End of the Road for Portland Brewing

In the olden days of craft beer, one of the first beers that interested me was Bert Grant's Scottish Ale. It was available in Pullman, where I was in graduate school, and also one of the few craft beers you could get in a bottle at the time. There weren't that many around and most were draft only.

Of course, that Scottish Ale was one of the beers Portland Brewing began producing for the Portland market when it opened in March 1986. Contract brewing the Bert Grant beers helped get Portland Brewing off the ground. It gave them a reliable cash flow and, just as important, allowed them to tap into Grant's brewing expertise. 

When Grant increased the size of his brewery in Yakima, Portland Brewing lost the contract to brew his beers for this market. But the Grant beers lived on under different names with slightly tweaked recipes (note that Grant wasn't so sure about the tweaking). The Scottish Ale later morphed into McTarnahan's (the original spelling) Amber Ale, the brewery's most popular beer. 

If you're keeping track, Portland Brewing was the last of Portland's founding breweries to open. It was preceded by the short-lived Cartwright, Bridgeport, McMenamins and Widmer. Of those, only McMenamin's survives in more or less its original form. Cartwright lasted two years, Bridgeport closed in 2019 and Widmer (part of the Craft Brew Alliance) recently sold to Anheuser-Busch. 

We learned last week that Portland Brewing will cease operations in early February. The reasons apparently have nothing to do with the raging pandemic, which has caused widespread disaster in craft beer. That makes sense. Portland Brewing closed its pub two years ago and they were strictly production brewing here since. So its demise has more to do with the state of the industry than the pandemic.

High school buddies Art Larrance, Fred Bowman and Jim Goodwin founded Portland Brewing  The original pub on Northwest Flanders (most recently occupied by the now defunct Rogue) instantly became a popular watering hole and night spot. The space was too small virtually from the start and the brewery eventually moved to industrial Northwest in 1993. The problems began there. 

To finance the significantly larger pub and brewery, the founders sold common stock, They had done that since virtually the beginning and there were many smalltime investors who enjoyed owning part of something exciting. Benefits included a free daily pint. But not all investors were small. Local legend Mac MacTarnahan was a major investor. He gained majority ownership soon after the brewery opened in the new place. By 1998, the MacTarnahan name was used on all branding. 

A few years later, Mac was in failing health and so was the company. The MacTarnahan family, tired of pumping cash into a sinking proposition, sold Portland Brewing to Seattle-based Pyramid in 2004. Minority shareholders, including the founders, were shocked and disgruntled when they received pennies on the dollar for their shares while the MacTarnahan family sucked up the bulk of the proceeds. All's fair in war and business.

The real fun started in 2008, when Pyramid was acquired by Magic Hat. Magic Hat itself was acquired by North American Breweries in 2010. Then Costa Rica-based Florida Ice and Farm (FIFCO) bought North American Breweries in 2012. Sensing the error of the MacTarnahan's branding, the parent company changed the name back to Portland Brewing in 2013.

I always assumed the ownership changes and remoteness led to a muddled strategic vision. That judgment may have been incorrect. It's apparent looking at Oregon numbers (graph courtesy of Jeff Alworth) that Portland/Pyramid was growing its business in the immediate aftermath of the ownership turmoil. During a time when the craft brewery count was escalating rapidly and smaller breweries were beginning to lead the industry, Portland/Pyramid was apparently doing just fine.

The size of the brewery likely made that possible. When the founders moved to industrial Northwest, they installed a 130-barrel brewery. It was a costly leap of faith. They thought they would be brewing large batches of standards like MacTarnahan's for the pub and for distribution. The brewery could efficiently produce a variety of different beers in large quantities. Indeed, the size of the brewery is likely what attracted Pyramid and the other buyers. 

As the brewery count exploded and small batch, experimental beers captured the hearts and minds of craft drinkers in more recent times, Portland Brewing's large brewery became an anchor, not an asset. If they wanted to brew something, they had to make a lot of it. I'm guessing that's why they never really competed for drinkers looking for small batch beers. Instead, they relied on beers that sold well in grocery and c-stores, often at sub premium prices.   

Even though things were going relatively well in 2015, North American Breweries wanted more...or possibly realized what was coming. They hired Robert Rentsch as general manager of Portland Brewing/Pyramid. It was a newly created role and Rentsch seemed like a good fit. He had a solid brand building background at the Craft Brew Alliance, where he worked on the national expansion of Kona and helped launch Omission. 

I talked to Rentsch at the pub one afternoon over a beer. He hadn't been on the job long and wasn't sure or wouldn't say how he was going to attack it. The press release announcing his hiring was vague. It talked about creating a localized, community-based approach and building on the heritage of Portland Brewing and Pyramid. But that kind of approach wasn't really in Rentsch's wheelhouse. He had been successful expanding the reach of brands regionally and nationally. 

But I figured he was a smart guy and he'd find a way to make things work. Things clearly didn't go as he hoped. The brewery saw a decline in barrelage each year after 2014, until it finally hit the skids completely in 2020. When I visited the pub for a corporate event in the summer of 2017, I could tell that things were not going well. It was no surprise when the pub closed in late 2018. 

The impending closure of the brewery evidently means Portland Brewing's brands will soon be history. Production of FIFCO brands will move to New York and shipping beers from there to Oregon probably isn't in the cards. I suspect only MacTarnahan's would have any commercial value and perhaps someone here will gobble it up if and when the trademark lapses. That's what happened when Portland Brewing let the Portland Ale trademark lapse. Art Larrance snapped it up and started brewing it at Cascade. Could that happen with MacTarnahan's? Time will tell.

The demise of Portland Brewing effectively closes the book on the early craft brewing days here. For sure, McMenamin's carries on. But McMenamin's is known more for its grandiose properties and the events it hosts than it is for its beer. It's somehow fascinating to me that the big three will all have vanished on about the same 35-year timeline. Bridgeport, 1984-2019; Widmer, 1985-2019; Portland Brewing, 1986-2021. 

My memories of Portland Brewing, outside MacTarnahan's, are vague. I visited the original pub on Flanders only a handful of times after I arrived here in 1989. I spent far more time at Bridgeport during that era. My fondest memories of Portland Brewing include an Octoberfest celebration held in the area around the pub circa 1995-96 and also of going there for lunches and dinners in the 2000s. 

Besides being on the ground floor of the craft beer movement in Portland and Oregon, the most significant contribution of Portland Brewing and the other founding breweries is that they were a learning and proving ground for brewers and others who subsequently contributed to the industry's development in a variety of ways. 

So long, Portland Brewing. Thanks for the memories.

Local Relevance: the Latest Catchphrase in Craft Beer

It can easily be argued that local appeal was a huge part of what got the craft revolution off the ground. The demand for locally grown and processed food was underway by the 1980s and it extended to beverages, including coffee and, yes, beer.

The way the movement presented itself early on, at least in beer terms, was a vibrant homebrewing culture. The beers being made were local and that became a big part of their identity when those homebrewers opened breweries. You know who they are.

It's largely a forgotten detail now, but Portland's early craft (then known as micro) breweries leaned heavily on the local angle to sell their product. Doing so fit nicely with the highly provincial nature of Portland. Customers, drinkers in this case, were increasingly attracted to local beers.

As time went by and the early breweries became successful and grew, they looked outside Portland and the Northwest. We saw this with Widmer, Portland Brewing and Bridgeport. In fact, the urge to explore lucrative markets outside core areas has been a theme in the craft beer industry of late. These efforts are not without risk and they don't always pan out. But they are a reality.

So I have to admit I was surprised when I interviewed the folks at Bale Breaker Brewing a couple of months back. They were determined, as part of their business plan, to own their core market in rural eastern Washington prior to chasing the lucrative Seattle-metro market. Some told them there were nuts, that people "out there" don't drink craft beer.

As it turns out, Bale Breaker has been highly successful with their core market strategy. They were unable to keep up with demand for their beer from the day they opened in 2013, and the great bulk of that beer was sold locally. They've since moved into Seattle and the rest of Washington and Oregon is on the horizon. But they say their greatest strength is their home market.

It seems some of the larger breweries are starting to come full circle on the local concept. There's some definite irony attached to that notion, given the fact that all of these guys started out small and local before expanding into distant markets. But never mind.

For many years, Portland Brewing/Pyramid largely ignored its core market on the West Coast and focused on building its brands elsewhere. Those efforts netted mixed results for a variety of reasons. Now they're shifting direction.

When I interviewed Rob Rentsch, the new general manager at Portland Brewing/Pyramid, he talked about the strategic importance of reviving the relevance of his brands in the local and regional market. He was hired specifically to make that happen, and it's a difficult task given the extent of the neglect over so many years. We'll have to see how it goes.

Now I see, via an article in Brewbound, that the Craft Brew Alliance is also focused on the local angle. As you likely know, the CBA is comprised of Widmer, Redhook, Kona and Omission, as well as some partner brands. In the case of Widmer and Redhook, both legacy Northwest brands, the CBA hopes to achieve greater local relevance.

This is a fairly interesting development. Recall that CBA brands enjoy access to the nationwide Anheuser-Busch distribution network. You're app to find at least some CBA beers almost anywhere in the country thanks to that arrangement.

What they've evidently learned is that only Kona has broad national appeal. Perhaps this is because so many smaller breweries are opening up and attracting locals. In that scenario, the people buying Kona are buying an image. It's similar to Corona, which sells well due to its connection to place. Anyway, the CBA will continue to support Kona nationally via a strong advertising campaign. Makes sense.

Widmer and Redhook are where the big local/regional action is. The approach to seasonal releases will be refined with both brands. Widmer Hefeweizen will hit Oregon shelves in cans next March, a move they hope will boost interest in their flagship beer. There's no hint of it in the article, but Widmer will likely do more with its specialty program, which is under-appreciated.

Redhook is a more substantial challenge. Established in 1982, it is the oldest surviving Northwest craft brand. And it has been neglected and mismanaged for years. Part of the plan to revive the brand is retro packaging, an effort to remind consumers of what Redhook once was. Lipstick on a pig, if you will. Then there's American Pale Ale, set to be released nationally. What?

As with Widmer and Portland Brewing, Redhook's path to local relevance will demand effort on the specialty front. Today's vibrant brands are built in beer bars and at festivals and tap takeovers. You cannot reach that audience with mainstream brands. And you have to understand that grassroots marketing like this is intended to generate buzz and credibility. Sales will take time.

Do the established brands have the dexterity and the commitment required to execute the kind of plan that will result in renewed local relevance? I have my doubts, But we shall see.

Rentsch Tasked with Lifting Portland Brewing/Pyramid

One of the big challenges in craft beer today is staying relevant in a hyper-competitive marketplace. That reality has driven some breweries into the arms of big beer, hoping to tap the benefits of economies of scale. Of course, that's not an option open to all.

As I've suggested in prior posts, the need to appear relevant falls heaviest on established breweries that don't have the sex appeal of new kids on the block. It's an ironic twist of fate, I think, and also a fine example of the ADD beer culture that values and pursues anything new.

Two established Oregon breweries that have done a decent job of staying relevant with the beer crowd are Widmer and Deschutes. Even though they sell an enormous amount of beer in mainstream stores, both produce specialty and experimental beers that keep them relevant in the beer geek community. It's smart business.

The flip-side of that story is Portland Brewing, a nice example of an established brewery that has not migrated with the times. It sells a decent line of beers in grocery stores and, in fact, I would argue these beers represent some of the best values in the marketplace. But Portland Brewing and its parent/partner Pyramid have almost no standing when it comes to experimental and specialty brews. They are effectively irrelevant within the beer geek community.

Some brief history. Portland Brewing was founded in 1986 by Art Larrance, Fred Bowman and Jim Goodwin. It was the last of Portland's four founding breweries to open. The pub on Northwest Flanders was too small virtually from the outset and the brewery eventually moved to its current location in industrial Northwest in 1993.

Portland Brewing experienced financial distress early on. The founders sold common stock to finance expansion. Around the time they moved to new digs, local legend and investor Mac MacTarnahan gained control of the company. Yes, their most popular beer, McTarnahan's (the original spelling) Amber Ale, was named for him.

By the early 2000s, Mac was in failing health and so was the company. The MacTarnahan family, tired of financing a losing proposition, sold to Pyramid in 2004. Portland Brewing was soon rebranded as MacTarnahan's Brewing. In 2008, Pyramid was acquired by Magic Hat, which was itself acquired by North American Breweries in 2010. Then Costa Rica-based Florida Ice and Farm bought North American Breweries in 2012. Sensing the error of the MacTarnahan's branding, the parent company changed the name back to Portland Brewing in 2013.

Needless to say, heads have been spinning at Portland Brewing for years. The lack of ownership continuity may help explain the failure to follow industry trends and develop a portfolio beyond the standard beers. OLCC stats suggest they've been doing just fine with their beers and the pubs certainly make money. It appears no one was paying serious attention to the big picture.

Hoping to enhance recognition of the two brands, North American Breweries recently hired Robert Rentsch as general manager of Portland Brewing/Pyramid, a newly created role. Rentsch has a solid brand building background, most recently at the Craft Brew Alliance, where he drove the national expansion of Kona and helped launch Omission.

We talked over a beer the other day at the Portland pub. Rentsch has been on the job only a few weeks and isn't quite sure how he'll attack the challenge he took on because, "It seemed like the right opportunity at the right time." It's not that he was unhappy at the CBA. He just wanted to take full ownership in something, which is what this gig offers.

The press release announcing Rentsch's hiring is pretty vague. It talks about creating a localized, community-based approach and building on the heritage of Portland Brewing and Pyramid. That's all real nice, but I had to ask, "Where's the beef?"

"At this point, there isn't much to tell," Rentsch said. "I'm still evaluating things and developing a plan. I can say North American Breweries is committed to supporting the program we put together. Nothing will happen overnight, but I'm confident in the team here and our ability to build on what we have with the two brands."

It will definitely take time. They will have to create an aggressive specialty program, among other things. Portland Brewing doesn't have the means or dexterity to do that quickly. A fresh hop rendition of MacTarnahan's Ale at the pub was pretty lame. Pyramid does have a small batch series, and I've tasted a least one terrific beer from it. But that program is small and they will have to do a whole lot more in this area. To say nothing of the guerrilla marketing campaigns they will have to launch in support of the beers.

Rentsch knows he faces a big challenge. He apparently liked that about this role. In a community where new breweries open regularly and instantly attract the interest of the beer crowd, long-established brands are, he realizes, up against significant obstacles.

Whatever happens with Portland Brewing will be a work in progress. It ought to be interesting. Good luck to Rentsch and the crew there. I'll be circling back at some point.

Pyramid, Laurelwood brew up nice CDAs

If follow this blog at all, you know I am not fond of the black IPA name. Why so? Because I think it's an insult to the English language. IPA nominally stands for India PALE Ale. Pale typically means light in color. How can you have a black pale ale? The answer is simple: You can't. It doesn't make sense.

So why are some breweries creating black IPAs? I suspect there are many reasons. But the most logical explanation is they wish to capitalize on the popularity of IPA while producing a darker beer. This is especially true during the winter months, when patrons are accustomed to drinking darker brews.

Get them now...they don't grow on trees

Of course, some brewers recognized the fallacy of the black IPA name long ago. They have steered away from it. That doesn't mean they're steering away from the style. But the beers in this segment are increasingly known as Cascadian Dark Ales (CDA) or Dark IPAs. Makes more sense.

Readers unfamiliar with this style can find a fairly compact discussion here. Matt Van Wyk, brewmaster at Oakshire Brewing in Eugene, talks about the confusing nature of the naming nomenclature and also looks at the characteristics of the style. Worthwhile reading, for sure.

Briefly, Cascadian Dark Ale or Black Ale or Dark Ale is a moderately hoppy beer with a medium malt backbone and a dark complexion. Significantly, the style does not possess the strong roasted malt character of a stout or strong ale. CDA leans heavily on hop aroma and flavor, with mild bitterness (50-70 IBU).

The style is an expanding segment. Here in Oregon, it is well-represented by Deschutes (Hop in the Dark) Widmer (Pitch Black IPA), Hopworks (Secession CDA), Bridgeport (Black Rain), Oakshire (CDA), Full Sail (Bump in the Night) and many others. I took some time to taste a couple of CDAs this week.


Pyramid Discord 
One of Pyramid's newer seasonal beers is Discord, which has been around for a couple of years. I made the mistake of assuming it must be mediocre because it's inexpensive and made by a brewery whose beers I have largely ignored in recent times. Wrong! You cannot judge a book by its cover

Let me back up. Pyramid Brewing has taken a beating for what I would describe as "off branding" in recent years. No need to go into significant detail, as the shortcomings of the rebranding that took place in 2009 have been well-documented. If you want to know more, Jeff Alworth (Beervana) does a nice job here.

Look for this label on store shelves!

The basic premise going forward is that Pyramid has returned to its roots with its beers and branding. You'll notice the packaging has returned from oblivion by dumping the neon colors and what Jeff describes as "cringe-inducing names." You'll now see more traditional artwork, retro even. Same goes for the beer names.

Anyway, Discord is a very nice beer. It may not be a big as some of the tweaked versions of the style, but it's quite good. The Pyramid brewers use four hops for bittering and flavor, three more for dry-hopping. Discord comes in at 6.5% ABV and 69 IBU.

The bad news is this beer will only be available through the end of March. My advice is to go forth and find it. Even if you are only a middling fan of the style, you will love this beer. It's a great beer and a great value. On a quick trip to Freddy Meyer and I found Discord bombers for $2.47; six packs were on sale for $7.99.

Laurelwood Ink Heart
Laurelwood, which is in my hood, hasn't had branding challenges like Pyramid. They've got a rather earthy brand presence, as suggested by apparel that features chickens, trees and a lot of organic messaging. They have also built a solid portfolio of standard beers, including Workhorse IPA, Free Range Red, Tree Hugger Porter and Space Stout.

If you're keeping track at home, you can add Ink Heart CDA to the Laurelwood beer line. This is one of their seasonal offerings, and should be available now through the end of May. Ink Heart is a well-balanced beer. It's deep brown in color, but really has none of the harsh roasted flavor you might expect. Hops are present in the nose and flavor; bitterness is restrained.

Another one to look for while it's out there

Laurelwood brewmaster, Vasili Gletsoes, says they used Midnight Wheat malt in Ink Heart. Midnight Wheat has no husk, and it is the husk that often produces harsh bitterness in darker beers. Indeed, Midnight Wheat was designed specifically for the CDA style. It adds color and head retention, without imparting harsh flavors. Can you say smooth beer?

As for the hops, they used a combination of English and American hops to create an earthy, citrus profile. The actual hops used: Columbus, Northern Brewer, Kent Golding, Simcoe and Amarillo. Ink Heart stats: 7.3% ABV, 60 IBU.

Ink Heart will be available on draft here and there around town. Baileys tapped a Firkin on Thursday evening, Vasili told me. You'll be able to find it in bottleshops, as well as New Seasons and Whole Foods. Some Freddy Meyer locations will also have it, depending on what kind of beer selection they have.

Find these beers. They won't disappoint.