Jesse,
I’m on the patio with my laptop, sipping on the latest samples of our 2.5 year old single malt, and feeling incredibly proud of what we willed into existence.
Over the past few years, we’ve created a functioning spirits company together—and it was anything but easy to do. Yet despite so many people telling us “no” or saying the vision we were describing couldn’t be done, we always found a way to move forward. We’ve built a robust supply chain comprised of great people and partners, and can now boast a legion of loyal supporters. As the decade draws to a close, it’s really rewarding to see what our friendship continues to produce.
But to be honest, there’ve been many moments when I considered throwing in the towel. I’m sure the thought crossed your mind, too. That’s why I’m posting this message… because I really want you to check out the fascinating documentary I watched last night. I took ease in our troubles, as it made me realize that even the most successful and experienced companies face the same issues confronting us.
“The Beer Jesus from America” is a documentary (trailer HERE) available on Amazon Prime about the international beer culture and a San Diego-based brewing company known as “Stone”. It’s an exposé on the trials and tribulations of Stone Brewing’s Founder, Greg Koch, who went on to open a brewery in Berlin, Germany. The documentary follows Greg’s five year journey from finding a property, to obtaining the licenses, to managing construction, and to convincing the public of his mission—perhaps the hardest feat.
Knowing you, you’re already asking why it’d be difficult to convince Germans about the merits of beer. After all, Stone makes great beer, and it’s beloved by Americans. What’s the problem?
Well, you have to understand that while Germany is known for its beer culture and overall open-mindedness (to say nothing of their “anything goes” drug culture), Germans’ perceptions about the fundamentals of what beer actually is is very restricted. You see, Germany’s beer is governed under the 503-year-old Beer Purity Law, known as Reinheitsgebot. The law’s original intention was to protect people from poor quality or unsafe ingredients, so it limited brewers to using only four ingredients (water, malt, hops, yeast) to make “beer.” The law is still in effect today! So, if you want to make a “beer” using fruits, cacao, or even chili peppers, go ahead… but it won’t be considered beer. Instead, you’ll need to call it a “fruit alcohol beverage” or something like that.
As a brief aside, we could draw the same parallels to what the spirits industry is going through today. Like, did you know that there’s no such category in the TTB (Alcohol, Tobacco, Tax, Trade Bureau) as a single malt whiskey?! More about that issue and how I want to resolve that at a later date…
Stone’s entire mission is to make beer that they like and include creative flavor profiles that are anything but those found in Germany (think salt and lime lager or chipotle pepper porter).
The challenge of building a successful brewery, restaurant, and social setting—all in one—was going to be onerous and multifaceted.
Stone experiment with bold approaches to flavor, e.g. chipotle peppers.
Would people go to Stone’s remote location on the outskirts of Berlin?
Could they build the facility on budget, on time, and receive the proper licensing (from government officials who protect the German Beer Purity Law)?
Would the general public take a liking to Stone’s styles of beer with higher quality ingredients and bold flavors?
Could a beer culture that’s hundreds of years frozen in time be able to evolve…and for a company from America?
As you know, I lived in San Diego (the original home of Stone) from 2007-2012, right in the beginning of the exponential increase of craft breweries in the USA. This explosive growth occurred on a smaller scale nationwide, but was most prominent here. Throughout my time in San Diego, craft beer became very easy to find and the general public was very knowledgeable on the subject. Fast forward to today: one of the city’s main tourist draws (aside from the incredible scenery and weather) is craft beer, as evidence by its claim to being host to the country’s highest number of breweries (161!), to its 50 tasting rooms, to its growing arrival of “beer drinker comfort food”.
And, um, let’s just say that you don’t have to look too hard for confirmation. 15 years ago, you were much more likely to see that obnoxious fit surfer than the so-called “brewer’s body.”
Today, though, there’s a pretty equal mix. Sexy!
Within San Diego, Stone was always the gold standard for craft beer. Having started in 1996, a time when there were only 15 craft breweries in the county, it quickly became associated with high quality and flavorful beer. It’s branding was bold; the gargoyle printing stood out from the rest. Plus, the label descriptions were borderline obnoxious, and literally arrogant. Case in point: Arrogant Bastard Ale.
And, although the price of their beer was always higher than typical beer, people chose to drink it…. even if that meant drinking less overall. It was a change in the way people thought of beer, as they were willing to spend $10 on a six pack of Stone, versus the same on a 12 pack of “Big Beer” (Miller, Coors, Bud)… or what Stone refers to as “tasteless fizzy yellow beer.” I mean, it was obvious that you were buying something truly worth the price. I declare from firsthand experience: the quality was unparalleled.
Stone’s mission and branding to the public is always about being daring, outspoken, and of high quality. This certainly goes for their beer, but it also goes for their restaurants and tap rooms. Their Escondido Brewery and restaurant (known as the “World Bistro and Gardens”) is a property like none other for craft beer lovers. The massive facility is one for the visual senses, with tons of boulders, indoor/outdoor seating, and tropical gardens.
While working in San Diego, I would routinely convince my management to have team lunches at Stone, all in an effort to enjoy the over-the-top scenery (and sneak in a couple of Stone brews on the company dime, duh). Having been to several Stone locations, I know that this is what they do everywhere they open. The Napa location, for example, appears like it was always meant to be there, except that it’s a beer monolith… in a wine metropolis. But its picturesque setting, akin to famous Napa wineries, fits right in.
The bulk of the documentary covers the stresses of bringing the founder’s vision of the facility to the dreary outskirts of Berlin in a building that was all but a shell. Trying to bring Greg Koch’s vision to fruition was frustratingly close to impossible. German industriousness? Not that I saw. The laborers’ painstakingly slow pace of work delayed the project continuously. Part of the problem was their well-established “slow” mentality, but the other problem revolved around how to get the workers to be motivated by the project. The documentary suggests that because they didn’t believe in the mission of Stone brewing, they worked even slower.
Having worked on projects where the cost to turn back is greater than the added cost to move forward, I know how high tensions can run. Here, the German construction workers knew they had Stone over a barrel—so to speak—and therefore took their time, under-produced, and missed key deadlines. Can you blame them? Here there’s this successful American company making beer far from anything seen in Germany (technically not even considered beer in Germany) and it wants to build this novel facility to host what it believes will be the legions of Germans it intends to convert to its cause. And they were daring to offer seating other than a boring array of picnic tables? The contractors probably figured they should bilk the Stone crew out of as much funding as possible before the venue opened to inevitable failure.
““You’re either incompetent, or you’re lying.””
The problems posed by lackadaisical workers is further illustrated when Stone brings in an American project manager to whip the Germans into shape, revealing major cultural differences. In Europe, time apparently doesn’t equal money. And this only furthers the divide between Stone and the local workers. Frustrations come to a head when Greg finally states the obvious: “You’re either incompetent, or you’re lying.”
In the end, Stone finally opens the brewery and restaurant, adorned with massive boulders in place of the German beer hall tables. It’s a beautiful work of modern art, encompassing a fully operational brewery, meant to support the German and European market.
The film shows they are able to begin deliveries to local bars and show the enthusiasm of the local patrons. But there still are those (older) curmudgeons that just don’t get it. Thank goodness for a younger generation demanding higher quality and more flavorful beverages.
And yet… the Millennials and Gen Zers aren’t enough.
SPOILER ALERT: The film concludes with a note that the Stone project was unsuccessful. After months of mounting losses, “the Beer Jesus” decided to sell the facility to Brew Dog, a company from Scotland (and Ohio). Part of the deal was that Brew Dog had to continue to produce Stone beer for the European market.
It’s a sad end to the saga, but it’s one that offers lots of lessons. I was so inspired by the film that I reached out to Greg directly. And to my genuine shock, he was incredibly accessible.
Stone Co-Founder and Chairman, Greg Koch, and New Scotland Spirits Co-Founder, Patrick Carey – enjoying a pint of Stone Beer.
I was able to confirm with Greg that the troubles he experienced with the Berlin location were more extreme than that of his other enterprises in the USA and worldwide. Stone recently announced its second location in China (Beijing) opening in early 2020. From the sounds of it, it went off without a hitch.
The disparity in those experiences suggests that Germany, once revered as the beer king of the world, has become isolated and stagnant… allowing a country like China, that basically has had no beer culture, to openly embrace a bold company like Stone.
This leads me to suspect a paradox: that the more a geographical culture is keyed into a given aspect of life—whether it be coffee, food, or beer—the less open it is to new ideas. If you don’t believe it, try telling an Italian about Seattle Coffee, a New Yorker about Chicago pizza, or a German about American craft beer… and you will know exactly what I mean. Perhaps San Diego will be that way one day with beer? Only time will tell.
I’m rambling. What I’m trying to say, Jesse, is that if this film proves anything, it’s that perseverance always wins in the end when you have a quality product that doesn’t cut corners.
Our dedication to bringing to life high quality spirits derived from the fields of our hometown, using expensive new charred barrels, and aging for extended lengths of time in line with our country’s most solemn distilling traditions, will pay off. Sure, we could use cheap fillers in our spirits, we could source grains from outside of New York State, we could quickly age the spirit in small barrels, or we could buy someone else’s product from the depths of a grungy warehouse… but that wouldn’t be consistent with our mission. We refuse that route, because that would make us all too similar to those trying to make a quick buck, to muscle into an emerging market of copycats and poseurs.
To borrow a quote from hero: “Stay the course, steady as she goes.” Honoring the Town of New Scotland requires learning from its legacy, and recognizing that the best things in life are never rushed.
Here’s to those who enjoy quality over crap, authenticity over imposters. Here’s to the Town of New Scotland, the home we bring with us in each bottle of New Scotland Spirits. Here’s to the American spirit with a New Scottish soul.
Anyway, bud, signing off for now….
It’s been a great ride so far.
— Patrick