Tag Archives: brewery

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What’s new with Sociable Cider Werks?

We’ve seen an uptick in ciders and sour beers in the local market in the last couple of years which is a welcome addition to beverage selections in pubs, restaurants, and liquor stores. With perfect timing, Sociable Cider Werks opened up in Northeast as the first cider-house in Minneapolis. Based on my latest visit to the taproom, the Twin Cities is loving it as it was overflowing with bocce-ball-yielding patrons, and has been, since they opened in November of last year.

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I sat down with Jim Watkins for lunch last month and we got to chatting about cider and beer. You’ve most likely heard his story, about leaving finance and opening a taproom in NE Minneapolis with his long-time friend and business partner, Wade Thompson. I am so glad the finance world was not entertaining enough that we got some entrepreneurial cider-makers to bring their dream to fruition and open up shop in our neck of the woods. Sociable is legally considered a brewery because of the use of sorghum, and hops used to bitter their cider due to a lack of local bitter apples, which makes it a graff for licensing purposes. Call it what you will, the recipes that they have developed are based on old world-style ciders which are drier and crisper. When you head to Sociable expect them to be labeled as cider when ordering.

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Business is booming and Sociable has expanded at a better than expected rate with a waitlist for kegs at this time, at least until the fall. Not surprising, since they are bringing a great local product that goes so well with food and is “decidedly different,” as their motto states. The Freewheeler is a dry cider which is tart and crisp. Spoke Wrench, also known as Stout Apple, is malty and smooth as it’s made with stout wort and English ale yeast. Hop-a-Wheelie comes in as the driest of the bunch, reminiscent of a sour beer – and my favorite. Though their standard selection is the aforementioned three, Sociable has plenty of other ciders and beers that rotate through, including infusions. Their offerings really do appeal to a wide range of consumers from the devoted craft beer fan to the beer or wine drinker may not be as familiar with the range of flavors that can be had with cider.

So, what about the beer? Jim and Wade just hired Mike Willaford, most recently from Surly, to head up the beer brewing at Sociable, so expect some cask aging and sour fruit beers along with what’s been brewing in the last couple of weeks: a wheat lager with apricots, Figgy Sour, Oatmeal Coffee Stout, German Golden IPA, and Belgian Dark Session Ale. Though the ciders are gluten-free or gluten-removed, Sociable does not brew gluten-free beers.

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Sourcing their apples is a challenge, but an acceptable one as they are dedicated to getting quality apples from our region. Canning of the ciders is the next step, no beers. Expect to see four-packs in liquor stores in late summer or fall. So for now, keep filling up those growlers which make an excellent contribution to a cabin weekend or a dinner party.

Sociable has some exciting events lined up this summer. They are organizing the first ever NE Brewer’s Block Party on July 27, featuring live music, lots of beer from neighboring breweries, cider, and food trucks which will feature special pairings. I envision a caravan of beer-folk returning from All Pints North and landing here for, well, more beer and cider. What a perfect way to spend a Sunday! Speaking of Sundays, this will be day one of Sunday hours for them in the taproom too.

The following week, Sociable will be a part of In Cahoots!, Red Stag Supperclub and The Growler’s block party on August 3 which will feature collaborations by local breweries. Sociable Cider Werks is paired up with Schell’s for a smoked apple beer, which pretty much sounds like the best collaboration ever.

Thanks to Jim for a great lunch and for sharing his passion for cider. Cheers!

 Sociable Cider Werks  – 1500 Fillmore St. NE Minneapolis, MN 55413

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Sisyphus Brewing now open

Sisyphus Brewing

Sisyphus Brewing is officially opening today at noon! Tucked away near the Walker’s Sculpture Garden, the 100-seat taproom is ready for customers. If the location was hard to find before, it will soon be quite visible as the Kickstarter-backed mural by Adam Turman and Josh “Jawsh” Lemke is completed. Entertainment will be a big part of this taproom’s amenities, plans are in the works for a 100-seat theater for live music and comedy, but for now you can have fun with two shuffleboard tables.

Via Instagram

Sisyphus will operate with a two-barrel system and will rotate beers frequently to allow them to experiment with various styles. The taproom will be the only place the beers will be available as they will not distribute or sell growlers. Today’s opening will feature four beers: Brett IPA, Oatmeal Pale Ale, Black Ale with coffee, and Kentucky Common.

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The taproom will be open on Fridays and Saturdays until 1am for now, with the ultimate goal of being open seven days a week. The addition of a taproom to the Loring Park neighborhood definitely mixes up the nightlife options for residents as well as creating a fun destination for beer lovers. Check them out and let us know what you think.

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Brau Brothers Brewing Opens Brewery and Taproom in Marshall

Brau Brothers Brewing Company opened its new taproom doors to the public a few weeks back. The new 37,000 square foot brewery is located in the former Runnings building near the intersection of U.S. Highway 59 and Minnesota Highway 23.


Via Marshall Studio1 TV.

A new larger production area means Brau Brothers Brewing Company will have the ability to brew more beer. “With this brewery comes additional barrel aging capacity which will allow us to dabble a bit more in unique, small batch beers. The additional overall capacity will definitely assist us in getting seasonals out there on a more regular basis. That’s one area we look forward to improving on. And this brewery also has its own laboratory, another important factor in an industry that relies on microbiology. Being able to run lab tests will help improve the shelf life and quality of the beer.” Said Dustin Brau.


For the past thirteen years Brau Brothers based their brewing operations in Lucan, Minnesota (Population 220) for the past thirteen years. They have outpaced the little city’s resources in past years and chose a former farm/sport retail space in Marshall because it is a larger facility with room for long term growth. The new facility allows them to have a more visitor-friendly space along with Marshall’s very first tap room.

The new digs are open daily (yes, even Sunday) from 11:am-11:00pm. The taproom features a vintage 1956 firetruck/barback, a couple of cask engines, and a full kitchen.


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The SEC’s New General Solicitation Rule: Will it Really Help Breweries Raise Funds Faster?

Infographic-New-SEC-Rules-on-General-Solicitation
Infographic via Angel Investment Network

By Jeffrey C. O’Brien

Of all the legal issues involved with starting a brewery, none is more complicated, cumbersome, time consuming and costly than obtaining equity capital.  That’s due to the requirements – or should I say, restrictions – imposed by federal and state securities laws.

On September 23, 2013, the new Securities and Exchange Commission (“SEC”) rule which lifts its long-standing prohibition on general solicitation and general advertising for certain private securities offerings under Rule 506 of Regulation D goes into effect.  Some have written that finding investors will get easier and pre-launch breweries are looking at updates to their websites to include a pitch for funds. Is the new rule that much of a benefit to issuers, or is the devil in the details? 

Background on Securities Laws

In the aftermath of the 1929 stock market crash and in the midst of the Great Depression, Congress enacted the Securities Act of 1933.  This Act created the SEC as the federal regulatory agency having jurisdiction and oversight over the raising of investment capital.  Under the Act, an issuer must either register its offering with the SEC (this is said to be a “public offering”) or make the offering under one of several exemptions set forth in the Act.  Most small private company offerings are made under exemptions set forth in Regulation D.  Rule 506 is one of the Regulation D offerings and allows an unlimited amount of funds to be raised, provided that the issuer does not engage in general solicitation or general advertising of investors. 

The importance of the prohibition on general solicitation is this:  unless the issuing company or someone with close ties to it knows of any “accredited investors” interested in investing, the issuing company faces a steep uphill climb to realizing its fundraising goal(s).  In the brewery context, experience shows that those most interested in owning part of a brewery are typically “non-accredited”, meaning that they lack the net worth and/or annual income sufficient to qualify as “accredited.”  The process for soliciting these “non-accredited” investors – who the law deems to be unsophisticated and entitled to greater disclosures and protection – is complicated and expensive…unless the SEC ever creates regulations giving effect to the crowdfunding provisions of last year’s JOBS Act.

The New Rule 506(c)

The new rule creates another means of raising funds from accredited investors under Rule 506.  The “old” rule – whereby no general solicitation is made – is now found as Rule 506(b).  New Rule 506(c) allows issuers to engage in general solicitation and general advertising to market their offerings, so long as: (1) all purchasers of the securities are accredited investors; (2) the issuer takes “reasonable steps to verify” that the purchasers of the securities are accredited investors; and (3) all terms and conditions of Rules 501, 502(a) and 502(d) are satisfied.

“Reasonable steps to verify” is the key verbiage of this new so-called “easier” way to raise funds.   Under current Rule 506 offerings, typically the issuer verifies accredited investor status via a check-off box in its subscription agreement.  That, however, is not enough under Rule 506(c).  An issuer looking to engage in general solicitation to find investors under Rule 506(c) is going to have to review tax returns, bank statements, personal financial statements, or receive a written opinion from an attorney, CPA or financial advisor.  This is a cumbersome task that goes well beyond finding the right location, determining what to name your brewery and beers and where to source your raw materials from.

In short, the wisest course of action, in my opinion, when it comes to the new Rule 506(c) is to proceed as if it does not exist.  The 506(b) offering, while restricting an issuing brewery’s ability to cast a wide net for equity investors, remains far simpler to comply with and less fraught with potential liability for the brewery and its professional advisors.

Reprinted with Permission

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Batten Down the Hatches for Bad Weather

Bad Weather Brewing is a new partnership between long time craft beer fans, and brewing school graduates, Zac Carpenter and Joe Giambruno. Bad Weather Brewing works as an alternating proprietorship within Lucid Brewing’s facility in Minnetonka. Alongside Lucid Brewing and Badger Hill Brewing, Bad Weather will make full use of the Lucid’s 15 BBL brewhouse using 30 BBL fermentors. The alternate proprietorship gives each business control of their own beer from kettle to glass. By joining forces with Lucid Brewing, Zac and Joe were able to design a business model that allows them to start small and expand strategically. The unique cooperation at Lucid Brewing is fostering community and friendship within the small, but rapidly expanding, Minnesota craft scene.

Co-Founders Zac and Joe are both long time homebrewers following the long-term goal of starting a professional brewery. In pursuit of their dreams, Joe graduated from the World Brewing Academy with an Associate in Brewing Technology at Siebel Institute and Zac graduated from the American Brewers Guild and apprenticed at Lucid Brewing. The natural camaraderie they developed as homebrewing buddies soon evolved into a business partnership that picked up Zac’s home brewery name, Bad Weather Brewing (which comes from the fact that he and his dad and brother often brewed in bad weather).

Bad Weather Brewing will feature only one flagship beer. Their brewing plan allows Bad Weather to emphasize seasonal and limited beer releases. Bad Weather’s mission is to bring Minnesota unique beers throughout the year.

The flagship year-round release WINDVANE is a hoppy red ale. The use of American hops gives WINDVANE a swift bitterness with piney, citrus and resinous flavors. If you want something with strong malt shoulders, you have that too. Roast malt layers add complexity and keeps the beer dry to showcase the hops.

The winter seasonal is OMINOUS. This big, intense dark ale comes in at At 7.5% abv. American, English and Belgian malts come together with rich, nutty, roasted flavors. Dark candi sugar brings out hints of dates, raisins, plum and chocolate.

Besides OMINOUS they will be releasing at least three more seasonal offerings in 2013. The guys also plan to throw in some special release beers alongside the regular offerings. Bad Weather Co-Founder Joe Giambruno says, “You can expect at least five releases from us in 2013. They are beers that speak to the season, but don’t follow the pack. Our recipes utilize interesting ingredients that celebrate each season in a way we are proud to present to beer-loving Upper Midwesterners.”

Bad Weather beers will be in kegs and bottles early 2013, with growlers sometime later. Bad Weather plans on utilizing a distributor to deliver their beers to the thirsty masses, but are not quite ready to announce a distribution partner yet, but stay tuned.

Zac and Joe have both completed intensive brewing school programs. Zac Carpenter will take the role of head brewer at Bad Weather Brewing. He is an award-winning home brewer who graduated from the American Brewer’s Guild in July 2012 and worked at Lucid Brewing as part of the program. Part of Zac’s training was working at Hoppy Brewing, a brew pub in Sacramento, California. They have both been working and training on the facilities used at Lucid Brewing. Besides their commercial brewing experience, both have homebrewed for years and have invested countless hours and calories into the growing beer scene here in Minnesota.

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Canal Park Brewery Opens

Canal Park Brewery is finally opening. These guys have been keeping a fairly low profile, but they have been working steadily at getting everything in place for the big day.

Built on the grounds of the Duluth Spring Co., an old manufacturing facility, the land was rehabbed to clean up environmental contaminates such as lead and other industrial waste. The cleanup was no small feat, a state grant to make the site usable totaled over $400,000.

Well-known local developer Rocky Kavajecz, has built an impressive facility and put veteran brewers Badger Colish and Dan Aagenes at the helm. Both men have earned their stripes in the brewing industry at Muskie Capital and Anheuser Bush, respectively.

The brewpub plans to brew 2,000 – 2,500 barrels of beer this year. All the brews will be made with as many locally sourced ingredients as possible. And of course, the beer names will be Duluth relevant too, with titles like Wetsuit Malfunction Wit and Pack Sacker Oatmeal Stout. Checkout a full breakdown of the beer details here, a nice touch.

Half of any good brewpub is the food. Canal park has a great array of burgers, salads, and appetizers. One thing that really impresses is the suggested pairings on the menu. For example, Coco Lime Ale Mussels paired with Dawn Treader Tripel. It baffles me why more great brewpubs (and restaurants) don’t do this.
Canal Park Brewing
Canal Park Brewing Company
300 Canal Park Drive
Duluth, MN 55802
218-464-4790


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HOURS
Monday – Saturday11 – Close
Food served until 11pm
Sunday10 – Close
Food served until 11pm

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Five Steps to Starting a Brewery in Minnesota — Legally

By Danielle Rodabaugh
If you’re looking to start a brewery in Minnesota, you need more than a passion for beer and a thorough understanding of the science that goes into brewing. You must also understand the legal aspects that will affect your ability to manage a brewery. Preparing to open and operate a successful brewery in Minnesota might seem overwhelming now, but this guide will help you get started.

Step 1: Make sure you understand every law and industry regulation that will affect your enterprise.

Starting a brewery in Minnesota is a huge undertaking, and you need to understand the full legal implications of what you’re getting yourself into. You don’t want to be in the middle of starting a brewery only to encounter a legal issue that could hinder your progress. Or, even worse, you don’t want to find out you’ve accidentally violated a code. Regardless of whether you mean to or not, breaking the law means you can face penalties such as fines, license revocation, legal action and even jail time. You can save yourself a lot of hassle later on by fully researching the legal nuances of the industry now.

Step 2: Draft a legal team to advise you.

There are a number of legal concerns to consider when establishing a brewery, and you probably don’t have the experience necessary to make all of the decisions on your own. At the bare minimum, you’ll want a lawyer and an accountant on your side to give you expert advice. With all the various aspects of starting a business competing for your constant attention, managing your finances and making detailed legal decisions can become stressful. And you definitely don’t want to make mistakes when it comes to managing finances and making legal decisions.

Step 3: Form a legitimate legal business.

When establishing your brewery as a business in Minnesota, there are many legal formations you have to choose from. Some common business structures you might want to consider are sole proprietorship, general partnership, limited partnership or limited liability company. You should base your decision on two key factors:

  • how many owners you plan to involve in your business
  • the type of brewery you want to operate

Each legal formation has its advantages and disadvantages. If you need help deciding what type of structure would be best for your brewery, discuss the options with your legal counsel.

Step 4: Get federal approval for your operations.

Assuming you intend to brew beer for reasons other than family or personal use, the federal Alcohol and Tobacco Trade Bureau (TTB) will have to approve your operations. Applicants don’t have to pay a fee to get their operations approved by the TTB, but the agency does require brewery owners to
file liquor license surety bonds, which require a premium payment be made to an insurance underwriter. The bond guarantees compliance with regulatory laws, especially those that require taxes be paid in full and on time. For more information on getting your brewery operations approved by the TTB, you can reach the Brewery Applications Section by phone at 1 (877) 882-3277 or by email at TTBInternetQuestions@ttb.gov.

Step 5: License and register your brewery according to state law.

To qualify for a brewer’s license in Minnesota, applicants must:

  • be 21 years old
  • be of good moral character and reputation
  • file a $1,000 surety bond with the state
  • not have had a license issued under Minnesota Statute § 340A revoked within the preceding 5 years
  • not have been convicted of a felony within the preceding 5 years, or a willful violation of a federal, state, or local ordinance governing the manufacture, sale, distribution or possession for sale of distribution of alcoholic beverages

The Minnesota Department of Public Safety regulates the brewery licensing process and can be reached at 1 (651) 201-7000. Individuals interested in applying for a brewer’s license can access the application forms on the department website.

Now that you know the basic legal aspects that go into establishing a brewery in Minnesota, you can determine whether opening a brewery is the right decision for you. If you decide to go forward with the process, be sure to check back soon for our second installment about budgeting and funding your brewery.

Danielle Rodabaugh is the director of educational outreach at SuretyBonds.com, a surety provider based out of Columbia, Missouri. SuretyBonds.com issues bonds to working professionals across the nation. Danielle writes articles that help new business owners better understand how surety bonds affect the business licensing process. You can keep up with Danielle on Google+.