The Unique Odyssey of Mt.Tabor Brewing

Every brewery has a story. Just like any business. Of course, some of the stories are more interesting than others. For Mt. Tabor Brewing, which just opened a production brewery and tasting room in Southeast Portland, it's been quite a ride.

The first edition of the brewery, launched by friends Eric Surface and Brian Maher, was located in Maher's garage. Subsequently, they moved to an industrial space in Montavilla in 2010. A year later, they lost that spot. That led to Version 3 in downtown Vancouver, opened in October 2011. Now there's Version 4 in Portland.

"When we moved to Vancouver, the brewery was really nothing more than a hobby that supported itself," Surface says "But we quickly outgrew the limited space there. My vision had always been that our production facility should be in Portland and we actually made that happen more quickly than I imagined when we moved to Vancouver."

In fact, plans for Portland were moving forward well before their lease in downtown Vancouver ended last May. Two years ago, Surface and several partners leased 6,000 sq ft of space in the Buckman neighborhood. Since then, they've been navigating the construction and permit process involved in getting the doors open, which happened a week ago.

Another twist in the road involves their head brewer. When the previous brewer left to pursue another opportunity, Surface needed a replacement. A lot of industry heads spun Exorcist-style when they learned Ben Dobler, a 20-year Widmer veteran, had opted to leave a good job in an established company to roll the dice with Mt. Tabor as head brewer.

"I saw things changing at the CBA," says Dobler, who worked in new product development for most of his last 10 years there. "They wanted me to create inexpensive beers that could be sold at a premium price. The stress was mental, not physical. But the uncertainty of what's happening with the CBA and whether I'd still have a job in a couple of years made me uncomfortable."

Dobler and Surface knew each other from their days at Mountain View High School in Vancouver, classes of '92 and '93, respectively. They had stayed in touch over the years through mutual friends and had occasionally spoken. Would Dobler leave a cush job at Widmer to join a startup working 60 grueling hours a week?

"I had no idea if he'd be interested," Surface says. But we have similar tastes in beer and similar interests outside brewing. He seemed like a natural fit for our program and the expansion I envisioned with the move back to Portland. I figured there was no harm in asking so I sent him a text message."

Dobler, somewhat bored at Widmer, saw potential at Mt. Tabor and thought it represented a stimulating opportunity. "I'm going to brew quality beer my way," he said. "The beer list will reflect my preference for balanced, drinkable, low ABV beers. I'm not a fan of alcohol bombs where patrons have to be carted out after more than a pint."

The Portland location features a 15 bbl brewhouse with three 20 bbl fermenters. They could brew up to 120 barrels a month with the current setup, and expect to produce around 500 barrels this year. The taproom, managed by veteran Nicole Kasten, will be open Friday and Saturday for the time being. Soon enough, Surface expects to add Sunday and Thursday.

Kasten, Surface, Dobler

Growth will happen primarily via draft distribution for now, Surface said. Mt. Tabor beers are distributed by Running Man in Portland and by Stein in Vancouver. They will consider packaging options once draft volume edges closer to capacity. Their space has considerable room for expansion, when the time is right.

The beers on the core list are solid and all are under 7% ABV. But there isn't a single niche or zinger on the list, which seems odd. Normally, you walk into a Portland brewery and see at least one standout, flagship beer. Not here. In the heart of the craziest craft beer market in the country, these guys expect to attract a following with quality and drinkability. We shall see.

Despite the heavy recent focus on Portland, Vancouver has not been entirely abandoned. Surface and partners have leased space in the Felida area and will open a brewpub and pizza joint there by the end of the year, if all goes well. That location, in an underserved residential area not far from Surface's house, should do especially well.

Mt. Tabor's strange, twisting journey continues.

Editor's Note: On October 15, two weeks after this story was published, Ben Dobler and Nicole Kasten announced they are leaving Mt. Tabor Brewing. No reasons were given to the public. Mt. Tabor's strange odyssey continues.

Image is Everything for Michelob Ultra

Those who follow or attempt to follow craft beer tend to see it as a monolithic movement that will eventually envelop the country and the world. That mindset more or less assumes that light beer is irrelevant and dead. An arrogant mistake.

Because light beer is far from dead. It remains a dominant force in the industry and, it turns out, is home to one of the fastest growing brands in the business: Michelob Ultra.

Let me back up. Michelob Ultra is part of the super premium segment, which is dominated by Anheuser-Busch brands and includes garbage like Bud Light Lime, Bud Light Platinum, Landshark and others. Super Premiums did well in the late summer according to IRI scans, showing the second best dollar growth trends behind imports.

And Michelob Ultra is king of the super premiums, owning the greatest share, five times larger than second place Bud Light Lime. Through early September, Michelob Ultra was up nearly 25 percent in dollars for the year. Not bad for a brand that was written off by craft fans long ago.

You may recall that Michelob Ultra isn't new. Launched during the low-carb diet craze back in 2000, it appealed to folks trying to lose weight by cutting loose calories, of which beer is a fantastic source. Ultra didn't do badly in those bygone days. But it was seen mainly as a diet beer, a motif that has never worked well in beer. That's why "light beer" was invented.

Since 2011, Michelob Ultra has been growing steadily. This has nothing at all to do with the beer, which is, contrary to ads suggesting otherwise, a pretty tasteless drink. What's changed is how the beer is marketed, who is targeted and how much money is being spent. As we know, image counts for a lot if you have money spread the word.

It is undoubtedly true that the availability of reduced calorie foods and beverages has been increasing. That category reportedly accounted for 99 percent of the sales growth for the major food companies between 2007 and 2012. Michelob Ultra is a near perfect fit for the category, a fact not lost on the marketing kids at Anheuser-Busch.

What they noticed is that fans of lower calorie, healthier foods and drinks are spread throughout the various demographic groups. In that scenario, you don't want to limit your ad imagery to older or younger drinkers. The active, healthy lifestyle used to promote Michelob Ultra targets a wide swath of people who don't want to be slowed down by "heavy" food and drink.

They have backed up that thinking by spending more to promote the Ultra brand, though what they're spending pales next to what they spend on Budweiser and Bud Light, brands that are tanking badly. They've managed to create an image that appeals to active, educated, and perhaps more affluent and mature folks. In short, things many of us would like to be.

The Michelob Ultra growth train shows no sign of slowing, which proves you don't have to have a great product if you can devise and execute a smart and effective advertising campaign. More than anything else, that's what Anheuser-Busch has done with Ultra. Kudos to them. They aren't stupid, by any means.

In fact, Michelob Ultra is likely to gain traction as millennials get fat and begin to seek low calorie alternatives to their 7% IPA. Could craft brewers enter the fray? Certainly, they could produce light beers to compete with crap like Ultra. What they don't have is the money to support a national ad campaign, upon which the success of Ultra is largely based.

Sometimes image really is everything.

Winesong Contrasts Beer and Wine Crowds

Last week was a blur. It included a drive to Mendocino and weekend adventures at a wine festival. There's plenty of beer to be had in California, and I did manage to visit North Coast Brewing in Fort Bragg. But the trip was all about wine. And eating too much.

The festival is Winesong, which has been in existence since 1984. It's a benefit for the Mendocino Coast Hospital Foundation, engaged in fundraising and community activities that help support vital equipment acquisition and services at Mendocino Coast District Hospital.

What was I doing at Winesong? Good question. I'm not normally a wine snob. But my wife prefers wine and her late father attended Winesong regularly for many years. She had been to the event once, 25 years ago, and wanted to try it on again. I was mostly along for the ride, although I do enjoy wine when not being a beer snot.

Winesong is essentially three separate events: a Pinot Noir tasting; a Grand Tasting and a Charity Auction. We attended the Pinot Noir tasting Friday afternoon and the Grand Tasting on Saturday. The Charity Auction, which happens right after the Grand Tasting, wasn't on our radar screen.

These wine people know their stuff. The Pinot event, attended by a few hundred fans of the style, featured some fantastic wines, as well as food. The Grand Tasting, attended by (in my estimation) several thousand fans of wine and food, featured a variety of wines and expansive food options. as well as music in an incredible botanical garden setting.

I didn't expect these wine events to mimic the style and form of the beer festivals I've come to know. And they didn't. Winesong tickets are far more expensive than what most of us pay for a typical beer event. Of course, they include all the wine you can drink (they will cut off the sloshed) and, in the case of the Grand Tasting, all the food you can stomach.

Beyond the differences in cost and offerings, there was more. I assumed the crowds would be different than a beer crowd, and they were. But there were differences I hadn't expected.

The folks attending the Pinot tasting arrived mostly in expensive European automobiles. It was a decidedly older crowd, way older than what you find at your average beer festival. A lot of these folks have been coming to this slice of Winesong for a while. They knew the ropes.

The Grand Tasting crowd was much more diverse and not as gentrified. Many of the folks from the Pinot tasting were there, but the crowd had a youthful twist. It was good to see young faces similar to the ones I see in beer indulging in wine. Gave me comfort.

As I was thinking about the crowd, comparing it to a beer festival, I realized the biggest difference was the demographic mix. There was a good mix of men and women of all ages at Winesong. Specifically, there were middle-aged women, a demographic that's virtually nonexistent at beer events. These women like their wine and food. Beer is not their thing.

As for styles, the wines being poured were straightforward. There was Chardonnay, Cabernet Sauvignon, Pinot Noir, sparkling wines, etc. Wine simply hasn't been taken over by the wildly imaginative approaches seen in brewing, as brewers driven by the eclectic tastes of young drinkers do all kinds of crazy stuff to create unique beers that routinely pummel style guidelines.

When I was interviewing Dick and Nancy Ponzi for my book, one of the significant questions I asked them was, given the phenomenal success of Bridgeport Brewing, why they decided to sell to Gambrinus in 1995. Of course, they're smart folks and didn't want to give a blunt answer. So they developed an explanation with supple edges.

Essentially, the Ponzi's sold Bridgeport because they tired of the beer business, where people were always asking for hats, shirts and other schwag. They realized they would have to invest substantially in marketing and education if they wanted to build the brand further. The decided they preferred the wine business, where they didn't have to do so much handholding.

After attending Winesong, I may finally have a more complete understanding of where the Ponzi's were coming from.

IPA Keeps Craft Beer Afloat in a Sluggish Year

One of the more annoying experiences for many a beer geek is walking into a brewpub or beer bar, looking at the board, and discovering the majority of available beers are IPAs. It's not that we don't like IPAs. It's that we'd like to see more choices.

Of course, there are reasons for everything. And the reason beer watering holes and retail stores stock so many IPAs is that's what a growing number of consumers are looking for. That's not the way most beer snobs would draw it up

But it turns out we're lucky to have IPAs around. In a sluggish growth year for craft beer, IPA is a bright spot. If you haven't seen the numbers, craft beer is seeing its lowest sales growth in grocery stores since 2004. Growth dipped below 10 percent through the first half of the year and has lost further momentum since.

The slowdown will evidently impact fall grocery sets. Large retailers are reportedly scrutinizing craft SKUs carefully, looking for losers. That's how these folks roll. They want stuff that turns quickly and generates dollars per square foot. If craft isn't performing, something else might, though finding replacement products won't be easy since craft beer remains the fastest growing segment in the alcoholic beverage category.

When you think about the overall trends, keep in mind that these are strictly food store-related. On-premise (bars, restaurants) sales aren't tracked in these numbers. Neither are convenience and multi-outlet (Walmart and such) stores, where craft trends are evidently slightly higher. Nonetheless, the numbers are fairly shocking when you're used to double-digit growth.

Peeking through the fog of disappointing numbers is IPA, which is keeping the craft boat afloat. Through early July, IPA is up 23 percent for the year in grocery stores and creeping up on a 30 percent dollar share nationally. IPA is literally kicking the crap out of everything else. And the national numbers only hint at what IPA is doing in the nation's premier craft markets.

In San Diego, IPA is approaching 50 percent of craft sales in grocery and is up nearly 5 percent this year. The San Francisco Bay Area and Portland are close to 38 percent, both with solid growth this year. Other markets where IPA is seeing spectacular growth include Seattle, Sacramento, Los Angeles, Philly, Miami, Baltimore/DC and Raleigh/Greensboro.

Again, keep in mind that grocery sales in well-developed markets, like Portland, which consume a lot of draft beer, dramatically underreport the dollar volume of IPA sales. Industry friends tell me we don't have a great way to track draft-only sales. If we could track retail and draft sales of IPAs in places like Portland and San Diego, they might approach 60 percent of total dollars. Shazam!

Not that long ago, people were predicting the coming demise of IPA. Now that it's the shining star of the craft segment, those predictions are laughed off as highly exaggerated. Some in the industry wonder how far IPA can take them. Can it pull the craft segment out of the doldrums and a be a growth leader into the future? Or does the industry have too many eggs in the IPA basket?

No one knows the answers. Anticipating trends can be tricky. All we know for sure is that beer fans are hooked on hops. And IPA is how they get their fix.

Liquid Aloha to the Craft Brew Alliance

Last week was a good one for the Craft Brew Alliance. The company's stock price reached an all-time high of over $20 per share on Friday. Two days earlier, the CBA released details of an agreement that puts in motion its sale to Anheuser-Busch. Those details are most certainly related.

Back in June, I wrote a piece predicting an imminent buyout. The deal announced this week isn't quite that; it isn't final and there are still details to be worked out. But the arrangement is the precursor to a completed deal, make no mistake.

The fact is, now is not a great moment for a buyout. In approving its merger with SABMiller, the Department of Justice nullified certain AB practices and told them future acquisitions would receive careful scrutiny. Now is a good time for Anheuser-Busch to keep a low profile.

Anyway, the CBA and Anheuser-Busch have been virtually joined at the hip for about 20 years. As one industry publication noted, "it seems AB and the CBA are engaged to be married, after having shacked up for a while." A buyout is imminent unless something strange happens, including the possibility that DOJ could block it.

"Collaborative independence" is the phrase both AB and the CBA are using to describe their relationship for now. In this scenario, there are three areas of commitment in place, all of which serve the interests of the CBA. It's quite bizarre, really.

Master Distributor Agreement
Anheuser-Busch will continue as the CBA's master distributor through 2028. Fees remain at 25 cents per case. That's good news for the CBA, which was bracing for a tripling of fees when the old deal expired in 2018. If volumes exceed today's 11 million cases, the CBA will save an estimated $6 million per year starting in 2019, escalating with growth over the contract term.

Contract Brewing
The CBA will have the opportunity to brew up to 300,000 barrels (more than a third of its 2015 output) within AB's network at a cost savings of $10 or more per barrel compared to their current cost. Transitioning those barrels to AB's factory breweries will take a couple of years, after which the cost benefits will gradually be realized.

You will recall that the CBA brewery in Woodinville, Wash. is currently leased to Pabst, which has an option to buy it within three years. The CBA brewery in Portsmouth, N.H., might meet a similar fate. Or the CBA could use it to build partnerships with smaller craft breweries, whose beer would be contract brewed in Portsmouth and distributed via the AB network. There are some significant financial windfalls here, regardless of which way things go.

International Distribution
The CBA awarded AB exclusive rights to distribute its beer in countries not covered by existing agreements. Starting in 2019, AB will pay a royalty of $30-$40 per barrel, pay production and material costs and reimburse the CBA for out of pocket shipping costs.

Until 2019, AB will make fixed international payments of $3 million in 2016, $5 million in 2017 and $6 million in 2018. As an incentive for "international volume development," AB will pay an additional $20 million in 2019. What's $20 million between friends, huh?

Stuck With Me
Of course, there's more. Anheuser-Busch is obligated to carry out all elements of the new agreement unless it makes a "qualifying offer" to purchase the CBA and the CBA rejects it. At that point, AB could reconsider any or all of the agreement. What's a qualifying offer? I'll get to that. Just remember AB's only way out is if the CBA turns down an offer or shifts control to someone else. Fat chance of that happening given the pork in this deal.

Okay, qualifying offer. It's an offer to acquire CBA for a minimum of $22 per share during the first year of the agreement. The minimum bumps up to $23.25 a share in the second year and to $24.50 a share in the third year. The stock price was hovering around $14 before the new deal was announced, but finished the week above $20. Wall Street loves this deal.

Timelines and Plotlines
It's clear AB and the CBA have established a framework for a delayed buyout. That scenario seems well-suited to both parties. What's the timeline? The way the agreement is structured and the way certain internal CBA details line up, the pressure to acquire the CBA increases in each of the next three years. A finalized deal is likely by 2019, if not sooner.

The elephant in the living room is this: Why did Anheuser-Busch agree to terms that are slanted so wildly in favor of the CBA? These are not reckless business people. They are accustomed to acquiring brands, squashing competition and winning. They like getting their way. Why so many concessions to the CBA?

The answer is Kona. AB wants it and the CBA has it. In fact, Kona is the only CBA brand with broad potential. It will be the biggest fish in AB's kettle of craft fish due to its national and international appeal. The big shots in St Louis and Brazil intend to market Kona against arch-rival Constellation's trio of Corona, Modelo and Ballast Point. For starters.

The rest of the CBA portfolio is junk, by comparison, likely to be sold piece-by-piece once a buyout is finalized. Redhook, relegated to discount status, likely ends up with Pabst. What happens to Widmer? That's an open question. It might be reformed as a boutique brand known for unique and innovative beers. That can't happen under the current regime of corporate profiteers, but it might happen if AB sells the brand to the right person or group.

What's the impact of the impending deal? Obviously, executives and big shareholders are going to rake in some serious cash. Past and present employees with stock or stock options will make some money. Some jobs will be lost after AB takes over and implements the cost-cutting initiatives it's famous for. But, then, you can't make an omelet without smashing a few eggs.

The official passing of the CBA torch to Anheuser-Busch will have no significant or lasting impact among consumers. The CBA may or may not cease to exist. It won't matter since most knew it only vaguely via the brands it represented, brands that will henceforth be owned by big beer.

Liquid aloha, folks.

Belmont Station to Host Ballast Point's 20th

Sometimes you have to wonder about equity in the beer industry. Large, well-funded breweries have significant advantages over their smaller counterparts. Besides efficiencies in production and distribution, they have the means to launch big promotional events, for example.

Such is the case tonight, when Ballast Point celebrates 20 years with a tap takeover at Belmont Station. This is no ordinary tap takeover. The folks from San Diego will be occupying 15 of the Station's 23 taps. A normal tap takeover would typically consume 4-7 taps.

"You can't celebrate a milestone like this one with just a few beers," says Lisa Morrison, Belmont Station owner. "So we'll have 15 across a pretty good range of styles. There will be something for everyone."

You may know Ballast Point is one of fastest growing, most vibrant brands in the land. They've only been in Oregon for a few years, but their growth has been off the hook here and elsewhere. That growth trajectory leapt upward last year when the company was acquired by Constellation Brands for a cool billion bucks.

They've mostly gotten a pass from the same craft beer community that crucified 10 Barrel, Elysian and others that have sold out to big beer. Part of that is timing. Ballast Point sold in late 2015, a time when the craft beer community was feeling numb due to prior acquisitions. There's also the fact that Constellation, which owns and markets Corona, Pacifico and Modelo, doesn't own distributors, as is the case with Anheuser-Busch.

Whatever differences of opinion exist regarding Constellation and Ballast Point, they haven't mattered in the least. At a time when the overall growth in craft beer volume is slowing nationally, Ballast Point has been hitting it out of the park. Sculpin IPA is one of the hottest brands in industry growth stats and several others are also doing well.

Even in Oregon, Ballast Point has done well. It's hard to figure. They came late to one of the most competitive craft beer markets in the country with products that are, frankly, overpriced. Yep. In case you don't know, a six-pack of Sculpin will set you back $15. The other brands in their portfolio are similarly overpriced. But it hasn't mattered. The stuff sells. And sells.

Part of that is the beers. They're solid. And not just Sculpin, which is so popular it has spawned a brand family with different fruit twists. Ballast Point also has a strong brand identity, leaning on its connection to Southern California beaches and sunshine. Constellation paid big bucks for Ballast Point because it understands the value of place in a brand's identity. See Corona.

The list for tonight's party includes some of the better-known Ballast Point beers, as well as some that are rarely (or perhaps never) seen here. Take a look:

• Sculpin IPA
• California Amber
• California Kolsch
• Grunion Pale Ale
• Pineapple Sculpin IPA
• Mango Even Keel Session IPA
• Watermelon Dorado DIPA
• Grapefruit Sculpin IPA
• Calm Before the Storm Cream Ale with Coffee & Vanilla
• The Commodore Stout
• R & D Coral Wheat Ale with Hibiscus, Pomegranate & Cherries
• R & D La Premiere de Garde Bier de Garde Ale
• R & D Schwarzbier
• R & D Trident Belgian Tripel
• R & D Double IPA

The party is the only one of it's kind in Oregon, Morrison says. "We were honored when they asked us to host because their beers have done well and we like them." The official celebration runs 5-7 p.m., but many of the beers are on now and some will be on after the event. Should be fun.

Washington Beer Reinforces the Nature of Beer Industry

History is bunk. Admit it. That's why hardly anyone bothers reading up on the brewing histories of towns, cities and states. There are Pokemon to be caught and Twitter threads to be launched and followed. Who has time to read?

Nonetheless, chump that I am, I bought a copy of Michael Rizzo's book, Washington Beer: A Heady History of Evergreen State Brewing. The book was published earlier this year by The History Press, the same outfit that published Portland Beer in 2013.

For the record, I've never met Rizzo, who lives in the Seattle area. He and his wife, Michelle, host Northwest Beer Talk, a weekly podcast covering craft beer. According to the book, he's worked as an historian, lecturer, school bus driver, tour guide and network administrator.

Relax. I'm not here to review the book. That's not something I do here. I made an exception when Jon Abernathy's book on Bend was published a couple of years back. I did so because I know Jon and because Bend and Portland are invariably linked.

The Washington book is not like mine. Due to the sheer number of breweries Rizzo had to cover, a book similar to mine covering the state of Washington would have consumed 300 or 400 pages. And the publisher does not want books of that length and depth. Why? Because almost no one reads crap like that.

Because I was only dealing with Portland, and also because much of our history is dominated by Henry Weinhard (Blitz-Weinhard, if you prefer), I got to spend a lot of words addressing why things happened as they did. There's a lot of storytelling and historical perspective in my book.

Not so in Rizzo's case. With so many breweries past and present to talk about, he focuses mostly on when, where and who founded and operated the state's breweries. There are only occasional snippets providing perspective on why things happened the way they did.

I'm not a fan of this approach. I understand why it was necessary. But dates, names and places offer only a partial story. Perspective and background are needed. Limiting the scope of the book to Seattle or the Puget Sound area might have been a more reasonable approach, given the required word and page count parameters.

But never mind. The book is what it is and it's definitely worth a read if you're interested in Washington's brewing history and don't mind wading through a lot of facts that are often, though not always, disconnected. You might not mind.

What really jumps off the pages is the predatory nature of the industry. Washington's brewing history is dominated by consolidation in its various forms. Breweries and brands have been bought, sold and otherwise transferred routinely. Iconic brands like Rainier and Olympia are prime examples, but they are nothing more than examples.

This isn't shocking or surprising. A primary feature of the beer industry is that it's a giant pyramid scheme. Brewers are driven to dominate markets and expand into others. Sales growth and improved cost efficiencies lead to acquisition and consolidation. It's the nature of the beast.

Today, acquisitions are in the news. Anheuser-Busch and MillerCoors are buying craft breweries. Many are alarmed. But, really, what we're seeing today isn't new. It's been part of this industry for a more than a century. Washington's history illuminates and reinforces that reality nicely.

Merchandising and Modern Craft Beer

As we make our way through summer and (soon enough) into early fall, I see breweries prepping for fresh hop and pumpkin beers. The industry has become all too predictable as it swings from one season to the next, with no one wanting to be left behind in the rush for seasonal beers.

One thing I rarely hear people talking about is merchandising. Craft beer merchandising is exploding. People who drink craft beer (and some who don't) clamor to get their mitts on hats, shirts and a variety of other trinkets sold at breweries, taprooms and stores.

The merchandising concept stared me in the face on a recent trip to Sunriver. During an afternoon in Bend, I watched patrons spend more money on shirts, hats and trinkets than they spent on beer. These were mostly tourists, who have absolutely overrun Central Oregon. Still, I was astonished.

Look, I'm well aware that merchandising has been a part of the craft beer movement since the early days. I have ancient hats and shirts from the Lucky Lab, Bridgeport and the Oregon Brewers Festival, among others. Craft brewers didn't just recently discover they could make money on this junk. But they're tapping into the growing demand with gusto.

The reality is simple. Folks want to identify with their favorite craft brands in basically the same way they identify with bands and sports teams. That means buying logo gear in a variety of forms. And brewers are getting more and more creative about what they offer and how much they charge for the stuff. It's big business.

What this trend has done is put increasing importance on brand identity. If you're a brewer, you want your identity to be more than just unique; you want it to be appealing and trendy. You want something beer fans will want to wear around or show off in other ways. If you can get it into their hands early on when you're new and few are wearing it, so much the better.

Talking with a fellow writer and blogger friend about this, we laughed about the current reality. A lot of new breweries develop their branding well in advance and start selling shirts, hats and such before they even open. He suggested we might be able to create a cool logo and backstory for a fake brewery and make money selling logo items. Such is the insatiable demand for the stuff.

What does it mean? Maybe nothing. But probably it means craft beer has attained a cultural relevance nearly on par with sports and music. Having reached that place, we see a growing emphasis on being the first to wear schwag from breweries that are newer or yet to open. It's similar to being among to first to wear a shirt advertising a hot new band or sports team that's doing well.

This is all fine and dandy, right? Except that it works to the advantage of newer places that may not be all that great, aside from a spify logo, and to the distinct disadvantage of established places that may not be seen as cool, trendy or relevant at this point.

But all's fair in love and beer. And that's the state of modern craft beer. Take it or leave it.

News Register Publishing Acquires the Oregon Beer Growler

Gone for a week of Labrador chaperoning in Central Oregon, I managed to mostly stay away from beer destinations in the area. Not such a bad thing, honestly. Each day my email inbox filled with messages deserving comment. But I had no time. Until now.

You certainly know of the Oregon Beer Growler, the beer-centric publication founded in 2012 that covers our beer scene. Last week came news that the OBG has been acquired by News Register Publishing of McMinnville, a family-owned firm with roots in the area dating to 1866.

In a press release sent to "past and prospective clients and distribution points," president and publisher, Jeb Bladine, announced acquisition of the Beer Growler's name and publishing rights from founder Gail Oberst and owner Will Oberst (Gail's son).

I do not know the circumstances surrounding the sale of the Beer Growler. Was it sold because it was doing well or because it wasn't? Inquiring minds wonder, but that's not the sort of information you're apt to find in a press release happily announcing an acquisition. Particularly if the news is bad.

Bladine said they hope to retain the services of some of the OBG's "favorite contributors." Continuity is a good strategy, for sure, and it will be a neat trick to swing given the Growler hasn't been paying staff or freelance contributors in recent times. Perhaps things were not going so well.

I've discussed the reality of beer writing here in the past. My experience is that beer-centric publications are slow to pay. I've had national magazines fail to pay for articles for months after publication. I suspect there's such a large pool of competing writers that publishers aren't worried about timely payment. It's a good reason to avoid this type of work as a vocation.

You might say the Beer Growler took the slow pay thinking to a new level by not paying at all. They did so without notice. I know because I wrote an article for a recent issue. There typically aren't contracts with this kind of writing. You pitch an article and an editor accepts (or rejects) it at an agreed upon rate, which is pretty low in the case of the Growler. In this case, I later learned they weren't paying right now. Other contributors confirmed they were months behind.

Word is, the News Register folks are assuming no responsibility for the debt of the previous owners. Which means Mr. Oberst is stuck with past bills. Regular contributors and staff who continue on with the magazine will probably be compensated for past work. Others may well be out of luck, although there's been no formal announcement along those lines.

My own view is the Beer Growler has evolved and is better today than it was four years ago. Editor Andi Prewitt does a nice job procuring and managing good content. I know she's excited to work with the News Register folks, who have prior experience in this area, having produced the Oregon Wine Press for the past decade.

I'm not sure we need more beer publications here. Virtually every print outlet in the area has jumped on the craft beer bandwagon, often with less than stellar competence. But I hope things work out for the new Beer Growler, that they continue to evolve and improve. Paying contributors and staff in a timely manner would be a nice start.

Odds and Ends: Report from the 29th OBF

The 29th Oregon Brewers Festival blasted off yesterday with the brunch, parade and ceremonial tapping of the first barrel, this one provided by host brewery, Laurelwood. There was a large, but mostly quiet crowd on hand to kick things off.

Wednesday might just as well be called "industry day" at OBF. Because there are countless industry-connected deadbeats hanging out drinking beer, networking and seeing the sights. That includes the so-called beer media, which is always well-represented. Trust me.

This is my 25th OBF, 24th in a row. I missed 1988 (not yet here), 1989-1990 (here but not yet paying attention) and 1992 (mysteriously out of town). A lot of things have changed over the years, The event has grown and evolved.

One of the things casual bystanders probably aren't aware of is the extent to which OBF is much more than just a beer festival. Countless private parties and sideshows litter OBF week. In effect, the festival is the central event in a sea of unconnected spin offs. Craft beer is big business and Portland is a central player in that business. Which means the money flows.

But never mind the details. You aren't interested in the politics of the Oregon Brewers Festival or the economics of the beer industry. You don't know how lucky you are. Below are some of the things you may want to know about the festival.

Tasting Packages
Unlike most modern festivals, the OBF does not require you to purchase a tasting package. So you won't have to shell out $25 for a shoddy package that includes a mug and 10 tokens. Instead, you can buy a mug for $7 and tokens for $1. Yes, you can buy a package. But you don't have to. I talked to several people who didn't know that.

Water
It's always a good idea to stay as hydrated as possible while tasting/drinking beer. Watering stations are scattered around the park and you can buy outrageously priced bottled water from the various food vendors. A better idea is to bring your own. They have not always allowed it, but you can, in fact, bring in water. Do it.

Bike Parking
Unbeknown to me, the bike parking area moved. In recent years, it was located at the Northeast corner of the park. I expected to find it there yesterday. No luck. And no signage telling me where to find it. The gate staff could give me only a rough idea of where to find parking. Well, it's at the Southeast corner of the festival space, on the other side of the Morrison Bridge. FYI.

The Beers
I think they've upped their game this year. Between the 88 or so beers pouring in the main tents and the 25 or so pouring in the International Tent, organizers have done a nice job in terms of variety and quality. Also value. I didn't see a single multiple token beer. That doesn't mean none exist; it simply means the majority are one token beers. Nice.

Recommendations
It's a bit of a slippery slope recommending beers to folks who certainly have different likes and dislikes. Plus, I tasted only 30 or so beers, out of more than 100. It's fairly condescending for anyone who hasn't tasted all or most of the beers to recommend anything. Still, I can tell you what I did like.

A good place to start your tasting is with 54°40' Brewing's Ultra Pilsner, an easy-drinking, refreshing interpretation of the age-old German style. This beer's light enough (5.1% ABV) that you could easily drink a full mug. Best move on and return later.

For hopheads, I recommend High Desert Diesel by Sunriver Brewing. This is an Imperial IPA that clocks in at 8% ABV, so be careful. It leans on nine hop additions for aroma and flavor. I'd guess this is a bigger version of the popular Vicious Mosquito, a favorite of mine. Another IIPA, this one from Melvin Brewing, 2X4 DIPA (a whopping 10% ABV), is also a winner.

Some will say a summer beer festival is no place for stouts and similar dark beers. Not so. There are two stellar stouts pouring on the south side, Dragon's Milk Reserve (10% ABV) by New Holland Brewing and Serpent's Stout (11% ABV) by Lost Abbey Brewing. Both are excellent. I also ran into a nice Baltic Porter from Japan's Baird Beer in the International Tent.

With respect to sours, I tasted or shared tastes of maybe 10. Most lacked fruit character and were simply sour. If that's what you're looking for, great. I enjoyed Breakside's Pomegranate Gose (4.6% ABV), which is moderately tart and refreshing. I also liked Green Flash's Passion Fruit Kicker (5.5% ABV), an unfiltered wheat beer highlighted by notes of passion fruit and subtle white tea.

I don't like to dwell on beers that sucked or weren't quite right, but there are always a few. One of the more notable ones was Sagefight from Deschutes. It's supposed to combine citrusy hops with sage and juniper berries for flavor. But it somehow collapses into a murky, bitter mess. Surprisingly bad. I had to dump it. Best avoid.

With all that said, there are plenty of great beers to try. As always, the best times to attend will be Thursday, early Friday afternoon and Sunday. Things tend to be a bit crazy under the tents Friday evening and most of Saturday. There's a lot more info on the event site here. You knew that.

The Irony of Boston Beer's Sagging Fortunes

These are interesting times for the Boston Beer Company, producers of Sam Adams beer, Angry Orchard Cider, Twisted Tea and several other fizzy drink brands. Once upon a time, Boston Beer was one of the hottest commodities around. These days, not so much.

If you watch stocks, you may think Boston Beer is fine. Its stock price rose 15 percent, to $190, last week, thanks mainly to a better-than-expected earnings report. As with all things, it sometimes pays to look a little deeper for a better understanding of what's happening.

Boston Beer financials aren't in great shape. Revenue and profits declined 3 percent and 11 percent, respectively, in the second quarter of 2016. But Wall Street was expecting even deeper declines. Instead of the expected $239 million in revenue and $1.95 per share profit, BB had nearly $245 million in revenue and $2.06 per share profit.

How they managed to generate revenue and profit is an interesting matter, which we shall soon get to. Because Boston Beer sales-to-retailers declined 5 percent in Q2. Shipments were down 100,000 bbls and operating income fell $16 million (23 percent) during the first half of the year.

The only growth in the BB portfolio is coming from outside Sam Adams and Angry Orchard, its best-known brand families. Sam Adams was down 6 percent by volume in IRI through July 10 and the on-premise picture is apparently worse. The Angry Orchard family, a significant growth driver in recent years, took a 20 percent hit. Meanwhile, the Twisted Tea family was up 13 percent.

How do you beat earnings expectations when your flagship brands are tanking? Simple. You cut advertising, promotional and selling expenses. Several reports say $8 million in cuts were spread between media/advertising/promotion and lower freight costs due to lower shipping volumes. Hey, fewer sales can be helpful!

These kinds of things obviously aren't sustainable. Sooner or later, they have to get the big brands moving again. And they know it. The plan, if you want to call it that, is to give Sam Adams a facelift with new packaging and advertising in the second half of the year. They'll also invest in Angry Orchard in hopes of returning that family to growth. At the same time, they expect to further reduce costs. You read that right. They plan to do more with less.

Their prospects are not good. You might say Boston Beer is the victim of its own success. Founded in 1984, it eventually became a national leader in the movement toward better beer. Sam Adams gained a following because consumers realized they were getting a product that was better than the swill sold by big beer. In effect, Sam Adams helped launch the craft beer revolution.

Ironically, the growing popularity of better beer helped spawn an explosion in breweries. Today, Sam Adams has to compete with more than 4,200 craft breweries around the country. Given the opportunity to purchase local beer, a growing number of consumers are doing just that. The result is that many large craft brewers are seeing significant declines. Sam Adams is one of them. I've mentioned this trend several times, most recently here.

The popularity of Angry Orchard Cider undoubtedly helped ease the pain associated with the escalating decline of the Sam Adams family. But the entire cider segment has lost momentum in recent times, thanks largely to the very fickle and promiscuous nature of younger drinkers who have moved on to hard sodas and other flavored fizzy drinks.

It's hard to see a way out for Boston Beer. Chasing the fickle and fast-changing tastes of Millennial drinkers is a sketchy proposition. Even if they reinvent the Sam Adams brands with a robust line of hoppier and seasonal brews, it's tough to see a viable way for them to successfully compete with the increasing number of well-made, local craft beers.

There is, of course, the possibility that Boston Beer could acquire smaller brands. They've bought breweries and brands before. Again, I'm not sure how that would work for them in the current context. They aren't in the same league as Anheuser-Busch, which has a vast distribution network. Boston Beer is a different kind of animal, entirely. Still, they could give that strategy a whirl.

Some of my industry friends have suggested that Boston Beer might be sold. That's a thought. But to whom? We're talking about a company whose most prolific brand families are in virtual free fall. And the challenges are not going away as more breweries open and other competition stiffens. Again, you wonder who would want to buy a collection of brands that are declining in value.

Please don't feel sorry for Boston Beer. The company has made oodles of money for its executives and investors. Founder and chairman Jim Koch has a number of quirky, nuanced views that make him a sort of lightning rod in the industry. But give Koch credit for helping start the revolution that is now squeezing his company out of the market.

You have to appreciate the irony, if nothing else.