewers to attend the celebrated Siebel Institute Chicago Campus Concise Course in Brewing Technology.

The course features a two week intensive program that covers every topic critical to successful brewery operations. Designed for brewing professionals, the program is designed to provide a wider knowledge of professional brewing standards and procedures in order to advance each applicant’s continuing brewing career. The program is also designed for individuals planning to enter the brewing industry.

The Scholarship is open to professional brewers and home brewers from the Pacific Northwest and Northern California regions.  The selection committee includes brewers and professionals related to the brewing industry. 

Organic brewers from around the world celebrate sustainability June 27-29 in Portland, Oregon at the  North American Organic Brewers Festival (NAOBF). The 2007 festival featured 50 organic ales and lagers, drew 7000 attendees and raised over $2000 for local charities. The largest organic beer festival in the world, the NAOBF was first held in 2003 in Gresham, Oregon, and has been an annual event since 2006. In addition to organic beer the festival features live music, local and organic food, and sustainability-focused vendors.  

WHY ORGANIC BEER?

Until the 19^th century all beer was organic, but chemical fertilizers and pesticides are now the norm in barley and hop production. The Pinkus-Mueller brewery, in Muenster, Germany (sample Pinkus beers at the NAOBF) brewed the world’s first modern organic beer in 1980, as the brewmaster was concerned with the declining quality of malting barley grown with chemical fertilizers. Organic beer made its debut in the US in the mid 1990s’ and production has grown by leaps and bounds since then. Organic beer is now a more than 20 million dollar market in the US. The festival celebrates the diversity of styles of organic beers from pilsners, pale ales, porters, and ambers, to stouts, India Pale Ales, and a plethora of Belgian styles.

CHARITY

A benefit for Oregon Food Bank, Leukemia Lymphoma Society, and Oregon Tilth, the NAOBF celebrates numerous facets of sustainability. The chemical pesticides and fertilizers used in conventional agriculture are one of the leading causes of cancer. The Leukemia Lymphoma Society, helps those suffering from leukemia, lymphoma, Hodgkin’s disease and myeloma. The Oregon Food Bank feeds the hungry, and Oregon Tilth promotes sustainable agriculture and is one of the most stringent organic certification bodies in the nation.

This year the festival also features a special guest beer, the 2008 Sasquatch Legacy brew, the proceeds from which will benefit the Glen Hay Falconer Memorial Foundation, which maintains a Brewing Scholarship to the Siebel Institute of Technology brewing school. Eugene brewer Glen Hay Falconer was an organic beer pioneer while at the Wild Duck Brewery and Restaurant in Eugene. This years Sasquatch Legacy Project is the Imperial Vienna, brewed by 2007 scholarship recipients Corey Blodgett and Jacob Leonard using organic malt.

SUSTAINBLE PRACTISES

In the interest of sustainability the NAOBF is working to reduce its waste stream, and minimize its carbon footprint. This year the NAOBF has switched from plastic to cornstarch tasting glasses, which are 100% compostable. Conventional plastics not only take up landfill space, but have been linked to cancer, and are made from foreign petroleum. The cornstarch cups are made from domestically grown corn by Colorado-based Eco-Products, .a zero-waste, solar-powered company. Onsite compost receptacles will be provided at the event for the cups and food waste. All food vendors are required to use compostable flatware and plates.  A Biodiesel-fueled generator provides the festival’s energy needs, and attendees are encouraged to take MAX light-rail to the event. Vendors at the NAOBF promote sustainable living through their wares and services

EVENT DETAILS

Overlook Park N. Interstate and Fremont Streets, Portland, Oregon Friday June 27 3pm-9pm, Saturday 12-9pm, Sunday 12-5pm. Admission is free, a tasting glass is $5, and 4oz samples of beer are $1. A $1 discount will be given for a valid Tri-met transfer OR three cans of food for the Oregon Food Bank. The event is all-ages. Service animals only. There is no onsite parking, attendees are encouraged to take public transit. (MAX Yellow Line to Overlook Park stop). Bicycle parking will be provided.

Links:

Technorati Tags: beer, festival, organic, scholarship, tilth, biodiesel, portland, oregon, brewer, international

This just in from the Beer Institute:

Beer Institute Celebrates

75 Years of Post-Prohibition Brewing

Recognizes Economic Contributions of Industry Since 1933

WASHINGTON, DC – Today, America’s brewers and beer importers will begin celebrating the 75^th anniversary of the first legal beer deliveries in the United States following Prohibition.  For millions of workers and consumers, America’s beer industry has grown exponentially into an economic force, creating and supporting millions of jobs and contributing billions of dollars to federal, state, and local economies annually. The repeal of Prohibition also ushered in a new era of responsibility in how alcohol is regulated and consumed.

“The last 75 years powerfully demonstrate that a healthy beer industry strengthens our overall economy,” said Beer Institute President Jeff Becker. “Looking forward, fair tax policies are essential to ensuring that brewers and beer importers can continue supporting the more than 1.7 million jobs we’ve created and $190 billion provided annually to the economy.”

Today, the beer industry is burdened with an excessively high and regressive beer tax that unfairly hurts manufacturing employees and lower and middle-income consumers hardest. Since the federal beer tax doubled in 1991, approximately 60,000 Americans lost their jobs in brewing, distributing, retailing, and related industries. Rolling back the beer tax increase would provide a much-needed shot in the arm to the nation’s struggling economy and help stimulate job growth.

In addition to toasting the numerous economic benefits beer has delivered for the last three quarters of a century, brewers, beer importers, and suppliers are also using April 7 to celebrate the rich traditions and cultural heritage of beer in America. Just a few examples of the celebrations going on across the country:

●    Anheuser-Busch’s flagship brand, Budweiser, will celebrate the milestone with a variety of events, including a re-broadcast of August A. Busch Jr.’s 1933 national radio address, an appearance by the Budweiser Clydesdales and a new historical exhibit on Prohibition at Anheuser-Busch’s St. Louis tour center.

●    Miller Brewing Company will play host to Milwaukee Mayor Tom Barrett, who will present an official Proclamation declaring April 7 “Beer Day” throughout the entire City of Milwaukee. Barrett and Miller Brewing Company will call for Milwaukeeans to make a citywide beer toast celebrating the economic and entrepreneurial success the beer industry created in the city.

“From coast to coast, our members stand united as we celebrate this important milestone,” added Becker. “Together, we have built a strong record of growth and responsible community involvement, and that is something in which we can all take great pride.”

Brewers and beer importers spend millions of dollars annually on numerous civic and community programs. These include alcohol abuse prevention efforts, corporate philanthropy, and environmental initiatives.  For more information on these programs and the industry’s economic contributions, visit www.beerservesamerica.com.

Although the national repeal of Prohibition did not become finalized until December 5, 1933, brewers and beer importers celebrate April 7 as a day of great significance in the industry’s history. On April 7, 1933, the Cullen-Harrison Act took effect, which legalized the first sales of beer. To mark the occasion, President Franklin D. Roosevelt famously received shipments of beer at the White House from many brewers and a team of Budweiser Clydesdales delivered several cases at the U.S. Capitol.

# # #

The Beer Institute, established in 1986, is the national trade association for the brewing industry, representing both large and small brewers, as well as importers and industry suppliers. The Institute is committed to the development of sound public policy and to the values of civic duty and personal responsibility: www.beerinstitute.org.

From Roots’ MySpace blog:

Join us at Roots Organic Brewing Company on April 5, 2008 for the 2nd Annual Portland’s Cheers to Belgian Beers Festival. This festival was launched in the spring of 2007 and was held at Rock Bottom Brewery in it’s first year. Ten local Portland Breweries were challenged to create their own Belgian Style Beer Recipe with the same yeast strain. Proceeds generated from the festival were donated to charity.

Festival goers voted for their favorite Belgian Beer, and Roots Brewery won for its Eastside Abbey Belgian Ale. Therefore, the Master Brewers at Roots have selected the yeast strain for this year’s challenge, and will host the festival at their pub at 1520 SE 7th Avenue in Portland on Saturday April 5th, 2008. You will be able to sip delicious Belgian Ales from fancy commemorative glassware and feel good about it at the same time. All proceeds benefit the Oregon chapter of the Leukemia Lymphoma Society
Yeast Strain 2008: Ardennes/ La Chouffe

Participating Breweries:

Roots
Alameda Brewhouse
Rock Bottom Brewery
Hopworks Urban Brewery
New Old Lompoc
Lucky Lab Brewery
Amnesia Brewing
Philadelphia’s
BJ’s
McMenamin’s Crystal Brewery and John Barleycorn’s (collaboration)
Laurelwood
McMenamin’s CPR
Hair of the Dog
Raccoon Lodge

LINKS:
Roots Organic Brewing Co.

Root’s myspace page

Technorati Tags: belgian, brews, beer, festival, Leukemia, organics, festival, Portland, Oregon, brewer

‘

This just in from the Brewers Association and Beer Institute: 

 75th Anniversary of Legal Beer in America

BOULDER, CO - March 12, 2008 - On April 7th, brewers, beer importers, distributors and beer lovers across America will celebrate 75 years of beer that has been flowing legally since the drought of Prohibition. The date will be marked with specially brewed commemorative beers, brewery tours and events at many of America’s 1,400 plus breweries.

Historians note that Prohibition officially ended on December 5, 1933, with the ratification of the 21st Amendment. But earlier that year, newly-elected President Franklin D. Roosevelt took steps to fulfill his campaign promise to end the national ban on alcohol. He spurred Congress to modify the Volstead Act to allow the sale of 3.2 percent beer in advance of Prohibition’s ratification. Thus on April 7, 1933, Roosevelt himself received newly legalized beer at the White House to toast what was the beginning of the end for Prohibition. In the 24-hours that followed, more than 1.5 million gallons of beer flowed as Americans celebrated.

“April 7th is a day to recognize the past 75 years of beer and the beer community’s contribution to American’s quality of life. The explosion of creativity and innovation by those who make beer is an American success story,” said Charlie Papazian, President of the Brewers Association.

“As we celebrate this significant day in the history of beer, we also recognize the incredible contributions beer has made to our nation and the economy over the last 75 years,” added Jeff Becker, President of the Beer Institute. “Today, our industry contributes nearly $190 billion annually to the U.S. economy and provides more than 1.7 million jobs to our nation’s workforce.”

“April 7th is the perfect time to highlight the entrepreneurial spirit and economic contributions America’s beer industry brings to our country. Americans now have access to nearly 13,000 labels of beer – within the safest alcohol distribution system in the world - because of the state-based regulatory system that was established 75 years ago,” added Craig Purser, president of the National Beer Wholesalers Association (NBWA).

To mark this special anniversary, breweries across the country will hold ‘75 Years of Beer’ events for all consumers, employees, and their families. Numerous breweries are planning 75th anniversary celebrations including: dedicated festivals, special cask pre-prohibition beers, viewing parties of the historical documentary “The American Brew” – a film commissioned by “Here’s To Beer”, brewery tours, scheduled toasts and more.

For more information and a list of brewery celebrations by state please visit: http://www.75yearsofbeer.org/

 Show links:

Brewers Association

Beer Institute

National Beer Wholesalers Association (NBWA).

Here’s To Beer

The American Brew Video

Craft Brew Cast home page

Craft Brew Cast on myspace

Technorati Tags: beer, microbrew, american, repeal, brewers, podcast, prohibition

Pioneer Press

Article Last Updated: 03/07/2008 04:12:31 PM CST

If you’re plan to drink on St. Patrick’s Day, Miller Brewing Co. will give you a free ride home.

The company said today the Miller Free Rides program will be available in the Twin Cities on March 17. It’s the program’s 11th year.

“We encourage everyone who will be out celebrating the holiday to consider leaving their cars at home and riding the bus or train,” Brian Lamb, Metro Transit’s general manager said in a statement. “Last year, more than 86,000 free rides were given on St. Patrick’s Day.”

The program offers free bus and train rides on all Metro Transit routes starting at 6 p.m. on March 17 until the last scheduled trip.

Free rides will also be offered on Metropolitan Council Regional routes and on buses operated by Minnesota Valley Transit Authority and Plymouth Metrolink.

See www.millerfreerides.com or call 800-FREE-RIDES (800-373-3743) for more information.

Rogue has taken its flagship ale Dead Guy to the next level with a Double Dead Guy.

Scheduled to being released as the latest of John’s Locker Stock and on the books for release in Rogue’s trademark Ceramic 750 ml swingtop bottles later this year.

Here’s what Master Brewer John Maier says about his latest creation:

“D2 is the new reincarnation of our classic Dead Guy Ale. It is mahogany in color. It’s full bodied and has an amazing mid palate richness of toffee and caramel. The hops are evident also, with just enough to keep the maltiness in check. The finish lasts > 15 secs. D2 is Double the fun! Enjoy!

Prost! John C. Maier

Recieved the following press release from Rogue Wireless : 

Dead Guy

Appearing in Basements & Garages Nationwide!
  

NEWPORT, OR., February 20, 2008 (Rogue Wire Service): Brewcraft USA, a nationwide distributor of brewing equipment and ingredients began distributing a Rogue Dead Guy Ale Homebrew kit on January 23, 2008. The Dead Guy kit is the first beer kit for homebrewers that was cooperatively developed and branded by a U.S. craft brewer. The kit has been test brewed by the Cascade Brewers Society and given the official blessing of Rogue Brewmaster John Maier, a long-time member of the Cascade Brewers Society and Lifetime Member of Southern California’s Maltose Falcons.

John Maier began homebrewing in 1981 and went on to win the American Homebrewers Association Homebrewer of the Year Award in 1988. John started brewing for Rogue in 1989 when the Newport Rogue Brewery began in a rented garage.  John created Dead Guy Ale in the mid-90s and has been Rogue’s brewmaster for 20 years.

Rogue Dead Guy Ale has won 25 awards for quality and excellence, including the 2007 Northwest Brew News Reader’s Choice Awards for Best Bock, and a Gold medal from the World Beer Championships.

Dead Guy Homebrew kits include whole Perle and Czech Saaz Hops, Amber, Munich and Crystal Malts, Candi Sugar and English Pale Ale malt extract. Rogue’s proprietary Pacman yeast (although not part of the homebrew kit) will be available at homebrew shops nationwide. Pacman yeast is part of the Very Special Strain (VSS) program developed by Wyeast Laboratories and was the #1 selling VSS product in 2007.

Visit www.brewcraftusa.com for more information.

At Lola’s on Harrison, Downtown Hollywood, Florida

When: February 26^th thru Sunday March 2^nd, 2008
Where: 2032 Harrison Street, Hollywood FL

Notes:Chef Michael Wagner and the staff at Lola’s on Harrison invites you and your pooch to come and dine with us. In honor of your k-9 counterparts we will be offering housemade doggie treats, doggie beer (non-alcoholic), and doggie prizes. Our doggie theme transends into our weekly beer flight sampler which offers great boutique craft brews like Abita Turbodog, Stoudt’s Fat Dog, Seadog Blueberry, and Dogfish Head 90 Minute. The whole event centers around Thursday February 28^th with Chef Wagner’s Four Course Charity Beer Dinner Featuring Craft Beer from Dogfish Head Brewery. The first two dinners were a huge success, and some items made it to our regular menu permanently! 5% of the proceeds will be donated to the Broward County Humane Society. Seating is limited and reservations are required, however walk-ins will be welcome based on availability. To make your reservations, please call 954-927-9851 after 3pm. **Dining with pets is permitted outside only and therefore is weather dependent.

February 28th Dogfish Head Beer Dinner Menu:

Course One
Big Eye Tuna Carpaccio with Mache Lettuce,
Roasted Serrano-Chili-Lime Vinaigrette
PAIRED WITH Dogfish Head 60 Minute IPA

Course Two

Green Peppercorn Crusted Duck Breast with Golden Raisin Potato Pancakes and Red Current Apple Sauce PAIRED WITH Dogfish Head Raison De’tre

Course Three

India Brown Ale Braised Beef Shank with Creamy Grits and Ginger-Orange Gremolata PAIRED WITH Dogfish Head India Brown Ale

Course Four

Fresh Grape Pie topped with Rolled Oats and Brown Sugar Served with Honey Ice Cream PAIRED WITH Dogfish Head Midas Touch

**Dinner is served from 5-10pm Tues, Wed, Thurs, Sun and from 5-11:00pm Fri, Sat, and for all special menu events. Ample free parking is available behind the restaurant. All major credit cards accepted. Please call for catering and private event information (954) 927-9851