All eight craft brewers - Deschutes, Dogfish Head, Firestone Walker, Great Lakes, Green Flash, Harpoon, Stone and Odell - "received high marks from distributors" in 1st Craft Brewer Performance Survey conducted by Tamarron Consulting. In fact, "overall scores for the craft brewers were much higher, on average, than the scores given to the suppliers on Tamarron's Supplier Performance Survey," tho that could be due to larger number of distrib responses, and/or higher expectations of bigger suppliers, noted Tamarron. "Total of 219 distribs responded to the survey," where each "rated the performance of the craft brewers on a scale of 1 (Poor) to 5 (Excellent) on 44 questions within a variety of sales and operations related competencies." Odell led all suppliers "with an overall average performance score of 4.15," followed by "Deschutes (3.87) and Firestone Walker (3.64)." Each of those were higher scores than Boston Beer (3.59), Sierra Nevada (3.03) and New Belgium (3.15) received in the 2013 Supplier Performance Survey of bigger players. However, gotta note only 14 distribs responded for Odell, compared to 54 distribs for Deschutes, 181 for Boston Beer, 117 for Sierra, and 104 for NBB. "Response rates (for the craft-focused survey) as a percent of total distributor networks ranged from 29% for Green Flash to 64% for Odell."

"Not surprisingly," biggest oppy for craft brewers is natl accounts, both off and on premise, with avg scores of 2.61 and 2.79 respectively. That's the lowest score by far for any category, with c-store performance rated lowest at 2.26 (again, no surprise). Sales training and account staff training were rated craft suppliers' greatest strengths within natl accts, and present "a clear opportunity…to lead the industry in training their distributor partners on craft products and initiatives," thought Tamarron. Meanwhile, over 2/3 of distribs thought "relationship between craft brewers and distributors will have improved," in next 5 yrs, and 89% already think relationship is "good" or better. Then too, majority of distribs that responded felt these suppliers deserved "relationship" and "performance" grades of an "A or B" when asked at the beginning of the survey, which should be benchmark grade for suppliers in "Tamarron's perspective." That includes all 14 of Odell distribs, 50 of 54 Deschutes distribs, 19-20 of 22 Firestone Walker distribs that responded. Dogfish Head had 84% of distribs (42 of 50) give 'em an A or B for relationship grade, yet (72%) six fewer distribs gave an A or B for performance. That was largest differential between Relationship and Performance grades among suppliers. Stone and Green Flash had largest amount of distribs that didn't give an A or B; 16 distribs rated Performance lower than an A or B for both Stone and Green Flash, while 12 Stone (out of 50) and 11 Green Flash (out of 47) distribs rated Relationship grade lower than A or B. Yet overall each brewer scored above natl average score of 3.09 in 2013 Supplier Performance Survey.  

Craft brewer trends landed all over the map in Bay State last year, ranging from +321% to -11% for just 20 largest craft suppliers to state. All in, craft segment grew almost 9% to over 690K bbls in Mass in 2013, we estimate, not including craft brands from larger suppliers (we lowered our craft estimate for 2012). But overall biz in Mass down 1.5% to just over 4.1 mil bbls. So craft nearing 17 share there. Top 20 craft suppliers had about 83 share of craft, collectively up about 7%. All other smaller craft suppliers jumped about 18%.

Boston surprisingly up just 0.2% to about 248K bbls in its home state during very healthy year overall (looks like Boston number does not include cider, but does include Twisted Tea). Boston has a 5.8 share of total beer shipments at home. Take Boston out and remaining craft suppliers up around 14%, led by 9.4% gain by Harpoon (Mass Bay). At 96,666 bbls in Mass in 2013, Harpoon does almost half its volume in its home state. Yet it's still less than half Boston's size and about three times the size of #3 craft supplier in Mass, Shipyard. Shipyard brands -0.1% there last yr. Sierra Nevada slipped further at #4, -6.6% in Mass to just over 30K bbls. In-state brewers Wachusett, +14%, and Mercury/Ipswich, +6%, both grew in state. But Berkshire -6% and Long Trail -2%. As elsewhere, Lagunitas made big moves in Mass in 2013: +126% to over 14K bbls. Just behind, Dogfish Head built shipments 24%, just slightly ahead of its total biz trend in 2013. These ten brewers shipped over half a million bbls to Mass in 2013, about 73 share of total craft in the state.

Plenty of smaller players showing healthy growth in Mass too. Cisco Brewers, based in Nantucket, more than quadrupled in the state to over 9000 bbls after adding cans contracted at FX Matt in Utica, NY. Nearby Allagash grew another couple-thousand bbls, +35% in Mass last year. And home-state lager-brewer Jack's Abby doubled in 2013 to over 8000 bbls, just ahead of Mayflower, +26%. Brooklyn built shipments 11% in the state as capacity-constrained Smuttynose dipped 11%. Local brewpub chain Beer Works (Slesar Brothers) grew 14%. Lotsa out-of-state regional craft players helped along by growth in Mass last year: Oskar Blues +25%, Troegs +26%, Gordon Biersch +26%, Stone +47%, Firestone Walker +32%, Founders +88%, 21st Amendment +80%, Left Hand +27%, Baxter +24%, Boulevard +17%. But not all hunky-dory: Victory, Southern Tier, Anchor, Sixpoint and Green Flash all shipped less beer to Mass in 2013 than in 2012, all off pretty small bases. This Mass report includes lots of tiny new in-state brewers, many shipping just a couple-hundred bbls in 2013. Clear exception is Newburyport Brewing shipping over 3000 bbls in its home state in year-one. Separate reports from some other small players indicate this report may not be capturing their entire volume.  

Issue of big upfront distrib dollar commitments to craft brewers has been relatively quiet since New Belgium had to restructure Ohio entry last yr. But details emerging from announcement yesterday that Deschutes went statewide with liquor distrib Wirtz (as it had previously in Ill) suggest that some craft brewers still seeking, and getting, serious dollars. Tho initial talk had been of $3-4/case commitments from distribs, at 11th hour investments changed to $9.50/case for 3 yrs, including standard $1.50 per case co-opped, but an "unheard of" additional $8/case, as one distrib told Express. In year 4, it goes back to the $1.50/case only. Turns out this is pretty standard practice in liquor biz. In effect, distribs give up entire gross profit for 3 yrs to get new brands. That $8/case considered "market expansion fund" and includes estimated costs for brewery rep, chain rep, cooperage and other start-up costs. Adds up to approx $1.4 mil over 3 yrs, so distribs would be footing entire expansion cost for Deschutes. Deschutes reportedly looking for fairly modest 50-60K cases, in mkt where top 10 craft brewers alone sell over 4.3 mil cases of craft annually, so Deschutes would not crack that top 10.

Deschutes strategy is notable from several angles. First of course is eye-poppin' commitments and question of whether other craft brewers can/will command similar commitments (where legal), and get 'em. Will this distiller approach spread in beer? (Deschutes natl sales director came from Diageo.) Second is that even as a number of craft brewers have sought to move out of big spirits houses and/or statewide coverage from one distrib in recent years, Deschutes is doing one-stop shopping in Wisc, as it did in Ill and several other midwest mkts. Must be working for them. Third: these commitments undermine yet again claims by craft brewers about challenges they face getting market access, especially for established, growing craft brewers.

Deschutes is getting some expansion pop. It added 4 states in 2013 and 3 so far in 2014 (Oh, Ky, Wisc) plus additional Pennsy mkts, with Mich coming on later this yr. It sold over half of its 286K bbls in 2 states last yr - Oreg and Wash - and up just 1.4% in those states in 2013 (+13% overall). So far this yr, Deschutes volume +7.3% nationally in IRI multi-channel + convenience data thru Apr 27, $$ sales up 11.4%. Number 1 brand Mirror Pond up 0.7%, dollar sales +3.8%. But Seasonals down 3.2%, with $$ flat.  

Milwaukee's Lakefront Brewing plans to spend $1.45 mil to expand cold storage and warehouse space, with plans to hire around 23 full-time and 50 part-time employees, according to Milwaukee Business Journal. Founder Russ Klisch told the paper the brewery's "up another 20%," after finishing 2013 +21% to over 40K bbls. Funky Buddha of Miami plans to bump capacity all the way up to 40K bbls after producing about 5000 bbls in 2013, according to a local NBC affiliate.  

It finally happened. After several years of including a couple of beer industry vets as finalists for Outstanding Wine, Beer or Spirits Professional, James Beard Foundation bestowed award on Garrett Oliver, Brewmaster at Brooklyn Brewery, last week. This is the first time the award has been given to a beer professional. Garrett has openly criticized those in the food world who have resisted accepting beer into high-end dining experiences and accounts. Is this award a sign of coming attractions?  

Plenty of media hits already early in Brewers Assn-backed American Craft Beer Week and plenty of other hits displaying craft's continued slip-side into mainstream culture. Cable network A&E signed up for a pilot of coming reality show Big Brew Theory, following some MIT students as they build their own small brew biz, produced by Mark Wahlberg, according to United Press International. Recall, Esquire channel's BrewDogs series (featuring famed Scots behind BrewDog brand collaborating with US brewers) begins its second season late next month. Meanwhile, out in Okla, the Hanson Bros have been humping new Mmmhops brand and Hop Jam fest in Tulsa this weekend. After populating teenie-bopper dreams in the late 90s, the 3 brothers now seem to be hopping for a piece of craft beer green. Hanson Brothers Brewing Co continues to work with Tulsa-based Mustang Brewing to produce Mmmhops and develop new brands. Even TIME tapped the trio for comments. Speaking of gimmicky-sounding brands from small brewer/celebrity teams (which seem to sprout from genuine interest on the part of celebrities, at least in these cases), The Tom Green Beer, collab with comedian Tom Green and play on The Tom Green Show from 90s, will make its US debut next month, according to BeerPulse. Beau's All Natural Brewing has made and sold the beer in Canada for a year.  

Here's another glimpse at a small brewery becoming part of new "community hub" in historic Latino San Diego neighborhood, following intriguing LA Weekly look at similar communities and the small breweries growing inside them (see April 16 issue). Border X Brewing linked up with nearby taco cart/caterer San Diego Taco Company to open combo tasting room/taqueria in heart of Barrio Logan, a heavily Mexican-American neighborhood back to the early 1900s at least. New biz will be Border X Brewing's second tasting room, joining its facility in Otay Mesa (a nearby border-community), according to San Diego Free Press. "We're serving a demographic that hasn't been participating" in growth of craft, mostly in northern part of San Diego County, founder David Favela told SDFP. Extensive quote from David insists "we don't want to be a bar. We want to be a community hub" that will "use craft brewing as a catalyst to drive economic redevelopment in predominantly Latino communities throughout southern California and other border towns." Tho still brewing 3-bbl batches of beers inspired by Latino culture and flavor, David sees the biz as part of "a Latino business renaissance," in which the community itself can "redefine the modern Latino experience…. And not have corporations define it for us." He's also cognizant of the pressures of gentrification and keeping the beer, the brands and the tasting rooms welcoming to community members. "Things are going to change here without a doubt," David told the paper, "but how do we change in a way that this place retains community and its history and legacy?"  

Half Acre has requested a "zoning change that would accommodate not only brewing, but also allow for a taproom, restaurant and outdoor beer garden," reported DNAinfo Chicago. However, when founder Gabriel Magliaro publically addressed crowd of Bowmanville neighbors, "outlining his plans" for the brewery, there were mixed feelings from residents about the new 60,000 sq-ft, set to start shipping beer by the end of October. "A number of attendees" reportedly offered their support to Half Acre, while "others expressed concerns about increase in traffic and noise, as well as on street parking," sez DNAinfo. Gabriel addressed these potential issues, reminding residents that "Half Acre is a relatively small operation," using smaller trucks, and "the site's lot has room for 70 cars," to fit its 40 employees, many of which bike to work. "This building was for sale - anything could have moved there," he added. Some neighbors had no problem with the production facility, yet were worried that a beer garden could attract "drunk, unruly patrons," or simply an "influx of consumers." To that, Gabriel used current Lincoln Ave brewery as an example of a "brewery and taproom that peacefully co-exists," with the rest of the community, adding "we've had zero issues." Ald. Pat O'Connor sees Half Acre as an oppy that "could be more of an amenity for our community if we extend ourselves a little bit…Something like this could make Bowmanville famous," he told DNAinfo. Yet O'Connor will "continue to gather community feedback…before making a decision about the zoning change." "If given the OK for the taproom and restaurant, those could open by spring 2015," said Gabriel. Meanwhile "the north Center brewery will continue to make small batches of beer…and the taproom will expand." New facility will up capacity from 14K to 30K bbls.  

Few beer-related raw materials industries affected more by growth of craft than those in hop supply. Boom of heavily-hopped IPAs (and general trend that an "American-style" anything has more hops than European counterparts) have done a doozie on hop usage and prices, according to handful of hop-stories printed this week. The number of hop varieties available could jump by as much as 50% from 200 to 300 in the next year, according to a recent entry from Brewers Assn's Julia Herz on CraftBeer.com. Meanwhile, Idaho growers added another 400+ acres in 2014, +12%, according to Capital Press. Importantly, hop fields take at least 2-3 years to mature, and first-year yield can be significantly lower than that of even second-year plants (at most 50%, according to one Ida rep). Since hop growers in the state added over 900 acres in 2013, +39%, yield this year could grow at a much higher rate than acreage. Ida will still only grow a fraction of total US hops, most of which grow in Wash. But 80% of new acreage devoted to higher-priced aroma hops, typically used in greater quantities than traditional bittering hops. Increased production and purchase of aroma hops just part of average price per pound increase from $3.18 to $3.59 in 2013, according to USDA stats. "It's definitely a seller's market," one Ida grower told the paper.

Aroma hops could cost up to $7-10 per pound across the pond, according to Financial Times article picked up by CNBC. Hop buying is "more challenging now than just about any time in my career," Sierra Nevada brewmaster Steve Dresler said, adding that "the next couple of years will be interesting as brewers compete for what's being sold and what's being grown." On the other side of the transaction, "it's been a struggle for the hop industry to keep up with the new demand," US supplier BSG CraftBrewing's Sean McGree said. Indeed, Alex Barth of German hop trader Barth-Haas Group described craft brewing as "like a pandemic that's spreading everywhere. Even China has 1,000 craft brewers." And lots of them want more hops. On recent trips to Europe, both Rob Tod of Allagash and Vinnie Cilurzo of Russian River noticed lots more American-style IPAs made by Belgian and German brewers, the pair shared at Craft Beverage Expo last week.  

Ballast Point has launched its spirits in Texas, where co is "taking a stance using beer distributors to go to retail," cco Earl Knight announced. Andrews Distributing will get products in Dallas area, followed by Keg 1 Distributing in Austin starting this Jun, and entry into Houston mkt with Faust Distributing shortly after. Then too, "the transition of our spirits away from a traditional spirits distributor in the state of California to Crest, Reyes Beverage Group, Central Coast Distributing will start on Monday." So a handful of beer distribs that traditionally haven't sold any spirits are starting to embrace the idea (doesn't hurt to have a partner as hot as Ballast Point making the sale). In fact, virtually all of Ballast Point's spirits distribs also are beer distribs, sez Earl. Currently Ballast is doing approx 800 cases of spirits per month (6 bottles per case), Earl told CBN, and about 70-75% of spirits biz is done in Calif. Rest is spread out between 9 other states across the country, tho mostly out west. And recall, Reyes' new SoCal distrib unit, Unique Craft Solutions, will also include craft spirits in its portfolio (including Ballast). "When you think about it they are distribution platforms…just need to equip them with the tools and knowledge," Earl added. Editor's Note: Fact that Ballast Point (as well as other craft brewers) and beer distribs cozying up to spirits in these ways further complicates Beer Institute's Know Your Drink efforts.

Meanwhile Ballast still flyin' locally with beer up 64% at Crest Distributing YTD, sez Earl, and expects to break 600,000 cases in 2014, (see April 1 issue). And nation-wide, Ballast $$ sales up huge, 171% thru Apr 27 in IRI multi-channel + c-store, making it the 29th highest selling craft co in scans to date. Its Sculpin IPA remains one of the fastest growing brands in scans, up 271% thru Apr 27. New 107,000 sq-ft facility set to come on line in coming mos, which will also include a 185 hectoliter brewhouse for spirits products.