How Sam Calagione Built Dogfish Head Brewery

Taken with the idea of crafting his own brand of beer, Sam Calagione left his writing program at Columbia University in New York City in 1993 to apprentice at a brewery in Maine. One year later, Calagione built his own brewery using recycled kegs in the resort town of Rehoboth Beach on the Delaware shore. Today, Dogfish Head, named after a peninsula in Maine, operates a restaurant, a distillery and a brewery that, in producing 140,000 barrels of beer and raking in a combined $52 million in revenue, has become one of the fastest-growing microbrewers in the nation. Calagione has also become a media star both as the author of three books, including Brewing Up A Business (which has been updated and rereleased in paperback), and as the host of the Discovery Channel’s, “Brew Masters.”

Here’s how Calagione describes his rise to the top of the beer world:

I started waiting tables at a restaurant called Nacho Mama’s Burritos on the Upper West Side of Manhattan while I was enrolled in some writing classes at Columbia University. That’s when I first tasted microbrews like Sierra Nevada Bigfoot and Chimay Red. I then got hooked on brewing my own beer in my tiny apartment. That’s when I decided to drop out of school and take an apprenticeship up in Portland, Maine at the Shipyard Brewery so I could learn how to make even tastier beer. During the day, I learned about hops and international bittering units or IBUs, which measure how bitter a beer is, while working on my business plan at night.

After about a year in Maine, my wife Mariah and I and moved back to her hometown near the Delaware shore. I fell in love with the area and decided to try and open my own brewery there. I didn’t have a lot of money, so I cobbled together some used equipment and started experimenting in my basement with lots of unique ingredients like licorice, coffee and apricots. The frustrating thing was that I could only brew about 20 gallons at a time, which was about 10 cases worth. I started by selling what I had to areas pubs and restaurants.

My beer, however, started to get a reputation for being different. I started getting requests from bars and distributors in Baltimore, D.C. and Philadelphia, so would hop in my truck and deliver them a few cases at a time. As we started to sell more, we could afford to expand our production, so I bought an old Dannon yogurt factory and converted its equipment into brewing kettles.

In 1997, the craft-brewing industry really exploded. Brands like Sam Adams and Pete’s Wicked Ale became household names and that put a lot of pressure on the 1,600 smaller breweries like ours to keep up. But I wouldn’t cave on keeping our beer unique and distinctive since 80 percent of the beer sold in the U.S. is a derivative of a similar lager recipe sold by Budweiser, Coors, and Miller. Even though craft beers make up less than 5 percent of the market, I wanted to sell to people who wanted some excitement in their beer. I knew not everyone would drink our beer. We were seen more as heretics than pioneers. That’s why I adopted the mission of making off-centered ales for off-centered people.

We had separated the production brewery from our restaurant, Dogfish Head Brewing & Eats, in 1997, but our wholesale operation didn’t turn the corner until 2001. We were using the profits from the restaurant to keep the brewery afloat. But when many other breweries started going out of business, I was able to buy the assets of the Ortlieb’s brewery in Philadelphia for pennies on the dollar. I got $1 million worth of equipment for $200,000, which meant that I finally had equipment designed to make beer. The consistency and quality of our beer really took off from there. That was a real turning point.

When we started, we were the smallest craft brewery in the U.S. We were able to grow 40 percent to 50 percent every year until recently when we decided that we were growing too fast. We want to build a family-run business, not sell out or go public. Now our goal is to grow something like 20 percent a year. That’s frustrating for some of our distributors who want to sell more of our beer.  While I’m proud to say that we were the fastest growing brewery over the past five years, we’re more interested in building a brand that stands for something, which means growing methodically and organically even if it means we’re leaving money on the table.

The beers we make today are more exotic than when we opened in 1995. It’s exciting for us to focus on ancient cultures and to revive ancient recipes. We flex our creative muscles every chance we get. We now have 34 different styles that use ingredients such as maple syrup, juniper berries, cumin, coriander, and tea. Once someone learns that beer was made in Turkey 3,000 years ago using saffron, tasting one that uses maple syrup doesn’t seem so crazy.

While we are still best known for our beer, we have expanded the Dogfish Head line to include everything from gin, rum, and vodka that we distill ourselves to a line of beer soap and shampoo. While I shy away from using the term lifestyle brand, it really comes down to saying, Hey, if you like delicious and flavorful beers, you might want to check out these other things, too.

We continued to grow throughout the recession despite the fact that our beers are among the most expensive. Yes, craft beers are a luxury. But we’re reminding people that they can treat themselves to a word-class beer rather than splurge on a giant SUV. It comes down to identifying the truly important things in life.

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BOULDER, Colo. – (Business Wire) The Brewers Association, the trade association that tabulates production statistics for U.S. breweries, today released 2009 data on the U.S. craft brewing industry. In a year when other brewers saw a slowdown in sales, small and independent craft brewers (see definition)¹ saw volume increase 7.2 percent² and sales dollars increase 10.3 percent over 2008, representing a growth of 613,992 barrels equal to roughly 8.5 million cases.

Overall, U.S. beer sales were down approximately 5 million barrels (31 gallons per U.S. barrel) in 2009.

“Beer lovers continue to find great value and enjoyment in fuller flavored craft beers,” said Paul Gatza, director of the Brewers Association. “Americans have an increasing appreciation of craft beers, and the growing number of brewers behind them. They’re eager to try the latest seasonal release and to sample a variety of beers from different breweries.”

In 2009, craft brewers represented 4.3 percent of volume and 6.9 percent of retail dollars for the total U.S. beer category. With the total U.S. beer industry representing an estimated retail

dollar value of $101 billion, the Brewers Association estimates the actual dollar sales figure from craft brewers in 2009 was $7 billion, up from $6.3 billion in 2008.

The total number of U.S. craft brewers grew from 1,485 to 1,542 in 2009, and they produced 9,115,635 barrels, up from 8,501,713 barrels in 2008. Overall U.S. beer sales fell from approximately 210.4 million barrels to 205.8 million barrels.

The 2009 growth and popularity of beer from small, independent breweries did not go unnoticed by industry observers. The National Restaurant Association Chef Survey (see results), for example, cited “locally-produced wine and beer” among its top five overall trends to watch for in 2010. In the alcohol and cocktails category, the organization ranked “locally-produced wine and beer” as its top trend, while “food-beer pairings” came in at number five on the list.

For more information

Find more statistics on the craft brewing industry in the updated 2009 Craft Beer Industry Statistics on the Brewers Association website. A more extensive analysis will be released on April 8, 2010 during the Craft Brewers Conference in Chicago. The Association’s full 2009 industry analysis, which shows regional trends and sales by individual brewery, will be published in the May/June 2010 issue of The New Brewer.

The Brewers Association also publishes a list of 2009 U.S. craft brewing companies on its website.

^1. The definition of a craft brewer as stated by the Brewers Association: An American craft brewer is small, independent and traditional. Small: Annual production of beer less than 2 million barrels. Beer production is attributed to a brewer according to the rules of alternating proprietorships. Flavored malt beverages are not considered beer for purposes of this definition. Independent: Less than 25 percent of the craft brewery is owned or controlled (or equivalent economic interest) by an alcoholic beverage industry member who is not themselves a craft brewer. Traditional: A brewer who has either an all malt flagship (the beer which represents the greatest volume among that brewers brands) or has at least 50 percent of its volume in either all malt beers or in beers which use adjuncts to enhance rather than lighten flavor.

^2. Volume by craft brewers represent total taxable production.

Based in Boulder, Colorado, USA, the Brewers Association (BA) is the not-for-profit trade and education association dedicated to small and independent American brewers, their craft beers and the community of brewing enthusiasts. Visit BrewersAssociation.org to learn more. The Association’s activities include events and publishing: CraftBeer.com; World Beer Cup®; Great American Beer Festival℠; Craft Brewers Conference and BrewExpo America®; National Homebrewers Conference; National Homebrew Competition; SAVOR: An American Craft Beer and Food Experience; American Craft Beer Week; Zymurgy magazine; The New Brewer magazine; and books on beer and brewing. The Brewers Association has an additional membership division of 19,000+ homebrewers: American Homebrewers Association. Consumers are invited to learn more about the dynamic world of craft beer at CraftBeer.com.

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If you downed one too many while watching the Super Bowl, here’s at least one reason to hold your head high: Drinking beer can be good for your health.

But seriously, a new analysis of 100 commercial beers shows the hoppy beverage is a significant source of dietary silicon, a key ingredient for bone health.

Though past research has suggested beer is chockfull of silicon, little was known about how silicon levels varied with the type of beer and malting process used. So a pair of researchers took one for the team and ran chemical analyses on beer’s raw ingredients. They also picked up 100 commercial beers from the grocery store and measured the silicon content.

The silicon content of the beers ranged from 6.4 mg/L to 56.5 mg/L, with an average of 30 mg/L. Two beers are the equivalent of just under a liter, so a person could get 30 mg of the nutrient from two beers. And while there is no official recommendation for daily silicon uptake, the researchers say, in the United States, individuals consume between 20 and 50 mg of silicon each day.

However, other studies show that consuming more than one or two alcoholic beverages a day may be, overall, bad for health.

The take-home message for the casual drinker: “Choose the beer you enjoy. Drink it in moderation,” lead researcher Charles Bamforth of the University of California, Davis, told LiveScience. “It is contributing silicon (and more) to your good health.”

Bamforth and his colleague Troy Casey, both of the university’s Department of Food Science and Technology, detail their findings in the February issue of the Journal of the Science of Food and Agriculture.

The silicon levels of beer types, on average:

• India Pale Ale (IPA): 41.2 mg/L
• Ales: 32.8 mg/L
• Pale Ale: 36.5 mg/L
• Sorghum: 27.3 mg/L
• Lagers: 23.7 mg/L
• Wheat: 18.9 mg/L
• Light lagers: 17.2 mg/L
• Non Alcoholic: 16.3 mg/L

Their research showed the malting process didn’t affect barley’s silicon content, which is mostly in the grain’s husk. However, pale-colored malts had more silicon than the darker products, such as the chocolate, roasted barley and black malt, which all have substantial roasting. The scientists aren’t sure why these darker malts have less silicon than other malts.

Hops were the stars of the beer ingredients, showing as much as four times more silicon than was found in malt. The downside: Hops make up a much smaller portion of beer compared with grain. Some beers, such as IPAs are hoppier, while wheat beers tend to have fewer hops than other brews, the researchers say.

“Beers containing high levels of malted barley and hops are richest in silicon,” Bamforth said. “Wheat contains less silicon than barley because it is the husk of the barley that is rich in this element. While most of the silicon remains in the husk during brewing, significant quantities of silicon nonetheless are extracted into wort and much of this survives into beer.”

(Wort is the sweet liquid that comes from mashing the grains and eventually becomes beer.)

Got beer?

While the researchers are not recommending gulping beer to meet your silicon intake needs, their study does add to others on the potential health benefits of this cold beverage.

The type of silicon in beer, called orthosilicic acid, has a 50 percent bioavailability, meaning that much is available for use in the body. Some foods, like bananas are rich in silicon but only 5 percent is bioavailable. This soluble form of silica found in beer could be important for the growth and development of bone and connective tissue, according to the National Institutes of Health.

Past research has suggested that moderate beer consumption may help fight osteoperosis, a disease characterized by low bone mass and deterioration of bone tissue.

Another past study involving nearly 1,700 women reported last year in the journal Nutrition showed participants who were light to moderate beer drinkers had much better bone density than non-drinkers. The researchers suggested the beer’s plant hormones, not the alcohol, could be responsible for the bone boost.

Article Source

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Additional Beer Facts:

Beer has no cholesterol or fat in comparison with milk, considerably less sodium and more fibre – all of which reduce the risk of heart disease.

In addition, a glass of beer each day cuts the risk of kidney stones and contains substances that can fight cancers.

Beer is also an important source of silicon and this increases bone strength and reduces the risk of bone decay and osteoporosis.

The South Florida Beer Blog (SFBB) has broken the news that The Bruery’s beers are headed to South Florida.  I’d heard rumblings that FreshBeer was bringing them on board but had been sworn to secrecy. It’s out now and we should all rejoice. I only know the Bruery through reputation, I’ve never had the pleasure, but I can tell you right now I will be on the hunt for their 2 Turtle Doves (Belgian Strong Dark Ale), Papier (Old Ale) and Saison de Lente.

I hope someone launches with a food pairing dinner.  If the Bruery lives up to their rep, their rich and complex beers would be a perfect fit for such an event.

Here we are!  After an unexpected seasonal sabbatical, we’re back to fill you in on an upcoming event you probably totally know about!

The Jupiter Craft Brewers Festival takes place next weekend – January 29-30th.  Last year was a total blast and I’m sure this year will be more of the same.  Looks like they went and got themselves a bigger venue at Roger Dean Stadium which is a wise move judging from the amount of people that showed up last year.

The event is split into two days: Friday night is the Field of Beers which will have delicious food and beer pairings. Saturday is the main event with over 100 craft beers at your disposal.  Tickets are $30 at the door which gives you an unlimited number of refills in the tiny tiny tasting glass you get upon entry.

For more information, and a list of brewers, check out their website.  You can also check out this article from John Linn, who interviewed the Brewzzi brewmaster about the event.

See you at the fest!

Check out The Bowen Beer Bottle Band playing Do You Hear What I Hear?

It’s an amazing performance, but take a close look at the bottles and you’ll be even more impressed. I see a Brother Thelonious, a Chimay Grande Reserve and what might be a Sam Smith’s Oatmeal Stout. They clearly have talent and taste… our kind of people.

Happy Holidays