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October 26, 2007
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Brewery prepares for shortage of beer essentials
By Caitlyn Kelleher JOURNAL REPORTER

Wachusett Brewery has spent the past 13 years expanding its business to the point where it has become the second largest brewery in the state, right behind Boston Beer Company.

Wachusett is the 47th largest craft brewery in the country, and is producing more beer then ever before in its history.

"We're moving our way up the ladder," said Brewery President Ned LaFortune.

The Westminster-based company still distributes 98 percent of its beer in Massachusetts, the rest going to the other New England states, New York and New Jersey.

"We just have to stick to our plans," LaFortune said. "People want a diversification in flavors and markets."

The brewery takes up most of the building on Fitchburg Road/ Route 2A and LaFortune said there is space on the property to expand into a second building but that is at least a year away.

"I know the town is happy to have us and I know it goes both ways," he said.

The company had been looking to expand outside of its Westminster location but LaFortune said he has been able to rearrange a few of the plans and licenses and now expects to stay in town.

Alex Wiktorski boxes up cases of beer at the brewery, which now sells enough beer to be considered a craft brewer.
"We have more stuff we can do internally," he said. "We're always having that problem of how much we can make."

The addition of larger tanks and kettles is in the growth plan. The relocation of the retail portion of the business to the front of the building has allowed for more space in the rear for brewery operations.

"[Cofounder] Kevin [Buckler] and I look at this place in cubic inches," he said.

The nation's agricultural outlook may soon be affecting the price of the beer for Wachusett and other beer companies, said LaFortune.

"There is going to be substantial increases in the price of beer next year," he said.

The reason? Increased competition for barley and hops, the two main ingredients of beer (as well as water), after years of oversupply.

Wachusett is looking at a 60 percent jump in the cost of hops, which is lower than the expected market price hike of 200 percent because of a standing contract.

IPA, India Pale Ale, recently was named one of the top ten by Draft Magazine, and is considered a crisp, refreshing ale, with an aggressive hop character and dry finish. JOURNAL PHOTOS/CAITLYN KELLEHER
Barley is up 11 percent this year and the cost next year it is expected to jump again.

"They wouldn't let us lock in after that," LaFortune said

But he said his company is lucky because most of its beer is sold in Massachusetts and they don't have to deal with extensive transportation costs.

Wachusett Brewery will likely have prices similar to those of the Boston Beer Company, which makes Sam Adams, because the beers are a similar quality, he said.

"We're going to take a hit in profitability," LaFortune said.

But, he noted, the company is in a place where it should be able to survive the hit.

He said the brewery has solid suppliers and won't run out of ingredients.

"Some breweries won't get the raw materials," he said.

LaFortune said that sometimes the quality of the materials also becomes an issue because of their ability to change the taste of the beer.

"It's just a huge worldwide issue," he said.

Growing barley and hops and preparing them for the brewing process is a business of its own and most small to mid-size breweries can't factor that in, said LaFortune.

"It's not something you can just get into," he said.
John Turczynski monitors the bottling process of the bottles of Wachusett's IPA beer on Tuesday. Indian Pale Ale, is one of the 10 beers the brewery produces in a small building on Fitchburg Road/Route 2A in Westminster. JOURNAL PHOTOS/CAITLYN KELLEHER