Brewing Up a Biz: Peg Leg’s

No, this isn’t spam.  It’s actually the prodigal-blogger signing on from way up north.  I haven’t headed into the hills on a vision quest and grown a bushy beard.

As you may recall, my entrepreneurial vision was that of commercial brewery start-up (or perhaps, “up-start”) and it still is.  Boy, I have so much to say and so little space (and time) in which to say it.   I feel like I’m living Plato’s allegory of the Cave or Logan’s Run (I’ve been outside and it’s real!).  Business started as Peg Leg’s restaurant here in Prince Rupert on July 1 to much fanfare.  Our friends and future friends from town packed the place.  Then we tore it all up.  See, it had been a restaurant before us (we kept the name Peg Leg’s), but it needed a severe face lift.  We did in three days what Restaurant Makeover does in seven. Got the place right down to the original old plank flooring (which was a gem of a discovery!), spread some paint, guzzled a few beers, and ignored all urge to sleep.

Our first day with the new menu, new staff, and new look was July 5th.  On that day, with patrons packed to the rafters, one of our line cooks went to the bathroom and didn’t return. Seriously. He walked out the back door. That’s when I learned the pressure-cooker method of making dough and cutting fish; and a bit about HR. I thought I had made a huge mistake. My life, at that moment, was ruined.

It has gotten much better, however. And through our love/hate relationship with the start-up, I know it is good. While sitting there last night, in fact, nursing a craft ale and listening to a talented artist do his rendition of “Hurt” on our mini stage, I looked around, noticed patrons truly enjoying our creation. I smiled. The summer has seen both Irena (my very patient better half) and I working to discover the “fine balance” between restaurant life, “other job” life, and real life.  It’s not been perfect, nor easy, but luckily, we set out expecting that; and that’s the glue. If there’s one tidbit of experience I can share with someone travelling down this crazy road, it’s this: set your expectations to INCLUDE imperfection and hiccups  — it’s the necessary buffer in the avoidance of failure.

On my down time, I have been busy pumping sparge to mash tun to kettle on my little Sabco pilot brewery, getting the feel for it. Soon, from barley, there will be goodness.  Unfortunately, another thing I have learned is that restaurants are expensive. As I continue to whittle down my start-up expenses, I’m squirrelling away funds for the brewing side of things.  Brewing has always been my “stage B” plan all along. And like you, I’m chomping at the bit.  Shockingly, however, I feel I’m relatively on track (for a two-beer roll-out in 2010).

Incidentally, congratulations to the boys “down the road” at Plan B Brewing in Smithers. They recently had their grand opening. A couple of weeks ago, I was fortunate enough to have shared a couple of pot stoppers of their brown. Nicely done fellas.  Expect a visit soon.

Cheers from the north,

~ Rod Daigle, Triple Island Brewing Company

Brewing Up a Biz: Real Estate

Ahhh, the increasingly oft ignored blog.  Well, this time, I have good reason, not that the winter sniffles & blahs were illegitimate, but this elixir is a bit more potent.  No longer must I speculate as to the “why’s” behind so many leaving corporate careers to seek endeavours of their own. Was it not having to answer to a boss, the freedom to make one’s own decisions, or, perhaps, potential for riches? Nope. I have discovered the true motivating factor which drives all start-up entrepreneurs:  sheer and unending terror.

You see, I (and by “I”, I certainly mean my girlfriend and I) have purchased a restaurant business; signed on the dotted line; fait accompli. Our realtor, and even a local merchant, had warned me long ago about the concept of “buyer’s remorse.”  So I had braced myself, but I was ill-prepared for the reality that goes along with such a commitment.  Questions and concerns which routinely pop into my head (usually at 3:00 or 4:00am) include, but are not limited to:

“What the hell am I doing?”

“What if no one comes?!”

“I’ll never make payroll!”

“I’m leaving a secure 18-year career and a regular pay cheque!  Have I gone insane?”

A little comfort, however: that same local merchant, a well-established music shop owner, assures me that this process is not only normal but critical. It keeps the fires going, so to speak. And, frankly, I’ve never been so motivated about anything in my life.

It’s been a couple of weeks since we bought the business, and we still have a number of weeks before opening (July), so I’m starting to accept this new reality.  I now have to wipe less sweat from my brow as I place $2,000 orders of beer and $4,000 orders of fish.

At the same time, my previously-mentioned girlfriend and I have started sneaking out to the movies or to a hockey game more often, as we both know that 1) we both need the stress relief and 2) the door will soon be slammed shut on “free time.” Sounds terrible, right?  Well, look at it this way: this restaurant will eventually become our brew pub.

As we go through the early stages of the learning curve that is the restaurant business world, we’re keeping our eyes on the prize.

~ Rod Daigle, Triple Island Brewing Company

Brewing Up a Biz: Money Hunting

I feel like the proverbial son returning to the blog after a trip to the top of the mountain.  Unfortunately, the “mountain,” in my case, was a trip to the doctor’s office to find out if this flu really was going to kill me. It was not the swine variety.  Doc assured me I would live.  (I really think they should start naming these animal viruses after their respective food groups, i.e. not avian flu but chicken soup flu; not swine flu but bacon flu—much more appetizing.)

So although I have been plugging along on “all things business,” thankfully, my illness did somewhat coincide with “the end of the business plan.” I had a chance to convalesce in peace, not that the business plan will ever be “finished,” per se. But there comes a point after weeks and months of sitting at the computer—working and re-working charts, facts, and figures (and, yes, a little BS, although I prefer “colourful motivational detail”)—when you say, “Hey, this thing just might get the job done.”  And by  “get the job done,” I mean “convince someone to give me money.”  Because in spite of all of my drive and desire to make the best beer EVER, the ugly truth of a lack of capital keeps rearing up.

Brewing Up a Biz: Doppelganger Decision

I had some key decisions to make. I decided to do two things at once: I would have to educate myself on the craft of making beer, as well as a bit about the business side of brewing simultaneously. First, I would have to teach myself to brew in order to determine whether I even liked performing the process. As sexy and exciting as researching a startup might be, once things eventually got rolling, I’d be a “beer-cook” on a day in, day out basis. So, were I to discover that I hated sanitizing equipment, couldn’t care less about the science behind yeast strains, my back couldn’t handle moderately heavy lifting, and I passed out working around hot kitchen elements, now was the time to realize it. As it turned out, I really enjoy all of the precision (and lack of precision) that these processes require. I find brewing in my home kitchen rather Zen-inducing.

The second key decision before me was that of approach. Would I open a small production brewery or a small brew pub? (Magnitude was never in question —  it was always going to be “go small or go home.”) At first, I just plain wanted a brewery. I thought I might be able to perfect recipes at home, then replicate them in a small brewery setting. Plus, I have a really cool pair of rubber boots to slosh around in. I would be able to walk into any local tavern or restaurant with my Corny kegs full of amazing (not to mention local) beer and owners would welcome me as the saviour they had been waiting for. Now, although this is still a dream I’m not quite ready to abandon, I’m relatively certain it wouldn’t work out just that way.

The big breweries are smart. They can’t legally command a monopoly, but they can dangle incentives in front of bar owners’ noses to encourage them to not let any other little kids play in the sandbox. (Not quite sure what — perhaps shiny beer ornaments for the Christmas tree, beer bangles, or the like — but I know they’re out there.) So, as the unknown small guy with kegs in the back of his pickup, it would be very difficult; not impossible, but difficult.

Although I knew even less about the restaurant business (save for the statistic that they often fail) than the brewing business, it wasn’t long before I saw the merits of a brew pub operation. As with most “business” decisions, this one, too, is a double-edged sword. I’ll talk about the pros and cons a little later.

An early key decision that I had to make was how to spend the very little cash I had thus far accumulated. Would I blow it on a small commercial brewery or would I spend it on some rather expensive brew training?  I only had enough coin to do one or the other. I did like the shiny high-tech mini-brewery. At that moment, I actually I had a childhood memory flash of an encyclopedia (pre-wiki) salesman sitting at our kitchen table, regaling my mother with the story of Abe Lincoln sharpening his axe for eight hours in order to cut down a tree in only one, or some such legend. So although I’m usually impulsive, and my credit card finger was itchy for the shiny tanks, I decided to go with the education.

Now, I don’t actually think that there is a “right” or a “wrong” choice. If I happened to live near a small craft brewery (which I did not) and I was able to convince them to allow me to apprentice with them on a weekly “wage-free” basis, I might have exercised this option and bought the brewery instead. But this didn’t exist for me. I believe I made the right choice or, at least, the best choice considering the factors affecting me at the time.

I enrolled in the “Concise Course of Brewing Technology” at the Siebel Institute of Technology in Chicago: neither an easy nor an inexpensive place to get to from Prince Rupert, BC. But in just two weeks, I learned a ton. I’d highly recommend the training they have to offer. They aren’t the only institution through which to engage in professional brewing studies (UC Davis and the American Brewers Guild are other options that I know of). But seeing as virtually every major professional brewery in the world employs someone who has been there, it’s not a bad choice.

The Siebel Institute was more than brew training. It also allowed me to sneak in through the backdoor of the “beer business” world. I was rubbing elbows (and clinking mugs) with a range of people: from those with zero experience (like myself and Rick, the crazy Australian) to advanced homebrewers, small- to large-scale professional craft brewers, up to and including a bottling manager from Heineken and three executives from Modelo, whom I mostly communicated with by smiling, nodding, and in whose direction I would raise the occasional mug.

Although very intimidating at first, the rank structure soon came down and we were all just “classmates” with a love of a common career path. This degree of camaraderie (and the clinking of glasses) helped reinforce the notion that I had chosen the right business world. Although it has become somewhat of a cliché, this industry really does seem to support each other, unlike others. Refreshingly, cooperation before competition seems to be the underlying mantra. I still call and e-mail some of these people and share both brewing and business questions and insights as we each progress at our respective stages.

I hope to one day drop in on Rick’s brewpub Down Under and I’d be glad to hoist a pint with him at mine on the shores of PR.

~ Rod Daigle, Triple Island Brewing Company

Brewing Up a Biz: Brew-U

HOW EXCITING!  Here I am, essentially doing my first “remote” blog (or is that technically an “on location”?)!  I’m currently in Chicago, about half way through the “Start Your Own Brewery” course at the Siebel Institute.  I had my third blog installment virtually complete, about to start talking about my past brewing education decisions, but I figured that could handle being back-burnered a bit, favouring instead to discuss being on the road for the biz.

This is my second trip here to Siebel, and I’m finding (as I did on previous Concise Brewing Tech course — more on that next week) the education both inspiring and extremely applicable. With the likes of Ray Daniels, Randy Mosher, and John Moffatt as presenters, I can’t complain about the lack of relevance to the industry. These guys helped define the craft brewing industry.

On a tangent note, I am, at this moment, being inspired by the top half of a 650ml Imperial Gemini Blended Unfiltered Ale by the Southern Tier Brewing Company of Lakewood, New York.  The reason I bought this particular bottle (aside from the reflective green background and space man on the bottle)?  The degree of detailed information provided on the label!  10.5abv.  22° Plato.  Malted white wheat.  Cara-pils malt.  Red wheat.  Kettle hops:  Columbus, Chinook, and Cascade. Aroma hops: Amarillo. Hop back: Styrian Golding. Dry hops: Amarillo, Cascade, Centennial, Chinook, and Columbus.  Virtually the temp and and time of boil is all that is missing!  In my opinion, this shows an attention to detail that respects the consumer.  I appreciate that.

As a Canadian, it almost chokes me to say this, but the US in general (and these days, Chicago specifically) really has it all over us when it comes to beer.  Go ahead, start typing up your hate mail now.  I can take it.  The quality here is outstanding, not to mention the creativity (in both brewing style and marketing). The selection is out of this world (not just the space man on the bottle; that reference was purely coincidental).  Not to take anything away from some of the amazing breweries we have up north (several Quebecois, BC, and Ontario breweries are coming to mind). But a trip through the aisles of any number of specialty “warehouses” (community liquour stores are more like a “Home Depot of spirits and brews” down here) is enough to silence any die-hard objectors of this view. There is swill and there is quality, but there certainly is choice. And that, in my opinion, is a driving element of the craft segment. It’s what scares the pants off of the macros.

The nice thing is it’s a collaborative business. As a relatively new micro owner/presenter stated today in class, “I’m not competing against the micro across town. I’m competing against  _____-________” (insert favourite conglomerate macro name here).  And I really believe that this outlook transits the border.  Great beer, techniques, and appreciation don’t need a passport.  I don’t feel a “north and south” or an “us vs. them” division (as in hockey, which, incidentally, we will always win hands down) in regards to craft brewing.  It’s simply an upper-case “US.”

Okay, enough touchy-feely.  The bottom half of the pint of Gemini is calling my name…

~ Rod Daigle, Triple Island Brewing Company

Brewing Up a Biz: ‘The’ Decision

Okay, so my intention of writing a bit once a week has manifested into writing every week and a half.  That’s pretty good for me, I figure.  As has been expected, things are getting hectic.  But let’s travel back in time a bit…

When all of this beer biz contemplation started, I had some key decisions to make.  About this:  I have come to realize that “key questions” don’t come one at a time in succession.  Rather, they are inextricably intertwined from the get go.  One question usually hinges on the answer to several others, each of which first requires the answer to six more.  Even to this day (I’d put myself about half-way to startup), this reality continues.  I’ve taught myself to deal with it and take good notes.

One decision I didn’t have to ponder, however, was that of becoming a brewer.  I knew I wanted to brew professionally.  Unlike any other entrepreneurial schemes I had ever mulled over, this one required no loss of sleep.  How I knew, I can’t really say, but I did know.  There was as much uncertainty in that decision as there might be stepping on a hornets’ nest and asking oneself.  “Hmmm, should I leave now?”  This degree of certainty was relieving and, in my opinion, necessary.

So, that being said, I wasn’t a brewer.  I had never even brewed a batch of homebrew up to this point!  I was (as many often claim), a long-time connoisseur of all things beer.  I had come to this self-proclaimed rank through years of experimentation and appreciation.  I wasn’t one to debate the merits with the guys of one brand of commercially-available lager over another.  I’d usually be the one saying, “So you liked that?  Here, then, try this.”  So the passion was there. But as I would further learn, I didn’t know the half (nor do I still) of all that most professional brewers had forgotten.

~ Rod Daigle, Triple Island Brewing Company

Brewing Up a Biz in Prince Rupert

It’s hard to cover the entire territory of B.C. single-handed in any great detail. Therefore, I’ve decided to invite those who are involved in our craft beer scene in some capacity to contribute to the B.C. Beer Blog about their particular niche or region. Here is my first guest blogger, Rod Daigle, who will be sharing with us his triumphs and travails as he slogs through the process of setting up a brewpub in Prince Rupert. I’m looking forward to following Rod’s progress and wish him all the best on this momentous journey.

I’m not particularly superstitious, but I have taken note that I’m starting my first “blogging bit” on Friday the 13th. Although it’s only the AM, nothing catastrophic has happened so far (I’m knocking on my wooden desk as I say that).

So I’ve been asked to provide running commentary on the processes involved in a rookie starting a brew pub from scratch. That it might be of interest to readers (although I suspect this interest might stem from a dark place — a “let’s watch a fish flop around on dry land” sort of place). But to be honest, so far, the process hasn’t been so bad (knocking desktop again).

I guess I’ll start at the beginning. For all intents and purposes, the “official” thought process of this enterprise started this past summer when I had much too much time on my hands (and much time to dream), working in a remote area of the northern Yukon; but actually it goes way back beyond that. It certainly goes back to my first entrepeneurial venture: “Komic Kountry” (yes, stylistically spelled with two “K’s”). That was a “library-style” comic book reading club in my parents’ garage (10 cents to read one; three for a quarter). I’d say I was about eight then. I’m 38 now.

The time in the middle, I feel, has been spent marking time. Not that I didn’t have other ideas over that 30-year span. On the contrary, the years of “business start-up reverie” (albeit with lack of action) has proven beneficial. I could always answer the majority of the “Ws.” The missing ingredient had always been the “what.”

When the idea sparked of professional brewing, I realized that I had an idea for which I would gladly pass up meals, exercise, sleep, and even sweet lovin’ (as I’m reminded by my girlfriend regularly). I’ve been researching, reading, studying, brewing, pecking away at my computer, and chatting on the phone about it ever since. Sounds terrible right? But really, it’s not. To me, this project has been akin to raw sugar to a sweet-tooth junkie. And as I go along, I’m realizing that all successful entrepreneurs before me (which I hope to one day join the ranks of) were all just as intense about what they were doing (and just as sleep-deprived) as I am with brewing. Otherwise, things just would not have worked out for them. Plain and simple. The great intentions would have fallen by the wayside.

As I continue with research, exploding stout bottles, skipped meals, and refusing offers of going to the movies — preferring instead to work on Pro Formas — I’m hoping that my girlfriend is still loving me from afar (knock on wood).

~ Rod Daigle, Triple Island Brewing Company

Prince Rupert Poised to Emerge from the ’70s

Many of you may not be old enough to recall the dark days of beer in BC. That was when the only choice one had was which lager you wanted to drink. Prohibition was so successful in destroying traditional brewing that it turned North America into a virtual beer monoculture. This was reflected in the common drinking ritual of going into a bar or pub and saying to the bartender, “Gimme a beer!” Even food recipes that used beer would list it in the ingredients as something like “1 cup beer.” (That still happens today, which goes to show we still haven’t fully come over from the dark side.)

I visited northern BC last year and found out they lie in the rainshadow of craft beer, still swilling macro lager. It sort of reminds me of the Japanese holdouts after the end of World War II. However, the time for surrender may gradually be approaching. A Prince Rupert resident has set his sights on opening a brewpub there this year.

Triple Island Brewing is the result of a Eureka! moment Rod Daigle had after he read Sam Calagione’s Brewing Up a Business. Always entrepreneurial, Daigle had struggled up to that time to find something he had a passion for. As he explains it,

I thought of the common threads in my life, looked around at my decor and wardrobe (beer t-shirts, beer mugs, beer coasters, brewery tour ticket stubs…), and realize[d] where my values lied (sic).

Of course, once you decide to start a brewery, what kind of operation are you going to open? Regional? Local? After working through visions of a four hectolitre copper-clad system, Daigle and his two business partners decided on a brewpub designed around a twin 38-litre Sabco Brew-Magic systems. It may take some time to convert the residents over to full-flavoured ales with character, so it seems sensible to start out modestly. There should be a growth plan in place in case business expands rapidly, but it’s not like there will be a lot of competition up there.

Daigle plans to launch with two beers — a blond ale and probably something hoppier. Several styles will follow; hopefully, he’ll introduce cask-conditioned ale at some point too. The pub menu will be beer-driven with the intention of having suitably paired appetizers, entrées, and desserts. The brewpub décor will emphasize the historical aspect of brewing and pay tribute to North American craft brewers.

Sounds like there will be a good excuse to visit Prince Rupert once Triple Island is open. Your luggage will be lighter — you won’t have to bring your own beer.