The Carolinas are out, according to a pair of mayors commenting on Stone's search for a brewing location east of the Mississippi. Mayors of Greensboro, SC and Winston-Salem, NC told local press late last week that their respective communities had been taken off ever-shorter list of possible spots kept by Stone. That's as folks in Columbus, Oh keep pushing harder on the city's bid, according to the Columbus Dispatch. All the brewery told the paper is that the list now includes "about a half-dozen locations," but not which ones. Columbus govt and biz officials insist its still in the mix, in part thanks to pro-biz regulatory environment, tax benefits and "nostalgia," the paper wrote. Tho a city/state tax incentive package may not be comparable to those offered by other spots, "Ohio does not tax corporate profits, product shipped out of state, inventory or new machinery and equipment," a potential boon for a biz such as Stone. Further, ceo Greg Koch "grew up in Pataskala," a nearby suburb, "the ace up Columbus' sleeve," according to the paper. Meanwhile, Stone is "seeing that a number [of distributors] are beginning to secure their 'beer futures' via" its IndieGoGo crowdfunding, the co updated followers of the campaign. Again encouraging fans to get a move on, "distributors tend to purchase LARGE quantities," the co wrote. The campaign nears a quarter of its million-dollar goal.  

Outlines of Brooklyn Brewery's ambitions revealed within a 100-pg draft document detailing progress report of NYC Regional Economic Development Council and a hearing took place this afternoon. Brooklyn looks to build a $70 mil, 200K sq ft facility on Staten Island, as 1st reported by Crain's NY Biz this morn. But brewery could also potentially be elsewhere in NY metro region. While enthusiastic about the project, Staten Island location is "by no means a done deal," Brooklyn coo Eric Ottoway told CBN. It's in Brooklyn's "nature not to say anything until it's 100% certain," added Eric. But the public hearing and "process forced upon us" disclosure of "potential project," he said. "We're cognizant that this is one step of many to bring this to full fruition." This hearing an early step that reveals the projects under consideration. And Brooklyn is just one of a number of projects, "some of which may eventually receive grants or tax incentives from the state," according to Crain's. REDC document gives other striking details on Brooklyn's project that Crain's didn't report, many of which we feature here.

Brewery Capacity to Start at 400,000 Bbls, Go Up to 1 Mil Bbls Brooklyn looks to build a "state-of-the-art 400,000 expandable to 1,000,000 barrel brewery in a 200,000 square foot building on 20-25 acres with proximity to the NY/NJ ports," said Regional Economic Development Council. "Brooklyn Brewery is positioned to be one of New York State's great international export stories," said the NYC govt council, elsewhere stating "Brooklyn Brewery is a model of how a local craft company can grow into a global exporter."

Exports to Jump from 28% to 60% of Volume; Will Open Rest of US Eye-poppin' numbers noted that Brooklyn exported 28% of its volume in 2013 and that it expected that to jump to "as much as 60%" of its volume by 2022 "or approximately 450,000 bbls." Wow. That implies that Brooklyn expects to reach a total of 750,000 bbls by 2022. That's about 3x what it will sell in 2014. Brooklyn also notes that 45% of its volume comes from outside NY metro (which would mean 27% or 58,000 bbls in NY metro alone) and "their sales volume is expected to continue growing strongly as they open up distribution to the 25 states that are not currently served." Brooklyn expects to complete site selection by end of 2014, complete construction by 2016, and be "fully operational by the end of 2017," according to progress report. The brewery will result in 88 "retained jobs, 92 new full time jobs" and 240 construction jobs.

Brooklyn Up 20%+ in 1st Half; Growth Outpacing Capacity; Exports Up Over 60%; Brooklyn Is "Home" Brooklyn up in low 20s in 1st half and expects to finish the yr up 20-22%, Eric Ottoway told CBN. That would put Brooklyn around 260,000 bbls in 2014. "Our growth has outpaced our capacity and we are looking at a necessary expansion much quicker than we had anticipated," Brooklyn noted on blog post today. Brooklyn exports up more than 60% so far this yr and exports will be over 30% of volume, Brooklyn added. "This rapid growth has challenged capacity at our breweries in Brooklyn and Utica, New York." (Editor's note: Brooklyn contract brews good chunk of its volume at F.X. Matt in Utica.) "The popularity of and lack of real estate inventory in Kings County is prohibitive to the type of facility our business needs to grow," Brooklyn said on blog post. But make no mistake, Brooklyn concluded: "we are steadfastly committed to Brooklyn and will always maintain a significant brewery presence and headquarters in our home borough."

Brooklyn's "stipulations" such as being near port and rail system "would make Staten Island an ideal location," noted Crain's. But Brooklyn also considering "a range of locations" in the metro NY region. Then too, Brooklyn Brewery partner, the Italian bottled water co named Galvananina, could also base its North American operations at the new facility and invest $10 mil in the facility. Brooklyn president Steve Hindy sits on this Regional Economic Development Council, but "has recused himself from any decisions regarding state aid to the company," noted Crain's, citing officials.  

Craft accelerated again during first half of the yr on bigger and bigger base. Brewers Assn-defined craft maintained full-yr 2013 trend thru first half of 2014, production +18% to 10.6 mil bbls thru June 30, using new definition that brings Yuengling, others into the fold. Assuming typical (slight) upwards revision of 2013 half-yr stats and taking Yuengling outta the mix, we estimate craft at around 9.1 mil bbls during 1st half of 2014, up about 20% over 7.6 mil bbls during first half of 2013 (7.3 mil originally reported by BA). If that growth continues thru rest of the yr, BA craft likely to end up near 19 mil bbls without Yuengling, and near 22 mil bbls with it, depending on size of the brand's Northeast expansions. Using stats from recent blog post by BA chief economist Bart Watson, craft could be headed over 22 mil bbls this yr. In that post he cited half-yr stats typically about 48% of full-yr, which would put craft near 22.1 mil bbls in 2014. So BA-defined craft could come close to doubling since 2009 if Yuengling added to previously-reported numbers from the org.

Broader definition also means BA craft could easily pass 10 share of total US beer this yr, gaining over a full share. But BA has always taken out FMBs in its calculation of craft share of the total industry. Highly unlikely that total beer biz even flat without growing FMB category, so BA share-growth sure to be even more pronounced. Part of this picture is BA's total US brewery count, which recall ticked past 3000-mark by end of last month to 3040, up over 500 since end of June, 2013. So final-yr count likely more than double the 1600 the org counted back in 2009. That's as BA's count of breweries-in-planning just about 70 shy of 2000 by June 30. Tho these mid-yr stats based on smaller sample of members than full-yr, Bart told us, it still includes "pretty high" number of regional breweries, contributing the majority of craft volume. 

After producing hundreds of thousands of pages of documents relating to its marketing practices, Monster Beverage has asked NY State Supreme Court to void what it says are burdensome subpoenas from state's attorney general, contending there's no valid factual or legal basis for subpoena issued last month, nor any federal or state law that's in violation by energy drink maker's marketing practices, Bloomberg reported . . . Exploring possibilities among non-dairy creamers, Starbucks is testing use of coconut milk in stores in LA, Cleveland and Ore, as alternative to almond milk, which runs afoul of some customers' nut allergies . . . As café culture burgeons in US, here's eccentric new breed to keep an eye on: cat-petting cafes. Modeled on decade-old Japanese genre where patrons pay to cuddle up with cats over their tea or coffee, London got its first this year, the crowd-funded Lady Dinah's Cat Emporium, and a dog-focused House of Hounds also is in works. NYC got only a pop-up one in trendy Bowery nabe for a few days in Apr, sponsored by pet food marketer under name Cat Café by Purina ONE. Meanwhile, entrepreneurs in Bay Area are racing to see who'll be first to coax local officials into letting them open one, KitTea in SF or Cat Town Café (funded by Pet Food Express) across bay in Oakland. Up in Rockies, Denver Cat Company has been raising $50K to open by fall, with plan to charge customers $5 per hour to mingle with menagerie. Big hurdle in most efforts is leery health officials reluctant to have animals around where food is served. (Tho not a cat person, BBI editor is still brooding over NYC Health Dept's ouster of famous cats at McSorley's Old Ale House, who generally showed greater attentiveness and friendliness to patrons than the actual human waiters.)  

Honest Tea has offered mix of upgrades to glass bottle biz that comprises brand's face to natural channel, moving to Fair Trade ingredient in all flavors sweetened with organic sugar, heralding new membership in 1% for the Planet on labels, and updating label graphics to better highlight unique attributes of each flavor. New labels retain hollow-T motif that's identified with brand, but with catchier visual elements inside, such as vibrant, folk-style Chinese-style dragon to highlight Green Dragon flavor, placed against off-white parchment background conveying authenticity. Co also is adding black-tea-based Radiant Raspberry Tea to glass-bottle line, starting next month. Co's membership in 1% for the Planet commits Honest Tea to contribute equivalent of 1% of line's annual sales to environmentally focused orgs. "Our glass-bottled line continues to be the top- selling bottled tea in the natural channel, and even as we're having one of our best sales years to date, we felt now was the time to double-down on our mission" said ceo Seth Goldman. Plastic-bottle subline that moves mainly via Coke's red trucks seems to be continuing work in progress internally, as co looks to drive volume in mainstream channels without compromising identity of organic brand.  

Its premise of shelf-stable cold-brewed coffee in a can now established, High Brew has been building DSD network, just closed on Series A financing round and is migrating from natural channel into conventional grocers and even eyeing c-stores. And looking to lure more males to franchise, it's unveiling its first dairy-free option, Double Espresso, as its 4th flavor, buttressing initial trio of Mexican Vanilla, Dark Chocolate Mocha and Salted Caramel that all employ milk and sugar.

Recall that Austin-based brand was created by Sweet Leaf Tea cofounder David Smith, with investment and staffing from several of his former colleagues there, some of whom came out of retirement to participate. After exiting Sweet Leaf following brand's transition to Nestle Waters ownership, Smith and family sailed the Caribbean while home-schooling the kids. Navigating small boat with restless kids aboard had its challenging moments, and iced coffee proved to be key tool. Back on land in Austin in Aug 2012, Smith visited Expo East the following month and witnessed proliferation of concentrate brands. Seeing void for RTD offerings, he made transition from high seas to High Brew, devising samples that he pitched to Whole Foods that fall. Seven of chain's 11 regions agreed to take it on immediately, prompting scramble to gear up production in time for Mar 2013 resets. It was unveiled at last year's Expo West (BBI, Mar 10). By now, brand has cracked 9 WF divs, with NY and Mid-Atlantic regions the holdouts, and brand has been adding conventional grocers like HEB in Tex. Safeway is coming aboard, and talks are under way with likes of Target and Kroger. Compared to Sweet Leaf Tea, when retailers already had 7 tea brands in set, acceptance has been far easier to win, Smith observed. Even at $2.49 price per 8-oz can, velocities have been encouraging enough for co to have accelerated original plan, David said. That Series A round, believed to be in $3-5 mil range, included several celebs soon to be disclosed, as they get ready to promote brand on social media and in other ways.

As at Sweet Leaf, DSD is key part of strategy. In core market, brand has enlisted Brown Distributing for central Tex, and Silver Eagle operations for Houston and San Antonio, all of them Bud houses. Central Beverage is working Chicago, another key metro for brand. Assignments should be announced shortly in Southern Calif and Fla, and co is working on NorCal, Pacific NW and New England next. Smith hopes to have extensive DSD coverage by end of year.

General awareness of cold-brew segment? Still in its infancy, Smith acknowledged, but cafes have been pushing their cold-brews, retailers like Nordstrom are offering home-brewing systems and coffee style should start moving into mainstream over next 12-18 months, as more consumers gravitate to afternoon occasions for coffee usage. That's been factor in success of iced coffees across the board, he figures. Is RTD cold-brew a c-store-ready segment at this stage? Since that's where most RTD coffee is sold, HighBrew intends to find out: it's taking a flier on exhibiting at upcoming NACS c-store expo in Las Vegas in Oct, David said.  

Tough NY food/bev distribution environment has claimed another victim, venerable White Rose. Rumors had bubbled up locally over past week that co was struggling, and White Rose, parent Associated Wholesalers and several affiliates yesterday filed for Chapter 11 bankruptcy protection and said it had reached agreement to sell most of its assets to giant wholesaler C&S Wholesale Grocers Inc. Among bev brands, White Rose is believed to have moved substantial volumes of Tropicana and Nesquik. In court filing reported by Reuters, AWI chief restructuring officer Douglas Booth said White Rose generated $1.1 bil in annual revenue, but lost money in 2013 fiscal year as tighter margins and "fierce" competition took toll on customer base. He said C&S would make initial "stalking horse" bid for co's assets, setting floor for eventual sale at court-supervised auction. White Rose plans to continue normal operations during bankruptcy, using debtor-in-possession financing from Bank of America. Wholesalers has been in biz since 1886 and numbers among its nearly 500 customers the Met Food and Pioneer grocery chains. Development occurred in difficult NY market that in late 2012 claimed major dairy player Beyer Farms, which abruptly closed doors on longstanding dairy operations and fledgling shelf-stable bev operation (BBI, Dec 12 2012).  

Tony West, an associate attorney general and #3 official at Justice Dept, plans to step down from his position and become general counsel at PepsiCo, according to report by Bloomberg. Neither PEP or Justice Dept spokespersons commented on report. If Tony does jump over to PEP, he'll join Larry Thompson, veep of gov't affairs, gen counsel and secretary, who'd served as deputy atty genl under President George W Bush, noted report. Tony recently "negotiated almost $37 billion in settlements with Wall Street banks over shoddy mortgage practices," added Bloomberg. Last week in reporting Tony was likely leaving Justice Dept, NY Times noted, "Wall Street will soon bid farewell to the man it loves to hate."  

Orgain, organic protein line created by LA doc and cancer survivor Andrew Abraham, has recruited Chicago-based natural products vet Carter Elenz to serve as prexy. Carter brings diverse background to job, which he began quietly this summer, ranging from evp job at US Cellular to several jobs in natural/organic space at Gardenberger (veggie burgers), Stonyfield Farm (organic yogurt), Seventh Generation (environmentally friendly cleaning products) and Sensia Beverage (functional bevs). In phone conversation, Carter said he was impressed by Abraham's story as cancer survivor who delayed medical career to get Orgain off ground, and key priority will be to "amplify" that story via marketing programs. To help in task he's brought in former colleague Kristen Deshaies as cmo; her past involvements include Seventh Generation, Stonyfield Farm and Ben & Jerry's. Elenz said Abraham remains actively engaged in biz as ceo, "and I'm here to help fulfill his vision" . . . Nawgan, retrenching from landgrab approach to build its twin Nawgan and On Powered brands at more organic, less capital-depleting rate, has parted ways with industry vets Jim Venia, its sales dir, and Pat Sanderlin, its natl accts dir. As reported, its former marketing exec Corey Blick is effectively running co out of San Diego as founder Dr Rob Paul devotes more focus to medical activities associated with Washington Univ in St Louis (BBI, Sep 3). Red Bull vet Pat confirmed departures, saying she's taking break from bevs with move to food side, starting new job at Vosges Chocolate this week . . . After struggle with health issues over past year, longtime American Beverage Assn exec Denise Burke passed away this week, ABA informed members. Denise had spent 35 years at assn, earlier known as Natl Soft Drink Assn, where she most recently served as vp for administration and membership. "In recent months, when her illness was taking a greater toll and Denise was unable to swallow on her own, she kept telling friends how much she wished she could enjoy a nice cold soft drink," ABA prexy Susan Neely wrote in email to members. "Her professionalism, as well as her friendship, will be greatly missed."  

Bridling at paltry buyout they can expect from soon-departing Monster Energy brand, group of Anheuser-Busch wholesalers are organizing to try to win improvements, tho so far they're not showing their hand as to how they'll accomplish that. In emails to fellow Bud distributors, organizers Jeff Vukelic of Saratoga Eagle in upstate NY and Jeff Gower of Wil Fischer in Springfield, Mo, are claiming "overwhelmingly positive" response to initial email sent out last week, and are now gathering signatures for cooperation agreement that precludes supporters from negotiating individual deals with Monster Beverage. Group will be managed by committee that so far includes just Vukelic and Gower but which will be expanded to include representative from each state where Bud wholesalers have come aboard. Per latest memo, terms of any ultimate deal would have to be approved by vote of all wholesalers, who're being asked to contribute initial $2,500 to cover legal and other expenses. Agreement includes confidentiality clause to try to prevent leaks as strategy is developed. Effort is reminiscent of efforts by some Glaceau distributors to challenge buyout terms over transition of that brand to Coca-Cola back in 07; none is known to have prevailed in court challenges, but a few may have settled on slightly sweetened terms.

As reported, Monster Energy currently splits US between Bud shops and Coke bottlers but plans to migrate brand almost entirely to Coke network as it implements deal calling for investment by Coke in return for stake of co. Monster contract calls for buyout of just 1X gross profit, which Bud operators feel grossly undervalues their contribution to development of brand. "Simply stated, one times gross profit is not anywhere near the value of the brands," Vukelic and Gower wrote in initial solicitation to fellow beer distributors last week. As earlier reported, departure of brand could severely weaken many Bud houses, to point of forcing some into sale or merger, some beer consultants have warned. Spectacular growth and margin of energy brands has enabled top brands Red Bull and Monster to negotiate uncommonly stingy agreements with indie distributors; if anything, Red Bull's is worse than Monster's, calling for no stipulated buyout even for terminations without cause.