If money isn't enough to keep a brewery open, then what? Other news too

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Beer archeology should be an official thing. Whether it involves sifting through ancient Sumerian rubble in Iraq or spelunking beer caves in Iowa, beer archeology is a real thing. Few human endeavors have spanned so many ages. To study beer is to study history, civilization, technology, and humanity. But that observation relates to just one of the stories we cover this week, so let’s get hopping.

It's not about the money, it's about the money

Last week, Colorado-based Oskar Blues Brewery suddenly closed its brewery and taproom in Austin, Texas. The company has yet to release an official statement. Since 2016, the company operated a 50,000-square-foot facility in Austin that included a brewery as well as a 7,000-square-foot taproom and entertainment venue. Employees have been laid off and all references to the Austin location have been removed from Oskar Blues' website and social media platforms.

In addition to its brewery and pub in Colorado, and its now-closed location in Austin, Oskar Blues Brewery operates a brewpub in Brevard, North Carolina. No word about the future of that location. In January 2023 Monster Beverage Corp. purchased Oskar Blues and the entire multi-brewery CANarchy Craft Brewery Collective (Oskar Blues Brewery, Wasatch Brewery, Cigar City Brewing, Perrin Brewing, and others). Monster paid $330 million for the whole kit and caboodle in an all-cash deal.

Monster Beverage certainly had the financial wherewithal to support the Oskar Blues location in Austin. Apparently, it lacked the will. Money is not in short supply. Yesterday, Monster Beverage announced a new stock by-back program for the repurchase of up to $500 million of the company’s outstanding common stock. That is good news for Monster's largest shareholders, but it means nothing to the workers at Oskar Blues in Austin who just lost their jobs. So, yeah, it’s not about the money, it’s about the money.

Finestkind Brewing adds to its portfolio

Finestkind Brewing, the parent company of New Hampshire’s Smuttynose Brewing Co., recently acquired New York's Brooklyn-based Five Boroughs Brewing Co. The deal closed on October 23rd and was announced to employees this week. Financial details of the transaction were not disclosed. Five Boroughs produced an estimated 10,000 barrels of beer in 2022. Smuttynose produced an estimated 19,000 barrels of beer in 2022.

According to a press release, Five Boroughs’ production will be shifted to Smuttynose’s facility in New Hampshire, but Five Boroughs will keep its taproom in Brooklyn and use it as an innovation-focused hub for small-batch beers.

Runnymede Investments acquired Smuttynose via a foreclosure auction in 2018, forming Finestkind as an operating company for its beverage-alcohol investments. (FYI, the name Finestkind relates to Smuttynose’s flagship IPA.) Along with Smuttynose and now Five Boroughs, the Finestkind Brewing portfolio includes Island District Cocktails, which produces spirits-based RTD cocktails. Finestkind says it is also exploring expansion into non-alcoholic beverages.

Beer cave spelunking

Archeologists are studying a network of caves beneath Iowa City, Iowa: the beer caves. These caves were used by breweries over a century ago to brew and transport beer. It seems they served three breweries: Union, Great Western, and Old City. The Union Brewery building still stands today. That brewery was founded in 1856 by German immigrants. It’s one of the historic Iowa City breweries that was operated by what historians referred to as the “German Beer Mafia,” but that’s a story unto itself.

Over 150 years ago, before mechanical refrigeration changed the brewing industry, these caves were used for cold-fermenting and cold-storing beer. The archeologists are not exactly sure how extensive the caves are, or how deep they go, and things are rather precarious down there, so they are using ground-penetrating radar technology to examine the yet-unexplored labyrinth of caves. Read more about it here.

Say What?

Last week on The Taster Tray we discussed the impact of food on sales at brewery taprooms. We ran a poll asking a simple question: How does food impact your decision about which brewery taproom to visit? We offered four options.

• Always. It is very important. It is frequently a big part of my decision. (23%)

• Sometimes. It's important, but it doesn't always impact my decision. (62%)

• Rarely. It hardly ever impacts my decision. (13%)

• Never. Beer is all that matters. It's all about the beer. (2%)

We got a lot of good feedback in addition to the votes. One user's comments told a nice story. From debbie.towns... “When we first moved, we skipped one of the breweries close to us because we heard mixed reviews on its beer. But one of the food trucks there is a 4.9 on Yelp with rave reviews. So we originally went for the food truck and discovered the beer is much better than those initial reviews we heard. It’s now our go-to place. When picking among breweries to visit, food offerings often are a deciding factor.”

This week's Taster Tray was composed by Kendall Jones.