It’s easy to look at a seemingly successful large brewing company, see their beers (and those of their acquired brands) on the taps and shelves all over the county, knowing they are also distributed throughout most of the country, and assume all is well. But even though the craft-beer boom is in full swing, with a record number of new breweries opening throughout the nation, the industry has never been more challenging, especially for regional breweries ranking among the nation’s largest.
Last January, Mira Mesa-based Green Flash Brewing—which also operates a satellite barrel-aging brewery in Poway as well as a production brewery in Virginia Beach, Virginia, and a soon-to-open brewpub in Lincoln, Nebraska—laid off around 25 employees. Given Green Flash’s status as the 37th largest craft brewing company in the U.S., this was big news. And so, too, is today’s announcement that the company has made the difficult decision to let go of 15% of its workforce.
That percentage equates to 33 employees. Owner Mike Hinkley says that while no Green Flash tasting room or Alpine Beer Co. (a brand acquired by Green Flash in November 2014) staff will be impacted, it will touch on other departments, primarily those serving business administration functions—marketing, events and the like—in both San Diego and Virginia Beach.
“I am greatly saddened by folks having to leave the company. We simply could not compete effectively with such broad geographic reach,” says Hinkley. “We will soon discontinue shipments to distributors that currently constitute about 18% of our wholesale trade revenue. With that reduction in revenue, we have to reduce expenses accordingly.”
Hinkley reports the company has decided to consolidate distribution, reconfiguring to best serve locales nearer to its production facilities. Moving forward, beer brewed and packaged at Green Flash’s Mira Mesa facility will be shipped to California, Arizona, Hawaii, Nebraska, Nevada, Texas and Utah, while Virginia product will ship in-state as well as to Delaware, Maryland, New Jersey, New York, Ohio, Pennsylvania and Tennessee. According to a press release, the refocus will enhance the company’s operations and ability to provide consumers with fresh beer.
When asked what factors led to the need to reconfigure distribution and consolidate Green Flash’s workforce, Hinkley responded, “The industry has continued to grow more crowded and complex in recent years. Big Beer’s acquisitions and consolidation of the biggest brewers created pressure from the top. Thousands of small brewers opening across the country created pressure from the bottom. Under those conditions, we are pulling back into the territory where we are the strongest and concentrating our resources.”
When asked about the future of Green Flash’s Poway-based Cellar 3 barrel-aged beer operation, Hinkley says it will remain open and that, months ago, the decision was made that, despite management’s belief that the beers are of high quality, the amount of beer that is packaged there and shipped to retailers will be reduced significantly.
Even in the midst of consolidation, Hinkley and company are looking to the future with optimism. The Lincoln brewpub is on-schedule with a February opening timeframe confirmed. Head brewer Jeff Hanson (formerly of Omaha’s Brickway Brewery and Upstream Brewing, and Boulevard Brewing) will create Green Flash core beers under brewmaster Eric Jensen’s supervision, as well as beers of his own devising, and that facility will eventually supply the entire state of Nebraska with Green Flash product.
Should this prove a viable business model, Hinkley says they will look to replicate it elsewhere, but there are no plans for such expansion in the immediate future. For now, the company will focus on its revised approach to distribution—it had distributed to 50 states, 35 more than the count listed on its newly announced business plan.
From the Beer Writer: Acronyms are used across the alcoholic-beverage industry, typically to describe particularly fine product. Cognac uses VSOP (very special/superior old pale) and XO (extra old), and I’ve always been a fan of Napa-based Chateau Potelle’s using VGS (very good shit) to describe its finest vintages. Alpine Beer Company issued an acronymous handle to its Mosaic-, Simcoe- and Citra-infused India pale ale…Alpine HFS. It’s not so much a descriptor as a reactionary phrase broken down into a publicly suitable format; the sort of happily expletive-laced comment one’s liable to make after tasting this rich, bold IPA. It debuted to great fanfare last year as a draft-only offering before taking a bronze medal in the American-style Strong Pale Ale category at the Great American Beer Festival. The next chapter in this brew’s short but illustrious lifespan is its first release in bottles. That will take place starting at noon, today at Alpine’s tasting room in its namesake East County town. They don’t figure to stay in stock for long. Show up tomorrow to pick some up and you may find yourself shouting Holy F***ing S*** for all the wrong reasons.
From the Brewer: “The beer that named itself. We always strive to offer the best beer we can possibly make, and with this beer we felt it was perfect right out of the gate. No adjustments were necessary. We got exactly what we wanted out of the beer: huge hop aroma, light body and immense drinkability. We hope this beer stays in heavy rotation.”—Shawn McIlhenney, Head Brewer, Alpine Beer Company
Earlier this week, news broke about popular local brewer Cosimo Sorrentino resigning from his dual-head brewer post at Monkey Paw Pub and Brewery and South Park Brewing Co. A fixture in the community who made a point to communicate and collaborate with nearly every brewery within the county, it was surprising to here he was stepping down, but even more confounding to discover he would absolutely be leaving San Diego come the New Year. More information was in order, so we went to the source to appease readers’ logical queries and concern.
West Coaster: What led you to depart your position heading Monkey Paw and South Park Brewing?
Cosimo Sorrentino: A combination of factors, the biggest of which is a necessity for personal growth. I was lucky to learn my craft in the community I grew up in and under an owner that has so much passion, but I feel that I have reached a point where to progress I need a little less comfort and a new environment.
WC: Though your next step has yet to be determined, you are certain you will leave San Diego. Why is that?
CS: I feel San Diego has crossed over to a new era in brewing. The community spirit is being fractured; too many breweries fighting over the same styles, following trends for profit, not enough quality staff to provide front-of-house service…and let’s not get into the distributor issues. This was inevitable and will not necessarily be a bad thing for those making or drinking beer. San Diego beer will get better and those that succeed will benefit from the competition! For myself, I hope that finding a location where the scene is a bit younger will allow me to help foster the same type of conscious collaborative growth that has led to San Diego’s emergence as the beer capitol of the world. It might be selfish, but I have really enjoyed the journey so far and want to keep making new beers with and for new people.
WC: After being such a peacemaker and heavy collaborator within the San Diego industry, is it difficult for you to move on?
CS: Not to be cliché, but this is truly the hardest decision I’ve ever had to make. It means stepping away from, not only the coolest brewing job I’ve seen, but leaving family, friends and, potentially even my dog. I am bummed that I will not have the chance to collaborate with some guys and gals in town—especially some of the new breweries—and that I will not be part of Monkey Paw’s next step as a business, whatever that may be.
WC: What will you miss the most about the San Diego brewing and beer scenes?
CS: One word: HOPS! No, but seriously, I will miss the universal nature of the love for beer and brewers in this city. It will be weird to walk into three-or-four bars in an evening and not run into a fellow brewer or maybe even an educated beer-drinker. I’ve never felt the camaraderie and respect that I have experienced in San Diego with brewers and consumers alike.
WC: What are some of your finest memories of your time brewing professionally in San Diego?
CS: Wow. Hardest question…I’ll never forget the first week I got the job at Paw. I had every brewer that I had looked up to either drop in or hit me up on the phone to help me get dialed in. It was a whirlwind, and I did not fully appreciate it at the time, but this foundation paid off and I will be forever grateful. Those memories were revisited last year when I got to sit in on a collab at Karl Strauss on Columbia Street. Not only did we have (KS brewmaster) Paul Segura, (Gordon Biersch head brewer) Doug Hasker and (Monkey Paw/South Park Brewing owner) Scot Blair brewing that day, (Ballast Point Brewing VP) Colby Chandler dropped in to open some bottles as a farewell to (former Green Flash Brewing Co. brewmaster and current Silva Brewing owner/brewmaster) Chuck Silva on his last day in San Diego. This was only made better by the fact that I had invited (North Park Beer Co. assistant brewer) Joaquin Basauri to drop in. This was early on in Joaquin and I’s friendship and the look on his face as we drank barleywine and talked shop with these godfathers brought me back to that feeling of awe.
WC: What were your goals for the semi-controversial public-forum you held to discuss the changing landscape of San Diego beer?
CS: While the forum never became a series, I hope that the discussion was opened and people are more likely to speak honestly and in an informed manner about the evolution of our city and the industry. I am glad there is a reduced amount of animosity because that energy can be redirected towards progression instead of hate and fear.
WC: Any parting words for our readers?
CS: Thank you for absolutely everything. I hope I’ve returned 10% of the happiness and joy you have given me.