THE BREWSPAPER / BIGGER FISH HELP SMALLER FISH

Editor’s note: While mega beer is intent on crushing smaller competitors, craft beer makers large and small work to help each other survive—here is an example of the latter:

GUEST BLOG / By Westcoastersd.com--With 28 years under their belt, the folks at Karl Strauss Brewing Company have done a great deal: opening San Diego proper’s first post-Prohibition Era brewery, building the county’s largest network of brewpubs, contract brewing out-of-state and later bringing fermentation operations back to America’s Finest City, building venues in Orange County and Los Angeles. They could have rested on their laurels or become stagnant at any point, but founders Chris Cramer and Matt Rattner continue to look for ways to innovate and identify new revenue streams. The latest example of that is Karl Strauss’ recent establishment of its own distribution arm.

The company has been laying the framework for a distributorship for several years, but recently launched delivery of beers from its first two distributed brands, new Oceanside-based business Black Plague Brewing Company and Grantville’s four-year-old Benchmark Brewing Company. The latter’s Orange County launch took place last week, though Karl Strauss had been in talks with Benchmark for well over a year.

“We’re expanding on our on-premise, self-distribution network in San Diego and Orange County to now include a select group of local, independent breweries,” says Mark Weslar, Karl Strauss’ vice president of marketing. “Delivering our own beers on-premise has helped us develop an expertise selling to and servicing local bars and restaurants. We look forward to helping some brewery friends build their business.”

The first San Diego County brewery to go from brewing to manufacturing and distributing not only its own beers but those of fellow local brands was Stone Brewing. Founders Greg Koch and Steve Wagner often cite that as a key moment in the company’s history, and a business move that kept Stone from going out of business. After having many doors slammed in their face by distributors unwilling to take a chance on their new, small operation, they decided to do it themselves. In opening Stone Distributing Co. in the late-nineties, they brought aboard brands such as AleSmith Brewing and Coronado Brewing, later adding brands from across the country as well as numerous international brewing companies. Today, that entity is responsible for distribution of 44 brands—that like Karl Strauss’ portfolio are all independent—throughout Southern California.

Karl Strauss has no immediate plans to bring on additional brands, but plans to be selective when they do, focusing on local and independent interests representing a partnership that would make sense for all parties involved. Says Weslar, “It’s an exciting new venture, but it’s also business as usual here at Karl Strauss with all of us maintaining our focus on making, selling and distributing great beer.”

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