Brewery on the Brink

Over the last 30 years the microwbrewing industry has grown exponentially. In 1990, there were less than 100 breweries operating in the United States. By 2009, that number increased to well over 1,500 breweries. Much of this growth is due to the renaissance of the local brewing company (craft brewing). In 2008 the craft brewing industry crew by nearly 6 percent by volume while producing some 8.6 million barrels of beer. In the first half 2009, the craft brewing industry continued its boom with growth of 5 percent by volume and 9 percent by sales. At the same time overall sales of beer were actually down 1.3 percent.

In 2000, a couple of hometown heroes in Buffalo, NY, Tim Herzog (pictured) and Patrick Mullins, started the Flying Bison Brewing Company. The first commercial brewery in Buffalo since 1972,* FBBC offered a unique flight line of brews from a couple of guys who got their start brewing at home. (Larry "Red" Mrozek was Mr. Herzog's original partner but he passed away before the brewery opened.)

Despite a slow start, FBBC started making headway in Western New York. Exported from Buffalo's Black Rock Neighborhood, the flight line can now be found in more than 100 stores and pubs across the region. Aviator Red is the standout of FBBC's 4 flagship brews. The company boasts an additional 6 seasonal brews and they recently unveiled Rusty Chain Beer; a collaboration with Green Options Buffalo, Buffalo Rising, and Buffalo MicroParks. Rusty Chain is a community effort promoting the positive impacts of bicycle riding.

We've had our share of FBBC brews, particularly focusing on Aviator Red and were disheartened recently to find the company in dire financial straits. The growth of the craft industry was not enough for FBBC to offset the difficult economy of Western New York (Buffalo is the 3rd poorest city in the US) and the skyrocketing costs of brewing ingredients. A craft brewer in the nation's poorest of cities can't simply raise prices on the consumer when the costs of raw materials go up.

According to reports in The Buffalo News, FBBC sales had been rising. According one report, 2008 sales increased by $25,000. It's just not enough to stay in the black and keep the lenders at bay, particularly when material costs increased by $35,000. Said one FBBC shareholder, "A couple of years ago, Tim was right on the edge of turning the corner and really making it."

Is there a silver lining to this dark cloud? Sort of. If you're the romantic entrepreneur type waiting for a Tommy Boy-like story you will be disappointed. If there's good news to report it's that Mr. Herzog offers a compelling product. So compelling that F.X. Matt Brewing Company in Utica, NY has already placed an offer to purchase the company and keep brewing operations in Buffalo for the immediate future. FX has the capacity to purchase raw materials for less and efficiencies can also be had in the bottling operations. “Utica is very efficient at doing long runs, Buffalo is very good at doing short runs,” said Steve Jackson, a shareholder and member of Flying Bison’s board of directors. “The two facilities would complement each other.”


According to reports, FX will brew Flying Bison in Utica with specialty runs of Saranac and FBBC to be brewed in the Buffalo brewery. FX CEO Nick Matt said "[w]e like Flying Bison as a Buffalo-based brand, and we think there is more opportunity for a Buffalo-branded product. Frankly, we think it can be a lot bigger than it is today."

The story is not quite over as the shareholders of FBBC must approve the sale to FX (the vote will occur on February 11, 2010). If approved, Mr. Herzog will be offered an employment contract. If the sale is not approved by shareholders, Sear Capital, an Austin-based investment firm with Buffalo roots, may submit an offer.



*Iroquois Brewing 1830-1972

Sources: The Buffalo News (January 20th and January 24th 2010), ArtVoice, Flying Bison Brewing Company. Statistics from the Brewers Association Craft Brewing Facts.

Happy Anniversary

This year marks the 75th Anniversary of the beer can. The Gottfried Krueger Brewing Company signed an agreement with the American Can Company in November 1933 and just over a year later the cans were on sale. On January 24, 1935, Krueger's Cream Ale and Krueger's Beer was presented to the folks of Richmond, VA in aluminum cans. The cans were “Vinylite” plastic-lined, flat-top cans and were so successful that by March of 1935 Krueger sales were up 550 percent. By August of that same year the company was buying 180,000 cans daily.

By the end of 1935, three can companies (American, Continental Can Company, and National Can Company) sold 160,000,000 beer cans to many large and regional breweries across the country. Anheuser-Busch and Pabst were the first major brewers to offer beer in cans.


Aside: Dan Morean's Breweriana.com has much more on the history of the beer can. Packaging Digest also offers an ode to the beer can.

Wreck of the Edmund Fitzgerald

This week we've been drinking a lot of the Great Lakes Brewing Company's Edmund Fitzgerald Porter.

We're in the dark heart of winter so would prefer to be hibernating rather than reviewing brews. You really only need to know that this is a good everyday kinda Porter that's readily available in your microbrew shop. Now, go buy some and leave us alone for 6 weeks.


We now turn it over to Gordon Lightfoot who will opine about the porter's namesake.

Baby's First Words

We here at Dumbarton's Beer span the globe for cutting edge news stories. Today we bring you a report from the widely respected Thaindian News, whose recent coverage of the Tiger Woods debacle and the death of Kannada Superstar, Vishnuvardhan (freakin' Kannadians) should be worthy of the Thai equivalent to the Peabody.

According to our friends at the Thaindian News, beer is one of the first words uttered by infants when they learn to speak. Sure, any kid can stumble out a "momma" or "daddy" but how many are out there asking for a beer? Other words commonly first spoken by kids: cat and Hoover. No word on whether the reference is to the vacuum cleaner or the dam.


RIP Vishnuvardhan.