About this episode
Smog City Brewing co-founder Laurie Porter is a prepper. Even during craft's days of double-digit growth in the middle 2010s, Porter, who calls herself "an incurable optimist," was eyeing a future when that growth wouldn't be there. So Porter and her husband, Jonathan Porter, built Torrence, California-based Smog City with diversified revenue streams – distribution, exports to international markets, four taprooms with over-the-bar sales and an intentional cap on production around 10,000 barrels – that allow the company to shore up its business if things go sideways. "At our level, between the 5,000 and 12,000, 13,000 barrel, a lot of our revenue is built off the taproom, direct-to-consumer, which has a little bit higher profit margin, it helps us float that wholesale," Porter says in the latest edition of the Brewbound Podcast, recorded on location at the California Craft Beer Summit. "So if wholesale is struggling or we're seeing dips and changes in seasons and customer changes, we have a little bit more buffer." Porter admits that Smog City has looked at what life would be like as a 15,000-barrel brewery but has been "apprehensive to break that" ceiling due to the loss of the ability to pivot, flex and manage costs. "When you hit 15,000 barrels, you are playing so deep in the chain world because it's all about volume," she explained. "Chain can be very fickle. It can be really difficult to maintain. A beer buyer changes and boom, you're off the shelf. And that's now, whatever, 450 barrels of beer for that one style of beer that you had committed to that grocery, and it's gone. And you can't just predict it." In the interview, Porter discusses the pressures on LA locations, consumers heading back into taprooms, the impending closure of its Steelcraft Long Beach facility after a decade due to being unable to extend the lease and the launch of a new restaurant concept in December to replace it. Before the interview, Jess, Zoe and Justin cover the latest news, including the Siebel Institute of Technology's planned exit from Chicago and move to Montreal; Athletic Brewing's big 2025 and new products coming in 2026; and a Gen Z take on the rumored Anheuser-Busch InBev acquisition of BeatBox.