Big Breweries Moving to Small Towns

13th Aug 2014

Asheville, North Carolina has become one of the more talked about locations in the country when the topic is craft beer breweries. More and more companies outside of the state are expanding their operations to Asheville because of a friendly business environment and due to its informal reputation as the Napa Valley of beer. The advantage for the city is the additional revenue that comes in as a result of the expansion.

The brewery movement has expanded to towns outside of the city proper, and they are making adjustments, rolling out the welcome mat as well. Two large brewing companies, Oskar Blues and Sierra Nevada, are extending thank you messages to the local communities by importing barley via rail for the local breweries to use. This will result in a cost savings to many of the locals because their supply of barley usually is shipped by truck, a more expensive proposition.

To further benefit the local breweries, Sierra Nevada, Oskar Blues, and New Belgium have worked collaboratively and developed new beers for the craft market. Despite these newly found friendships, there is a part of the local brewing industry that is none-the-too-happy with the idea of bigger breweries invading what is perceived to me microbrewing territory. The entire idea of microbrewing is a limited supply of beer created by smaller breweries with small distribution channels. The entry of Sierra Nevada and Oskar Blues violates this distinction, according to some local brewers.

One key issue is that of water. It is what constitutes most of what is in beer, and can alter the taste significantly. In the case of Oskar Blues, they have established a laboratory of sorts – a taste testing facility where the North Carolina products are compared to its Colorado breweries. There were differences that were noticed in the taste, and it was discovered that the reason was the high chlorine content of the North Carolina water. Charcoal filtration systems were put in, and that solved the problem.

But the problem is the same for other breweries such as Sierra Nevada, which recognizes that part of the process is ensuring the quality and taste of the beer remains the same wherever it is made. What is notable is that while the case is being made for Asheville being a great location, particularly for West Coast brewers who can now market their product cheaply throughout the East Coast, the quality of the North Carolina water may be the biggest attraction.

The highlight seems to be not the fact that large breweries are moving to small towns, but that there is a limited supply of quality water that can be used in the manufacturing process of beer. It is an interesting mix of state and local politics, and the need for jobs and revenue in the smaller towns. Whether this is a win-win for all parties involved will wait until either the revenue or water dries up.

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