Feb 28, 2009 9:11 pm US/Mountain
Microbrewery Beats Recession by Defying Critics
Written by Paul Day
Reporting
Paul Day
LYONS, Colo. (CBS4) ―
As some drown their sorrows in suds during these economic hard times, a Boulder County microbrewery is toasting its' business success. The company's secret? Doing what it was advised not to do.
"People said it was sacrilegious to put a really good, premium beer in a can." said Marty Jones, the idea man for Oskar Blues Brewery.
But 6 years ago, Oskar started hand-canning its beer. The company has experienced major growth every year since.
"It was more a joke, probably more harebrained than anything else, but the consumer bought on," said Dale Katechis, founder of Oskar Blues. His first name is on the can of the company's most popular brand, Dale's Pale Ale.
Oskar Blues started in the late 1990s with a pub in Lyons at 303 Main Street. Last April, the company opened a much larger brewery at 1800 Pike Road in Longmont. It features an automated canning operation. The bigger facility increased beer production 25-fold to 19,500 barrels. A barrel of beer is equivalent to 31 gallons. Last year Oskar Blues experienced a 64 percent increase in sales in spite of the tanking economy.
"When times get tough, a really good beer provides a great escape," asserted Jones.
Coming soon Oskar Blues will open another pub -- in Longmont.
All this has been accomplished at a time when the ingredients of beer have grown more expensive. The price of a six pack of Dale's increased by $1. Even so, demand for the hoppy, assertive pale ale remains strong.
"It just has a really good body, it's very nice," said one beer drinker during the noon hour at the company's pub in Lyons. His drinking buddy added, "The quality just brings you back."
But it's putting the beer in a can that's made this microbrewery different from all the rest.
The prevailing wisdom was glass was the best and proper way to sell craft beers.
"That's true, but it's a myth," said Jones.
Jones explained the modern aluminum can and lid are coated with a water based coating. That prevents beer and metal from ever coming in contact with each other.
"It's a good thing for beer," maintained the idea man.
Additionally, cans are the best way to protect beer from light and oxygen according to Jones. Aluminum is also more convenient and better for the environment. The lightweight nature of the container, compared to glass, allows Oskar Blues to claim a 35 percent reduction in the carbon footprint during beer deliveries.
Becoming one of the country's fastest growing craft brewers has meant more jobs for the local community. The company added a dozen workers to its payroll this past year.
Between the pub and brewery, Oskar now employs 100 people. One of the newest arrivals is Jeff Nickel. He gave up a comfortable position at a major brewer to become Oskar's new production manager.
"I left a job at Coors in this recession because I saw growth potential." Nickel said.
Nickel likes the opportunity to be closer to the craft of making beer instead of the distraction of administrative work.
"What it really came down to was the chance to take a chance," he added.
Besides Dale's Pale Ale, the company also makes Old Chub Scottish Ale, Gordon and Ten Fidy Imperial Stout.
Publicity material distributed by Oskar Blues is laced with humor over the company's shift to cans.
"Can is no longer a dirty word for craft beer lovers thanks to us," Jones wrote. "Conventional wisdom, that's our thing."
The company is laughing all the way to the bank and the competition is taking notice.
Following Oskar Blues' lead, more than 30 other microbrewers have started canning their beer, according to Jones.
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