Summer Plans

The latest upheavals and successes in the world of Maryland beer. Who is staying? Who is expanding.

Summer is here and things are sizzling! Maryland has seen some drastic shifts in the world of brewing. In a matter of six weeks Guinness announced plans to close the Baltimore Brewery, moving operations to Chicago; Flying Dog sold to FX MATT, closing the Frederick plant; and DuClaw was sold to River Horse, leaving Heavy Seas as the largest (and longest) Maryland independent brewery standing. The dominoes falling for the three of the state’s largest producers certainly was not welcome news for most, but there was quite a bit of good to glean from the industry as well.

Let us begin with Guinness, the shutting down of brewing operations in Baltimore does not come as a great surprise. With the announcement of the opening of Guinness Chicago it was pretty easy to read the tea leaves. Sustaining two operational plants in the U.S. on the heels of COVID was not part of the strategy. Although Diageo (parent company of Guinness) beat expectations in January 2023, on the heels of strong sales in Europe where Guinness saw a 71% increase in sales in Ireland, growth in North America was paltry, coming in at 3%. Combined with increased inflationary pressures, Diageo (and thus Guinness) was primed for belt tightening, not expansion. Additionally, it is far easier to distribute nationwide from the Midwest than the East Coast. As a salve for the Guinness Baltimore Blonde fans that recoiled at the thought of the locally crafted favorite shifting production to Illinois, Hugh Sisson, founder of Heavy Seas and merchant of the industry’s growth in the region since 1996, offered to brew the Maryland flag draped Blonde at Heavy Seas. Alas, nothing has yet come of the offer and astute shoppers might have noticed the labeling has conveniently removed the Maryland flag.

A little more than a month after Guinness revealed the closure, Flying Dog announced they were ‘joining forces’ with FX Matt Brewing (AKA Saranac). Uncapped Podcast broke the story May 22, leaving many stunned. A quick reminder – Flying Dog intentionally chose not to reopen the taproom after COVID was no longer a threat. The bottom line was never about selling pints and giving tours, but large scale production. Tea leaves anyone? Yes they will open a taproom and ‘innovation’ brewery (aka small batch experimental) in downtown Frederick while production moves to New York this summer before closing the plant completely. A bit of history here for those that forgot or might not have known Flying Dog was a Colorado based brewery before relocating to Frederick. Much like Guinness, they were a transplant to the Free State. Once they set up shop they absolutely embraced Maryland, from flag and blue crabs to Old Bay, wending their way into the refrigerators of many Maryland natives. We will see if the Maryland themes continue once they have relocated.

On June 1st, news broke that another Maryland brewery had been sold- DuClaw. This time however, it was a Maryland original. From the very first brew pub in Bel Air in 1996, to the Yellow Brick Road production facility in Rosedale, DuClaw has always been a Maryland brewery. Plagued by nagging issues at the production facility limiting tasting room opportunities among other problems, DuClaw was openly looking for a buyer for years before COVID showed up. The solution for Benfield and crew came in the form of River Horse Brewing out of New Jersey. Sweet Baby Jesus- the iconic flagship (yes I recall just how much they revile the term) beer will be brought to life in a new manger a few hours north. A long time ago, Benfield told me in an interview that he hoped the brewery would discontinue Sweet Baby Jesus, as the goal was always to provide new beers that would capture consumer’s attention and palate, usurping the holy porter. That never came to pass despite their best efforts. Even the illustrious and effervescent Unicorn Farts could not topple the king.

On a somber note, True Respite out of Rockville is up for sale as a turn-key brewery for $1.5 million. The O’Leary family (owners) has mentioned that times are extremely difficult for breweries- more than we know and that we all should double down on buying local. The nearly $13k per month rent (usury in my book- but it is Montgomery County) is certainly indicative of the financial challenges breweries face, particularly when they do not own the plant operations are housed within.    

Over the past decade we have witnessed the closure of several breweries in Maryland including Astro Lab, Full Tilt, House Cat, Homaide, Baying Hound Aleworks, Growlers, and more. COVID certainly played a hand and not everyone survives the financial difficulties created by lockdowns. Maryland is nowhere near saturation, and we are well behind most states in breweries per capita according to the Brewer’s Association of America. With the closure of these breweries, our numbers will continue to wane. Craft alcohol laws in the state have reformed, paving the way for new breweries to stand on more solid footing. A cautionary tale remains however for anyone interested in opening a brewery to do their research and talk to those in the industry who have succeeded and critically those who have not. Vital information can be gleaned from those willing to open up the conversations with those who came before.  

Opportunity awaits for those wading into the brewing business, but quality is key and the craft beer consumers are particular. As the number of breweries has grown, buyers are less forgiving of unremarkable brews, thus raising the bar. Negotiating finances like steep rents and excise taxes, inflation and supply chain issues coupled with finding trustworthy, reliable distributors is just as crucial to the success of a brewery as crafting consistently excellent beers. A misstep on any of these can sink even the most sought-after brand.

So what have we lost? Jobs… and beer Guinness, Flying Dog and DuClaw will continue to produce the beers that have lined our fridges for decades. What becomes of the contract brewers that relied on these facilities to produce their Maryland grown brews? We will have to see how this plays out, but the ripple effect of these consolidations might deprive us of the smaller start-ups we were just beginning to discover, and others we have known for quite some time.

There is good news to report however, as we are seeing growth and expansion in our Maryland originals from Heavy Seas to Mully’s to Rockwell to Checkerspot. The Free State has a long history of expansion and contraction when it comes to craft brewing. We are just in the process of dialing it in adn teh summer is going to sizzle!

Sláinte!

Will Common Sense Prevail?

A July look at the industry including the road to recovering from COVID, changed legislation, new trends, new breweries, and speed bumps in the road slowing progress.

As we begin to feel a return to more familiar surroundings, breweries and other Free State craft alcohol producers are working diligently to overcome the summer drought and pick up a head of COVID recovery steam. The good news is they have a few things operating in their favor this year.

This past legislative session we witnessed the application of common sense to craft alcohol laws with regard to continuing the (state of emergency) protocols put in place that allowed these manufacturers to survive COVID. This included an increase from 3,000 bbls to up to 5,000 bbls of beer to be distributed by a class 5 or class 7 brewery holding the proper (class 7) wholesale permit. It also continues the sale and delivery of products by the manufacturers of craft alcohol in Maryland directly to consumers, as well as direct shipping. Additionally, it lifts limits on maximum purchases from distilleries along with the nonsensical guided tour requirement. Apparently however, there was concern by legislators that the entire year of COVID lockdown was not nearly enough of a testing period to fully prove the validity of this “experiment” and they placed a sundown on this legislation, making all of this common sense legislation disappear after December 31, 2022- giving alcohol manufacturers and their guilds roughly 18 months to prove their case.

For many, the use of available outside space was pivotal to survival during COVID and now has become a perpetual addition to their breweries, wineries and distilleries. Some in more urban and industrial areas worked out the conversion of parking areas into semi-permanent seating and entertainment areas for the summer months. Regardless of space, everyone celebrated the re-opening of the indoor facilities they worked so hard to design.

Checkerspot Brewing Company crowler

The workarounds of 2020 have given way to new trends like crowlers instead of growlers – a much more convenient process and one I am personally happy to partake in. How many growlers can one person own after all? With the realization that once they were no longer in use, those empty growlers required a lot of storage space I didn’t have- there was no turning back.

Another trend that doesn’t seem to be going anywhere anytime soon is seltzer. Yes seltzer… the ubiquitous drink that comes in a plethora of fruity, low alcohol flavors. The scorching summer heat has certainly fed their popularity. As the trend continued, even the most adamant breweries chose to provide at least one seltzer option for the converted (or overheated).

Craft non-alcoholic IPA’s have also become something of a trend- at least a mini trend. Most recently, Flying Dog released Deepfake a non-alcoholic IPA with Simcoe, Mosaic and Citra hops to much fanfare. It is a great option for those that love beer but don’t always want the alcohol. This is one trend that is bound to increase in popularity over the next few years.

Deepfake by Flying Dog

One thing that most of us are very pleased to see is the return of celebrations- whether it be acknowledging a hard fought milestone for a manufacturer – like a third or tenth anniversary, or the return at least in some form to the festivals. One such example is rapidly approaching. The Brewers Association of Maryland has partnered with Pink Boots of Greater Maryland and Max’s Taphouse for the first annual Maryland Craft Beer Brewers Olympics.  The event is being held at the B&O Railroad Museum August 15th from 12:00-4:00.  This is a fundraising event for BAM with proceeds being allocated towards the funding and development of Human Resources personnel, education and advancement for a more inclusive industry.

This is great timing as the Maryland craft alcohol scene is continuing to expand from in-planning to grand openings. Pariah Brewing is opening their East Coast brewery in the old Union Craft Brewing space this fall. Reduce, reuse recycle? Sort of. Owners Christa and Brian Mitchell have outgrown their San Diego brewery and decided to get back to their roots by opening a second brewery on Union Avenue in Baltimore- a spot ready made for the 20 bbl brewhouse.

Guilford Hall Brewery recently opened in the old Crown Cork and Seal plant. The brewery boasts seating for 200, with a bar restaurant on the upper level. Martin Coad is the brewmaster concentrating on producing well-crafted German brews including pilseners and lagers, among other Bavarian and Viennese selections.

If either of these things seem a little bit familiar…you are not alone in thinking history is repeating itself. Perhaps DeGroens (Baltimore Brewing Company) and Flying Dog (when they were in Colorado and Maryland) come to mind?

All however, is not sunshine and hops. Some breweries that had big plans have had to put things on hold, in some cases indefinitely. Brad and Eryn Streett were slated to open AleCraft Farm Brewery in Harford County until Councilman Robert Wagner introduced a moratorium on farm breweries in the county days before their zoning hearing. On the surface it appears to be another case of NIMBY (not in my backyard) syndrome that plagues many value-added agriculture businesses, threatening their very existence. Hopefully common sense and diplomatic dialogue will prevail and AleCraft will move forward.  

There is lots more to share from pincasts to collaborations that you will not want to miss. Stay tuned and stay hydrated!

Beer for thought

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