This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

How the Craft Brew Alliance's Joe Casey Is Hopping Up Cider

Since then, Anheuser-Busch InBev (BUD) has been pushing Michelob Ultra Light Cider as it tries to wriggle its way into cider. Meanwhile, Irish cider superpower C&C Group -- which owns the Magners cider brand and bought California-based Hornsby's in 2011 -- made a big push into the U.S. market by buying Vermont Hard Cider, its Woodchuck brand and nearly 50% of the U.S. cider market in October for $350 million. Not to be left out, Heineken bought Vermont Hard Cider's U.S. rights to the Strongbow brand last year as well. In February 2012, MolsonCoors (TAP) and SABMiller joint U.S. venture Miller Coors bought Minnesota-based craft cider producer Crispin for a reported $40 million and have nosed into the cider section even further by offering Redd's Apple Lager. Even the folks behind Mike's Hard Lemonade have begun offering a cider options.

So what's leading the Craft Brew Alliance to believe Square Mile can succeed not only in the California, Oregon and Washington markets where it's sold, but potentially nationwide? The launch party the company held for Square Mile at Bushwhacker Cider, a Portland-based cider maker that is also the city's only cider-specific bar and bottle shop, offers some clues. While growing, the cider market as a whole is far from saturated and still fits itself into about four of Bushwhacker's coolers with plenty of room for imports. Boston Beer's Angry Orchard entered the market only last year and is already the most popular cider in the country.

It's also a market of huge niches just waiting to be filled. In Philadelphia, for example, Philadelphia Brewing's line of Commonwealth Ciders with hints of ginger and raspberry were so successful that they were spun off into their own entity. While Square Mile's Original recipe is a simple mix of Red Delicious, Yellow Delicious and Jonagold apples with lager yeast, the Alliance's cider maker may have hit on its company's own mix by adding a hefty portion of Galaxy hops to its Spur & Vine variety.

While it's a blend that's already been tried in Square Mile's native Oregon by Wandering Aengus (Anthem Hop Cider) and Reverend Nat's (Hallelujah Hopricot) and in nearby Washington by Finn River (Dry Hopped) and Tieton (Yakima Valley Dry Hopped), Square Mile's is far more subtle. It give the cider a tart, sour apple finish without being off-puttingly bitter. With Square Mile being made in Milton-Freewater, Ore., within spitting range of hop country, it's a natural choice and a great way to tap a potential craft beer drinking base ordinarily put off by cider.

2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BREW $13.64 1.90%
FB $83.47 0.55%
GOOG $550.75 -0.80%
TSLA $182.24 -4.30%
YHOO $45.17 1.60%

Markets

DOW 17,688.61 +10.38 0.06%
S&P 500 2,058.62 +2.47 0.12%
NASDAQ 4,879.4420 +16.08 0.33%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs