Beer brewers, sellers respond to change in state laws on alcohol content

Matt Hemsley works the bar during weekday happy hours at uptown's Charleston Beer Works, where taps touting obscure craft brews proliferate along the wall.

Before May 2007, all those taps had one thing in common: The beers they dispensed contained less than 6 percent alcohol. Then a change in state law last spring opened South Carolina to a wave of stronger, more exotic beers. Curiosity about those new brews — dubbed "high gravity" by the industry — drove a surge of strong sales that continued well into August.

Hemsley figures a third of the beers he draws during happy hour are high gravity, with a strong preference for a locally brewed brand by North Charleston-based COAST Brewery.

"I would say (demand) is probably more during happy hour, because it's a great deal ($2.75, down from $4.75), and a lot of people are coming down for it," he said.

But according to South Carolina brewers, bartenders and distributors, the Charleston Beer Works story looks more like the exception and less like the rule. Hard numbers are scarce or closely guarded, but people in the beer industry here describe a high-gravity market that has leveled off into a respectable niche after an initial burst of popularity.

"The big push came in the first couple of months," said Craig Mole, brand development manager for Southern Spirits of South Carolina, a statewide distributor. "People were very anxious to try something they'd been denied."

The downside of high gravity? Drinking one is kind of a commitment.

"They're fine to sip on, but they're not something you'd sit down and sip on through an entire football game," said Julie Cox, executive director of the S.C. Beer Wholesalers Association.

Like many states, South Carolina for years capped the legal alcohol percentage for beer at 6 percent. That didn't affect the majority of popular American lagers, which range from about 3.8 percent (Old Milwaukee Light) to about 5 percent (Budweiser). But it sometimes excluded popular specialty brews, such as Red Hook's India Pale Ale (6.5 percent).

Opening the state to beers with more alcohol took several years and required the combined efforts of beer lovers, beer retailers and the S.C. Beer Distributors Association.

Once the legislation passed, distributors took different approaches: Those representing major brands typically moved more cautiously, but entrepreneur Jeff LeVine of Rock Hill embraced the new rules by opening Carolina Craft Distributing, a wholesaler devoted to craft, high-gravity and micro-brewery beers. In less than a year, LeVine's company has expanded from a single delivery truck to a statewide network.

The law also paved the way for beer enthusiasts David Merritt and Jaime Tenny to open COAST Brewery on the former Navy base. Since the Mount Pleasant couple began brewing in September, five of their six organic beer varieties have been high gravity.

Today, COAST Brewery runs three fermenters at full capacity, refuses to compromise on quality, provides beer only by the keg and sells everything it makes. Demand so exceeds supply that additional bars and restaurants that ask for COAST beer must go on a waiting list.

For the owners of a small company with a big stake in the high-gravity market — their most popular beer, the HopArt IPA, is more than 7 percent alcohol — Tenny and Merritt don't bother hyping the category. They're beer fans, after all, and the alcohol levels in their products are the result of other qualities, not a goal unto itself.

"It's really cool to have these options in our state now, but let's not forget these session beers, which are harder to make," Tenny said.

COAST's session beer (Kolsch) is a German-styled ale with 4.8 percent alcohol. Flaws can be easier to hide in a high-gravity beer, Merritt said, which is why his recipe for Kolsch even adjusts for differences between local and German waters.

"High gravity doesn't mean better," Tenny said. "It just means it's above the old limit."

Retailers may be taking a more holistic view of their beer selections now, too. Big distributors say they're typically delivering fewer high-gravity brands to grocery stores compared to last June, as retail managers figure out what sells and what doesn't.

"Was it a good law? Yes," said Mole. "Did it tie up a bunch of shelf space for retailers? Yes."

Larry Lipov, president of Charleston's Pearlstine Distributors, believes the beer market will continue to be diverse, with high-gravity and micro-brew beers filling an "occasion-based" niche.

But he added only a few to Pearlstine's portfolio, choosing instead to focus on "good brand recognition and quality."

"Everything happens in cycles," he said.

Reach Dan Conover at 937-5922 or dconover@postandcourier.com.