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by Angela Sciara «
"We brew root beer for the same reason we brew beer," says Tom
Mills, owner of Flying Goose Brew Pub, New London, N.H. "Its profitable, and we
can make it better than you can buy it."
The
Flying Goose is among brewpubs across the country that are finding a new profit center in
homemade soda. Any skilled brewer can make a great soda, and the process involves much the
same equipment as making beer. In addition while beer averages a 28-day production cycle,
root beer has a 24-hour turn-around time. And because sodas are non-alcoholic beverages,
theres no hassle with those pesky excise taxes or ATF regulations.
The
Flying Goose has brewed root beer and diet root beer since opening one and a half years
ago. "The root beer market is having its own spurt right now," Mills says.
"A lot of people are making their own root beer; its especially competitive in
the stores."
Handcrafted
sodas are a small but growing market segment nationally, accounting for $334 million in
sales in 1997, according to Beverage Marketing Corp.
In
addition to profit, the beauty of making soda lies in the enhanced image it brings to a
brewpub. It essentially allows the handcrafted concept to be marketed to a wider audience.
"We
are draft brewers," says Randy Wilson, brewmaster at Steamworks Brewery, Durango,
Colo. "The more craft-brewed items I can offer, the better. It actually helps build
my image. Its really quite a feat. We boast to our customers about it."
Along
with the marketing benefits, the profit level of soda makes it hard to resist, says Scott
Brown, brewmaster and partner of Flying Goose Brew Pub. "If someone came to me
tomorrow for advice on opening up a brewery, Id tell them to brew soda."
The
most attractive reason to brew soda? Profit. Brown says the Flying Goose makes the most
expensive recipe of root beer, using only real sugar and pure bourbon vanilla, and the
cost is 28 cents per gallon. The brewpub sells the old-fashioned root beer for $2.50 per
pint and $2 per glass.
"If
everything had that kind of mark-up, I wouldnt be driving an old pickup truck,"
says Brown.
Not
only does soda cost little to brew, but its novelty status lends itself to top pricing.
Steamworks Brewery prices a pint of its root beer 50 cents higher than the same serving of
Coca-Cola. "We consider our root beer a premium product," says Wilson. "And
we price it accordingly." With a pint of root beer costing Steamworks only 5 cents
and Coca-Cola costing 13 cents per pint, its easy to see which is considered the
beverage of choice among management.
Attracting Customers
Although
beer is considered an adult beverage, it doesnt follow that fresh-brewed soda is for
kids. "Our root-beer customers run the gamut," says Mills. "Mom, dad, kids,
grandparents, even our staff loves the stuff. Root beer is just widely accepted."
"Families,
college students, and business people alike all buy our soda," says Steamworks
Wilson. "Our homebrewed sodas make up 11 percent of all non-alcoholic beverage
sales."
The
Flying Goose Brew Pub reports even higher numbers, with its homebrewed root beer
accounting for almost 30 percent of all non-alcoholic beverage sales and 5 percent of
gross sales. "People go wild over it because its not a sweet root beer,"
says Brown. "We get local patrons and many tourists who say they havent had an
old-fashioned root beer like ours since childhood."
Opening Doors
Brewing
soda also presents many marketing opportunities, says Jack Callanan, general manager of
Sissons Restaurant and Brewery, Baltimore. Regional festivals, local carnivals, and
charity events are golden occasions to put your product in front of the public and
prospect new customers. Soda sails past political limitations and red tape that so often
surround beer.
"Our
Devins Ale root beer has been instrumental in opening doors we couldnt open
with beer," says Callanan. "The annual Artscape Festival had a contract among
five microbrewers with the same distributor," says Callanan. "I wasnt with
that distributor and wasnt allowed to bring my beer. So instead we showed up with
food and root beer and still attracted huge crowds of new customers." Now local
festivals call Sissons requesting its root beer along with its beer.
"Soda
is great for charity events," says Mills. "You can give away soda easily for
sponsored events or as gift prizes, but its hard to give away beer."
Not for Everyone
Not
all brewpub owners have had a good experience in the world of crafted sodas. Bruce
Raymond, general manager of The Pike Pub & Brewery, Seattle, says Pikes time
spent with soda was short-lived. The brewpub brewed its own ginger ale and root beer for
six months before finally calling it quits.
"We
wanted to focus on our award-winning beers," Raymond says. "Thomas Kemper is a
regional root beer brewer with strong brand recognition, so we serve it instead of trying
to compete with people who are in the business of crafting soda."
Raymond also cited time
constraints and problems with consistency and quality as factors in abandoning the soda
business. "Were just too busy with beer to mess with soda pop."
Marketing Ideas
To
help make serving your own soda worthwhile, here are a few tips to get you started.
Product
tie-ins are a great way to promote your product outside of the brewpub. Flying Goose Brew
Pub now markets its own root beer extract kits for the homebrewer. Each kit contains a jar
filled with enough extract mix to brew a five-gallon batch of the sweet sarsaparilla.
"Its very popular in homebrew shops," says Mills.
Capitalize
on local identification. Steamworks marketed a tasty peach soda using locally grown
peaches.
Promote
your root beer any way you can. Brag about it like you would your award-winning pale ale.
Steamworks even has a special tap tower adorned with a colorful root beer mug so patrons
can spot it easily when ordering. How about a root beer float featuring your custom-made
soda headlining the dessert menu? Or open happy hour to all customers by including pints
of discounted root beer.
Whatever
you do, dont skimp on quality, advises Brown. "Forget about the cost; just brew
a good product," he says. "Make your root beer robust and customers will buy it
because they cant get it in the store."
Pricing
Flying
Goose Brew Pub sells soda for $2.50 per pint and it costs 3.5 cents per pint to make. At
Sissons it sells for $2 per pint, and the cost to make it is 12 cents per pint. Steamworks
sells soda for $1.75 per pint and makes it for 5 cents a pint.
Start-up Costs
Initial
start-up costs are fairly minimal to begin brewing soda, says Brown. A used 200-gallon
tank with fittings costs about $2,200. Buy a tap line and youre set. Once you make
root beer, though, the vessel and draft lines are forever root beer. The nature of the
ingredients, such as mint, permeates the line, so it cant be used for beer. An
alternative is to make the soda in kegs (see "Pop Art").
Recipes
Root
beer is by far the style most commonly brewed at brewpubs. Cream sodas and ginger ales are
also popular. Some brewpubs try to make their own distinctive sodas, such as
Steamworks peach soda.
Recipes
vary from pub to pub, but there are the basics. Every root beer contains vanilla,
molasses, and mint. The rest is up to the brewer. Make yours bold and robust or sweet and
mild.
Despite
a few misgivings, the resounding opinion by these brewpub owners is brew soda.
"Youd be foolish not to," says Wilson. "When you look at the bottom
line, brewing soda makes all the sense in the world."
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