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Showing posts with label Cigar City. Show all posts
Showing posts with label Cigar City. Show all posts

Monday, March 14, 2016

Consolidating Continues Apace -or- Mind Your SKUs

The indefatigable Chris Funari reports this morning that Cigar City has gone the way of private equity.
Cigar City, a leading independent brewery based in Tampa, Fla., has agreed to sell controlling interest to Boston-based private equity firm Fireman Capital Partners, which already owns majority stakes in Oskar Blues, Perrin Brewing and the Utah Brewers Cooperative outfit that includes the Wasatch and Squatters brands.
Together, the five craft breweries make up what the firm calls United Craft Brews LLC., a separate holding company and special purpose fund set up specifically for craft brewery acquisitions.... Collectively, all five companies produced more than 320,000 barrels in 2015 and ranked as a top-15 craft producer. In addition to its presence in Utah, the group has beachheads in the major craft markets of Colorado, North Carolina, Michigan and Texas.
The whole article is worth a read--though at this very late date, there's not a lot to add. I did find it to be satisfyingly congruent with another bit of reportage that came out today from Jason Notte. (It's listed as "opinion," but it's more heavily reported than anything I ever do.) In that piece, Notte describes the glut of SKUs and the potential challenges they pose. (An SKU or "stock keeping unit," is a product's identifier on store shelves; for example, Deschutes might have five SKUs at a grocery store for Mirror Pond, Black Butte Porter, Obsidian Stout, Fresh Squeezed IPA, and "seasonal." That seasonal SKU would rotate throughout the year, so you'd see eight Deschutes products at that grocery store over the year--even though there are just five SKUs.)
Bump Williams Consulting has made a living providing analytics to the beer, wine and spirits industries since 2008. In that time, it’s watched the number of beer SKUs rise from 4,843 to 11,833. Craft beer SKUs alone have soared from 2,274 in 2008 to a whopping 7,400 last year, more than tripling the amount of products that the industry sent into the marketplace.
All of that variety is great for consumers, but it acts as a spur to larger companies who want prominent placement so they can cut through the chaos and get a sizable chunk of the whole. There are a number of players now grabbing for that market, and they know there's not room for very many winners. More Notte:
According to data from IRI, a Chicago-based market research firm, 48.85% of all craft beer sales came from the top 10 brands alone: Samuel Adams, Sierra Nevada, New Belgium, Shiner, Lagunitas, Small Town (Not Your Father’s brands), Deschutes, Stone, Goose Island and Bells. A whopping 62% come from the top 20. 
The reason there's so much consolidation happening right now is because each passing week makes it harder to enter that top high-selling tier. Gaining national distribution is hugely expensive, and hanging onto it will require substantial funds. Small brands have the appeal and market experience, and big beer companies have the money. With ABI money, Goose Island managed to push their 20-year-old IPA into the country's top five. That's what this combination can do for brands. But, if you're a regional brand selling 50,000 barrels, the opportunity to grow 20x and become a national player is starting to sunset. And big beer knows it only needs a few horses to ride, so the scramble is on.

Wednesday, August 24, 2011

Reviews: Red Rising, Westvleteren 12

One thing you have to say about the beer bloggers conference: insanely good beer. At every moment, in and out of sessions, someone was handing you a beer. Things got rolling in the first half hour, when Angelo started waving a bottle around in the universal, "what some?" gesture. We were at the back of the room in a scene that recalled my school days, sniggering and whispering and generally goofing off. He might have been proffering a Budweiser, but I was happy to thrust my glass forward. By way of communicating what the chestnut beer in my glass was, he handed over the cap: Westvleteren 12. And we're off.

I'm not going to review every beer I tried over the weekend (and maybe I shouldn't be reviewing beers at all--the general consensus among bloggers held that reviews are mostly boring) but a few can't be missed. Here they are.

Westvleteren 12
This is easily the most coveted beer in the geek-o-sphere. In order to secure a bottle you must travel to the abbey of Sint Sixtus in Westvleteren, Belgium (or get one from someone who did). The brothers don't distribute. So perhaps it's the rarity or maybe the beatific setting, but Westy 12 has this reputation: ambrosia on earth, god's tears, holy water. (Behold the love.) Styled a quad in the literature, I was shocked to see that it was brown. This was not the only surprise. Angelo said he thought the bottle (secured via eBay) was three years old, and it definitely exhibited the qualities of age. But beyond that, it was very much like an English barleywine. It has a bread pudding aroma with caramel and alcohol. The palate is deep and figgy, with notes of caramel and cola, boozy in the fashion of Thai Mekong whiskey. I wouldn't call it especially complex, though. There was little in the way of yeast-contributed complexity. Perhaps as a Westy unbeliever I am not a reliable witness; for me the beer was not made blood. I wouldn't turn down another pour, though, don't get me wrong. Call it a solid B.
Link
Deschutes The Stoic
Speaking of quads, we've got a new one in town. Last week, Deschutes released a beer that's been in the works awhile, an 11% quad aged in rye and pinot barrels, spiked with sugar and pomegranate molasses, and aged and refermented four times. ("Stoic" is an interesting choice. A Greek philosophy holding that man should be free from passion, unmoved by joy or grief. As one observer said, 'pomegranate molasses--what's stoic about that?") My main reaction is that it seems a bit green. It's still sweet and a bit rummy. There's a mild phenolic note. It is exceedingly smooth, though, and there are no higher alcohols to make it sharp or prickly--which does make it an easy-sippin' 11% beer. I would love to see it grow past this youthful stage and into a more mature...stoic one. I'll get back to you in a year.

Hopworks Galactic Red
It may be that Hopworks will transition slowly into the Imperial brewery. They seem to really hit their stride at about 9% alcohol. I missed Galactic Red when it orbited earth last year, so this was my first opportunity. With big beers, the key is to create clean, clear flavors that don't fuzz out like sounds on an overmatched speaker. It's easy to add intensity; hard to produce clean, bell-like notes. Galactic Red nails it. It's got a candy-like malt base that offers just enough of a foundation for the hop assault, which is vivid, varied, and violent. In a kaleidoscope of hop flavors, you pass from earthy to spicy to piney to citrusy. Like a mushroom trip for hop flavors. They are distinct, though, and a joy to behold--in that eyelids-pasted-back kind of way. An A- any day of the week, and possibly an A if I'm feeling good.

Cigar City Tocobaga Red Ale
One of the hottest breweries in the country is Cigar City, from Tampa, Florida. They are brewing in the classic "International extreme" mode--a sure way to attract geek attention. (Though their list of beers is longer than your arm, so who knows what lies at the heart of their vision.) I approached the beer with a hearty skepticism. Sure, Floridians think it's good beer, but what do Floridians know? Turns out: something. This was a very nice beer, and more to the point, something fresh and new (Alan might take note). The red was, like Hopworks', based on a candyish base, maybe just a touch of caramel. The hopping though, was unique. It was very long and woody, resinous, and cedary. "Woody" doesn't always mean spicy, but here it does. Spicy-oily. And for those who think things must be tame in the South, this beer is a nice refutation. It was very big and very bold. Perhaps just a notch behind Hopworks, but what the hell, call it an A-.

Double Mountain Black Blood
Just a word or two on the robust porter produced from the cherries we picked on Kriek Kamp. Charlie Devereux brought up a growler for the conference, and I got to sample a splash. The main thing is that it was an intense, slightly disturbing color. "Black blood" was right on the money. My palate was a bit shattered when I tried it, but I recall thinking of desert--chocolate, cherry, and a twist of tart. You probably won't have a chance to try it unless you're passing through Hood River in the near future. Still, it was a cool beer.

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Apologies again to Matt Wiater, whose photo I've stolen. Matt was sitting next to me when we tried the Westvleteren, and his photography is always sumptuous (whereas mine is blurry and poorly-composed).