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November 11, 2004

Business is up for Caldera Brewing Co. head brewer and co-owner Jim Mills, seen here in front of stacks of kegs, as it is for Central Point’s Walkabout Brewing Co. and Ashland’s Standing Stone Brewing Co.
Mail Tribune / Andrew Mariman

A cold one gets hot for brewers

By JENNIFER SQUIRES
for the Mail Tribune

Sold by the pint, pitcher, keg and barrel, local breweries are seeing growth come at a steady draft.

Caldera Brewing Co. and Standing Stone Brewing Co. of Ashland, and Walkabout Brewing Co. of Central Point directly employ just a handful people, but their sales growth reflects state and national industry trends.

While the "craft beer" industry has slipped from its boomtime in the late 1980s and early 1990s, the sector has grown every year since data collection began in 1980. The industry increased by 3.4 percent in 2003, but local efforts eclipse those numbers.

"We’re continually growing," Caldera head brewer and co-owner Jim Mills said. "It’s not super-fast, but we’re up about 11 percent year-to-date."

Upstart Walkabout has seen double-digit growth the last couple of years and is catching up to Caldera’s production level.

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Caldera beers, sold only in kegs and half-kegs, can be found in more than 100 restaurants and bars around Oregon, including about 25 venues in Portland, at the Crater Lake Lodge and in Lakeview. According to the Oregon Liquor Control Commission, Caldera sold 887.6 barrels of beer (a barrel is two kegs) in the state during the first six months of the year, making it Oregon’s 35th top seller of beer.

Standing Stone’s sales also have increased. President Emile Amarotico estimated the brewpub will sell about 310 barrels of beer in 2004, up from 300 barrels last year. Aside from some individual keg sales, Standing Stone sells the majority by the pint or pitcher inside the restaurant. Through the end of June, they had sold 135.5 barrels, according to OLCC figures.

"It’s pretty much strictly in-house," Amarotico said. "You can always dream, but that really is a different business than we’re in."

The Osprey in downtown Medford called it quits as a brewpub in September 2000, citing difficulty maintaining product consistency. They sold the equipment and used the extra space for a larger kitchen and more room for customers drinking other breweries’ beers.

Some of the bar’s brewing equipment went to Ross Litton, the transplanted Aussie who owns Walkabout. Litton moved here in 1989 and started his own brewery in 1997 from the remains of the Siskiyou Brewpub, former home to Rogue Ales, which evacuated Ashland for Newport when the brewpub was flooded out in 1997.

The OLCC reported that Walkabout sold 257.5 barrels in the first six months of this year. Litton said the year’s goal is 533 barrels — a 13 percent increase over 2003’s 472 barrels. Last year’s production was a 19 percent increase over the 396 barrels produced in 2002.

"We’re pretty busy around here," Litton said, adding that he and his one part-time employee produce, sell and distribute their entire production of four to seven types of beer (depending on the season).

"We do self-distribute in the state of Oregon on the I-5 corridor," Litton said, "and we make bulk sales to the public in the form of half-barrels (kegs), quarter-barrels (pony kegs) and sixth-barrels (about 5 gallons)."

Mills, the Caldera head brewer, said it’s a tough business, but worth it.

"The Pacific Northwest is the most competitive market in the world," he said. "But it’s a fun industry to be in."

Oregon has 52 craft breweries — everything from small-town restaurants that make their own house draft to micro-brew giants such as Full Sail Brewing Co. in Portland.

Still, most beer consumed in the state is from the top four giant brewers — Anheuser Busch, Coors, Miller and Pabst — which collectively sold about 1 million barrels of beer in Oregon through the end of June, according to the OLCC. Beer consumption in the state was up about 5.7 percent through the period.

Like other restaurants in downtown Ashland, there is a clear season at Standing Stone for selling beer. Amarotico said the restaurant will go through four times as much beer in July and August than during December and January.

"People generally drink more beer in the summer," Amarotico said. "For us, it definitely varies by the season."

Because Caldera markets statewide through a distributor, the company’s sales have been more balanced. The company sold about 200 barrels of beer in June, while the average month in winter consumes 140-150 barrels.

"Winter definitely slows down, but it’s not dreadfully slow," Mills said.

To keep things exciting during the winter months, Mills and his staff have a new fermenter that produces three kegs instead of the usual 40. The mini-fermenter will make it easier for Caldera to experiment with new recipes in small batches. Up first — a passion fruit ale.

"We’re going to have some fun with it," Mills said.

Jennifer Squires is a reporter for the Ashland Daily Tidings. Reach her at 482-3456.Mail Tribune Assistant City Editor Scott Smith contributed to this report.



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