By Pete Dunlop
For the Oregon Beer Growler
One of Portland’s newest beer stops is Second Profession Brewing Company, now open on Northeast Sandy Boulevard in the space formerly occupied by BTU Brasserie. Owner Charlie Goman, a homebrewer with Wisconsin roots, hopes to build a following based on the German/Northwest gastropub model.
“I started homebrewing about 10 years ago,” Goman said. “About five years ago, I started to take it seriously. I love making beer and I hope Second Profession will provide a unique experience for visitors with good beers and comfort food.”
Beer fans will recall BTU, which operated for a couple of years as a brewpub with Chinese-style food. It was an interesting concept, but the owners were never quite able to successfully meld the business' two identities. BTU shuttered last spring. A sign on the door said, "Closed for Spring Cleaning," but the place shuttered permanently and went up for sale.
Goman saw instant potential in a location with a brewery already installed. He had become bored with his career in copier sales and IT-related work. At 28, he started looking at options. One day while brewing an IPA, it dawned on him that maybe beer making was his future.
“Stumbling on the mothballed BTU space was a stroke of luck. It's no small thing to find an arrangement like this,” he said. “It means I didn’t have to come in and spend a ton of money on brewing equipment and building prep. Having operated as a brewery, this place was ready to roll.”
The pub layout is pretty much as it was in the BTU era. It's a bit brighter now, with white walls and modern-themed German folk artwork. The sidewalk patio on the eastside of the building remains. The brewery, a 7-barrel system, has been cleaned up and tuned up with the assistance of Marc Martin from Northwest Brewery Advisors.
“Marc has been amazing,” Goman said. “He made a few slight fixes and changes to the brewing system and has been a great resource for recipe development and techniques. He helped me scale up my homebrew recipes up to commercial level.”
The beers will include a mix of standards and seasonals. Recent offerings include a rye IPA, a pale ale, a farmhouse ale and a hazy IPA. The brewery has horizontal lager tanks and Goman expects to make use of them soon.
“I plan to have five standards and three seasonal/specialty beers on most of the time,” said Goman. “Beyond that, cold room space would be an issue, though I do have a large walk-in where some beer could go. The beers are a work in progress.”
Goman has no plans to enter outside distribution anytime soon, beyond growlers and crowlers sold in the pub. He hopes to develop a good collection of beers that build a following. Eventually, he may send some of his more well-received styles out to notable beer bars and pubs to extend identity reach.
“Packaged beer isn’t part of the plan,” he said. “I know my primary profit center is in-house, not in distribution outside the pub, so that’s where the focus will be.”
Food will be a crucial factor. The clientele in this underserved area is more likely to be attracted by food than by beer, regardless of how good or bad the beer is. Goman intends to offer simplistic German comfort food, a concept connected to his experience living in Wisconsin.
“We’re not looking to imitate Gustav’s or Stammtisch or Prost,” Goman said. “Our menu will include a selection of sausages, warm potato salad, garlic fries and some greens. We want customers to get a hearty meal, but we’ll be big on simplicity.”
The name has been the subject of interest on social media and some blogs. “Second Profession” doesn’t pack a lot of excitement. But Goman's sees the brewery as his second career. It's personal and, on that level, it makes good sense.
Second Profession opened in early October and operated on a limited beer and food menu for the first couple of weeks. Both menus have been expanded. The pub is open 4-10 p.m. Wednesday through Saturday and 4-9 p.m. Sunday. Happy hour runs 4-6 p.m. each day.
Second Profession Brewing Company
5846 NE Sandy Blvd., Portland
By Dustin Gouker
For the Oregon Beer Growler
The craft beer scene in Central Oregon is constantly evolving, with new breweries and events every year, and changes to the existing ones. Here’s a look at what to watch for in Bend-area brewing and beyond.
The most anticipated craft beer attraction in Bend for next year is an easy one: the coming brewpub from Boneyard Beer. One of the biggest beermakers in Bend has skipped out on having its own brewpub until now, with just a tasting room for samples and growler fills. But it has plans to open a pub on Northeast Division Street in the first half of 2017, after initially hoping to launch in 2016. Co-founder Tony Lawrence says patrons can expect to see 16 beers on tap — mostly Boneyard but a few guest taps, too — along with food, outdoor seating and a specialty cocktail bar. Also in 2017: Look for bottle-conditioned sours from Boneyard sometime in the first quarter.
10 Barrel’s Expansion
The Anheuser-Busch InBev-owned craft brewer is in the midst of a major expansion — more than 60,000 square feet — on the east side of Bend that will more than double its current space. While most of that new room is dedicated to production and distribution, The (Bend) Bulletin has reported that a restaurant and outdoor patio are part of the plans, although 10 Barrel Brewing has been mum on the details.
The Hopservatory — a giant telescope run in conjunction with the Oregon Observatory at Sunriver — should be open by January. Part of a major construction project at Worthy Brewing Company, the telescope is definitely the most unique offering from a Central Oregon brewery. Both public and private tours of the facility will be available for a fee.
Bend Brewing’s Beer Garden
Bend Brewing Company is hoping to have its outdoor space open for business by summer. After years of being surrounded by empty lots, it should be a big upgrade for one of Bend’s oldest breweries. The beer garden is likely to feature a pouring station, a fire pit and an area for live music. Bend Brewing is also actively looking to increase its production and distribution, so you may be able to find its beers on more taps in the not-too-distant future.
Prineville’s Second Brewery
Crooked River Brewing won’t be offering up its own beers when it opens in January, joining Ochoco Brewing Company as the second brewpub in the town. But it will have more than a dozen craft brews on tap in its expansive space on North Main Street, according to owner Jesse Toomey. Visitors will also be able to play a variety of games, like cornhole, pool and foosball. Crooked River’s own beer should come sometime in the second half of 2017, once the proper permits and licenses are acquired.
Terrebonne’s First Brewery
Another brewery on tap for 2017 is Terrebonne’s Good Earth Brewing. On the site of Smith Rock Hop Farm, the brewery will use any hops the farm doesn’t sell in its own beers. Good Earth hopes to specialize in styles one wouldn’t normally see in the region: from barrel-aged saisons to kriek lambics.
By Ezra Johnson-Greenough
For the Oregon Beer Growler
It’s the end of an era. Full Sail Brewing’s employees and founders voted in March to sell to Oregon Craft Brewers Co., which is a local investment group formed by Encore Consumer Capital, a San Francisco-based private equity firm. “The votes were returned confidentially to our ESOP attorney. It passed nearly unanimously,” said Full Sail founder and CEO Irene Firmat.
While this news is sure to not make as big a splash as the recent sales of 10 Barrel Brewing and Elysian Brewing Company, it is in many ways more important. Full Sail has been one of the industry’s pioneers and produced more beer (115,000 barrels) in 2014 than 10 Barrel (40,000 barrels) and Elysian (50,000 barrels) combined, making it the 25th largest craft brewer in the country.
Both 10 Barrel and Elysian are also examples of quick growth in a very short period of time, which may have been one of the reasons 10 Barrel was in a difficult financial position and willing to sell. Full Sail has experienced its ups and downs, but has largely avoided pitfalls and continued on a steady stream of growth by going its own direction. Ignoring trends like barrel aging, fresh hops, double IPAs and sour beers (for the most part, though the brewery certainly has dabbled); Full Sail instead focused its energy on recreating the craft lager and session beers, a move that was way ahead of its time. Full Sail’s location in Hood River is also undoubtedly responsible for the explosion in the number of breweries in the town and the entire Columbia River Gorge. Former Full Sail brewers have opened favorites like Double Mountain, Logsdon Farmhouse Ales, pFriem Family Brewers and Everybody’s Brewing.
Full Sail’s growth has not always been smooth. In 1999 the company transitioned into an ESOP (Employee Stock Ownership Plan) rather than be put up for sale. That model has worked well, with other breweries -- most notably New Belgium -- following in Full Sail’s footsteps. Then in 2012, Full Sail lost its Henry Weinhard’s beer contract, which it had held for 10 years with SABMiller. That investment allowed Full Sail to reinvest in its brewery, keep debt low and sustain growth. Full Sail was making so much Weinhard’s beer that the Weinhard’s brand alone was ranked as the seventh largest in Oregon. At that time I worried for the future of Full Sail, but the company re-upped its No. 1 in-house brand, Session.
The Session beer brand by Full Sail may have been the smartest and most successful product launch of any Oregon brewery since the start of the craft beer revolution. Short, stubby, highly-recognizable bottles of cheap (but still craft) tasty, light lager were a huge seller. And the brand has sustained with spin-offs Session Black, Session Fest and recently Session IPA. When growth started to go flat, Full Sail launched the beer into new markets and took Session beer to bar taps for the first time in a move the company said would never happen.
The pessimist might suspect the recent huge expansion of the Session brand was in anticipation of putting the brewery up for sale, driving up production numbers and the value of the company. Though Full Sail Chairman Irene Firmat says that the brewery was approached unsolicited last September, that doesn’t mean the brewery was not preparing for a buyer. Anheuser-Busch paid an estimated $400 per barrel times the annual 60,000 barrel production of Blue Point Brewing when it purchased that company in February of 2014. Given those figures, Full Sail’s estimated value would be $46 million.
As I mentioned before, a pessimist might also suspect that the Full Sail employee vote on approval of the sale was a formality and the sale was a foregone conclusion. Leaving the decision to the employees who own an estimated 58 percent of the company makes for a terrific PR move. Though that is a solid majority, founders Jamie Emmerson and Irene Firmat own 42 percent and would only need a small percentage of employees to agree to the sale. But according to Firmat, “The employee vote was not a sure deal. Jamie and I don’t have a majority position, so even though we felt that this was a very good offer for all our shareholders, it was not a sure thing until the votes were counted. We did an early reveal because once notices went out to 78 employees, we thought confidentiality would be difficult to maintain and it would be better to have the facts out to minimize speculation.”
Still, it would seem the deal was done since Firmat and Emmerson could reverse any “no” decision by the employees as they are the two sole trustees of the ESOP. Not that the deal is a bad thing for the employees who, based on their time at the company, will likely earn four to five figures in the buyout as well as keep their jobs. The other good news is that Full Sail would still be counted among the “craft” brewers as defined by the Brewers Association by selling to an equity firm rather than a macro brewer like Anheuser-Busch.
The bad news is that brewery sales to private equity firms might have a worse track record than those sold to SABMiller and Anheuser-Busch. While the previously mentioned companies’ business is at least making and selling beer, both are only concerned with making money. However, an equity firm will quickly sell off companies to make a buck and has no interest in continuing the products. That seems to be the case here. The formation of a new company called Oregon Craft Brewers Co. distracts from the fact that the real owners are Encore Consumer Capital, a group that holds no other breweries or beverage companies. Oregon Craft Brewers Co. is a brand new formation that also has no history in the industry. While Full Sail posits that its buyer’s lack of experience guarantees the current employees jobs (which may be true), it also underscores a potential turn toward primarily profit-driven endeavors. That could mean cutting costs and raising profit margins on products and perhaps launching into more states or countries.
After raising the value further, Full Sail could be sold off again, following the path of Portland Brewing/MacTarnahan’s, which has been bought and sold a few times and is now owned by a Costa Rican conglomerate. Encore Consumer Capital has an established track record of buying and selling companies a few years later. It has been alternately reported that Emmerson and Firmat would either plan their immediate exit or stay with the company. Firmat clarified this: “We have committed to stay a year to insure that this transition goes smoothly. After that we will see.” After seeing Full Sail through the transition, I think we can expect little substantial change immediately, but I worry what will happen in a few years after they continue to develop the Session brand. Will we see a day in the future where a craft brewery on the East Coast is contract brewing Full Sail beer as it becomes a version of the formerly-prestigious Henry Weinhard’s?
Firmat admits, “It is what they do, but they have a track record of holding on to companies for a longer period of time and, in the meantime, they invest to grow it. Our distributor alignments make a purchase by a big brewer very difficult and more expensive and they are very aware of that.”
Let’s hope she is right. At the very least, Firmat and Emmerson have followed through with their commitment to employee owners, giving them a nice bonus to their 401Ks while making a happy exit for themselves. That is much better than what Anheuser-Busch is offering to the casualties of its acquisitions.
This article originally appeared in The New School.
By Alethea Smartt LaRowe
For the Oregon Beer Growler
Vasilios Gletsos has been brewmaster at Portland’s Laurelwood Brewery since 2011. He recently announced that he is moving back to the East Coast and onto a new job as production manager at the highly-acclaimed Hill Farmstead Brewery in Greensboro Bend, Vt. Shane Watterson, who has worked at Laurelwood for the past four years, has been tapped to replace Gletsos.
This is not the first time that Gletsos has passed the torch to Watterson. That was in 2008, when Watterson became education chair of the Oregon Brew Crew, the state’s oldest and largest homebrewing club, after Gletsos vacated the position. By all accounts it was a successful transition, as Watterson embraced the challenge and started the popular Build-a-Beer project, which taught members recipe design ingredient by ingredient.
Gletsos, who previously worked at the Jantzen Beach location of BJ’s Brewhouse, Rock Bottom Brewery in Portland, and Portland Brewing Company (formerly MacTarnahan’s), came to Laurelwood during a tough period of transition. Besides the challenge of continuously running the 15-barrel brewery at capacity, he had to deal with a hop contract issue that caused the brewery to remove its flagship Workhorse IPA from distribution for almost a year.
Gletsos not only weathered the storm, but has also managed to introduce many popular new beers and initiatives over the past few years. Among his long list of accomplishments are the award-winning Megafauna Imperial IPA, his work on Laurelwood’s fresh hop beer offerings, and the implementation of a sour ale and barrel aging program. One such beer, named Golden Weapons, is an American sour ale that is currently bottle conditioning and, when ready, will be available at the restaurant and bottle shops. Gletsos says the satisfaction he feels from “designing, executing, promoting and distributing beers we are proud of” is the best reward for his efforts.
Shane Watterson, who started out homebrewing, has been at Laurelwood since 2010. He previously worked at Deschutes Brewery in Portland and has completed the American Brewers Guild’s Intensive Brewing Science and Engineering program. Referring to his decision to accept the promotion to brewmaster, Watterson said, “I like being on the floor and making beer - that’s where I shine the most, but I like learning new stuff more than anything.” Never one to shy away from a challenge, Watterson felt that this was the right time to take advantage of this opportunity.
Watterson has already accomplished many things in his time at Laurelwood. Specifically, he mentions his efforts to make the brewery as efficient as it is right now. In his first few months on the job there was a lot of turnover. “While dealing with the chaos from losing experienced crew members, we went piece by piece through the brewery and determined how to make it more efficient, which resulted in cutting time out of our work week, making beers more consistently, and using less ingredients.”
The role of brewmaster is quite different from working as the lead brewer, as Watterson has done for the past two years. Now his days will be filled with meetings, handling logistics, planning for the future, and developing his team. When I asked Gletsos what advice he would give to Watterson, he first made it clear that he thinks Shane is more than capable of doing the job even better than he has. Upon further reflection, he said, “It is very disorienting to move off the floor and out of the flow of the brew day. Shane has an opportunity, now more than ever, to do things the way he wants and mostly on his own terms. He needs to keep asking himself, ‘What do I want to create?’ and not get bogged down with the procedural aspects of the job.”
One advantage Watterson has is his four years of experience with the Laurelwood setup. “I have a practical idea of how a recipe is going to turn out and can put that on paper so the guys on the floor understand the process.” While the current crew has been working together for several years, there are still new things to learn as they take on new responsibilities. As he takes over the role of brewmaster, Watterson says, “I’m going to be very team-oriented. I want their feedback and respect their opinions. This crew drinks a wide variety of beers and has different palates. That’s true of our customer base as well. I think we have a good idea of what Laurelwood customers want and can make beers they are going to like.”
As for future plans, Watterson reminds me that “people don’t realize how far out stuff is planned. We have hop contracts for the next several years, so Vasili has already planned out a lot in terms of beer production.” Besides making some new experimental beers, Watterson, who married his longtime girlfriend over the summer, plans to recreate the XPA he shared with his wedding guests. He also recently made a dry-hopped pilsner and is planning to make a bretted saison akin to The Commons Brewery’s Flemish Kiss.
A chance meeting at the 2014 Great American Beer Festival also created the possibility of a collaboration beer with Brasserie Saint James out of Reno, Nev. The brewery won Mid-Size Brewpub and Mid-Size Brewpub Brewers of the Year for Head Brewer Josh Watterson and Assistant Brewer Matt Watterson. Previously unknown to each other, Shane Watterson ultimately discovered that the brothers are his second cousins.
When asked how he spends his time when he’s not brewing, Watterson mentions that he has many ever-changing hobbies, including playing the ukulele. He loves experimenting with fermentation and makes cheese, sausage, pickles and other tasty treats. He also likes to camp and spend time outdoors, taking advantage of all this state has to offer.
As Gletsos once again hands over the reins to Watterson, he fondly recalls his time at Laurelwood, occasionally working on the floor with the crew, tasting some really amazing beers, and communicating his experience and love of beer to the public. He tells me that he hopes to spend his last days on the job sharing beers and memories with his friends and colleagues.
The Oregon Beer Growler raises a collective pint to Vasili Gletsos, with much appreciation for his hard work and the excellent beers that have resulted from his time at Laurelwood; and to Shane Watterson, as we look forward to enjoying the fruits of his labor in the months and years to come. Cheers!
Laurelwood Public House & Brewery
[a] 5115 NE Sandy Blvd., Portland
By Gail Oberst
Oregon has nearly 140 craft breweries. But Nov. 5, when officials from one of those breweries announced they are selling to international brewing giant Anheuser-Busch/InBev, Bend-based 10 Barrel Brewing Company set social and traditional media on fire. The sale will be final by the end of the year.
The announcement by owners and founders Chris and Jeremy Cox (twin brothers) and Garrett Wales was followed by “expert” opinions locally and nationally. Wall Street experts sought to advise investors on what A-B/InBev was up to. National statistic geeks tried to ferret out trends reflected in the sale. Fellow business owners suggested 10 Barrel’s owners were just being smart. Others felt betrayed.
The owners indicated 10 Barrel’s success since they began in 2006 exceeded their own expectations – and management abilities. In a video announcing the sale of 10 Barrel, Wales and the Cox brothers admit they are good at making and drinking beer. But they said they are not good at a lot of things that a growing brewery needs, some of which includes administrative functions from packaging and distribution to employee benefits and making quality videos.
Despite recent administrative struggles, 10 Barrel’s brewers continued to produce award-winning beers. Most recently, the brewery won three medals at the renowned Great American Beer Festival for its Cucumber Crush (gold) and bronze medals for both Amber Waves and P2P.
A-B/InBev officials have deferred to 10 Barrel’s former owners, who responded to questions about the impact of the purchase on brewery jobs in Oregon, on plans to expand to Portland, and on the quality of 10 Barrel beers that inspires passionate reaction from fans.
10 BARREL’S FUTURE
Portlanders have been anxiously watching construction of 10 Barrel Brewing’s new Portland brewery and pub in the Pearl District, but does the sale of the brewery put this on hold? Absolutely not, said Wales: “We're on track for a mid-winter opening for the Portland pub,” he said. The 6,229-square-foot space at 1411 N.W. Flanders St. will have seating for 150 people and will reportedly employ more than 80 people. Nov. 7, the brewery announced it was hiring Whitney Burnside to be the Portland location’s brewer. Burnside has been Pelican’s specialty brewer.
Jeremy Cox also said that there won’t be any personnel changes at the Bend or Boise facilities in the near future. “The team is staying the same,” he said.
Might there be an increase in production at any of the 10 Barrel facilities in the future? Jeremy Cox said that keeping up with current expansion plans is about all they can handle. "It's business as usual for us right now. We've been growing fast over the last few years and we're staying focused on continuing our growth while keeping our distribution focus here in the Pacific Northwest,” he said.
Meanwhile, the affiliation with the larger company will have its advantages for the brewers. "You tell Jimmy, Shawn and Tonya that they have access to unlimited hops and the best of the best malt and see their faces light up. We're really excited about the opportunities this partnership will provide for all our team,” said Garrett Wales.
Cox had a few words for those who fear that 10 Barrel will lose its Northwest quality and flavor. "We're still brewing our beer here in Bend, our families are here in Bend, our employees all live and work here in the community and we're not going anywhere. We definitely still consider ourselves a local Bend brewery,” he said.
A-B/InBev is a Belgian-Brazilian multinational brewing company headquartered in those two countries. Although it is most often affiliated with Budweiser products in the U.S., A-B/InBev’s international owners claim a brewing history back to 1366 through its Belgian merger with Artois, as in Stella Artois. A series of mergers created InBev, the world’s largest beer company in 2004. In 2008, InBev bought Anheuser-Busch, further expanding its holdings. Today, nearly half of all beer products sold in the U.S. are owned by A-B/InBev. Bud, Corona, Michelob and Beck’s are all part of the A-B/InBev family.
Despite the craft beer craze (which it has apparently joined), the company is doing well. According to New York Stock Exchange reports, as of mid-November, its stock was listed at $87 per share, up from $35 per share four years ago. For the quarter that ended in October this year, the company earned $12.24 billion – times that by four for an approximate annual income, and you’re talking real money.
Even with climbing profits, the company is not selling more beer, according to A-B/InBev’s October report to its shareholders. Volume had dropped last year throughout the company’s holdings by nearly 3 percent, and this quarter, volume sales were nearly flat worldwide. The biggest volume drops among company labels recently were in North America and Europe, where small craft brewery beer sales are climbing. But is a drop in volume a problem for the company that sells nearly a third of the world’s beer? Stock prices in November took a tiny dip, but in the long run, probably not.
Owners are reassuring, but fears abide that small breweries bought up by large corporations often disappear. Macro Trend Investor writer Charles Sizemore, a self-described proponent of these kinds of buyouts, suggested 10 Barrel’s brand could go the way of George Killian’s Irish Red and Shiner Bock, both bought out by large beer companies before they disappeared.
“Could BUD and the rest of Big Beer take a page out of Warren Buffett’s playbook, buy a craft beer brewery outright but leave its management in place and maintain a low profile? Maybe. But it’s hard to see regional microbrews having much of an impact on the bottom lines of companies with tens of billions in annual sales,” said Sizemore.
Paul Gatza, director of the Brewers Association, sees the purchase as a sign of the times. “With middle-of-the-country Goose Island, Long Island’s Blue Point and now Bend and Boise’s 10 Barrel part of the portfolio, it looks like A-B is developing its own version of a regional-brand footprint strategy,” he said in a blog post. “I am thinking about why these deals don’t happen more often,” he said.
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