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Food, glorious food

Have a Coke and a toke

Dude.

Aurora Cannabis Inc. led pot stocks higher after Coca-Cola Co. said it’s eyeing the cannabis drinks market, becoming the latest beverage company to tap into surging demand for marijuana products as traditional sales slow.

Coca-Cola says it’s monitoring the nascent industry and is interested in drinks infused with CBD — the non-psychoactive ingredient in marijuana that treats pain but doesn’t get you high. The Atlanta-based soft drinks maker is in talks with Canadian marijuana producer Aurora Cannabis to develop the beverages, according to a report from BNN Bloomberg Television.

“We are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world,” Coca-Cola spokesman Kent Landers said in an emailed statement to Bloomberg News. “The space is evolving quickly. No decisions have been made at this time.” Landers declined to comment on Aurora.

[…]

Coke’s possible foray into the marijuana sector comes as beverage makers are trying to add cannabis as a trendy ingredient while their traditional businesses slow. Last month, Corona beer brewer Constellation Brands Inc. announced it will spend $3.8 billion to increase its stake in Canopy Growth Corp., the Canadian marijuana producer with a value that exceeds C$13 billion ($10 billion).

Molson Coors Brewing Co. is starting a joint venture with Quebec’s Hexo’s Corp., formerly known as Hydropothecary Corp., to develop cannabis drinks in Canada. Diageo PLC, maker of Guinness beer, is holding discussions with at least three Canadian cannabis producers about a possible deal, BNN Bloomberg reported last month. Heineken NV’s Lagunitas craft-brewing label has launched a brand specializing in non-alcoholic drinks infused with THC, marijuana’s active ingredient.

Well, we have plenty of caffeine-infused food and beverages on the market, so this was only a matter of time. I personally don’t have any interest in cannabis, but I have no doubt that plenty of other folks will. If you really want to know when our state’s marijuana laws will start to change, this is likely to be your answer: When big business interests start lobbying to make it happen so that they can make a boatload of money. Ain’t life grand? Now if you’ll excuse me, I need a snack.

The beer boom continues

Raise a glass.

There were a dozen craft breweries across the Houston metro before 2013, and that seemed like a lot at the time.

Now, there are 52.

The new breweries have added 344,487 square feet of industrial space — roughly the size of a 14-story office building — to the local market, according to a new report from commercial real estate firm NAI Partners.

[…]

NAI said cities in Texas are “wildly underserved.” Only 12 of the 52 breweries are inside the 610 Loop, the report said, citing data from the Houston Beer Guide.

The report is here. On the one hand, I’m a little surprised there aren’t more breweries inside the loop, since they’re very much a neighborhood business and benefit from having a lot of potential customers in close proximity. On the other hand, real estate prices are such that it’s practically a miracle any breweries are inside the loop. However you look at it, I do agree there’s room in the market for further growth. We were behind the curve on this trend for a long time, and we’re still catching up.

Algae farms

Food for the future.

Inside a high-tech lab in a modular building in the West Texas desert here, a young scientist peered through a microscope at a slide of live and multiplying algae. She was on the prowl for “grazers,” a sort of cellular-level locust that could wreak havoc on the multimillion-dollar crop proliferating in thick green ponds outside.

It’s the equivalent of a cotton farmer walking rows in search of disease-carrying bolls, explained Rebecca White, the 38-year-old microbiologist who runs one of the world’s few commercially viable algae farms.

The harvest? For now, kilos upon kilos of biomass that is a plant-based source of omega-3 fatty acids, which in recent years have become all the rage for lowering cholesterol, promoting healthier skin and promising other health benefits. Common practice has been to consume them via a hunk of salmon or supplements derived from fish or krill. But since fish and krill actually get their omega-3 from algae, White and her team have figured out how to cut out the “middle fish” and capitalize on cultivating the source.

In a sign of how commonplace the practice has become, White, whose family has for generations raised cotton and cattle in the Texas Panhandle, says her grandfather has begrudgingly acknowledged that domesticating aquatic microorganisms counts as real farming.

The farm in Imperial is owned by Houston-based Qualitas Health, which partnered with H-E-B for the alGeepa line of supplements and is now expanding into the $33 billion omega-3 market with iWi. The latter line rolled out at Amazon.com, the Vitamin Shoppe and Sprouts Farmers Market in June.

[…]

The United Nations in 1974 called algae “the most ideal food for mankind,” and the Food and Agriculture Organization declared it “the best food for tomorrow.” But so far not even NASA’s been able to get people to want to eat it. At least, not the average American.

With more people eschewing certain foods and a world population expected to approach 10 billion by 2050, however, a new generation of scientists says the mainstreaming of algae is inevitable.

“Most people’s experiences with algae are a contamination event of some sort,” White said. “Your pool, the dog bowl, the Great Lakes, your swimming hole — that’s all negative. But algae has been doing so many positive things for so many years that they don’t talk about in a way that gets people’s attention. … Our goal is to make people think about algae as food.”

If you can package it as a meat substitute the way soy is, you’re probably most of the way there. That won’t be for everyone, of course, but I’d bet the market will be pretty substantial over time. It’s a long story, so read it and see what you think.

Beer delivered to your home

Who needs groceries, am I right?

Favor, founded in Austin in 2013, prides itself in delivering almost anything in under an hour. But until now, beer and wine — long the No. 1 request from customers — was among the missing.

Favor finalized all the proper permits and licenses to deliver beer and wine in late 2017 or early 2018. But it was the partnership with H-E-B — and the grocery company’s wide selection — that made the delivery service possible, [Jag Bath, Favor CEO and H-E-B chief digital officer] said.

Favor will offer H-E-B’s entire beer and wine selection with no minimum order size. Because every H-E-B store is tailored to its neighborhood, the selection will vary by city. Houston-area selections will include such craft brands as Buffalo Bayou Brewing, No Label Brewing, Lone Pint Brewery and 8th Wonder Brewery, and wines from the Texas Hill Country.

This isn’t the first beer delivery service in Houston. HopDrop launched late last year to provide local craft and hard-to-find beers.

Oftentimes, it delivers brews that are available only on draft.

HopDrop also provides on-demand delivery in under an hour. Customers place an order online, and a driver is dispatched to a partner bar. That bar fills a 32-ounce can, called a crowler, with beer and gives it to the driver for home delivery. HopDrop has partnered with bars throughout the Houston area, from Spring to Katy, from downtown Houston to Webster, to ensure customers receive their orders in less than an hour.

The delivery fee is $5.99 plus the cost of beer. HopDrop also offers a monthly subscription service that waives the delivery fee and provides customers same-day orders from any partner bars throughout the greater Houston area. This allows a customer in Katy to get beer from a bar in Spring.

Its focus on beers typically unavailable in grocery stores will differentiate HopDrop from the new delivery service provided by Favor, co-owner Steven Macalello said. He isn’t worried about the competition. In fact, he thinks it’s good publicity for beer delivery overall.

I get the market for home delivery of groceries. Not used it myself, but I see why people do. This one’s a little less clear to me – are there really that many people who need an on-draft microbrew brought to their door? Maybe that’s just a failure of imagination on my part. I guess if you’re the grocery-delivery consumer anyway, or maybe if you’re just grocery-delivery-curious, being able to add a six-pack to the order sweetens the deal. Is this something you would use?

Back to the barbecue battle

Once again, Sid Miller makes us pay attention to something we shouldn’t have to.

Sid Miller

Sid Miller

Texas’ barbecue culture is sacred. But some pitmasters are catching heat from a former rodeo cowboy overseeing the state Department of Agriculture.

Commissioner Sid Miller is slapping fines on their small businesses despite a warning from the attorney general that his reasoning may be illegal. The department issued at least 13 citations to barbecue joints for failing to register their meat scales since September, despite a 2017 state law requiring the commissioner to leave such establishments alone. In a case of unlikely bedfellows, Miller’s commission issued nine scale-related fines to yogurt shops, too.

The department has no plans to stop.

The citations are part of a running feud between restaurant owners and Miller, a white-cowboy-hat-wearing commissioner who made it his mission to ensure the state register all scales that weigh food for customers. But the state’s restaurant association is warning the food fight could land the commissioner in court.

[…]

When you order a quarter-pound of brisket, Miller insists the meat-slinger should set it on a state-registered scale where you can read the weight. Restaurants must also pay a yearly $35 fee for each of their scales. But strictly enforcing the law could force some of Texas’ most storied smokehouses to completely change the layout of their kitchens, incurring huge remodeling costs.

It’s “patently absurd,” said Kenneth Besserman, general counsel for the Texas Restaurant Association. Some pitmasters scrambled to rewrite their menus to serve less specific amounts of meat but found that created confusion for customers, he said.

Besserman and the restaurant lobby quickly convinced the Legislature to rewrite the law, nicknaming their effort the “Barbecue Bill.” Lawmakers in 2017 almost unanimously agreed to exempt scales “exclusively used to weigh food sold for immediate consumption,” largely pertaining to barbecue restaurants, yogurt shops and certain salad bars. The governor was sold.

Nevertheless, Miller persisted. Once the bill became law, Miller used his authority to add three additional words: “on the premises.” That meant any establishment selling food to-go — as the vast majority of barbecue restaurants do — had to follow the scale laws and regulations, essentially undoing the new law.

See here and here for the background. AG Paxton has opined that Miller’s interpretation is out of bounds, and the TRA is threatening to sue. I have expressed my reluctant agreement with Miller on the merits of the 2017 law, but it is the law and a public official’s role is to obey and uphold the law, outside of situations where the law is obviously immoral or unjust. This doesn’t meet that standard, in which case Miller should be lobbying for the law to be changed, or to work to un-elect the legislators who passed it. It’s also fair to point out, as Miller’s Democratic opponent Kim Olson does in the story, that the AG ought to have other priorities than this, as there have been almost no complaints made in recent years about inaccurate barbecue scales. Of course, given the sorts of things Miller tends to do when he has a bit of free time, this is at least not horribly embarrassing. Silver linings, I suppose.

Paxton versus Miller on barbecue

Just embrace the fact that this is the world we live in.

Sid Miller

Sid Miller

A nonbinding opinion issued Monday by Attorney General Ken Paxton continues a battle between lawmakers, restaurants and Agriculture Commissioner Sid Miller over regulation of scales used to measure food.

Under state law, roughly 17,725 retailers, including grocery store chains, airlines, coffee houses, laundries and brisket purveyors, are required to use scales to measure what they sell to the public. Those scales are also supposed to be registered with the state so inspectors can ensure that they’re not tipped in the seller’s favor.

A law passed during last year’s legislative session, however, carved out exemptions for scales “exclusively used to weigh food sold for immediate consumption,” meaning places such as yogurt shops and barbecue joints won’t have to get their scales registered.

Miller called the law “horse hockey.”

[…]

Miller’s agency, which was charged with verifying the accuracy of the retailers’ scales, decided that businesses would only be exempt from regulation if they weighed foods to be eaten “on the premises.” But the barbecue bill’s authors argued that in determining how to implement the law, Miller’s agency misinterpreted its intent. So Miller asked Paxton for a written opinion.

Paxton sided with the barbecue joints in his opinion Monday, saying Miller’s agency went too far.

See here for the background. As I said before and as I may never say again, I think Miller had the better argument, but at least we know Ken Paxton remains consistent about siding with the moneyed interests whenever the opportunity presents itself. But who cares about any of that? This calls for a song:

Now if you’ll excuse me, I hear some brisket calling my name.

Oh, no, Shipley’s

Disgusting.

Three former Shipley Do-Nuts employees are suing the company’s owner for allegedly groping them and making racist remarks, accusations that are consistent with a bevy of civil rights lawsuits filed by former workers since 2004.

The women claim that Lawrence Shipley III “regularly subjected them to unwelcome touching, other inappropriate physical behavior and unwelcome sexual comments,” according to a lawsuit filed in Harris County on Friday against the donut company and its owner.

“(Shipley) hugged Elizabeth Peralta tight across her front and touched her rear and buttocks,” the suit says. “He stared at her breasts and crotch areas. He spanked her rear.”

The other plaintiffs allege similar action from Shipley while working at the Houston-based chain’s North Main Street location. During one incident, plaintiff Esmeralda Sanchez claims Shipley did not punish a male supervisor who made sexual innuendos to her, instead saying that the way she dressed encouraged the behavior. They seek more than $1 million in damages.

The three women are also plaintiffs in a federal lawsuit filed against the company last year for failing to pay overtime, an allegation that’s been lodged many times against the company in suits.

In an email Sunday, Lawrence Shipley said his accusers were caught “red-handed in an elaborate corruption scheme whereby they duped the Shipley companies and more than 20 franchisees out of legitimate delivery and freight services for their own financial gain.”

“And if I were to become somebody I’m not and stumble over to the dark side, it wouldn’t be with these low lifes,” he wrote. “What a baseless, pathetic accusation. That’s my comment.”

An attorney for the three women said it was unclear what Shipley meant in his statement. Karla Evans Epperson said she was not aware of any legal actions against her clients that would explain Shipley’s comments. Two of the women worked in housekeeping, and the other did clerical work, according to the first suit.

Epperson said she wasn’t surprised by Shipley’s comments, though.

“This isn’t his first rodeo,” she said.

There’s more, so go read the rest. That North Main location is where I take the girls for donuts when they convince us to buy them. Not anymore. I will not darken the doorstep of a Shipley’s till this jackass has sold his shares and they have put in real reforms to treat their employees better and prevent crap like this in the future. What a damn shame.

Microbreweries organize again

About time.

Craft brewers are asking beer fans to put their money where their thirst is.

Six weeks before state primary elections, the Texas Craft Brewers Guild on Monday launched a political action committee to raise money and awareness to challenge “archaic, anti-competitive beer laws” it says are holding back an industry poised for dramatic growth.

The PAC already has raised more than $40,000 from among its approximately 250 brewery members, with the largest individual donations coming from the owners of Austin Beerworks and Saint Arnold, Live Oak and Deep Ellum Brewing Cos. Much of the money raised by the new CraftPAC will go to support state legislative candidates who support the brewers’ agenda, guild executive director Charles Vallhonrat said

CraftPAC so far has donated $1,000 each to two incumbent legislators – one Democrat and one Republican – in the Austin area.

“We intend to influence where we can,” Vallhonrat said.

Here’s the CraftPAC finance report for January. The legislators in question are Reps. Eddie Rodriguez and Tony Dale, though I’m sure there will be more. It’s one thing to give money to a friendly incumbent in a friendly district, but it’s something else altogether to contribute to someone who’s looking to take out an enemy. We’ll see how seriously they decide to play.

Brewbound has more details:

Initially, CraftPAC will focus on legalizing of to-go sales from production brewery taprooms, which Texas law currently outlaws. Although the state’s manufacturing breweries are not allowed to sell beer for off-premise consumption, the state’s brewpubs, wineries and distilleries are allowed to sell their products to-go.

Speaking to Brewbound, Texas Craft Brewers Guild Executive Director Charles Vallhonrat said Texas distributors have had a financial edge over brewers after giving more than $18 million in political contributions to lawmakers. CraftPAC, he added, is a way to level the playing field.

“We want to be on the same field,” he said. “We know that they have big bats, but we need to be on the same field to say we’re in the game.”

CraftPAC board chairman and Austin Beerworks co-founder Adam DeBower added that Texas’ brewers haven’t had a voice in the legislature since 2013, when several lawmakers who supported brewers retired or moved on.

“We don’t have any champions left,” he said.

[…]

Vallhonrat said last year’s passage of House Bill 3287 — which put tighter restrictions on how beer that is sold for on-premise consumption at brewery taprooms — was the catalyst to the formation of CraftPAC.

“The blow we received from 3287 showed the overwhelming power that the distributors wield,” he said. “That they could influence a bill that absolutely no brewery supported, and they could go around saying this was for the protection of breweries and convince the Legislature and get it passed, that really demonstrated what we’re fighting against.”

In 3287, Texas lawmakers changed the way the state’s barrel cap is calculated, adding production across multiple brewing operations rather than from individual facilities. Now, breweries making more than 225,000 combined barrels annually will be required to repurchase their own product from a wholesaler in order to continue selling beer for on-premise consumption in their taprooms.

In the announcement of CraftPAC, the Guild also cited the 2013 passage of Senate Bill 639, which prohibits breweries from selling their distribution rights to wholesalers, and led to a lawsuit that will be decided by the Texas Supreme Court.

Vallhonrat told Brewbound that CraftPAC will also work to make other “common sense updates” to Texas’ alcohol code such as eliminating the distinction between “ale” and “beer.” According to the Texas code, an ale is a beer above five percent ABV while a beer is under five percent ABV. Such distinctions are costly, and add market confusion and work for brewery owners, he argued.

DeBower added that CraftPAC would work to equalize licensing differences between breweries and brewpubs. Currently, brewers are required to have a manufacturer’s license while brewpubs receive retail license and are afforded different privileges, such as off-premise sales.

If you’ve read this blog for any length of time, you know what I think of this state’s ridiculous, anachronistic, and extremely consumer-unfriendly beer laws. (If you’re new here, you can now probably guess.) I support all of this, of course, but I’m shaking my head a little because this is at least the third separate effort to organize and whip up public opinion in favor of modernizing the beer codes. There was a bipartisan blog-based effort in 2007, of which I was a part, and the now-dormant Open The Taps group that helped spearhead the 2013 laws that represented the one step forward we have taken. The experience since then shows that a movement can never take anything for granted – what has been done can be undone, or at least undermined. I wish CraftPAC all the success – their Facebook page is here; give it a Like – and I especially wish that they stay around and keep at it well after they do have success.

The year in beer

It was pretty good overall for Texas craft brewers, especially in Houston.

Texas craft brewers will close the books on 2017 having made more beer, opened more breweries and garnered more national recognition for the state than ever.

Looking ahead to 2018, Houston appears positioned to keep the party going. Commercial real estate services firm Cushman & Wakefield recently identified Harris County as second in the nation for number of breweries in planning.

Many of these newcomers are likely to be small, inviting people to walk or bicycle from nearby homes or workplaces. But at least two established local companies recently announced major expansions that should continue the trend of making breweries bona fide tourist destinations.

Such developments have craft industry leaders upbeat about the future, though they are still seething over a law change enacted last spring that they believe has hurt the value of breweries and penalizes those seeking to grow significantly.

The law now forces breweries that reach a certain size to sell and buy back their own beer before they can offer it in their taprooms, cutting into profit margins. Because the size restriction includes production totals of parent companies, brewers fear it could deter future acquisitions – not just by global giants but from other craft breweries as well.

Charles Vallhonrat, executive director of the Texas Craft Brewers Guild, this week called the measure “nonsensical” and pledged to continue efforts to “modernize” the alcoholic beverage code.

Regardless, for the most part and in spite of a historic flood that knocked much of the Texas Gulf Coast onto its heels, it was a year of rewards and resilience for local brewers.

The trend these days is for the breweries to focus on taproom sales aimed at neighborhood customers. I’ve had a hard time keeping up with all the new construction, but I know there are more options near where I live now, and more are coming. One of those expansions mentioned above will be pretty close to my home, more of a bike ride than a walk but exactly the sort of thing that would be appealing on a warm day. Saint Arnold is building a beer garden in the space next door to their facility, which ought to be awesome. Maybe one day we’ll get our Legislature to fix the idiot anti-consumer beer laws we have in this state, but until then it’s on us to support these vibrant job (and beer) creators.

The Republican primary for Ag Commissioner is now about barbecue

Because of course it is.

Sid Miller

Sid Miller

“Barbecue might be America’s most political food,” wrote the New Yorker earlier this year. The claim certainly applies to the 2018 race for Texas Agriculture Commissioner. Instead of farming or ranching issues, it’s Sid Miller’s recent history on barbecue that his Republican primary opponent, Trey Blocker, is using against him.

For some brief background, the Texas Department of Agriculture (TDA) launched a program called Operation Maverick in 2015 to enforce, among other things, the requirement that barbecue joint scales be certified and registered, a rule that hadn’t been enforced in the past. Backlash from small business owners resulted in House Bill 2029, aka the “Barbecue Bill,” during this year’s legislative session. The bill, which exempted barbecue joints (and yogurt shops) from the regulation, easily passed the Legislature and was signed into law by Gov. Greg Abbott in June. The TDA then revised the wording of the bill—which had exempted “food sold for immediate consumption”—by adding “on the premises” in the rewritten regulation. Those three new words meant that any barbecue joint selling food to-go was no longer exempt. The Texas Restaurant Association cried foul, and the TDA asked Attorney General Ken Paxton for a ruling that is forthcoming. This has all become fuel in a food fight between the candidates.

The first shot came a few weeks ago from Miller, who mocked Blocker for holding a fundraiser at a restaurant that served Nutella crepes. Miller acted as if he didn’t know what Nutella was, despite only seeing the “tella” portion of the word on the blackboard sign behind Blocker in a photo from the event (which, for the record, was held at the Old German Bakery & Restaurant in Fredericksburg).

Blocker fired back with a fundraising email that described Miller’s stance as a “war on Texas BBQ.” Now, calling a Texan anti-barbecue is about on par with calling them un-Texan, but Blocker didn’t stop there. Over the weekend, he followed up with two campaign videos focused squarely on barbecue.

I can’t believe I’m saying this, but I don’t see anything wrong with what Miller did. I get why the TRA didn’t care for it, but I’m all for consumer protections, and that’s how I see this. All that said, this primary is already making us all stupider. Just vote for Kim Olson in November and all of this can be naught but a bad memory. The Chron and Texas Public Radio have more.

Microbrewery legal setback

Kind of a lousy Christmas present.

Three Texas brewers are going back to battle with the state after an appeals court reversed a decision that would have allowed them to sell their distribution rights for monetary compensation.

In 2014, Peticolas Brewing Co. (Dallas), Revolver Brewing (Granbury) and Live Oak Brewing Co. (Austin) sued the Texas Alcohol and Beverage Commission, saying a newly passed law related to who could sell a brewery’s distribution rights was unconstitutional. The mandate, which passed in 2013 with a bundle of other beer regulation reforms, said breweries may not accept payment for contracting with a distributor, but that a distributor could get a payout if it sold those same territorial rights to another distribution company.

Last year, a judge served victory to the breweries. But on Dec. 15, the Texas Third Court of Appeals reversed that decision. It stated, in part, the law does not prevent the brewers from successfully operating their businesses and that it also upholds the industry’s three-tier system, which aims to avoid conflicts of interest between alcohol manufacturers, distributors and retailers.

The decision will be appealed to the Texas Supreme Court, according to a statement from Institute for Justice, which is representing the breweries.

“It is well established that the Texas Constitution protects economic liberties, and these rights do not cease to exist when the government begins licensing and regulating individuals and businesses,” said Arif Panju, managing attorney for Institute for Justice’s Texas office, in a statement. “Every business in Texas should be concerned with the court’s ruling in this case. It is dangerous and we will ask the Texas Supreme Court to reverse.”

See here, here, and here for the background. You know how I feel about this. The three-tier system is an anachronism and a travesty, a glaring counterexample to any politician’s paeans to how Texas has a great business environment. Yet it persists, a lasting tribute to the lobbying efforts of the beer distributors and the big breweries that support them. As with so many things in this state, the ultimate solution is going to have to be a political one. Nothing will change until we elect enough people who want it to change. Austin360 has more.

Buffalo Bayou Brewing to build new facility

We remain in a craft beer renaissance.

Buffalo Bayou Brewing Co., which launched nearly six years ago with a beer called 1836 honoring the date of Houston’s founding, is preparing to break ground on a $14 million brewery and restaurant that would be one of the largest and most visible of its kind in the city.

The announcement marks another milestone for the industry, as breweries continue to pop up and civic boosters market them more heavily.

The three-story, 28,000-square-foot Buffalo Bayou Brewing facility is planned for Sawyer Yards, an artist studio-anchored development just south of Interstate 10 near downtown, the Woodland Heights and other bustling neighborhoods. The brewery would boost production capacity significantly and take fuller advantage of state laws that allow it to sell some beer on-site.

Founder Rassul Zarinfar said his business outgrew its original location, a converted warehouse near Memorial Park that is expected to ship about 8,000 barrels this year. The new facility, 3 miles away and expected to open in 2018, will provide immediate relief and could be expanded over time to a 50,000-barrel capacity.

The company has begun the permitting process and expects construction to take nine months.

The new site will include a taproom and 200-seat restaurant that would be larger and more comfortable for visitors, who currently squeeze into an un-air-conditioned corner of the brewery and a small outdoor patio to sample the wares and snack from food trucks.

Full- and part-time employment would approximately double, to about 100, Zarinfar said.

[…]

[Last month], Houston tourism officials began selling one-day, three-day and 90-day Brew Passes at VisitHouston.com that purchasers can redeem for a sample flight of beers and other discounts at six Houston breweries.

Maureen Haley, director of strategic tourism initiatives at Visit Houston, said locals and tourists alike seek out unique experiences.

“As more breweries that have smaller production get into the game, you have to go there to get the beer,” she said.

I’ve been to a few events at the current Buffalo Bayou location. Good beer, but definitely crowded and loud as a result, and parking – it’s on one of the narrow streets a block south of I-10 between Shepherd and TC Jester – is a problem. The new location sounds great, and I look forward to visiting. Also, I need to get a couple of those three-day Brew Passes for the next time my dad is in town. Best of luck with the construction, y’all.

The taproom bill is in effect

And it’s lousy, as expected.

The latest draft of beer legislation in Texas has left a bitter taste in the mouths of some craft brewers.

HB 3287, which lawmakers passed during their regular legislative session earlier this year, requires craft brewers that produce more than 225,000 barrels per year to pay a distributor to deliver their beer — even if the destination is inside their own facility.

Proponents of the legislation say it will maintain the state’s three-tier system — Prohibition-era regulations that legally separate brewers, distributors and retailers — and properly regulate large companies that purchase craft breweries. To opponents, though, the law targets newer craft breweries across the state, discouraging investment in their businesses while protecting larger and more established beer companies.

[…]

“When you get to a certain point, you’re no longer the little guy that needs the incentives,” said Rick Donley, president of the Beer Alliance of Texas, which represents distributors and supported the legislation. “Once they get to a certain annual production level, they’re really not new entrants into the marketplace.”

But [Charlie Vallhonrat, the executive director of the Texas Craft Brewers Guild] says craft brewers weren’t asking for any help from distributors, who he charges will benefit most from the new law. Carve-outs written into the law allow three craft breweries recently purchased by larger breweries to avoid the 225,000-barrel cap: Karbach in Houston, bought by Anheuser-Busch InBev; Revolver in Granbury, purchased by Miller-Coors; and Independence in Austin, bought by a Heineken-owned subsidiary.

“They claim that this is to protect the three-tier system,” Vallhonrat said. “This has nothing to do with protecting the three-tier system.”

See here for the background. As you know, I think the three-tier system should be ashcanned, but it remains the case that no one has asked me. I don’t know why it is that we can’t have a truly open, consumer-friendly market for beer in Texas, but clearly we can’t. The success that microbrewers have had in this state has been despite the existing regulatory environment, not abetted by it.

Crowler conundrum concluded

Finally.

Mike McKim held an empty aluminum can under a tap and pulled the handle, filling the can with Real Ale Brewery’s Helles beer. He fitted a pull tab lid on top, slotted the can into his “crowler” machine, and pushed a button. He told the story of the equipment’s origins, invented by Colorado-based brewery Oskar Blues.

Then the founder of Cuvée Coffee in Austin explained how the state of Texas took it away from him, fined him more than $30,000, kept it for months after judges told them to return it and sparked a lawsuit that cost him more than $40,000 in legal fees.

“[TABC charged us with] illegally manufacturing an illicit product,” McKim said. “Basically, brewing beer. We’re not brewing beer. We buy beer, put it on tap, and put it in a can. Who cares whether I’m putting it in this little Dixie cup or in a bottle or a can, what difference does it make? And that’s why we went to court.”

McKim’s battle with the Texas Alcoholic Beverage Commission officially drew to a close on Thursday, when he got his crowler machine back after more than a year of separation. The coffee bar sold its first crowler since 2015 on Friday. And McKim’s story has inspired two pieces of legislation this session.

[…]

Cuvée Coffee’s story became the impetus for HB 908, which allows draft beer to be sold for off-premise consumption in both crowlers and growlers. Its author, state Rep. Ramon Romero, Jr., D-Fort Worth, wrote a letter to TABC Executive Director Sherry Cook early March this year admonishing the agency for its failure to return Cuvée’s machine months after a judge ordered them to do so.

“TABC has so many other things to worry about,” Romero said. “We’ve been working with TABC to crack down on human trafficking, bars taking advantage of women, to some degree creating environments that are very dangerous for women. We’ve been working on all these things and if it was up to me, that would be what they’re focusing their attention on — not small businesses trying to innovate.”

On Monday morning, McKim testified in support of SB 813 and told the Senate Affairs Committee he had to spend $41,300 fighting the TABC over the crowler machine. Sen. Bryan Hughes, R-Mineola, said he filed the bill to give individuals and businesses the ability to sue regulatory agencies for unreasonable regulatory actions. He hopes it will deter agencies from pursuing potentially frivolous regulatory actions.

“If I’m an agency and I’m messing with a Texan, there is no downside, no risk from the agency’s standpoint,” Hughes said. “There’s nothing keeping the agency from pursuing a frivolous action. If they lose in court and appeal like they did with Mr. McKim, there’s nothing keeping them from pulling out all the stops and punishing a business owner. The idea behind SB 813 is to even things up a bit.”

See here and here for the background. This was always a ridiculous difference-without-a-distinction action by the TABC, and it’s good that they have admitted defeat. I support HB908, though I’d like to know more about SB813 before taking a side on it. The bottom line is that our beer laws and how we enforce them continue to be silly, though hopefully now slightly less silly. There’s a lot more room for a lot less silliness, if we want there to be.

Shiner’s caffeinated beer

We return to an old favorite topic, caffeination of things that are normally not caffeinated.

One of Texas’ favorite beer brands has released a new product to celebrate 108 years in business.

Shiner Beer’s caffeine-laden Shiner Cold Brew Coffee Ale has just hit stores. The brew is made with Chameleon Cold Brew, another Texas-based company.

Chameleon has been making organic cold brew in Austin since 2010. The brand has exploded in the Lone Star State as cold brew increased in popularity.

[…]

Those who have tasted the new Shiner beer say it has a clean finish, lager-like taste. According to the Beer Street Journal it “drinks like a beer, as well as a hopped cold brew.”

The beer will be released in cans, bottles, and on draft. It will be a limited-time offering.

Shiner releases specialty limited-availability brews every year around this time. Lots of things have been caffeinated in recent years – potato chips, soap, Cracker Jack, even air. Caffeinated beer has been with us since at least 2004, though as that was a Budweiser product, I’ve no doubt that Shiner Cold Brew Coffee Ale will be superior. Alas, I myself am not a fan of coffee, so I’ll have to rely on third party reports to confirm that. Bottoms up and Happy Birthday, Shiner.

A win for beer

Hooray!

All you want for Christmas is a crowler to go? It probably won’t happen that quickly, but an administrative judge’s recommendation could move the state a step closer to letting bars and restaurants sell takeaway beer in the sealed, 32-ounce aluminum cans that sparked a passionate debate last year when officials cracked down on retailers who used them.

“I’m ecstatic,” said Todd Hayden, owner of Hop Scholar Ale House in the Spring area. ” … We sold a ton of beer in crowlers.”

Until last fall, that is, when Texas alcohol regulators ordered bars simply to stop using crowler-filling machines or risk losing their sales licenses or facing thousands of dollars in fines. Seven retailers, including three in the Houston area, received written warnings.

Selling beer for off-premise consumption in growlers, typically glass or stainless-steel bottles that are capped by hand, remained legal for retailers with the proper sales license. But the Texas Alcoholic Beverage Commission declared the crowler machines require a manufacturing license to operate. Only licensed brewpubs that make beer and can sell it to-go were allowed to continue using them.

Hayden and others put the machines in storage, but Cuvee Coffee of Austin challenged regulators by continuing to sell crowlers. TABC agents seized its equipment in September 2015. The company eventually sued in state District Court, but it was ordered to go through the administrative hearings process first.

Round 1 goes to Cuvee. In a decision dated last week, administrative judge John Beeler sided with the retailer on all counts and recommended that TABC return the equipment and change its rules.

See here for the background. Basically, the administrative judge agreed that crowlers are not usable in a manufacturing process and thus should not be subject to this requirement. The TABC can accept this ruling and adjust accordingly, or it can file an exception in the hope of getting the judge to change some part of his ruling. The deadline for that is December 2. It may still be awhile after that before the crowler machines come out of storage, but barring anything unusual this is a great result for Texas and everyone who drinks beer. Austin 360 and the Current have more.

Anheuser-BuschInBev to buy Karbach

If you can’t beat ’em, buy ’em.

Fast-growing Karbach Brewing Co. of Houston is the latest U.S. craft brewery to be acquired by a global beer giant, announcing Thursday morning that Anheuser-BuschInBev is buying it for an undisclosed amount.

The 5-year-old Karbach will be part of the company’s U.S.-specific High End business unit, joining the likes of Stella Artois and Shock Top; Goose Island, Breckenridge, Elysian and five other craft breweries; a cider company; and a hard seltzer company.

Ken Goodman and longtime business partner Chuck Robertson, who founded the brewery in a building they formerly used in their beer distributorship on Karbach Street, said existing management and brewers will remain in place and the company will retain much of its independence while also gaining access to the resources that will help it continue to grow.

“The financial piece wasn’t that important at the end of the day,” Goodman said. “It was the resources.”

High End president Felipe Szpigel cited Karbach’s Love Street Kölsch as an example of a lower-alcohol, or “session,” beer that will fill a niche in the AB-InBev portfolio.

He said he first visited the Karbach brewery during a site visit to Houston about a year and a half ago and as he talked with the owners and brewers, “I really fell in love with what they are doing.”

Brewmaster Eric Warner said the move will allow his team to collaborate with those other craft breweries.

“The High End wants to see us innovate,” he said.

Szpigel and the Karbach team said they will continue to focus on developing the Texas market for the next couple of years.

I’m sure that quote about “resources” is a reference to the ABinBev distribution network, which is more a comment on Texas’ byzantine and archaic beer laws than anything else. I’m sure the Karbach founders (and I hope their employees) will nonetheless make a nice chunk of change off of this, and more power to them if they do, but a peek at their announcement of the deal on Facebook shows that the reaction from their customers is overwhelmingly negative. This is no surprise – ABinBev has openly mocked craft beers and the people who drink them in their advertising, and well, anyone who drinks Karbach almost certainly thinks ABinBev products are exactly what’s wrong with beer and the reason why breweries like Karbach needed to exist and have done so well. From a brand perspective, it’s at best a shotgun wedding and at worst a complete hash. I’m sure that Karbach will sell a lot more beer as a result of this deal. I just suspect that very little of that beer will be consumed by people who had ever drunk it before today. Swamplot and Houstonia have more.

Have we reached peak beer in Texas?

Maybe not, but we are surely testing the limits of the market.

beer

Owners of Eureka Heights Brewing Co. signed up 40 bars and restaurants to sell their beer during their first three weeks in business. The taproom was drawing such crowds that they quickly expanded hours. Saturday afternoons are now quite a scene, especially when a tour bus drops off a clutch of beer explorers.

They made opening a brewery look so easy, it’s perhaps no wonder others continue to jump in.

In late June, the Chronicle published a comprehensive list of 36 breweries operating between Galveston and Bryan-College Station, including 12 in Houston proper. In the three months since, five more breweries have opened within the city limits. Two were hosting opening events Friday night alone.

It’s a startling number, even given the surging interest in locally made beer.

“We often do see little bursts of activity as people get excited and open at the same time,” Brewers Association chief economist Bart Watson said Friday.

Brock Wagner, who founded Saint Arnold Brewing Co. 22 years ago, called it “the type of coincidence that is likely to occur when you have so many breweries in planning.” He cautioned that the new brewers may find it tougher to find shelf space in stores or room on a tap wall for their draught products.

“I think we may be at peak brewery opening,” he said, adding that it may still be two to three years before a shakeout begins and some breweries close. “I’ve been predicting a slowdown in brewery opening for a while and been proved wrong. I think we are at that point.”

Jason Armstrong, vice president, sales and distribution, and co-owner of Buffalo Bayou Brewing, sees room for more breweries. But he agreed it’s an open question.

“How many people can you fit in the boat?” he said. “I don’t think we know that yet.”

I confess I’ve lost track of the microbreweries in the Houston area. There are a few brands I buy – mostly but not exclusively Saint Arnold – and a bunch that I’ve never tried. I hope they all make it, and I hope they take an ever-increasing share of the market from the big conglomerates, but the odds are that in five or ten years’ time, the total number of micrbreweries will be smaller than it is today. In the meantime, I need to do some touring and sampling. I’ve been missing out.

Amazon PrimeNow restaurant delivery debuts in Houston

More good news for people who like having other people bring them their food.

Amazon

Announced via release, Amazon PrimeNow will offer one-hour delivery for Prime members from dozens of restaurants across the city. Which means that you’ll not actually have to visit the restaurants to enjoy food from The Hay Merchant, El Tiempo Cantina, Hugs & Donuts, and more.

Unlike other delivery services, whose fees range from $2 to $7 per delivery, PrimeNow deliveries will be free for those that have paid the $100 for Amazon Prime perks. Notably, Amazon will not mark up menu items’ prices, which other services are unabashedly guilty of.

PrimeNow delivery is officially available in Houston as of today. To see if it’s in your area, you’ll have to download the PrimeNow app and look for a “Restaurants” option.

As noted in the story, Amazon joins UberEats and some other services in the dinner delivery business. I personally prefer to dine in, mostly because I like my food hot from the kitchen; the only to-go/delivery food we get with any regularity is pizza. I know that a lot of people do like this sort of thing, and I’m sure this will be something they really like. If you’re one of those people, you now have one more reason to not leave the house.

Microbreweries win their distribution rights lawsuit

Excellent news.

beer

A Texas law that prohibits brewers from selling territorial rights to distribute their beer is unconstitutional, a judge ruled Thursday, serving up a major victory to beer companies seeking to expand their presence in stores, bars and restaurants throughout the state.

The decision says the government has no compelling interest in prohibiting brewers from seeking cash compensation when negotiating a contract with distributors, who have almost exclusive authority to handle sales between producers and retailers.

“This law, it was written by beer distributors to enrich big beer distributors and that is not a legitimate state interest,” said Matt Miller, senior attorney and head of the Austin office of the Institute for Justice, which litigated the case on behalf of Texas craft brewers Live Oak, Revolver and Peticolas.

The law, passed three years ago, allows brewers and distributors to negotiate for things like equipment and marketing efforts, but not direct compensation. That denies brewers who have worked to build up their business the ability to “capture the value of their brand” once they are large enough to require a distributor, said Charles Vallhonrat, executive director of the Texas Craft Brewers Guild.

A cash infusion from a distribution contract also would allow smaller breweries to expand operations, hire new employees and build up marketing teams to increase sales, Vallhonrat said.

Thursday’s ruling by state District Judge Karin Crump in Austin came after both the brewers and the Texas Alcoholic Beverage Commission sought summary judgments in the lawsuit. After considering depositions from both sides, Crump declared the law violates state constitutional protection for economic liberty.

[…]

Plaintiff Chip McElroy, founder of Live Oak Brewing Co. in Austin and one of the law’s most vocal critics, called it “unjust … unconstitutional … just plain wrong.”

“It took our property and gave it to them for free,” McElroy said Thursday.

Arif Panju, another Institute for Justice attorney in the case, said the ruling applies to out-of-state breweries as well. Miller said it protects all entrepreneurs looking to build up their businesses.

Miller said the ruling will help breweries going forward but does not address those who struck distribution deals while the 2013 law was in effect.

The Texas Alcoholic Beverage Commission has 30 days to file an appeal. A spokesman said agency lawyers are in touch with the Texas Attorney General’s Office and likely will appeal.

See here and here for the background, and here for a copy of the ruling. I hope the TABC will reconsider its inclination to appeal. This law serves no one’s interests except those of the Wholesale Beer Distributors of Texas. The state should not be spending its own resources pursuing a reversal of this ruling. As noted elsewhere in this story, if the original bill that forbade the microbreweries from selling their distribution rights had been about any other commodity, it would have been laughed out of the Capitol. Surely we have better things to do than this.

More from Austin 360:

Brewers and their fans might be rejoicing their victory right now, but they’re still holding their breaths over two other beer-related cases in Texas courts.

One case involves an issue that brewers unsuccessfully pushed for in the 2013 legislative session. As a result, Dallas’ Deep Ellum Brewing sued the Texas Alcoholic Beverage Commission last year to try and get breweries the ability to sell beer to-go from their facilities — something that wineries and distilleries in Texas are both able to do. (Operators of brewpubs, which sell food in addition to beer, also can sell their products to the public.)

Also, Cuvee Coffee decided to go to battle with the TABC over the issue of whether retailers can sell crowlers, which the TABC argues are one-use cans, rather than aluminum growlers, that only manufacturers of beer can sell.

Both cases are expected to be resolved within the next couple of weeks.

See here for more on the Deep Ellum lawsuit, and here for more on Cuvee Coffee. Let’s hope for a clean sweep. I’ll keep my eyes open for further news. The DMN has more.

Microbrewery lawsuit heard in court

I can’t wait to see how this turns out.

beer

Just how much is it worth for that Velvet Hammer or other local craft brew to make it to your favorite bar or convenience store?

That’s one of several key questions that came before a state district court Monday, as a group of craft brewers — including Peticolas Brewing of Dallas and Revolver Brewing of Granbury — challenged a contentious component of the state’s arcane alcohol regulations.

Namely, the craft brewers want to overturn a 2013 law that says they cannot accept financial compensation for their distribution rights.

In Texas and in many other states, the alcohol industry operates under a three-tier system: producers, distributors and retailers. That arrangement, which dates to the end of Prohibition, seeks to eliminate potential problems by keeping each operation independent from the others.

[…]

In 2013, the Legislature passed several new alcohol laws, many involving the burgeoning craft beer scene. Though multiple bills helped the upstarts, particularly brew pubs, there’s little doubt that the distribution rights piece boosted that middle tier of the system.

Consider that at least one brewery — Live Oak Brewing in Austin — sold its distribution rights for the Houston area for $250,000 before the law went into effect. Now, that would be impossible.

Some craft brewers, if they meet certain criteria, can use what’s called self-distribution as a work-around. But the restrictions that come along with that practice can make it difficult for some brewers to expand their reach, particularly across the state.

Adding to the frustration of the craft brewers is that a distributor, once it has the territorial rights to a certain brewery, can then sell those rights to another distributor. So what can’t be measured, by law, in dollars on the front end carries significant value on the back end.

“There’s just no rational basis for the law,” Michael Peticolas, owner of his eponymous brewery in the Design District, said in an interview after Monday’s hearing.

See here for some background. The lawsuit was filed in 2014, and its root is in SB639, which passed during the 2013 session at the same time as the other bills that allowed microbreweries to sell their wares at their home locations. The Statesman adds on:

Karen Watkins, a lawyer from the office of Texas Attorney General Ken Paxton, defended the law on behalf of the Texas Alcoholic Beverage Commission and said the state must not weaken the current regulatory system.

In Texas, the sales of beer and liquor are governed by post-Prohibition rules that maintain strict boundaries between manufacturers, distributors and retailers. In the three-tier system, makers of beer, wine and spirits create their products, distributors sell them, and bars and other retailers peddle the beverages to the public.

“The government’s interest is in preserving the integrity to the three tier system,” Watkins said. She said the state intends to prevent any overlap between the manufacturing tier and the distributing tier.

Watkins said the law helps the Texas Alcoholic Beverage Commission, for example, quickly remove tainted products from store shelves, if needed.

Arguing the case for the brewers, Matt Miller, an attorney for the Arlington, Va.-based Institute for Justice, said the case isn’t about the three tier system, but about fairness.

“It enriches distributors at the expense of craft brewers,” Miller said.

Miller said the law prevents many brewers from selling their products in some markets, which has the effect of providing less choice to consumers and fewer opportunities to expand for craft brewers that choose not to give away distribution rights.

As you know, I think the three-tier system is an archaic holdout from the Prohibition days that do nothing to enhance competition. Quite the reverse, in fact. Attorney Watkins went so far as to imply that success by the plaintiffs in this case would lead to organized crime, which thankfully the judge pushed back on. I’m rooting for the plaintiffs, as I’m sure you could guess. The judge says she expects to make a ruling in the next few weeks.

UberEats expands

Good news for those of you who like having food delivered.

Uber

A larger section of metro Houston now can use Uber’s meal delivery service seven days a week and with more dining options through a new app.

A new UberEats app, separate from the Uber ride-sharing app meal ordering customers have used, launches Tuesday.

“Houstonians have embraced UberEats, but we also know that with a separate app, we are able to give users a better experience,” said Sarah Groen, general manager for UberEats Houston.

As of the app’s launch, 100 restaurants are participating. More are being added to the list, Groen said.

The service’s operation hours have been extended beyond midday weekdays to daily between 10 a.m. and 10 p.m.

Users will be able to browse menus and order food from participating restaurants, and track drivers bringing their food. The service area has expanded beyond downtown and Midtown, and now includes the Galleria area, The Heights, Montrose, Rice Village, West University and Upper Kirby.

Those areas have shown large demand for UberEats, where the company has received many requests from people asking for service, Groen said. In January, the company did test runs in the new areas and registered high demand.

See here for the background. I’m still not the kind of person who likes to order food for delivery, so I’m still not in their market. But if you are, and you live in these areas, then these are good days for you. The Houston Business Journal and the Houston Press, both of which have maps of the expanded service area, have more.

Our long national breakfast taco nightmare is finally over

At long last, peace in our time.

With an escalating culinary battle threatening to destabilize the region, the mayors of Austin and San Antonio met Thursday morning to announce a taco truce.

“As St. Paul admonishes us, let us not be overcome by evil, but overcome evil with breakfast tacos,” Austin Mayor Steve Adler said. “We will have guac in our times.”

Adler and San Antonio Mayor Ivy Taylor sought to bring to a close a weeks-long feud between their cities over which has the better breakfast tacos, proclaiming peace with the signing of the “I-35 Accords” and declaring each other’s tacos similarly delicious.

As the history books will show, the Great Breakfast Taco War of 2016 was first ignited by a provocative article in Eater Austin from writer Matthew Sedacca, headlined “How Austin Became the the Home of the Crucial Breakfast Taco.”

Soon thereafter, a petition on Change.org to exile Sedacca from Texas quickly gained over 1,700 signatures, describing the Eater article as a “churlishly negligent treatise.” Sedacca’s “wild inaccuracies, which dangerously approach libel,” the petition reads, “have already stirred the ire of many South Texas communities and further discord may loom on the horizon.” Competing op-eds in the cities’ respective newspapers only further escalated the conflict.

But, proclaiming March 10, 2016 as “Breakfast Taco Day,” Adler and Taylor sought to put aside their differences and embrace their mutual appreciation of the popular morning meal.

“What we must do and what we will do is lead,” Adler said alongside Taylor at Austin’s downtown Hilton hotel. “And that means celebrating the fact that there is more that unites our tacos than divides them. Let us break our fast with the tortilla of hope and the egg of peace.”

And so possibly the dumbest controversy ever – okay, maybe the dumbest one of 2016 so far – comes to an end. Now go and eat whatever breakfast taco you like best. It’s all good. The Rivard Report has more.

I just don’t care about Blue Bell

Sorry.

Paul Kruse’s father had warned him about the perils of family-run businesses, but he couldn’t escape his place as the obvious heir of a dawning ice cream empire.

After ascending to the corner office in 2004, Kruse delivered Blue Bell Creameries to its greatest height, becoming the No. 1 U.S. brand.

This year, it took barely two months to undo everything.

Ironically, Blue Bell’s food-poisoning crisis could give it a one-up on competitors, because it already has been forced to make expensive changes to equipment and safety protocols that other ice cream makers soon will have to emulate under new federal regulations. It took most of the year to upgrade while other brands gobbled up market share.

Blue Bell, for most of its history, moved at a measured pace.

That strategy won ardent followers as Blue Bell went into rural markets where competitors wouldn’t or couldn’t reach. With Kruse still in the driver’s seat, the company’s future may hinge on his ability to return to a course charted by his forebears.

[…]

Before the listeria crisis struck in March, it sold more than $333 million, according to Euromonitor figures updated in August. As a privately held company, Blue Bell doesn’t publicly disclose sales. But by that reckoning, it had, in one quarter, sold more than half of what it did in all of 2010 – and peak summer sales hadn’t even set in yet.

All that production came with a price. Brenham plant workers said sanitation was hurried. Hot water ran low. And federal records showed that problems reached to plants in Oklahoma and Alabama, negating the possibility that the listeria outbreak was a failure of one supplier, one machine or one employee. Somewhere amid all that growth, reality couldn’t keep up with the clean country image. Worse, it hadn’t been keeping up for years. Epidemiologists this year determined that illnesses from as early as 2010 were caused by Blue Bell – retroactive medical sleuthing made possible by the DNA database.

I’m not a native Texan, so I have no emotional attachment to Blue Bell ice cream. It’s just another brand to me. My wife, on the other hand, is a native Texan, and she feels deeply offended by the betrayal of trust by Blue Bell, which acted awfully indifferent to its listeria problems until they were finally forced to act. For that matter, she’s offended by their long, incomprehensible list of ingredients, which look a lot more like a science project than something that could plausibly called “homemade”. If you love Blue Bell and couldn’t wait for it to come back to your grocery store, more power to you. I don’t get it, but I’m not going to judge. I do hope that if they ever have another problem even remotely like this that they’re not given the benefit of the doubt. Once was enough.

UberEats

Some new food delivery options, at least for some people.

Uber

Uber will expand its presence in Houston this week with the local launch of its meal-delivery service, UberEats.

Beginning Thursday, Houston becomes the second city in Texas and the 10th in North America where Uber drivers will deliver meals. Customers in downtown and Midtown can use the Uber app to select from a list of 60 participating restaurants and place orders, said Sarah Groen, general manager of UberEats Houston.

After customers order and pay through the app, the company says an Uber driver will arrive with the food – already in the car in temperature-controlled containers – within 10 minutes.

“We keep that geography fairly small to make sure we can deliver on that promise of 10 minutes or less,” Groen said.

[…]

Several app-based and online food delivery services already operate in Houston and for longer hours. They include GrubHub, Favor and DoorDash.

Groen said Uber Eats differs because of its changing menus. Some participating chefs are creating specific meals for UberEats.

I have no feel for how big a market there may be for something like this. We cook or we eat out – even when we order a pizza, from Pink’s here in the Heights, I pick it up. If you’re the sort of person that is into this sort of thing, then this is good news for you. We’ll see if there are enough such people to make this a success.

The latest example of how nuts our beer laws are

Ridiculous.

The latest flashpoint between Texas beer lovers and state beer law is a 32-ounce aluminum can that bars and restaurants fill with beer and sell to be consumed off-site. The can, called a crowler, is praised for its convenience and ability to keep beer fresh for longer than traditional to-go packaging.

The problem, state regulators say, is that the law prohibits retailers who do not have a manufacturing license from operating the filling machine.

On Tuesday, the Texas Alcoholic Beverage Commission made its most forceful statement to date, sending in agents to seize one from a bar that failed to cease operations after being ordered to do so.

The Cuvee Coffee Bar in Austin recounted the event on social media, giving it a Twitter hashtag of #crowlergate and setting the stage for another potential legal fight in the ongoing effort to change the alcohol code in Texas.

The friction began in late spring, when regulators heard about the growing popularity of crowlers and began investigating, often undercover. Several bars and restaurants were told to stop crowler sales and seven, including three in the Houston area, received letters threatening fines and a suspension of their beer and wine licenses.

They were given 30 days to remove the machine, which retails for $3,600.

In announcing Tuesday’s seizure at Cuvee, the TABC acknowledged the likelihood of a legal challenge.

“We know this issue is important to craft beer retailers and their customers, and we support all citizens’ right to petition the Commission, the Legislature or the courts if they feel a provision in the Alcoholic Beverage Code is unfair,” assistant chief for audit and investigations Dexter K. Jones said in a statement.

“However, we do not support the continued violation of the law just because a retailer disagrees with it. Cuvee Coffee ignored our repeated warnings and discussions, and that conduct resulted in TABC seizing the illegal equipment and subjecting its permit to a civil penalty. Other retailers who engage in illegal canning risk similar consequences.”

Local bar owners say crowlers have several advantages over growlers, the glass or metal containers more commonly used for to-go sales. Sealed cans keep beer fresher by insulating it from oxygen and any sunlight, they say, and they are convenient because customers don’t have to plan ahead and bring a growler with them when they go out.

This was the latest chapter in this story, but the first shots were fired back in July, and got heated up earlier this month. At its heart it’s a question of semantics – is a sealed one-use can fundamentally different than a reusable glass bottle? – but however you look at it, the bottom line is that our current laws make something that ought to be allowed illegal. This needs to change, partly because we’re not in 1933 any more, partly because the state allows wineries and distilleries freedom to operate that breweries and brewpubs don’t have, but mostly because it’s a bad deal for consumers. There’s already litigation over the state of Texas beer laws – it’s unclear whether this action will turn into a separate lawsuit or not – and I suppose there’s always hope for further change from the Lege. But one way or the other, this needs to change. Austin 360 and Eater Austin have more.

A brewpub comes back to Houston

In my ‘hood, no less.

beer

A new brewpub will open in the Heights with an accomplished veteran of the Texas craft-beer scene at the helm.

Delicious Concepts Restaurant Group, which owns Lola, Shepherd Park Draught House, Witchcraft Tavern and seven Pinks Pizza locations, announced Monday it has closed its Tex-Mex spot El Cantina Superior near the White Oak dining and entertainment area and will reopen in the same building as a restaurant that makes and sells its own beer on site.

The as-yet-unnamed “American kitchen”-style restaurant will have a pizzeria and butcher shop in-house. But the rotating lineup of lagers, India pale ales and Belgian-style and other beers – including guest beers and beers made in collaboration with other local breweries – will distinguish it from most Houston eateries.

Brewmaster Erik Ogershok, an industry veteran who helped develop the award-winning portfolio of beers at the Hill Country-based Real Ale Brewing Co., joins Delicious Concepts as a partner for this and any future brewing projects.

“This particular part of the project is just the beginning,” he said, declining to elaborate on other plans.

El Cantina Superior, 602 Studewood, had a rocky history after it launched last summer. The restaurant struggled, and Delicious Concepts brought in the management team from F.E.E.D. Texas, including the well-regarded chef Lance Fegen, to retool the menu and supervise kitchen and service.

The ambitious restaurant with colorful, quirky decor earned a positive review from Chronicle critic Alison Cook. But in May, the two restaurant groups suddenly parted ways.

Ken Sheppard, Delicious Concepts’ marketing chief, on Monday acknowledged the problems. He said the restaurant likely opened too quickly and was probably too different and too much larger physically from the others in the group. He said he was proud of El Cantina Superior’s recent work but admitted it was tough to overcome the early travails.

Plus, he said the group has wanted to open a brewpub for “a long time.”

I can attest to the El Cantina’s rocky history. It generated a ton of scathing reviews on Nextdoor Heights when it first opened, then a bunch of “no, wait, it’s really good now” emails after F.E.E.D. took over, and then back to the bad after they left. Our personal experience with the place matches that pattern. It’s a shame as far as that goes, because when it was good it was really good, and there wasn’t anything quite like it nearby. Oh, well. This will be Houston’s first brewpub since 2010 when Two Rows in the Rice Village closed down. There are a lot of good options for both food and beer within walking distance of this location, so they’re going to have to do well on both counts to survive. Not clear when the new place will be up and running, but I look forward to it.

Lone Star Veterans Association benefit event

From the inbox:

To celebrate the upcoming football season, and to benefit the Lone Star Veterans Association (LSVA), the Houston Texans Grille at CITY CENTRE will host a “Pay What You Want” Day on Monday, July 20th. All of the proceeds will be donated to the Lone Star Veterans Association.

During this all day event, patrons may select one food item from the full menu, and pay any amount they are able to as a donation. And 100% of the proceeds raised from food sales will benefit the Lone Star Veterans Association!

Event is free and open to the public.

The Lone Star Veterans Association is a Houston-based non-profit organization dedicated to making Houston and Texas the best place for Post 9/11 veterans and their families by providing free career transitions, peer support and family services. LSVA’s office is open Monday through Friday 8am – 5pm, at 170 Heights Blvd. Houston, TX

To learn more about the Lone Star Veterans Association please visit lonestarveterans.org. To view Houston Texans Grille menu visit texansgrille.g3restaurants.com.

Who: Houston Texans Grille at CITY CENTRE
What: Pay What You Want pricing on one item from full menu
When: Monday, July 20th from 11:00am – 10:00pm
Where: Houston Texans Grille at CITY CENTRE, (I-10 W & Beltway 8), 12848 Queensbury Way, Houston, TX. 77024. (713) 461-2002

• Limited to Dine-In orders only (no Take-Out or To-Go orders)
• Maximum of one (1) entrée per guest under “Pay What You Want” pricing
• Guests may only dine-in one (1) time during the day to ensure all customers are served
• Any appetizer, entrée, or dessert on the menu will count as one (1) “entrée”
• “Pay What You Want” pricing offer excludes all alcoholic and non-alcoholic beverages

See here for more. It’s a good cause and there’s food involved, so check it out if you can.

Keg dispute

Your beer choices at certain fancy restaurants in Houston have been curtailed.

beer

A dispute over deposit fees for kegged beers could slow the flow of several craft brands, including a few that are made locally, at some of Houston’s best-known bars.

The issue boiled over this week when Silver Eagle Distributors instituted an unannounced 20 percent hike in the deposit it charges retailers when they purchase kegs filled with beer, local proprietors said.

Two said they will stop purchasing kegged beer from Silver Eagle, at least temporarily. Affected brands include Houston’s Saint Arnold, Karbach and 8th Wonder, and such national brands as Firestone-Walker and Sierra Nevada. Because of state laws governing how beer is sold in Texas, no other wholesalers are allowed to carry those beers in Houston.

“It’s a really hard decision,” said Kevin Floyd of the Montrose craft beer bar Hay Merchant, referring to the decision to not have the local beers on tap.

But he said the $10-per-keg increase, to $60, double what it was just a few years ago, has prompted him and other bar owners to act.

Although the deposit technically is refunded when a keg is returned to the distributor, the retailer typically doesn’t see the money because the credit is immediately applied to the next keg. Depending on the size of the bar, the deposits could tie up thousands of dollars.

“That’s money that’s just caught up,” said Ben Fullelove, owner of the Petrol Station in the Garden Oaks/Oak Forest area. “You’re not going to see that money again unless you close down.”

Fullelove, who usually has 70 to 100 kegs on hand from various distributors, said he will be out of those supplied by Silver Eagle by the end of the weekend and does not intend to purchase more unless the deposit hike is rescinded. He said he wants to support local breweries as well as the national brands his bar is known for carrying. But he, too, cited the steep increases over the last six years and said enough is enough.

“How does it end?” he said. “Suddenly I’m paying $100 a keg? $200 a keg after a year?”

In an emailed statement attributed to John Johnson, executive vice president of sales and marketing, Silver Eagle Distributors cited increases in the deposit fees it has to pay when it receives the kegs.

“These deposit fees are a standard operating procedure in the industry and from time to time are increased by suppliers, resulting in an increase by distributors,” the statement read. “As a result, Silver Eagle recently increased the amount of its refundable keg deposit.”

Hope this doesn’t ruin anyone’s dinner plans. For a perspective from one of the microbreweries affected by this, read what Scott Metzger of Freetail Brewing has to say. From my perspective, this just highlights another flaw in Texas’ byzantine tiered distributorship model for wholesale beer sales. In a sane world, there would be more than one way to get their beer from the breweries to the retailers. Microbreweries won some freedoms from the Legislature two years ago, but they still don’t operate in anything resembling a free market. This is just one illustration of that.

Karbach’s new brewery

As we know, Houston has a lot of craft breweries, with the venerable Saint Arnold being the biggest, oldest, and best known. With the forthcoming opening of their new facility, I’d say Karbach is making a strong case to be next in the pecking order.

Karbach, founded four years ago by a pair of longtime distributors/importers who brought resources as well as experience to the enterprise, stands out even in an industry where rapid growth is the status quo and where production volume soared in double digits again last year.

In 2013, Karbach was cited in a New Yorker analysis as the second-fastest growing craft brewery in the U.S. and 2014 was a scorcher as well. Crews worked around the clock to brew 32,600 barrels of Hopadillo, Weisse Versa and other beers, and the only thing that kept them from making more was capacity.

The size of the new brewery, which faces Dacoma, around the corner from the original facility at 2032 Karbach, just outside Loop 610 in northwest Houston, addresses the immediate needs and leaves room to add on later. [Brewmaster Eric] Warner said the new equipment and automation upgrades also should improve quality and virtually eliminate inconsistencies between batches.

He and his team are already making beer there and plan to open the brewery to the public on or about May 15, slightly behind the originally announced first-quarter target date.

The facility goes live as the industry continues an enviable upward trajectory. In 2014, craft sales rocketed ahead 18 percent even as overall beer production rose a mere half-percent, the industry trade group reported at this month’s Craft Brewers Conference. A record 3,418 breweries are now in operation, figures compiled by the Brewers Association show, and 2,051 more were in the planning stages as of Dec. 31.

Across greater Houston, 29 brewery and brewpub licenses are on file with the state and most of those operations are up and running. In addition, strong brands from other states continue to expand into Texas.

Warner, who came to Houston in 2011 with a nationally recognized résumé in craft brewing, sounded nothing but confident about Karbach’s growth plans in this environment.

“Craft is here to stay,” he said. “I have no doubt about that. Craft is growing and will continue to take share.”

The primary challenge ahead will be to maintain shelf space at stores and tap handles in bars and restaurants, Warner said. In that regard, he thinks high-quality local brands will have a distinct advantage. He said Karbach plans to expand to the Dallas area this year but has no out-of-state plans until at least 2017.

“There are 30 million people in Texas,” Warner said. “A lot of beer drinkers.”

Another potential challenge, he added, would be if global giants such as Anheuser-Busch InBev, which last year made 13 million barrels of beer at its Houston plant alone, stop “dabbling” in craft beer styles and begin competing seriously with the Karbachs and Saint Arnolds.

Again, Warner sounded confident about the future, describing his company’s success in less than four year as “surreal.” He readily acknowledges the advantages Karbach has over many of the young breweries that are starting with far less capital.

I like Karbach, though Saint Arnold is still my favorite locally. I do need to take a tour of their new facility, which is one of several near where I live. As far as the macrobrewery threat is concerned, I just don’t see the AB-InBevs of the world seriously competing in that space. It’s not who they are, and I don’t see the type of person who drinks craft beer being lured to a craft beer-style product they might market. I think it’s more likely the big boys might try to buy up a bunch of craft brewers, like Microsoft or Google acquiring startups. I don’t know why they haven’t been doing that all along, to be honest. Be that as it may, congrats to Karbach on the new digs, and best of luck with the restaurant venture.

Who’s up for a macrobrewery tour?

This used to be a thing in Houston, and now it is once again.

beer

The local Anheuser-Busch plant was under construction at the same time as the Astrodome, and its ambitions were just as grand. With an annual capacity of 900,000 barrels of beer, it would be the biggest brewery Houston had ever seen when it opened in 1966.

It would draw its fair share of visitors as well. For a couple of years in the early 1970s, the 105-acre plant grounds were home to an avian-themed park called Busch Gardens, which included an Asian-style pagoda, boat rides and a domed ice cave. College students in miniskirts worked as hostesses during the summer.

Even after the park closed, Houstonians curious about malt, hops and “beechwood aging” made their way east down Interstate 10 to tour the brewery and hoist complimentary beers in the hospitality room.

But by 1996, attendance had fallen to the point that the corporate owners decided to do away with regular tours. The workers would remain focused on producing Budweiser, Bud Light and other well-known beers by the hundreds of millions of cans and bottles, but the public would be kept at bay.

Nineteen years and a sea change in the U.S. beer industry later, the company is throwing open the doors again in an effort to reconnect with consumers. An array of craft breweries unheard of two decades ago has nibbled away at market share, gaining fans not just with innovative products but also with wildly popular tours and special events that pack in crowds and send them home in branded T-shirts and ballcaps.

Damola Oshin, general manager of the Anheuser-Busch brewery, credits Houstonians’ growing interest in beer with the decision to reinstate tours here next week.

“We are the largest brewery in the state and we do need to get people in through our doors and show them what we do,” he said Thursday.

Beginning April 10, the brewery will be open from 10 a.m. to 6 p.m. daily. Visitors will be guided through the brewing and packaging areas and wrap up in a renovated tasting room for complimentary samples. A gift shop includes souvenirs from hats, T-shirts and coolers to stuffed Clydesdale toys.

[…]

Saint Arnold Brewing, the only local craft that was open in 1996, draws an estimated 70,000 visitors annually to its tours and tastings and another 30,000 to other events at the brewery, owner Brock Wagner said.

Now Anheuser-Busch wants the public to know its employees are as passionate and as proud of their work as are craft brewers, Oshin said.

Good for them. My wife, who grew up in Houston, has some fond memories of the bird park at the brewery that kids played in while their parents could quaff a cold one after a tour. I’d be interested in touring the place just to see what it’s like; I vaguely remember a visit to Busch Gardens in Tampa while on spring break in the 80s, which included a brewery tour. I have no desire to sample or buy any of their product, but I’m sure the operation would be cool to see.

Beer legislation 2.0

Just because craft brewers succeeded in passing a bill allowing them to sell beer for consumption on their premises last session doesn’t mean there isn’t more that can be done to advance the cause of beer freedom.

TexasCraftBrewersGuild

Twinned bills introduced this week would extend direct sales for breweries. The proposals by state Sen. Kevin Eltife, R-Tyler, and state Rep. Jim Keffer, R-Eastland, would let customers buy beer that they could take away and drink later.

“This gives Texas breweries the same rights already enjoyed by wineries, distilleries and many of their out-of-state competitors,” Keffer said in a written statement distributed by the Texas Craft Brewers Guild.

Under the bill, consumers would be restricted to a single purchase of no more than the equivalent of two cases of beer each month at a brewery. Advocates say this type of “souvenir” beer, often sold following tours or special events, can be an effective marketing tool.

“This legislation is designed to finish what we started last session and bring people from around the country to this state which is rapidly becoming the epicenter of craft brewing quality,” Eltife said in the statement from the Brewers Guild.

[Rick] Donley said the Beer Alliance [of Texas] is still digesting the details of this and other legislation affecting alcohol sales in Texas, but he sounded skeptical.

The Beer Alliance and major wholesalers have contributed many hundreds of thousands of dollars to numerous political campaigns in Texas since the beginning of 2013. Major recipients include Gov. Greg Abbott and Lt. Gov. Dan Patrick, but the Beer Alliance of Texas PAC also gave a total of $5,000 to Eltife in June 2013, Texas Ethics Commission reports show.

Donley said it has been only a year and a half since the most recent law changes went into effect, and his organization would like more time to see how that plays out in the marketplace.

He also said he thinks the two-case-per-month limit is too high and he would want an annual cutoff on how much breweries could sell this way. The exemptions approved in 2013 limited breweries to selling no more than 5,000 barrels of beer on site. While the bill currently does not specify an annual limit, a spokesman in Eltife’s office said the 5,000-barrel limit would still apply to all beer sold on site, whether it was sold for on- or off-premise consumption.

Donley said the ongoing success of Texas craft brewing further suggests the industry does not need additional help.

[…]

Brock Wagner, owner and founder of Houston’s Saint Arnold Brewing Co., insisted the craft brewers are not seeking to replace traditional retailers. Rather, he said, this legislation would address the most common question from tour and special events visitors – why they are not allowed to buy beer to take home – and boost awareness of the brands.

Wagner also said lawmakers are probably more inclined to view craft brewers as important small businesses that deserve the state’s support.

See here and here for some background. As noted by the Texas Craft Brewers Guild, the bills in question are Senate Bill 1386 and House Bill 3086. I understand the Beer Alliance’s hesitation – and it should be noted that they were among the good guys in 2013 – but it’s still crazy when you think about it that brewers can’t sell a six pack or two to the people that come to visit their facilities. It would be one thing if there were a blanket prohibition on all forms of booze, but that’s not the case – Texas’ wineries and distilleries can sell bottles on site. So can microbreweries in other states. What Texas does makes no sense, and it’s all about what the big brewers and distributors want. The difference between the faith in free markets that people constantly proclaim in this state and the actual freedom of some specific markets never fails to boggle my mind.

Anyway. As those links above point out, there were other issues that the 2013 legislation did not address that remain untouched by these bills. Licensing fees remain high, and microbrewers were forced by another bill from 2013 to give away their territorial distribution rights instead of being allowed to sell them. Again – crazy, right? A lawsuit was filed last December to overturn that law. I don’t know where that stands now, but there’s apparently no legislative fix for it. So, while this has been a lot more low-key this session, there’s still a lot to be done to make the beer market in Texas what it should be.

The Fair BEER Act

I’m in.

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The act would reform the federal beer tax imposed on brewers and beer importers and give a special boost to small brewers. The idea is to create a laddered rate that is based on how much a brewer produces, much the same way the income tax rate is higher the more money you make.

Currently, brewers are charged $7 a barrel on the first 60,000 barrels and $18 on every barrel thereafter. Two tiers do not address the wide variety of brewers in the market today.

The act, which was introduced by U.S. Reps. Steve Womack, R-Ark., and Ron Kind, D-Wis., would establish a more subtle schedule:

– No excise tax on the first 7,143 barrels;
– $3.50 a barrel on barrels 7,144-60,000;
– $16 a barrel on barrels 60,001-2 million; and
– $18 a barrel on every barrel above 2 million.

The 7,143 barrel cutoff is tied to the Treasury Department’s definition of a small brewer, which applies to 90 percent of American breweries. These are the small business people who provide variety to local bars and super-markets, but are not large enough to see economies of scale, to afford big marketing budgets or to sign national distribution deals.

[…]

The act has more than 20 co-sponsors, but none are from Texas. That’s a glaring omission since Texas has the second-largest congressional delegation and a rich history of beer brewing.

That’s for sure. It’s a bipartisan small business tax cut that would benefit a lot of Texas breweries. I have no idea what the hangup is. There’s not a whole lot of legislation worth supporting out of this Congress, so let’s grab the few good bills there are with both hands. The Fair BEER Act is HR 767, and you can see some more information about it here. This press release has more.

My craft beer options runneth over

2015 could be a very fine year.

My personal beer map

Several local brewery construction projects headed for completion in 2015 are designed to draw in visitors as well as ship beer out the door.

The neighborhood-centric Town In City Brewing Co. in the Heights could open in February, co-owner Justin Engle said earlier this week, as workers poured and leveled concrete for sidewalks and a driveway entrance into the startup brewery at 1125 W. Cavalcade.

In addition to selling beer to other retailers, Town In City will open each Wednesday through Sunday for customers to buy beer that they can drink in its 700-square-foot taproom or 1,400-square-foot outdoor beer garden. Food trucks will be invited on-site, and there will be a dedicated secure bicycle parking area.

Engle said the goal is to create a neighborhood gathering spot like many of the breweries he enjoyed visiting when he lived in Colorado. He’d prefer a steady daily business to a more crowded once-a-week tour.

Engle and partner Steven Macalello bought a vacant lot on Cavalcade, between Main and Airline, and built a brewhouse with initial capacity of 2,300 barrels of beer a year. Watching over the final concrete pour was a major step for a project that began more than 3½ years ago.

“I’m ecstatic,” Engle said.

Meanwhile, Brash Brewing, at 510 W. Crosstimbers in Independence Heights, also could begin producing beer in February. Owner Ben Fullelove said the brewery plans to install glycol lines for chilling next week and get a final city inspection soon after. It’s licensed as a brewpub, though Fullelove said it won’t be open to the public right away.

“We are almost done,” he said in an email.

Although its beers have been brewed under contract in Massachusetts since 2012, Brash has strong Houston roots. Fullelove founded craft beer hot spot Petrol Station, and he hired Vince Mandeville, formerly of Saint Arnold, as head brewer for the local operation.

[…]

Last spring, Karbach broke ground on a $15 million project that will do more than just boost capacity.

The project, facing Dacoma on a 1.2-acre tract adjacent to the current brewery at 2032 Karbach, includes not only a new 19,000-square-foot, two-story brewery but also a public tap room and kitchen that will be open daily, plus space upstairs that will be available for special events.

Spokesman David Graham said Karbach hopes to open the space around the end of the first quarter.

I’ve highlighted these three breweries, plus Buffalo Bayou Brewing, on the embedded map. All are within about ten minutes of my house, with Buffalo Bayou and Town In City both being within biking distance. City Acres up on 59 North isn’t too far away either. I’m thinking I need to plan a few weekend beer tastings once the weather gets warm and all these places are open. Sounds like a good reason to get out of the house and hang out with some friends. For all that could be better in the world today, we do live in prosperous times.