Craft Brewery Conflict...

Brewing Industry Issues: Top 5 Common Disputes From Last Year

As 2020 rounds the corner, we take a look back at the top 5 issues of 2019 that came our way from the brewing industry this year. The below list represents about 6% (our direct reach) of the U.S. craft brewing industry, so extrapolating to the whole should be done with caution. However, we think it can be safe assume that most breweries encounter at least one of these issues throughout any given year.

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Top 5 Disputes in Brewing for 2019:

  1. Management/Partner/Investor Disputes
    Probably shared with many other industries, but tension among business partners, managers, and investors ranks first in 2019 (just like 2018 and 2017 when we started keeping track). Such tensions and disputes affect production, workflow, capital support, and overall function. It should be no surprise, then, that #2 is affected by the top spot.

  2. Team/Staff Tension
    Not every issue with staff can be traced back or linked to management disputes, but many can. If the top is dysfunctional, then expect the middle and lower levels to reflect this dysfunction. Combine this with another route to tension: A team is a collection of unique (diverse and different) individuals brought together to achieve a common goal. Communication, trust, and understanding are critical to this mission. Often, these are lacking, or at least not effectively achieved, resulting in decreased production and an increase in turnover.

  3. Consumer Relations Issues
    Again, we can see correlation with the previous two. Dissatisfaction among the staff can seep into the consumer pool.  This is mostly evident via social media and online reviews. Handling of complaints and criticism requires certain skills and a degree of patience, and possible politics.

  4. Contractual Conflict
    Terms in contracts are almost always disputed to some degree in any industry. For breweries, it seems the contractual terms disputed most often reside in distribution contracts, followed by leases. While contracts themselves are rarely re-worked, the terms can be clarified or adjusted in some cases. Some contracts have arbitration or mediation clauses, which is a great idea.

  5. Government Disputes
    Usually local disagreements in zoning, water management, waste, access, etc.

We estimate that the average cost for each issue can cost a brewery approximately $83,000*. Most of this average is tied up in the first 3 since they are rooted internally, although navigating zoning/inspection issues can incur obvious delays in operations. Unfortunately, internal costs are not so obvious or considered by breweries when tensions materialize. No one thing costs $83,000, but many little things add up; turnover, training, legal fees, lost production, lost/stolen time, gossip, sabotage, tardiness, quality control, all play a role in the final figure.

Most of these, and others, are manageable prior to incurring high costs. Disputes with government seem to be unavoidable and least flexible. Some issues are not appropriate for our services and we refer them elsewhere. Yet, our services can reach beyond and behind small business functions like family issues with staff members, or individual dispute assistance. Reducing stress at home decreases the chance of that stress being brought to work and affecting business operations. This is difficult to measure, however, and not included in the above estimate.

*There are many factors that go into this estimate. See www.ovaloptions.com/documents to calculate your costs more accurately. Things like advertising a staff position, training materials, attorney fees, etc. can vary and is reflected on the downloadable document, “Cost of Internal Conflict Calculator in Businesses”.

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Dialogue in Craft Brewing

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What is dialogue, really?

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Dialogue can be a tangled mess

Two recent Twitter threads can hopefully serve as catalysts to much needed problem solving in the craft beer community (and perhaps American society). BeerKulture and TheThirstyWench published articles and shared them on Twitter. Recapping them here will not do them justice. (Very) basically, the latter took on misogyny and the former racism.  Some interesting twittering followed. There were several calls for conversations to take place to address and fix the these social abominations.

On the surface, it is great to know that people are pushing for dialogue.  My worry, though, is that "dialogue" is not fully appreciated for what it is, what it does, and what it takes. There is no magic wand to make things "right" or get rid of the nastiness. Just talking in a group won't do; if not done properly, then things can get worse. Still, success isn't impossible. We can tackle difficult subjects and inspire, if not bring about, positive change through talking and listening*. It takes hard, dedicated work that will provoke intense reactions. What the craft beer community seems to want is Dialogue (with a capital "D").

"Dialogue" has been conflated with restorative justice methods, debate, discussion, conversation, and other practices. If it's anybody's fault, we are to blame; the conflict management community for not speaking up. This is the main reason for this article.

So, what is Dialogue? As a conflict management specialist, there are varying models. My former workplace, @Meta-Culture, utilizes one model for interfaith Dialogue. We engage other models depending on the situation. The @PubDialogues uses a "pop-up", world cafe model. But they all share core principles, and start out as tangled messes, like some of the utility poles I saw in India (actually, the one above is in Kathmandu).

Dialogue is different than debate (where arguments are presented and a “winner” is chosen). It is not advocacy or a platform. It does not lead participants to a presumed solution. Grandstanding is not tolerated. People don't talk over others. The goal of Dialogue is to solve a problem, not force arguments. It is a facilitated group effort to overcome challenges at their core. Why facilitated? Without an experienced facilitator, well-intentioned conversations can turn into rallies, partiality, bullying and unchecked aggression. Topics of conversation would tend to be myopic or unfocused, cluttered or quiet. A facilitator tracks ideas, allows everyone a voice, utilizes conflict management techniques, provides clarity and keeps things civil. 

Dialogue requires more than discussing something, talking over an issue or airing grievances. In order to effectively engage in problem-solving, some things need to happen:

  • Understand the problem (REALLY understand it)

  • Make sure the problem is not a symptom of other problems

  • Understand those other problems

  • Identify those affected

  • Communicate ideas for solutions

This isn't all, but sustained Dialogue is the best way to get started.

The craft beer community may just be the most suitable community for Dialogue efforts on social issues.  It is collaborative, social, passionate, and connected. So, is the craft beer community ready for dialogue? Because things can get dicey right out of the gate and steam can be lost quickly. Those Twitter threads, when looked at through a conflict management perspective, reinforce this question.

Dialogue is challenging, difficult, frustrating, straining, rewarding and most likely not what is expected. Each participant may feel like walking out at some point. The phrase, "I just don't understand why we're talking about this thing" will be uttered. So will, "that's a stupid question" and "no, no...you're so wrong". Dialogue is not straight forward. It takes time, patience, energy and sacrifice.

The core of Dialogue is inquiry. Questions. Lots of them. And lots of different types of, and motives for, questions. Some seek information while others are designed to challenge current thinking. Some may seem easy, silly, defensive, dumb, aggressive, offensive or redundant. Every question asked in a dialogue is important and should not be dismissed. This can challenge listening*.

I could preface a Dialogue by saying, “now, try not to be offended” or “don’t take this the wrong way”. Well, to me, these suppress valuable information. Plus, I can’t tell you how to feel, or judge your feelings. Expect to be offended; just say so and we can address it. There will be a lot of "why" questions; the simplest, most annoying question ever—and most useful.

So, with this in mind, let’s look at an example of the types of questions that may be asked in a Dialogue for the craft beer community. Here’s a “simple” one.

What is racism?

I’m guessing your first thought is to define it. That’s fine.

Merriam-Webster

1:         a belief that race is the primary determinant of human traits and capacities and that racial differences produce an inherent superiority of a particular race

2          a: a doctrine or political program based on the assumption of racism and designed to execute its principles

             b: a political or social system founded on racism

3:         racial prejudice or discrimination

Well, the definition is just one part. It doesn’t explain a whole lot. What else is racism? Rodney King being beaten by cops? Yes, that’s an example. What else IS racism? Let’s look at it from other angles:

  • Could it be a response to something? What?

  • What about a symptom? Of what?

  • What does it require?

  • Is it taught, otherwise learned or biological?

  • Where does it exist? Not exist?

  • When, how did it start?

  • What purpose does it serve?

  • How do some people think of it as good? Why?

  • Is it an action, notion, idea, or something else?

That's just the tip of the iceberg. Responses to these questions will likely give rise to other questions. And the Dialogue can go like this for quite a while. Some take months or years. So, craft beer community, that's a basic introduction to Dialogue. If this is what you want, fan-frickin-tastic!  We're ready to help.

*Listening is more than just hearing the words of someone else. It requires an understanding of what someone is saying, why they are saying it, how they feel about it and the point they are trying to make. It also involves clarifying what you hear and interpret. It's a difficult skill to master, which is why having facilitators helps in a group setting. 

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Internalizing Diversity and Inclusion for Craft Breweries

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The Brewers Association recently published Diversity Best Practices for its members. This 5-part series is a great resource to help breweries with diversity and inclusion efforts. We encourage every brewery to at least consider such efforts laid out by the BA.

It is important to point out that with diversity comes difference, and differences can–and often do–increase conflict opportunities. This isn’t to say diversity is bad. On the contrary; a diverse team expands talents and problem solving, enables progress and exposes more people to more experiences. But only if it the differences that accompany diversity are managed properly.  Just having diversity is not good enough, and the BA knows this. 

In the A Diversity Framework for your Hands section (“hands” meaning your work team), the BA suggests using “training and other workforce education efforts to minimize bias and to productively anticipate and resolve conflict.” This is precisely what we do here at OvalOptions. Our services (mediation, training, consulting, coaching, facilitation) help clients understand, embrace and manage differences, thereby enhancing diversity and strengthening their team.

Additionally, the BA says, “Use organizational climate and job satisfaction surveys to regularly ‘take the temperature’ of your workforce.” Again, that’s what we do. Whether it’s a one-time survey, or through our VENTIT(TM) program, we help clients “read” their workforce, understand that reading, and suggest and provide methods that are appropriate for each situation.

Through our various services, we have helped breweries overcome significant challenges, from trademark infringement to partnership disagreements.

Brewery alliance seeks to protect Fountain Creek Watershed | Colorado Springs Gazette, News

The Fountain Creek Watershed Project is tapping into a Colorado Springs staple - craft breweries - to raise awareness of local water issues. Now comes the Fountain Creek Brewshed Alliance - the first such organization in Colorado - made up of the watershed project, nine area breweries, Colorado College's State of the Rockies Project, Colorado Springs Utilities, the City of Colorado Springs' water resource division, the Greenway Fund and the Fountain Creek Watershed, Flood Control and Greenway District. Its work is being funded by Planet of Awe, a national environmental stewardship nonprofit.

Source: Brewery alliance seeks to protect Fountain Creek Watershed | Colorado Springs Gazette, News

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BrewDog, Lone Wolf and the Forest

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The recent uproar in the brewing industry involving trademarks centers on BrewDog Brewing and pub owners in Birmingham (UK) after the latter named their pub “Lone Wolf”, which is also a name on one of BrewDog’s labels. BrewDog challenged the pub’s usage and rather than fighting it in court, the pub owners decided to change the name to “The Wolf”.Sounds like an easy solution, but the fervor escalated to a David v. Goliath altercation. The pub owners had spent money branding under “Lone Wolf” and now they had to scrap all of that and start over.  The blowback to BrewDog calls them hypocrites and betraying their own modus operandi; namely not being a faceless, monolithic corporate entity that preys upon and squashes the little guys.  Yet BrewDog retracted  the challenge, essentially removing obstacles to the pub using “Lone Wolf”.  The reasoning was that their challenge was issued by “trigger happy” lawyers, which was not met with sympathy to say the least.But this incident highlights the various factors that make trademark a sensitive and tense subject. On the one hand, it’s such a complicated forest of issues that researching trademarked names takes time, money and expertise; something many small and new business owners do not have. On the other hand, these same complications require an established business to employ such experts to dedicate time and energy to policing their trademarks.  So, one could blame BrewDog for employing a legal team; one could also blame The Wolf owners for not researching trademark database for “Lone Wolf”.Or we can blame neither and accept that such incidents are a part of the harsh realities of business. All is not lost, though. It may be better to focus on how individuals view and address such incidents.  In short, such incidents are going to happen. So, how to deal with them?For starters, let’s evoke the phrase, “don’t hate the players, hate the game”.  Realize that trademarks are notoriously tricky, confusing, and open for interpretation and, therefore, argument. Points of contention will spring up, but the key is not to automatically succumb to escalating that contention into conflict and litigation. Focus on the problem, not the person. A telephone call can do a lot; if not resolve the issue, then to open communication lines, restrict confusion and rumor, and bring personal interaction back into the fold.What could have a phone call done within the above situation? It would not have solved the problem (i.e. one name, two products), but it could have mitigated consequences. The Wolf owners would probably not have abandoned their original branding efforts, and BrewDog would have avoided the publicity mess.The point is that while a problem or dispute exists, there are others ways of addressing it than the usual. Lawyering up is common, and in certain cases necessary, and it comes with some baggage. An attorney’s job is to advocate for their client, not necessarily to solve problems. The default reaction to disputes, especially involving trademarks, is through litigative means. While this may be necessary, it does not have to be the first step. A cease and desist letter not only reveals a problem, it’s an escalation that usually elicits strong emotions (worry, defense, anger to name a few). It also just about promises an expensive and lengthy dispute.There are other means to address a dispute. Mediation, facilitation and settlement conference are just a few. They aim to address problems, find solutions and mitigate or avoid damages. They can be engaged at any time during the life of a dispute, and do not automatically rule out litigative options (unless agreed to and authorized by all parties). In the end, a litigated dispute can take years, cost over $100,000 to each party, cause tremendous amounts of stress, and generate a solution that may not be satisfactory.Or, mediation can cost $5,000, take 2 weeks, relieve stress and generate amicable solutions while maintaining positive relations between the parties. Sure, some mediation cases do not achieve agreement (89% success rate), but it is certainly worth a try.Oh, and if you are in disagreement with another, don’t air it on social media, that just invites trouble.

 

The Crux of the Craft Beer v. Crafty Beer Debate: It's Personal

--To better understand the arguments behind Craft v. Crafty, see links at the end--

There is a heated debate between a few large breweries (AB-InBev, MillerCoors, etc) and more than two thousand small breweries across the U.S. and some other countries.  To get a quick outline of the situation, the large breweries bring in about 90% of beer sales, with craft breweries claiming 10%, but this share has grown over the last decade. With overall beer sales losing out to liquor, malt beverages and wine, big breweries have endured further losses of sales to craft breweries.  As any company would do when they lose sales, they look to change the trend.Craft breweries are enjoying a huge boom.  In a major recession, rarely do we find any company that enjoys profit, and here we have the craft breweries increasing their profits and share of the beer market.  It's quite remarkable. How can the overall beer market lose shares to wine, liquor and malt beverages, AND the biggest breweries see sales down, but have craft breweries grow?  There must be a secret.Many theories exist as to what this secret might be: hand crafted beer, sense of community, better tasting product, etc.  Apparently, the large breweries think the secret is the image of craft beer. MillerCoors and AB-InBev have many smaller breweries under their umbrella (AC Golden, Leinenkugel, Goose Island, Rolling Rock…) or have specific brands under different names (MillerCoors has Blue Moon, AB-InBev has Shock Top).  More brand names under this umbrella are popping up.In countering this maneuver from the large breweries, craft breweries are crying foul, and not because they feel the image of craft beer is being tarnished or stolen, although we'll see how this affects the situation. Craft breweries say that on an unequal playing field--where the big breweries have the advantages of money, marketing, etc--now they are bypassing the rules of the game: selling a product under their own name. Craft breweries are asking the large breweries, "hey, if your product is so good, then why are you hiding it under a different name?  Step up and claim ownership. Be proud of your product".Ostensibly, the debate then is that Craft breweries want open and honest competition.  That they feel the large breweries are denying this. Large breweries counter and say the consumer should purchase what they like.  Craft breweries feel the consumer is being lied to by large breweries, and skewing the playing field.  But this is the business translation of the core of the issue.*At the heart of this debate is that Craft breweries feel their hard work and precious investments of time, money, energy and lifestyle are being taken advantage of by the large breweries.  Ask yourself, if someone took your idea and ran with it at your expense, how upset would you be? Now imagine the person doing this is already extremely rich.  How do you feel?  This is how craft breweries feel.With large breweries using the image of craft brewing, craft breweries feel cheated and robbed. Not about the image itself, but what that image represents; all the sacrifices craft brewers made to establish a small business around their passion. It is an internal assault on their being and this hurts more than market share, shelf space and financial losses. But, in the end, large breweries are correct: consumers will buy what they enjoy drinking.  Who's right is the focus of the debate, but it shouldn't be…a debate.* Some craft breweries will remain outside this debate as their product is distributed by subsidiaries of the large breweries. The three-tier system in the U.S. is a complex machine that cannot be disregarded in this debateDefinitions: Brewers Association   http://www.brewersassociation.org/pages/media/press-releases/show?title=craft-vs-crafty-a-statement-from-the-brewers-associationShort video: CBS http://beerpulse.com/2013/06/calagione-on-cbs-craft-vs-crafty-generated-over-100-million-media-impressions-video/Miller's response:  http://management.fortune.cnn.com/2012/12/12/sabmiller-big-beer-craft-brewers/Another take:  http://management.fortune.cnn.com/2012/11/15/big-beer-craft-brewers/Some analysis: http://cultivatedpint.blogspot.com/2013/02/craft-and-crafty-beer-brewers.html

Magic Hat / West Sixth Breweries Use Mediation for Settlement

Last week, Magic Hat and West Sixth breweries reached a settlement of a trademark dispute without going to court.  According to initial reports, a magistrate judge served as mediator and the official dispute ended within a week.  We applaud both parties for choosing mediation to seek a mutually agreeable solution and avoid expensive, drawn out litigation. The light at the end of a litigation tunnel would have probably seen the demise of West Sixth and severe public blowback at Magic Hat. It is pleasing to see mediation save both from horrible consequences.  More breweries, and businesses in general, should install mediation as a step in their dispute resolution processes and policies.Yet, while these breweries illustrate the importance and prospects of mediation, they also underscore how the complexities of communication, business and social media can escalate a disagreement to the point where litigation seems the only option left. This case saw a flurry of public venom that escalated the dispute further with each social media posting and legal step taken. And with escalation comes position entrenchment, making resolution that much more difficult.This is an interesting case in that Magic Hat wielded one powerful weapon (impersonal legal motions), while West Sixth wielded another (modern social media platforms).  Magic Hat could not sway the public to their favoring by issuing cease and desist letters, and filing lawsuits.  They were quickly seen, and promoted, as a large corporation picking a small family business, bullying them into submission.  West Sixth learned that public statements will not make any difference in court. And going to court could ignite the possibility of losing the case and going out of business.Beyond the clash of powers, it is also interesting to see how each power provides absolutely no help to resolve the dispute. Each time one side would issue a legal motion or post on social media, the dispute flamed on.   They seemed destined for a long, arduous court battle.  But, give them immense credit; somehow they paused along the slippery slope leading to damaging litigation long enough to consider and seek mediation.  That is not easy to do when emotions are simmering, or boiling, and businesses are taking a pounding on social media sites. Kudos to both sides.All of this highlights the importance of mediation and other conflict management processes.  For one, this case demonstrates that mediation can halt disputes from going over the proverbial cliff. When all hope seems lost, mediation still saved the day.  Businesses, organizations and even families should take note that if mediation has not been used, that it still can be no matter how far the dispute has gone or how close litigation seems.Another important lesson from this case is that not by engaging mediation or other conflict management processes from the beginning of the dispute it can result in ugly escalation, with some unmitigateable damages.  Neither litigation nor mediation can fix 100% the damages done to public image, hence the importance of seeking mediation early.  And how important is public image?  Just look at the joint press release; the largest paragraph is dedicated to an “apology” from West Sixth for misrepresenting Magic Hat in public.  That, above everything else, shows how important public image is, and the necessity of mediation in early stages of a dispute.The press release also states that both breweries are satisfied with their solution and will go their separate ways.  While we do not know the details of the mediation, or any unmentioned specifics (attitudes, emotions, etc), it may be a good idea to enter a reconciliation process to address any "bad blood" that may linger, although we cannot recommend a specific process.  Good faith collaborations or meetings can go a long way in assuaging damage to public image, perhaps even to help other parties in similar trademark disputes.  There's a lot left to be done after mediation. All of it is optional and promises little financial benefit up front, but as we have seen in this case, finance is not the only concern.

Slippery Slope of Brewery Trademark Disputes

The Ugliness Surrounding TrademarksIt seems the Strange Debacle was not enough proof of the sensitivity and power of social media. West Sixth Brewing and Magic Hat Brewing Co. are engaged in a trademark dispute that has quickly spilled over into the social stream.  Each brewing company has plenty of supporters and detractors, and many online users denounce both and think the whole subject is ridiculous. And in a way, they’re correct.  How did a trademark dispute end up as a social media firestorm?  What were the reasons for the lawsuit and facebook postings? What was the goal with these decisions? Did the still-ongoing dispute over “strange” not teach these breweries a lesson or two?Now, it would be easy to jump the gun and seek someone to blame, and many are doing so. But this does not address the problem, which is complex. Even if the lawsuit is dropped, or the parties settle out of court, problems will remain.   Sure, the first problem is trademark protection/infringement. A business has a right to protect its label, brand and image. Adjudication can settle this, legally, but has no impact on facebook et al and public reputation, nor should it. Damage to both breweries will continue to accumulate, with most damage done to the larger of the two (Magic Hat) in public relations, and West Sixth in finances.Then there is the problem of communication and relationship. The Craft Beer Industry is one of camaraderie and friendship. This sort of trademark dispute, more specifically the method of disputing, damages these aspects.  It is quite unlikely that, without help, Magic Hat and West Sixth (and their “allies”) will ever be on good speaking terms. A judge cannot make them “be nice”. Maybe they would have never been friends, or close acquaintances, or even friendly strangers, but now they have almost assured they will not be, and that is disappointing.Ostensibly, the mistakes made were filing a lawsuit (which is public) and utilizing social media. Yet, these were symptoms of a bigger problem: dispute mismanagement. A common aspect of which is going to extremes to settle the issue; the best defense is a strong offense mantra. Unfortunately, following this stream of thought overlooks valuable, available, effective and affordable options.Mediation and other conflict management services ought to be considered before lawyering up and unleashing online campaigns. To be sure, these services are still available with attorneys involved, it just becomes more complicated and decreases the parties’ control of the process. When a disagreement escalates beyond private, one-on-one, and personal discussion, the next step should be to contact a conflict management services provider.  Even if they cannot help for whatever reason, there is no harm done. The parties can go right ahead and do whatever they want, whether filing a suit or hitting facebook.  Nothing is lost, and at the very least judges tend to appreciate “good faith” attempts to find resolution outside of court.The folks at West Sixth and Magic Hat still have options before going to court.  Whether or not they try these is unknown. Perhaps they themselves are unaware that such services are available.  That’s why we are here, to help in whatever way we can, even if that means referring parties to other providers. In the end, social media will not overturn legal trademarks, and lawsuits cannot sway public opinion.

Craft Brewing and Trademark Infringement: What's at Stake?

According to the Brewers Association, the U.S. is home to over 2,300 craft breweries, with more opening each week.  Added to the international, national and regional breweries the total number of breweries in the U.S. eclipses 2,400.  Each brewery produces at least 2 different types of beer, and most breweries assign names to their brews (some use style-names like Pale Ale, Stout, etc).  With so many beers out there, and more on the way, it is not surprising that some beers might share the same name.  If a brewery trademarks a name, then disputes will arise. In fact, they have.There are several issues stemming from a trademark infringement case.  Breweries can benefit from understanding them and the options available to manage such cases. Business Protection: This is the evident  issue.  While citing trademark infringement against a brewery 3,000 miles away because they are using a name similar to a trademarked name may sound a bit paranoid and a bit uptight, technically it's the right thing to do.  By claiming trademark infringement the holder of the trademark is actually protecting its investment in the current situation, and also in future situations.  In the trademark world, if you don't protect it, then you may lose it.  Protecting now means stronger protection later, and perhaps against tougher challengers. Community:  Many trademark issues involve members of the craft beer industry, which is a close-knit community.  Filing a trademark is a business move claiming rights to a creation. This is a necessary vice for craft brewers, who by and large love to create new beers. They get pleasure from the creation itself, seeing others enjoy this creation, and the new challenge that awaits them in the brew house. Commercial marketing and business dealings hold little interest and trademarks signify a infiltration of this community. Social Media: The juxtaposition of business and community can create a hubbub on the Internet. Many craft beer consumers hold the sense of Community sacred.  No brewery is above and beyond this community, and to introduce trademark (or any) legal action is a severe violation. With the advent of social media, through which many breweries build followings, the emotions over this violation escalate and can turn downright ugly.  And this, in turn, is a violation of the Community. Consequences can be damaging and managing them may prove difficult, not to mention stressful.The first issue has garnered acceptance among craft brewers.  It's the business side that brewers reluctantly manage, or hire someone else to manage. When non-brewing issues arise, though, managers fall back on default methods for dealing with them. A common fall back for trademark infringement is immediately hiring an attorney.  While this is an understandable method, it does little to address the next two issues mentioned above. In fact, choosing this method first (and only) exacerbates both.  For one, the issue is no longer a part of the Community--control of it is in the hands of outsiders (lawyers, court system, judge).  Another reason is that all communication becomes private between legal counsels, there is no direct communication between the brewers.  The increasingly common cease and desist letter is a stale, impersonal symbol of corporate takeover of craft beer.  Consumers erupt.On top of those two aspects, legal counsel is expensive and the court system slow.  Reaching a decision (a dictated judgment) can take months or years. While legal counsel is a viable option, and sometimes necessary, it is by no means the only one.Brewers, realizing the issues at hand, can choose facilitation or mediation before retaining legal counsel. These alternatives methods allow brewers to communicate face-to-face  and give them an opportunity to create a solution together, thus "owning" the resolution of the issue.  They also illustrate to the craft beer community and consumers that beer and camaraderie are more essential than strict business maneuvers. Both methods are quicker than the court system, and do not require the same level of financial commitment. And while facilitated or mediated resolutions are not by themselves legally binding, the parties involved can allow them to be.It is important to note that using facilitation and/or mediation prior to retaining legal counsel does not prohibit doing so in the future.  In other words, if facilitation/mediation doesn't work, then legal counsel may still be sought.  In fact, most courts prefer mediation before cases go to court since it helps illustrate the issue, gets parties communicating with each other, affords a real chance at resolution, and does not add to an already jammed case load.  With a  success rate over 85%, mediation merits consideration.So, before that cease and desist letter is sent (or even written) brewers should at least consider other options since there is more at stake than a name.

How to Manage Brewery Employees 101

How to Manage Brewery Employees 101

So, you have your own craft brewery. A dream come true: you make beer, drink beer, and sell beer all in one setting.  You have a following of beer geeks who like your product.  Feels good, right?  Aside from financing and the occasional equipment hiccup, things seem to be going well.  If only you can get your employees to do their jobs more often, things could really pick up, or at least make life a bit easier.You are not alone. In the age of smart phones, social media and some sense of entitlement, businesses find that their employees have more on their minds than their duties. This is frustrating for any business, but for a brewery, it’s especially annoying since the brew-house is commonly seen as a laid back, relaxed atmosphere.  But there’s still work to be done, beer doesn’t make itself. How do you motivate employees, keep them on track, and maintain this atmosphere?Good question.  The quick answer is; “it depends on the situation”, which is true, to a point. Different situations call for unique solutions. People have their own issues, and no two are the same.  Yet, there are some commonalities in these situations. One is the fact that brewers are, for the most part, not managers. They do not have the skills, or desire, to manage people.  They are hard workers and expect the same from their employees. Another commonality is communication, or lack thereof. Human communication is a tricky gig; we each have a communication style that may not mesh well with others’ styles. Combined, these two commonalities make employee management a tough task.As such, a complete offering of advice is impractical on this blog, but here are a few tips:-        Keep in mind that people have lives outside of the brewery. Sometimes, distressing situations climb into the workplace, and production suffers.  This is NOT done on purpose. Employees may need assistance, and dismissing or minimizing this distress only complicates the situation-        Remember what the subject is: work, beer, production. If an employee isn’t watching the temperature on the kettle, what’s the subject?  It’s the kettle temperature.  Say something like, “that temperature needs to be watched closely” rather than “why aren’t you watching the temp?”.  The latter will evoke defensive reaction thereby creating a tension in the relationship-        It is important to be tolerant for reasons above, but it is also critical to maintain authority and leadership. These come in many forms, and is specific for each brewery and brew teamThis advice may seem vague and complicated at the same time, because it is.  Management is never easy, but it certainly can be easier.  It just takes practice and a fundamental understanding of human interactions, communication and your team.  And, of course, there are always options on the table.

Are they Brewers? What's More Important: Definitions or In-Fighting?

What's More Important: Definitions or In-Fighting?The Roman Empire fell from within. Sure, Alaric and the Visigoths sacked Rome, but it had grown vulnerable in the decades and century before. Loosely governed expansion, disconnect with member "states" and in-fighting doomed the once powerful empire. Craft Brewing is mirroring this empire.Ok, ok…so the analogy is a wee bit faded, and probably not at all accurate, but as Buford T. Justice would say, that's an attention getter.Recently, there have been blogs published by those in the craft beer community rebuking one another for some or another reason.  Most common are the trademark infringement cases that can be handled much better than they have, but which have blown up to become social media disasters. The newest lambasting concerns "gypsy brewers".  Needless to say, lambasting one's company, job and profession triggers emotions, and a response.  Everyone has a right to their own opinions and the freedom of speech to express them. With these, though, comes responsibility--for what is said and the reactions the come forth. My concern is that neither the speech nor the reaction, or even the consequent reactions, will be handled well by those involved or the craft brewing industry at large (which includes consumers--and important segment).While there are only two blogs in this back and forth, the stage is set for ongoing damages.  This is in-fighting, and the Big Boys are loving it: let them fight amongst themselves!  To be sure, the two authors can get together, speak openly and honestly, come to an agreement, and possibly issue a public statement.  Ostensibly, then, the issue is resolved.  Yet, this would be incomplete.  Ripples of the dispute can travel far and wide.   While these two may be "at peace", those who agree with either side will not. How will gypsy brewers feel? What will they think? How will non-gypsy brewers react?  It is difficult for those following  to come together and discuss the topic (or can't do so quite as easily).  Animosity can grow, and from my discussions at the Craft Brewers Conference, it has already started.  Who knows where it will lead?  Maybe nowhere.  Maybe to Rome.So, what are we to do?  In this situation, swift action is needed before the conversation becomes ensconced in online forums, beer chats and other ethereal communities where animosity can grown and partisanship takes hold. Perhaps a statement from the Brewers Association can help nix the growing bud.And that should not be the end of it. There is a lesson or two here and they should not be ignored. Online blogs are great, they convey information to consumers and other interested parties.  They can be powerful for good or not-so-good. I think we all know about the Strange debacle; that issue rages still.  Some comments are better left off of the public forums.  The chances of miscomprehension, misinterpretation and out of context quotes are too great to post just anything of contention online (unless, of course, you just don't care--proceed at your own risk).  It is like office rumor mills, or co-workers talking about each other behind each other's back.  It hurts business.If contentious blogs are to be written, though, close attention to the words chosen is important. It's one thing to disagree with someone, and quite another to label them.  The difference is that with the former, you're stating an opinion. The attention is on you.  In the latter, the attention is on someone else without their knowledge and/or approval, and no way to defend themselves at the time.  People react when they are attacked, and a common defense is a more powerful offensive.  That old saying, "stick and stone may break my bones, but words will never hurt" is only half true. Bones break, but they are relatively easy to fix.  While words shouldn't be damaging, they are quite often immensely powerful (for bad and good, I might add).  Remember, people are 99% the same. In order to feel unique we sometimes focus on our differences, and those differences that we see as "negative" get the attention. Instead, let's focus on the positives and the shared qualities…like great beer.

Brewers Association's Craft Brewers Conference - Washington D. C.

Last week, Washington D.C. was inundated with craft brewers and beer geeks as the Brewers Association’s Craft Brewers Conference was held in the nation’s capital. This conference was a mix of trade shows, seminars, receptions, tap-takeovers, and special events around the city.  My hotel was in Georgetown and found a great little pizza/beer spot just down the road (Pizzeria Paradiso). As a craft beer geek, I was in heaven.As a conflict management specialist, I was embarking on a new frontier for Oval Options. Heading into the conference week, I had questions: was there much conflict in craft brewing? If so, where did it originate and where did it show itself? Who would be interested in Oval Options services? How would craft brewers and brewery owners react to conflict management service?  These questions and more (like, “does Oklahoma produce a nice saison?”) bounced around in my noodle all week.The answers I received were helpful (yes, Oklahoma does have a nice saison). As per every business, craft brewing does endure its share of conflicts, although not as many as other industries.  This is for several reasons, but the main one is the intimate and personal nature of breweries.  Brewers make beer because they love to make (and drink) beer. Enjoying a monetary profit is a bonus. They also love the community atmosphere of brewing. They’ll talk to anybody, share a beer with everybody, and are always interested in new things...especially beers.I had a great time speaking, and drinking with craft brewers from all over the U.S. and some from the international scene. At the Churchkey I ordered a beer with my friend Alan from Backcountry Brewery, and started chatting with the guys from Fernie Brewing in Canada. Nice people, nice beer, nice conversation. That wraps up the character of craft brewing right there.