Rob Tod, the founder of Portland, Maine-based Allagash Brewing, cautioned attendees of the virtual Mass Brewers Guild conference that they’ll need to lean on each other for support.
“Are we going into a time of headwinds and has COVID accelerated it? I would argue yes,” Tod said. “But I would argue also that it’s more important than ever to stick together right now.”
Tod shared wisdom gleaned from his decades in the beer industry and offered observations of the past seven months during the COVID-19 pandemic. Allagash turned 25 in 2020, and what would have been a year of anniversary celebrations turned decidedly more somber.
“All those plans are out the window for a bunch of reasons,” Tod said. “No. 1: People were not doing any social gathering — understandably — this summer, but also our budget.”
Prior to the pandemic forcing the closure of on-premise establishments, Allagash sold about 70% of its volume through bars and restaurants. When taps stopped flowing nationwide, Allagash pivoted and sped up its innovation pipeline to produce new products (the Little Grove line of fruited sessional ales and Belgian-inspired stout North Sky) and a new packaging format, 6-pack bottles, for its flagship Allagash White.
One thing that hasn’t changed since the pandemic started is Allagash’s dedication to upholding the values certified in its status as a B Corp.
“It’s an independent assessment that certifies that when we make decisions, we don’t just consider our shareholders,” Tod said. “We consider our stakeholders, which is the community, the employees and the environment.”
In a normal year, Tod estimated that Allagash donates about $350,000 to local organizations. But with such steep declines in revenue caused by the pandemic, that level of giving wasn’t possible.
“We’re figuring out creative, different ways to give back to the community, but we’re continuing to prioritize giving back,” he said.
In April, Allagash sold care packages of beer to medical employees and first responders for $1, and donated all proceeds to the Barbara Bush Children’s Hospital in Portland. Earlier that month, the brewery donated 100% of profits from its Nowaday Blonde Ale to Good Shepherd Food Bank in Auburn, Maine. A few weeks ago, Allagash sold bourbon barrels used to age Curieux and donated the proceeds to a local school to purchase laptops for students taking part in distance learning.
The company has taken steps to prioritize employee well-being by offering free flu shots for staff and their families, adding fire pits to the property so employees can gather safely as the weather gets colder, and securing 10 hours of therapy each week at a local mental health counseling firm for the next six months.
“We’re talking about this a lot — normalizing the mental health challenges that are on the horizon, and just doing what we can to support employees,” Tod said.
Allagash has also signed on with Crafted for All, the diversity-centric education and training platform founded by Brewers Association diversity ambassador Dr. J. Nikol Jackson-Beckham. Tod said he hopes the beer industry will look different on the other side of the fundamental shift the pandemic has caused.
“There’s probably not a lot of hiring going on in the craft industry right now,” he said. “This is a perfect opportunity for us to work on this front, so when things do turn back around and when we’re hiring again, hopefully this industry can make some progress on the diversity and inclusion front.”
Advice for Fellow Craft Brewers
Tod offered Massachusetts Brewers Guild members five key focus areas that served his company well over the last 25 years.
“They’re not as glamorous as opening new states or getting a new shiny brewhouse or tanks delivered,” he said. “They’re not as glamorous as being able to report that you grew 30% year-over-year-over-year. But these are just extremely important, fundamental things that we have worked on since Day One.”
Todd encouraged brewers to pay attention to these five tenets, “because it will treat you well, especially in the tough times.”
Safety: Tod hired a Vermont-based safety consulting firm to compile safety manuals as soon as he hired his first employees.
“That’s been important at Allagash since Day One,” Tod said.
Growing Incrementally: “Growing incrementally has always been something which we have believed strongly in, and we’ve really tried to minimize taking big risks or leaps,” he said. “I’ve never wanted to be in a position where, if 30% year-over-year-over-year growth doesn’t happen after a big expansion, we’re still OK.”
Quality: In addition to quality checking its own beers, Allagash offers lab services to smaller local breweries too. Before the pandemic, Tod hosted the brewery’s new bank loan officer for a tour and she noticed cans from other breweries in a cooler. When he explained they test samples for other breweries, the loan officer was surprised.
“She was just shocked that one competitor would help another competitor,” Tod said. “You know, that’s just how this industry is.”
Strategic Growth: Tod cautioned other brewers from growing too quickly and expanding too far beyond their home markets.
“That’s something that I actually learned the hard way during our tough times from 1997 to 2007; I honestly got spread way too thin,” he said. “Just to survive, I opened up every single state where people would buy beer and by the mid 2000s, I realized we were kind of doing a mediocre job, at best, everywhere.”
In February, Tod delivered the keynote address at the Maine Brewers’ Guild’s New England Brew Summit and shared that in 2005, Allagash sold 5,000 barrels of beer in 26 states. By paring its markets down and focusing on territories where its beer had grown roots, it sold 100,000 barrels in 15 states in 2019.
“There’s no question during COVID, these are tough times — it’s tempting to react by doing things like opening new states,” he said. “I would just encourage you if you do it to think long term and make sure you can support those markets.”
Get Involved: Tod urged attendees to foster industry relationships and stay on top of governmental affairs, such as the Craft Beverage Modernization Tax Reform Act that would make federal excise tax relief permanent.
“Whether times are good or bad, get involved and work together as an industry to support these efforts that are absolutely in the best interest of everyone,” he said.