Mainebiz

V O L . X X I N O. X X I W ith 64 craft breweries already in the state and the Maine Brewers' Guild predict- ing upwards of 80 by the end of 2016, an ecosystem of support services and products is growing up around the industry, which is capital-intensive and subject to legal restrictions and liabilities. "Our industry is providing jobs and work for brew- ers, law fi rms, plumbers and others," says Rob Tod, who founded Portland-based Allagash Brewing Co. Inc., in 1994. "We have a vibrant craft beer movement, and our company is contributing a lot to the economy." Early in his company's 21-year history, Tod consulted with Portland law fi rm Verrill Dana, which recently formalized its breweries, distilleries and wineries group with eight attorneys across disciplines in the fi rm who provide legal guidance to Allagash, Maine Mead Works and others on intellectual property, real estate, labor, employment issues, special regulatory and compliance issues. "I think someone is nuts to start a business without basic due diligence from a law fi rm," says Tod. "It's a required expense. I'm a believer in unnecessary risk aversion." Maine's breweries sold $92.6 million worth of beer in 2013 and employed nearly 1,500 workers, according to a May 2014 Maine Brewers' Guild economic impact study. Directly and indirectly, sales of Maine craft beer created $189 million in annual statewide economic impact, which compares to $340 million for Maine's lobster catch in 2012 and to $69 million for the wild blueberry harvest. e study also noted that Maine's brewers plan to increase production by 200% by 2018. However, it included only the 35 breweries in operation in 2013; there are almost double that number today, notes Sean Sullivan, executive director of the nonprofi t guild. In addition to brewers, the guild has about 28 "allied" members, those that provide products and services to the craft beer industry, including malt houses, graph- ics companies, glass providers, beer tours, insurers, an Occupational Safety and Health Administration con- sultant, banks, lawyers and compressed gas providers. e national Brewers Association in Boulder, Colo., defi nes craft brewers as small, independent and tradi- tional. While it is not a legally binding defi nition, small means annual production of 6 million barrels of beer or less. Independent means that less than 25% of the craft brewery is owned or controlled by an alcoholic beverage industry member that is not a craft brewer. Traditional means a majority of the brewer's total beverage alcohol volume is in beers fl avored with traditional or innovative brewing ingredients and their fermentation. Flavored malt beverages, for example, are not considered beers. Despite the skyrocketing growth in brewer- ies, Sullivan doesn't see them getting to the point of oversaturation any time soon, as beer consumers aren't just Mainers. "We're bringing a lot of young people to visit the state and to stay for jobs," Sullivan says. "With the impact of tourists, we support more of an industry than our state's population would suggest." He adds that with craft beers, it's unusual to see a consumer order the same beer at a bar twice in a row. " is allows for new entries to the market." "In Maine, it's a lifestyle business," he adds, pointing to guild President Heather Sanborn, who practiced law before starting Portland-based Rising Tide Brewing Co. with her husband. P H O T O / T I M G R E E N WAY S E P T E M B E R 2 1 , 2 0 1 5 14 Craft brewing matures Professional services firms expand practices to serve growing industry B y L o r i V a l i g r a Charlie Bacall, partner at Verrill Dana and chair of the intellectual property and technology group, left, and Bill Knowles, partner at Verrill Dana and head of the new brewery, distillery and wineries group, in the wild barrel room at Allagash Brewing Co. in Portland.

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