Mike Neilson buys Boneface Brewing
Panhead founder and his wife Anna are back in the beer business after buying Boneface. Black Sands, Beer Spot win big at Lewisham Awards. Yoghurt billionaire saves Anchor Brewing.
Happy Friday beer lovers! And a huge news Friday to boot.
We can reveal Panhead founder Mike Neilson and his wife Anna are set to be the new owners of Boneface Brewing.
The couple will formally take over on or about July 1, depending on licensing other compliance issues. They registered a new business Neilson Brewery Ltd on May 24.
However, until then they are managing the business on behalf of the liquidators, BDO.
Mike and Anna started Panhead in 2013 with Mike in the brewery and Anna in the office. They sold their house to fund the brewery and had support from Mike’s parents who sold investment property to help raise capital.
They settled on Upper Hutt as a site for the brewery — in the old Dunlop Tyres factory, where Neilson’s father once worked.
Three years later Lion paid $15.1 million for Panhead with another $10 million to come based on future performance.
After seven years under Lion, Mike left Panhead at the end of last year.
At that stage he had no idea what he’d be doing next, and even when Boneface was listed on TradeMe in December for $1.75 million it didn’t initially grab his attention.
“After leaving Panhead that want and desire came back again — being out of Panhead I missed the whole beer industry.”
He has a long-standing friendship with Boneface founder Matt Dainty and after meeting up with him in April, the Neilsons decided to pursue the purchase.
There’s something in the name for sure and it’s respected. I do like the name, Boneface — Mike Neilson
A few days after the deal was agreed, they learned the brewery had gone into liquidation.
“We intended to purchase the brewery outright on July 1, but then we got a phone call from the liquidator who asked: ‘Can you come in and manage it for this period to keep the continuity?’.
“We went in on Tuesday last week for a meeting and were effectively running it immediately,” Anna said.
She said the July 1 sale date was dependent on other factors. “There’s a whole line of licensing and compliance issues we have to take care of first.”
I asked Mike if he had any doubts about re-entering the brewing industry given the current economic conditions.
“There’s no doubt about it, it’s tough. When the industry was booming there were a lot of players in the market, and there still are. You just have to keep your level of exposure, and overheads, under control.
“The industry is fatigued and we know we’re going to have to bring a bit more excitement into the industry.”
What the couple are clear about is this: it won’t be Panhead Version 2.
“We’re not making any bones about it: we don’t want to be another Panhead, that ship’s sailed. Beer is our passion; we just want to be us and do what inspires us and what we love.
“And do it well,” Anna adds.
As someone who grew up in the Upper Hutt area, and helped in the creation of Brewtown, Mike admits that was a drawcard.
“Brewtown is another dynamic. Being in Brewtown is exciting. I did help develop it, and I do feel sentimental about that area.”
The brewery will continue as Boneface.
“We want to build on the effort Matt’s put into it. There’s something in the name for sure and it’s respected. I do like the name, Boneface.”
And unlike Panhead, which was a strong supermarket brand from the get-go, Mike believes Boneface will be more an on-premise experience.
“We haven’t figured out that balance yet between on- and off-premise. It’s such a tough six-pack market right now that doesn’t really appeal to me. The margins are so slim, you have to rely on COGS [cost of goods] and high volume to make that work and I’m not sure I’m down for that to be fair.”
Mike and Anna realise they will have a tough couple of years ahead of them especially as they have no direct hospitality experience and Boneface comes with a restaurant as well as a brewery.
“We’re still two or three years away from the market being a bit more reliable," Mike says, "and for the current economic situation to iron itself out. So, we’ll have to do two or three years hard, hunker down and survive.”
Mike said he left Panhead after seven years under Lion, and 10 years in total, because he could see his role changing as the business grew.
“Lion are fantastic to work for they are very good to their staff. It was business as usual in Upper Hutt for a long time, it was still us running the business, but the way things were changing I couldn’t say that we were going to be running the company anymore.
“I like making the beer, the brand, the whole business side of things and I could see that in six months I would have had less control of all that.
“I like making the beer, the brand, the whole business side of things and I could see that in six months I would have had less control of all that.
“But it’s still our baby and we’re happy where it’s going and that the staff are happy and well looked after.”
Beer of the Week No 1
Well, after chatting with Mike I pulled out a bottle (yes, a bottle!) of Panhead Port Road Pils.
While Supercharger is the beer that set Panhead into top gear and drew the interest of Lion, I’ve always preferred this beauty. It’s so zingy and bright, fresh and lively. The hops really pop without taking anything away from the light and refreshing texture.
For the umpteenth year it’s in the New World Beer & Cider Awards Top 30 and I can’t recommend it highly enough.
Of course this and all the other New World Beer & Cider Top 30 winners are available now at your local home of craft beer, New World.
Back to Boneface for a minute
As happens every time something goes awry in the beer business, I got a call from a reporter at The Post, in Wellington about the state of the industry in the wake of the Boneface liquidation.
Fair play to Nicholas, the reporter, for more or less getting things right — or at least putting the New Zealand scene into context against the wider business climate and what’s happening overseas in beer.
I’m not so sure about him calling me “blogger Donaldson” however!
His story is below and might be paywalled (it wasn’t for me):
Craft breweries doing it tough as buyers turn to cheaper beers | The Post
Anchor Brewing lives on after yoghurt billionaire steps in
America’s oldest craft brewery, Anchor Steam, will live on after billionaire Hamdi Ulukaya, CEO of New York-based yoghurt maker Chobani, bought the business.
The San Francisco Business Times reported that Chobani paid $9.9 million for the land that includes the brewery and taproom.
It’s not revealed what he paid for the brand and intellectual property but the business had been on the market for $40 million.
Tokyo-based Sapporo closed the 127-year-old brewery last year.
Turkish billionaire Ulukaya plans to restart production at the site.
Here’s how local media covered what is a big story for the city:
Dusty’s Beer of the Week
Great to see a brew from ’92 still around the traps and winning awards — this time a New World Top 30. Emerson’s London Porter rolls at 5% pouring midnite black with a chunky marshmallowy head, initial notes of rich dark chocolate and sweet malt accompanied by hints of toffee and cola nut on a soft creamy yet light mouthfeel, a slow drying finish completes a beautiful well-balanced porter.
Congrats to Black Sands, Beer Spot
West Auckland brewers Black Sands are celebrating this week after being named Outstanding Producer at the annual Lewisham Awards, which honours the best on offer in Auckland hospitality.
The Beer Spot took out the best beer experience over Urbanaut, Hallertau and Churly’s while Craig “Mac” McKenzie (Coca-Cola) took the Outstanding Sales Experience award.
Tim’s Beer of the Week
It’s always a great source of joy for me whenever a new NZIPA joins the ranks, so it’s with great pleasure this week that I can examine this latest addition to the Thief range. IPAARDVARK (how are you even supposed to say that?) embraces the old through to the new of Nelson hops, sporting Nectaron and Waimea alongside classic Motueka.
Juicy pineapple and yuzu zest kick off the aroma, with passionfruit, white grape and honeydew melon following on. At almost 7% ABV, the palate is as big and rich as you’d expect, but from that initial note of chewy malt, the flavours wind their way down into a dank, resinous and profoundly hop-driven finish. Another bold step along the path of full-strength NZIPA that 8 Wired’s Hopwired navigated so well all those years ago.
Rounding back on XPA
After last week’s post about XPA and its supposed Australian roots, I was contacted by John Morawski of Laughing Bones, who makes a most excellent Brut-style XPA, Bone Dry, which picked up a well-deserved highly-commended gong at the New World Beer & Cider Awards.
“I can't say I know the origin of XPAs but I do have knowledge of prior art on the style. Firstly, I want to say that if someone is saying it originated in Australia they must be Australian and also believe that Australia is the origin of Pavlova. 😊
“The 1996 World Beer Cup was my first experience with what was called an XPA. It was entered into Category 20: Golden Ale/Canadian-Style Ale. The description of which is: ‘Golden Ales and Canadian-Style Ales are a straw-colored to golden blond variation of the American-style pale ale. However, Golden Ale more closely approximates a lager in its crisp, dry palate, low but noticeable hop floral aroma and light body. Perceived bitterness is low to medium. Fruity esters may be perceived but do not predominate. Chill haze should be absent.’
“The Gold Cup winner that year was Griffon Extra Pale Ale brewed by McAslan Brewing Co., Montreal, Canada. A long way from Australia. Perhaps there are older references that show it did originate in Australia but this is the first citing (and sighting) I have come across. If one thinks this through, XPAs were not developed as a style per se but as a beer name that fit into Category 20. Today's versions are hoppier (what isn't) and the name has been embraced to define what some believe to be a style. As with many modern styles they are really just a name. Think full circle on this one. What is a West Coast Pilsner? One could argue that it is an XPL...a modern XPA brewed with lager yeast. Many of today's styles have become very blurry and with many it is very difficult to differentiate them as a unique style.”
In the course of doing my own legwork on the subject I came across a story I’d written for Stuff way back in 2018, which had a few examples listed and I’m pleased to note that of those listed Panhead Quickchange, Sawmill XPA and Brave Bottle Rocket (formerly Extra Pale Ale) all continue to survive and thrive!
Michael Donaldson: X marks the beer spot | Stuff
Beer of the Week No 2
I know I’ve reviewed Parrotdog Thunderbird Bright IPA in recent times but I wanted to revisit it in the wake of its New World Top 30 and also in the light of a beer that does the job it set out to do.
I shared a six-pack with some friends the other night, both of whom are big hazy IPA fans, and the response from both was unimpeachable in terms of recommendations with one guy (not really a beer geek, more a beer lover) noting that while it was really hoppy it was also “so light and crisp”. I’m pretty sure that’s the brief Parrotdog were trying to nail!
By the way, there’s no Beer of the Week No 3, sorry, as I’ve had a short week and been getting ready to go on holiday etc.
This is Brooklyn
I’ll leave you with some light entertainment in the form of an advert that famed director Spike Lee has done for Brooklyn Brewery via his creative agency Spike DDB.
The spot launched in the United Kingdom and is rolling out across most of Carlsberg Group’s European markets, according to a press release (Brooklyn sold its brand rights for Europe to Carlsberg in 2020). The short will be supported by a “multi-million-dollar global campaign” across TV, digital, billboards and social media. The press release called the campaign “another example of Carlsberg Group’s strategic investments to accelerate growth in the premium beer segment.
A “multi-million-dollar global campaign”! Who said craft beer was dead? That’s a huge investment…
Lee said in the press release: “A trailblazer of innovation and creativity in the heart of Brooklyn, the synergy we have with Brooklyn Brewery is obvious and strong. From brewing beer to directing films, Brooklyn is the creative foundation that inspires our work, and partnering allows us the opportunity to tell the stories of the neighbourhood and bring the Brooklyn State of Mind to the world.”
That’s all from me this week. Back next week with a round-up all the news this blogger can find.
