craft beer

Dialogue in Craft Brewing

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. 

Internalizing Diversity and Inclusion for Craft Breweries

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.

VENTIT Helps with Internal Dynamics of Breweries

May 18th, 2017DENVER, CO---In its ongoing effort to support craft breweries, the Brewery Mediation Network has developed a new program to help breweries manage their internal dynamics.  VENTIT® is designed as a “self-referral” process to connect brewery staff and associates with conflict management professionals at OvalOptions to address any frustrations or tensions that staff member or associate may have in the workplace or at home.

Some of the most damaging and distressing issues to a small business originate from within. Employee dissatisfaction can grow when not addressed, or addressed improperly or incompletely. Unpleasant attitude, tardiness, poor performance and even employee turnover can result from frustrations that fester for weeks, months or even years. The main obstacle to addressing such issues is the confrontation that is needed to bring them to attention. Most people are not comfortable bringing up sensitive issues to their supervisors, mostly due to fear of retribution and lack of effective methods. With a phone call or email to VENTIT®, they are free to vent their frustrations, discuss tensions and receive tips and advice on how they can proceed to address issues at hand.  Their name, position and conversations remain anonymous. Their colleagues and supervisors need not know anything about it.

If a caller has an issue that requires assistance beyond advice, then VENTIT®  can recommend more in-depth services, such as mediation, facilitation, and training at a discount from OvalOptions. As these are in-person methods, anonymity can no longer be maintained, but moving forward with such services is only at the discretion and permission of the caller.Overall, VENTIT®  serves three main functions: as a sort of release valve for frustrations and tensions; as a resource to receive timely tips and advice; and as a conduit to discounted services from OvalOptions.

Furthermore, if certain issues arise multiple times at a brewery, then the brewery ownership is contacted to relay the concern (names and positions are still withheld). In this way, a brewery is alerted to continuous, potentially harmful issues of which it may not be aware.And that’s not all. VENTIT®  may be utilized for a caller’s home life as well. Just as it is important not to “bring work home” (and VENTIT®  helps with that), one should not “bring home to work”. If a VENTIT® -enrolled company’s associate is experiencing tensions or disputes at home (with spouse, neighbors, etc.), then s/he can use VENTIT® .VENTIT® is inclusive. Any person who works at an enrolled brewery, whether they be a brewer, server, owner or manager, can utilize VENTIT®.  It takes a lot of people to successfully run a brewery and should all have access to effective and efficient assistance.For more information about VENTIT® visit www.OvalOptions.com/VENTIT or email Jason Gladfelter: Jason@OvalOptions.com 

Please "Have a Beer" Responsibly

Pub Dialogue2

Pub Dialogue2

The new #OpenYourWorld Heineken commercial is turning some heads. Instead of depicting upscale parties, a fun night out or just fun times between friends, it highlights the differences between people that make us unique, and which make us uncomfortable. Addressing and living with such diverse differences is a source of social and political tension. What this commercial suggests is that we can all sit down and talk about these, civilly, over a beer. Key word is "can". While the commercial does not illustrate bringing opposing views together over a beer as being easy, and tensions can be sensed, there are many things that can go wrong if such an exercise was followed without taking precautions.

We believe discussing issues is paramount to human society, and must not be engaged in lightly.A little bit of booze could loosen some personal taboos and open the door to flexibility and empathy, but this should not be relied upon. Alcohol can also increase aggression, limit tolerance and weaken and complicate communication. Beer does not automatically open your world.Even without alcohol, communication is vulnerable. Communication is very difficult to begin with. There are many moving parts, subtle signals, nuances and unconscious reactions. Add value differences and emotions to this complex mix and things can go wrong quickly and intensely. Sober, tipsy or drunk, communication can (and has) gone haywire.It is also important to realize that things won’t change in the time it takes to share a beer. People won’t suddenly understand each other in 30 minutes or an hour.

The goal should go beyond achieving a sit-down.How issues are discussed and what happens afterword are critical. Sitting down and talking is a good start, but it must be an enjoyable experience first, with participants leaving feeling good about what happened. This means debate is a no-no, as are preaching, lecturing and ad hominem phrases. Curiosity is as important as honesty.The commercial does not outline the selection of its participants. It seems they are strangers, but it also seems that they have agreed to some sort of experiment. This may indicate that the participants are flexible to experience something new and willing for an adventure.This is not to say that sitting down two strangers to talk about contentious issues over a beer is impossible or a bad idea. Far from it, but certain protocols must be in place and followed for such an occasion.

An experienced facilitator can help keep participants on topic and civil while allowing each to voice their positions and interest. The facilitator can take notes on hot-button topics and what issues may need more attention, while helping clarify comments and reactions.Since starting ourPub Dialoguesseries in January 2012, we have come to realize that having our participants come to agreement is not only impossible, but unwanted by the participants and, really, by us. It is perfectly OK to have differing viewpoints. What divides us and pushes our positions to extremes is how we discuss these differences, their source, effects and problems they encounter.  There is an unseen line on both he Left and the Right that when crossed, discussion ceases, problem solving diminishes and divisions widen. What we realized is that while we cannot/do not wish to erase differences, what we can and want to do is bring the extremes of each issue close enough together so that they can and are willing to discuss issues civilly. From there, we can cultivate cooperation, creativity and solution development.

What is the Craft Beer Revolution?

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freestate

Jim Koch, founder of Boston Beer Company (makers of Sam Adams), claims the revolution is slowing down. His New York Times op-ed explains his perspective, with the main reasons being pressure in various forms from multinational brewers, some “slack government antitrust oversight”, and distribution control. He has his points, and his article has its critics. A Men’s Journal articleasked Greg Doroski, head brewer at Threes Brewing, to respond to Mr. Koch’s opinion. His take is that while he agrees with Mr. Koch that such external threats exist, some threats internal to craft beer are just as real. After all, Boston Beer is larger and its influence stronger relative to almost all craft breweries.

It seems Mr. Doroski feels that infighting for shelf and tap space threatens the industry. And then, of course, a very big breweryresponds.We can discuss endlessly about who is right and who is wrong, but I want to venture to question part of the premise; what is the “craft beer revolution”?  On the surface, the answer seems obvious; the increased number of craft breweries in the U.S., currently hovering somewhere around 5,000. And we can discuss theBrewers Association definition of “craft brewing”. But that gets us away from the “revolution” to qualifiers and into the weeds. The above opinions and articles concentrate on one area of the beer industry: external sales. Indicators used to gauge craft brewing focus on the normal channels of consumerism, like retail, bars and restaurants. But it seems to me that the “revolution” is not about shelf space, tap handles or percentage of market.It’s the brewery tap room. Sure, not every brewery has, or is allowed to have, a tap room, depending on various state laws. But it’s the reintroduction of the old-school beer/brewery model that sparked the revolution.

It’s these public yet intimate places that brings strangers together from all walks of life. Before these, restaurants and bars attracted clientele with a dedicated theme or image. The sports bar, the honkytonk, the Jimmy Buffett bar, etc. all served the same drinks, perhaps in varying formats. Each venue had their own homogenous clientele.  Bikers go to biker bars, for example. The introduction libations unique to a locale broke the homogeneity and started the craft beer revolution, which continues to attract consumers.My first experience of the revolution was at Free State Brewing in Lawrence, KS back in the 1990s. Little did I know that my first step into that brewery signaled the end of my Budweiser days. I ordered the Copperhead Ale and never looked back. But I remember thinking that while the beer was so different than Bud, and quite delicious, there was something more. Free State was, and still is, a brewpub; a restaurant and brewery. And I saw KU students, “town folk”, businessmen, government employees, attorneys, musicians, and tourists all enjoying the same place. In many cases, they were interacting…civilly…and willingly!  I mean, KU and Lawrence are quite liberal and smack dab in the middle of “red-state country”. It was quite rare to see the Left and Right sharing something in common, talking and laughing together. But, there it was right before my eyes.

Differences didn’t matter once you walked into Free State, and while I haven’t been there in over a year, they probably still don’t. (If you ever go there, get the black been quesadilla and an Ad Astra ale). I live in Denver (well, Lakewood) now, and I’ve seen that Free State experience come out this way. Now, before you jump on me I know Free State didn’t start this revolution, I’m just using it as illustration. In Denver, Strange Craft Beer Company is where “strangers meet friends”; Comrade Brewing invites you to “join the party”; you can drink Bierstadt’s and Hogshead’s session beers all day with much impairment, thereby extending time you spend with strangers and friends. Plenty of breweries in Colorado exemplify this revolution; as well as breweries in Oregon, California, Massachusetts, etc.The effects of the craft beer revolution started with a trickle into retail, restaurants and bars. Now it is a torrent, influencing breweries to take a dip into the promising, and I contend perilous, current.  The heart of the revolution is the small, local business providing their neighbors with the “social lubricant” called beer. The soul of the revolution is the common ground within their walls, where we all can have a good time and make new friends.Is this revolution slowing down? I don’t think so. But if breweries get caught up in the fight for shelf space and tap handles, then they risk losing the momentum and ignoring epicenter of the revolution. Do you disagree? Well, let’s hit the nearest brewery and discuss!

Can Craft Breweries Save America?

Craft brewing in America is booming, providing consumers a diverse selection from over 4,000 breweries. But some of those breweries have potential to offer the American public something else: A conduit for national (and personal) progress. If 2016 has taught us anything it is that America has communication problemsblame. From our private lives to political leadership, America is drowning in oceans of cynical opposition and blame; that differences equate to division, and division creates “sides”, and those sides must do battle to produce a “winner”. When we concentrate on debate, we sacrifice truth, accuracy, and finding and creating solutions. Debate often serves as a roadblock. Winning is not solving.America’s Founding Fathers knew that debating each other was perilous.  As Benjamin Franklin stated, “We must, indeed, all hang together or, most assuredly, we shall all hang separately.”  Infighting and banter would have, literally, led to their deaths. Instead, they sat down, face to face, to discuss differences and create new avenues, which led to independence and, later, the Constitution. And they did this without telephones, telegraphs, planes, trains, cars, the Internet and social media.Their conduit was public spaces: Local taverns and inns, many of which were small breweries.  While there, they engaged in Dialogue: In-person discussions that were honest, contentious and civil. They didn’t abandon debate, but they didn’t rely on it. They invited critical analysis and kept cynical opposition at bay (for the most part). Their dialogues contained more than critique; they invoked critical thinking, they looked for new insights and various perspectives, and cautioned against hubris to reac historic solutions. America today lacks the overall awareness of dialogue, acknowledgement of its benefits, and the skills to engage it. Thankfully, however, the safe spaces our Founding Fathers used have returned. Enter craft breweries. Many are local businesses. They are popular and public. They attract people from all walks of life. The ethos of a local craft brewery is community, and that of the craft brewing industry is comradery. Community and comradery are ingredients of a great recipe. When mixed with Dialogue they can generate progress, problem solving and unity.Yet, Dialogue is tricky and difficult, and should not be engaged haphazardly or on a whim. Since dialogue often includes contentious issues, emotions can run high and, if not managed properly, can derail the endeavor making matters worse.  Dialogue participants must understand that their ideas, emotions, beliefs and interests will be challenged, not for ridicule, but for understanding. They should not see Dialogue as an opportunity to convince others and “win” the argument, but rather to understand perspectives and recognize obstacles. Cynicism may pop up, and it must be properly managed to minimize its impact.  Participants must realize that Disagreement is required, but Division is not. They must also be flexible with their positions, consider suggestions, and allow for personal change (albeit not instant). And they must treat others with respect and maintain civility. But first, they need to meet, in-person, and in safe spaces. Using “out-person” conduits, such as social media and the Internet, we further our division by communicating to each other, not with each other. As a result, we focus on that we disagree, and ignore how we do so.  In-person Dialogue aims not to eliminate disagreement, but to enhance how we understand, learn from, and overcome our differences so that they won’t divide us.  Intense, critical, curious and civil discussions over a pint of craft beer just may save America. If dialogue participants disagree on everything else, at least they can agree on having a locally brewed, delicious beer. From there, once a commonality is recognized, anything can happen. More commonalities emerge and problem solving begins. Once again, America looks to local breweries to begin its (re)unification.To help spark the dialogue movement, we have created the Pub Dialogues in the Denver metro area. This somewhat monthly event has garnered large and small crowds, but after each session participants cheer the event. Many admit that they anticipated shouting matches and didn't know they could actually talk to "opponents". We applaud their openness and flexibility to experiment with face-to-face dialogue. Every "side" is allowed to speak uninterrupted.  Participants gain insight to others and better understand various perspectives. Perhaps the biggest benefit is that they experienced civil dialogue; that they can get past disagreement and onto problem solving. And that is the primary goal of the Pub Dialogues; to help people recognize that people can resolve issues among themselves and not rely on social media, presidential debates and cynicism.


 

The People Ingredient: A Craft Brewery's Biggest Threat?

By Jason Gladfelter, Director of Brewery Mediation NetworkThis article expands on the article written by Ed Sealover published in the Denver Business Journal Aug. 5th: "What Ails Colorado Brewing". Craft brewing is (still) booming. The Colorado economy alone sees $1.15 billion from the burgeoning brewery business, and currently there are more than 300 brewing licenses in Colorado, according to the Boulder-based Brewers Association. The craft brew business certainly looks delicious…from afar.Yet growing pains persist. Sure, it has high-profile enemies in the form of big-brewer buyouts, trademark disputes and the forecasted bubble burst, but perhaps the most crippling threat resides within the industry and individual breweries themselves: your crew and you. Internal friction, poor communication and disjointed operations can cost a brewery dearly and even lead to its demise.  If this is uncomfortable for you to hear, good. That means you must keep reading.Every brewery has a People Ingredient, which has two main components: the obvious (people) and the formless (their interactions).  While it is common knowledge that breweries hire qualified individuals, it is also important to keep them, to utilize their skills and benefit from their role and input on the brewery team.  How?  That's a great question, and this is where the tricky part comes into play.Interpersonal interaction, communication and cooperation face obstacles, and the devil is in the details.  These terms are not new, but are taken for granted or misunderstood.  What does communication actually entail?  What are considered "interactions"? And does cooperation mean more than just getting along?The keystone is communication. We must pay heed to what Sun Tzu said: "know the enemy and know yourself." In this case, the enemy is poor interpersonal skills, and yourself is…well, yourself.  How well do you communicate? Communicating is more than using the correct words; it includes listening, understanding the process of word selection, the words you select, your state of mind, your overt and latent emotions, the medium used, knowing your audience, and why you feel compelled to communicate at all.  This is not easy, to say the least. Even the best businesses can suffer from fragile internal dynamics, miscommunication and misunderstandings that can decrease productivity and foster disappointing results.While poor communication and disjointed operations can plague any company, the craft brewery industry is especially vulnerable to these common pitfalls. Many breweries start out as small businesses, without the budget or scope to maintain full-time staff to manage the daily facets and dynamics of internal communications, or install and maintain special systems for grievances and feedback.  Often that responsibility falls on the brewer, the owner, a board member or shift supervisor – if there are any.  And their glasses already runneth over with their primary responsibilities. Furthermore, many small craft breweries are formed by close knit groups where established relationships are plunged into unfamiliar waters. Emotions can affect difficult business decisions, and vice versa, making sticky situations almost immovable and especially frustrating.  Fortunately, there are processes craft breweries can acquire and utilize to prevent and avoid potential internal disasters.In a March 8, 2016 Forbes article, Harpoon Brewery CEO Dan Kenary discussed his leadership lessons and revealed that he and his business partner couldn’t co-exist. Eventually, Kenary’s passion for beer conflicted with the need for profits. He realized the salience of the People Ingredient. His employees became his partners and culture came first.David Lin, Chairman of Comrade Brewing, understands the importance of the People Ingredient. With a background in hospitality management and sporting an MBA, David hires people "who are smarter and more talented" than himself and "there's no shortage of those people."  He applies the age old motto: "treat people like you would want to be treated." While this is great advice with a strong foundation, keeping up its practice in a business setting can be difficult. Especially if starting a brewery involves outside investors.Brewers focus on creating beer they love: Investors and owners rightfully seek return on investment and to keep costs low.  Disagreements and disputes between the sides ensue.  Egos and judgements inflate. “Brewers are not managers,” a brewing industry profession once told me. Add to that its reverse, “managers are not brewers,” and we get a recipe for toxicity and damage.  But they need each other.Or as Tim Myers, Strange Craft Beer Company owner deftly puts it: “being an awesome home brewer doesn’t make you an awesome business partner…breweries that have great recipes but no business savvy have had to find out how to survive.”Myers should know. He spent 18 months in conflict with a Boston home brew shop over trademark and other legal issues. Now he is parting ways with a business partner and friend of 12 years.  “We were a textbook case for everything that could go wrong, would go wrong.” he adds.  “Two buddies going into business together is almost as risky as a couple thinking that having a child can save a marriage!” Myers describes themselves as naïve, thinking they knew everything needed to open a brewery. They didn’t have responsible partner practices, they had no operating agreement and “while we were frenetically running and trying to expand the business, things failed.” He currently spends “too much of his time” negotiating a buyout. Hardly a yellow brick road.“I’m happy we’re still alive,” says Myers, adding that having business experience in one industry doesn’t prepare you for the craft brewery business. He wishes he had spent time and money using business or communication consultants on crafting an operating agreement, as well as a buy/sell agreement.  “If we had written and verbal communication plans in place and had agreed on a set of solutions while we were all on the same page, it would have changed everything.  When forming a partnership, everyone assumes it will be rosy; no one talks about the ‘what if’s.’  It’s not a negative process to plan for the future, it’s looking out and protecting each other.”  One such plan is inserting a mediation clause into written agreements, whereby parties utilize mediation if/when disagreements and disputes arise. Mediation is the middle step between DIY and securing legal advocacy, and it can save time, money, stress and your business.“Failure is a good teacher, instant success isn’t,” so says Bill Eye, current head of Denver's new Bierstadt Lagerhaus. At age 53 he is considered a veteran amongst the younger craft brewers.  Eye is another example of a passionate brewer who had to learn from what he describes as “lost dreams”.  He is emphatic in proselytizing a philosophy rooted in cynicism yet yearning for the positive.   “Too many brewers and business partners become at odds for it to be a coincidence.  Before forming a partnership, you must examine your goals or become victims of circumstance”.The circumstance Eye refers to is the reality that brewers have the passion: they speak and live the culture before ever attempting to make it a career – they go to conventions and tastings and collaborative festivals. They follow their artistic motivations. Then the reality of needing capital causes the search for a financial partner, who naturally wants return on her/his investments. The beer makers want something more esoteric – they want the lifestyle that goes with the beer making:  “I love the feeling of walking around the bar and seeing people enjoying my beer; it’s so validating,” says Eye. “But the investors don’t need that, they just want the beer sold and distributed”.  Eye adds “It’s not wrong, it’s just the reality”.This is where the cycle of incommunicado begins, and it manifests itself in completely different approaches, from day-to-day to long-term.  It leads to animosity, grudges, hazy perspectives, misunderstanding, dropped duties and lost jobs. It creates a culture where money is expected to trump everything and brewers feel resentful and are lead to believe they don’t have value and are not protected.  “Business people can’t be successful without us,” says Eye. “We really do have intellectual property and knowledge that should be valued as much as the money side”.His lessons learned?  Mandatory must-do: operating agreements that are symbiotic as well as balanced (“So I won’t lose control”), goals that are delineated in advance, business plans that are joint-collaborations, and partners who understand with whom they are going into business. This takes intense, interactive strategic planning meetings to discover, understand and prepare for the details of running a brewing business. Not many individuals have all the answers, or even all the questions. Pooling intellectual and creative resources can address this challenge.“There is more than one way to do things; every brewer in the industry has an opinion on nitro beers or Vermont style IPAs. We can disagree at fundamental levels, but the best way to flourish as an industry is to come together and share our points of view,” says Adam Dunbar, Mountain West District Manager for Green Flash Brewing Co. Dunbar loves his position, the company and the infrastructure at Green Flash. But after intense frustrations at a prior position – experiencing what he now considers a lack of communication, confusing hierarchy and vague strategies—he relishes the current family-oriented culture and clear structure at Green Flash. Communication is collaborative (weekly meetings, sharing ideas openly and honestly). He describes fluid working conditions and more of a flat hierarchy, and tools such as a best practices procedures and a manual.  Adam would like to see more in-person brewers’ summits and fewer blog, Facebook and online complaints.  “At the end of the day we will learn something and it will be beneficial. Let’s face it, our brains are wired differently and we should find solidarity in coming together and talking shop.”“Mario”, a self-proclaimed beer geek with a science and business background, entered the craft brewery world believing he could truly pair his academic acumen with his hobby.  Within a few months, he was out. The main reason: communication. “I was a manager yet didn’t know what the strategy was.” Mario sees most of the craft beer industry made of young, non-corporate-trained people. There’s a lack of organizations structure and no communication processes. There is little planning and communication of goals and objectives, making it difficult to impossible for employees to do their jobs effectively.  Mario goes on to say that brewers need to hire consultants specialized in business conflict to train them in planning, strategy, communication and conflict management.  They need to be able to “keep their employees from feeling like they’re shooting from the hip”.  “Sometimes a little corporate-type of structure is a good thing,” he says. His biggest piece of advice: “don’t wait until you need mediation, put in practices to avoid going out of business.” Of course, mediation is always an option.These cautionary tales serve as critical advice, but more importantly they highlight the need to dig deeper into, and understand, a brewery's People Ingredient.  Brewery owners and staff must respect the importance of communication and interaction and the details therein. They must not ignore the ‘soft skills’ designed to strengthen intra-brewery communication and relations.  Talented, artistic individuals and experienced business people require strong communications and interactions to become a symbiotic and successful team.  After all, what can make or break a brewing business is its skill set involving personal interaction, conflict management and communication. But it's tricky once we start peeling back the layers.Communication, for example, has many layers aside from personal exchanges; operating agreements, best practices, team cohesion, organizational structure, planning, strategies and objectives, training and development as well as conflict management and problem solving. Honest feedback and constructive criticism are always "welcomed", but they are still difficult to absorb and provide. It helps to have constant or continual personal interaction, if for no other reason than to keep people connected. Mike Sardina at Societe Brewing outlines some of their practices to foster interpersonal relationships. "We have a staff appreciation day each year, and we sponsor group outings whenever possible.  We have a 'beer with a brewer' program where one of our Tasting Room staff members will go out for a beer with one of our Co-Founders or with a brewer or with me personally." Even if they engage in no shop-talk, these measures help improve interactions.Adopting and honing skills to improve intra-brewery relations, can literally be the difference between thriving and failure. This is a difficult task in no small part due to the personal introspection, criticism and learning, as those profiled have experienced.  There is no shame in admitting mistakes, ignorance or lack of skills. It just means that you're wiser than you were yesterday and can improve.  Not easy; but to quote Sun Tzu again, "…If you do not know your enemies nor yourself, you will be imperiled in every battle; if you do not know your enemies but do know yourself, you will win one and lose one; if you know your enemies and know yourself, you will not be imperiled in a hundred battles." The battle here is against the erosion of the People Ingredient.  Knowing yourself is the first step to better understand, manage and enrich your People Ingredient. And your brewery will thank you for it.--------------------------------------------------------------------------------------------Jason Gladfelter is Director of the Brewery Mediation Network and a principal at Oval Options for Conflict Management, an organization that helps business, communities, and families find better options for resolving their conflict through mediation, strategic planning, evaluation, arbitration, facilitation, coaching and training.  He has more than 20 years of experience in team leadership, management and customer relations positions through his extensive work in the retail, sales and training industries. He is a Cicerone® Beer Server, has written over 3,000 beer reviews and is a home brewer.  Jason is also working on implementing a series of Brewer Summits. Twitter @BeerMediation About Oval Options: Oval Options (www.ovaloptions.com) is a Denver-based Conflict Management and Mediation firm. We help clients find the most appropriate method for resolving disputes. Our pool of practitioners covers a wide range of industries including domestic (divorce/child custody), health care, elder care, estate, construction, community mediation, craft brewing & wine, and housing.  OvalOptions is home to Brewery Mediation Network which helps connect breweries with affordable dispute resolution methods. It handles all types of disputes, including the most noticeable (Trademarks) to the most common (partnerships).  The Network also makes available facilitation, coaching, consulting, team building and other trainings to breweries in areas including:

What does beer mean to you?

July 6, 2016

What does beer mean to you? Sounds like a silly question. After all, beer is just a beverage. Sure, water means life…but beer? It’s just water with extra stuff in it.

Yet, it’s so much more. You don’t just throw the ingredients in a blender and hit “puree”. Brewing beer is a science. Dr. Paul Ogg was instrumental in teaching me that. He took the time to explain the many nuances in brewing chemistry and biology in both scientific and layman’s terms. He didn’t have to, but he started in on me the first time I met him. We were taste testing Jeff Griffith’s beers at Golden City Brewing when Jeff was head brewer there. I sat next to some guy—Paul—and started in on the beers. Jeff wanted honest feedback, and Paul gave it to him and explained what his feedback meant and where it came from. His main questions were, “what do you smell?” and “what do you taste?”. Sounds simple, right? But the answers were not easy to articulate, and he helped me understand what I was smelling and tasting and why. I was overwhelmed by his knowledge then, 10+ years ago, and now.

Paul died today. A knockdown, drag-out fight with a rare cancer took him. A couple months ago, some mutual friends of Paul decided that if we couldn’t help him, we’ll help his family. Medical bills, travel expenses, lost salary and financial support for his two girls, at least, needed attention. The scientific lessons Paul schooled me on years ago gave way to social lessons today. His friends started where they knew they could: Beer.

Within days the #BiggestSmallBeerEvPaul Halloweener campaign was underway, led by Paul's brewery, Declaration. Over a hundred breweries from all 50 states joined in to brew a beer based on a recipe drafted by Paul. The goal was to raise awareness; awareness for several things. That craft beer is alive and well.  That cancer can strike anyone, anytime without remorse, discrimination, or humility. That beer is powerful communal tool. The fact that over 100 breweries participated in that campaign, with very little notice and by those who never met Paul, says something about the latent power behind beer. It’s a common bond, a similarity between people separated by great distances, that can bring them together without reservation, question or hesitation.

So, what does beer mean to me? It means togetherness: “Let’s go grab a beer.”  Hospitality: “Come on in, want a beer?” Familiarity: “Game’s on Sunday. Of course we’ll have beer.” Relaxation: “Calm down. Have a beer.” Adventure: "We're going to visit every brewery in this city!" It’s so many other things and a celebration of Paul’s life: “Cheers, my friend. Godspeed.” 

Alan Simons (Dry Dock Brewing), Dr. Paul Ogg (Declaration Brewing), Me (drinking what they brew)

Craft Brewing's Internal Challenges

A recent article stirred the pot a bit in the craft brewing industry. Cheers Magazine interviewed Jon Taffer and asked him several questions about running a bar and/or restaurant business, one requesting his opinion on craft beer in 2016. His response was not all positive and Julia Herz of the Brewers Association disagrees with Mr. Taffer's assessment and prognosis of craft beer.  At the crux of this disagreement are the numbers Mr. Taffer uses to amplify his opinion. Ms. Herz concentrates on defending such numbers and her points are sound.maxresdefaultYet, concentration on such numbers overlooks key points in Mr. Taffer's opinion on craft breweries: "They’re rookie-run. The problem is that people are now looking at craft beer as an investment opportunity. They’re getting into it to make money. Many people don’t get into it for the love of making beer."  While the last sentence may be a stretch ("many people..."), he highlights very real issues, that could damage individual breweries and trickle up to the industry as a whole.  In short, brewing is a business and business people are not brewers--and vice versa. Doing one incorrectly can be disastrous.This is, in my opinion, the biggest threat to the craft brewing industry. The marriage of brewing art and science with business operations and decisions. Other threats exist, and I will examine them in a short while. Each threat begins as a challenge that goes overlooked, ignored, misunderstood or is poorly managed. Over time, it grows, intensifies and starts taking a toll on the brewery: a missed infection here, a disgruntled customer there, and shipments of material start arriving late thereby pushing back production--the list could be endless.  Addressing challenges soon and effectively is one of the most important actions a brewery can take.Ownership FrictionIt is rare that ownership of a brewery rests in the hands of an individual. Whether it’s a family business, one built by friends, or a contract between brewer and investor, disagreements emerge. How these are managed is crucial to not only brewery success, but business survival.It is common in many industries that disagreements exist between production and sales, finance and marketing, or management and staff. Craft brewing is not immune to such tensions, especially when they operate with a small team. Not everybody understands the science and art of brewing. And not everybody understands the intricacies and management of business. It is safe to say that, for the most part, brewers do not understand business, and investors/partners do not understand brewing. To make matters worse, often these misunderstandings are not evident to each party.  For example, a brewer may not understand why the partner wants to sell a diacetyl-laced batch, while the partner cannot see reason to dump it.When these two areas combine to form a partnership, a new type of management is needed, or the business can fall apart. This new management requires a different skillset than the brewer and business partner possess.  One such incident of disagreement may seem like no big deal. Yet, when another round of disagreement comes up, the two sides intensify their message and perspective. Soon enough the misalignment between interests becomes a tension between people: It gets personal.  Positions entrench and communication breaks down just in time to allow another important issue, like staffing, slip between them.Over time, an ostensibly trivial issue becomes germane to other issues that exacerbate tensions and erode the internal function of the brewery. It is imperative to identify disagreements and address them quickly and effectively, which can be tricky. Here are a few tips that must be considered when internal issues are discussed:

  1. Keep an open mind that you may have a hand in the problem. It may not be you or something you did, but to totally shut out that notion is a critical mistake
  2. Make a true effort to understand the other side's perspectives
  3. Do not dismiss the other side's perspective, try to genuinely understand it
  4. State your interests as basic as you can. Keep asking yourself, "why is this an interest to me?" to get to the root of your concern
  5. Do the same with the other side; "why is this of interest to you?"…but in a polite, non-accusative nature
  6. Be open to ideas, no matter how crazy they may seem. Sometimes those "dumb ideas" inspire good ones
  7. Do not hesitate to ask for outside assistance, like mediation and facilitation. If tensions have grown even somewhat rigid, internal meetings may not be effective, and can even make them worse. A third party can have many functions, such as a sounding board, target, communication liaison, and referee
  8. Understand that emotions will be prevalent and venting is necessary. Often, an outside dispassionate party can endure the brunt of venting to clear the air and get through to interests
  9. Be prepared to change. Third party mediators and facilitators look for opportunities for collaboration. While compromise is a lose-lose agreement that may work, collaboration can be a way to change behavior without giving up anything or even adding value to the situations

Craft Beer and Syrian Refugees

Refugees and Craft Beer

The Brewers Association article on craft brewing’s charitable donations highlights how involved craft breweries are in their communities.  They donate money to various charities as well as providing product and space to others. They create and promote fundraising events and raise awareness to many causes. They even raise money to help employees, customers and strangers manage medical expenses and see them through tough times.  To many of us beer geeks this is not surprising, but the total amount, $71 Million, is phenomenal and that does not include the time and energy breweries put forth to achieve this number.The article also highlights the potential for what craft breweries can do for their community and beyond, in ways not reflected in dollars. Venues such as craft breweries, tap houses and tap rooms attract people from various and differing backgrounds and opposing perspectives. Yet, they all share a common interest: good beer. This interest can serve as the cornerstone for important, perhaps contentious, dialogue. And through dialogue difficult social, political, religious and community issues can be effectively addressed. It is not easy, but nothing worthwhile is. Such venues can cultivate a spirit of open and honest conversation, and provide a safe and open atmosphere to encourage people to discuss contentious issues without fear of backlash and ridicule. It is a way to help a community gather resources and information to effectively address certain issues and guard against hastily made decisions, which usually end up exasperating the original issue.Let’s take the Syrian refugee crisis as an example--quite the contentious topic with short-, medium-, and long-term implications. It requires in-depth conversation from multiple viewpoints in order to effectively address challenges it presents, separate emotional responses and practical measures, and remove political influence.  Certainly not an easy task.Yet, it is possible for people from all sides of an issue to converse in a civil manner. To discuss what upsets them. To listen to what upsets others, why certain things upset themselves, and to collectively better understand such complex situations. Are the refugees a threat to security? Are they just people who need help? Which is correct? Or are they both correct? Or both wrong, and there's another possibility?  This cannot be discovered through Facebook, Twitter or comment threads online. It must be done in person. Getting opposite viewpoints in the same room is challenging, though.  “Come on down andPub Dialogue2 talk with someone who disagrees with you” is not an appealing invitation. But craft beer is. Having a discussion over a pint is much more attractive than having a contentious discussion.And such discussions are germane to discovery of effective solutions. Surface level questions lead to deeper inquiry that probe for more complete information.  Are Syrian refugees harmless? Why or why not? What is the refugee acceptance process? Does it include placement and monitoring? What is to gain from accepting a refugee population? These are important questions to ask and to answer, but they aren't the only ones. Questions can counter conclusions people already hold, and challenging them can make them defensive, annoyed, dismissive or even angry. Yet a society benefits from having uncomfortable conversations.  Of course alcohol can inhibit control over emotions, and nothing can get emotions boiling like politics and social issues, which can increase the likelihood of shouting and name-calling.  This can happen anyway in tap houses and tap rooms, but what a venue can do is institute a public dialogue program that brings in professional facilitators to manage emotions and keep conversation on track and safe.Much like during the Colonial days, breweries and other craft beer venues could be the place in a community for public discussion on important topics, like the Syrian refugee crisis, and get away from pointless social media banter. Public dialogue is no easy task and should not be undertaken lightly. But the power of public dialogue, when harnessed, can provide enormous benefits to the brewery, tap house, community and the larger society. Real world problems addressed, understood and resolved in the real world, not cyberspace. Maybe we can call it "Craft Conversations".For more information about models of public dialogue, please contact Jason. -------------------------------------------------------------------- 

Brewed the Hard Way and Craft Beer: Mudslinging is Dirty Business

If someone throws a ball of mud at you, how would you react? Probably feel a bit disgusted and affronted, and maybe return the favor. It’s natural to seek retribution, but rarely does it resolve anything. After a while, mud is everywhere.This is evident in the political world, especially during election season, when candidates attempt to tear down each other to benefit themselves. It is quite ugly.  Now we have seen this mudslinging enter the beer world through a Super Bowl commercial. Actually, it’s been around for a while; a latent dispute that was not yet ready for prime time.The craft (or micro) brewing community has attacked beers of BMC (Bud-Miller-Coors) for decades now. Partly because they had to in order to market the distinctiveness of their products, but also because of how much the craft beer community detests BMC’s products, brewing processes and business practices. Occasionally a craft brewer would praise the remarkable accomplishments of BMC, but according to (most of) the craft beer community, BMC makes “piss beer”, or “fizzy, yellow wimpy beer”.AB/InBev’s "Brewed the Hard Way" Super Bowl commercial thrust this dispute into prime time with a sharp counterpunch. It elicited a cry of “foul” from the craft beer industry. Craft beer geeks, dorks, brewers and connoisseurs have responded vehemently to this macro brewery's advertisement.It seems the years of smaller attacks from the craft beer community finally pushed AB/InBev to say “enough is enough” and start throwing mud back at the craft beer community. Perhaps the success and growth of the craft beer market segment has AB/InBev a bit nervous. And when you make the big dog nervous, it may just bite. Regardless, can craft beer take a dose of their own medicine?Judging from social media posts, the answer is “no”.  Perhaps it’s a bit unfair that one side has a Super Bowl commercial and the other doesn’t. Yet, just because the BMCs are international conglomerates does not mean they are impervious to insults. They employ brewers, who brew a certain style of beer and feel insulted when that product is belittled. Perhaps the ongoing “piss beer” insults persuaded retaliation in the same vein.Nor are the 3,000+ breweries in the U.S. impervious to insults. A vast majority are small businesses and conduct business on a personal level. Handshakes and honesty are paramount to small business owners. When they are misled or lied to, or they see promises broken, it affects them personally.  So they get defensive when they see a Super Bowl commercial attacking their livelihood, and insult them with the "brewed the hard way" tagline. Small brewery owners know firsthand how hard it is to brew good beer. Having a Macro brewery belittle this is a low blow and very personal. The temptation to return the ball of mud mounts.Does the brewing industry, macro and micro, really possess a desire to develop a mudslinging campaign? I hope not. I hope they respect each other’s business publicly and behind the scenes. Staying clean in a mud war is difficult, especially when the mud continues to fly. There is nothing to gain through slinging insults. Of course, turning the other cheek is also difficult, but it can help clean up the mess. Respect the competition. Employ some empathy to another’s livelihood. Discontinue the “one-upping”.   Take the high road and let the beer flow.------------------------------------------

Running out of Names only a Symptom for Craft Brewers

Branding is an important aspect of any business and craft brewing is no exception. There are two main complications craft breweries face in branding their product. One is, what happens when two breweries share the same, or similar, names, logos or images? The other is coming up with a unique brand in the first place, which is often difficult and time-consuming task. A recent NPR article highlights this challenge; 3,000+ breweries equals a short list of available names and logos. But this is a symptom of an underlying issue.It is not so much that craft breweries are running out of names, but rather that they have not realized their creative potential to achieve a unique brand. This limitation makes the branding process unnecessarily difficult and time-consuming. Engaging a third party facilitator during the brainstorming process helps tap the brewery team’s imagination, ideas and cooperation to overcome the "short list" challenge.A skilled facilitator enables the parts of a craft brewery team to strengthen its whole. Each member can voice their concerns, articulate ideas and discover new ones, and examine decisions. As many minds are better than one, a good brainstorming session will see many ideas, good and bad, thrown around openly. Sometimes, seemingly silly ideas can serve as a catalyst for generating great ideas. Facilitation vets all ideas and navigates the group towards a collective and creative result.An outside facilitator grants the additional benefits of offering a different perspective and minimizing the restraints of groupthink. During facilitation, each member’s voice is heard, clarified and considered by all. No one is persuaded to think a certain way, or needs to worry about backlash from saying something different. A day’s worth of group facilitation can help a craft brewery achieve uniqueness and establish a name for itself for years to come.This does not guarantee smooth sailing through trademark waters, however. There is no clear distinction between similarity and difference, and this gray area varies throughout the industry and legal circles. One may see a name or logo as unique, another may see the same name or logo as influenced by their name or logo. A trademark dispute can be an ugly, expensive and daunting prospect. A common scenario sees a craft brewery requesting another craft brewery to change a name or design. If no conciliation is reached, then they retain legal counsel to send a cease and desist letter. Well, nothing will escalate a dispute quicker than a C/D letter. It is worrisome to receive anything in “legalese”. Once lawyers are involved, people tend to coil up into a defensive position, and this can cut off communication and block creative solution generation, not to mention engaging an expensive struggle. And if such dispute hits social media, then a firestorm erupts.But there are other steps unseen and not usually taken. The next step should include at least a call to a mediator before securing legal counsel (this does not mean that legal counsel must be excluded). While (most) attorneys advocate for their client, a mediator advocates for the process of mediation. That is, a mediator's focus is helping people communicate effectively, openly and in a safe space. While a settlement is a goal, it does not drive the mediation, because a mediation's objective is for the parties to develop a settlement of their choosing. Nothing is adjudicated or dictated; it's the parties' agreement, helped along by a neutral.Even if a settlement is not reached, mediation has two main benefits. The first is the opening of communication lines. Sitting face to face often changes the dynamics of a relationship that phone and email preclude. This can strengthen, maintain and establish personal relationships, which make collaboration easier.The second benefit is a "willingness to mediate". Sometimes, one party will agree to mediate and the other will not. If this happens, the first party will receive a letter stating that, yes, they tried to set up mediation and the other party was unwilling. This says to a judge (and the public) that one party was willing to talk it out, but the other was not.Avoiding costly, lengthy and damaging trademark disputes starts from within the brewery, not the ostensibly finite list of potential names. How a brewery team thinks is just as important as what it thinks. How the team communicates, within itself and with others, is just as important as what it communicates. Facilitation and mediation are more than feel-good, idealistic, notions. They can save a company tens of thousands of dollars and improve its overall image, atmosphere, communications and business.----------------------------------------------------

Craft Brewing Business - A Delicate Balance

There is no doubt that Craft Brewing Business is growing as an industry. For beer lovers, this is a great time to love beer. For brewers, this is a great time to brew beer. For investors, this is a great time to fund breweries.  It seems there is a lot of "win" to go around.Unfortunately, tension grows between all three. Craft beer lovers (or geeks, like myself) embrace the ethos, as it were, of the craft beer industry while enjoying the suds. This ethos is difficult to define, but its salience remains strong among this group.  Brewers now have the option, opportunity and a willing audience to try new recipes or tweak old ones. Creativity remains a strong factor in brewers' motivation. Investors see flocks of people rushing to local breweries' taprooms to fork over money for beer. The demand is super high, so the supply must increase.Here is the dilemma: Precision, time, money, supply, demand, quality, quantity and profit do not play well together as separate factors. They are not parts of the same pie; they are the pie. A baker does not dump flour, sugar, water, eggs and butter into a pan and place that pan in an oven and expect a cake to appear. Ingredients must be blended together correctly to achieve success.Same with craft beer. There must be a careful blend of brewing, investment and patronage to produce and sustain a healthy industry. This means that each aspect ought to understand the others, communicate openly and regularly, and give and receive feedback with civility and encouragement.  Of course, this is not as easy as baking a cake...or a pie...but to be sustainable, difficult tasks need successful undertaking to lead to optimal completion.This blending is not easy. People are unique and have unique life experiences that may affect this blending process, which involves disagreement, dispute, communication, perceptions and learning. We do not look forward to such aspects of this blending.We all felt anxiety with that first phone call to a potential date, or before meeting that date's parents. A salesperson's first cold call ripples with anxiety. So, too, does public speaking for most people. Why? After all we are just talking to fellow humans. Yet, humans are a funny lot, which makes the above communication and interaction fragile, complicated and tense.This is a delicate balance of brewer, investor and consumer must be maintained, or at least pursued, to keep a craft brewery a profitable, creative and enjoyable business. Tipping the scale one way will see the other aspects reeling off the other end. A brewery without investment certainly faces tough times.  An investor without product most likely faces taking a loss. A beer geek without beer just might dry up and blow away. To be sure, this brewing business is chock full of relationships that must be maintained. In this respect, people (and their interconnections) are a core ingredient in brewing.There is no shame in asking for assistance with important and complex issues. The shame is not asking.

Branding and Trademark Disputes: 7 Things to Keep in Mind

Of the challenges that craft breweries face, the dark cloud of trademark infringement is one of the ugliest for two reasons: a trademark dispute can cost time, money, energy and perhaps the business; and it is reminiscent of corporate industry, which upsets the camaraderie or community aspect of craft brewing.  Yet this cloud persists and can hover over any brewery. If it comes your way, here are some things to keep in mind:

  1. While your business is a large personal investment, challenges against your trademark or brand (or accusations towards you of such) should not be taken as a personal attack.  Easier said than done, no doubt, but if this dispute turns personal, it can get ugly and lose focus of the original concern
  2. Most trademark infringements, real or perceived, are accidental. With so many breweries in operation today, it is becoming increasingly difficult to find uniqueness in branding, naming and image.  An accused brewery may not intend infringement or harm.  This may sound trivial, but intent draws a line between hostility and honest mistake
  3. We all make mistakes, which are, by definition, accidental.  Most of us feel bad when we mess up and the last thing we need is scolding.  The best thing we can do is to learn from them and not admonish others for their mistakes
  4. Injuries of social media. Nothing can escalate a dispute more quickly, with more damage, over a wider area, than social media. The reward for using social media is minimal while the impact of damage is almost inevitable
  5. Talk it out.  While a cease and desist letter might be required, it is a cold and impersonal communication.  Yet, it is available at any time; if talking does not go anywhere a C/D letter remains an option.  Nothing to lose by talking
  6. Get help to talk it out.  This is where OvalOptions can help.  Sometimes disputes become heated exchanges, communication shuts down, and parties run to the courts, bypassing an important, and often overlooked, step.  Mediation and other alternative dispute resolution (ADR) methods provide effective, cost efficient and sustainable solutions without negating one’s right to seek legal avenues.  ADR also helps maintain the communal nature of craft brewing
  7. In some cases, litigation may be appropriate.  While this can be a long, drawn-out and expensive option with no guarantee of positive results, it might be necessary.  This is not for OvalOptions to decide or advise.

 

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.

Pub Dialogues session 1.4

Congress and You Our 5th session of the Pub Dialogues will be held at Pints Pub and Freehouse July 16th (Monday) from 5:30 - 8pm.  We will be upstairs at reserved seating.The topic for this session is Congress; how are they doing?  How do you relate to Congress, and vice versa?  Is Congress doing enough? Are you doing enough?  This is a good opportunity to rethink our connection with our representatives, with each other, and perhaps with ourselves.   Let the ideas flow!

Behind the Dialogues: Part 4

The GoalThe Pub Dialogues series is our vehicle to highlight that open, honest and civil conversations are possible during difficult circumstances.  We hope people will see how disagreeing with someone does not prohibit discussion, conversation and dialogue.   Honest Dialogue is not easy; it takes time, effort and even some pain. However, the benefits are fantastic for those involved and, indirectly, the world at large.The Pub Dialogues aim to:

  • (Re-) Introduce interpersonal communication skills
  • Help people address contentious topics and understand differing view-points
  • Showcase how people with opposing view-points can engage in constructive conversation without reverting to debate and animosity
  • Bring awareness to the importance of open discussion and its salience with social, political and cultural issues
  • Entice people to have more conversations face-to-face in a civil and open manner (with local pubs and businesses in mind for the setting)
  • Offer an opportunity for people to learn from each other

We want to change the world.  Delusions of grandeur to be sure. Still, we follow a common platitude, ‘if you want to change the world, start with yourself’.  The practitioners at OvalOptions have taken this rather difficult first step.  While we are far from perfect, we turned the focus of conflict resolution skills on ourselves first to view firsthand the changes, understanding and personal development they afford.  Our dedication to these skills is strong, and our passion to avail them to others is resilient.  The Pub Dialogues series is one way we can share our skills with others, for free, and open to all.Part 1Part 2Part 3