A Gut Check on Culture
Certainly, Hinkley’s attitude toward growing the brand — and even New Belgium’s, with its right-state, right-time approach — is similar to the quality-first ethos that has helped to fuel the craft boom in the first place. But that attitude toward growth also points to another potential challenge, which is that these companies’ cultures — the sense of place and attitude that has helped many of them create legitimate brand personalities — might be tough to export. After all, it’s not just a production facility, it’s an extension of the company.
“In its rawest form, it’s a gut check,” Katechis said. “The decision is not solely based on money even though it is a business decision.”
In the case of Oskar Blues, he said, the new location was as much about regional fit as it was financial.
“We chose Brevard because it is a place I am willing to travel to,” Katechis said. “It would have made more sense to put the brewery in Pennsylvania, but our decisions aren’t always made on what makes the most sense profitwise.”
Similarly, Lagunitas founder Tony Magee announced his own company’s considerable expansion — eventually he expects to be able to brew more than 1 million barrels between his first and second breweries — would take place in his hometown, Chicago.
But aside from any fondness Magee might have for his hometown, there are also highly practical concerns — much of the beer produced there will be ticketed for the East Coast, just like the beer made by Sierra, Oskar Blues, New Belgium and Green Flash. There’s risk, he said, but there’s also opportunity — something that those who remember the last craft beer boom, in the 1990s, should know might not always be there.
“You can’t be in the world without being of the world,” Magee said. “If the world was to change and craft beer suddenly wasn’t as sexy as it is today, my brewery has a long glide path. I am setting myself up for the unknowable stuff.”
Nevertheless, the question of whether it really will be the same brewery — or just another brewery owned by the same company — hangs heavy. Andy Thomas, the president of commercial operations for Craft Brew Alliance (CBA) said the biggest challenge a company faces when managing multiple brewery locations is continuity. CBA – whose brand portfolio includes Kona, Redhook and Widmer – operates four production breweries, in New Hampshire, Oregon, Washington, and Hawaii.
“We struggle with it,” he said. “A large domestic brewer can be in a lot of different places and have the resources to remain the same in those places. But a smaller brewer has to work much harder to make sure that the brewing culture and the company culture stay the same.”
That’s a risk, but it’s ultimately one that lies with the company owners, and as demand grows there are likely to be many more making the same decision. As to any doubters, Hinkley said, “I like to think that we conduct our business in a smart way. I’d like to think that this is the next step for us and we will prove that through our actions.”
Editor’s Note: This article will appear in the October issue of BevNET Magazine