Schell's to the rescue, again

All James Page beer to be made, distributed in

New Ulm

By FRITZ BUSCH

Journal Staff Writer

NEW ULM -- For the second time in less than a year, August Schell Brewing Co. is positioning itself as the savior of struggling breweries.

In an effort to cut costs and restore profitability, the James Page Brewing Co. closed its Minneapolis brewery and moved production to Schell's.

Production and distribution will be done at Schell's under contract. Since Schell's has been producing James Page beer here for about a year, the only thing the change will do is move keg beer production to New Ulm, according to Schell's president and head brew master Ted Marti.

Production trouble and financial problems at Minnesota Brewing in St. Paul hurt James Page, according to president David Anderson.

Minnesota Brewing produced bottled and canned James Page beer while the 16-year-old northeast Minneapolis microbrewery produced draft beer in kegs.

Packaged beer production of James Page beer moved to Schell's last year when Minnesota Brewing closed and August Schell bought the Grain Belt Premium label. Following a gala party in Minneapolis that included New Ulm's Bockfest Boys, kegs of Grain Belt Premium beer, huge blocks of cheese, pickled herring and pretzels, the beer moved to its new home in New Ulm in October.

Grain Belt Premium is now Schell's biggest seller, according to Marti.

Equipment breakdowns at Minnesota Brewing led to supply problems and financial collapse at James Page.

Two years ago, James Page produced 10,000 barrels of beer. Sales fell to 1,993 barrels the first half of 2002, less than half the amount it did over the same period the year before. James Page may produce 7,000 barrels for 2003, Anderson said.

A barrel -- used to measure production for taxes -- equals 13.75 cases of 24 12-ounce cans or bottles. James Page had just a tenth of a percent of the Minnesota market. Brewers sold more than 1.9 million barrels of beer were in Minnesota from January through June of 2002.

An investment banker and community developer, Anderson created James Page in 1986 with the intention of selling home brewing kits. With other investors, he bought Minnesota Brewing in 1996. James Page sold shares to 100 Twin Cities investors in 1999.

Anderson said moving production to New Ulm made sense since it meant the difference between making profits and not making profits due to brewery costs. Three remaining James Page employees will work in new offices in Minneapolis.

The firm makes and sells Dorothy's Isle of Pines root beer for the Dorothy Molter Foundation of Ely. The root beer is produced and bottled at Gluek Brewing in Cold Spring.

James Page beers have won several honors. Iron Range Amber Lager won the Gold Medal for brewing excellence in the Vienna Lager category. Burly Brown Ale won the Bronze Medal in the American Brown Ale category at the 1999 Great American Beer Festival in 1999 in Denver. Boundary Waters Golden Lager won the Gold Medal in its first competitive entry in 1997. More than 480 craft breweries participated in the event. James Page was the only brewery to win more than one medal in competition.

For more information visit www.pagebrewing.com and www.schellsbrewery.com

Information from the Associated Press was used in this story.