Tag Archives: Cleveland

The De-Platforming of Platform: A Cautionary Tale

Between 2011 and 2017, in their attempts to corner a share of the burgeoning craft beer market, AB InBev purchased ten American craft breweries. With each acquisition, craft beer drinkers and supporters of locally owned breweries, such as myself, felt a sense of dismay and disappointment. In 2019, AB InBev purchased yet another craft brewery. For me this one hit a little closer to home. Platform Brewing Company was located in my state, Ohio. Platform’s home city of Cleveland is only two hours west of where I live. To the owners of Platform, the acquisition was greeted as a harbinger of so many good things for the brand. Platform would have access to the vast resources of AB InBev, thus allowing them to build their brand, while retaining autonomy in day-to-day decision making – the best of both worlds in other words. Sadly, less than four years after acquiring Platform. AB InBev did the unthinkable – they announced the closure of their Cleveland brewery. To me this was a tremendously sad announcement, not only because of the inevitable job losses, but also because Platform had delivered so much to the Cleveland craft beer scene.

Platform Brewing Company opened its doors on July 2, 2014. The new brewery was located in Cleveland’s vibrant Ohio City neighborhood. As with many other craft breweries across the country it engaged in adaptive reuse, with the brewery moving into an abandoned space that started life in 1915 as a Czechoslovakian social hall, complete with bar and bowling alley.  In an nod to the building’s history, Platform’s owners Paul Benner, Justin Carson, Shaun Yasaki and Greg Benner reclaimed as much of the building’s original floor as they could and used it for bar tops, flooring and signage. They placed a bowling machine close to the taproom’s entrance.

In addition to brewing and selling beer, Platform’s owners had a much more expansive vision for the brewery. Their desire was that it function as a small business incubator for budding home brewers who had a yearning to commercialize their hobby. Four times a year, one lucky individual got the opportunity to work as a brewer’s apprentice at Platform. From designing the recipe, to brewing the beer, and learning about the business side of running a brewery, the brewery aspired to provide a “platform” from which budding commercial brewers could learn.

Platform was also good for the Ohio City neighborhood. Darren Cross, owner of a nearby Cleveland Brew Shop, a home brewing supply store, credited Platform with being “a catalyst for getting the neighborhood going a bit”.

Within a few years of opening Platform was posting impressive growth numbers, and by 2018 was producing 27,000 barrels of beer. In addition to an ever-broadening distribution footprint, Platform opened up taprooms in both Columbus, OH and Cincinnati, OH. Such was Platform’s success, it was soon on the radar of the behemoth that is AB InBev and, in August 2019, the Belgian-based multinational corporation announced the acquisition of Ohio brewery. This was good news (right?), At least it was to one of Platform’s owners Paul Brenner. Commenting upon the acquisition, Benner had this to say:

“In speaking with the other craft brewery founders in Brewers Collective [A-B’s craft brewery arm], we know partnering with Anheuser-Busch means we will have the resources and the autonomy to bring our vision for Platform Beer Co. to life”

Furthermore, according to Benner:

“Being able to continue leading the day-to-day operations was an important factor in our decision and we have no doubt that this partnership will benefit our loyal staff and passionate customer base.”

In short, AB InBev would bring resources to the brand, while also respecting Platform’s autonomy. Surely this would ensure a bright future for the brewery; sadly, it did not.

In announcing the closure of the Cleveland brewery, AB InBev noted that it would continue to produce three beers that had been part of Platform’s portfolio. Interestingly, these are all IPAs – Haze Jude IPA, Odd Future Imperial IPA, and Canalway IPA. AB InBev did not say where these three beers would be produced. Commenting upon the closure one loyal Platform customer, David Sefcik, stated, “It’s just sad. It’s a sad thing that a big company would close something that means so much to the community”. I have to agree with Mr. Sefcik. It is sad, incredibly sad. A brewery that had once been an integral part of Cleveland’s craft beer scene being gutted by the world’s largest brewer, now reduced to three solitary beers.

So, what happened to Platform (and its beers) under AB InBev’s stewardship. In a highly insightful article published on GoodBeerHunting.com, Kate Bernot provides us with some clues. Among other things, Bernot suggests that AB InBev oversaw a decline in the sale of Platform beers in chain retail outlets such as grocery stores. In 2018, before being acquired by AB InBev, Platform produced 28,000 barrels of beer. In 2021, after the acquisition, the brewery’s production levels had dipped to 22,500 barrels. A major issue, according to Bernot, with respect to AB InBev’s oversight of Platform was “Inconsistent sales priorities and changes within ABI’s craft sales force”. One former post-acquisition Platform employee told Bernot, “Sales priorities changed at Platform pretty frequently and it was hard to get a grip on what our goals were” with the result that “sales team often struggled to maintain focus to build particular brands”.

Bernot uses some interesting language to capture AB InBev’s attitude towards Platform. Phrases such as “minor irritation”, “lost in the shuffle”, “a footnote, and left “by the wayside” indicate, to me at least, an owner who was not fit for purpose and negligent in their duty of care. It wasn’t that AB InBev were incapable of making Platform a success in the marketplace. It was quite simply that they did not seem to care enough to do so. Platform was just another brand in its a huge portfolio of 500+ brands; a brand that was both dispensable and expendable.

Overlooked Neighborhoods

Recently, I came across an interesting article on the website ozy.com. It was titled Overlooked Neighborhoods: Little-known Gems in Well-Known Cities. The premise of the article was pretty straightforward. When we visit a city, we tend to keep to well-trodden paths. These can be restaurants we have read about in guidebooks, museums that are on everyone’s must-visit list, or a green space such as a famous park.

But dare to look beyond the tourist traps and our own comfort zone, and we will see that every city has lesser-known neighborhoods that are worth spending time in. This particular article identifies seven such neighborhoods:

It is is an interesting list, albeit a little U.S.-centric. What I found particularly intriguing about the descriptions of these seven neighborhoods is that beer is mentioned as a key part of the urban fabric in four of them (Abasto, Bridgeport, Brevnov, and Over-the-Rhine). In the cases of Abasto, Bridgeport, and Over-the-Rhine, craft beer bars and breweries, in particular, are mentioned, while in the Břevnov neighborhood of Prague, the monks at the monastery there first brewed beer in the year 993. This makes it the earliest record of beer being brewed in the Czech Republic. In a completely separate piece on Pittsburgh’s overlooked neighborhoods, Kelly Abrogast, shines the spotlight on the city’s Troy Hill neighborhood. According to Abrogast, Troy Hill is Home to “some of the best beer you’ve ever had”. Troy Hill is home to Penn Brewery.

Rhinegeist Brewery in Cincinnati’s Over-the-Rhine neighborhood

The fact that craft beer (whether in the form of craft beer bars or craft breweries) are considered a key contributor to interesting and vibrant neighborhoods does not surprise me in the slightest. In a 2016 piece in The Atlantic, James Fallows identified eleven signs that a city will succeed – one of those signs was the existence of at least one craft brewery. As noted by Fallows, “a town that has craft breweries also has a certain kind of entrepreneur, and a critical mass of mainly young (except for me) customers.” As Fallows correctly notes, craft breweries are a magnet for young people. As market research has demonstrated, it is the Millennial cohort who are driving the growth of the craft beer sector. A craft brewery or craft beer bar in a neighborhood attracts young people, not just from the immediate neighborhood, but from other parts of the city, and even farther afield. Beer tourism is increasingly popular, and craft beer drinkers visiting cities search out those neighborhoods with craft breweries and craft beer bars. A craft brewery opening up in a neighborhood is akin to putting up a welcome sign. It is saying to people, come check us out. This neighborhood is ok; good things are happening. In some cases, such as the Ohio City neighborhood in Cleveland, OH or the Lower Downtown (LoDo) neighborhood in Denver, CO, craft breweries (Great Lakes Brewing Company and Wynkoop Brewing Company respectively) were pioneer investors who kick-started the redevelopment of these respective neighborhoods. In other cases, such as the Pearl District in Portland, OR or the North Davidson (NoDa) neighborhood in Charlotte, NC the craft breweries and craft beer bars have followed other investment into the neighborhood. Whatever the sequencing of investments, many of these neighborhoods have had new life breathed into them.

Great Lakes Brewing Company was the catalyst for the redevelopment of Cleveland’s Ohio City neighborhood

According to Denver Public Library, “back in the 1980s, Lower Downtown Denver was what we called “a little sketchy” – a lot of places were boarded up, and ones that were open were populated by the underground crowd, drifters, punk rockers and late nighters. Today, the bustling restaurant – sports bar – brew pub district looks like the Seattle or Portland we all longed for, with a huge variety of food choices both native and exotic, all kinds of great beer, espresso, chocolate, and other delicacies, and a wide array of clothing and accessory stores, art galleries, and high-end lofts.”

Back in 2016, I spent a few days in Stockholm, Sweden. While there I visited the Nya Carnegie Bryggeret (New Carnegie Brewery). The brewery is in an old lightbulb factory in the Hammarby Sjöstad neighborhood. In the early 1990s, Hammarby Sjöstad was a run-down, polluted industrial and residential neighborhood that was considered unsafe by outsiders. By the time I visited it in 2016, it had underwent a remarkable transformation. As a result of significant investment, it was an attractive neighborhood with apartments, shops, offices and, yes, a brewery.

The Nya Carnegie Bryggeret (New Carnegie Brewery) in Stockholm’s HammarbySjöstad neighborhood is in an old lightbulbg factory

The example of Nya Carnegie Bryggeret shows that craft breweries often thrive in overlooked neighborhoods, but they can also succeed in overlooked buildings. Through the process of adaptive reuse, craft brewery entrepreneurs will take an old abandoned church, fire station, automobile dealership etc. and turn it into a vibrant craft brewery. Craft brewery entrepreneurs are attracted to distressed neighborhoods because real estate is often relatively inexpensive.

Some people living in an overlooked neighborhood, may like it that way. So they may not necessarily welcome a new brewery and other investment and the visitors that they attract. Rising property values may force long-standing residents out of the neighborhood. Along with my colleagues, Jay Gatrell and Matthew Lehnert, I write about this in an upcoming book chapter. The chapter looks at the historical evolution of Cincinnati’s Over-the- Rhine neighborhood. Despite once being dubbed the most dangerous neighborhood in the United States, residents of Over-the-Rhine had for decades been suspicious of outsiders and the change they sought to bring to the neighborhood. This suspicion manifest itself in the Over-the-Rhine Peoples’ Movement who fought against gentrification of their neighborhood. In the end, their cause was a lost one and millions of investment dollars later Over-the-Rhine is very much a changed and more vibrant neighborhood.

Further Reading:

Reid, Neil. Craft breweries, Adaptive reuse, and neighborhood revitalization, Urban Development Issues, Volume 57, Issue 1, pp. 5–14.

Reid, Neil, Jay D. Gatrell, and Matthew Lehnert. Leveraging brewing history: The case of Cincinnati’s Over-the-Rhine Neighborhood”. In Thakur, Rajiv, Ashok K. Dutt, Sudhir K. Thakur, and George Pomeroy (Eds). Urban and Regional Planning and Development: 20th Century Forms and 21st Century Transformations, Springer: Dordrecht (forthcoming).

Reid, Neil and Isabelle Nilsson. From mill district to brewery district: Craft beer and the revitalization of Charlotte’s NoDa neighborhood. Invited chapter for inclusion in Beer Places: The Micro-Geographies of Craft Beer, by Daina Cheyenne Harvey, Ellis Jones, and Nate Chapman (Eds).

Ohio City and Duck Island

For some time now I’ve wanted to visit the Ohio City neighborhood of Cleveland. In my academic research on the role of craft breweries in neighborhood change I had read a lot about Ohio City, particularly the catalytic role of the Great Lakes Brewing Company in that process. But while it is only a two-hour drive from my home I had, Continue reading Ohio City and Duck Island