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ARENA – Tom Porter met with Kirby Nelson for the first time in 1999 at a Wisconsin Brewers Guild meeting in the back room of former J.T. Brewpub of Whitney on the West Side of Madison.
Deb Carey, co-founder of New Glarus Brewing Co., was present. The same was true for the heavyweights of craft beer: Randy Sprecher of Sprecher Brewing Co. in Milwaukee, Rob Larson of Tyranena Brewing Co. in Lake Mills and John Zappa, longtime brewmaster of Stevens Point Brewery.
A friendship was formed that night between Nelson, then Capital Brewery's award-winning brewmaster in Middleton, and Porter, who would then open his Lake Louie Brewing Co. six months later at Arena. Nelson, after 25 years with Capital, would leave to help found the Wisconsin Brewing Co. in Verona in 2013.
Kirby Nelson, on the right, was a brewer at Middleton's Capital Brewery for a long time before joining Carl Nolen at the Wisconsin Brewing Co. in Verona in 2012. Nelson has also been a mentor for Tom Porter at Lake Louie Brewing Co. in Arena.
Now both brewers will work under the same roof.
In what appears to be the first acquisition of a Wisconsin-based brick and mortar brewing business by another state-owned craft beer producer, WBC has agreed to buy the assets and the Lake Louie brands. And this comes as the sector has evolved considerably, has become more competitive and the production of craft beer throughout the state has slowed down since its rapid pace.
"He taught me a lot," Porter said of Nelson. "Having us in the same building will be crazy."
Tom Porter, of Lake Louie, left, and Carl Nolen, of Wisconsin Brewing Co., have been friends for almost 15 years. Once the brewery has been sold, Porter will continue to oversee Lake Louie's brands, but will have more time to tinker around his backcountry property in Arena.
But the purchase, disclosed exclusively at the Wisconsin State Journal, is just one of the big changes in store for WBC.
Expansion of $ 6 million planned
In an effort to diversify and expand its business, WBC is planning a $ 6 million expansion and will begin this fall to produce non-alcoholic health and nutritional beverages for other contracted companies. The move could add 80,000 barrels of production per year to the Verona brewery plant which, in 2018, was producing 18,404 barrels of beer for itself and other brewing companies. This has made it the fourth largest state-owned brewery, according to data from the State Department of Revenue.
But unlike beer, which can take weeks or even months to ferment in expensive tanks, non-alcoholic products can be mixed one day and then packaged and shipped the next day. They will also help boost the brewery's bottom line in a booming market with many other beers.
Carl Nolen undertakes a major shift in the Wisconsin Brewing Co. Not only did he buy Lake Louie, but WBC will soon start producing soft drinks and nutritional drinks for other companies.
Carl Nolen, President of WBC, said the project would add a high-speed canning line by this fall, which would put an end to bulk beer trucking at Stevens Point Brewery for packaging and would allow WBC to pack a wide range of products. A second phase could add up to 40,000 square feet of space by the middle of 2020.
Meanwhile, WBC continues to diversify into a wide range of beverage categories, but not sodas. The company will begin production this fall of two health and nutrition companies and a brewer, all from outside Wisconsin.
"We do not see ourselves solely as a brewer," said Nolen, former president of Capital Brewery, who had attempted to buy back the company before opening WBC with his brother Mark Nolen, Nelson, and D & B. other investors. "We are a beverage company. Everything is on the table. "
Tim Wauters, a long-time brewmaster at Lake Louie Brewing Co. in Arena, is working on a batch of tart beer. Wauters has seen the brewery grow over the years in size and production.
In the Lake Louie contract, Porter will retain the ownership of his brewery at Arena. He and his three employees, including longtime head brewer Tim Wauters, will be working for WBC. Brands such as Warped Speed Scotch Ale and Tommy's Porter will still be produced but by WBC. The distribution will remain unchanged and WBC will lease Porter's 15-barrel brewing kettle and WBC fermentation tanks for small-scale production as well as research and development for Lake Louie and WBC beers. Warped speed sold in barrels is already produced in Verona, since it accounts for about a third of Lake Louie's sales. Once the expansion is complete at WBC, all Lake Louie and WBC short-run production will be transferred to Verona and the brewing equipment at Arena will likely be sold by Porter.
"We want (Tom) to oversee Lake Louie's production because it's Lake Louie," Nolen said. "We want to develop Lake Louie as hard as possible, innovate and evolve into different products. Not all agreements need to be signed, but agreements that make sense are what we want. We think this is an excellent opportunity. "
Kathy Hiteman, director of retail at Wisconsin Brewing Co. and wife of WBC president Carl Nolen, is packing boxes of ReFresh Radler. A high-speed canning line is expected this fall. It will automate the packaging process and prevent most of the beer brewed at WBC from being shipped in bulk to the Stevens Point brewery for wrapping.
Nolen thinks Lake Louie, which has no marketing department or sales, could grow from 3,295 barrels in 2018 to 10,000 barrels, down 17.6 percent from 2017, according to department data. of State Revenue compiled by Wisconsin brewers. Guild. This expected growth will result from an increase in marketing and sales of WBC, which features a tasting room and its huge outdoor brewery, which last year brought together 100,000 people in the brewery.
The Lake Louie logo will be unveiled on the brewery side on July 1 at the time of the agreement. Porter, guitarist and passionate collector, will come on stage this Thursday at 18h. to WBC with The Growlers to celebrate the deal.
"We are the first to do it, but we will not be the last," said Porter about a state-owned brewery with a facility selling to another craft beer manufacturing company. "Quality control is essential, but the competition has progressed a lot. When there were 30 breweries, you could be pretty good at this job. Now you must be a crazy-good jet pilot. "
Tom Porter has amassed a large collection of guitars that occupies an entire room of his house, which is next to his brewery. Porter will play guitar with The Growlers on Thursday at Wisconsin Brewing Co. to celebrate the sale of his business to WBC.
Opened in 2000
When Porter opened his brewery in January 2000, there were 1,564 breweries across the country. According to the brewers' association, there are now more than 7,450 breweries. Others are on the cusp of offering an unprecedented beer selection to consumers who have abandoned brand loyalty for exploration. The movement, which includes nearly 180 breweries and breweries in Wisconsin, has also challenged brewers, regardless of size, to grab the shelves of retailers and coveted taps from bars and restaurants.
WBC buys Lake Louie less than two weeks after Boston Beer Co. announced plans to acquire Dogfish Head for $ 300 million, due to similar market pressures.
"Consumers have a lot of choices and that's good. But the challenge, of course, is that small and medium-sized breweries maintain their level of production and remain relevant, "said Mark Garthwaite, executive director of the Wisconsin Brewers Guild. "I'm glad Lake Louie stays at home in Wisconsin, but more importantly, it's (with) people I know and respect. I think the Lake Louie brands will be in good hands. "
Lake Louie Brewing Co. at Arena was founded in 1999 and brewed its first batch of beer in January 2000. About 60% of its production is Scotch Ale Warped Speed.
Back in rural Iowa County, the Arena Pines & Sand Barrens State Natural Area is located between the Wisconsin River and the Porter Estate, home to a vast home filled with guitars, retro furniture and a growing collection of Japanese pachinko games of chance. The only Louie Lake dock, named after his uncle, who purchased the property in 1989, is under water and the turtles will soon begin to cross Porter's gravel driveway.
When Nolen arrived last week for a visit, Porter, who can repair every piece of his brewery equipment, was tired of trying to find a room for the brewery's filtration system and complaining about the loss of bluegill and largemouth bass that have died in its winter lake. Porter's arbor vitae was also decimated by the deer.
Tom Porter, owner of Lake Louie Brewing Co., presents his collection of Japanese Pachinko games of chance. Games use steel balls to collect points when they fall from the top on a grid. Porter is a mechanical engineer and likes to repair and play games.
Porter is about to retire, both of his knees have been replaced and his treatment for prostate cancer is a success. The diagnosis was made last summer in the midst of negotiations with WBC, which delayed the sale.
"All of this was put on hold because when I had the diagnosis, it was not a very good diagnosis," Porter said. "But they put me in treatment and it was great and all is well. I will probably live another 20 years, so I have to pay my notes. "
Lake Louie Warped Speed has been the iconic beer on Lake Louie for years.
Porter started Lake Louie after mortgaging his home and cashed his 401 (k) retirement account. He restored a brewery of three barrels in a 576 square foot storage shed on 18 acres that he bought from his Uncle Louie and where Porter built his house in 1992.
After the first year of brewing, Porter had his beer in three taverns and delivered the kegs in his Geo Prizm. The news spread and in 2002 he was forced to spend $ 650,000 to add 1,500 square feet of space and equipment. In 2007, it added an additional 1,800 square feet and spent $ 175,000 in 2011 to add fermenting tanks and sparkling vats. That same year, a bottle of Porter's Kiss the Lips API was among the Wisconsin beers served at the White House during President Barack Obama's Super Bowl night.
Tom Porter opened his Lake Louie Brewing Co. in 2000 after rebuilding a three-barrel brewery in a 576-square-foot storage shed and evicting his father's motorhome and his brother's snowmobile. The shed was on 18 acres that he had bought from his uncle Louie in 1989 and where Porter had built his house in 1992.
Now, by selling to WBC, Porter is entering a new phase of his career, and he hopes that she will develop her beloved brands.
"The old line that I've been using for a few years now is:" Oh yes, there's a new brewery in Wisconsin every month, but you do not see them pouring more concrete into the liquor store, is not it? do not add, "said Porter. "You must maintain your presence. And that's where all the marketing knowledge comes in. If you're in fashion, that's fine. If you are not, you are done. "
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