Washington creates beer commission

The Associated Press/YAKIMA, Wash.
By SHANNON DININNY
Associated Press Writer

NOV. 15 12:30 P.M. ET In Washington state, where the brewpub craze was launched two decades ago, craft brewers have created a new state-sanctioned commission to better market their ales to consumers.

The group will represent licensed breweries that produce less than 100,000 barrels annually per location. With 84 microbreweries, Washington trails just California and Colorado.

The commission may be the first state-sanctioned promotional group for craft brewers, according to Paul Gatza, director of the Brewers Association in Boulder, Colo. The group counts 905 craft breweries as members, producing seven million barrels of beer in 2005.

"That it's part of the state government system, that it's recognized as a pretty important agricultural product to the state, makes it exciting," he said. "When you're dealing with an alcoholic beverage industry, it's hard to get the state to get anywhere near it except to regulate it. But to promote the quality of the state's beers is just a wonderful direction."
Beer is big business in the Pacific Northwest. In the early 1980s, the late beer pioneer Bert Grant laid claim to what was believed to be the first American brewpub since Prohibition in central Washington's agricultural Yakima Valley.

Three-fourths of the nation's hops -- providing much of the flavor and aroma of beers and ales -- also come from Yakima Valley.

Sales of craft beers continue to escalate. For the first six months of 2006, microbreweries saw increased sales of 11 percent nationally, Gatza said.

"It's going to be a banner year," he said. "What's even more interesting in Washington, because there is so much strength of the industry there, even though some of them are very small, is that this should get a pretty nice pool of resources to market with."

The Washington commission will collect a 10-cent per barrel assessment on a maximum of 10,000 barrels per brewer, as well as revenue from commission-sponsored festivals, to pay for promotional activities.

State lawmakers approved the commission during the last legislative session. Valoria Loveland, director of the state Department of Agriculture, announced its inaugural members Monday.

"Most people are working at capacity or near capacity to try to keep up with demand, which is great. I love it," said newly appointed commissioner Jeff Smiley of Baron Brewing Co. in Seattle, which produces Germany-style beers. "It's the perfect time to be getting out and talking about our products."

Members are hoping to replicate the success of the Washington Wine Commission, which promotes Washington wines domestically and internationally. Washington is the nation's second-leading producer or premium wine behind California.

"Some of the best beers in America are made in Washington state, and like Washington wine was 10, 20 years ago, really not recognized around the nation, we hope to change that," said George Hancock, commission member and founder of Pyramid Breweries Inc. "For the most part, those guys are small businesses too, and are a great model for beer and small brewers."

First order of business, though, will be to promote Washington beers to Washington consumers, Hancock said. He estimated as much as 99 percent of all beer consumed in Washington is brewed outside the state, despite tremendous growth in production among the state's breweries.

Anacortes Brewery, which opened in 1994, has experienced up to 12 percent growth each year since 2000. The brewery makes 30 beers and buys most of its ingredients from Washington farmers.

"All of our employees come from the state of Washington, our ingredients come from the state of Washington, and most of our product is sold within the state of Washington," said Allen Rhoades, president and brewer. "We all have good products to sell, and we want to get out there and let people know that."



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