Sacramento brewers tap growing craft beer market

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Sacramento brewers tap growing craft beer market

The aroma of hops and malt soon will replace the smells of fresh paint and furniture stain at Track 7 Brewing Co. in an industrial area near Sacramento City College.

Today, the microbrewery makes its debut with six beers and a public tasting room, and owners Geoff Scott and Ryan Graham hope their enterprise then will smell of success. They’re banking on the rising popularity of craft breweries, the small, independently owned producers of beer that has an artisanal touch.

“Sacramento has a young beer culture and a ton of great brewers and enthusiasts,” Scott said. “There’s a lot of great brewpubs, but not a true production facility or a tasting room focused solely on beer.”

While Sacramento’s restaurant scene has been rocked by the recession, the craft beer segment continues rising. Along with Track 7, other new breweries on tap for 2012 include New Helvetia Brewing Co. at 18th and Broadway, American River Brewing in Rancho Cordova, and Berryessa Brewing Co. in Winters.

As shown in successful beer cities such as Portland, Ore., and San Diego, craft breweries thrive when they have critical mass and allow consumers to interact through tours and tastings with staff, brewery experts say. The owners don’t get caught up in being a restaurant. Instead, like winery staff, they focus on tasting with the public.

That’s exactly what the new crop of craft brewers has planned. Already, tours are developing around fledgling tasting rooms in the region.

“The secret to any brewery’s success is being able to get their beer to the consumer,” said Charlie Bamforth, Anheuser-Busch Endowed Professor of Malting and Brewing Sciences at the University of California, Davis. “The simplest option is the brewpub concept. One of the most expensive components of beer is the bottling and packaging. When you don’t have to do that packaging, it’s economically advantageous.”

The region’s newest start-ups are entering the market just as beer brands and brewpubs are experiencing a renaissance here. Already beer lovers have seen the debut of Loomis Basin Brewing Co.; Knee Deep Brewing Co.; and Ruhstaller, a brand that highlights Sacramento’s storied history.

“Beer definitely has a momentum,” said Dave Gull, owner of New Helvetia Brewing, which is expected to open in the spring. “If you follow the beer industry, there’s expansion and growth in craft beer while national brands are stagnating. That translates as an opportunity for people to jump in and start a craft brewery.”

Success brews

The retail craft brewing segment grew by 12 percent in 2010, compared with 2009, according to the Brewers Association, a Colorado-based trade association for craft breweries. In the first half of this year, sales were up 15 percent over the same period a year ago.

By contrast, overall beer sales in the United States ? factoring in the major domestic and imported brands ? were down 1 percent in 2010.

Craft beers make up a little less than 5 percent of overall beer sales in the United States, according to the Brewers Association.

“Americans love variety, but before 1970, there wasn’t much in this country’s beer category,” said Julia Herz, craft beer program director for the Brewers Association. “At the last Great American Beer Festival, there were 133 categories. Craft beer made by small producers is also perceived as an affordable luxury.”

While fewer than 500 breweries operated domestically in 1990, that number shot to 1,753 by 2010, the highest number since the late 1800s.

Local brewers champion the reasonable price points and overall accessibility of beer, especially when compared with wine.

“You can buy the best beer in the world for about $10 a bottle,” said Peter Hoey, the Sacramento brewmaster behind Ruhstaller. “That sounds like a lot for someone who’s used to paying $8 for a 38-pack on sale, but we’re talking some of the most interesting beverages in the world being made for a reasonable price. There’s been a sea change of people realizing that beer isn’t just to be dropped into red cups at barbecues and for tailgating.”

Sacramento’s history

Joe Dutra travels to Northern California microbreweries and samples the latest craft brews at Samuel Horne’s Tavern in Folsom and Pangaea Two Brews Cafe in Sacramento.

“I’m seeing more of my friends getting into the crafts,” said Dutra. “You can taste the difference. There’s just so much more complexity to those beers compared to a Budweiser.”

That’s not to say the local beer industry has been completely recession-proof. Brewpubs that closed over the last couple years include Sacramento Brewing Co., Brew It Up and Elk Grove Brewery and Restaurant.

While the craft beer scene remains strong in such cities as San Diego and Portland, which is home to 43 breweries, Sacramento has its own rich beer history. According to Ed Carroll, author of “Sacramento’s Breweries,” the city was home to more than a dozen breweries, including Sacramento Brewing Co. and Buffalo Brewery, from the mid- to late 1800s. (The Sacramento Bee building housed the former Buffalo Brewery.)

Founded by Capt. Frank Ruhstaller, a Swiss immigrant, Sacramento Brewing Co. and Buffalo Brewery sourced hops and barley from around the region and then shipped beers nationally via Sacramento’s railroads and water shipping lines.

“The only city with that many (breweries) was San Francisco,” said Carroll. “Buffalo Brewery was one of the biggest on the West Coast. Here, there was a big German population, good hops and barley, and a (thirsty) populous.”

Bamforth said he believes that Sacramento is poised for a comeback ? and could become even stronger if such raw materials as hops were grown here again.

“Sacramento has always been a beer town, and that message was lost for the longest time,” Bamforth said.

“What I hope will happen is people will embrace this growth of local craft beer, and that just might inspire people to re-establish this region for some of its traditional raw materials.”

Some of Sacramento’s newest beer entrepreneurs are tapping into the city’s old beer culture as part of their branding. New Helvetia Brewing Co. borrows John Sutter’s name for the settlement that would become Sacramento. It plans on releasing a “Buffalo” line of beer. Though the Buffalo Beer brand was relaunched and sold in the mid-1970s, the naming rights now belong to a Japanese company.

Billed as “Sacramento’s beer,” the Ruhstaller brand is named after the city’s godfather of beer and sources the bulk of its ingredients from Northern California. The beer is brewed at three facilities around Sacramento, and is the brainchild of J.E. Paino, whose background is in business rather than brewing.

“The consumer is ready for craft and smaller beers,” Paino said. “What we try and do is communicate great beer, great ingredients and using local products when possible.”

Sacramento’s beer culture continues to blossom. The third annual Sacramento Beer Week runs from Feb. 24 through March 4 and will feature more than 400 events around the region, including the Capital Beerfest on Feb. 25 at Cal Expo.

Beer also remains core to many local business plans, including midtown’s River Rock Tap House, which switched to a beer-focused format after launching originally as Tex Mex Bar Grill.

Back at Track 7, bags of grain sit on standby while beers ferment in three tanks, and can produce 14 to 15 kegs in each batch. Soon, the owners are expecting the crowds ? and increased competition from other new microbreweries.

“There’s definitely enough business to go around,” Scott said. “The more breweries, the better.”

All About Beer with Bill & Sheila

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