{"id":8565,"date":"2013-08-26T14:47:30","date_gmt":"2013-08-26T21:47:30","guid":{"rendered":"https:\/\/archives.csusm.edu\/westcoastersd\/?p=8565"},"modified":"2013-08-26T14:47:30","modified_gmt":"2013-08-26T21:47:30","slug":"the-most-expensive-real-estate-in-san-diego","status":"publish","type":"post","link":"https:\/\/archives.csusm.edu\/westcoastersd\/2013\/08\/26\/the-most-expensive-real-estate-in-san-diego\/","title":{"rendered":"The Most Expensive Real Estate in San Diego?"},"content":{"rendered":"

AS NUMBER OF BREWERIES EXPANDS, DISTRIBUTORS TRY TO MATCH PACE<\/strong><\/p>\n

Prohibitively expensive San Diego real estate has not deterred emerging breweries from opening, and San Diego County is on pace to break the 90-brewery mark by the end of 2013, from just north of 30 breweries five years prior. Even affluent neighborhoods can find great beer within walking distance; from Thorn St. Brewery<\/a> within reach of Golden Hill, or Culture Brewing Co.<\/a> in tony Solana Beach. And while breweries quickly fill the surplus of \u201creal property\u201d in San Diego, tap space isn\u2019t keeping up.<\/p>\n

\"DSC_0411\"<\/a>
Slater’s 50\/50, Liberty Station<\/figcaption><\/figure>\n

\u201cIt used to be tap space in search of beer,\u201d said Craig Broderick, proprietor of Brody\u2019s Burgers and Beer<\/a> in Jamul. \u201cNow, it\u2019s beer in search of tap space.\u201d<\/p>\n

Though 18 miles from the heart of downtown, rural Jamul has a neighborhood brewery in Cold Bore Brewing Co.<\/a>, who self-distributes and is a regular feature on Brody\u2019s 23 taps. According to Broderick, Brody\u2019s came online at the right time.<\/p>\n

\u201cHad I started my biz earlier, I would have been in dire need of beer,\u201d Broderick remarked in regard to his geographical disadvantage, \u201cbut from last year to this year, it\u2019s night and day in terms of beer availability.\u201d<\/p>\n

Broderick continued, noting that smaller breweries had issues getting carried by a large distributor, such as Crest Beverage<\/a> or Budweiser\/Anheuser-Busch, but that changed when Stone Brewing opened the distribution side of the company and started carrying smaller-batch breweries who couldn\u2019t meet larger distributors\u2019 quotas.<\/p>\n

While providing a much-needed relief valve to the mega-distributor bottleneck, Chad Heath, Southern California sales director for Stone Distributing<\/a>. still feels pressure to keep up with the onslaught of new local breweries.<\/p>\n

\u201cThis amazing explosion of selection has challenged distribution a bit in keeping up with the sheer amount of products we are now able to sell,\u201d Heath said. \u201cThere will come a point when breweries aren\u2019t able to find distributors to distribute their beer because they are \u2018full\u2019. \u00a0To date we aren\u2019t there yet, but I feel that is inevitable and, for some of the startup brands, it would become more and more difficult to secure distribution deals.\u201d<\/p>\n

But that doesn\u2019t mean there isn\u2019t any hope for emerging breweries, Heath continued. \u201cGood beer will win out and there will always be room in a quality distributor\u2019s portfolio for breweries producing exceptional product.\u201d<\/p>\n

THE GIVE AND TAKE<\/strong><\/p>\n

In a business that\u2019s all about relationships \u2014 as distributors are prohibited from negotiating with vendors based on price \u2014 Heath maintains that the biggest challenge in those relationships is providing access to limited-release, rare beers.<\/p>\n

\u201cAlmost all craft breweries these days are making small batch, exclusive beers,\u201d said Heath. \u201cThey put a good demand on the wholesaler to make sure these beers get to the right accounts, on time and with the correct quantity\u2026 Stone has refined this process to a \u2018T\u2019.\u201d<\/p>\n

Frank Green, brand ambassador and sales manager for Port Brewing Co.\/The Lost Abbey<\/a>, said that there is great opportunity for breweries who have in-house representatives and also partner with a larger distributor, such as Stone.<\/p>\n

\u201cHaving (Stone) working in concert with me allows for more visits and touches on my accounts,\u201d Green said.<\/p>\n

Grant Tondro, co-owner of Urge Gastropub<\/a>, The Barrel Room<\/a>, and Brothers Provisions<\/a> in Rancho Bernardo, said that, like all good relationships, the vendor-distributor romance involves give and take.<\/p>\n

\"DSC_0069\"<\/a>
Grant Tondro @ Urge Gastropub<\/figcaption><\/figure>\n

\u201cAll our distributors know that our goals are to have specialty kegs for specialty events, which drive our sales and are a lot of fun to put on,\u201d Tondro noted. \u201c(Distributor) goals are to hit their depletion quotas. \u00a0As a result, we often have conversations that revolve around \u2018I’ll take a Fat Tire now if I can be guaranteed a La Folie later\u2019 topics.<\/p>\n

While Tondro uses New Belgium Brewing<\/a> for an example, he said there are similar pushes being made by self-distributing breweries and their representatives.<\/p>\n

\u201cOf course, we wouldn’t take a keg of absolute crap just to secure a specialty keg, but we feel that it is reasonable to help them hit their depletions as long as they help us put on great events,\u201d said Tondro.<\/p>\n

One brewery that Tondro mentioned as being notably persistent and a regular feature on Urge\u2019s tap list is Firestone Walker Brewing Co.<\/a>, a sentiment echoed by Broderick at Brody\u2019s.<\/p>\n

\u201cFirestone is at a size where, although distributed by Crest Beverage, they\u2019re actively pursuing full-time space,\u201d said Broderick. \u201cAnd they have reps out in Jamul who are willing to work on those relationships.\u201d<\/p>\n

Broderick added that, in addition to self-distributing breweries, the recent arrival of Craft Beer Guild Distributing of California<\/a> gives even greater access to smaller breweries and their limited releases, which prompts the question: with distribution options increasing, who drives vendor-distributor negotiations?<\/p>\n

\u201cNobody is indispensable,\u201d said Darren Renna, general manager of the Coaster Saloon<\/a> in Mission Beach. \u201cFor example, Ballast Point and Green Flash are distributed by Crest Beverage \u2014 by far the biggest player \u2014 but if you want first access to Palate Wrecker, Dorado or a new specialty product, then you are better off dealing directly with the brewery than the distributor.\u201d<\/p>\n

Green at The Lost Abbey sees growing popularity for distribution reps among smaller breweries, but many times that means that one person is wearing multiple hats.<\/p>\n

\u201cA lot of these new breweries are working without a sales rep. I know of one brewery where the brewer is literally doing everything himself,\u201d which includes bartending, brewing, and distribution rep work. So while the distribution representative position has become more popular, sometimes this means one person wearing multiple hats; not necessarily a new hire.<\/p>\n

According to Green, relationships work at their optimal level when vendors work with breweries and distributors in tandem. This results in win-win-win for brewery, distributor, and vendor.<\/p>\n

\u201cI currently work with six Stone sales reps, along with their sales manager and several others in the sales department,\u201d Green said. \u201cThe more beer I sell for them, they benefit and, in turn, sell more beer for me and I benefit.\u201d<\/p>\n

As a vendor, Renna added that he gets the benefit of increased responsiveness by working with the breweries and distributors.<\/p>\n

\u201cThe salesmen do not want to see (flagship beers pulled off tap). Five years ago, such a threat would not have gone very high up the ladder, but today I would have a regional manager calling me within hours.\u201d<\/p>\n

A NEW CHALLENGER<\/strong><\/p>\n

Tondro noted that the number of distributors and reps with whom he works has increased by nearly 50 percent within the last year, and much of the increase is due to new breweries that self-distribute.<\/p>\n

Green countered that, by working exclusively with a brewery representative \u2014 and not partnering with a distribution company \u2014 the portfolio of beers available is more limited.<\/p>\n

Despite such reservations about working with breweries exclusively, dealing directly with smaller and newer breweries becomes an increasingly viable alternative for vendors. In fact, for at least one local brewery, working directly with the brewery is the only way to get their highly sought-after beer.<\/p>\n

\u201cSociete<\/a> is selling all the beer they can make,\u201d said Broderick, referring to Societe Brewing Co. who, by design, only self-distributes its beer.<\/p>\n

\"Brody's<\/a>
Brody’s Burgers. Photo courtesy of AmigoKandu<\/figcaption><\/figure>\n

\u201cIt\u2019s a privilege for me to be able to get it, as opposed to a bigger brewer who is just battling for tap space and only now realizing how valuable it is.\u201d<\/p>\n

For Broderick, the privilege is such that he drives to Societe to pick up the kegs himself.<\/p>\n

\u201cThey said they\u2019d love to sell us beer, but they couldn\u2019t drive out to Jamul to get it to us. I said, \u2018No problem, I\u2019ll pick it up,\u2019\u201d and even then, Broderick is only able to pick up what beers Societe has available, but even expending this much time and effort can outweigh the indignity of dealing with hard-driving sales representatives.<\/p>\n

\u201cIt\u2019s such valuable space and there is so much beer to fill that space, how are you going to put on a mediocre beer by a brewery just for the chance, the lottery, or opportunity to get a select beer later?\u201d Broderick mused.<\/p>\n

\u201cIt\u2019s an unrealistic goal for me to get (Russian River Brewing\u2019s) Pliny the Elder. It\u2019s been made clear to me by their distributor. But now it\u2019s not an issue because there are more beers that can match Pliny. No disrespect to Pliny; it used to be the lead dog, but the rest of the pack has come up.”<\/p>\n","protected":false},"excerpt":{"rendered":"

AS NUMBER OF BREWERIES EXPANDS, DISTRIBUTORS TRY TO MATCH PACE Prohibitively expensive San Diego real estate has not deterred emerging breweries from opening, and San Diego County is on pace to break the 90-brewery mark by the end of 2013, from just north of 30 breweries five years prior. Even affluent neighborhoods can find great […]<\/p>\n","protected":false},"author":17,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[292,1140,1141,1138,1122,1139,354,323],"class_list":{"0":"post-8565","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-san-diego-beer-beverage-news","7":"tag-coaster-saloon","8":"tag-cold-bore","9":"tag-craft-beer-guild-distributing-of-california","10":"tag-crest-distributing","11":"tag-distribution","12":"tag-stone-distributing","13":"tag-the-lost-abbey","14":"tag-urge-gastropub","15":"entry","16":"has-post-thumbnail"},"jetpack_featured_media_url":"","wps_subtitle":"","jetpack_shortlink":"https:\/\/wp.me\/pdtr4y-2e9","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/archives.csusm.edu\/westcoastersd\/wp-json\/wp\/v2\/posts\/8565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/archives.csusm.edu\/westcoastersd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/archives.csusm.edu\/westcoastersd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/archives.csusm.edu\/westcoastersd\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/archives.csusm.edu\/westcoastersd\/wp-json\/wp\/v2\/comments?post=8565"}],"version-history":[{"count":0,"href":"https:\/\/archives.csusm.edu\/westcoastersd\/wp-json\/wp\/v2\/posts\/8565\/revisions"}],"wp:attachment":[{"href":"https:\/\/archives.csusm.edu\/westcoastersd\/wp-json\/wp\/v2\/media?parent=8565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/archives.csusm.edu\/westcoastersd\/wp-json\/wp\/v2\/categories?post=8565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/archives.csusm.edu\/westcoastersd\/wp-json\/wp\/v2\/tags?post=8565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}