New Belgium confronts culture shift as brewery goes national – USA TODAY

Bottles move on the bottling line for packaging at New Belgium Brewing on Wednesday, May 31, 2017.(Photo: Austin Humphreys/The Coloradoan)

FORT COLLINS, Colo. Fat Tiremade it tothe backwoodsof Mainethis spring.

The arrival officially brought New Belgium Brewingto all 50 states.

Nationwide distribution is the latestaccomplishment in the company's26-year journey from a Fort Collins basementto its current status as the country's fourth largest craft brewery that sells nearly 1 million barrels a year.

New Belgium stafftoasted the national conquest at its recently renovated Fort Collins headquarters, which overlooksa grassy beer garden often filled with patrons playing yard games.

"For many of us older employees,it was an incredible experienceto take a relatively small brewery with a limited (beer lineup)nationwide," said outgoing brewmaster Peter Bouckaert, who joined New Belgium in 1996.

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The national footprint isa result ofnearly a decade of planning by theemployee-owned company. New Belgium, which currently employs784 people,has expanded far beyond Belgian-style beers, updated its packaging, andlaunched an Asheville, N.C.,brewery to more efficiently serve Eastern states.

The brewery's emergenceas a national company has contributed to a local culture shift as well.

"Thefurther away from home you get, the harder you have to work to make your brand relevant," said Bart Watson, the chief economist for the Brewers Association.

Alonzo Chunn loads trucks with completed beer orders at New Belgium Brewing on Wednesday, May 31, 2017.(Photo: Austin Humphreys/The Coloradoan)

While New Belgium dominates area liquor store sales,some locals prefer to drinkat the nearby Odell Brewing taproom. Odell, the country's 27th largest craft brewer, distributes to 14 states.

"It feels more local (at Odell)," said longtime resident and brewery patron Steve Foreman, while wearing a New Belgium hat. "New Belgium makes great beer, but theywent across the country first. Odell stayed local longer."

New Belgium redesigned its beer lineup in 2017 to solidify its national standing. They introduced arebrandedhoppy beerline and a new golden alestocked next to Mexican imports. A second Fat Tire flavor is due this summer. Other major additions are promised soon.

All organizations evolve just like biological systems evolve, said co-founder Kim Jordan, who serves as executive chair of the board of directors.

And New Belgium must move forward without two key people.

Bouckaertwill exitat the end of the yearafter 21 years as brewmaster. Former CEO Christine Perichstepped down in November 2016after 17 years with the company.

Both are pursuing new beverage ventures.Bouckaert is set to launch a smaller Fort Collins brewery and Perich is now the CEO of Denverscold-pressed watermelon juice company with ties to Beyonce called WTRMLN WTR.

"The hardest thing is leaving the passion at New Belgium," Bouckaert said. "Im really looking forward to the simplicity of (the new venture). Brewing on a small system ... and making beers that you dont have to reproduce.

For all of its national focus, New Belgium has also invested more than $10 million into Fort Collins projects the past two years.

There's thenew beer garden, offices anda doctor's office for free employee use.There will be a New Belgium porchat the Colorado State University on-campus football stadium that opens this fall. And the brewery haspartnered with CSUto create a lager beer.

The brewery's Fort Collins location has emerged as a regional tourist destination, hosting about 200,000 people on tours a year. Fort Collins gets New Belgium beers first and the breweryhas taproom exclusives.

"Healthy competition raises the bar, and it has pushed New Belgium to be innovative and adapt," said Mat Dinsmore, who has run Wilbur's Total Beverage in Fort Collins since 2000. "Not only have (New Belgium)beers changed, but the company has itself."

Breaking from Belgium influences

A Belgian biking trip first inspired the concept of New Belgium.

Jordan started the brewery withthen-husband Jeff Lebesch as a side job in 1991 Jordan was a social worker and Lebesch an electrical engineer.

Belgian-style beers were rare in the U.S. at the time.The industry had almost-exclusively German and English influences. And U.S. craft brewers were making a combined 330,000 barrels a year in 1991.

New Belgium's initial plan was to serve liquor stores with 22-ounce glassbottlessince Fort Collins' other craft breweries at the time Old Colorado Brewing, CooperSmith's Brewing and Odell Brewing were exclusively supplying restaurants and bars.

New Belgium debuted with Fat Tire and Abbey, both still flagship beerstoday.

"We were babies when it came to understanding what would happen next," Jordan said.

The brewery reported $150,000 in revenue during its first year. New Belgium moved out of the basement after 14 months, selling the original brewing equipment for cash.

They ventured into other states, but initiallypulled back from some locations around 1995.

"There was no strategy other than that we were asked," Jordan said. "Pretty soon we rethought about how we were doing things."

New Belgiumintroduced Belgian-style sour beers to Americain 2000.Then the brewery broke from its exclusive Belgian guidelineswith the release of Ranger IPA in 2010.

The decision took some soul searching to be sure, Jordan said. Every craft brewer is always trying to figure out the optimal portfolio configuration.

Empty cans await their turn on the canning line at New Belgium Brewing on Wednesday, May 31, 2017.(Photo: Austin Humphreys/The Coloradoan)

The brewery updated its packaging with a more national approach in 2014 ditching hand paintings by Jordans old Fort Collins neighbor Ann Fitch for logos created by San Francisco firmHatch Design.

The decision to expand beyond the Belgian sphere was critical to the brewery's national expansion.IPA beers, including New Belgium's 2016 release Citradelic along with the new Voodoo Ranger series, now represent the companys largest sales growth.

Forbes estimated New Belgium's annual revenue wasaround $225 million in 2016.

"It is cool to see them grow and do more types of beer," saidTodd Gates, a longtime patron of area craft breweries. "But there's also drawbacks, like if you want to go out and grab a beer at the brewery on a Friday night."

New Belgium's next wave

Maine welcomed New Belgium in April with 32 launch events. Vermont, New Hampshire and Oklahoma welcomed the brewery in similar fashion earlier in the year.

People already knew about a lot of their beers, said Josh Blackdar of Maine's National DistributorsInc. There was a lot of anticipation, even though it had never been here before.

New Belgiumjoins Longmonts Oskar Blues, Boston Beer Co.s Sam Adams, Californias Sierra Nevada and Oregons Rogue ales among a handful ofcraft brands that have gone completely national with distribution.

New Belgium's seasonal Pumpkick beer is served in the Fort Collins tasting room in 2016.(Photo: Coloradoan library)

A fewothers among the more than 5,000 U.S. breweries areinching closer to national distinction. But Watsonsaid some major craft breweries are taking the opposite approach pulling back frommarkets to focus on regional efforts.

"New Belgium has beers that play in every arena," Blackdar said. "As a distributor, you are always looking to add a brand with their portfolio and reputation."

For example, Dayblazer Easygoing Ale launched this year. It's stocked in liquor stores next to major Mexican imports. Developing Dayblazer went through 39 names and 16 package designs because of trademark and marketing challenges. Lighter, sessionbeers have recently trended throughout the craft beer industry.

Theres also a rebranded Voodoo Ranger hoppy beer line thats up 48 percent in sales compared to its predecessors last year.

A Colorado-only golden lagercalled Old Aggie will debut in July in partnership with CSU.

We had gaps in our portfolio, said Ruairi Twomey, New Belgiums vice president of marketingwho was hired away from the Guinness and Smirnoff Ice parent company by Perich last year.

A second Fat Tire flavor is due in August aBelgian White wheat beer with Seville orange peel. The beer style is similar to popular brandsBlue Moon and Shock Top.

The best brands always go back and recruit the next generation, Twomey said. Fat Tire was a true icon of craft beer. But todays 24-year-old might not know that.

Twomey also promises two more big beerswill be addednext year.

We are only getting warmed up, he said.

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New beer flavors give New Belgium a better arsenal against stiffnational competition. Of the country's five largest craft brewers, New Belgium was the only one to increase sales last year.

Along with a rapidly growing American beer scene, Budweiser parent company Anheuser-Busch InBev is investing millions into its acquired craft breweries. AB InBev, the worlds largest brewer, also has distinct advantages since it owns multiple distribution channels throughout the country.

Spreading resources and production to an Asheville brewery wasessential to New Belgiums nationwide viability. Sierra Nevada and Oskar Blues are other western-based brewers thathave addedeastern breweries.

Last year, Asheville produced about 20 percent of New Belgiums total beer. The brewery has increased production each month since opening and currently makes six beers that are currently in the market they are made with the same recipes but more air conditioning is required at theAsheville facility because of higher humidity.

New Belgium has about 130 Asheville employeeswho regularly video conference with Fort Collins staff.

The number of surprises we face out here are going down, said Asheville general manager Jay Richardson, a longtime New Belgium employee who moved from Fort Collins for the job.

(The culture) feels like its own thing, but also feels like Fort Collins at the same time.

Asheville hosted its first Tour de Fat in May a costumed bike parade hosted by the brewery first made famous in Fort Collins.

"They didn't dress up as much as we see in Fort Collins," Jordan said. "But they will get the hang of it."

New Belgium is now addingnew traditions to old ones. The brewery's next evolution will include a new CEO and brewmaster.

Follow Jacob Laxenon Twitter: @jacoblaxen

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New Belgium confronts culture shift as brewery goes national - USA TODAY