25.01.2016 Views

Berkshire Tr Commerce

February-2016-BTAC

February-2016-BTAC

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

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 />

NEW YEAR’S RESOLUTIONS FOR BUSINESSES<br />

THAT ACCEPT CREDIT CARDS<br />

FIND oUT HoW MUCH MoNeY YoU CAN SAVe:<br />

Get a free, no obligation analysis of your current charges.<br />

I can usually save businesses an average of 7% to 15%.<br />

leSSeN YoUr FINANCIAl lIABIlITY:<br />

Are you aware of the liability shift to you with the new chip<br />

cards? Do you need a new terminal that will accept both<br />

magnetic strip as well as chip cards?<br />

Make it simple,<br />

but significant.<br />

SHoP loCAl:<br />

<strong>Berkshire</strong> Merchant Services is a locally owned business<br />

and a member of both the <strong>Berkshire</strong> Chamber of<br />

<strong>Commerce</strong> and the Southern <strong>Berkshire</strong> Chamber.<br />

BERKSHIRE MERCHANT SERVICES<br />

don raiche • www.<strong>Berkshire</strong>merchantServices.com • 413-637-2100

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!