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Showing posts with label Widmer Brewing. Show all posts
Showing posts with label Widmer Brewing. Show all posts

Monday, March 25, 2019

The Widmer Way: Boys Make Good

In an annals of Oregon brewing history, there are a few names that come instantly to mind. Henry Weinhard is automatic. He wasn't the first to brew here, but he was so significant that his legacy endured for more than a century. Arnold Blitz is another icon and a part of the Weinhard story. Then there's Kurt and Rob Widmer.

The Widmers were members of the group that launched the craft beer revolution in Oregon. They might well be the most successful of the founding brewers. It's a tough call only because the McMenamin's collection of properties is sprawling. Kurt and Rob Widmer built a beer brand that captured the imagination of mainstream craft fans in Oregon and beyond. None of the others managed that.

Jeff Alworth's new book, The Widmer Way: How Two Brothers Led Portland's Craft Beer Revolution, charts the Widmers' course from their relative youth to the conception and realization of their brewery to the partnership with Anheuser-Busch, Redhook and the formation of the Craft Brew Alliance.

I might have chosen a different title. The Widmers no more led the craft revolution here than did Bridgeport or Portland Brewing or McMenamins. Each of the founding breweries played a unique role. Widmer's key contribution was Hefeweizen, which set a standard in bars and popular restaurants, lending the craft movement an aura of status and credibility at a crucial moment.

Much of the story reported here is not new to me; I knew some of it thanks to my work on Portland Beer. But Jeff's book goes into much greater detail, which figures since Kurt and Rob are the main subjects. Their story is intriguing and instructive. Nothing came particularly easy for these guys. They meticulously built their business on hard work and remained true to that value long after they had achieved great success.

Putting together a craft brewery in the early 1980s was no easy task. The challenges were significant and are fairly well appreciated today. Jeff outlines issues the Widmer's faced as they assembled their brewery and began brewing. The makeshift system was a menagerie of pieces that weren't designed to function together. That meant brewing was arduous, requiring extensive time and labor. It meant jumping through a lot of hoops to get the job done.

Kurt and Rob were young, hardworking and dedicated to quality. Having started out as homebrewers, they put up with crappy ingredients and somehow managed to make decent beer. The initial batches of beer produced in their brewery were much better than their homebrew. But they sewered the first 10 brews, anyway, considering the beer not good enough to sell.


It's a pretty good guess that the Widmer dream would have failed had it not been for their father, Ray. Ray grew up on a farm and knew how to fix things and solve quirky problems, the kinds of problems you're apt to find in a cobbled-together brewery. He was retired by the time Kurt and Rob began working on their brewery. But Ray joined the fun and provided crucial assistance as the boys navigated numerous challenges.

A prime feature of the story is the cautious approach the Widmers took to everyday business. Once they landed on Hefeweizen as their flagship beer, orders poured in so fast they couldn't keep up. A small brewery at B Moloch's in downtown Portland provided brief respite. When they finally moved to Russell Street, they installed a 30-barrel brewery. Incredible. That brewery should have been at least twice as large...just one case of the thriftiness wired into the Widmer DNA.

The most fascinating part of the book involves how the partnership with Anheuser-Busch was formed in 1997. At the time, the Widmers needed to expand again, but were also looking for a partner that could help them reach a wider audience. They discovered they had a lot in common with August Busch III, then the CEO of Anheuser-Busch. The AB partnership evolved largely out of a shared set of values. The Widmers were widely criticized within the growing craft community at the time, but the partnership with AB was one of the smartest decisions they ever made. More than cash to finance expansion, they got access to the nationwide AB distribution network.


Out of the arrangement with AB (which purchased 27 percent of Widmer) eventually came the partnership with Redhook and formation of what became the Craft Brew Alliance in 2004,  as well as the decisive purchase of Kona in 2010. Jeff covers these developments nicely, but wisely avoids investigation of the modern CBA, which is run by sociopaths and only indirectly germane to the Widmer story. Small favors.

If there's a weakness here, it involves the circumstances under which the book was written. Kurt and Rob trusted Jeff to accurately tell their story and paid him to do so. The problem is that paid-for biographies often tend to be too friendly to their subjects. While he was writing the manuscript, Jeff asked me to read several chapters and provide comment. Knowing me to be an honest asshole, he figured I'd provide an honest assessment. I did.

How much of my advice he took is unclear. The flaws in this book are largely related to words here and there that might have been chosen differently. What those occasional words do is create a more friendly, pandering picture than is needed. You'll see what I mean. That approach explodes Aliens-style in the final chapter, the Legacy of Beer, which is full of loving anecdotes from friends and family, and way too syrupy. I would have dispensed with that chapter or toned it down.

Another shortcoming involves the photos, which are small and murky. The Widmer archive contains a lot of photos and it's unfortunate that they aren't handled better here. It's not clear who made the decision to present the photos in this way. Jeff didn't have access to them, so this isn't his doing. Either the publisher, the Ooligan Press, or the Widmers, who negotiated to have the manuscript printed, made the call on the photos. This isn't a disaster, just an opportunity lost.

Even with the noted flaws, I give this book very high marks. The occasional bits of pandering are offset by a story that is expertly written, illuminating and essential reading for fans of craft beer and Portland history. Hiring Jeff to write their story, similar to their decision to partner with Anheuser-Busch, was a wise move on the part of the Widmers.


The book is available through area bookstores and on Amazon. There's an audio version in the works, but I don't know when it will drop. I urge interested readers to purchase a copy at a local bookstore. Doing so won't help Jeff, who got his money up front. But it will help those retailers and let the publisher know that books like this do have an audience. For those who want to read the book without owning it, the Multnomah County Library has 21 copies that can be checked out.

For hardcore fans, Jeff has set a local launch event for Tuesday evening, April 2, at the former Widmer pub on Russell Street. He'll do an introduction, possibly a short reading, and Kurt Widmer will be on hand to talk. Rob is unavailable, apparently hiking the Pacific Crest Trail, which is perfectly appropriate. A list of related events can be found here.

You can indirectly support your local beer writer/author and historical inquiry in general by buying a copy of this book. Just do it.


Monday, February 16, 2015

Good and Sketchy Times at the Craft Brew Alliance

The Craft Brew Alliance, represented by the Widmer, Kona, Redhook and Omission brands, released its preliminary financial results for 2014 last week. If you keep your gaze fixated on that report, the news is all good. You have to look a bit deeper to see potential problems.

Some Highlights
  • Net sales increased 12 percent over 2013, topping the $200 million milestone.
  • Shipments grew 10 percent, compared to 4 percent in 2013.
  • Contract brewing and related sales increased 33 percent.
  • Diluted earnings per share reached 16 cents, compared to 10 cents in 2013.
  • Gross margin expanded to 29.4 percent, compared to 28.1 percent in 2013.
The report paints a picture of a company that is doing quite well. The CBA is based in Portland and has strong roots in the Northwest, but its brands are making a strong statement in markets throughout the country. The first full quarter of brewing in Memphis helped contribute to what was, in fact, a record year for the company.

The Sketchy
If it's true that every grey cloud has a silver lining, then the reverse must also be true. In the case of the CBA's 2014 results, there are some issues. For example, growth slowed to 7 percent in the fourth quarter, when sales to retailers were up just 2 percent. The report says that "primarily reflects the SKU rationalization of seasonals across the portfolio." Fine.

By far the most significant factoid on the grey side of the ledger is the fact that CBA volume was down 5 percent in Portland, Seattle and Bay Area grocery stores, according to IRI (Information Resources, Inc.) data. These are the top craft markets in the country and the CBA is traditionally a big player in each (#1 in Portland and Seattle; #3 in Bay Area).


The CBA report doesn't mention or attempt to explain...no reason to in a stellar year. But volume losses in traditional core markets in a record year mean the company did extremely well somewhere else. Info in the report and IRI data suggests the CBA's most robust 2014 growth occurred in underdeveloped craft markets in the East.

That makes perfect sense if you think about it. Mainstream CBA beers are in a tight spot in mature craft markets like Portland, particularly in grocery stores, where competition for shelf space is brutal. The place where their beers shine is markets that have recently jumped on the craft bandwagon. There isn't much competition in these "soft" markets and the CBA is tapping them with gusto.

None of this means the CBA makes crappy beer. Far from it. I'm not a big fan of the standards, but I've enjoyed some fantastic specialty beers on recent trips to Widmer's Gasthaus pub. They always seem to have seasonals and specialty beers on the board. CBA beers may not have a strong presence in the area's elite taprooms and beer bars, but they are brewing some great beer.

Future Angst
OLCC stats for 2014 (through November at this point) put the CBA at the top of the heap for barrels sold in Oregon. Of course, they are selling far more beer outside the state and Northwest. A big reason for that is the arrangement they have with Anheuser-Busch, which owns roughly 30 percent of the company and has an extensive, nationwide distribution network.

Some wonder where CBA products fit into AB's strategy going forward. With the acquisitions of Goose Island, 10 Barrel and Elysian, and their efforts to acquire and operate branch distributors wherever the law allows it, will AB shift its focus to fully-owned brands at the expense of partly-owned CBA brands? Inquiring minds wonder how that will play out.