Mainebiz

January 9, 2023

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V O L . X X I X N O. I JA N UA R Y 9 , 2 0 2 3 16 2 0 2 3 E C O N O M I C O U T L O O K B R E W I N G Allagash sees 'big opportunity' in Scarborough B Y R E N E E C O R D E S A llagash Brewing Co. is planning a bevy of new product releases in 2023 including Hop Reach IPA, the brewer's first-ever year-round IPA that's being rolled out this month. "From a business perspective, the IPA style has about a 50% share of craft beer as a whole," says the company's founder, Rob Tod. "We didn't have a year-round beer that was firmly in the IPA category, so Hop Reach is going to fill a big spot in our core beer portfolio." At the same time, Tod sees "quite a bit of room" for further growth of Allagash White, a brand that accounts for 80% of the Portland brewer's sales. "Our main focus is on deepen- ing our relationships with wholesal- ers where we already distribute, and expanding thoughtfully," he says. One example of that is how Allagash has expanded its distribution from the Chicagoland area to all of Illinois. Back in Maine, Allagash produced 118,315 barrels of beer in 2021. e brewer has 150 employees on the pay- roll and does not envision any major staff increases this year. "We imagine that we'll continue to see openings in various areas of the brewery," Tod says, "but don't expect to significantly expand our team in the near future." e company is building a new tasting room at the Downs mixed-use development in Scarborough after opening a new experiential tasting space in Portland called the Cellars. Despite high building costs, Rob says that Scarborough "is a big opportunity for us to construct a space, and tasting room, from the ground up." His outlook for Allagash and Maine's craft brewing industry this year: "e craft brewing industry is maturing, quality is rising, and the number of breweries is still increas- ing, on top of pressure from other beverages like ready-to-drink canned cocktails and seltzer. So, I think it's going to continue to be tough out there." R E TA I L 'Cloudy' picture in store for Maine's retail sector B Y R E N E E C O R D E S D espite signs of a strong holiday shopping season in 2022, Curtis Picard, president and CEO of the Retail Association of Maine, has con- cerns about the sector in 2023. "e forecast is cloudy," he says. "Consumers are still spending, but there are still concerns on the horizon with high energy costs and inflation staying high, and workforce shortages have persisted." e National Retail Federation pre- dicted a 6% to 8% jump in 2022 holiday sales over 2021, or total sales of $942.6 billion and $960.4 billion. While the Retail Association of Maine won't have definitive information on 2022 holiday sales until February, anecdotal information suggests a strong showing to Picard. "I'm pleasantly surprised that 2022 has continued to seem to be a strong year for retail," he says. "All indications are that the holiday season is actually shaping up pretty well." Elsewhere in Maine's sector, Picard says many retailers have figured out solutions to the workforce shortages by, for example, reducing their open- ing hours. He also notes that while downtowns including Topsham, where he lives, and Brunswick, are both "very vibrant" for shopping, the Maine Mall in South Portland remains "really solid." "I was there in the early part of the fall and it was busy," he says. "It was almost reminiscent of the 1980s. e Maine Mall has done a good job of really attracting some solid anchors," including Jordan's Furniture, the Apple Store and Best Buy. "Now there are reasons for folks to go to the mall," he says. Nor has the Maine Mall been hurt by competition from stores at Rock Row in Westbrook as some had initially feared, he says, noting: "Both of them have been able to co-exist so far." F O O D, M A N U FAC T U R I N G A growing business in Skowhegan faces higher costs head on B y P e t e r V a n A l l e n A mber Lambke, founder and CEO of Maine Grains Inc., has grown her business while helping other busi- nesses in Skowhegan. Maine Grains, which grinds, pack- ages and sells grain at both the whole- sale and retail level, is now 10 years old. As Lambke told Mainebiz when she was honored in 2022 as a Business Leader of the Year, she plans to expand the footprint of Maine Grains to an adjacent lot. e expansion will add operations space, a demonstration kitchen and year-round space for the Skowhegan Farmers Market. Lambke has already fostered other businesses, opening the Miller's Table bakery in house and providing space for Crooked Face Creamery. e Good Crust, a pizza-crust business started by her sister Heather Kerner, uses Maine Grains as the main ingredient. But Lambke goes into 2023 with concerns about higher interest rates and higher costs for transportation and packaging — not only for her own business but for the farms and vendors she works with. "While cost increases on the farm — including transportation and pack- aging — have all gone up, we hope to keep our pricing level in 2023," Lambke says. » C O N T I N U E D F RO M P R E V I O U S PA G E P H O T O / C O U R T E S Y O F A L L A G A S H B R E W I N G C O. Rob Tod is founder of Allagash Brewing Co., Maine's largest brewer based in Portland P H O T O / T I M G R E E N WAY Curtis Picard is president and CEO of the Retail Association of Maine. P H O T O / T I M G R E E N WAY Amber Lambke, founder and CEO of Maine Grains Inc., has grown her business while helping other businesses in Skowhegan. F O C U S I think it's going to continue to be tough out there. — Rob Tod Allagash Brewing Co.

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