Palouse Falls Brewing to Close; Future Uncertain

Despite the fact that craft breweries continue to proliferate around the country and we don't hear much about closures, bad things sometimes do happen...breweries do close. And it often doesn't have anything to do with crappy beer.

One of the breweries I visited several times on my travels to Eastern Washington is Palouse Falls Brewing in Pullman. This business has been operated by the husband and wife team of Jeff and Linda Green for several years. They are great people, highly respected in the community. Unfortunately, they have decided to close the brewery on Dec. 22.

I learned of the impending closure of PFBC on Facebook. You can search for their Facebook page and read the announcement there if you wish. As I write this, there's nothing on the brewery website and the only news coverage I found is behind a subscription firewall on the local newspaper in Pullman. No thanks.

The details surrounding the closure of Palouse Falls Brewing, according to the owners, are these: They learned last spring that they would not be allowed to exercise an option to purchase the property on which the brewery stands...property which needs improvements for the business to move forward. Knowing of the property situation, they recently accepted an offer to sell their existing brewing equipment as a package. You suspect the first circumstance led to the second.

A curious part of the announcement, confirmed in an email from Jeff Green, is they hope to find a new location in the area and reopen. They would then need to purchase the building and acquire new brewing equipment. A lot people in the Pullman area, as well as WSU alumni who often visit, are hoping Palouse Falls Brewing gets a second life. And maybe it will.

The Trifecta
Craft beer fans always wonder about situations like this. We know craft beer has a lot of momentum and brewery failures seem to be rare. Yet it does happen. When it does happen, it's interesting to look at what may have led to the demise. Sometimes you have to read between the lines and look a little deeper. Sometimes not.

The first significant thing to know about PFBC is that Jeff and Linda did not come from a brewing background. Before opening the brewery, Jeff spent 20 years in manufacturing. Linda worked in various administrative and management positions. Neither had brewing experience. The brewery idea came to them as they looked for a viable business opportunity.

The second item rolls out of the first: The Greens never brewed any beer in Pullman. Nope. After an initial source didn't work out, they contracted with Northern Lights Brewing of Spokane (now No-Li Brewing) to provide brewed wort. The finished worts were shipped to Pullman in large plastic vats, transferred to tanks for fermentation and eventually filtered, conditioned and kegged for consumption. This is effectively contract brewing...where you perform the final steps.

Finally, the original concept was a production brewery and taproom with no attached pub or restaurant. The plan was to use a small percentage of the available production capacity to build a following for several brands. They hoped to eventually create enough demand to distribute in kegs and bottles around the region and beyond. A bold plan.

What happened
The fact that the Greens didn't come from a brewing background almost certainly affected their business plan. Launching a production brewery in an area where demand for craft beer is years behind what it is in Portland and Seattle may not have been a great idea. Success in this type of venture requires volume via wide distribution that might take years to build.

Their lack of brewing knowledge did not affect the beers, which were fine. Crimson Pride, a medium-bodied red ale with a balanced flavor, aroma and bitterness, is arguably their flagship beer. It has been regularly available on tap in many locations around Pullman. The other beers were quite drinkable, as well.

However, you have to wonder about the economics of paying someone else to do the bulk of the brewing work. This is especially true when you are already paying for a large production space that is being used for only part of the process. The Greens did a lot of the post-brewing production work in Pullman themselves, so they didn't have a lot of employee overhead. Nonetheless, you have to wonder how the overall arrangement penciled out.

Finally, a production brewery and taproom runs counter to the brewpub model that has been so successful in many places. The reason the brewpub model works is the pub provides an additional revenue stream. If all you have is a brewery and a taproom, you're relying on sales volume in those channels to support your operation. There's also the fact that food is an additional draw for people who aren't going to come in just for your beer. Sure there's additional overhead, but it seems to pencil out for many of these businesses.

It's worth noting that Pullman's other brewery, Paradise Creek Brewing, is a brewpub. I visited when I was there in September and they have a spectacular space (my story here). I don't know how they're doing in terms of profitability, but they have some interesting beers, a few of which are being distributed in kegs and bottles. Their brewing system is fairly small and the marketing plan limited.

The Future of PFBC
If and when Palouse Falls Brewing does reopen, Jeff says it will be in a smaller location with a downsized brewing system. They own the various recipes and brands and would apparently do their own brewing from start to finish in a new location. The distribution plan would be pared down to a more realistic regional target. No word on whether food would be part of any new operation, but you suspect not.

It seems to me the revised plan is the kind of thing that might work. Starting out small and building a following is strategy that has worked well for a number of Portland breweries. Why not in Pullman? There are a lot of people pulling for the Greens to succeed, as much because they are great folks as for their beers. Hopefully, things work out.

Paradise Creek Brewing Transcends Good Beer

A long time ago in what seems like another life, I spent a good many afternoons working at Budget Tapes & Records in downtown Pullman, Wash.. That job was largely a response and partial financial solution to the record buying fetish I had all the way through college. I would eventually manage two Budget stores for a time.

Street view of the Old Post Office in Pullman

Not far from the record store in those days was the Post Office. This was the late 1970s. I suspect the mail volume going through that place exceeded the building's capacity long before a new Post Office came online. Anyway, the classic structure became known as the Old Post Office and housed a video store and theater during my years as a graduate student in Pullman, 1983-88. In 2003, the building was added to the National Registry of Historic Places for Whitman County. See, Pullman has more than just frigid winter weather.

Today, the Old Post Office houses Paradise Creek Brewery, which opened its doors in 2010. I'll get to the brewing part of the operation momentarily, but it's instructive to note how the business was born.

The lobby features exquisite stone and classic architecture

Some years ago, a gent named Tom Handy bought and renovated the Old Post Office building. Handy had lived in Pullman for many years and worked in Broadcast Communications up on the hill at Washington State University. A fledgling entrepreneur, he initially opened a wine bar and restaurant in the building.

Several years later, he rented a portion of the building to a start-up winery, Merry Cellars. Handy then formed a friendship with Merry Cellars winemaker, Patrick Merry, and the two dabbled in homebrewing. Merry Cellars went on to great success and eventually moved to a larger location in Pullman. When they did, Handy jumped at the opportunity to buy brewing equipment and start brewing commercially.

The dining and bar area is top notch

I stopped by Paradise Creek not expecting much. The sign said they were closed. Strangely enough, the front doors were open. They had forgotten to lock out the riffraff! I simply walked in and started looking around, acting like I knew what I was doing. Within a few moments, I was greeted with a pleasant, "Hello, can I help you?" Of course.

The voice belonged to Scott Mackey, officially the creative director at Paradise Creek. Take a look at the website. I'm quite sure he wrote the bulk of the engaging, funny copy there. I informed Scott that I had come from Portland to investigate the rural brewing scene...that he should take me to his leader. Haha. Seriously, I gave him my blog card and introduced myself.

The copper kettles live in the basement

I'm not really clear on why owning a beer blog should open any doors...indeed, I see fewer and fewer doors opening around Portland and I suspect blogs are largely being displaced by social media (I know, I know...that's another post for another day). Surprisingly, Scott offered to show me around and let me taste the beers. Big score.

Honestly, this is one of the most visually imposing/appealing brewpubs I've seen, and I've seen a few. The old building has been tastefully renovated and retains much of the historic charm. In the lobby, I recalled standing there, waiting to buy stamps or mail a package. The dining area and bar occupies the area where mail was once sorted...and, later, where films were once shown.

Three fermenters smile away

They can have as many as 12 of their own beers on tap. I tasted several beers, including Dirty Blonde, Paradise Belgian Wit, Over the Hop IPA and Sacred Cow Milk Stout. These are all highly drinkable beers. I really enjoyed the crisp flavor and mild tartness of the Wit and the Milk Stout is smooth and full of flavor. There's an extensive list of beers on their website for the curious.

The brewing plant downstairs is home to a 7 bbl system. Three 15 bbl fermenters help them to keep up with onsite demands and limited distribution in the area. They recently started bottling several of their beers and are focused on expanding bottle and keg distribution from Pullman/Moscow and Lewiston/Clarkson into Spokane and even Seattle. We are unlikely to see Paradise Creek beers in Portland anytime soon.

Barrel-aging program in its infancy

Frankly speaking, they will almost certainly need to expand their brewing capacity to fully capitalize on distribution beyond the Palouse area. Because the space they have for brewing in this building is limited, expanding distribution probably means an off-premise production facility. Sounds like a familiar problem and Scott said they aren't exactly sure what they might do about it. Time will tell.

As with most of the places I recently visited in eastern Washington, Paradise is focused mainly on producing a solid portfolio of standard beers and seasonals. The Belgian was a big surprise and really good. They also have a Fresh Hop beer on their menu, and they have initiated as small barrel-aging program, so they are obviously aware of industry trends.

On the other side of the glass...the brewery

I did not partake in any food. Hell, I was an uninvited visitor who happened to get in because someone forgot to lock the door! The menu leans on upscale renditions of standard pub fare. Most of the food reviews I read online were good...something to keep in mind for a future visit.

Paradise Creek has a terrific look and feel. It's clear that a significant amount of thought and effort has gone into building the brewery and business. When I worked at Budget Tapes & Records, I saw a lot of ill-conceived businesses open and fold in Pullman. "Pullman jokes," my boss called them. Well, Paradise Creek Brewing isn't one of them.

Craft Beer Sword Swings on the Palouse

Nothing like a road trip to the other side of the beer world to give you some perspective on what we have in Portland. By "other side of the beer world," l'm talking about eastern Washington...which is where I grew up and went to college. The Inland Empire, as it were.

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A fortuitous discovery in Pullman

As I may have documented in past posts, I was raised on a steady diet of shitty macro. Not really a unique story, I know. I readily admit Lucky Lager was our most popular beer choice in high school...it was cheap and easy to get. Coors and Budweiser were delicacies.

Things weren't much better during my college and grad school years in Pullman, the great tundra...or Palouse Country, if you prefer. By the mid-to-late 1980s, you could find Bert Grant's beers and the occasional Hale's Ale around town. The craft beer movement was taking off in Seattle and Portland, but change was slow in the hinterlands.

The Coug decor, such as it is

One of the last places I would ever expect to find good beer is The Coug, WSU's on-campus watering hole since 1932. Some might describe it as a dump...and maybe it is, but at least it's our dump. For years, The Coug served up a menu of tepid beers, often at bargain prices. Natty Light remains a big seller here for students wanting to get buzzed on the cheap.

Like taverns around the Northwest, craft beers have become a force at The Coug. They now offer more craft beers than crappy macro beers. They've got beers from Elysian, Widmer, Flying Bike and others. I was interested Swashbuckler Ale, a beer that celebrates the hopes of the current football season.

A few of The Coug's tap handles

Swashbuckler is a reference to Mike Leach, WSU's first-year head football coach, and his book Swing Your Sword. Leach has leaned on the pirate motif in some of his quotable comments over the years and the label has stuck. Now the beer.

Harmon Brewing in Tacoma, owned by third generation Cougar, Patrick Nagel, brews Swashbuckler Ale. Nagel apparently hoped to ride the wave of enthusiasm surrounding the hiring of Leach by brewing and marketing this beer. (He beat several other breweries to the punch, by the way.) The more complete story behind the beer is here. Interesting stuff.

The Coug...serving WSU for 80 years

Swashbuckler, the beer, is damn good. I think it's closer to a red than a pale. It features a nice balance of hop aroma, flavor and backbone. You'll only find it in draft form at a short list of places in Pullman and on the westside. Harmon hopes to bottle it someday, but don't hold your breath. If you see this beer on tap somewhere, I recommend giving it a try.

Returning to my original thought at the top, the eastern Washington brewing scene is changing. I've visited several places on this trip and have several more to go. The area is still years behind what's happening in Portland, but what's happening here is positive. I'll discuss some of the specifics over the next few posts. Meanwhile, the research continues...