{"id":9770,"date":"2014-05-30T16:09:21","date_gmt":"2014-05-30T23:09:21","guid":{"rendered":"https:\/\/archives.csusm.edu\/westcoastersd\/?p=9770"},"modified":"2014-05-30T16:44:46","modified_gmt":"2014-05-30T23:44:46","slug":"exporting-the-craft","status":"publish","type":"post","link":"https:\/\/archives.csusm.edu\/westcoastersd\/2014\/05\/30\/exporting-the-craft\/","title":{"rendered":"Exporting the Craft"},"content":{"rendered":"
\"via<\/a>
via Antenna America’s Facebook page (Japan)<\/figcaption><\/figure>\n

Shawn DeWitt now knows what it feels like to be a rock star.<\/p>\n

On a recent trip to Japan, the co-founder and director of brewery operations for Coronado Brewing Company was in a beer bar when the owner announced that the boys from Coronado were in the house. Before he knew it, the place turned into a mob scene as everyone suddenly surrounded them, clamoring for an autograph and photos.<\/p>\n

\u201cIt was overwhelming,\u201d DeWitt recalled. \u201cWe signed bottles, pint glasses, even the shirts they were wearing. I\u2019ve traveled all over the U.S. and we have never experienced anything like that.\u201d<\/p>\n

The craft craze that\u2019s been sweeping the U.S. is starting to go global as more and more countries are thirsting for something beyond the mass-produced stuff. The Brewers Association recently reported that in 2013 export volume increased by 49 percent over the previous year, representing 282,526 barrels and an estimated $73 million in revenue. In 2011, about 110,000 craft beer barrels were sent abroad for an estimated $23.4 million. (Note: Not all U.S. breweries that export beer are part of the BA’s export development program, which requires an additional fee.)<\/p>\n

\u201cWe are pushing boundaries, no holds barred,\u201d said Mark Snyder, who heads the BA\u2019s export development program. \u201cWe are making the best beers in the world. And people see that, respect that and want our beers.\u201d<\/p>\n

In San Diego County, more than ten breweries are exporting their craft, mainly more established operations.<\/p>\n

But there are smaller breweries, including Aztec Brewing Company in Vista, that are seeing value in reaching beyond the border.<\/p>\n

Aztec first sent its beer to Hong Kong last year, and now is sending its Chipotle IPA and Noche de los Muertos Imperial Stout to Mexico, where the brewery was originally born in 1921. The new Aztec, which opened in 2011, has a deal in place with BeerBox, a chain of 40 retail craft beer markets from Baja to Cancun. Its first delivery of 120 cases of 22-ounce bottles shipped in May, ironically on Cinco de Mayo.<\/p>\n

\"#sdbeer<\/a>
#sdbeer en route to Mexico, courtesy Aztec Brewing Company<\/figcaption><\/figure>\n

\u201cWe have come full circle,\u201d said John Webster, Aztec\u2019s marketing director. \u201cTo be developing relationships and establishing a presence in Mexico is exciting for us considering our history. I think the brand is something that resonates with them.\u201d<\/p>\n

Aztec, which produces about 1,500 barrels a year, is considering expansion into Japan and the United Kingdom.<\/p>\n

\u201cWe do think it\u2019s going to be a regular thing, and we want to do more in Mexico,\u201d Webster said.<\/p>\n

Coronado, which is projecting to produce about 29,000 barrels this year, continues to expand internationally. Currently in nine countries with about 5 percent of its production earmarked for export, DeWitt said he could easily see that increase to 20 percent within 5 years.<\/p>\n

\u201cI see this as only going up,\u201d DeWitt said.<\/p>\n

Brandon Richards, who heads up sales and marketing for Coronado, said the brewery receives at least five inquiries every month from international distributors.<\/p>\n

\u201cAt one point we looked at exporting more like a hobby, but now it\u2019s a very important part of our business,\u201d Richards\u00a0said.<\/p>\n

For New York\u2019s Brooklyn Brewery, the largest exporter of American craft beer with sales in 17 countries, foreign sales account for 20 percent of the brewery\u2019s annual revenue of $50 million. Brooklyn is also building a brewery in Sweden.<\/p>\n

Nagano Trading, the largest distributor of American craft beer in Japan, and Long Beach-based Global Craft Trading, which focuses on nine international markets, ships mostly San Diego beers. Since Global Craft was founded in 2011, it has experienced more than 100 percent growth every year, according to president\u00a0Andrew Balmuth.<\/p>\n

\"Shanghai<\/a>
Shanghai Tattoo keeps a fridge stocked with Karl Strauss beer. Courtesy Craft Cask & Cork<\/figcaption><\/figure>\n

\u201cIn this global economy, there are craft beer geeks everywhere and there\u2019s craft beer everywhere,\u201d said Balmuth, who co-founded Yokohama-based Nagano in 2006 with his wife Akemi Ohira Balmuth. \u201cAnywhere there is craft beer being brewed, there is an interested drinker who wants to try a Sculpin or a Stone IPA.<\/p>\n

\u201cSan Diego beers are the very popular in our export portfolio. The popularity has to do with the style of beers being produced by those breweries and that San Diego has done a tremendous job in branding itself as a global beer city.\u201d<\/p>\n

Not for everyone<\/strong><\/em>
\nJim Crute, owner of Lightning Brewery in Poway, has considered exporting but sees too much regulatory red tape for it to make sense for his operation.<\/p>\n

\u201cIt\u2019s almost a distraction,\u201d he said. \u201cIn other countries there\u2019s an entire byzantine set of alcohol trade rules and regulations. In the United States it\u2019s a pain and overseas it doesn\u2019t get easier. So you have to have enough volume for it to make sense for you.\u201d<\/p>\n

Crute said he was recently approached by an international distributor who wanted to sell his Thunderweizen Ale in Japan, but said the numbers didn\u2019t add up.<\/p>\n

\u201cThe distributor wanted a price that was lower than what we sell our beer for now,\u201d he said. \u201cIf I was going to lower my prices, I would drop them in the U.S. first.\u201d<\/p>\n

Lightning produced 780 barrels last year and, for now, is focused on growing locally.<\/p>\n

\u201cBased on my interactions up to now, I am going to stay away from it,\u201d Crute said.<\/p>\n

DeWitt agrees that exporting may not make sense for some smaller breweries.<\/p>\n

\u201cIf we were smaller, I wouldn\u2019t even think about international distribution until I had enough capacity to do so,\u201d DeWitt said. \u201cI don\u2019t know how much that does for you as a small brewery. I\u2019d rather be strong in my own market because those customers can come to my brewery every single day.\u201d<\/p>\n

\"At<\/a>
At Global Craft’s facility in Long Beach, each bottle must be labeled with specific information en route to Japan (photo from January, 2013)<\/figcaption><\/figure>\n

Preserving quality<\/strong><\/em>
\nWhile the increasing demand from overseas countries such as Japan, Sweden, Spain and New Zealand is an exciting proposition, maintaining a quality product is a big concern for craft breweries. Balmuth said the supply chain is critical to delivering the freshest beer possible.<\/p>\n

\u201cOur supply chain is 100% cold,\u201d he said.\u00a0 \u201cThat is the only way to maintain freshness.\u00a0 Fresh from the brewery allows the beer to develop the market in harmony with the sales efforts of the importer. Basic rule of thumb\u2014it’s much easier to sell a fresh craft beer than one that’s old, oxidized and out of code. That is true for all markets domestic or abroad. We actually visit and monitor the market, we inspect the warehouse and delivery system and taste beers in the markets we supply. We monitor all points of the supply chain to protect the quality of the beer.\u201d<\/p>\n

DeWitt, who works with Nagano and Global Craft, said he has visited other countries specifically to see how Coronado\u2019s beers held up during their voyage and was satisfied with what he discovered.<\/p>\n

\u201cThe quality was better than I expected, but of course they weren\u2019t brewery fresh,\u201d he said. \u201cBut knowledgeable beer folks in Sweden and Japan understand that it takes time for beer to travel that far and they still feel that U.S. craft beers are still better than the beers being made in their own countries.\u201d<\/p>\n

Balmuth said maintaining that quality and freshness is vital because that gives the beer \u201cthe chance to express the brewer\u2019s intent.\u201d If it\u2019s not fresh, it can\u2019t do that. With shipping from Long Beach to Japan taking just 12 days, many beers go out to bars less than 30 days from packaging.<\/p>\n

Shipping more than beer<\/strong><\/em>
\nBrewers are learning they are exporting more than just their product. With craft beer comes a piece of American culture as well. A good example of this is found at Antenna America, the tasting room and bottle shop of Nagano Trading. In addition to eight rotating taps, the tasting room also serves cheeseburgers, fish tacos and wings served with Stone sauces to give visitors a complete craft experience.<\/p>\n

\u201cWe\u2019re trying to brand American concepts around beer,\u201d Balmuth said.<\/p>\n

Added Webster: \u201cThere was a time when Americans were looking to drink European beers but now that has flipped the other way. And San Diego beers have a particular appeal. We\u2019re selling a lifestyle along with a liquid.\u201d<\/p>\n

According to the Brewers Association, the largest importer of U.S. craft beers continues to be Canada with Sweden and the UK the next largest markets. Japan, Australia and Brazil are emerging quickly, and according to some insiders, Mexico and South Korea are the next two countries to take off because of recent changes in distribution laws.<\/p>\n

The bottom line is the growth of American craft beer around the world isn\u2019t going anywhere but up.<\/p>\n

\u201cThe growth will look similar to the growth that many of these brands have had domestically,\u201d Balmuth said. \u201cEarly export channels will become important to the future success of a brewery.\u201d<\/p>\n

SD Breweries Exporting Beer<\/strong><\/em><\/span>
\nAleSmith,\u00a0Aztec,\u00a0Ballast Point,\u00a0Coronado,\u00a0Green Flash,\u00a0Hess,\u00a0Iron Fist,\u00a0Karl Strauss, Modern Times, Mother Earth, Pizza Port, Port\/The Lost Abbey, Saint Archer, Stone… know of others? E-mail the author at marc@marcfig.com or leave us a comment below.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shawn DeWitt now knows what it feels like to be a rock star. On a recent trip to Japan, the co-founder and director of brewery operations for Coronado Brewing Company was in a beer bar when the owner announced that the boys from Coronado were in the house. Before he knew it, the place turned […]<\/p>\n","protected":false},"author":19,"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":[865,1222,1224,1215,1225,1216,1218,675,1219,310,1221,872,746,1223,1217,798,298,1214,1226,259,1220,296,835,211,111,44],"class_list":{"0":"post-9770","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-san-diego-beer-beverage-news","7":"tag-alesmith","8":"tag-andrew-balmuth","9":"tag-antenna-america","10":"tag-aztec-brewing-co","11":"tag-ballast-point-brewing-co","12":"tag-beerbox","13":"tag-brandon-richards","14":"tag-brewers-association","15":"tag-brooklyn-brewery","16":"tag-coronado-brewing-company","17":"tag-global-craft-trading","18":"tag-green-flash-brewing-co","19":"tag-iron-fist-brewing-co","20":"tag-jim-crute","21":"tag-john-webster","22":"tag-karl-strauss-brewing-co","23":"tag-lightning-brewery","24":"tag-mark-snyder","25":"tag-mike-hess-brewing-co","26":"tag-mother-earth-brew-co","27":"tag-nagano-trading","28":"tag-pizza-port","29":"tag-port-brewing-the-lost-abbey","30":"tag-shawn-dewitt","31":"tag-stone-brewing-co","32":"tag-vista","33":"entry","34":"has-post-thumbnail"},"jetpack_featured_media_url":"","wps_subtitle":"","jetpack_shortlink":"https:\/\/wp.me\/pdtr4y-2xA","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/archives.csusm.edu\/westcoastersd\/wp-json\/wp\/v2\/posts\/9770","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\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/archives.csusm.edu\/westcoastersd\/wp-json\/wp\/v2\/comments?post=9770"}],"version-history":[{"count":0,"href":"https:\/\/archives.csusm.edu\/westcoastersd\/wp-json\/wp\/v2\/posts\/9770\/revisions"}],"wp:attachment":[{"href":"https:\/\/archives.csusm.edu\/westcoastersd\/wp-json\/wp\/v2\/media?parent=9770"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/archives.csusm.edu\/westcoastersd\/wp-json\/wp\/v2\/categories?post=9770"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/archives.csusm.edu\/westcoastersd\/wp-json\/wp\/v2\/tags?post=9770"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}