When Von Bugle met New Belgium...

When Von Bugle Brewing was launched several months back,
we kinda all went, "Okay, that's it? Seriously?" I mean, do not
get me wrong. This is a very nice Munich (Amber) Lager but
when Steam Whistle, an Ontario institution, is starting up a
second brewery, we expected... more? Like a lot more. Well,
there is more. We just don't know yet how much more. Hmm.

This is another one of those Big Beer deals I was told over two months ago... but have politely sat on. *Sigh*

Anyway, on Tuesday, it was officially announced that Steam Whistle, through their Etobicoke holding, Von Bugle Brewing, was contract brewing New Belgium Brewing's Fat Tire Amber Ale.

Who told me? The same person who told about Von Bugle Brewing more than two months before the Etobicoke brewery was announced (though staffers had hinted to me something big was cooking.) No idea who this person is. Just PMs through Twitter. Funky but non-specific and vague Twitter handle. You know, like no real name, no nothing. Could be a man; could be a woman; could be a Martian... I have no idea. But one thing is clear. He or she knows inside stuff at Steam Whistle. So whoever this is, well, they're batting two-for-two.

And for the record, No Name Attached has never sworn me to secrecy. But whenever I seek clarification at the brewery level, I'm usually told it's still "hush hush." (But not always.)

Why does New Belgium have an old-school bicycle on
their Fat Tire Amber Ale? Because that's what bikes
looked like in 1991. Yeah, kidding, try, oh, 1955. Chain
guards? Like anyone of us have ever seen those before. 

I get why. It's their secret story to reveal, not mine. But this No Name Attached person, who is following practically no one and has few followers (meaning it is likely a better-known Twitter person with this intentionally-tiny second account for backroom info), well, I don't know if they're connected to Steam Whistle-Von Bugle or just have a really keen ear to the ground? That it's a sales rep I've dealt with is a possibility or, at least, my best guess.

Okay, anyway, but it's out there so let's deal with that. So let's look at New Belgium Brewing. These guys are not newbies. Established in Fort Collins, Colorado, back in 1991, they are considered among the pioneers of the American Craft Beer Movement. Their Fat Tire Amber Ale, while maybe considered a little less buzz-worthy these days by craft drinkers, was some pretty exciting shit back in the nothing-but-macro days. As well, it's still one of the bigger selling American craft beers out there (likely Top-Five for that style) so if it works, leave it alone, right?

But the brewery itself is notable for a few reasons.

Along the left side of New Belgium Brewing in Fort Collins are a huge
amount of bike stands for customers. They're also in he foreground here
that I've cropped out because you know what a bike looks like. It's got
two wheels, a seat that's usually uncomfortable, a chain. Apparently, it's
part of a healthy lifestyle but I only know what I read about that stuff.

Number one, it's independent. In fact, it's employee-owned. At Year One of Employment, each employee gets their stake in the place. That is not a small deal. It's actually pretty damn huge. With craft brewery buy-outs happening more and more in the US, it's nice to see a brewery that quite literally can't be bought out by a macro.

And it's even nicer to see Steam Whistle and by extension, Von Bugle associated with New Belgian. Why? The three original Steam Whistle founders, Greg Taylor, Cam Heaps and Greg Cromwell, are no longer involved with the brewery. Founded in 1999, Cromwell left just a couple of years later to join his wife in Australia and create a brewery there. Taylor retired in 2017 from the day-to-day operations.

Is this green worth gold? It may well be soon. And
some believe that New Belgian's recent alliance
with Steam Whistle/Von Bugle may be tied to the
wacky tabacky and its legality here in Canada.

However, long not after Taylor stepped away, he became president of Nuuvera, a humongous cannabis company that spans the globe. (Okay, now hold that thought for just a second!)

Heaps is the son of Dan Heaps, the former owner of the Upper Canada Brewing company, eventually bought out and shut down by Sleeman's Brewing out of Guelph (which is, of course, now owned by Japanese mega-giant, Sapporo.) After that, Cromwell, Taylor and younger Heaps, then Upper Canada employees, struck out to found Steam Whistle, makers of Canada's best and best-known Czech-style craft pilsner. Canadian craft beer history, one thing really well, blah, blah, blah.

So I was happy to hear about the new connection between New Belgian, a fiercely-independent brewery and Steam Whistle-Von Bugle simply because a board of directors now runs Steam Whistle. The same fierce loyalty to the Steam Whistle's original owners' dream of remaining independent forever might be altered somewhat if run by another group. Which it now is.

Jordan St John, left, shown with with Robert Arsenault, aka
Drunk Polkaroo at the 2018 Ontario Brewing Awards and
Golden Tap Awards in September. Jordan has his own theories
on the Von Bugle-New Belgian association. Is he correct? Oh,
yeah, he probably is. Well, I'd be in serious shock if he wasn't.

So I guessing I'm hoping this new association with New Belgian might keep them inclined to stay the independent course. We'll see.

But is there even more to this? Esteemed (he might go as far as "famed") Toronto beer author Jordan St John believes there may be even more to this deal. For the record, Jordan has a shit-ton (that's a real measurement) of craft beer cred. He's co-authored a few books on Ontario craft beer, two with Robin LeBlanc, another with Alan Mcleod, was Sun Media's syndicated beer columnist for about five years and he really, really likes jam. (I don't know, man. Ask him.)

So he writes about beer. I write about beer. What's the difference between us? Allow me to explain. Okay, you see that Third Year University Advanced Calculus class? That's him teaching it. Go a little lower for me. No, not freshman, that's too high. Lower. No, that's high school graduation. Go lower. Okay, you see that kid sitting in the back corner of  Grade 9 High School Remedial Math class? The one that looks as high as shit? That's me.

It is impossible for me to think of Steam
Whistle without also thinking of our
driver Vince's bull terrier named Paul
From Shipping. Beautiful dog. Love it.

Okay, now that I've established a clear level of difference in our respective credentials, allow me to continue. About three weeks ago, Jordan went on a very illuminating Twittter roll. He wondered aloud if "there are any Toronto breweries with a hastily-introduced flagship brand..." Full stop. That would be Von Bugle. He then continued to wonder if that brewery "just happen to have an outsized, retrofitted in a suburb." Full stop. Von Bugle's in Etobicoke, right around the corner from Ken Woods' Black Oak Brewing. (There's no connection - just giving you a sense of location.)

He went on to further suggest "you'd get to brew interesting things and test marketing for a period in the future where more states were legal and marijuana was no longer a Schedule 1 drug in the US. Heck, you'd have a supply ready to go." Full stop. Marijuana is legal in 10 of the USA's 50 states. So 20% of the states in the country. Marijuana is now legal here in 10 Provinces and two territories, meaning, *looks at map* huh, the whole country. How bout dat?

He also noted that an American brewery could be "in a position where you had already diversified to the east coast of the United States and you had no more market share to gaining from traditional craft brewing." Full stop. New Belgium opened a second brewery in Asheville, North Carolina back in 2014. Marijuana is very much illegal there.

This is New Belgium's Asheville, North Carolina brewery that
opened in 2014. Beer author Jordan St John is wondering if
the company has gone as far as it can go in the craft brewing
genre and is looking to cash in on the legality of marijuana up
here in Canada? As theories go, this might not be far-fetched.

Okay, continuing on, he wondered that if you "were a large craft brewery from the USA from a state where marijuana was legal..." (it is in Colorado) "... and you had interstate regulations temporarily limiting your audience, it might make sense to purchase an extant undervalued property and sell your marijuana to a whole country."

Now, this last thought hinges on a couple of key points. One, Jordan is surmising (whimsically or not) that perhaps New Belgium has entered a deal with Von Bugle to brew their biggest beer with an eye to scooping up the entire Etobicoke facility at some point in the future. If the sale were allowed by the regulatory powers-that-be up here (and let's face it, hundreds of American companies have Canadian investments so probably), they would have an established base of operation for possible marijuana distribution in a country where that exact thing is now permitted.

But would they be interested in a country like Canada whose total population is a ninth the size of the US? Absolutely. Why not?

Is this the next beer that may be
available to us from the folks at
Von Bugle, now is association with
New Belgium Brewing? Well, it
sounds like that's the talk around
the Etobicoke brewery. Liking this.

Market share is market share and international holdings are always good from a business vantage point. Canada may seem small next to our neighbours below us but in terms of population, we're equal to Illinois plus Michigan plus Washington plus Colorado with Maine thrown in for good measure. To an American business, that ain't a small base of consumers.

What can I tell you? Canada, with its relaxed marijuana regulations, has suddenly become the sexy siren at the school dances. The Ugly Duckling became a Beautiful Swan. And granted, dozens of our brewers are now looking to add marijuana's active ingredient, THC, to beers up here. Dozens and dozens. Personally, I say, hey, go nuts. I don't really partake anymore - or haven't in a good while - but the simple fact is, at my age, if I stand up quickly, I can get exactly the same head rush. But as far as I'm concerned, it's 10,000 times safer than alcohol. So have at it.

So Jordan may well be ahead of the curve on this one so there's probably nothing I can add from a business perspective. But I do have a little nugget from a craft beer perspective. Talking to my Steam Whistle driver, Vince, about the New Belgium deal, I asked if we could expect more of their products once Fat Tire was established. Yeah, he told me, there was talk about "Voodoo something." Wait, I asked, do you mean Voodoo Ranger IPA?  Yeah, he said, that's the one. Okay, much like Jordan's musings, that's a wait-and-see. But Voodoo Ranger IPA would make a lot of hop-heads up here pretty damn happy. We'll see. But Scooby Doo Gang, that's it, that's all and I am outta here. Until next time, I remain...