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\nLeinie\u00e2\u20ac\u2122s charts national craft beer rollout<\/strong>
\nby Rich Rovito<\/em><\/p>\n
The Jacob Leinenkugel Brewing Co. is nearing completion of a national rollout of some of its craft beer brands while preparing to launch a new beer this fall.<\/p>\n
The Chippewa Falls-based beer brewer, which began a phased national rollout of some of its brands two years ago, is completing the rollout in the Northwest and West.<\/p>\n
\u00e2\u20ac\u0153That\u00e2\u20ac\u2122s your more prodigious craft beer areas \u00e2\u20ac\u201d California, Oregon and Seattle,\u00e2\u20ac\u009d said Jake Leinenkugel, president of the 141-year-old beer brewer, in an interview at his office in the Leinie Lodge, a museum and tour center next to the Chippewa Falls brewery.<\/p>\n
With planned distribution of some brands in Hawaii later this year, it will leave Alaska as the only state without Leinenkugel beer.<\/p>\n
The rollout began as an effort to capture additional market share for Milwaukee-based Miller Brewing Co., which served as Leinenkugel\u00e2\u20ac\u2122s parent company for 20 years. The rollout is now expected to benefit MillerCoors LLC as the craft beer segment continues to grow, although not at the astronomical levels of the past few years, Leinenkugel said.<\/p>\n
MillerCoors is the joint venture involving Miller and Coors Brewing Co., Golden, Colo., which launched in July.<\/p>\n
Leinenkugel\u00e2\u20ac\u2122s beers previously had been available only in the Upper Midwest until the launch of the national expansion. Leinenkugel entered each new market with its Sunset Wheat brand, followed by Honey Weiss, Berry Weiss and then its seasonal craft brews led by Summer Shandy.<\/p>\n
\u00e2\u20ac\u0153The last two years we\u00e2\u20ac\u2122ve gotten our feet wet on what it means to be national, and that\u00e2\u20ac\u2122s pretty big for guys that always thought local and regional,\u00e2\u20ac\u009d Leinenkugel said.<\/p>\n
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Leinenkugel produces 12 brands, including Fireside Nut Brown Ale, a seasonal beer that will be available in November and December.<\/p>\n
Projects in the works<\/strong><\/p>\n Leinenkugel plans to \u00e2\u20ac\u0153hibernate\u00e2\u20ac\u009d its Big Butt brew and replace it with a beer created from an original 1888 Leinenkugel bock recipe that will be available beginning in January 2009.<\/p>\n \u00e2\u20ac\u0153We are also working on a very big project right now for a very intriguing new style-beer for 2009 and that\u00e2\u20ac\u2122s all I can say at this point,\u00e2\u20ac\u009d Leinenkugel said.<\/p>\n Plans to go national with Leinenkugel developed after Miller\u00e2\u20ac\u2122s top executives approached the brewer to see if it could develop a beer that could capitalize on the immense popularity of Blue Moon, a Belgian-style craft beer brewed, ironically, by Coors. It was at that time that Leinenkugel developed Sunset Wheat.<\/p>\n \u00e2\u20ac\u0153It\u00e2\u20ac\u2122s allowed us to go to the Miller distributor network on a national basis because they\u00e2\u20ac\u2122d been pining for something that is authentic, original and real craft to put into its pipeline,\u00e2\u20ac\u009d Leinenkugel said.<\/p>\n Under Miller\u00e2\u20ac\u2122s ownership, Leinenkugel Brewing had a great deal of autonomy, something that the MillerCoors leadership has vowed will continue, he said.<\/p>\n \u00e2\u20ac\u0153They give us the autonomy and flexibility to run our business smartly the way the Leinenkugels see that it should be run,\u00e2\u20ac\u009d he said.<\/p>\n In a meeting with The Business Journal\u00e2\u20ac\u2122s editorial board earlier this year, Tom Long, MillerCoors president and former chief executive officer of Miller Brewing Co., said he believed a national rollout of Leinenkugel would succeed.<\/p>\n \u00e2\u20ac\u0153It looked like we could turn this into something more powerful and let people outside of Wisconsin and Leinie\u00e2\u20ac\u2122s core states know about this great beer,\u00e2\u20ac\u009d Long said. \u00e2\u20ac\u0153And with personalities as powerful as Jake, Dick and John Leinenkugel, it seemed to me like it was Ben & Jerry\u00e2\u20ac\u2122s (ice cream) all over again. All people had to do was get exposed to those characters and try the beers and they would like it and that\u00e2\u20ac\u2122s really come true.\u00e2\u20ac\u009d<\/p>\n Long admitted that Leinenkugel Brewing is faced with stiff competition in the craft beer market.<\/p>\n \u00e2\u20ac\u0153That\u00e2\u20ac\u2122s a real competitive area and there are a lot of great beers in that arena, but the Leinenkugel brewery can compete with any craft brewery in America,\u00e2\u20ac\u009d he said.<\/p>\n Leinenkugel also credited his father, who is terminally ill with a brain tumor, for giving him a deep appreciation of beer brewing. Bill Leinenkugel served as company president from 1971 until he retired in 1987.<\/p>\n \u00e2\u20ac\u0153Beer is fun. Beer is good. He\u00e2\u20ac\u2122d tell us that every day,\u00e2\u20ac\u009d Leinenkugel said of his dad. \u00e2\u20ac\u0153He said you won\u00e2\u20ac\u2122t get paid a lot, but at the end of the day you can walk out to the tap handle and pour yourself a product that has your name on it.\u00e2\u20ac\u009d<\/p>\n Under Miller\u00e2\u20ac\u2122s ownership, Jake Leinenkugel reported directly to Long. Since the launch of the joint venture, he has been reporting to Leo Kiely, CEO of MillerCoors.<\/p>\n \u00e2\u20ac\u0153This allows me to basically educate Leo as to the strength and value of Leinenkugel\u00e2\u20ac\u2122s within the MillerCoors portfolio,\u00e2\u20ac\u009d Leinenkugel said. \u00e2\u20ac\u0153This is a fabulous opportunity to keep Leinenkugel\u00e2\u20ac\u2122s top of mind with the entire MillerCoors network.\u00e2\u20ac\u009d<\/p>\n Leinenkugel Brewing has about 115 employees at its Chippewa Falls brewery and 10 at its North 10th Street brewery near downtown Milwaukee.<\/p>\n The Milwaukee brewery primarily produces Honey Weiss to supplement production at the Chippewa Falls facility.<\/p>\n \u00e2\u20ac\u0153There\u00e2\u20ac\u2122s still room for bigger opportunities for the 10th street brewery,\u00e2\u20ac\u009d Leinenkugel said. \u00e2\u20ac\u0153Who knows where the Coors and Blue Moon impact may help fill some things in there. MillerCoors also is interested in piloting some different kinds of beer there.\u00e2\u20ac\u009d<\/p>\n The Leinenkugel breweries have been operating at close to capacity, which has required the MillerCoors brewery on Milwaukee\u00e2\u20ac\u2122s west side to handle some production of Sunset Wheat.<\/p>\n Craft segment slowing<\/strong><\/p>\n Craft brewing has experienced double-digit annual growth over the past five years, but growth in the segment slowed to about 6.5 percent in the first half of 2008, with restaurant and bar sales experiencing the biggest slowdown because of the soft economy, he said.<\/p>\n \u00e2\u20ac\u0153I look at that as still being very healthy,\u00e2\u20ac\u009d he said. \u00e2\u20ac\u0153Leinenkugel\u00e2\u20ac\u2122s will be in or above that figure for the year.\u00e2\u20ac\u009d<\/p>\n Although the sale of the various Leinenkugel brews make up less than 1 percent of MillerCoors overall sales, Leinenkugel said he is convinced the brewer adds value to the joint venture.<\/p>\n \u00e2\u20ac\u0153Each year we should continue to grow from a very small base, but add on additional muscle to MillerCoors in terms of having a very viable, neat, eclectic collection of fabulous, adventurous beers,\u00e2\u20ac\u009d Leinenkugel said. \u00e2\u20ac\u0153It gives credibility to MillerCoors.\u00e2\u20ac\u009d<\/p>\n JACOB LEINENKUGEL BREWING CO.<\/strong>
\nFounded:<\/strong> 1867
\nBased: <\/strong>Chippewa Falls
\nParent company:<\/strong> MillerCoors LLC
\nPresident:<\/strong> Jake Leinenkugel
\nEmployees:<\/strong> About 115 full-time and seasonal in Chippewa Falls; 10 at satellite brewery in Milwaukee
\nAnnual revenue:<\/strong> Not disclosed
\nBeer brands:<\/strong> Sunset Wheat, Honey Weiss, Berry Weiss, Red, Creamy Dark, Original, Light and Special Ale (year-round); Summer Shandy, Oktoberfest, Fireside Nut Brown and Bock (seasonal)<\/p>\n