First in a series on a growing Colorado Craft Brewing trend
New brewery openings in Colorado grab the headlines weekly. It is an exciting time to be a craft beer lover or brewer in The State of Craft Beer; it’s a playground of flavor with most breweries started by someone who is more than likely a friend of a friend. It is not uncommon in our State to have a friend who works at a new start-up brewery because they “just like being a part of the industry and culture.” That’s in contrast to the other headlines coming out covering, the BIG deals, the buyouts: Anheuser-Busch InBev recently taking over notable Washington State brewers and private equity groups buying stakes in craft brewers. In mid-July it was even announced that Firestone Walker will become part of Duvel Moortgat as they continue to invest in American Craft Brewers. What will these deals mean to craft beer and its culture? One thing is certain these buyouts have a major impact on the local control and identity of some craft brewers.
There is another, alternative story in Colorado that might not be as exciting to the national media as new brewery openings or the big buyout deals, but in terms of what is driving the brewery culture in Colorado it is a massive. The trend is called an ESOP, or Employee Stock Ownership Program. In short, these plans usually involve a third party financer and provide capital exit or return for the ownership and at the same time provide a plan for employees to own a share of or all of the company.
New Belgium Brewing has led the way in the State with an employee stock ownership plan in place since 2000 and in 2013 became 100 percent employee-owned through an ESOP. Left Hand Brewing and Odell Brewing both announced ESOP plans in July 2015. Eric Wallace, Left Hand’s CEO and co-founder said “implementation of the plan increases employee ownership at the brewery to about 100.” Doug Odell says his plan creates “about 115 owners.” With over 200 new Craft Brewery owners announced last month this trend is worth understanding deeper. In the next several posts I will be talking with brewery owners about their vision and motivation for implementing an ESOP as well as exploring the impact with employees. I’m also interested in how employee ownership will affect the fabric of the Colorado beer culture. Many of you might already be drinking a pint next to a new brewery owner.
Dave Cole is the co-founder and co-owner of Epic Brewing Company. The Colorado brewery is located at 3001 Walnut St. in Denver’s RiNo Neighborhood.
