AleHeads Podcast

Wanna hear me talk about stuff? I didn’t think so. In any event, if you feel like hearing my opinion on Freetail, beer trading, Texas laws, the craft beer industry and dinosaurs, you can listen here:

http://aleheads.com/2012/02/03/the-aleheads-podcast-scott-metzger-freetail-brewing-co/

Cheers.

What Are You Trying To Say?

Web traffic of this site over the last 5 days. What are you guys trying to say?

My vendors are funny.

This arrived today, unsolicited, from one of my merch Vendors. Thanks Brewery Branding!

No Really Though… I Do Not Like Groupon

For whatever reason, the people at Groupon think that repeatedly sending a different person to call/email me will eventually result in me submitting to their corrosive program that hurts small businesses. I’m tired of responding politely, so here was my latest exchange with the rep assigned to me.

And yes, before you point it out, I’m quite aware of how childish I am.

Click photos to enlarge.

To Mitch’s credit, he tried to stoop to my ridiculously low level and respond with a graph of his own:

Unfortunately I have no clue what this graph is trying to say, or if it says anything at all. I won’t bother responding, because I’m out of graphs in which I can convey “no thank you.”

One Last Word on Dinosaurs and Lawyers

I wanted to say one last thing about Dinosaurs and Lawyers, since messages keep pouring in from numerous channels about “The Letter”. I posted this to BeerAdvocate.com, and hopefully helps explain things a bit.

Warning: this response is likely to be far less entertaining than anything else you could possibly be doing.

First of all, I didn’t think the letter would get shared the way it did. I posted it for kicks on my personal twitter where I don’t have that many followers, because I’m not really that important and/or cool. My friends would agree.

I don’t have anything against Steelhead Brewery, the lawyer in question, or our mail woman who delivered the C&D letter. Actually, I don’t really like our mail woman… she refuses to deliver the mail on Mondays and she always sticks packages into a box where the key doesn’t work, delaying the delivery of said package until I can flag her down to open it for me. But I digress…

Unfortunately, I have way more familiarity with Intellectual Property law than I ever cared for. I’ve been on the receiving end of C&Ds (even one from a brewery that to my knowledge STILL has never produced a single beer), none of which I’ve ever fought because I’ve never cared enough to. I’ve also been on the sending end of one C&D for the brand we are most known for, which we issued AFTER a number of conversations with the brewery in question and before they had ever produced a single drop of the potentially infringing beer.

An important characteristic of trademark law is that trademarks are very costly to protect because IP lawyers are really proud of themselves and charge commensurately. I have one of the nation’s best IP firms representing me, but I hope to never write them another check. My IP lawyer (who isn’t the one who advised me to draw the dinosaur, nor was he ever involved in this situation) is a nice guy, but I’m no Rockefeller or even Jay-Z… I need to save my pennies to make more beer. So even if you “win” a lawsuit, it could cost you tens of thousands of dollars. As small businesses, can we even really call this winning? The money I spent on my IP lawyer the one time we got involved in issuing and C&D and negotiating the actual cessation of the use could and should have been spent on something much more productive in the brewery.

A few clarifications, just because I’m anal like that…

1) Freetail has never made a beer called Hopasaurus Rex. We have a page for Hopasaurus Rex on our webpage, but is it meant to describe a process we occasionally used on IPAs (and actually, we’ve used it on non-IPAs too). Most people don’t know much about Hopasaurus Rex because we haven’t done it a lot and even when we have we haven’t always pointed out we’re doing it. Here is the official description for what we formerly called “Hopasaurus Rex”:

“Once thought to be extinct, the Hopasaurus Rex is occasionally sighted on the outskirts of San Antonio, gobbling up IPAs as they make their way to the taps and instead sending forth a transformed version of hop gloriousness. His belly full of whole leaf northwestern hops, this beast’s mark is often described with terms like pine, citrus and grapefruit. The Hopasaurus does not discriminate in his IPA diet, so long as the IBUs quench his thirst.”

What all that mumbo jumbo really says is: Hopasaurus Rex is an inline “hop filter” of sorts. We stick a 5 gallon corny keg of whole leaf hops between the serving tank and the tap, for some extra hop character. So really Sam and Dogfish Head owe us a C&D letter too. Sam, if you are reading this, I will buy you some beers and let you slug me 10 times in the arm for “borrowing” the idea of Randall.

2) I can’t believe this thread has gone on this long without someone making fun of our webpage. That was a gimme. Anyway, we have a new one coming soon. [Shameless plug!]

3) I’m fortunate to have one of the coolest jobs I can think of – running a brewery. Someone previously mentioned this was kind of childish, and I agree. I’m kind of childish & I like to joke around. I’m lucky that being childish isn’t a (complete) detriment to my job, but it frustrates the hell out of our local Brewers News writer because he can’t tell if my updates are serious or not.

4) [Soapbox Alert] I think a lot of our country’s problems could be solved if people (especially elected officials) would sit down over a beer and interact more with one another instead of immediately resorting to legal options. In an ideal world, disputes like this should be handled as follows:

Brewery A: “Hey, you have a beer the same name as our trademarked beer. Can you stop”
Brewery B: “Sure, sorry about that.”
Brewery A: “Cool, can we get this in writing just so we have a paper trail”
Brewery B: “Sure amigo, let’s meet up at the next GABF or CBC and share a beer”

5) As we approach (and maybe have passed by now) 2,000 operating breweries in the United States, these disputes are inevitable. Especially since there is a finite number of lame hop puns to be used. Sometimes I get sad when I don’t think of them first, but I move on.

I was going to keep this list going, but I’m out of stuff to say. Thanks to everyone in this thread for supporting craft beer!

Hugs not drugs & beers instead of tears,

Scott

PS: Texas rules.

I appreciate everyone’s words of support – but I want to stress that “The Letter” was just me having a little fun. Again, I really do have nothing against the other brewery and I hope it continues to get support from visitors and its local community.

Support your local brewery, no matter where it is!

Scott

Of Dinosaurs and Dealing With Lawyers

Okay, so I don’t have a whole lot to say on this topic, but I did want to address it.

Yes, I received a Cease and Desist (C&D) letter from an attorney representing another brewery over the name HOPASAURUS REX. Yes, I responded to that C&D like a child. Yes, I also had a lot of fun in acting like a child. Yes, I did include a drawing of a dinosaur waiving white flags in his little T-Rex arms. Yes, I had a lot of fun doing it.

But I didn’t do it with the intention of “going viral” or getting publicity for my brewery. I did it because that’s the kind of thing I do. I have no ill will towards the other brewery or the lawyer.

At the end of the day, I hope the main message are:

1) A lot can be solved if we just communicate with one another directly instead of always resorting to lawyers as the first option and

2) Please continue to support your local craft brewery, wherever you are!

That is all!

Scott

PS: A lot of you are asking about T-Rex with White Flags t-shirts… hmmmm… maybe. Lemme think about it.

Bottling Line Update: Hurry Up & Wait

What the hell is going on with this bottling line at Freetail? Back on December 13, this photo was posted to our Facebook, announcing the physical arrival of our bottling line.

And yet… no Freetail bottles grace the shelves of our new merchandiser. Instead you can find bottles from great craft breweries from around the country, but that wasn’t really the point, was it?

The biggest delay we are facing, is the arrival of a commercial grade air compressor that is required for the operation of the bottling line. We ordered one back on December 14 that was supposed to have a 7 day turnaround time, yet we haven’t seen it yet and the vendor we ordered it from is unable to either a) contact the manufacturer to get an update (well, they’ve been sending messages to the manufacturer, but haven’t heard anything back) or b) cancel the order… so we are in hurry up and wait mode. If you happen to work for Quincy Air Compressor… hurry up and make our unit!

The good news is that I have a shipment of bottles arriving today that I’ll at least get to label in advance of our first bottling. Those of you who are fans of the crooked, bubbly nature of our hand-applied labels will be disappointed to learn we also have a new labeller that will result in nice, straight, evenly applied, professional looking labels going forward.

I’ll definitely keep everyone updated on the status of bottles and the first release, both on my personal twitter (@beermonkey) in addition to the Freetail twitter (@freetailbrewing) and Facebook feeds. The good news is that the first release will include a few bottles. Look for Three: Anniversary Ale, Old Bat Rastard, PirateTail V and one of our IPAs all hitting the shelves at the same time.

Until next time.

2011 Rewind & Beer Industry Predictions for 2012

2011 is in the books, and it was an eventful one for the beer industry as the craft segment continues to explode and the traditional powerhouses continue to cling to market share. My list of the year’s top stories looks something like this, in no particular order:

• A tidal wave of Breweries-in-Planning. According to the Brewers Association, the number of breweries in planning stages was 855 as of 11/30/11 – and that’s just the ones they know about! More on this in my 2012 Predictions.
• Rubber Boots More Common at the Capitol. A number of high profile legislative efforts went down in 2011, including a successful effort in Minnesota led by Surly Brewing Co. to allow production breweries to sell beer directly to consumers at the premise of their breweries and unsuccessful efforts in Texas to allow similar changes for production breweries and to allow brewpubs to sell to distributors. Aside from the issues the individual bills try to address, the big story here is a growing trend of states having to adapt to the changing marketplace and the emergence of craft beer. Laws drafted almost 80 years ago are finding themselves inadequate to handle the modern beer industry, and the states that have already realized this have been able to foster economic growth leaving slow adopters in the dust.
• Craft Continues to Boom. In a sign of Craft Beer’s continued emergence, mixed with a sign that the main stream doesn’t quite fully get it yet, The Wall Street Journal Reported Craft Beer sales were up 16.4% in 2011 compared to a 2% drop in sales for beer sales as a whole.  As for the sign the main stream doesn’t fully get it yet: in the same article, the WSJ captioned a photo as being from “A Sierra Nevada Pale Ale brewery”. (Facepalm)
• The Wall Street Journal Might Not Get It, but MillerCoors Does. For years, “faux” craft brands like Blue Moon and ShockTop have been the ire of hardcore beer aficionados who have actively revolted against Big Beer and its influence over the industry. But MillerCoors deserves credit for their approach to the segment, and the seeming autonomy given to Tenth and Blake, it’s craft and specialty unit. There are increasing signs, and acceptance from some craft beer heavyweights, that Tenth and Blake is poised to be a major player (more in my 2012 predictions).
• And Maybe Anheuser-Busch InBev gets it too? The InBev spending spree never stops, with the global giant purchasing Chicago’s Goose Island for a reported $39 million. Goose Island insiders say the ownership change won’t impact their approach to beer, but one immediate impact is the strategy by InBev to begin trademarking Area Codes around the United States in what would appear an effort to mimic the success of Goose Island’s 312 Urban Wheat.
• Authentic Beverages Puts a Crack in Texas’ Dam. As reported here, A Federal Judge found certain aspects of the Texas Alcoholic Beverage Code to be violations of the 1st Amendment, and the state does not plan to appeal. (I tried to avoid linking to myself in this round-up, but with all due respect to journalists, I think my write up is most encompassing of the realities in this case – for other sources, I recommend a quick Google search of Authentic Beverages, Jester King, and TABC)

Without question, there are a lot of other huge stories that I’m not addressing as was a busy year. There was some major projects for me personally as well: I was involved in an (unsuccessful) legislative effort, (unsuccessfully) attempted to open another brewery 200 miles from where I live, was a witness on a high profile industry lawsuit, began installing a bottling line at our existing brewery. Fit that in between teaching at the University, serving on two Brewers Association committees, giving a TEDx talk, and the whole “running a business” thing. Despite two major unsuccessful ventures, I consider 2011 to have been a smashing success and I’m looking forward to 2012.

Speaking of which, here are my Beer Industry Predictions for 2012:

• Craft Beer Will Simultaneously Become More National and More Local. The continued growth of Craft Beer brings with it some growing pains. We will see an increasing number of breweries “pulling back” from markets on the outer reaches of their distribution territory in order to keep up with demand closer to home. Some of this newly available shelf space will be filled by an increased proliferation of the “big” craft brands like Sierra Nevada, New Belgium, etc. and imports. Simultaneously, some of the shelf space will be filled by local brands, either new breweries or existing ones finding increased access to market.
• Setbacks for Start-ups. Despite the optimism of some of my peers in the industry, I share the cautious skepticism of others who wonder if the market can support what amounts to a 50% increase in the number of breweries in America (if all the “in planning” came fruition). My personal feeling based on anecdotal evidence as someone who has given multiple Start-up talks at national conventions & gets a lot of inquires for advice is that the growth of the industry has once again drawn the attention of a lot of people who really shouldn’t get into the industry. I’m not suggesting there are or should be “rules” on who can start a brewery; but I do have a (completely unsupported by anything like empirical evidence) feeling that start-ups backed by people who see a breweries as nothing more than investments for the potential for high-return fail at a significantly higher rate than those of us who got into this business for the love of the industry. That isn’t to say that every start-up doesn’t have someone who loves the industry (though I know that isn’t the case), but there is a certain corrosive element that having the wrong people involved in a start-up can bring and it is becoming increasingly common. I think we’ll see some quick, and even high-profile with shiny new equipment, failures in the coming years.
• Natural Selection. I also predict an increased number of closures of established breweries in 2012 as competition becomes more intense. There are a lot of newbies (5 years old or less) making incredible beer pushing established breweries to up their game, or fade away into history. The result will be excellence on a more consistent basis from craft breweries. You’re favorite brands will either continue to get better, or they’ll just go away.
• A Glut of Equipment. The good news about my last prediction, is that if you are a start-up there should be a glut of equipment coming available as breweries fail. Some free start-up advice from yours truly: be a contrarian! If there is no used equipment available, it’s a bad time to start a brewery, because it means everyone else is starting breweries.
• Despite These Factors, Craft Continues to Blow Up. Based on the Wall Street Journal growth numbers quoted above, Craft Beer should enter 2012 with a market share around 5.1% by volume and 8.0% by dollars. I predict another year of high-teens growth, maybe even 20% as craft beer becomes increasingly mainstream, and craft will enter 2013 with dollar share of 10%.
• Distributors Start to Play Nice. In many states, there has long been an uneasy relationship between brewers and distributors, especially in the legislative arena where distributors feel empowering breweries puts their place in the 3-tier system at risk. I see 2012 as the year distributors in lagging states “see the light” and drop their opposition to legislative changes that would help small brands. Operationally, I predict increased pressure from InBev on its distributors to focus on their brands and wouldn’t discount the possibility of threats on those distributors if they don’t focus on InBev’s portfolio. Even so, I see craft beer & brand promiscuity accounting for an increasing percentage of wholesalers’ portfolios.
• Texas Will Change in 2013, and We’ll Know About it in 2012. Before the end of the year, craft brewers, distributors, retailers, consumers & lawmakers will have agreed upon legislation that allows production brewers to sell directly to consumers on the brewery premise and for brewpubs to sell their beer to distributors for resale. Texas will be free from the shackles of the past… which leads me to:
• BONUS 2013 PREDICTION: Texas experiences a craft beer Renaissance. Some of you may already think we are there, with all the new brewers popping up around the state… but by the end of 2013, you’ll look back and realize that we hadn’t seen anything yet.

Cheers,

Scott

 

Crafting Better Businsess: Insights from the Craft Beer Industry

Here is a talk I did at TEDxSanAntonio this year. It discusses how we can look at the beer industry of how to overcome the propensity for businesses to achieve for economies of scale, thereby lessening their value to the community. Hope you enjoy it.

Chairman of Senate Business and Commerce Committee reacts

One item lost in the shuffle following the Authentic Beverage v. TABC ruling is a telling statement from Senator John Carona, Chairman of the Senate Business and Commerce Committee, which hears alcohol-related bills.

“A Federal Court has ruled that Texas’ laws regarding the advertising and labeling of beer are flawed. In the case of Authentic Beverages Co. vs. TABC, the Judge awarded a summary judgment that certain laws directing the labeling and advertisement of beer are unconstitutional. While the three-tier system of manufacturer, distributor, and retailer has served Texas well since the end of Prohibition, it is an open question how well the Texas Alcoholic Beverage Code reflects today’s reality of Internet sales and the growth of the craft brewing industry. The Court’s ruling suggests this is a topic that may be taken up by the 83rd Legislature.”

Credit Lee Nichols’ I Love Beer Blog for the quote.

Senator Carona’s quote demonstrates that our legislators have becoming increasingly aware of the changing marketplace, and recognize that an 80 year old code may not be the best to regulate it. 2013 is looking better and better for Craft Beer to finally have a fair hearing for statutory reform.

Drink Beer, Save Texas!