If there’s one thing that Wisconsin has no shortage of these days, it’s breweries. Craft and microbreweries have been sprouting up lately like hops in the spring, hoping to take advantage of what can only be characterized as a full-blown craft beer boom.
So it seems a little odd to say that Sheboygan’s 3 Sheeps Brewing Co., the latest brewer to tap into the craze, is poised to fill a niche in the beer market. But that’s exactly what it aims to do – launching a new brand in an area that’s ripe for new and local flavors.
“Sheboygan was one of the largest cities in Wisconsin that did not have a brewery or brewpub up until this point,” said Grant Pauly, owner and founder of 3 Sheeps Brewing. “Right now, as we’re getting up and running, we’re really just focusing on this local market. I want to make sure the beer’s coming off consistently and has the high quality that we’re looking to produce. Once that’s flowing and we’re comfortable, then we’ll start expanding our market reach.”
| “It started off with just doing a batch every couple of months, and slowly increased until I was brewing a batch at least once or twice a month.” – Grant Pauly, owner of 3 Sheeps Brewing |
By all accounts, Pauly is starting his new venture at the right time. Craft beers are more popular than ever. According to a report released at the end of March by the Brewers Association, craft brewers saw beer volume rise by 13% in 2011, while retail sales increased 15% from 2010 to 2011. That allowed craft brewers nationwide to carve out a market share above 5% for the first time ever.
But that doesn’t mean there isn’t room to grow. While brewing has traditionally been one of Wisconsin’s signature industries, brand loyalty in the state is more or less in line with the rest of the country. Both in Wisconsin and the U.S. as a whole, craft brewers’ market share hovers at around 5%. By contrast, craft brewers sell around 30% of the beer consumed in Oregon.
It’s that high ceiling that Pauly, whose family has its own brewing legacy, is no doubt counting on as 3 Sheeps prepares to gain a foothold in Sheboygan before eyeing other markets in the state.
A family affair
To say that beer is in Pauly’s blood is not just a sly reference to the homebrewing obsession that predated his foray into full-time beer-baronhood. His family bought Gutsch Brewery in 1926 during the heart of prohibition, eventually changing the name to Kingsbury Breweries and expanding its reach across the country.
It’s that brewing pedigree that first kindled Pauly’s interest in the industry, and may have led to his decision to leave another family business – Wisconsin Concrete Products – in order to pursue his dream.
“My father was a child when my family was still involved in [brewing], but hearing the stories and kind of just getting to walk through what his father and grandfather did, you just get a sense of pride in the brewing heritage in our family,” said Pauly. “And yes, it definitely piqued my interest in beer and particularly craft beer brewing.”
That spark of interest eventually became a time-consuming passion after Pauly’s wife gave him a homebrewing kit.
“It started off with just doing a batch every couple of months, and slowly increased until I was brewing a batch at least once or twice a month,” said Pauly. “A huge portion of our basement was converted into my homebrew laboratory, and it just became an obsession.”
Of course, it’s a big step from brewing beer as a hobby to launching your own microbrewery. Luckily, Pauly had the experience and business savvy to know when the time was right. He eventually quit his day job and took over a portion of Sheboygan’s old Wigwam woolen factory, sharing the space with Hops Haven Brew Haus.
“I just realized that I could do concrete for the rest of my life, but I didn’t get that real sense of fulfillment, and my wife and I talked a lot about it, and I realized that one avenue that I potentially could take would be in beer,” said Pauly. “When I started producing beers that people really enjoyed, were requesting, hoping I could make different things here and there for them, I realized I was somewhat talented at it, and it seemed like a realistic dream at that point.”
3 Sheeps’ beers are now on tap at several different bars and restaurants in Sheboygan, including Hops Haven, and Pauly looks to start bottling at the end of the summer and distributing to stores in Sheboygan – and possibly northern Milwaukee and Manitowoc.
Of course, the one disadvantage to riding the crest of a craze is that you’re not the only one in the game. 3 Sheeps is entering a crowded field, and grabbing consumers’ attention in a rapidly maturing market like craft brewing presents a keen challenge.
3 Sheeps’ strategy involves brewing high-quality beers that are just slightly tweaked from traditional offerings while drawing on the talents of other craft beer fans to hone the company’s branding.
The brewery’s lineup includes Enkel Biter, a traditional abbey single with some rye malt added “to spice up the back end”; Really Cool Waterslides IPA, a “complex and intricate” beer that includes four hop varieties; and Baaad Boy Black Wheat, an untraditional wheat beer with some chocolate notes and a little “roastiness.”
As far as marketing goes, the brewery is relying on indigenous talent as well. Steve Bossler, a local tattoo artist, created the company’s labels and sculpted its tap handles, and Dynamic, a Sheboygan-based firm, is handling the marketing.
“I hooked up with [Dynamic] early on,” said Pauly. “They’re a bunch of craft beer fans, and we’ve been having a lot of fun working together. … We have some excellent creative help in creating the brand of 3 Sheeps Brewing Co.”
Barreling forward
Right now, Pauly is encouraged by the response he’s getting from the soft launch of his products in Sheboygan. Five or 10 years down the line, he’d like to see 3 Sheeps gain enough of a foothold that it’s producing in the 8,000-barrel-a-year range, which would max out capacity at his current facility.
“I guess the abstract goal is to be at the point where we’re producing enough consistent product that we can get out there and have a lot of fun making some unique brands, and really spend time out in the public making a nice comfortable brewery to work at and come visit,” said Pauly.
While in the near term, Pauly would like to find a presence in the Madison market and start to blanket eastern and southern Wisconsin, his first task is to make sure his products conform to his own exacting standards.
“One thing that’s nice, since we’re working with Beechwood Sales and Service out of New Berlin, we’re hooked up with them for a statewide account,” said Pauly. “So we’ll be able to grow as quickly as we want, but I don’t want to pull a Krispy Kreme, expand fast and have quality go down, and get something that I’m not proud of to our customers.”
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