SBA Financing Options for Brewery Expansion

I have been in commercial lending since 2005 and have closely followed the expansion of the craft beer industry for many years. Over the past several years, I had the good fortune to work with several individuals involved in various capacities within the craft beer industry. Throughout my interactions with them, I regularly found myself as interested with the business side of the industry as I was with the beers being created. Given my background as a lender, I thought about how the loan products commonly used by manufacturers could be used by breweries looking to expand. I believe expansion is the point at which a commercial bank is best positioned to work with a brewery. At expansion, the concept has been proven and implementation of a thoughtful capital structure can help fuel growth. SBA Program Overview: Many business owners are familiar with the Small Business Administration in some capacity. The larger question has to do with how the SBA and their loan programs can assist their company. In short, the SBA partners with banks and other lenders through a series of programs to provide funds to privately held businesses operating in the United States. As part of that partnership, the SBA provides those lenders with a guaranty against a loss on the loan in exchange for a fee that is paid by the borrower. That fee can be rolled into the loan request to help reduce the out-of-pocket funds needed to secure the loan. The overall underwriting process for an SBA loan is very similar to conventional commercial loans. The bank will underwrite the recent financial performance of the company in an effort to estimate their future performance. Through that review and consideration of projections, we can calculate the company’s cash flow in order to determine their ability to service both existing and new debt. In order to qualify for an SBA loan, the business must pledge the assets of the company to the loan and all owners with at least 20% equity in the company must personally guaranty the debt. Given that lenders are required to check the personal credit scores of all owners, I am often asked about the role that personal credit scores play in a credit decision. The overall expectation is that the business owners need to be as credit worthy as the company itself and thus a good credit score is expected. As a result, a good credit score will not necessarily improve your chances to obtain a loan but a poor score could put that loan in jeopardy. SBA loans can be used for a variety of reasons but are most commonly used to finance equipment purchases, real estate acquisitions or to provide working capital. Additional uses for the SBA’s programs include acquisition financing or buyout loans. There are a number of resources both locally and nationally for companies interested in obtaining an SBA loan for their business. As a lender, my recommendation is that you work with your existing advisors, area banks and the SBA itself before engaging anyone to help you secure an SBA loan for a fee. Fees to loan brokers can add up and are not eligible to be financed by the loan. If you choose to work with a loan broker, be sure to find out who is paying the fee as some lenders will pay finders fees in addition to ones paid by the business. Should you decide to move forward with an SBA loan for your brewery, the next logical question is who to work with? Outside of finding a partner who you believe would be a good fit, the following are some questions to consider as part of the selection process: •    To the extent you have existing loans, is your current bank an SBA lender? •    This question is important as all SBA loans are required to be secured with a first lien on the business assets. If you have existing conventional loans that are secured with the company’s assets, your new lender may those loans to be retired or combined with the SBA loan request. •     Does my SBA lender have delegated authority? •    Delegated authority (also known as an SBA Preferred Lender or an SBA Express Lender) allows the lender to approve the SBA guaranteed loan programs in-house. While this does not change any of the SBA program requirements, it does give the bank the ability to streamline the process and reduce turnaround time since the SBA does not need to separately approve the loan request. •    Does the lender intend to sell the loan guaranty or keep it within their portfolio? •    There is a secondary market for the guaranteed portions of SBA loans that is similar to the one that exists for home mortgages. As such, some institutions decide to sell the guaranteed portion to investors on the secondary market for fee income. Whether or not the lender chooses to sell the guaranteed portion of the loan should not have an impact on your ability to obtain the loan. Rather, the sale of the guaranty can impose limitations on that lenders ability to amend the loan in the future. If your brewery is seeking a long-term partner for your business, you may want to consider a bank who plans to keep your loan in their portfolio rather than one looking to sell the guaranty. •    Does the lender offer working capital lines of credit? •    This can be important if you anticipate needing a loan to support working capital in the future. Not all SBA lenders offer working capital lines which will limit your business if you find yourself in need of one. Similar to the first point, if you work with a lender who does not support working capital lines, you may be forced to retire or refinance the term loan with another lender in order to obtain the line of credit. SBA 7(a) Loan Scenario: For the first scenario, let’s envision a brewery expanding into a larger…

Mash Tun Journal #11 Release: A Reuben Party

On Saturday, April 29 from 5-9pm, join the producers of Mash Tun Journal at Maria’s/Kimski as they celebrate the release of issue #11. Enjoy some brews by a sweet lineup of breweries featured in the issue and try one of our favorite sandwiches: the reuben. Longtime Mash Tun contributors and sandwich enthusiasts Reuben Kincaid and Reuben Bratwurst Inc. will be on hand sampling out a few brews on the patio and celebrating the return of Chef Won Kim’s Reuben Sando. Featuring special sections by: Forbidden Root, Cruz Blanca, Hopewell, Revolution, Half Acre, Baderbrau, Whiner, Dovetail, Begyle, Marz, Corridor, and Goose Island.

Best Looking Brands in Beer Part 3: Grimm Artisanal Ales

  A few years ago, we tried to hook up with some mysterious brewer-artists that were serving their beers at exhibitions at alternative galleries in Chicago. We were hosting a series of Art of Beer events and thought they were perfect for the shows—but we never managed to connect. Four years later, we find out that the cats we were looking for were Joe and Lauren Grimm, the owners of Grimm Artisanal Ales.   What inspired you to start making beer?   Twelve years ago, you’d find us fermenting ginger beer, mead, pickles, and kimchi in our apartment kitchen. It was simple: We were interested in the transformation of materials by bacteria, yeast, and time.   Once we were hooked on Orval, Fantôme, and Jolly Pumpkin, beers with significant yeast and bacteria profiles, that was all we wanted to make. We only started producing IPA when we figured out how to make yeast esters play with hop character in a meaningful way.   We’re motivated by the challenge—we’re discovering how deep the rabbit hole goes, and there seems to be no bottom. Joe and I are constantly in search of new techniques and flavors in the beers we make.  Being truly great will require a lifetime of dedicated research and experimentation.     I assume you guys started as gypsy brewers instead of diving into the shit of opening your own brewery because of the cost and risk. Would you recommend going this route to others?   It’s always hard. We initially wanted to open our own production brewery with our own brewing equipment, but it was impossible without a sales record. Gypsy brewing ended up being the right move for us, but that doesn’t mean that it’s right for everyone. Now, we’re moving toward opening our own facility, specifically designed around our idiosyncratic practices.   It’s true that we didn’t have to deal with the upfront financial investment, but it’s not necessarily easier to operate the way we do. Folks often think that it’s easier than brewery ownership, but it’s just different. The risks are there, but different. The biggest risk in gypsy brewing is the power differential between the gypsy brewer and the partner brewer. They have you by the short hairs. Are you going to be able to assert yourself to get YOUR ideas into the bottle?   That’s why we’re constantly working on our relationships with our partner breweries. We have to be able to trust the people we work with day in and day out, and, in turn, they need to trust us to allow us into their breweries and give us the opportunity to experiment the way we do. Some people seem to have a fantasy of running a gypsy brewing business as, like, a hobby. If you treat it as anything less that a full time rigorous commitment you will suck at it and probably fail.   Three to four years ago it was brutal looking for space and time at breweries to contract brew beer. Has it been easier to find tank space and brewing time due to the growth in the number of breweries that have started?   It’s definitely been easier for us to find capacity more recently, but I think that it’s actually due to the relationships and reputation that we’ve built. There are more breweries around these days, but capacity still seems pretty tight. If a brewery is sitting with empty fermenters, ask yourself why. Is that somebody you really want to work with? How do you come up with concepts for your beers?   That’s a hard question to answer. It’s an ongoing process that began way back when we were first learning about fermentation 12 years ago. As we’ve developed identities as a brewers, we’ve developed a sense of style, a beer aesthetic. Each beer is a part of the Grimm project as a whole, and our ideas about our beer are constantly in flux. Every time we brew, we make small adjustments to our technique and ingredients, tweaks based on research and experimentation.   I see a Providence school of psychedelic hallucinogenic artwork in your beer labels. What is your process for naming, designing, and creating the artwork on your packaging?   You’re not wrong about the Providence connection; Joe and I both lived there in the aftermath of the Fort Thunder-era and that visual style was influential.   We always begin the process with a beer name. We’ll go back and forth playing off of one another’s ideas. For instance, the name Tesseract started out with a general idea of crystals, which led to tessera, the small pieces of tile that make up a mosaic, tessellations, and finally Tesseract, which came from A Wrinkle in Time.   Once we’ve decided on a name, the label design begins. One of our oldest friends, artist Gretta Johnson, is an integral part of our team.  The labels that originate in her drawings tend to have a hand drawn, gestural aesthetic (for example, Purple Prose and Future Perfect). The ones that I design from scratch tend to be more graphic and minimal (for example Magnetic Compass, Vacay). Because we’ve known each other for ten-plus years, our working process is pretty fluid. Most of the time, we just have a series of text messages to develop ideas for imagery.   Even though the final label is a computer file that I’ve worked through in Illustrator, the images usually begin as a drawing with pen and paper that Gretta or myself will draw. I think that’s one reason why our labels stand out so much. You can see the hand in each one, rather than just computer graphics. Can you tell me more of about the community of artists, brewers, and distributors that helped form Grimm along with you guys?   Joe and I are the only employees of Grimm, but we depend on a lot of other people to get our beer out there. Lately, we’ve been brewing a lot of beer at Flagship, on…

Best Looking Brands in Beer – Part 2: Evil Twin and Half Acre

In  issue 10 of Mash Tun Journal, we celebrate one of the reasons we love craft beer so much: the art and design of beer. Whether you know it or not, your local bottle shop or liquor store is hosting an exhibition of contemporary art on its shelves and in its coolers right now. Beer packaging design and labels are canvases that express the essence of their contents. Like any group art show, some work is pedestrian; some work is extraordinary. See Part 1 of the  Best Looking Brands in Beer for the full introduction. Evil Twin If you don’t know Evil Twin Brewing by now, you have been living under a rock. Evil Twin is a Copenhagen-based gypsy brewery that was formed in 2010 by Jeppe Jarnit-Bjergsø. Jeppe’s foray into beer started in the mid 2000s with a beer club and beer store in Copenhagen. Jeppe also happens to be the twin brother of Mikkel Borg Bjergsø, who runs the Danish brewery Mikkeller, whose brand is also featured in our Best Looking Beers in the Business piece.   Evil Twin started a few years after Mikkel opened Mikkeller in Denmark. As the Danish beer scene blew up and went global, Jeppe made the move to Brooklyn in 2012 to direct his empire. After moving to Brooklyn, he opened an awesome beer bar, Tørst, which features Evil Twin beers alongside other weird and delicious beers from around the world.     With beers being made on both sides of the Atlantic Ocean, Evil Twin has grown into a global craft beer company. He is the living incarnation of the brewer-as-rockstar, jet-setting around the world collaborating, brewing, and innovating for the craft beer world in terms of formula, design, marketing, and distribution.   Evil Twin is known for their elegant label design and clever beer names, such as: Beer Geek Breakfast, Christmas Eve at a New York City Hotel Room, Imperial Biscotti Break, and Hipster Ale. Jeppe often collaborates with his wife, Maria, who has a hand in guiding the brand through the beer naming and label copy writing processes. Creative Director Martin Justesen initiated the Evil Twin graphic design style with a simple triangle. This triangle is the DNA Martin instilled in the Evil Twin brand, and is a point of reference in the art development for each beer. Martin’s process begins with a beer name. He then creates ideas and sketches from scratch. His work is eye-catching and detail-oriented. www.martinjustesen.com http://mikkeller.dk/   ////// Half Acre Beer Co   Here in Chicago, we love the design of the liquid and labels of Half Acre Brewing. They were part of the second wave of breweries in Chicago that started breaking the mold of what a brewery could be.   Half Acre began ten years ago as a contract brewer, and over the last decade they have grown into becoming a Chicago powerhouse. Their first brewery was built in 2008 at 4257 N. Lincoln Ave, which now houses a retail shop, a taproom and full-service kitchen, and a 25-barrel brewhouse.   Last year, they built their Balmoral Ave. brewery, and it’s about to be unleashed to the public. The larger brewing facility will be complemented by an awesome patio and tasting room—and more food, we hope.   Well crafted, creative, and classic, Half Acre’s beers are batting 1.000. You will taste magic in their iconic Daisy Cutter Pale Ale, seasonals Akari Shogun American Wheat Ale and GoneAway IPA, freak-out-and-line-up-for-it Big Hugs Imperial Stout with coffee, and other tasty taproom exclusives. Half Acre embraces the creative process with the design of their labels. President Gabriel Magliaro works with artist and graphic designer, Phineas X. Jones, in marketing and branding their beers. At Half Acre, Magliaro can be considered the creative director, giving Phineas a wide range of material and inspiration to create a label. Sometimes, the idea is only a name; other times, the ideas are specific. But most times, the ideas percolate in the back in the brewery. By the time it reaches Phineas, Magliaro has a fully formed concept in his mind. Phineas filters and interprets these concepts and brings their art to life.   Phineas works from a blank canvas. That fact alone differentiates Half Acre from other breweries following templates and the usual boring conventions of beer labeling. This approach is what makes Half Acre’s marketing and branding refreshing and fun. And their wide range of artwork, styles, and concepts are what separate Half Acre from the pack.

Best Looking Brands in Beer – Part 1

by Ed Marszewski For years, Mash Tun organized and produced “Art of Beer” events around Chicago, showcases for the work of the artists and designers who communicate a brand’s personality and vision through labels, posters, and other packaging. We hosted these events to help craft beer enthusiasts understand and enjoy the parallel activities that make bring a craft beer brewery to life. These parallel art forms of making beer and making a beer brand are an obsession of ours. They have made us pursue drinking the world’s best beer while investigating the work of some of the best illustrators, artists, and designers on the planet.   In this issue of Mash Tun Journal, we celebrate one of the reasons we love craft beer so much: the art and design of beer. Whether you know it or not, your local bottle shop or liquor store is hosting an exhibition of contemporary art on its shelves and in its coolers right now. Beer packaging design and labels are canvases that express the essence of their contents. Like any group art show, some work is pedestrian; some work is extraordinary.   Some craft beer labels can be shitty and poorly designed, featuring amateur illustrations with little attention to detail. At their worst, they be downright offensive. Other times, beer labels are works of art that can entice you to try the beer—and that’s the point.   In recent years, the growth of the craft beer segment has increased competition among breweries in a few ways: for shelf space at retail outlets, for beer drinkers’ attention, and, ultimately, for beer drinkers’ business. Given the decline of “brewery loyalty” among consumers, breweries must now differentiate themselves from their friends and competitors in the industry. Breweries looking to set themselves apart pour thought and money into producing the right look and feel for their packaging and marketing, instead of focusing on the liquid alone. We love it when a brewery makes the packaging and design as exciting and bespoke as the liquid in the bottle.   When we picked the candidates of the Best Looking Brands in the Beer Business, we turned to some of our longtime favorites and a few cult-status breweries whose work we find to be experimental and progressive.   Enjoy.   Our first featured brewery is Mikkeller: Mikkeller was started in 2006 by Mikkel Borg Bjergsø, a Danish physics teacher-turned-brewer, and friend Kristian Keller. After making kitchen experiments for two and a half years, Bjergsø and Keller started brewing beer at a larger scale at Danish microbrewery Ørbæk and just dropped the mike.   Mikkeller broke all the molds for what a craft brewery could be. Practically inventing the idea off gypsy brewing, which is essentially contract brewing, Mikkeller beers also ushered in the notion of making a bottle or can of beer a work of culinary and visual art. Since its auspicious homebrewing roots, Mikkeller has become the face for gypsy breweries globally—both in terms of brewing and branding.   For Mikkeller, gypsy brewing means bouncing around from brewery to brewery, using excess tank capacity to create many different beers each year. Because of that, they need a lot of artwork to communicate the stories of their beers. That job went to Keith Shore. He first started working freelance for Mikkel—for many years now, Shore has made the beautiful aesthetic of his Mikkeller characters and illustrations into ubiquitous works of art.     The design process is pretty simple. Usually, Mikkel explains a beer’s ingredients and flavor profile and Shore is given complete freedom in developing the imagery, sometimes coming up with the crazy names as well. Shore is usually working on 10-20 designs at a time, using gouache and watercolors to flesh out what is in his sketchbook. His labels are usually color bombs with cartoonish figures that make a nod to the works of Henri Matisse and David Hockney.   To date, Mikkeller has made over 650 beers, distributed to over 40 countries. Mikkeller has opened bars in Copenhagen, San Francisco, and Bangkok. Shores’ work is featured in the design of those spaces as well.   If there is anyone that has ushered in a new age of branding a beer to help it stand out in a crowded marketplace, Mikkel and Shore could take the blame.   ////////////////////// ////////////// //////// ////// //// // / Omnipollo Karl Grandin is part of the dynamic duo that comprises Omnipollo, a Swedish-based gypsy beer brand that Grandin and pal Henok Fentie created in 2011. Karl directs the marketing and branding side while Henok leads on brewing side. Omnipollo beers are being made all over Europe and the U.S. Omnipollo beers are unique in their packaging, and the liquid tastes delicious.   Conceptually and aesthetically, the bottle labels leap from the shelves and beckon you to pick them up. Representing a mixture of psychedelic abstractions and pop religious culture icons, Omnipollo artwork is unique, almost mind-blowing, really.     Karl says that the Omnipollo images are based on his own dreams, and that he tries to bring that psychedelic and enigmatic sort of logic into the artwork. In Karl’s words, the Omnipollo world is “an open-ended cosmos, and although the imagery is often allegorical,” Karl encourages people to explore their own interpretations rather than explaining his intentions.   Rather than trying to make artwork that would somehow describe or portray the style or taste of a beer, Karl looks for what is going on around Omnipollo to try to capture something less obvious. There is always a synergy between the beer, the artwork, and the name, sometimes straightforward and obvious. Sometimes it is more cryptic.     Karl says, “We want Omnipollo to be about more than the beer and the artwork. Presentation and stories are important parts of what we create. The shape of Omnipollo will keep developing and shifting. We have made handmade glass cups, garments, jewelry, and a book on homebrewing, and through all the people we meet, the collaborations…

Using Bankruptcy to Kill the Narrative of the “Craft Beer Bubble.”

By Jack O’Connor   Last December, San Francisco-based Magnolia Brewing filed for chapter 11 bankruptcy protection. Being a corporate bankruptcy attorney (and an optimistic beer geek), I view this positively.   You should, too. Why? Because it’s good evidence that the craft beer industry is ready to move past the tired narrative of the dreaded “Craft Beer Bubble.”   First, let’s talk about the bubble, and how it’s been speculatively applied to the current craft beer boom, for better or worse.   Then we can talk about why a bankruptcy filing in Northern California may be important to ending this narrative.   How the “Bubble” Concept is Applied to the Current Craft Beer Boom   What exactly does it mean when we talk about a “bubble,” in the craft beer industry? Why is it relevant? Should I be concerned about bubbles? What about bubbles in my bath? Are you going to keep asking rhetorical questions? BUBBLES!   The term “bubble,” seems ubiquitous these days when discussing the growth of the craft beer industry. But it’s rarely defined in a clear way. Most often, people seem to use the term “bubble,” to refer to the very broad economic concept of an economic cycle, characterized by rapid expansion in a market, which is followed by severe contraction.   The most commonly cited example of a past “bubble,” in the craft beer industry was the rise and fall of microbreweries in the late 90s and early 2000s. According to data from the Brewers Association, the total number of breweries in the U.S. grew by over 500% between 1990 and 2000, ultimately stalling out and slightly declining between 2001 and 2006. Since 2006, however, the total number of breweries in the U.S. has grown again by almost 300%, from 1,511 total breweries in 2007 to current estimates exceeding 4,300 total breweries; more than have ever existed in the country’s history.[1]   Along with the growth in number of breweries, the marketshare of craft beer has also grown significantly over this time, both in terms of total sales, and production volume relative to the overall beer market.   This rapid growth of craft beer in such a short time is constantly narrative fodder for journalists, bloggers, and forum commenters (Trolls!), speculating that we’re in the midst of another “bubble,” that’s ready to burst any day. The argument usually employs the following logic:   New breweries are opening, and current breweries are expanding, at an unsustainable rate. Since the rate of growth is unsustainable, the growth of the craft beer industry will suddenly halt, or reverse just like it did 20 years ago.   While we are certainly in the midst of a booming period of growth in craft beer, this argument ignores a number of factors in making the case that we’re in the midst of a bubble. Namely, it misses the idea that craft beer is in the midst of entering a maturity. Calling it a bubble is misleading and ultimately harmful for a couple of reasons.   First, the term “bubble,” itself is probably not the right term to describe what happened in the 90s and what people are speculating will happen now. When used by financial professionals, the concept of a bubble focuses on trade pricing for assets in a specific market that strongly deviates from the actual value of those assets (think stock prices, home values, etc.). For example, the dotcom bubble in the late 90s and early 2000s (which happens to coincide with craft beer’s last boom & bust period), was characterized by investors buying tech stocks at artificially high prices, in the belief that they could sell them at even higher prices in the future. This speculation proved untrue, causing the bubble to burst when the value of tech stocks took a nose dive.   What we saw in the 90s was probably better described as a boom-and-bust period within the craft beer industry. The number of breweries expanded rapidly, and very suddenly stopped, resulting in a shrinking of the industry generally. This distinction is important to note, because regardless of the rate of industry growth, the industry has never completely fallen off a cliff. The trend, over time has continued upward. Thus, the use of the term “bubble,” can be detrimental to the industry. It assumes a cataclysmic event in which the industry as a whole goes belly-up.   Rather than focusing on the bubble narrative, our attention should be focused on how the industry is maturing in the midst of a boom period. Expansion, financing, and acquisition rates are high right now, and likely to slow over time, meaning at the very least fewer new breweries will open on such a rapid basis. And when coupled with increased competition between existing breweries who’ve undergone significant expansions and need to sell more and more beer to stay in business, some breweries will inevitably be forced out of the marketplace.   Some won’t be able to compete on quality, others won’t be able to compete from an operational efficiency standpoint. More than a few experienced craft players have adopted this view, including Sam Calgione (Dogfish Head), Bill Covaleski (Victory), Greg Koch (Stone),[2] and Mike Stevens (Founders).[3] When recently asked, all four have indicated that they think that the industry is heading toward a “shakeout,” or “fallout,” where breweries will have to close, and the number of new brewery openings will inevitably slow. But none of them seem to think that the craft beer industry is about to experience a complete bust.   I think Van Havig of Gigantic said it best back in 2014, when interviewed for the Strange Brews podcast on NPR. “If you think that every brewery out there is going to make it . . . No,” because every industry has “bad operators,” who’ll go out of business.[4]   So even during a boom, industry turnover is natural and expected. It doesn’t mean that a magical pin is about to fall from the sky and pop…

The 39th Annual Illinois Craft Beer Awards are Coming!

The first ever 39th Annual Illinois Craft Beer Awards is a party to celebrate all the amazing, fun, and insanely creative people who make the Illinois craft beer industry the vibrant scene that it is! It’s produced by your friends at Mash Tun Journal and The Beer Temple. The ICBA ceremony is like The Golden Globes or The Academy Awards but for beer industry professionals and for a good cause! Who will win the highly-coveted “Foamy” trophy and in what category? You’ll have to attend the party to find out! General admission tickets are $35 BUY THEM HERE Admission includes: Complementary Miller High Life Complementary Craft Beer and Malort! Paparazzi ! Live Music! Entertainment ! Swag! Participating breweries include: Hopewell Brewing, Maplewood, Three Floyds, Half Acre, Revolution, Lagunitas, Goose Island, Arcade Brewing, Transient Artisan Ales, Marz Community Brewing, Lake Effect, Twisted Hippo, Une Annee, Scratch, Noon Whistle, Forbidden Root, Middle Brow, Ballast Point, Whiner, Miller, Band of Bohemia, Blue Island Beer Co, Aleman, Pipeworks, Illuminated Brew Works, Hop Butcher, and others. There is very limited capacity at this event. All the proceeds from the event will go to Doctors without Borders.

Mash Tun 010 Release party

Issue 010 of Mash Tun Journal features work by Calvin Fredrickson, JJ Jetel, Mike Killion, BJ Pichman, Alex Bach, Calvin Fredrickson, Ed Marszewski, Jack O’Connor, Jenny Pfäfflin, Mike Smith, and Matt Tanaka. We are having the official release party for Mash Tun Journal 010 at Kimski’s Sword Fight event. Sword Fight: A Sausage Battle Royale Sunday, Oct 9 – 2-6 PM 960 W. 31st St, Chicago, IL. 60608 Sword Fight: A Sausage Battle Royale Sword Fight is Kimski’s inaugural sausage competition. It’s a celebration of encased meats and the people who make and eat them. We will pit three of Chicago’s premier purveyors of encased, cured and fresh meats; Publican Quality Meats, Haymarket Pub & Brewery and Bridgeport’s own Martinez Supermarket in a brat battle royale against one another with the audience ultimately deciding who the wiener is by voting for their favorite. Sword Fight also features a Sausage Toss contest and a Relish Race. The Sausage Toss (like the well-known picnic balloon toss) will use casings filled with water with different players throwing the sausages to one another, taking a step back after each catch until one player either drops or pops his sausage. The Relish Race will be a three-member Olympic-like relay event with different runners handing off a sausage baton to one another as they run a circular course around Maria’s. First team to the finish line without dropping their sausage wins. The final competition will be a Polish -sausage eating contest, presided by the Sausage Queen, Nicole Makowski of Makowski Real Sausage Co. Other treats include The Chicago Stock Yard Kilty Band and Carnival Style Sausage cutouts painted by our own Chef Won Kim. We invite you to drop by to share in the festivities for this afternoon of good-natured fun, frivolity and great food. We will be serving all three sausages as a sampler and a la carte. And of course, you’ll be able to pair your sausage with Maria’s varied and wide selection of draft beers and cocktails.  

Yes, Sir, Senator: A Bootlegger’s Palace Becomes a Brewer’s Paradise

By Paul Durica ( from issue 009 ) Over eighty years after repeal, Prohibition and the trade in illegal alcohol its adoption promoted remains closely associated with the city of Chicago. What other city has as one of its most globally-known former residents a bootlegger and gangster, Al Capone? In what other place can tourists take an Untouchables tour led by the likes of Shoulders and Johnny Three Knives? Every bar of a certain age claims with pride to have survived the 1920s as a speakeasy although few can offer up any evidence to support this belief. As Northwestern University’s Bill Savage, who teaches a class on “The City That Drinks,” has observed, the successful speakeasies never got caught, while those who made the papers on account of a raid quickly shuttered. As I’ve written about in Mash Tun, a lot of the illegal industry involved homebrewers with so-called “beer flats” dotting the city. There is one verifiable speakeasy that not only survived Prohibition but managed to capitalize on its illicit fame to become one of Chicago’s most beloved and long-lived restaurants: Barney’s Market Club. Rotund and gregarious Barney Kessel enters the public record in a scene straight out of the Jimmy Stewart film Call Northside 777. In 1928, Barney’s restaurant (also an illegal bar, as the newspapers make clear) was held up, and one of the three robbers, Hyman Greenberg, was shot and killed by a police officer, Lt. John Kelley, who’d popped in for a backroom beer. Greenberg, 23, had worked for a printing press not far from Barney’s and had worn “smoked glasses” to conceal his identity. He was a member of one of the numerous immigrant communities residing near the restaurant on the city’s west side not far from Jane Addams and Ellen Gates Starr’s Hull House settlement. Not long after the botched robbery, Barney would find himself on the wrong side of the law, arrested for operating a speakeasy and sentenced to sixty days in the Ogle County Jail. Exhibiting the charm used on the connected and powerful throughout his career, Barney managed to escape his cell for twenty of those days, a minor scandal that resulted in the county sheriff being fined for failure to enforce prohibition laws and that suggested, as did the Greenberg shooting, that the relationship between local law enforcement and bootleggers wasn’t always antagonistic. Despite the arrest and brief imprisonment, Barney managed to open a second, larger restaurant in the late 1930s, right in the center of Chicago’s wholesale market district.   Barney’s Market Club is the restaurant most Chicagoans remember. It specialized in steak, lobster, and smelt. Bowls of radishes and green onions greeted visitors as they sat down at their tables, one of them, the so-called “Holy Corner,” reserved for men of the cloth. Eddie the harmonica player entertained as he wandered among the tables, some inside, some out, for Barney’s claimed to be city’s first sidewalk café. Overseeing it all, Barney, a white apron tied tight around his ever-expanding center, barked out, “Put him on the payroll” or “Yes, sir, Senator,” to the delight of patrons. Politicians, like priests, frequented the Market Club, and the story goes that Barney, never able to keep straight who held what office, referred to them all as “Senator.” Whether the story is truer than the numerous ones about Chicago speakeasies is difficult to tell, but as a marketing strategy, it worked: Barney’s Market Club quickly established itself as one of Chicago’s most colorful restaurants. Barney got in trouble with the law again in the middle of World War II for selling more steaks than his ration points allowed, but, as was the case in his bootlegger days, this infraction made him only more popular with the public. A diet of his own steaks and lobster eventually caught up with him, and Barney died of a heart attack in 1951. His son-in-law took over the business and employees at the Market Club continued to call everyone “Senator” until its closing in 1996.   While Barney Kessel managed to not only survive but also thrive in the aftermath of Prohibition, the same could not be said of Chicago’s brewing industry. In 1900, sixty breweries operated in the city. The passage of the 18th Amendment and the Volstead Act that brought about Prohibition ended the existence of all but a handful. Those that survived succumbed, one by one, as national brands such as Miller and Anheuser-Busch took over the market. Then, starting in the late 1980s, craft breweries, Goose Island chief among them, started to appear. Today Chicago has over 150 craft breweries, with more opening each month. One of them, Haymarket Pub and Brewery, occupies the old Barney’s Market Club with 11 of its own award-winning craft beers and 13 guests drafts on tap. “We searched around town for over a year looking for a spot that was both a good location and also steeped in Chicago’s rich history,” says brewmaster and co-owner Pete Crowley. “When we walked into Barney’s old space in the Haymarket Square, we knew instantly we had found it.” The brewery may take its name from a different part of Chicago’s past but, through Barney’s Market Club, connects back to Prohibition. Haymarket makes one grateful, with each sip of its Speakerswagon Pilsner or Mathias Imperial IPA, that those unenlightened times are behind us and that we can all still feel like Senators.      

C.H.A.O.S. Diaspora: When Homebrewers Go Pro, Pt 4

By Calvin Fredrickson C.H.A.O.S. brew club is a homebrew collective located in Chicago’s Near West Side. Established in 2011, C.H.A.O.S provides brewing resources to budding homebrewers, from equipment, to cellaring space, to camaraderie. But if you’re just looking for a good time without a serious commitment to brewing, do not miss their seasonal parties, which are open to the public through a trial membership. A dazzling array of food – prepared by C.H.A.O.S. homebrewers –is served alongside adventurous homebrew with a deftness to make an epicurean blush. Many homebrewers dream of taking their stovetop batches to a commercial scale. The following homebrewers did just that. Some were present at C.H.A.O.S. from its inception, or close to it, while others had only a brief involvement with the club. One thing is certain of these homebrewers: their shared goal of working in the beer industry was impacted by their time at C.H.A.O.S. These homebrewers found a way to go pro. We hope their stories inspire you like they inspired us. Eric Olson Occupation before going pro: Bartender and beer-buyer Current industry gig: Production manager, Marz Community Brewing Co. How and when did you catch the homebrewing bug? Mike Marszewski, the owner of Maria’s Packaged Goods and Community Bar, introduced me to homebrewing. He helped me brew my first homebrew in my apartment which is now occupied by Marz’s brewhouse. This was the summer of 2011. C.H.A.O.S. members range from casual to obsessive homebrewers. Where did you fall on that spectrum? Relative to the rest of the brewers, I’d say I fell somewhere in the middle. At any given point I had at most 2 carboys in the fermentation room or “ferm-room,” as members call it. My homebrewing was split between beers I brewed at the C.H.A.O.S. club house and those I brewed at home. Did you have an epiphany homebrew where you said, “Man, I could sell this. I should make a go of it”?  The beer I impressed myself the most with was an American brown ale that I had added some rhubarb and strawberries to. It was early spring when I brewed it, so I was able to utilize some fresh rhubarb from my mother’s garden in Rockford, IL. It had a wonderful tartness from the fruit backed by a robust, toasty malt bill. The beer really mimicked the experience of eating fresh strawberry rhubarb pie. So, how did you “go pro?” Well, I’m glad you put that question in air quotes. I’ve been in the process of becoming a pro the last year and a half working at Marz. No one simply goes pro overnight. That said, the way I stepped out of the world of homebrewing and into the world of commercial brewing started out with talks Ed Marszewski and I had. We already had this deep affection for craft beers, drinking and serving them at Maria’s. After about a year or so of nonchalantly talking about starting a brewery, a small little storefront in Bridgeport opened up (my old apartment in the back). We decided this would be as good a place as any to make our liquid dreams a reality. What does your role at Marz entail? Managing production at Marz entails scheduling our production and staff. Working with ingredient and equipment suppliers to ensure the brewery has the materials to brew and package our beers. Being such a small brewery we all wear a lot of different hats, so on any given day you might also see me graining out a mash tun, cleaning kegs, or labeling bottles, etc. What’s the latest at Marz, and which of your beers are you jazzed about? We recently packaged a sour version of our Bridgeporter. It packs nearly a pound of fruit per gallon, including elderberries, cherries, and blackberries. Fruited sour up front, porter on the finish. <Doing my best jazz hands>. Any advice for homebrewers or beer freaks lookin’ to go pro? The biggest piece of advice I have is learn from your local commercial brewers as much as possible. If you live near Chicago or another major craft beer hub, you are surrounded by many brewers with a plethora of knowledge. Brewers learn and improve they’re craft by making mistakes (which you don’t have to make!) So ask around your local breweries to volunteer or just hang out learn. Take notes, ask questions, and always pay attention to what the brewers are doing. This will pay major dividends when it comes to troubleshooting your own brewery.  In addition, homebrew clubs like C.H.A.O.S. are hotbeds for brewing know-how. I was amazed at how much I learned about brewing sitting on the clubhouse couch (RIP old friend) hungover on a Sunday afternoon.   Tim Lange Occupation before going pro: Senior IT systems consultant Current industry gig: Head brewer, Marz Community Brewing Co.   How and when did you catch the homebrewing bug?    Just after college, my roommate’s girlfriend gave him a homebrewing kit and basic hardware, but it sat around our apartment unopened and unused for long enough that it became common property. I read Charlie Papazian’s book, got inspired and fermented a few barely drinkable beers in a closet. Friend and colleague Tremaine Atkinson (CH distillery) was a homebrewer years before this. After hearing about my semi-successful extract batches, he brought over his mash/boil kettle and a Blichmann wort chiller for my first all-grain brew.  We had a stuck sparge but made a great beer! C.H.A.O.S. members range from casual to obsessive homebrewers. Where did you fall on that spectrum? After my first few batches, brewing became a full-blown obsession pretty quickly. I built a temp controller out of Radioshack parts and turned a 14′ deep freezer into a fermentation chamber—this drastically changed the quality of my homebrews into something I was proud to share. Building a kegerator also helped develop my palate and understand how beers change over time as they lager and stale in kegs.  The last major step up was getting a 20-gallon Blichmann brew system that effectively doubled…

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