Worcester Business Journal

wbjournal.com | June 11, 2018 | Worcester Business Journal 9 Thank you to our sponsors and participants for another successful Valley Friendship Tour! Artwork by Maria Thomas beer blog tracking new breweries and cra beer news, 88 new breweries have opened in the state since the start of 2015: 21 each in 2015 and 2016, and 41 last year. Data suggests between 50 to 60 Massachusetts breweries are planning to open in the next year or two, said Framingham man Rob Vandenabeele, co-founder of Mass. Brew Bros. e state has had six straight years of double-digit brewery openings, and Vandenabeele initially predicted 2018 could approach or even break the record of 41 new breweries set last year. Yet, only seven have opened so far, well behind the pace to top 2017. "I would have predicted 15 to 20 already," he said. "It's been really really slow this year, and I can't put my finger on why." Within the last year, 10 to 12 brewer- ies-in-planning gave up their plans to produce and sell their beer, he added. "Some people don't have a realistic understanding of how challenging it is to start a brewing business," Vandena- beele said. Earlier this year, the BA Chief Econ- omist Bart Watson said the 5-percent growth in national cra beer production in 2017 was probably not as strong as breweries expected while building out their companies. e category is still growing, but indi- vidual breweries might be scaling back their plans with dozens of new brewers making beer, Watson said. e amount of cra beer produced nationwide dropped from an average growth rate of 900 barrels per brewery in 2014 to 200 per brewery last year, Watson said. is drastic drop in barrels produced per brewery is a sign of both declining market share among the industry's larg- est cra brewers and a rise in smaller breweries. Small production brewery Seven Saws brewery in Holden opened in May with just a one-barrel system and plans to keep it conserva- tive. Co-founder Tom Anderson and his partners are waiting to see how the opening goes before they increase production capacity. When the brewery opened, dozens of Holden residents walked to the Main Street brewery. "at's where the focus is," Anderson said. "We will always remain Hold- en-centric, and we want Holden to be proud of us." e space became available in Feb- ruary, and the brewery opened three months later – a lightning-fast pace for a new brewery. Plans to expand production capabil- ities have not yet been solidified, but Anderson imagines expanding to as high as a 20-barrel system eventually. Plans to become the next big beer destination like Charlton's Tree House Brewing Co. or Boston's Trillium Brew- ing Co. have been tempered, but Ander- son will take any kind of organic growth. "Is that feasible anymore? I don't know," he said. "Maybe, if you make a re- ally amazing beer, anything is possible." For now, the brewery remains far be- hind the largest players in the cra beer industry, many of which are reporting declining sales. Boston Beer Co., the maker of Sam Adams, reported a 14-percent dip in production last year despite brewing 2 million barrels. Boston's Harpoon Brew- ery reported a 6-percent dip to 185,500 barrels. Nationwide, the largest 50 domestic cra brewers lost 2 percent of their production from 2016, and 22 of them reported declining production. Training new brewers Compounding the unprecedented growth of cra beer is another set of is- sues: a new brewer may be able to make a delicious beer, but may be clueless when it comes to running a business. On the flipside, if the beer isn't a good, quality drink, the cra beer scene could lose some drinkers. To solve both of those issues, the Massachusetts Brewers Guild held its first ever Technical Brewing & Business Conference in May at Framingham's Jack's Abby Cra Lagers, where new and prospective brewers learned the do's and don'ts of running a brewery. In addition to business plans and mar- keting strategies, brewers were schooled on quality. Neil Witte, quality ambassador to the BA, said access to the cra beer market is at an all-time high. "I never thought I'd see anything close to this," Witte said. He urged young brewers to invest in a quality program to ensure a beer actually tastes good – the most important thing to get right in the beer business. "It's not just marketing," Witte said. "If someone grabs your beer and drinks it, you want to make sure they're drinking the best possible." Changing to an intimate focus Unlike other large cra brewers, the largest Central Massachusetts brewery – Westminster-based Wachusett Brewing Co., the 49th largest cra brewer in the country – kept growing its production last year, up 26 percent to 64,300 barrels. Now, it's aiming for 80,000 in 2018, said President Christian McMahan. Its success is due to its commitment to its core beer – Wachusett Blueberry – and an ability to adapt to the changing industry. e brewery is old by cra beer stan- dards: It was founded in 1994. However, its license didn't allow for onsite serving of beer until the law changed last year, McMahan said. e brewery opened its brewyard and taproom in December aer success operating a summertime brew yard. e industry shi to a more intimate relationship with beer necessitated that project, McMahan said. "It wasn't a 'Should we do it?' It was a 'We had to do it.' at's how beer has evolved in New England," he said. e brewery's largest sales are now in Westminster and other surround- ing towns. at transition from major regional cra brewer to a neighborhood brewery with a taproom and place to sit down with a frosty brew is helping to convert light beer drinkers. "More people come here to experi- ence the brand, and now they're sup- porting us back in other retail outlets," McMahan said. W Seven Saws Brewing opened last month on Main Street in Holden, where the brewery offers flight samples. PHOTO/ARIANA AUBUCHON

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