With Kettlehouse Pulling Out, Who Takes Over?

As we’ve covered in previous posts, Kettlehouse Brewing Co. announced this month they’re pulling out of the Kalispell, Helena and Great Falls markets.  If Kettlehouse ramps up production to keep up with demand, they’ll pass the 10,000 bbl per year mark and could no longer sell beer in their two Missoula tap rooms.  Thus, unless and until the 10,000 bbl limit is raised, if Kettlehouse wants to maintain enough production to keep it’s Missoula customers happy, it has to pull out of other markets.

Go nearly anywhere in Kalispell, Helena and Great Falls with more than a couple of taps and you’re bound to find Kettlehouse’s Cold Smoke Scotch Ale.  It is popular and a big seller.  Even bars with primarily American macros often reserve one tap for Cold Smoke. In bars with a broader selection, there’s often two Kettlehouse taps, one for Cold Smoke and a second for Double Haul IPA.

Getting tap space in bars isn’t easy. Same with shelf space in grocery and convenience stores.  There’s limited taps and shelf space and the resulting turf battles include all manner of unsavory accusations.  Just because a new brewery opens up doesn’t mean your local favorite bar can add a tap to accommodate it. Putting something new on tap or on the shelf usually means taking space away from someone else.

My point?  Kettlehouse’s decision to pull out of Kalispell, Helena and Great Falls means space is about to open up for someone else. That raises two questions. Who will that be? And, can Kettlehouse get that space back once (if) it is able to increase production?

One likely replacement? Ninkasi. Having just blanket the state with marketing and apparent agreements with distributors for pre-planned tap and shelf space, Ninkasi looks to have the means to replace Kettlehouse with speed and efficiency.  I was up in Whitefish this past weekend and stopped in at the Great Northern Bar, a usually stop on my trips up to that area.  Great Northern has 20+ taps, most of which don’t rotate except for a couple of seasonals from Deschutes and a couple others.  They have long had two Kettlehouse taps.  There, at the end of the bar, hanging from the ceiling was a big banner announcing a Ninkasi kick off party for March 28-29.  Coincidence?  No way.

My broad, though informal, survey of craft beer fans has universally revealed a singular opinion of Ninkasi:  Meh.  The beer is fine, but nothing particularly new, notable, or different from what is already available in Montana.  And for my part, they’ve been less than forthcoming with information in response to requests. Did they have advance knowledge of Kettlehouse’s decision? I have no idea, but I do know their plan to launch in Montana in May was quickly moved up to March and followed on the heels of Kettlehouse’s announcement. 

What do you think?  Who will benefit the most from Kettlehouse’s decision?  Can Kettlehouse get its tap and shelf space back if the 10,000 bbl limit gets raised?