Michigan Brewers Guild Seeks To Promote Local Beers
Organization will champion the cause of craftbrewed beer
April, 1998Michigan's brewing industry has recently united to form the Michigan Brewers Guild. The Guild was founded by unanimous vote when representatives from thirty different Michigan brewing operations met last December. At that time, they represented 65 percent of the operating brewing licenses in the state. It must be pointed out that every open brewing facility was contacted and invited to participate.
The idea was simple enough. Get all Michigan microbreweries and brewpubs together to form an organization that would champion the cause of craftbrewed beer, the newest segment of an otherwise mature industry. Everyone in the industry agreed it was a great idea, that indeed it needed to be done. But with the majority of the brewing businesses virtually so young, no one seemed to have time for it. Perhaps it could not exist. At least under the auspices of any previous attempt to band together. For while micros and brewpubs both center their businesses around brewing beer, they do not seem to agree on what is best for the industry. Not only are there opposing sides, there appears to be various factions.
In our monthly travels researching all the different brewing facilities for Michigan Beer Guide (MBG) we are privileged to meet with every owner and/or brewer in Michigan and discuss their many points of view, problems, hopes and desires. Interestingly, many of their concerns are identical, yet because they differ on a few key issues, mostly issues which require legislative changes to Michigan law, they undermine each others efforts.
Some brewpubs want there to be only one "Craft Brewers" license in Michigan. (Currently there are three different license options to "manufacture" beer in Michigan). Others want to retain the difference between licenses. A few micros with restaurant facilities want to be able to offer wine and guest beers (currently prohibited). A few brewpubs want to be able to distribute (also prohibited). Smaller micros want to self-distribute, at least initially (prohibited). And everybody wants a festival where brewpubs can participate (this too is prohibited).
Distributors, having witnessed major changes to the industry in the last few years, fear a weakening of the three tier system. Fortunately for them, they have the Michigan Beer & Wine Wholesalers Association which, while members are competitors, serves to unify their tier and works to preserve their overall interests. Unfortunately, their efforts have historically opposed those of the suppliers (brewers).
It became clear to us that the healthy future of the craft beer industry in Michigan would require a unified voice. We felt brewers, who to date were only associating with a few of their peers, needed to hear the broader perspective we were hearing. The problem was how to unify such diverse desires. This lead to an editorial in MBG Issue Number 8, where I posed the question of whether or not most, if not all Michigan Brewers could agree on at least one thing: To sell more Michigan brewed beer. The response from that editorial was overwhelming.
It must be pointed out that the successful creation of such an association cannot be accomplished through the effort of one or two people, but the collective efforts of many. However, my wife Mary and I were in the unique position (as publishers of Michigan Beer Guide) to focus all the ideas and energy toward a single direction.
Based on input we received, we searched for and found "neutral territory" where all interested parties could come together and not feel disadvantaged in another's home base. The site selected was Hamilton Street Pub in Saginaw. The pub was large enough to accommodate the expected crowd of 60, small enough to promote conversation, and oddly enough, though very appropriate, did not feature any Michigan brewed beer. It was, for all intents and purposes, a centrally located DMZ.
That first meeting was October 22, 1997. To keep the dialog from becoming diluted, only operational brewing businesses were invited; no distributors, no retailers, no consumers. In attendance were 49 people representing 31 Michigan brewing establishments (4 brewers, 12 micros & 15 brewpubs). I think most attended out of curiosity and perhaps an instinct for self preservation. But there they were, all in one room, talking to each other over lunch and tasting each others beers.
A general discussion was facilitated by yours truly to address among other things, the following questions; What can be done to increase Michigan craft brewed market share? Where will this market share come from? And, what kind of marketing can be done to accomplish this growth? Then the discussion switched to the formation of an organization to accomplish agreed upon goals.
It was unanimously agreed that an association would be formed and to start it up, everyone would gather again and be prepared to put in seed money to get the organization off the ground. It was also agreed that subsequent meetings would be held around the state in various member facilities. (This fact alone was a big step from requiring meetings in locations the likes of Zurich.) It was suggested the organization be called the Michigan Brewers Guild. Dues would be settled and/or amended at a subsequent date. The organization would exist to promote the sale of Michigan brewed beer and to foster the education of the Michigan beer consumer and the tourist visiting Michigan. The organization would refrain from legislative activity, at least in the near term. As the first order of business the organization would promote a non-competitive Michigan Brewers Guild Festival.
Furthermore it would be the objective of the next meeting to get the organization started by electing board members, who will work together with legal council to formulate and create the documentation required to form the organization.
Again, all operational brewing facilities were invited to attend the second meeting. This time it was hosted by Bobby Mason at Michigan Brewing Company in Webberville. I again moderated the event.
In attendance were 57 people, representing 13 micros, 14 brewpubs and 3 brewers for a total of 30 brewing licenses. After calling the meeting to order and reading the minutes of the last meeting, I reviewed the results of a survey we conducted at the first meeting. The survey was answered by 22 attendees and was summarized as follows.
The only thing the majority of Michigan brewers believe to be extremely important is the need to sell more of their own beer.
Over one third agree on two things being very important; that they want to see Michigan's market share of locally produced beer increased and they recognize the need to unify to do so.
Just under one third agree on several things as being very important; self distribution; changes in the three tier system more favorable to the supplier; that there is a need for a Michigan only brewers festival; and that brewpubs should be allowed to participate in such a festival.
Many also agree that the way things are currently is not totally satisfactory and that the selling of wine, spirits and guest beers is not a primary concern. Especially the sale of hard spirits, which virtually everyone agrees to be least important.
The most controversial point is to see one craft brewers license in Michigan. This is the most evenly balanced desire of Michigan brewers, with just over one third neutral and just under one third either most favorable or most opposed.
After further discussion which included a review of corporate structure by Attorney James Partridge, representatives from all thirty licensed facilities agreed to form the Michigan Brewers Guild as a not-for-profit member corporation.
Every member agreed to do their part to promote the organization and solicit other brewers to join. A mission statement was suggested and accepted to read as follows: "The Michigan Brewers Guild exists to unify the Michigan Brewing Community; to increase sales of Michigan brewed beer through promotion, marketing, public awareness and consumer education; and to monitor and ensure a healthy beer industry in Michigan."
It was agreed to begin with a seven member board, to consist of three microbrewers, three brewpubs, and one brewer. Nominations for the board were solicited and an election held by silent ballot. The founding members elected for the sole seat of Brewer; John Linardos, Motor City Brewing Works. For the three seats of microbrewer; Larry Bell, Kalamazoo B.C., Scott Henderson, Atwater Block Brewery, and Tim Suprise, Arcadia B.C. For the three seats of brewpub; Drew Ciora, Royal Oak Brewery, Rene Greff, Arbor B.C., and Ron Jeffries, Shelde Corporation (parent company of several brewpubs). The board met at Arbor Brewing Company January 7th. This meeting accomplished several important steps.
They reviewed and agreed upon articles of incorporation and setup bylaws.
They chose officers as follows; Larry Bell, President; Drew Ciora, Vice President of Public Relations and Promotions; Ron Jeffries, Vice President of Brewers; John Linardos, Vice President of Festival; Tim Suprise, Vice President of Membership, Scott Henderson, Treasurer; and Rene Greff, Secretary. Rex Halfpenny was appointed Executive Director.
Dues were determined for three levels of membership; $250.00 for Voting Member (one per brewing license); $250.00 for Allied Trade Member; and $50.00 for Michigan Craftbeer Enthusiasts. (Membership benefits are still being solidified.)
Voting Member eligibility is defined as any licensed facility that incurred taxable removables from their Michigan license within the last 90 days.
The board will make every effort to put together a Michigan Brewers Guild Festival by June 1998.
In summary, it is the collective desire of Guild members to increase Michigan's market share of the craft beer segment to double digits. To do this, members have united to pool their resources in a joint effort to promote the sales and enjoyment of Michigan brewed beer. As a result of this association, expected benefits include: An open dialog between members of the brewing community; bonding of Michigan brewers to promote and ensure a healthy brewing industry in Michigan; to speak with a unified voice to other members of the three tier system and before the Michigan legislature.
Consumers can look forward to some very interesting promotions. Some examples discussed include a color brochure listing and describing member brewing facilities and made widely available at no charge, point of sale materials for bars, restaurants and retailers. And most exciting, the Michigan Brewers Guild Festival. Questions, comments, donations, and membership sign-up requests may be sent to
Rex Halfpenny,
Executive Director,
Michigan Brewers Guild,
P.O. Box 648,
Leonard, MI 48367.
