Alaskan isn't the only brewery that'll spend lots of 2014 in construction-mode. Plans announced this week by O'Fallon Brewing in St. Louis will move the brewery closer to town while bringing the majority of production in-house and away from production at Stevens Point in Wisc. The current 15-bbl brewhouse can turn out a max of 3500 bbls, prexy/ceo Jim Gorczyca told CBN, but the new $7.5-mil brewery, equipped with a 50-bbl system in a 40K sq-ft facility, will initially be able to handle 25K bbls and is scalable to twice that. The expansion is made possible by about $2.5 mil in equity financing along with $5-mil in debt; Jim reports "a number of bank partners that are eager to participate in the process," with plans to have the brewery up and running by the end of 2014. Stevens Point, which currently handles 80% of O'Fallon's volume including all bottles and cans, worked to expand its own brewing capabilities last yr, resulting in "a number of production issues" and a "slight decrease in sales in 2013," Jim said, just around 10K bbls. St Louis represents about 40% of O'Fallon's biz, which Jim wants to keep largely regional. Though it has a Brewers Stash series of higher-alc brands, O'Fallon will remain focused on the "approachable" and "drinkable" brands head-brewer Brian Owens has created since the brewery's second yr, Jim said. For his part, Jim took over the brewery in May 2011 after many years with AB. Since he's been there, Jim has shifted away from smaller distributors with larger footprints to a network of largely Bud wholesalers with smaller footprints and more salespeople.

St. Louis cohorts, Schlafly and Urban Chestnut, are similarly expanding or preparing to. St. Louis Brewery (Schlafly) continues its search for a new nearby facility that could produce a million bbls/yr, according to a recent Post-Dispatch report. Urban Chestnut nearly doubled to 6500 bbls in 2013; its new $10-mil facility will bump capacity closer to 15K bbls. Elsewhere, East Coast Beer Co announced it has closed on property in Belmar, NJ to build its first facility and move from contracting to brewing its Beach Haus brands in-house.  

Goose Island will release 18 new brands in 2014, a dozen of which will be available nationally, according to USA Today. The brand's toast "To What's Next," the core message of new digital video for use on "food, travel and music websites," and consumer-facing magazines, turns focus toward slew of new brands as well as back to hometown Chicago. The video includes lotsa shots of Chi-town, both iconic city views and plenty of screen time for Goose's facility including repeated looks at that brewery's barrel collection. Indeed, voice-over claiming that "for us, it's not about the quantity of barrels we brew, it's about the distinctive quality of what's in those barrels" refers to industry interest in measuring bbls over footage of brewers filling physical barrels with colorful fruit purees. Video's insistence that "we don't need to be the only beer you drink, we just want to be the best beer you drink" cops to common craft consumer habits while hinting at prolific output of Goose and others. Among new brands coming from Goose this year is another re-focus on Chicago: expanding 312 brand to include 312 Urban Pale, coming in March. Also new: a trio of single-hopped seasonal brands, including Ten Hill Pale, already in the mkt, Endless IPA, unsurprisingly a "session ale coming in early April," followed by Rambler Red "in late summer," the paper wrote.  

"A record high" 3,699 "'permitted breweries' overseen" by TTB in 2013, Beer Inst said in release, with 948 new permits issued in 2013, the majority to brewpubs. Wow! Even tho this is much higher number than the 2722 breweries counted by Brewers Assn at the end of 2013, and not all of these permit-holders are presently brewing, these numbers represent a stunning rise. Up by 1/3 in the last year alone. One third of all permits in just 4 states, BI pointed out: Calif at 506, Wash at 251, Colo at 217, and Oregon at 208.  

A new, mysterious, Grapefruit Slam IPA debuted this week, the first brand from equally ambiguous Stochasticity Project that touts itself as "a first-of-its-kind, broad-scale experiment exploring the limits of imagination and the concept of randomness through the craft of brewing." Rather than the usual people-based story craft brewers typically tell, the brand announcement (and Project's website) provides no concrete information about a facility or founder, just the insistence that "there is no happenstance or coincidence. Dumb luck is a fallacy and randomness a commonly accepted mistruth." This and the brand's name references a term from probability theory, keying into the kind of uber-geeky language once reserved for labs but turned endearing by pop culture personas, epitomized by success of tv's Big Bang Theory. The Project's website is just as sparse, turning visitors' attention towards brewing technology and tasting notes; it seems to scream that the brand isn't about brewers but the science and geekitude of brewing.

Besides an Escondido, Calif mailing address a stone's throw from Stone's headquarters and a clear tonal relationship between the copy written for Grapefruit Slam and that written for Stone's bottles, little else points to a Stone connection. Indeed, the biggest clue is the tiny attribution in the corner of the bottle's label: "Brewed & Bottled by Koochenvagner's Brewing Co" in Escondido; a reference to Stone co-founder Greg Koch and Steve Wagner? Consumers, bloggers and retailers have repeatedly pegged the brand as Stone's via social media, but folks at the brewery haven't responded to questions about it. Dominating the bottle art: a large teal interlocking grid of lines, a visual representation, perhaps, of the exact grid founder Greg Koch plans to jump off of when his much-discussed sabbatical begins Thurs, coincidentally (or not…).

If in fact the Project is certifiably Stone, it's an interesting move considering Stone's typical bombasticism and insistence on transparency. If there's one thing that this launch and the sabbatical have in common, it's an uncharacteristic lack of Greg. While co-founder Steve told the San Diego Union-Tribune that "Greg is definitely the outward-facing Mr. Stone" for the paper's deep-dive into Greg's time off, Mr. Koch explained it succinctly: "We want Stone to go on in perpetuity," followed by, "I don't think we need to wait until I die to figure out how to operate without me." But by sharing a day-on-the-job with Greg, the paper demonstrates just how hands-on he is, from menu choices to digital video content and calls to a Calif senator about the state's "under-enforced" ("putting it mildly") pay-to-play laws. Greg concludes that the break will prep the Stone team "for not having everything pass through me. I think it will really be good for the staff's confidence and for the company."  

Craft Brew Alliance was faced with a complex puzzle to satisfy growth opportunities in the Southeast, Midwest and South Central regions. The co wishes to remain "nimble with respect to demand fluctuations," CEO Andy Thomas told CBN, but is "capacity constrained out of Portsmouth," NH, its only facility in the East. (That 71% capacity utilization for 3 mos thru Sep 30, 2013 provided in latest financial report is a "blended rate," Andy said.) Importantly, improving gross margins is a "priority for us this year," Andy reminded. So the next piece CBA has chosen to complete this puzzle is another partnership, this time with Blues City Brewing in Memphis, Tenn, to brew about 100K bbls/yr for CBA, it announced this week.

Beginning in May or June, Blues City will begin producing batches of Redhook's Longhammer IPA and Audible Ale and Kona's Longboard Lager and Big Wave Golden Ale, led by a full-time CBA employee stationed in Memphis, VP of Brewery Operations Scott Mennen told us. The "multi-year relationship" will begin small but "scale up from there," Scott said, and "allows us to relieve some of the stress" in Portsmouth. The decision is "something we've been looking at for some time," he added, noting that Blues City was the "right combination of brewery capability, technical talent" and of course "location." The "sound business decision," in Andy's view, is "not just about gross margins," or "demand," or any one thing, but instead the "intersection of all of those things." The market seems to agree. CBA's stock price grew 6% yesterday, and is hovering around $15.50 today, +7.5% since the announcement late Tues.

Some in the craft space balk when talk of gross margins and stock prices arises, but Andy again reminds of his vision of CBA with the "soul of a craft brewer" and "body of a big brewer." So CBA understands how to brew "indistinguishable" beers at multiple facilities, Scott reminds, but will "stay true to our roots" by maintaining control of the beer thru an alternating proprietorship, "not just give Blues City a recipe." Further, "we're gonna put 'Memphis' on our labels," Scott told us. "Part of craft is pride," Andy continued, and "we don't hide behind where our beers are brewed." So "Memphis will proudly sit beside Portsmouth," and the other cities in which CBA brews.  

Craft still going great guns in its most developed off-premise channel, foodstores, with volume up 15% and $$ up 18.5% for 13 weeks thru Jan 26, according to IRI. So craft gained 1.63 share to 15.4 of $$. Closing in on imports at 18.5 share, down 0.4. Domestic premium dropped 1.9 share to 36.3. Subpremiums down to 12 share of $$ in supers. Cider up 70% and over 2 share of $$ last 13 weeks, a gain of 0.8. Boston Beer continues on a tear as industry's biggest share gainer overall. Its total $$ sales (including Angry Orchard and Twisted Tea) grew 33% last 13 weeks in IRI foodstores (43% for 4 weeks) and gained 0.76 share to 3.73. The 2d biggest share gainer among all suppliers is Crown, up 0.3 share of $$ and growing at double digit rate. But 3d biggest gainer is Lagunitas: up 77% and gained 0.2 share of $$. The 4th biggest gainer and the only other supplier to gain 0.1 share of $$: New Belgium. New Belgium $$ sales up 16.6% for 13 weeks, 27% for 4 weeks. Several other craft brewers grew $$ sales 30%+ last 13 weeks, including Sweetwater, Dogfish Head and Bell's.  

Forbes mag dubs Sierra Nevada's Ken Grossman "King of Craft Beer" in feature that runs in Mar 3 edition. Lotsa familiar facts about Ken's struggling start up, hands-on approach, buyout of partner, ecological bent and decision to build eastern brewery. But some new twists: burned out back in 2007, Ken "seriously explored a sale," sez Forbes and "only the surprise enthusiasm of his three children to keep Sierra Nevada in the family stayed his hand." Now, Forbes speculates that Ken "may be worth an estimated $800 million."

Ken's known far and wide as collaborator and Forbes notes Beer Camp Across America project allows him to "trade in some of [Sierra's] operational know how and national exposure for ties to younger, hipper brands." But Ken also reveals competitive side, telling mag: "It's a grow or die mentality. If our brand isn't growing, somebody else's will. You can have a business model where you put the brakes on and only sell 30 cases of this really exotic, really expensive beer. But we've grown way past that." Joe Whitney, sales/mktg director, chips in that walking down grocery aisle these days prompts question: "What's wrong with this category?" Joe noted "hundreds of players…all these flavors. It's total chaos." By the way, Forbes calling Ken king of craft isn't mag's only dis of Jim Koch. Author points to Jim's recent flap with Tony Magee over Rebel IPA and alleged targeting, saying this "highlighted growing tension between small brewers and Boston Beer, which, at 3 million barrels a year and a $2.6 billion market cap, many now consider a craft brewer in name only." Click here to read the article.  

When working to remain relevant and keep attention on its brands, Alaskan Brewing has been "trying to do that without just scattershot-ing all over the place," co-founder Marcy Larson told CBN recently. The co hopes to expand distribution into Michigan in 2014, she shared, and recently added its first 4-pack, a double IPA called Hopothermia. Both moves have their roots in some of Alaskan's more recent successes: the upper midwest has become a healthy market for the co just as its more hop-forward brands are a growing part of its portfolio. Alaskan just hired a sales rep for Mich, where it's "hoping to sign up distributors this year, who have the same long range thinking that we do," Marcy shared. The state would be Alaskan's 16th and the only new state targeted for 2014; other work will include "filling in all the gaps" in nearby Minn and Wisc, Marcy said. Success in Minn caught the brewery by surprise, she told us, state sales +30% in 2013. Marcy hopes Alaskan will pass 150K bbls this yr, which the co had hoped for in 2013, when it grew about 4% to 146K bbls.

Alaskan's last new state was NM in late 2013, which built on its work in nearby Tex, launched in 2012. Tex is "continually growing," Marcy said, and "a good connection for us." Tex is now a top 5 mkt for Alaskan. Recall comments from Nevada Beverage's Mark Lawson last fall that Alaskan had more than tripled in Nev since moving to the distrib in Dec of 2012 (Sep 5, 2013 issue). Alaskan also made distributor changes in Washington state in 2013, resulting in a "sideways year" in its 2nd-largest market, Marcy said. Washington was about 20% of Alaskan's volume last yr, based on state data. When discussing these changes and other distributor relations with Marcy, she's quick to bring focus back to Alaskan's responsibilities, saying that "we've gotta prove ourselves" to wholesale partners. Meanwhile, "our home market is still growing," she added, averaging "healthy" 5% growth each year.

Flagship Alaskan Amber "is still hanging in there with 50% of sales," Marcy said, but "was pretty flat last year." That's down from close to 80% of sales 10 yrs ago. Since 2004, seasonals have remained about 14% of Alaskan's biz, while more-recent entries have diversified the portfolio and become more important. Last yr that was led by Alaskan White (debuted in 2009), Freeride APA (2013) and IPA (2007). Four packs (a 1st for the brewery) of new double IPA Hopothermia ("Hopo," to Alaskan folks) hit shelves a month ago "but has jumped out quickly above our expectations," Marcy told us. The co's communications mgr/social media rep Andy Kline said he's noticed more mentions of the brand in parts of the US hit by the Polar Vortex and unusually cold weather in early 2014. Pretty good timing.

Alaskan turned inward in 2013, spending much of the year improving infrastructure, Marcy said, including dialing in its famed "Beer Powered Beer" spent-grain boiler. The equipment is currently diverting just over 60% of the facility's diesel energy requirements and closing in on the co's goal of about 70%. Installing and running the system has come with a continuous flow of new internal inventions at the brewery (like a "sonic air horn that blows every three minutes" to prevent build-up, Andy said) to make it work better. This year, Alaskan will focus even more on infrastructure as it begins designing its expansion onto land that will triple its physical footprint so work will no longer feel like "driving a forklift through a closet," as Marcy said. Financing is currently being finalized, "construction is slated to start this spring," Marcy told us and will likely take a couple years to complete. Besides adding the potential for more varied products and packages for Alaskan, breaking 200K bbls "is easily within reach now, and some strategic equipment purchases would take us well beyond."

"Every employee that works here now has a portion of the company" thru Alaskan's growing ESOP, Marcy reminded. The co has been "approached" about selling the brand, but "everybody who's approached us doesn't want to keep our brewery here," which makes no sense to Marcy and co-founder/husband Geoff, so the ESOP represents "our hope for keeping the independence here." They understand "it's not the easy way to make beer by a long-shot," Marcy said, but they're committed to "truly doing what we say we're doing," which includes shipping beer that is, in fact, Alaskan.  

There was a time supermodel Cindy Crawford was ID'ed with Pepsi-Cola brand, and she's made cameo ad appearances on behalf of Pepsi's Propel brand in recent years. But in sign of times, her latest endorsement is at opposite end of bev spectrum from artificially sweetened CSDs: she's turned up touting the Bay Area-based organic cleanse brand Urban Remedy that was founded by acupuncturist and herbalist Neka Pasquale (BBI, Feb 4 2013). Tho details are sketchy, new allies are putting out story that Cindy was intro'd to Urban Remedy by a friend in 2012 and "was so taken with the juices-and with Neka's authenticity, passion and deep knowledge-that she signed on as a partner and brand ambassador," with view to "using her platform to educate her audience about Urban Remedy so they too can access a trusted health resource and enjoy well-balanced food that tastes great." Cindy's image is all over UrbanRemedy.com Web site and she's workin' social media on behalf of brand, tho announcement doesn't specify whether she'll make personal appearances for brand, or what equity or other inducement she may be getting for adopting new role.  

Bev entrepreneur Larry Trachtenbroit, whose Brain-Twist incubator went bust a year ago, is back with monk-fruit-sweetened canned soda line called 2B Sparkling that will go out at 99 cents per 12-oz Rexam can. New line, out in Vanilla, Chocolate and Lemon Ice flavors, clocks in at just 30 calories per full can, and was originally devised to meet NY Board of Education guidelines. Trachtenbroit claims it's been placed in 2,500 vendors at city schools and is ready now to broaden distribution.