By Christopher Morehead
For the Oregon Beer Growler
November is here, which means two things. First, you’ve probably recently tried a new pumpkin beer. Second, it’s the middle of fantasy football season, and you can bet that employees are spending work time managing their fantasy team.
According to a 2016 study conducted by Challenger, Gray & Christmas, employers across the country suffered an estimated $17 billion in lost wages due to employees working on their fantasy football teams while on the clock. That number is based on an estimated record 57.4 million fantasy football enthusiasts — 38.5 million of whom are employed full-time — taking an hour out of each work week for the course of the 17-week fantasy season. Those numbers have been growing annually across demographics, particularly with the enhancement of smartphone technology. Simply put, employees at all levels are generally spending more work time trying to find that next waiver wire player that will push their team — probably named something corny, like “Belichick Yo Self” — over the top. After all, bragging rights over Bob from receivables is on the line!
Realistically, some employers probably don’t know (or even care) that much about the impact of fantasy football on their employees’ productivity. But if you are legitimately concerned that employees are spending company time deciding whether to sit or bench Marcus Mariota on their fantasy team, there are few options that some employers have used over the years to address the issue.
One option is to ban fantasy football in the workplace altogether. Employers may lawfully demand that employees focus exclusively on their job duties during the workday and discipline those who play fantasy sports while working, provided such actions are done on a consistent basis and in accordance with clear, written company policies.
Of course, you should also understand that employees can just as easily use their iPhones to manage their fantasy teams. Many employers have realized that using this approach doesn’t really get them anywhere, and so it is not usually recommended go this route.
If that level of enforcement sounds too authoritarian and isn’t in line with your company’s culture, perhaps you are willing to accept the reality that many employees will, inevitably, check Facebook, Twitter and Instagram regularly. So if employees tweak their fantasy football lineup just prior to kickoff, you’ll realize that isn’t that much different than popping into a social media site.
Provided that expectations are still being met, why discipline an employee simply because he or she is managing a fantasy team? You might even check your own social media accounts while on the job. A workplace with managers who set the same expectations for themselves as they have of their subordinates is generally appreciated and fosters loyalty.
Some employers even go the extra distance and organize office fantasy leagues. Studies have suggested that short periods of unproductiveness can actually have positive impacts, like increasing morale and long-term productivity. In fact, if you’ve ever participated in an office league or an NCAA basketball tournament pool, you may have already experienced beneficial results. Of course, if you do organize an office league, it’s important to make sure people don’t go overboard with smack talk. A little banter is fine, but you don’t want anyone to turn into a real life Terry Tate, Office Linebacker.
The bottom line is that fantasy football in the workplace does impact overall productivity. Just make sure that when you choose how to address it, everyone is on the same page.
Chris Morehead is an attorney in the Portland office of Ogletree Deakins, a national labor and employment law firm. He focuses on hospitality employers, with an emphasis on the craft beer industry. He can be reached at firstname.lastname@example.org or 503-552-2140.
By Ezra Johnson-Greenough
For the Oregon Beer Growler
In March, Portland’s Metalcraft Fabrication shut down after facing a federal lien, causing the company’s bank funds to be emptied, according to industry insiders. Owner Charlie Frye acknowledged the bank had closed accounts, but did not address this specifically when asked for comment.
The closure came as somewhat of a shock since Metalcraft was one of the greater success stories in Oregon’s craft beer industry. Co-owner Charlie Frye came from well-established manufacturer JV Northwest to found an innovative brewery-centric fabricator. Metalcraft reportedly made more than 1,000 tanks for businesses in 30 states and three countries in the last 10 years, including equipment for some of our state’s best breweries like Breakside Brewery and pFriem Family Brewers.
Many are left wondering how a company that was once praised by beer makers and business journals alike can suddenly close and see some of its relationships with clients go sour.
Charlie Frye and his then-wife Jen Baque opened Metalcraft in 2007, starting off welding furniture and building facade components before picking up work fixing tanks and equipment for breweries. By 2015, the business expanded by moving into a huge new warehouse to become one of the few U.S. fabricators that could make larger equipment — tanks more than a couple hundred barrels and brewhouses beyond 30 barrels. And just last year, Metalcraft teamed with Pelican Brewing Company to develop a new dry-hopping method. The resulting “Hopinator” received a rave review from brewmaster Darron Welch, who said Metalcraft “perfected a design that was exactly what we wanted. Not every fabricator would have been that patient.”
However, it wasn’t long after that when Metalcraft began scrambling to keep the doors open long enough to finish millions of dollars’ worth of projects.
“A number of factors contributed to Metalcraft’s demise,” said Frye in my original article breaking the closure for newschoolbeer.com, “the greatest one being several unforeseen challenges associated with our expansion.”
Metalcraft entered the brewery fabrication business at just the right time — before the big boom that would become the industry’s largest period of growth, post-2010. Growth was quick and used equipment became scarce, which led to longer lead times and down payments. Industry sources familiar with the matter indicated these upfront down payments ranged from 15-40 percent.
“The company got themselves into a cash crunch,” said Thad Fisco of Portland Kettle Works, another local fabricator that has offered to help finish Metalcraft’s work for clients. “[Metalcraft] ignored some basic fundamentals to maintain cash to finish deals. You begin to burn those deposits to finish projects that were contracted previously.” There are no rules against operating this way.
According to Fisco, this is “unfortunately not an uncommon occurrence in the manufacturing industry.”
The practice of taking on new jobs and even discounting them in a mad dash to use that money to finish past work that may not have even gotten underway “unintentionally turns into a Ponzi scheme.” Fisco says this is a critical issue for the industry overall and one that he expects could cause a few more fabricators to go bankrupt.
You might be wondering if this has anything to do with the unsustainable growth of the craft beer industry. Yes, a little. As brewers get bigger, and some more desperate to compete, they may plop down huge sums of money upfront without checking a fabricator’s creditworthiness.
Meanwhile there is mounting competition from China where fabricators routinely offer a cheaper but lower-quality product. Some American companies have even stooped to selling Chinese equipment and marketing it as U.S. made, according to Fisco. However, the larger the tanks, the higher the shipping costs, and that can decrease margins and any competitive advantage.
According to comments Frye made to me in March, he laid off 35 employees, which would’ve been a significant cut to the 50-60 people he reported would be hired by 2015. He also hinted at some financial mismanagement, saying “a business owner should always be aware that their finances are in order and those trusted to manage them are qualified to do so.”
Frye declined to answer additional questions, stating “I'm not prepared to give any more interviews at this time.” For now, then, it’s impossible to know the full story of what happened to Metalcraft. But its failure is bad for both the brewery fabrication business as well as brewers and should serve as a wakeup call to each.
When fabricators go bust, some brewers who have sunk large sums of money into equipment will have invested too much to recover. That may include some of Metalcraft’s clients. Bill Baburek of Infusion Brewing Company in Benson, Neb. is one of those affected by the closure. “They took $45,000 dollars in deposit money from us in late December,” Baburek said, “for a $60,000 tank order, and now we get nothing for it!”
“If another company the size of Metalcraft or bigger goes down, it’s going to be a big deal,” warned Fisco. “It starts to tear the fabric of the system that is in place ... people that are looking to buy right now should take a moment to check the credit of the people they are looking at doing business with. Find out what’s going on with the business before jumping in with both feet.”
By Anthony St. Clair
For the Oregon Beer Growler
It used to be that you just had to make good beer, but in today’s competitive industry good beer isn’t even a starting point. That’s why, in 2013, Oregon State University’s Professional and Continuing Education program (PACE) began offering their Craft Brewery Startup Workshop as a way to give fledgling brewers a boot camp-style overview of all the essentials of launching a brewery.
“There is so much more to the craft brewery business,” says Emily Henry, PACE program manager. “Our workshop covers all of those topics and ties together the business and production sides of the industry in a compact format.”
This year’s workshop was held in Eugene Feb. 25 through March 1, with the first three days at Lane Community College’s Center for Meeting and Learning, and the last two days at Ninkasi Brewing. Twenty people from Oregon and at least nine other states — including one student based in Central Asia’s Kazakhstan — came to learn from experts who had experience in everything brewing. Topics ranged from licensing and following regulations to ingredient and equipment sourcing as well as building a company culture.
“I attended the workshop to gain a three-dimensional insight into what it takes to operate, run and keep a brewery running successfully,” says Laura Dunn, who along with her fiance co-owns startup G Town Brewery in Greenville, Texas. “I am at the beginning stages of my brewery setup and wanted to gain as much knowledge as possible to know what I'm getting myself into!”
The first portion of the workshop highlighted the business and entrepreneurial aspects of planning and starting a craft brewing enterprise, including brewery case studies, with the goal of preparing students to draft or enhance their business plan. During the second portion, Ninkasi founders and key personnel offered their insights, along with stories of the good, the bad and the ugly of Ninkasi’s 10 years in the business. The course finished up with interactive sessions and a panel discussion. Course instructors were also available to review student business plans.
“You learn about ingredients, talk to real brewers. This is a good crash course for exposure to all those key areas,” says Ninkasi CFO Nigel Francisco, one of this year’s instructors. “It’s hands-on. They see the equipment, talk to the people who brew the beer and source the ingredients. They hear about our pitfalls and successes, and then can apply them to their own business.”
PACE and Ninkasi have collaborated on the workshop for four years. Henry credits the partnership’s success, in part, with Ninkasi’s willingness to pull back the curtain and give an in-depth look at the logistics of running a brewery, with sessions led by their CFO, COO, co-founder and Technical R&D and Quality team.
“Ninkasi has had tremendous growth over the last 10 years while also maintaining their core values and ethics as a business,” says Henry. “They stay true to themselves, both in their business and in their beer, and it is amazing for our upcoming craft brewery owners to see this success and the thoughtful management that is behind it.”
The workshop allows prospective brewers to “hear the challenges and opportunities in the industry as we see it in our position,” says Francisco. He credits co-founder Jamie Floyd’s background in brewing as helping Ninkasi weather startup challenges and growing pains, which may have been harder had there not been someone who was familiar with the ups and downs of the industry. “You have to think about strategy, legality, regulation, work force, how to run a brewery or pub,” says Francisco. “You might make a great beer, but when you take that next step you have to be able to make it all fit together.”
For Francisco, he knew that giving brewers insight into the financials would be a needed perspective. “You can’t grow 100 percent year-over-year for 10 years, so how do you plan for that?” he asks. “What’s a sustainable growth percentage, and what does that mean to you? Do you want to be small, big, boutique, have more locations? Pick what you want and match your strategy to the brewery you want to be.”
After all, sometimes people get into brewing simply because they want to make beer — but there is a world of difference between brewing beer and running a brewery. Many of this year’s students found the workshop eye-opening in regards to the business side of running a production brewery or brewpub.
“I gained the confidence to push forward with my business with more knowledge and expert advice,” says Texas startup co-owner Dunn. “Everything from legal information to how to design my brewhouse. I learned things I didn't even think of, such as having a ‘concept’ and the strategic planning to help organize and prepare my brewery.”
Perhaps even more important is understanding that while there are others in the industry who are willing to help, your operation ultimately is your operation — from compliance and sanitation to payroll and personnel. “Nobody is going to do these things for you,” says Francisco. “The buck stops with you.”
That’s one of the many things Laura Dunn is taking back to Texas. “It was brilliant and I would recommend anyone who is thinking of starting their own brewery business to take this course,” she says. “I came out feeling much more prepared.”
Other OSU PACE Beer and Cider Workshops:
Beer Quality and Analysis Series May 15 through June 19, online, June 19-23, Corvallis
Craft Cidery Startup Workshop June 11-15, Portland
Cider and Perry Production July 17-21, Corvallis
Origins of Beer Flavors and Styles — Check website for next year’s dates.
By Jim McLaren
For the Oregon Beer Growler
Alex Kurnellas remembers the first time he and Shawn Stackpoole said “I do.”
“I think, she was hesitant. I was really gung-ho … then I got really, really scared — like ‘Oh my God, what if this doesn’t work?’”
At the same time, Shawn was thinking this was the last chance to back out.
“Yeah, I couldn’t see what was in his mind. The idea he had. The passion. Not that I doubted him, but I doubted if it was going to work or not. You know, there’s so much beer already.”
On a January afternoon, there is a light snow dusting Southeast Division Street in Portland. Despite steel-gray skies, the glass-walled Imperial Bottle Shop & Taproom is bright and comfortable. And Shawn and Alex are telling their love and beer story.
Their “I do’s” involved signing a lease for their shop space.
“There was really only one moment when we looked at each other — right before we signed the lease and thought, we could back out now. That’s the only time we ever talked about it.” But they decided, “We’re so close, let’s do it. You live once. If it doesn’t work, we’ll learn from it. If it does work, we’ll learn more from it.”
Shawn and Alex were a reluctant couple to begin with. They met through friends while living and going to school in Santa Barbara, Calif. Their friendship was built on similar interests and liking the same music. But romance took longer. After several years, despite the prodding by friends, Shawn thought, “Why ruin a good friendship?” Eventually, she relented. “We enjoy each other. He makes me laugh and that was six years ago…”
The change in relationship status included the move to Portland; the couple was a little bored by Santa Barbara. The beer lovers also thought the Rose City beer scene was more diverse. That, along with Alex’s childhood, should have been a clue about what would come next. Raised in New Jersey, he had seen both his father and grandfather open and run diners.
“I grew up in a restaurant for the most part,” Alex says. His intuition for operating the taproom impressed Shawn and most likely led her to follow him willingly into an arrangement that can be treacherous for a personal relationship. People often advise against mixing business and love. But think of this way: the business is like marriage, the store is like a child.
Shawn admits, “It’s been a challenge, as is anything in life but…”
Alex, as what often happens with couples, picks up the thought. “Because not only are you working with that person, but all of sudden you got in an argument at work and you take that home because you are with that person. So it’s your whole life. At first it was hard for us. I was working 100-hour weeks, Shawn was working 60-, 70-, 80-hour weeks, so all the time we spent together was at work. Our relationship really suffered. We had a work relationship, but not much of a loving relationship. But after a year, a year-and-a-half, we started to find time for us. I started learning to not talk about work when we went out to dinner.”
“But we’d get about 30 minutes into dinner and something would come up. We’d have to reel it back in,” Shawn adds.
Both credit their long, pre-romance relationship with laying the foundation for how well they work together. Alex says, “I could not imagine doing it without Shawn.”
Shawn sighs and says, “You’re going to make me cry.”
Success with the 4-year-old store has added something else to their lives.
“We are lucky,” Shawn says. “We’ve been accepted by the neighborhood. I enjoy hanging out with people I’ve met at the bar.”
Alex continues, “It’s been a really enriching experience for both of us. A lot of the people that are our friends, that we see on a daily basis, are people who we met here as customers — are people we would never have met because they are different ages, have different interests. But we got to meet them through the business.”
So, you’re probably asking — what about saying “I do” at the altar? Well, Alex says he’s ready. But Shawn? “I can’t commit to what I want for a wedding. Do I want to just run off? Do I want to have a big party? I can’t decide.”
*** When you go to Imperial, ask about the “Star Wars” mural inside the front door.
Imperial Bottle Shop & Taproom
3090 SE Division St., Portland
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