Last Call: BA Outlines Safety Guidelines for CBC; FX Matt Invests $35M to Modernize Facility, Sold 20% Stake to Brooklyn Brewery

BA Outlines Safety Guidelines for CBC, Registration Opens May 4

Registration for the Brewers Association’s (BA) annual Craft Brewers Conference (CBC) and BrewExpo America opens Tuesday, May 4, the trade group announced this week.

“We are 100% committed to creating a conference and tradeshow experience that prioritizes the health and well-being of all in attendance,” the BA wrote in an email.

CBC is scheduled for September 9-12 in Denver, pending the feasibility of large-scale, in-person events per health and safety protocols at that time. The BA announced its postponement from late March in San Diego in January.

Conference capacity will be restricted to around 6,000-7,000 attendees, so the BA advised registering early. New this year to accommodate for distancing and contract tracing, attendees are required to register for educational seminars, workshops and the keynote address in advance.

Upon arriving at the Colorado Convention Center each day of the conference, attendees will be required to complete a daily self-assessment on their cell phones. The conference center is “a five-star certified venue with stringent protocols,” and all hotels within the reserved block have implemented protocols as suggested by the World Health Organization and the Centers for Disease Control and Prevention, the BA wrote.

Other health and safety measures include 30-minute breaks between seminars to clean rooms and allow air to circulate. Handshakes and hugs are discouraged, but elbow bumps are welcome in their place.

Attendees will be required to wear two-layer cloth masks, FDA-cleared surgical masks or face shields accompanied by either type of approved masks. Masks with vents, bandanas, buffs, gaiters, face shields without masks and masks worn below the nose are not permitted. Disposable masks will be provided to attendees who need them.

The convention center will have one-way entrances and exits. Consumption of food and beverages will be permitted while seated in designated areas; food will be offered in pre-packaged, single-serve portions as much as possible.

Attendees may cancel their registration 30 days prior to the start of the conference, and have the option of a full refund or the transfer of their registration to CBC 2022, slated to take place May 2-5, 2022 in Minneapolis. The same options will be available if the BA decides to cancel the event.

“Attendees experiencing symptoms of COVID-19 immediately prior to the conference and providing a doctor’s note or a positive COVID-19 test will also be able to cancel their attendance for one of the two options above up until the day before the conference,” the BA wrote.

Early bird pricing is available from May 4-August 9; regular pricing will be in effect August 10-September 3.

F.X. Matt Completes $35M Brewery Upgrade

New York’s F.X. Matt Brewery announced the completion of a 3-year, $34.7 million project to modernize its brewhouse and double its capacity.

“We now have probably the most flexible, state-of-the-art brewhouse in the world, if not the world, the U.S.A., at least for today,” F.X. Matt president Fred Matt said at a press conference earlier this week.

Matt said the investments in the brewery were made possible by the sale of a 20% stake in the business to the Brooklyn Brewery, which has contract produced its beer at F.X. Matt for around 30 years. A Brooklyn Brewery spokesperson confirmed to Brewbound that the company made the investment in 2018.

The investment allowed F.X. Matt to fund the upgrades without going into debt, Matt said.

The project added a “state of the art brewhouse and tank farm” that doubled brewing capacity to between 10 and 12 brews per day, as well as adding fermenting and aging capacity. That capacity is increasingly going toward production of beyond beer offerings such as hard seltzer, ready-to-drink canned cocktails, canned wine and better-for-you offerings.

Three years ago, 85% of F.X. Matt’s business was beer. Last year, it was 60% and this year, and Matt expects it to be 50% traditional beer.

Matt also noted that hard seltzer was first produced at F.X. Matt, when Nick Shields contract produced the first hard seltzer, Spiked Seltzer, at the facility. (Shields later sold Spiked Seltzer to Anheuser-Busch InBev, which transformed the brand into Bon ViV.)

In addition to producing for other companies, F.X. Matt’s Saranac beer brands, soft drinks and Utica Club offerings have created the need to hire more than 25 new workers to a workforce of around 130 employees and around 15 temporary workers. Wages start at around $18 an hour, Matt said.

An $11 million investment will go toward an additional canning line that will double its can capacity and other improvements. Last year, cans made up 70% of F.X. Matt’s packaging mix, compared to just 20% three years ago, Matt said.

Matt said he expects sales to increase more than 100% this year and 50% in 2022.

April 2021 Beer Purchasers’ Index Expands

A year after the National Beer Wholesalers Association’s Beer Purchasers’ Index posted a record low reading of 34 in April 2020, the April 2021 index bounced back with a 79 reading as it cycles the widespread stay-at-home orders and shutdowns that “brought the on-premise beer business to a standstill,” chief economist Lester Jones said in a release.

“Last year at this time, we had the worst beer performance in the history of this index,” he said during the NBWA’s annual Legislative Conference earlier this week. “This time in 2021, everything’s a lot stronger, of course, because we’re benchmarked to a month that was just a disaster for the industry and for the economy overall as things shut down and quarantines and shelter in place orders took effect.”

The NBWA added that the “at risk” inventory — beer in danger of going out of code within the next 30 days — was at a 31, which the NBWA said “continues to remain well below the long-running average as out-of-stocks and supply disruptions continue to impact the industry.”

Jones said this is indicative of entering a new “uncomfortable zone” caused by out-of-stocks, supply shortages, operating with less inventory and other challenges.

Every segment posted year-over-year improvements, and only the cider segment contracted (a reading above 50 indicates expansion, while a reading below 50 denotes contraction). FMB/hard seltzers outpaced every other segment, with a 90 reading (compared to 72 in April 2020).

Other segments in expansion mode included:

  • imports (74 in April 2021 vs. 32 in April 2020);
  • craft beer (64 in April 2021 vs.s 14 in April 2020);
  • premium lights (69 in April 2021 vs. 44 in April 2020)
  • regular domestic (56 in April 2021 vs. 40 in April 2020);
  • below premium (51 in April 2021 vs. 47 in April 2020).

Cider posted a 44 reading, which, while still in contraction, was well above April 2020’s 17 reading.

Surly Beer Hall Hiring Ahead of June 1 Reopening

Five months after shuttering its Beer Hall and laying off staff, Minneapolis’ Surly Brewing Company has begun the process of hiring staff for a June 1 reopening of the location, Eater Twin Cities reported.

The reopening will occur in phases, determined by state-mandated COVID-19 restrictions, the Minneapolis Star Tribune reported. The beer garden will open first for beer service and food trucks providing meal options. Indoor service at the Beer Hall will follow, with the second-floor pizza place and private event center following.

Surly will also replace tipping with a flat 18% service fee, which the company said would enable it to provide full medical, dental, vision, 401(k), paid time off and higher wages to its hospitality staff, the Star Tribune reported.

Surly closed the Beer Hall in November as its hospitality staff was in the process of forming a union, which ultimately fell one vote short of passing. The company said the closure was unrelated to the unionization effort, citing an 82% decline in revenue at the Beer Hall year-over-year due to the pandemic. The company estimated that if it continued operating the beer hall, it would lose around $750,000 over the coming winter.

Although the company isn’t formally recalling laid off workers, it is encouraging them to apply.

3 Halves Brewing Head Brewer Rodney Beagle Dies at Age 37

Rodney Beagle, the head brewer of 3 Halves brewing Company in Liberty, Missouri, died on April 25 at age 37, according to a tribute post to the craft brewery’s Facebook page.

“We lost Rodney Beagle to natural causes. A friend, a brother, a father, and an amazing soul is now watching over us from above,” the brewery wrote. “Rodney’s passion for everything he did was clearly visible all around us, I have known few people over the years with his vision and determination for what they did. It is during these extremely difficult times that we learn the most about ourselves and how to help others, the pain and grief we are all feeling is natural. Please know that we will all heal but never forget.

“Rodney’s legacy will always be evident and always honored at the house he built, 3Halves Brewing Co.”

Beagle started as a homebrewer in 2013 before going pro three years later.

“We’re not in it to get rich,” he said in 2016, as he was starting a beer program at a North Kansas City coffee shop. “We’re in it to drink beer. I can say that I’ll be doing this until the day that I die. I want to make beer because it makes people happy.”

Beagle is survived by two children, Coldin and Kayden Beagle, as well as his father Jim (Sharen) Beagle and mother Dolores Bywaters, and brothers Bradley and Jeffrey, according to an obituary.

A memorial gathering is scheduled from 1-4 p.m. Sunday, May 2, at 3 Halves. The family is accepting donations for his children via Venmo @BeaglePups.

About three-dozen breweries in the Kansas City area are planning to sell mixed 6-packs of beers based on recipes created by Beagle, with all proceeds going to a fund on behalf of Beagle’s children, Feast Magazine reported.