Going Coastal with Pelican Brewmaster Darron Welch

Pelican Brewmaster Darron Welch

Pelican Brewmaster Darron Welch

Brewpublic ventures out to Pacific City to visit Pelican Brewery, where brewmaster Darron Welch talks about life in coastal Beervana, the award winning beers of Pelican, his love for craft beer, and an exciting new bill legalizing self-distribution of beer in Oregon.

One of the finer plots of coastal land in Oregon is that of Pacific City. With magnificent sand dunes rolling amidst a forested backdrop and majestic views of the imposing Haystack Rock, the winding roads leading in to the town are “a double-edged sword” explains Jeremy Strober of an area development group called Kiwanda Hospitality Group. Strober explains, “While is keeps this area a hidden gem, a secluded piece of paradise, it also makes it hard for businesses to survive in the winter time.” Just a few miles off Highway 101 between Lincoln City and Tillamook, Pacific City offers touring attractions of great surf, turf, and phenomenal beer brewed at Pelican Brewing Company. High prices are justified by a dramatic swing in seasonal business. A large majority of tourism dollars derrived in Pacific City comes during the height of the summer and judging by our last trip there in late June, the hefty cost of hospitality was hardly relating to any slowdown during the country worst economic hardship in years.

The beers of Pelican have won boatloads of awards and the brewery itself has been recognized at the Great American Beer Festival as the country’s best brewery of the year twice. With a recent expansion in 2004 the brewery increased production to about 1500 barrels annually making it fall in the category of a large brewpub. If you’ve ever had the piquant India Pelican Ale, the robust Tsunami Stout, or the one of a kind Doryman Dark Ale, you can understand how spectacular this little 15-barrel brewery is. So is $5.50 a pint and $6 for an imperial (20 ounce) pint too much to ask for in these tough times? “Certainly I do get that feedback with our bottled IPA. We price it so that we’re actually making a little bit of money” said brewmaster and partner Darron Welch in a recent interview. Welch, Pelican’s original brewer is the man responsible for much of the recipe development at Pelican. “When we sell it to the distributor, the distributor needs to mark it up. The retailer needs to mark it up. So we do get feedback about ‘Why is your bottle of IPA $7.00?’ It’s an expensive bottle of beer. I think when we’re able to distribute it ourselves, we’ll see that price go down a little bit.” Welch continued “I’ve always admired what Jack Joyce has done with Rogue. He’s always had this philosophy that ‘We’ve got really good beer and it’s worth paying for. We’re going to charge a price that we feel is fair.’ And, honestly, they’ve had a lot of success with that. I hope that we’re able to replicate that in a small way.” In addition Welch joked “Plus you have this exorbitant head brewer’s salary that you’ve got to pay.”

Self-Distribution

Not all Oregon state bills regarding beer are bad. Despite some politicians trying to squeeze craft brewers for big taxes, a few bills actually serve to benefit the craft brewer making his or her livelihood from within the brewpub walls. “We had a lot of support on this issue.” said Welch “We had a lot of support from the Oregon Brewers Guild board of directors, from folks like Ben Love (Hopworks Brewery), Van Havig (Rock Bottom), and Jamie Floyd (Ninkasi), just to name a few. Other brewers that were really pushing for this and needing this: Roots Brewery gave us a lot of support. The Wild River group gave us a lot of support. Multnomah Brewery. We got a lot of support from the McMenamins group.  They’re called 10 Barrel now, but they used to be called Wildfire-they’ve been hugely supportive as well as Silver Moon, also over in the Bend area. We got support from Cascade Lakes Brewery. And just a lot of support for this issue from brewpub membership as a whole.”

Obviously this is a big deal and everything will be changed from here forth. Before the self-distro law took effect, Pelican was limited to Mid-Willamette Valley, primarily Portland. Said Welch “(F)or bottled beer our India Pelican Ale is distributed in Portland, as well as the populated coast. 99% of our distribution was through Portland. The coast here doesn’t take very much beer. The number of specialty stores is just (places thumb and index finger very close together).” As for seeing kegs of Pelican on tap in the Portland area again, Welch said kegged beer will not be the focus of distribution. “You may see one here or there” said the brewer.  Being in a secluded area during the winter months “means the brewery doesn’t have a steady business volume to depend on” according to Welch. “I think that’s a huge difference from being in a place like Eugene or Portland where you have this base of population, you reach your customers and they keep coming back” he said. “They come back in December, they come back in February, they come back in the summer, they comeback all year long!” The majority of sales for Pelican are in July and August, like most of craft brewers in the state, but on a much more dramatic scale. “It’s like a madhouse here and then, all of a sudden, it’s like you can hear a pin drop in January” said Welch. “After thirteen years, we’ve figure out one or two things. We wouldn’t still be here if we hadn’t learned to make some adjustments to survive. Our business model is truly a feast or famine”

This yo-yo of a business model will likely be supplemented by the new self distribution law that will allow for breweries like Pelican to forgo employing a distribution company in selling their beers to retailers. Optimistically, Welch admits “If we are the ones driving the truck, calling on accounts, and making those contacts, and pushing those sales, then we’re in control instead of the distributor. It’s their job to sell as much beer as possible. When people in the summertime buy more beer, that’s what they want to do. But in the summertime, we’ve got all we can handle (at the brewpub). And what we need to do is offset our seasonality. By self-distributing our beer, we feel we have a little more control over that and we’re not going to be pushing product and posting things off in the middle of the summertime when we can barely keep up as it is. But come December, January, February, we’ll probably have something on post off every month. In fact, we’ve already written the post-off plan, so I can tell you that we will be posting something off every single month during those winter months to drive sales. And since we are deeply staffed, our guys can be out reaching accounts and building sales in the off-season.” In the early days of Pelican, Welch says the difference between the peak and lowest production months was 400%. “That was pretty tough to manage” he said. Nowadays those numbers are down to only about a 100 or 150% differential. “If we had constant demand, we’d probably be producing 3000 barrels per year” said Welch.

More on Pelican

Up until 2004 the brewery was just a cramped little strip adjacent to the restaurant, a run down old pizza joint with blown sand covering much of the roof. Since Pelican and company took over the property, quite a bit has changed. The look and feel of Pacific City has undergone a dramatic face lift over the past decade.Once a somewhat desolate fishing town, the driving force behind today’s economy here is tourism. Time share condominiums were built on the dunes overlooking the ocean in 2007 and much of the look and feel of the town seems quite different from much of Oregon. The Pelican Brewery hosts the annual Brewers Summer Games each June where industry craft brew folks test their athleticism and enjoy the great bounty of beer the Northwest has to offer. Pelican, is just another shining example of why Oregon is the best state in the country for beer.

More on Brewmaster Darron Welch, his passion for beer, and what’s coming up from Pelican

“When I was a young man, I took a year off between high school and college. I had an opportunity to live overseas and I just couldn’t pass it up. I was an exchange student in German. When I left, I thought I liked beer. When I got to Germany, I realized that I was completely mistaken. I actually loved beer. It just had to be great beer. When I came back (to America) I was, of course, disappointed with the regular issue American beer that was available in the mid-80s. So, I’d heard of homebrewing so I thought I’d homebrewing because I thought the worst thing that can happen is that at least it will still have more flavor. It may not be perfect beer, but it will still have more flavor than what’s commercially available. So, I took up homebrewing, and my father was instrumental in that because I was still under 21. So he would go and buy the ingredients and I would make the beer. Half of it was his and half of it was mine. That was a good deal for everyone involved. I did homebrewing all through college and my first career. I got to be a pretty accomplished homebrewer. When I was out in Wisconsin for my previous work life, I had an opportunity to sign on at the local brewpub so I did. So, that was my jump into the ranks of professional brewers. It’s funny, the beer that really opened my eyes…there were actually two beers…that opened my eyes to the potential of flavor in beer and the qualities that a good beer could have. That was a good German Pilsner and a South German Hefeweizen. Neither of which I brew (laughs). For Welch his previous attempts at brewing a Pilsner for Pelican sold slowly and took longer to ferment. “I am happy to see Hopworks making some headway in making some top notch lager in the Pacific Northwest” he added. “As far as craft beer goes, this has been a lager-free zone. There’s been lots of us trying to get people fired up about lager, but so far, not a lot of success. My trouble is, I have time to brew a Pilsner in the winter. But when people really want Pilsner is (in the summer). It would be fun to have a lager strain going and enough tanks to dink around with it…do a Dortmunder, do a Pilsner…”  Pelican will be brewing their special Saison this month and packaging it in early August for release in early September. Look for it in 750 ML bottles.



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Posted under Beer personalities, Oregon beer, brewpubs

Beer with a Twist

On a recent trip to the coast that involved a magnificent stay at Pacific City’s Inn at Cape Kiwanda where we met with some craft brew-minded folks like Pelican brewmaster Darron Welch (look for an interview in the near future) and the Kiwanda Hospitality Group‘s Jeremy Strober. Strober met up for tea and coffee in the morning before we headed down to the beach to soak up some sun and great views of Haystack Rock looming just out to sea. Later we also grabbed a pint and light lunch at Pelican (not light on the pocketbook, but being that we don’t get out to the coast much, this was a real treat). Strober told us all about the area. A native Californian, he was captivated by the quiet landscape of the Oregon coast and compelled to make the seasonal vacationland his year-round stomping grounds. Learning about lots of great things to do and places to see, he pointed us to some must-visit destinations for lovers of craft brew.

I could get used to this

I could get used to this

I’d heard earlier from a beer geek friend that Vinnie Cilurzo, brewmaster of Russian River (one of our all-time favorite breweries on earth) had a sister who ran a wine shop with Cilurzo’s brews on tap. Strober pointed us in

Chenin Carlton and her wines

Chenin Carlton and her wines

the right direction. Just into town, in the heart of Pacific City, a quaint little shop called Twist Wine Company sold the wines of Chenin and Sean Carlton. Chenin, named for the vineyard grape, was a friendly woman who was eager to tell us all about her brewing background and growing up in Southern Cali with Vinnie. It made me smile to see the same recycled bowling alley bartop that supported her bro’s beers down in Santa Rosa. On tap behind the counter were three Russian River brews: Damnation, Blind Pig, and Pliny the Elder. Not just this, but on guest tap Twist was offering Pelican’s Bavarian Hefe-wit, Heiferweizen, and Hopworks Original Organic Red. It was still early afternoon when we arrived at twist, and to spare our liver any previously experienced beers (no matter how tempting), so we opted to give the Carlton’s specialty wines a whirl, sampling six different offerings from three brands. Now, let me be straight here: I know zilch about wine, but it was clear that these folks know what they’re doing. In 2006, after ten years of R&D, Chenin and Sean started

Brew taps at Twist

Brew taps at Twist

creating their own artisan wines. She says, “Our goal was twofold. First, we wanted to make fun lovin’, low stress, high impact anti-elitist wines that you could drink everyday without breaking the bank.” In their first year, the company released Basket Case as “a representative of our attitude-work hard, play hard, and have fun doing both-without raiding your retirement account. Our second goal was to make the best wine we knew how to make-a no holds barred approach to making wine that was unencumbered by cost, tradition, or style.” Under the name Shy Chenin, the couple released a Chenin Blanc and Rose of Pinot Noir. Melding complexity and drinkability must be in the family genetics because these wines were simply delicious. Now, being that this is a beer blog, I will not get too indepth trying to describe these eclectic brews, but let me just tell you, if you can get your paws on their Reversal reserve series Siraz, don’t miss out! Explaining the origin of this beer, Chenin explains, This year (we released) our first red wine under the no expense spared lineage. From the start, we wanted to name this wine in honor of our journey…a journey that is not just a career but a way of life. Not long after we struck out on our own we passed a chalkboard upon which was written the following quote:

The world you want to live in isn’t going to happen unless you stand up and do something about it.

“It summed up exactly what we were trying to accomplish-a new way of doing things. Enron, Worldcom, partisan politics, the sub-prime mortgage crisis, corporate irresponsibility and environmental neglect are all symptoms of the same problem: small in prevalence, but overwhelming in influence, greed has benefited few but corrupted many. When we shrunk that chalkboard quote down to a one word wine brand, Reversal fit perfectly. In one word it captured our entire journey. Reversal-For a long time, people have been asking the question, ‘What’s in it for me?’ We think it’s about time for the answer to be, ‘A better place in which to live.’”

The atmosphere of Twist reflects a relaxed, liberated West Coast mindset: loungy silver couches, and shelves housing both wines and a dilettantish selection of 12″ vinyl records all housed withing a tidy beach bungalow. Along the lines of their recycled bowling alley floor countertop, their mindset is, like many on the West Coast, focused on sustainability. A chic bamboo floor rounds out the feel of the establishment. Keeping things fun, they also feature an assortment of retro 80′s video games. According to their website:

We didn’t really mean to do a retro theme, but when we found a vintage Atari 2600, we had to jump on it. Sit in our animal print bean bags and revisit the love of your youth with Pac Man, Ms. Pac Man, Donkey Kong, Frogger, Space Invaders, and of course, the only game that will get you on our wall of fame…Missle Command!!!

For sometime, Pelican was the only beer destination in town, but now with Twist, both beer geeks and wine geeks have a place to make themselves comfortable. Check your snobbery at the door, and pay a visit next time you are in town.

For more on Twist Wine Company visit their website @ www.twistwine.com

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Posted under places to drink beer

Brewers Summer Games

Pelican’s Sixth Annual Brewers Summer Games June 20. You know what this means? Beach, brews, and bribes. On top of that, it’s a whole lotta fun for a good cause.

The beach: one of Oregon’s most majestic beaches that features picturesque sand dunes to complement the imposing Haystack Rock. A sunset not to miss!

The brews: Pelican is one of the best breweries in Oregon, not only for its phenomenal locale, but a boatload of medals are a testament to the skills of its esteemed brewers. On this weekend, more killer beers from all over the Northwest will be on display while folks from the brewing community test their athletic prowess.

Bribes: Not only do the judges accept bribes from the participating teams in the event, they encourage them. So who will win this year? Will it be the hometown favorites and last year’s winners Beer Watch? Will it be a pack of brawny, beer swilling distributors? Find out at one kick ass festival/party that features keg sled tows, yeasty balloon tosses, and an assortment of other skill tests of mind, muscle, and liver that are unique to the Oregon Brewers Games.

From a recent press release sent by Kate Kauffman of Coates Kokes:

The Pelican Pub & Brewery’s sixth annual Brewers Summer Games is taking place on June 20, 2009, and will feature dozens of brewers, distributors and equipment suppliers from throughout the Northwest who compete at events including the “Keg Toss,” “Cheap Beer Toss” and “Service with a Smile.” This event is open to everyone and extremely family-friendly.

During the intermission of the Brewers Games, kids are given a chance to participate in the “Root Beer Games” which include a miniature keg toss, a three legged race and a water balloon toss. Winners of the Brewers Games will be selected by celebrity judges and after the awards ceremony, attendees can enjoy the sunset along with live music, plenty of food and a large beer garden featuring 18-24 different beers from breweries around the Northwest as well as hand-crafted Pelican beer and root beer.

WHAT:The Pelican Pub & Brewery’s sixth annual Brewers Summer Games

WHERE:The Pelican Pub & Brewery, Pacific City, Ore.

WHEN:Saturday, June 20, 2009, Noon to 8 p.m.

COST:While admission to the event is FREE, all proceeds raised from the event benefit two local charities: the Nestucca’s Booster Club and the Caring Cabin. Nestucca’s Boosters supports athletics and other extracurricular activities in local schools. Supported by the Children’s Cancer Association, Caring Cabin is a lakeside retreat near the Oregon Coast for families of critically ill children and those diagnosed with cancer.


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Posted under Oregon beer, beer events, press releases

This post was written by Angelo on June 19, 2009

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