After 15 years, Springfield Brewing Co. is moving full-speed ahead on its plans to tap into the local craft beer market on the heels of startup Mother’s Brewing Co.’s early success.
The veteran microbrewery May 31 rolled out a rebranding as SBC, introduced updated beer varieties and touted a new distributor to penetrate the local market. Just days earlier, Springfield-based Mother’s Brewing learned sales in its first seven months of operation were enough to lead all microbreweries that opened nationwide in 2011.
The veteran SBC partner Bryan Bevel said its new line of beers should be on tap this week in at least 25 area locations, including Quincy Magoo’s, Harbell Sports & Grill, Applebee’s on South Glenstone Avenue and Hammons Field.
In November, six partners worked together to purchase the local microbrewery from Paul Mueller Co. (OTC: MUEL.PK) for $3 million with ideas to expand the company’s reach. In January, SBC signed a formal agreement with Wil Fischer Distribution Co. to sell its products to the roughly 900 southwest Missouri locations Wil Fischer serves.
Roughly 80 people attended a May 31 open house at the restaurant and brewery, 305 S. Market Ave., where the new owners unveiled the brewery’s rebranded name and beer varieties – Paul’s Pale Ale, named after founder Paul Mueller; Walnut St. Wheat Beer, after the historic center city street; and 11 Point Pilsner, after the river east of West Plains. The company was established by stainless steel manufacturer Mueller Co. 15 years ago as a showcase for its brewery equipment.
Throughout its history, SBC has had limited distribution because it didn’t want to compete against Mueller Co. customers, said co-owner and brewmaster Ashton Lewis. But with the new ownership group in place, Lewis said it was time for the company that produced 1,200 barrels in 2011 to tackle the local market.
“We can use this Ferrari that Mueller built back in 1997 for what it is really meant for. It’s a killer little brewery, and we’ve never really opened up the carbs and blown out the spider webs,” Lewis said.
Bevel said during the next month, SBC beers would begin appearing on tap and at stores in a seven-county area within 45 miles of Springfield. Brown Derby and Price Cutter stores – the top sellers of Mother’s Brewing Co. beers – already have signed on to sell SBC products.
“(SBC) is going to be where it is a good fit for the consumer, so it might be at grocery stores, liquor stores, bars, restaurants – really where the consumer is interested in craft [beer], and more specifically, local craft,” Wil Fischer President Jeffery Gower said.
Some of SBC’s new beer lines are modified recipes developed by Mueller Co., Bevel said.
“They are tweaks of the old. We never had a pilsner, we retired our lager, and 11 Point is a brand new creation from scratch,” Bevel said. “The Walnut Street Wheat is a version of the wheat beer Mr. Lewis has been making for 15 years, and the same can be said of Paul’s Pale Ale. We are very proud of our lineage to the Mueller family and products, but we are moving forward.”
Bevel declined to disclose revenue goals or projections, but he said both Lewis and Wil Fischer have been itching to sell SBC beer locally since the company opened.
“We certainly want to secure the local market and be the beer of choice of craft brewers in the area. We are not going to do this half heartedly,” Bevel said.
SBC was distributed by Heart of America Beverage Co., which also sells Mother’s and Kansas City-based Boulevard Brewing Co., until Bevel and company took over.
Wil Fischer’s Gower said SBC would be available only at bars and restaurants at first, and on July 9, bottles would begin hitting retail stores.
The rookie Brewed just a few blocks northwest of SBC in downtown Springfield, Mother’s Brewing sells its beer in more than 300 area locations.
Mother’s started producing beer on tap at 215 S. Grant Ave. in May 2011 and began supplying beer at Wal-Mart stores through distributor Heart of America Beverage in August. Mother’s sells its beers in Springfield, Joplin, Branson, Poplar Bluff, Cape Girardeau and Kansas City, according to owner Jeff Schrag.
In its first seven months of operation, the company sold 2,331 barrels to lead all other microbreweries that opened nationwide in 2011, according to the Brewers Association’s annual industry review, published in the May/June issue of The New Brewer. Schrag said Mother’s generated nearly $1 million in revenue during 2011, and he expects to double that amount in this full calendar year.
“I knew what other breweries had done that had opened in the last few years, and I spent lots of time researching those that were successful and those that were less than successful. And as the community began embracing our beer, I became increasingly excited,” Schrag said, noting the Brewers Association’s top rookie brewery title came somewhat as a surprise because this area is not necessarily known for its allegiance to craft beer.
“It is not like Colorado or Oregon or Massachusetts, so it is especially gratifying,” Schrag said.
According to the Brewers Association, craft beers account for nearly 6 percent of all beer sales in the U.S., but Missouri’s craft beer sales only comprise a little more than 3 percent of the market.
Schrag said he thinks local companies really supported Mother’s because they wanted to help it succeed.
“People want to root for their local brewery like they want to root for their local sports team,” he said.
As for the new competition, he said there is room for all.
Schrag pointed to sales of Kansas City-based Boulevard Brewing Co., which posted 2011 revenue of $32 million, up 11.2 percent compared to 2010. Boulevard Brewing has been growing sales in the local market, Schrag said, even as his company entered the retail scene. Schrag said he believes SBC will further increase interest in craft beer – described by the Brewers Association as often containing nontraditional ingredients for distinctive flavors – and it’s the Anheuser-Busch companies of the world that should be worried.
“(SBC) is increasing the pie for all craft brewers,” Schrag said. “And flavor always wins.”
This installment of Springfield Business Journal’s Architects & Engineers Project Report showcases 26 endeavors by area design and engineering professionals.
