| Contract Brewing Who Really Makes That Beer by Sheryl Grady- Albertson I was recently reminded of the old controversy surrounding Sam Adams when some people were shocked, shocked, to learn that Sam beers, for the most part, were contract brewed. In response I recall Jim Kock, Boston Brewing (Sam Adams) founder asking if chef Julia Childs cooked dinner in your kitchen how could you say she didn't prepare your meal? That quickly convinced me. That issue is continuing today as more and more craft brewers don't actually own their own brick and mortar brewery. Instead, they employ the resources, equipment and often the labor of other breweries to make beer just as Sam Adams did. The contract brewing company is sometimes responsible for recipe development (that meet what you want the beer to taste like) and handles the marketing, sales and distribution of the beer. On the other hand, the contract brewery might be hired by another brewery to simply produce additional beer they may not have room for at their current facility. As craft beer sales continue to soar demand often exceeds the supply of many smaller brewers so it's only logical that they contract the equipment and labor, leaving the responsibility for the recipe and ingredient sourcing to themselves. It's the easiest way to grow a brewing business without a huge investment of money. It all makes economic sense. Although contract brewing has a higher cost of goods due to the overhead and profit owed to the host brewer, the bulk of the business is a variable cost with very little overhead. Rather than having the usual revenue expenses associated with owning a business—rent, lease on forklift, loans on brewing machinery, payroll for a large staff—contract brewers use their capital for additional brand building and marketing activities to yield a higher return on investment. So how does one find out if a brewery is contract or not? By law, all labels must cite the exact town or city where the beer is brewed— however, they aren’t required to mention the name of the host brewery. As a result, many consumers aren’t able to discern a contact brewing company based on a label alone. Some brewers choose to broadcast it as a part of their brand message, while many brewers only address the topic when asked. While it makes perfect sense, one word of warning before you take your best home brew recipe to someone like contract brewer F.X. Matt to enter the beer biz. While most contract brewing relationships are based on mutual benefit, you are actually at the mercy of the host brewery. The contract brewer has full control over the brewery so your brew will only be as good as the performance of the host brewery. I can hear you asking me now about your favorite beer - is it contact brewed? It's not that easy to know. By law, all labels must cite the exact town or city where the beer is brewed—however, they are not required to mention the name of the host brewery. As a result, many consumers aren’t able to discern a contact brewing company based on a label alone. But does it matter? If the beer is good does it really make a difference how and where it's made? To me, good beer is good beer no matter how it is produced. Hey Bob, I owe you a pint for letting me take over your column this month - I hope you let me do it again sometime. ------------ |
| BeerNexus proudly presents Bob Montemurro "the ombudsman of beer" Bob and Friends Speak of Beer...... |
 |
| |
 |
| Many thanks to Sheryl for a most interesting article. Great job! Cheers! See you next time to "speak about beer". Bob Montemurro |
 |  |
| Want to be a "friend of Bob" and write a guest column? Just e-mail your article to Bob HERE. |