Thad Fisco is the owner and founder of Portland Kettle Works. He is a brewing industry expert, innovator, and entrepreneur. In addition he owns and operates The LABrewatory, PKW's brewery and taphouse in Portland Oregon, where PKW clients are trained in the use of their new brewing systems. Thad is also a public speaker on topics and panels within the global brewing community. Thad started PKW in October of 2011.
Portland Kettle Works is proud to introduce Zwickler, a new online store dedicated to providing replacement components for liquid processing facilities. Designed to serve the unique needs of the Beverage, Industrial Chemical, and Life Science industries, Zwickler is your go-to source for reliable parts that ensure your operations run smoothly.
ABOUT ZWICKLER:
Zwickler was founded with the mission to support liquid processing facilities with top-notch components and standardized equipment. Backed by the expertise of Portland Kettle Works, Zwickler aims to deliver excellence and reliability. Our vision is to be the premier supplier for all your liquid processing needs, offering a wide range of products that cater to various applications.
Zwickler is committed to serving three primary industries:
1. Beverage
Our store provides components for every step of the beverage production process, from start to finish. Whether you’re brewing beer, fermenting wine, crafting kombucha, or producing coffee, dairy, soda, distilled spirits, and other RTD products, Zwickler has the parts you need to maintain high standards of production.
2. Industrial/Chemical
We offer a comprehensive range of fittings and components tailored for chemical, paint, cosmetics, fertilizer, lubricant, adhesive, and custom mixing tank applications. Zwickler understands the specific requirements of these industries and ensures that our products meet stringent quality standards.
3. Life Science
Zwickler supports the life science sector with specialized components for various applications. From pharmaceuticals to biotechnology, our products are designed to uphold the highest levels of sanitary and operational excellence.
WHY CHOOSE ZWICKLER?
When you choose Zwickler, you’re choosing quality and convenience. All our products are sourced from reputable manufacturers and meet the highest industry standards. From sanitary fittings to complex processing systems, we have everything you need in one place. Additionally, our knowledgeable team is always ready to assist you with any questions or concerns, ensuring you find the right components for your operations.
Zwickler is excited to support your liquid processing needs with high-quality parts and service. Explore our range of products and see how we can help streamline your operations.
There Are Many Things To Consider When Buying New Equipment for Your Craft Brewery And Cost Is Just One.
Let’s be honest. Whether you’re a startup craft brewery looking to buy your first brewing tanks or an established craft brewer looking to expand, cost plays a large role in selecting your equipment provider. Chinese equipment may seem cost-effective at first glance – and that can be especially enticing to brewers with limited funds. However, in the craft brewing industry, the choice of equipment can significantly impact a business’s long-term success. Investing in Chinese-made equipment rather than domestically produced equipment could mean the downfall of your business. Here’s why.
When you buy Chinese brewing equipment, even uninstalled 75% of its resale value is lost the day after purchase. Masters of duplication, commoditizing, and creating cheap products to be sold at a low price, Chinese-made equipment is simply not of the same quality as that which is manufactured domestically. Uninstalled brewing equipment made in the United States can be resold at full value the day after purchase and retains more than 75% of its value for up to three years AFTER purchase. installation and use in production. While Chinese equipment may initially seem the most economical choice, that decision immediately costs your balance sheet 75% of asset value on day one, not to mention impacting the quality and taste of your craft brew and therefore the success of your business.
The quality of the materials used in craft brewing equipment is paramount to ensuring the production of the highest-quality craft beer. While Chinese brewing equipment has the appeal of initially being cost-effective, the quality of stainless steel used in that equipment can be questionable due to the lack of quality control and testing regulations. Domestic equipment is often manufactured using superior-quality stainless steel, which ensures durability, resistance to corrosion, and optimal hygiene standards. Choosing domestically manufactured tanks also helps brewing businesses maintain consistent product quality, avoid costly repairs or replacement, and enhance their reputation for excellence.
Sourcing equipment from China also means investing in manufacturers who often build their equipment with little regard for the environment or for humane labor conditions. Companies using American steel to craft their equipment use materials generated under strict environmental guidelines – as evidenced by the fact that Chinese stainless steel manufacturers have carbon emissions that are 2x or more higher than American stainless steel manufacturers when producing the same quantity of steel. Additionally, steelmakers in America spend 80% more per ton of steel to reduce the pollution levels to air and water than steelmakers in China. The low cost of Chinese brewery equipment isn’t just from the poor quality steel used to manufacture it, it’s also due to the lack of action to protect the environment. Similarly, China reportedly uses forced labor in the production of coal and stainless steel used in their tanks.
Ultimately, domestic brewing equipment offers craft brewers “peace of mind” and long-term value for their purchase. As a manufacturer of new craft brewing equipment and reseller of used brewing equipment for over 12 years, I can tell you from firsthand experience that your investment in US-made equipment will pay you back. And, in a world where you and your customer are attempting to make positive environmental and social choices, you can also be confident in the ethical standards upheld by domestic manufacturers. Breweries can reduce their carbon footprint and support domestic industries committed to sustainable manufacturing and fair labor practices.
Effective customer service is mandatory for the success of brewing equipment manufacturers and their customers. Buying domestically manufactured brewing equipment ensures prompt and reliable customer support to facilitate quick resolutions to any technical issues or questions that may arise. Some US-based manufacturers even offer “buy back” guarantees to lenders, making financing that much simpler. In contrast, language barriers, time zone differences, and limited infrastructure to support equipment post-sale from thousands of miles away can hinder effective and supportive communication with Chinese suppliers. Brewers deserve to work with equipment manufacturers who are there for the long haul, and who don’t just want to make a sale, but who want to be your partner in making you and your business flourish. Unfortunately, the low cost of Chinese brewing equipment can’t buy you that.
Choosing the right equipment can make or break your craft brewing business. While Chinese brewing tanks may initially seem like an attractive option, the advantages of domestic brewing equipment (and the shortcomings of Chinese manufactured products) far outweigh the short-term cost savings. What will at first seem to be an economic decision will likely result in lower quality beer, expensive repairs, and a frustrating customer service experience. By opting for domestic brewing equipment, breweries and business owners can maintain high-quality standards, ensure ethical manufacturing, and work together to achieve long-term success, prosperity and growth.
Portland Kettle Works was founded in 2011 to build the highest quality stainless steel brewing and beverage equipment applications. Since then we have built and installed hundreds of state-of-the-art craft breweries worldwide. Our craft brewers are among the best of the best and they have the gold, silver and bronze medals to prove it. If you’re serious about craft brewing as a business, contact us and we can help you, too. And if you’re located in Mexico or Latin America, click here to visit our Spanish language site.
PKW VinMaster Wine Fermenters are the culmination of our experience producing over 1,000 fermenters for the craft beer and wine industry since 2011.
Our fermenters have become the industry standard. They are being used to innovate recipes and deliver repeatable results for award-winning breweries and wineries, large and small, worldwide.
Built on PKW’s pedigree for performance, we have introduced the VinMaster Wine Fermenter. The VinMaster provides the same spirit of innovation and quality that our global clients have come to expect and rely upon in all our other products.
PKW VinMaster Wine Fermenters are available in 3 configurations:
Wine Fermenters, Closed-Top – Additional uses include wine storage, blending, and packaging
Wine Fermenters, Open-Top – Unlimited access to the cap
Wine Totes, Open-Top – Capacities from 2 to 6 ton with unlimited access to the cap
PKW’s CBD mixing tanks provide complete control over mixing, blending, volume, temperature, pH, carbonation, and finishing.
Portland Kettle Works is leveraging its position as the premier American manufacturer of stainless steel craft brewing equipment to become the premier American manufacturer of commercial CBD mixing tanks. We have leveraged our experience in process engineering and process management to provide tools that reduce your startup and expansion risks, and help to insure your success.
PKW’s CBD mixing tanks are designed and engineered with the operator in mind. We have thoroughly thought through:
Portland Kettle Works was founded in 2011 in Portland, Oregon USA. We build high-quality stainless steel beverage and brewing equipment. We have built and installed over 375 state-of-the-art craft breweries worldwide. As a result, our craft brewing clients are among the best of the best. They regularly win beer tasting competitions and they have the gold, silver and bronze medals to prove it. We’ve expanded into winemaking so, if you’re serious about winemaking, contact us so we can help you, too. And, if you’re located in Mexico or Latin America, click here to visit our Spanish language site.
Brewers Association Includes Acquired Craft Brands in 10K Brewery Goal
“Although BA-defined U.S. craft brewers combined to make up 13 percent of the beer sold last year, [Brewers Association Chief Economist Bart] Watson said, all “fuller-flavored beer” — including about 9 million barrels produced by acquired craft brands — amounted to about 17 percent of the beer market.”
Bart Watson Brewers Association Chief Economist at Meeting of the Malts 2019
This quote was published in Brewbound reporting on last week’s annual Meeting of the Malts in Hershey Pennsylvania, and the BA’s goal of having “10,000 breweries in operation in the U.S. within the next two years.” Read the full article here.
Portland Kettle Works was founded in 2011 in Portland, Oregon USA. We build high-quality stainless steel beverage and brewing equipment. We have built and installed over 375 state-of-the-art craft breweries worldwide. As a result, our craft brewing clients are among the best of the best. They regularly win beer tasting competitions and they have the gold, silver and bronze medals to prove it. We’ve expanded into winemaking so, if you’re serious about winemaking, contact us so we can help you, too. And, if you’re located in Mexico or Latin America, click here to visit our Spanish language site.
Support the Craft Brewery Industry with Your Participation
The University of Maine is conducting a great survey of small craft breweries. This information will prove informative to all brewery operators, and we will make sure to send the results to everyone in a future email and blog article.
Thanks,
Thad Fisco
Owner, Portland Kettle Works and LABrewatory
We are an international research team from the University of Maine and
Ecole Hôtelière de Lausanne in Switzerland conducting a research project on the
craft brewery industry.
The purpose of this study is to understand how the craft brewery industry can better strategize around innovation, sustainability, and economic growth, while at the same time maintaining their connection with the local community. Our goal is to generate a global benchmark report that we will share with all survey participants; we welcome anyone who is a brewer, owner, or heavily involved as an employee/associate of a craft brewery in any country. Your response is very important and will help us produce this report.
The survey only takes about 10 to 15 minutes to complete. Your responses are completely anonymous, and the data will only be shared in the aggregate. Any company information will be kept strictly confidential.
As a token of our appreciation, we are providing a $10 Amazon gift card to the first 50 respondents completing our survey. Many thanks!
In case you should have any questions or would like to know more about our project, please contact me, the principal investigator. Once again, we thank you in advance for participating in this important project.
Cheers!
Nic Erhardt – Principal Investigator
Associate Dean
Director, MBS Professional Development Center University of Maine Business School
niclas.erhardt@maine.edu
Portland Kettle Works was founded in 2011 in Portland, Oregon USA. We build high-quality stainless steel beverage and brewing equipment. We have built and installed over 300 state of the art craft breweries worldwide. As a result, our craft brewing clients are among the best of the best. They regularly win beer tasting competitions and they have the gold, silver and bronze medals to prove it. We’ve expanded into winemaking so, if you’re serious about winemaking, contact us so we can help you, too. And, if you’re located in Mexico or Latin America, click here to visit our Spanish language site.
“If we can get 1 million new craft beer drinkers to drink 1 pint a week, that’s 200,000 incremental barrels. 5 million new drinkers is 1 million bbls. For there to be enough new growth for everyone in this room to succeed, we’re going to have to widen our view and not think about the 13%, but the other 87% that’s out there to capture.”
Bart Watson Brewers Association’s Chief Economist 2019 CBC State of the Industry Address
Given the hammering that the guys from Crafting A Strategy (CAS) and I took over the last two weeks, this feels pretty damned good. The BA now recognizes that there are A LOT of people to win over to craft. That’s a major victory and a sea change from where things stood when we spoke with the BA execs in the bar I mentioned in my previous blog post.
Even better: what just happened is progress.
Now the hard work starts. We need to be realistic about what craft beer is, and what percent of the market is drinking it today. Then figure out how to work together, all of the stakeholders combined, in order to right the ship, end the negative rhetoric, and work for success. Define success as you see fit, but it’s not Facebook likes, as one critic has suggested. Facebook likes don’t pay payrolls or clear loan covenants.
We are willing to stake our reputations and take an incredible amount of heat to move this conversation forward.
Why is this so important?
Short answer:
The negative rhetoric is damaging this lovely business, and exposing us to challenges that should not exist
There is another set of very real, and largely ignored numbers that can help us change course and move forward
We are casting a shadow of our own making over ourselves by excluding other contributors to our sector’s health (I’ve already been yelled at about it, save your breath)
There are very legitimate challenges ahead that are going to require industry wide cooperation.
Long Answer:
What matters is the well-being of our breweries, taprooms, and other craft beer businesses, which we love, and which provide good jobs, benefits, and growth opportunities for thousands of people. While we pour our heart and souls into them, great beer flows out. We, BA included, have changed the world of beer forever. In that spirit, the BA has been a major contributor to the success, and has enormous potential to help the craft beer industry moving forward. But there are still issues. The biggest is the BA’s definitions and misleading statistics which undermine us in ways that are being ignored in the current conversation.
I understand that big breweries are responsible
for some very shitty practices. But not all are equally culpable. We need to be wary of bad actors and take
them to task as necessary. Somehow, we also need to find common ground, or the
one thing we will have in common is bad news.
Remember, we are not alone in making our
success. Forces outside of our business
are partnered with us, and they will listen to our negative rhetoric and react
accordingly. Landlords will be less
inclined to lease to breweries and may move to more enticing tenants like
marijuana businesses. Banks will tighten
lending standards and pile covenants on loans with higher interest rates. New entries in the form of talented,
innovative, and energized entrepreneurs will move away from beer. Why
would we needlessly inflict this on ourselves?
It’s not 2015; times have changed. The problems on the horizon are shrinking
market share from wine, weed, and spirits, and the lack of a unified, strategic
plan to deal with challenges that are only now becoming known. What happens when weed is legal in 30 or 40
states, and an edible replaces a few beers? Let that thought sink in.
There is no doubt a lot of good ideas are yet to be
conceived around our challenges. They
will find an audience when we begin to work together as an industry, not
before.
On a personal note, I am sorry about pissing people off. This conversation is about a collective problem, not an individual or company. I say that, despite the nasty emails and comments I/we have received from people who clearly feel otherwise.
It’s been pointed out repeatedly that we are being dispassionate about a very passionate business. I am not dispassionate, and we are not dispassionate. Quite the opposite. I am passionate enough to lose clients and suffer verbal abuse. We are willing to stake our reputations and take an incredible amount of heat to move this conversation forward. The entire point is to bring about progress and grow the craft beer market share.
This is by far the best industry I’ve ever been a part of. I will spend the remainder of my working life dedicated to making it better by helping independent breweries and small businesses succeed in the face of endless challenges. It is extremely important, as we tackle those challenges and face down failure, that we recognize and celebrate our wins, both big and small. While the BA may never admit it, Mr. Watson’s words above are a big win…for everyone.
Portland Kettle Works is proudly independent, as is our brewery and taproom: The LABrewatory, and we support all other independents in the craft beer industry.
Portland Kettle Works was founded in 2011 in Portland, Oregon USA. We build high-quality stainless steel beverage and brewing equipment. We have built and installed over 375 state-of-the-art craft breweries worldwide. As a result, our craft brewing clients are among the best of the best. They regularly win beer tasting competitions and they have the gold, silver and bronze medals to prove it. We’ve expanded into winemaking so, if you’re serious about winemaking, contact us so we can help you, too. And, if you’re located in Mexico or Latin America, click here to visit our Spanish language site.
There is a Serious Problem with the BA’s Definition of “Craft Beer”
Late last year my team and I had a chance meeting with two Brewers Association (BA) executives in a brewery. This is not the start of a bad joke — it is how I learned about a serious problem with the BA and the huge opportunity I see in the craft beer industry.
After a couple of beers and some serious conversation we understood that the BA is not focused on the +80% of beer drinkers that don’t drink craft beer, and that protecting craft beer’s 12.7% of independent market share from AB-InBev is their primary goal. According to these BA folks, Anheuser-Busch is absolutely determined to put independent craft breweries out of business.
We believe this vision is flawed and out of sync with reality. It is based in empty rhetoric and fear that harms rather than helps independent craft breweries and keeps good ideas from finding the light of day. Below we describe why this is true, and we start by getting quite blunt about what craft beer is and who is making it.
What is craft beer? We all know it’s not fizzy, yellow water. Instead, it’s the “Premium Beer” that we all love as beer drinkers, regardless of who makes it. A “craft brewer” is someone or some firm that is engaged in producing it. This is not the BA’s “definition” which seems to change subject to political or economic necessity. Our inclusive definition of craft beer provides a view of the industry landscape from a broad and open perspective, and here is what we see:
Anheuser-Busch, Heineken, Constellation Brands, MillerCoors, Mahou San Miguel, Kirin, Asahi and the other big players are fully invested and very engaged in the business of craft beer. Collectively they have likely invested over $2 billion into the business of premium beer. That investment will continue. They are also in competition with the mounting number of worldwide independent craft breweries, and they are strong competitors in a space that they have traditionally owned. The competition is healthy and helps to drive innovation and quality throughout the industry.
AB InBev and the other large breweries that have invested in premium beer offerings are helping raise all boats
The systematic plan that Anheuser-Busch has implemented in buying independent craft breweries between 2011 and 2017 is likely over. Adding to their portfolio through the acquisition of SABMiller makes Anheuser-Busch the undisputed king of craft. Yet the craft beer community is needlessly being led into battle against AB InBev who is actually helping the industry make headway toward what we need most: growing the premium craft beer market share. Should we follow the BA, engaged in industry in-fighting and craft maxing out at 18-20% market share, or should we instead push craft forward toward 50% market share of the beer market?
Portland Kettle Works isn’t the only company that thinks the Brewers Association has painted themselves into a corner. The members of Crafting A Strategy (CAS), a global online community of beer business entrepreneurs of which PKW is a member, recently spoke out against how the ever changing and narrow definition of “craft” from the Brewers Association is misleading and potentially dangerous. In an October 2018 blog, CAS President Sam Holloway and V.P. Mark Meckler noted that AB InBev, Heineken, and Mahou San Miguel were using their vast resources and marketing expertise to convert the 85% of non-craft drinkers in the USA into craft drinkers. These breweries are working hard to bring in more craft beer drinkers, but their contributions to the overall premium craft beer market share are not counted in the BA definition. CAS suggests that we are closer to a 20% craft market share and this is a tipping point where we can quickly accelerate market share toward as much as 50% by 2025. CAS’s logic, borrowed from innovation diffusion logics, is depicted in the figure below. Whereas the BA’s definition of craft suggests we are maxed out, CAS and PKW believe we are on the cusp of widespread market growth if we are wise enough to keep our eyes, and our strategy, looking forward.
Growth in business is a measure of success. Stagnation and shrinking market share eventually lead to failure. If craft beer does not grow as a market segment we, meaning craft brewers including AB InBev, put ourselves under siege as we fight over a non-growing business with increasing competition. It is therefore incredibly dangerous to narrowly under-define the craft beer sector. The stakes are high. While the BA is engaged in protectionism, AB InBev is experimenting and redefining the market in an effort to remove barriers to entry for the 80% of non-craft beer drinkers. Independent brewers have a lot to learn from their efforts to grow demand in an increasingly competitive business.
Using BA statistics, 3,743 new breweries opened between 2014 and 2017 which translates to a 116% growth rate. During that same period, market share for craft beer, as defined by the BA, grew just 4.9%. This is equivalent to 30% growth per year in brewery openings against 1.3% growth in market share. This is a serious problem, but only because of definitions inadvertently designed to depress the business of craft beer.
…equivalent to 30% growth per year in brewery openings against 1.3% growth in market share. This is a serious problem…
Portland Kettle Works makes continuous efforts to define trends that affect our business. While the most recent annual numbers are just now becoming available, they are almost certainly supporting recent historic trends. Here are some recent findings:
Using publicly available records from the BA, we estimate that from 2014 to 2017 approximately 1.5 million barrels of craft beer were removed from the craft market sector as big breweries bought small breweries
At the end of 2017 the breweries previously defined as “craft” controlled roughly 4.9% of the overall market share
When this 4.9% is added to 12.7% “craft” beer share, the more widely defined craft/premium sector becomes 17.6% of the overall market
AB InBev and the other large breweries that have invested in premium beer offerings are helping raise all boats
It would not be at all surprising to find that craft beer, as defined in this article, is now in 2019 controlling over 25 and possibly as much as 30% of market share. This number feels better. However, it needs to continue growing.
At a recent brainstorming session, our team along with Crafting A Strategy examined what success should look like in the future. Framed in terms of market share, we decided that 50% for craft/premium is a worthy goal. In this moment, the Brewers Association has chosen to lead us into a battle, armed with a well intentioned campaign of “independence”. We absolutely stand with the BA’s effort to promote the importance of American entrepreneurial innovation, grit, and an undying determination to succeed. Given time and enough money, the independence campaign may well move the needle a bit as a small minority of the public that cares to identify and buy our beers over those of large breweries becomes educated. However, in our opinion, this is a misuse of BA resources. This effort will not grow the craft/premium market share one bit. We will remain besieged. Growing craft market share should be our collective and undisputed priority.
About 196 million barrels of beer were produced in the US in 2017. According to the BA definition and statistics, craft beer accounted for about 25 million barrels of that production (12.7%). Adding the premium sector increases that craft/premium piece of pie to 34.5 million barrels in 2017 (17.6%). This means, at 49 million barrels, craft/premium owns 25%, and at 98 million barrels, it is half of the market. How can that not be good for independent craft brewers, even if Anheuser-Busch and other big breweries help to get us there?
This is a future that we can look forward to. A robust environment with a huge, inclusive base of enthusiasts, willing and eager to enjoy high quality, flavorful beers from thousands of innovative independent breweries across the US and, if trends continue, tens of thousands worldwide. A lot of collaborative and rewarding work lies ahead. Rewarding work beats the blues any day.
Cheers,
Thad Fisco
Owner & Founder
Portland Kettle Works (PKW)
Portland Kettle Works was founded in 2011 in Portland, Oregon USA. We build high-quality stainless steel beverage and brewing equipment. We have built and installed over 375 state-of-the-art craft breweries worldwide. As a result, our craft brewing clients are among the best of the best. They regularly win beer tasting competitions and they have the gold, silver and bronze medals to prove it. We’ve expanded into winemaking so, if you’re serious about winemaking, contact us so we can help you, too. And, if you’re located in Mexico or Latin America, click here to visit our Spanish language site.
BoochMaster Kombucha Brewery is the world’s first brewhouse engineered specifically for the production of kombucha.
The PKW BoochMaster Kombucha Brewery is the culmination of our experience producing hundreds of HopMaster Brewhouses for the craft beer industry since 2011. Our HopMaster has become the industry standard, and is used to innovate recipes and deliver repeatable results for award winning breweries, large and small, worldwide.
Built on the HopMaster’s pedigree for performance, we have introduced the BoochMaster which provides the same features our craft brewery clients have come to expect and rely upon in our other products
Fact: Purchasing Quality, New or Expansion Brewery Equipment Pays
Portland Kettle Works designs and manufactures some of the best beer and kombuchabrewing equipment to be found anywhere, and we strive to make financing and investing in our brewery equipment as easy and seamless as possible.
PKW Goal: Critical, Hassle-Free Brewery Financing
In some cases, the approval process can take as little as 24 hours. Both brewery startups and established breweries are taking advantage of our brewery financing options.
PKW Services: We Can Help You Start Your Brewery
We design the brewery system to your needs
We manufacturer it specifically for you
We arrange your financing for the brewing equipment
And, we’ll buy it back when you’re ready to expand
Applying is Easy: Talk to Us
We have over a 97% success rate starting more than 300 breweries.
