Brewbound 2022 Craft Brewery of the Year: Fiddlehead Brewing

Speaker 1 [00:06] Hi, it's Brewbo managing editor Jess Infante, and I am back with Matt Cohen, owner of Shelburne, Vermont's Fiddlehead Brewing, who has a growth story like we haven't seen in craft beer in quite some time lately. Matt, how are you today?

Speaker 2 [00:19] Doing fantastic. Thanks for having us on.

Speaker 1 [00:21] Oh, we're so glad, and we are so happy to be able to, uh, name you guys, uh, this year's Craft Brewery of the Year in our annual Brewbound Award. Awards because, like I said, we really haven't seen the likes of, of growth like this in a while. So, um, Fiddle hadn't had an incredible 2021. You hit 51,666 barrels. Uh, in 2021, that was 83% growth, uh, making you the 49th largest craft brewer in the country, uh, all right here up the road from me in Vermont. So, I know you just shared with me a little bit about what 2022 looks like, but why don't you, uh, tell the folks at home how this year has shaped up for you guys?

Speaker 2 [00:58] Absolutely. Well, we've, uh, continued on with our very simplified playbook, which is to sell draft IPA. Um, we've launched a couple of new packages. We have a 12 pack that's been getting wide distribution this year, and as a result, uh, we are 55% over those numbers that you just said. Uh, for 2022. So we're really excited. We're going to, uh, continue to climb our way up that top 50 list, and, uh, Some really, really fun things that are happening here in Shelburne.

Speaker 1 [01:29] Now one thing that's really interesting about Fiddlehead is that you guys are adamant on a cold supply chain process. What does it take to make that happen, and what are the benefits? But what are the challenges? Cause I'm sure there's got to be quite a few.

Speaker 2 [01:41] Oh, there are so many challenges. Uh, it's been incredibly difficult, uh, to monitor, but it's, uh, something that is really, uh, of the utmost importance for our company. I believe that fresh beer sells beer. And as a result, we've demanded that uh our partners um only store our product cold, um, which, as you mentioned, does present a whole host of, of challenges. Um, we have representation in just about every one of our markets that we're in. So, our people are not policing this, but they're spending a lot of time going around talking to accounts, um, making sure that the beer is stored cold. If it's not, we're trying to work with that retailer to make sure that in the future our beer is stored, uh, properly. And you know whether or not the consumer fully understands what's going on, they know that every time they reach for a fiddlehead IPA, that it's going to be as fresh as possible. We look at our day codes out in the market. We spend a lot of time monitoring our distributors' inventory. We're very different in the sense that we, we ask that our distributors only carry about 15 days' worth of inventory at any given time, and that makes sure that our beer is the freshest in the market. It's turning. And ideally when we, when our distributor goes to an account, if there's a product left over from their, uh, the prior drop, there, you know, we, we instruct them to skip that, that delivery that day and to let that beer sell through so that it's not getting old in the account. Um, and it is, uh, as you mentioned, it is a, it is a challenge, but it's something that we're really not willing to compromise on. And does it affect our business adversely? Absolutely. I think that we can probably, I know we can sell a lot more beer and and distribute it with our through our distribution network in places like supermarkets where those end caps really do sell a lot of product, but, you know, it also is a place for for beer to get, get warm and get old, and the types of beers that we're producing here at Fiddlehead are and the types of beers that that that craft consumers today really love to enjoy. are really hop uh dependent and we're really in order to maintain that that beautiful hop aroma and hop flavor and hop taste. The beer needs to be stored cold. There's just really no other way to do it. And you know, the rage today is, you know, the hazy IPA, and our beer would, you know, fall under that category. It is an unfiltered product where we, for us, we have a known quantity of yeast that's being carried over into our final product, but that means the product's alive when it leaves here. So we have very little control. But all we can do is try to educate our consumer and continue to, to wave the flag that cold beer is great beer. And I hope that, uh, you know, I hope that other people take up this challenge. There's a few people in our state that are, that are along with us leading the march, and I hope more manufacturers continue to try to double down on on demanding cold storage because I think as an industry. We'll be better off in the future.

Speaker 1 [04:44] Now, you and I connected, I want to say back in like the summer of 2020, and we talked about the incredible growth that you guys were finding with cans, but, you know, you almost begrudgingly pivoted to, to packaging Fiddle Fiddlehead IPA during the pandemic. But when you look back now, like, do you wish you had done that sooner?

Speaker 2 [05:00] No, no, I really don't. I actually, I wish I never did it, to be honest with you. I, I do. I, uh, it is a uh tremendous. Uh, a revenue generator now for us. It's, it's, um, we're, we've now fallen, um, prior to the pandemic, uh, as I mentioned before, we were 85% of our business was draft, and then, um, that vanished overnight, and I was really left with the decision of what to do and we were able to uh Put our product into cans. We were able to secure our supply of cans, and then we had to go out and now, um, because this is a brand new total brand new avenue for us, we had to get these placements in the middle of a pandemic, and that's really a testament to the incredible team that I work with, uh, as well as the reputation that we hold. Um, so we were able to get forced into a lot of these sets in the supermarkets. Um, we ended up, uh, selling as much beer, uh, year over year and, uh, dollar over dollar. We actually ended up, uh, doing quite well, uh, during the pandemic year. So, um, for us, it, it was a necessary, uh, part of our business, but I always still do feel that draft is really the way that our beer shines. Uh, I am very, uh, concerned about quality control. That is the, uh, most important thing, uh, that really guides us every day in our business. And, uh, I just feel that with draft there's, there, there, uh, it's a much more secure, uh, channel, if you will, with the, you know, the beer, uh, is always being kept cold, um, you know, there is the occasional account that, that, that doesn't, but for the most part, that beer is, is kept cold from the time it's packaged to the time it's being consumed. Uh, and it's just, uh, again, for the types of beers we're making, it's just the best way to, uh, to show, showcase that, that style. So, um, yes, cans are, are now part of our business. It's a, a necessary part of our business. We, we weren't willing or, uh, we weren't going to turn our back on the people that helped us during the pandemic get it, get through. Uh, I couldn't say to the supermarkets, OK, now guess what? No more cans. We're back to draft. No, uh, we developed, uh, and then, you know, we actually opened up, uh, And grew our business to a whole, a whole new consumer, if you will. I mean, there was, you know, definitely there's, it wasn't lost on me that, you know, when we were draft only, there, there are a large portion of the population that that don't really get out to bars and restaurants very often, so they weren't having an opportunity to, to, uh, to get and to understand and to learn to love our product, so. This was, this is a way for to really reach a whole new audience, and we're here to make sure that that experience is as best as possible and um again, we, we keep, we keep a very strict standards on. On all of our cans and the, the how much the cold storage that we demand as well as the, the amount of dissolved oxygen that we will allow to pick up during process and uh we dump a lot of beer here proudly because uh if it is not A plus, it doesn't leave our facility.

Speaker 1 [08:05] So important. Now, one thing that's always stood out to me about you guys is your philanthropic RMT mastermind. You've raised more than $400,000 for kid-centric causes, including children's hospitals, local branches of the Make A Wish Foundation, and organizations that help kids attend summer camps. Tell us a little bit about this program and what inspired you to start it.

Speaker 2 [08:24] Sure. Um, well, one of the best parts about owning and operating a business in a community is having the ability to give back to that community. Um, Unfortunately, uh, I have a son who's 16 years old, and when he was born, he was born with a lot of complications, and we spent the 1st 9 months of his life down in Boston Children's Hospital, and, uh, it was, it was touch and go at many times, and, uh, he, he continues to have a lot, need a lot of services to this day and has a lot of medical, uh, needs that, that need attention. And so for us, uh, as a family, we are a family run business. Uh, it's my, my wife and myself. We own the, the, the brewery, and, uh, we always wanted to have an opportunity and a way to give back. So I thought of creating an incredible beer called Mastermind and then taking 25% of sales. So that's an incredible amount of, of, of revenue that we're able to generate. So we take 25% of sales and we donate that to, uh, we created a fund now. That has the ability to, uh, we're trying to give back into the communities in which the mastermind is being sold. So in your market, for instance, that money would go to a different organization that's meaningful to the people of Massachusetts versus, you know, in Vermont, we have identified a couple of other charities that we work with here, but yes, every market it's the ability to try to tie those people in and get people excited about uh. The beer, but also about giving back to the kids. So, for us, um, we see it no other way of, of really running a business. It's, it's, you have to give back and you've got to give back to your community, and, uh, this is an incredible way to do it.

Speaker 1 [10:04] That's wonderful. Now, one last question before I let you go. And I've referenced this a couple of times now, but that Fiddlehead is able to achieve organic growth with the beer-only portfolio is rare. What wisdom would you offer fellow brewers who are chasing similar goals?

Speaker 2 [10:18] Sure, um, well, I've, uh, my history goes back many years. I've put, uh, I've dedicated my entire life to craft beer and, uh, more importantly, Vermont craft beer, um. I got into this business wanting to be in the position I'm at, but I knew that, uh, I needed to, uh, I had a lot to learn. So, um, you know, I, I always encourage people to, uh, you gotta learn the business inside and out. Uh, I've worked at another, a couple of other successful Vermont breweries where I learned a lot of what to do. I also learned a lot of what not to do along the way, but these are valuable, important lessons. Um, and what I say to people is, uh, you need the most important thing, um, you know, and I'm sure some marketers would, would disagree with me, but I'm going to tell you that the most important thing is what's inside the can or what's inside the bottle, and you have to have an incredible product. If you have an incredible product, the rest is, in my opinion, is, is super easy, uh, incredible, there always will be room in the market for an incredible product, but you have to stay true to yourself and, and why, and ask yourself why did you get into this, you know, and I I talked to a lot of people that are, you know, looking to get into this business. Well, what do you, what are you doing? Well, I'm gonna bring, I have a, I, I'm a home brewer. I brew a great IPA. Well, OK, the market is full of those. What are you bringing? What unique are you bringing? And for me at the time when I started this company 11 or 12 years ago now, uh, in Vermont at the time, there wasn't a well balanced, accessible, readily available IPA, um, so that's what I brought to the market, and I knew that, and I had identified that, and I wrote a business plan around that. Um, so you have to, you know, you can't just, uh, come with a million tricks and try to follow every trend because if you do, um, in my opinion, your, your heart's not going to be in it. And uh you you're not gonna be passionate about it. I'm truly passionate about the things that I love, and what I love is craft beer. I, I don't love, I'm not a seltzer guy. I'm not a, I'm not a wine guy and I'm not a liquor guy. I am all about, uh, about craft beer, and it's, uh, it's what I would love to, uh, to drink for, for the rest of my life and Uh, I'm really bullish on the, uh, the growth for our, for our industry, and I think if we, you know, I think there's at times we've lost our way, and, but I do see things starting to a renewed focus and interest back into to making incredibly well crafted beer and not so much on gimmicks, but selling it more on the merit of the product itself.

Speaker 1 [12:56] That, that was perfect. Um, Matt, thank you so much. Congrats to you and the team on being named Craft Brewery of the Year. Uh, we're so excited to give you guys this honor, and, uh, Can't wait to see you in Santa Monica.

Speaker 2 [13:08] Absolutely, thank you so much. It's been an absolute honor and uh this is, this is up there with, uh, I mean, this probably is the uh the highest honor we've ever rec received as a company, so thank you.