This Day On The Street
Continue to site
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

Blue Point Sale to Bud a Blueprint for Forgotten Craft Beer

This happens. With the number of craft breweries in the U.S. rising to more than 2,500 and craft beer sales still growing 15% by volume in 2012 compared to 1% for the entire beer industry, craft brewers are starting to sound like Morgan Freeman's Red from The Shawshank Redemption: You either get busy living or get busy dying.

Chico, Calif.-based Sierra Nevada was founded by Ken Grossman in the late 1970s. In recent years, Grossman has begun tweaking his lineup to include more seasonal offerings and limited-edition beers, shifted his Torpedo IPA toward the flagship position once occupied by his Pale Ale, expanded to a second brewery near Asheville, N.C., and began grooming his son and daughter to take over the business. Kim Jordan founded New Belgium brewing company in Fort Collins, Colo., with her ex-husband in 1991, but recently began updating the company's labels, canning some of its beers, increasing its one-off batches, selling shares to New Belgium employees, expanding New Belgium's distribution radius to more states and, yes, building a new facility near Asheville, N.C.

We could go on like this all day. Jim Koch brewed his first batch of Samuel Adams 30 years ago, but has recently turned Boston Brewing Company into a nearly 3 million-barrel operation that also cranks out cider, releases malt beverages, develops shandies and buys up breweries including Los Angeles-based Angel City and New York's Coney Island Craft Lagers.Tony McGee started Petaluma, Calif.-based Lagunitas Brewing Company in 1993 and nearly quintupled its output since 2009 while expanding to a facility in Chicago.

That's what it takes to preserve a brewery. There are some folks, however, who understandably don't want to go that route. We wrote about Kansas City, Mo.-based Boulevard Brewing Company in October, when it was purchased by Belgian brewer Duvel Moortgat for between $100 million and $120 million. John McDonald, who founded Boulevard in 1989, explained the sale in an open letter that should have resonated with every craft brewer in their second or third decade of running a business:

Must Read: Great Super Bowl, Everyone: Now Let's Abandon St. Louis

I'm not getting any younger, and the long-term future of the brewery has weighed on my mind for the past several years. After long discussions with my family, we determined that we wanted to find a way to take Boulevard to the next level while retaining its essence, its people, its personality -- all the characteristics that make our beer and our brewery so important to Kansas City and the Midwest.

And those are the words of a man whose brewery output has grown by nearly 40,000 barrels since 2009 and whose brand just became the first craft beer to serve as a Major League Baseball team's official beer sponsor thanks to the Kansas City Royals. Imagine if his brewery was spinning its wheels and creating beers that fell somewhat behind the curve.

2 of 3

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
Only $9.95
14-Days Free
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
SYM TRADE IT LAST %CHG
BUD $110.32 1.98%
SAM $208.19 1.48%
AAPL $112.92 2.94%
FB $89.73 2.91%
GOOG $637.61 1.43%

Markets

Chart of I:DJI
DOW 16,654.77 +369.26 2.27%
S&P 500 1,987.66 +47.15 2.43%
NASDAQ 4,812.7080 +115.1720 2.45%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs