Distributor deal to send Ozark Beer to Little Rock

Coby Pistole moves a pallet of beer into place at Ozark Beer Co. in Rogers. The beer-maker has expanded its distribution market to central Arkansas.
Coby Pistole moves a pallet of beer into place at Ozark Beer Co. in Rogers. The beer-maker has expanded its distribution market to central Arkansas.

ROGERS -- Ozark Beer Co. is sending its brew down south to thirsty folks in Little Rock and the surrounding area.

After just two years in business, the brewery has inked a deal with Central and Moon Distributors to sell its products in Pulaski County. Ozark Beer's American pale ale, Belgian golden ale and cream stout, in their distinctive cans featuring Arkansas wildlife, are are available in its current area at some restaurants, bars, package stores, groceries and a few convenience stores that feature specialty beers.

This is Ozark Beer's first distribution deal and the first time Central and Moon has carried an Arkansas craft beer. The deal came after about a year-long, getting-to-know-you period, both companies said.

In the end, two things sealed the deal for Ozark Beer, said co-owner Lacie Bray. First, it was Central and Moon's reputation for customer service, and secondly it was the dedication to quality both companies shared.

"That's what drew us to them," Bray said.

Stan Hastings, CEO of Little Rock-based Central and Moon, said the more he learned about Ozark Beer the more impressed he became. The deal between the two companies, he said, is a lot like any relationship where common backgrounds and goals results in a solid connection.

"We just like each other," he said. "We clicked."

Over the summer, Ozark Beer added gear and staff members, increasing its production capacity to 5,000 barrels annually. A barrel holds 31 gallons of beer. The brewery hasn't reached capacity yet and projects that it will be about halfway there -- at about 2,600 barrels -- by sometime in the summer.

As Ozark Beer produces more beer, it will begin to send some of it to central Arkansas and will likely begin to offer more than its canned beers, adding draft beer for bars and growler stations. Hastings said plans for distribution call for slow and targeted expansion into counties in the state that have an interest in craft beers.

Nationally Arkansas ranks 39th for the number of craft breweries per 100,000 adults over 21, according to the Brewers Association. There were 19 craft breweries in Arkansas in 2014 and brewers produced a total of 14,641 barrels of craft beer that year, ranking 48th in the country for total production, according to the trade group.

Sales of all types of beer in the U.S. for 2014 were up 0.5 percent, to 197.1 million barrels, while craft beer production was up 17.6 percent, to 21.8 billion gallons, according to the association.

Currently there are 19 small brewery permits held in Arkansas, along with 12 microbrewery restaurant permits, according to documents provided by Arkansas Alcoholic Beverage Control.

Professor Scott Kerkmans, who teaches brewery operations at the Metropolitan State University of Denver, said distribution deals are key to a fledgling brewery's growth. He said the timing of the deal seemed perfect -- he said it's a good rule of thumb to have a distribution deal in place when a brewery has the ability to produce 5,000 barrels a year.

He said consistency and quality is key when a local brewery begins to send its product far afield. He said that while local craft beer drinkers can be forgiving concerning issues of quality and consistency, others will be less forgiving.

"They have to be ready for prime time," Kerkmans said.

Marty Shutter, the marketing chief at Ozark Beer, said the company's brand is well established and its reputation is solid on its home turf of Benton and Washington counties.

"We're flavor dealers," he said.

Shutter was insistent a beer drinker's experience with Ozark Beer's brews has to be the same at the brewery on tap, from a can, or all the way in Little Rock at a bar or package store.

"It has to be the same here as it is there," Shutter said.

SundayMonday Business on 12/24/2015

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