Berkshire Tr Commerce
February-2016-BTAC
February-2016-BTAC
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DIF<br />
February 2016 berkshire <strong>Tr</strong>ade & CommerCe<br />
3<br />
news & notes from the region<br />
first few years of operation have been an<br />
exercise in careful and deliberate growth.<br />
The brewery is based in an 8,500-squarefoot<br />
commercial facility just south of Sheffield<br />
town center that the Heatons purchased<br />
for $309,000 in late 2011. It took almost a<br />
full year after that before production began<br />
and Big Elm products started showing up in<br />
area taverns and package stores.<br />
The early success and local popularity of<br />
Big Elm products can be attributed in good<br />
part to the local following and reputation for<br />
good beers and ales that<br />
the Heatons had established<br />
with Pittsfield<br />
Brew Works, a microbrewery<br />
and restaurant<br />
they operated for five years. They closed that<br />
business in May 2010 after deciding that their<br />
long-term interests did not include running a<br />
restaurant, but instead centered on establishing<br />
a full-fledged craft brewery.<br />
In late 2012 Big Elm debuted with three<br />
core products – a farmhouse ale, IPA, and<br />
stout – that were available in 12-ounce-can<br />
six-packs and in kegs for area taverns.<br />
The company soon added a fourth regular<br />
product, an American-style lager, and also<br />
began brewing seasonal ales that were available<br />
on a limited basis in kegs and 22-ounce<br />
bottles.<br />
An opportunity for added exposure came<br />
about in 2013 when the Red Lion Inn’s executive<br />
chef Brian Alberg approached Big Elm<br />
about producing a signature product for the<br />
iconic Stockbridge inn’s dining room and<br />
tavern. “We said, ‘That sounds like a great<br />
idea,’” recalled Heaton.<br />
What they came up with is an English-style<br />
brew known as Lion’s Ale, which immediately<br />
was a hit with customers at the inn’s<br />
dining room and Lion’s Den tavern.<br />
“It sells like gangbusters there,” said<br />
Heaton, noting that the Red Lion is Big Elm’s<br />
largest draft account.<br />
The popularity of Lion’s Ale also propelled<br />
the product onto package store shelves. “This<br />
“The distributor takes<br />
their cut, but they take a<br />
lot off our plate.”<br />
past year, we started doing 16-ounce cans for<br />
Lion’s Ale,” Heaton said.<br />
This packaging option was also adapted for<br />
Big Elm’s other seasonal ales as a replacement<br />
for the 22-ounce bottles. “We stopped<br />
doing the bottles because it was too labor<br />
intensive,” Heaton said, noting that this is<br />
a trend taking shape throughout the craft<br />
brewing industry.<br />
This change was made possible with the<br />
development of more affordable ways to<br />
purchase aluminum cans for specialty products.<br />
Heaton explained<br />
that Big Elm connected<br />
with a company in Colorado<br />
that specializes<br />
in producing shrinkwrap<br />
sleeves for use with generic 12- and<br />
16-ounce aluminum cans. This means that<br />
labeling can readily be done for a wider range<br />
of products in much smaller orders than is<br />
the case with printed aluminum cans (such<br />
as those used for Big Elm’s core products).<br />
As a result, Big Elm has been rolling out new<br />
products, such as its Fat Boy Double IPA, to<br />
area stores in 16-ounce four-packs.<br />
Heaton also noted that both the four-packs<br />
and traditional six-packs now utilize a new<br />
more environmentally friendly packaging<br />
product. “We’re no longer using the six-pack<br />
rings,” he said, explaining that they have<br />
been replaced by a recyclable plastic cap-like<br />
holder produced by Oregon-based Pak-Tech.<br />
“For us, the environmental benefits outweigh<br />
the added cost.”<br />
Big Elm has also had a good response<br />
to another packaging option – the 12-pack<br />
sampler case, which includes three cans of<br />
each of the company’s four core products.<br />
While Big Elm has always supplied kegs<br />
to area taverns, Heaton said that the sale of<br />
its canned products is by far the larger part of<br />
its operations. “Package stores are our bread<br />
and butter,” he said, noting that they account<br />
for about 80 percent of sales.<br />
“Draft is sort of a loss leader for us,” he<br />
added. “Dealing with kegs is more capital<br />
intensive for us. The bars love it, though,<br />
because their margins are pretty good.”<br />
With wider distribution of these and other<br />
Big Elm products, Heaton said the company<br />
is looking to at least double the volume<br />
of beer it produces over the coming year.<br />
“We’re at 1,800 gallons a week right now,<br />
and we’re aiming for 3,600 gallons a week<br />
by next year,” he said. “That’s going to be<br />
easily attainable.”<br />
The company’s staff is also likely to increase<br />
as part of this process, he said. Big Elm<br />
currently has four full-time and four part-time<br />
employees (including the four co-owners).<br />
“We’re going to need to add people at some<br />
point,” said Heaton.<br />
He added that the Sheffield facility is large<br />
enough to handle future expansion of brewing<br />
operations. That facility also houses a<br />
brewery retail shop that is open daily (except<br />
Sunday) from 9 a.m. to 4 p.m. “Our retail store<br />
is our biggest dollar account,” said Heaton,<br />
noting that direct sales to customers there are<br />
more profitable for the company.<br />
Big Elm also conducts free brewery tours<br />
and beer sampling on Saturdays from noon<br />
to 4 p.m. For information, call 413-229-2348<br />
or visit bigelmbeer.com.◆<br />
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