Episode 64
From Farm to Pint w/ Riggs Beer Co - Part 2
The Riggs Brothers are back to discuss the unique aspects of Riggs Beer Company, including their use of locally-grown grains from their family farm, financial strategies, and their focus on sustainability with solar energy. They highlight the benefits of their location near a major university (University of Illinois) and the importance of keeping their farm and brewery operations financially separate.
Visit the Riggs Beer Company in Urbana, Illinois! https://www.riggsbeer.com/
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TIMELINE
00:00 Financial Viability of Brewing vs. Farming
00:54 Convincing the Older Generation to Grow Beer...
05:47 Sustainability Efforts and Carbon Neutrality on the Farm
10:26 Location and Community Impact
14:39 Challenges and Unique Position in the Market
17:49 Come on out to Riggs Beer Company!
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CREDITS
Hosts:
Joel Hermansan
Music by Sarah Lynn Huss
Recorded & Produced by David Kalsow
Brought to you by McFleshman's Brewing Co
Mentioned in this episode:
Gary's Everything Everywhere Daily - 5 Year Anniversary
Come and join the party to celebrate Gary's podcast turning 5. RSVP here -> https://www.facebook.com/share/1HvAwzVVZ4/
Transcript
Hello everyone and welcome back to another episode of Respecting the Beer.
Speaker:We're continuing our conversation with the Riggs Brothers of Riggs Beer Company.
Speaker:They grow their own grains to brew their own beer.
Speaker:It's pretty cool.
Speaker:Back to you, Gary.
Speaker:Without getting into numbers, has this been financially a good move on your part as opposed to just straight farming?
Speaker:Hell yes.
Speaker:Hell yes.
Speaker:Yeah, so I, so, the brewery and the farm are, are separate entities.
Speaker:So technically, you know, the farm is still owned mostly by the older generation, you know, my mom and dad and, uh, his sister.
Speaker:so the brewery.
Speaker:pays extra for locally grown locally sourced, uh, Riggs Family Farm Barley.
Speaker:the question that you asked earlier about, you know, did people think you were crazy, uh, growing these other things around here?
Speaker:yes, that included our dad.
Speaker:And, and so part of that process of convincing him that to let us, you know, start to put our own mark on the farm and, and, and do some of these crazy things was, Hey, you know, this is gonna make sense for the farm.
Speaker:This is not something where we're going to transfer, you know, money from the farm to the brewery or from the brewery to the farm.
Speaker:You know, we're gonna do this so that it works well for both entities.
Speaker:So we pay a premium to the farm, uh, for the grain that's grown there, so that it, it does better than you know, corn, the typical corn and soybean rotation.
Speaker:Yeah, let me piggyback on that.
Speaker:So, you know, early on when we were starting to try to figure out how this was gonna get financed and everything, you know, to be honest, we, we did approach the older generation, the farm ownership of like, Hey, do you guys wanna invest?
Speaker:And, and thankfully they said no.
Speaker:They said, we think this is the brewery's a bad idea and it's probably not gonna work.
Speaker:And, I say thankfully because, well, for one, I'm, I'm really glad that, you know, today we don't have to in invite three people who don't understand the beer industry into kind of our, our corporate, uh, decision making process.
Speaker:That that would've been how could I say?
Speaker:It would've
Speaker:been a, well it would've been challenging and.
Speaker:The, the word's escaping me, but challenging is a good word, a nice polite word to, to use.
Speaker:But also, you know, that sounds like a critique on the older generation, but honestly it's the opposite.
Speaker:That, that way of, of looking at things and being very, very skeptical of risk is why we have a farm that's been in our family for 150 years.
Speaker:We just, we, you know, our farm survived the Great Depression.
Speaker:It's survived a whole bunch of world challenges, a couple world wars.
Speaker:The, the folks that that started our farms didn't speak English.
Speaker:They've seen my, our farm's seen a lot of change and it's still strong.
Speaker:And to this day operates without a penny of debt, uh, cash in the bank.
Speaker:And you know, despite a terrible economic forecast for, for commodity farm in the Midwest, we're gonna be fine.
Speaker:We're able to do that because the previous generation had learned to be very skeptical of risk and change.
Speaker:And and debt and to, and to just work hard squirrel money away and not get crazy.
Speaker:And, and so when I, when I say that I'm glad they thought that the brewery was a bad way too risky idea, I really am glad that they thought that.
Speaker:'cause if, if they would've loved this idea, they would've loved some other idea earlier in the history of the farm, and we probably would've lost it.
Speaker:So, you know, the, we, we were very clear in our desire to keep the farm separate, completely separate financially from the brewery and that the brewery.
Speaker:Serves the farm, not the other way around.
Speaker:You know, if, if, I think I could speak on, on Darren's behalf as well, but I know my feelings are, if, if we lost the brewery to bankruptcy tomorrow I would be pretty sad and a little bit disappointed and, you know, I, but I'd be all right.
Speaker:what I couldn't recover from is if we lost the family farm.
Speaker:So, uh, it's very clear to us that the brewery serves as a vehicle to deliver value to the farm and to provide us with kind of our majority daily income.
Speaker:But that the farm at the end of the day is, is the family asset that, that we're charged with, you know, safekeeping and handing on to the next generation.
Speaker:Have you considered any other related businesses that could possibly use what you produce?
Speaker:Well, we started growing popcorn.
Speaker:Yeah, if you go to a fighting alini basketball or football game and you eat popcorn, then you're eating rigs, popcorn, uh, we do grow some sweet corn.
Speaker:We, we started growing some pumpkins.
Speaker:Uh, we're, we're, we're playing around with some stuff, but we like, we like focus also.
Speaker:I think that if you try to do too many things at once, you, you can lose focus and, you know, with growing grains that we then use in our beer, that's, that's a lot.
Speaker:One, one of the, one of the things that we talk about is like that extra, that extra premium that we pay, uh, back to the farm for growing this stuff that's part of our marketing budget.
Speaker:Right.
Speaker:Because you said right at the very beginning here that we've got a cool story and you know, we, we think that that, you know, cool story helps us get a lot more, you know, uh, share of mind and attention and people who are looking for, you know, cool breweries or beers to try.
Speaker:So, that helps us get people that first beer.
Speaker:And then the other thing that Matt talked about of making sure that, you know, our desire to use our own grain doesn't impact beer quality.
Speaker:Then the beer hopefully is, is making them reorder and get that second beer.
Speaker:So I have one more bullet that we should touch, we should touch on, and it's, it's the sustainable part of your business and how you're trying to become, uh, carbon neutral or off the grid or what have you.
Speaker:Can you guys describe what's going on on that side of, of things?
Speaker:Matt, you wanna take that or should I?
Speaker:Sure.
Speaker:Yeah.
Speaker:So I mean, beer is a resource intensive business.
Speaker:We make things hot and then we make things cold, and then we make things hot and cold.
Speaker:You know, if you take from the grain all the way to the glass, there's, there's, it's
Speaker:incredibly inefficient.
Speaker:and I'm, I'm a physicist, so every time that happens, it's never fully, uh, how do you say it?
Speaker:The returnable, all of the energy in does not equal what comes back to you.
Speaker:Yeah.
Speaker:Yeah.
Speaker:yeah, and, and you know, we lack scale like the big guys do.
Speaker:So, you know, small brewers are always gonna be, uh, a little bit less efficient.
Speaker:With our use of resource to make a barrel of beer, then the big guys will.
Speaker:So it's just always been something that we've tried to focus on.
Speaker:One of the thrills of owning a business, there's a couple thrills and there's a whole bunch of headaches.
Speaker:But hopefully at the end of the day, the couple thrills outweigh the headaches.
Speaker:One of the thrills of running your own business is that you can kind of amplify your values and the way that you view the world to an order like maybe a hundred times more powerful than you could as a private citizen.
Speaker:And so what, you know, we, we like the idea of limiting our impact limiting carbon.
Speaker:Uh, footprint of, of products that we make.
Speaker:And so that's, that's translated into some pretty tangible things we've done at the brewery.
Speaker:we Publish a sustainability report every year where we benchmark our, our, you know, per barrel resource use against past years and against industry averages.
Speaker:And, and we, I think we do a really good job of keeping that number super low on, you know, across the spectrum, whether it's, you know, water use or, or gas use or electricity use.
Speaker:We've designed.
Speaker:Our systems here to have as low of numbers as we could economically afford to do in the, in the beginning.
Speaker:And part of that, part of the reason we were able to institute that is because we came from a background that was other than just home brewing, where really it's extremely inefficient.
Speaker:You know, Darren and I both worked at much, much larger breweries, so we, we were able to kind of understand, and, and also from the, from the school side, you know, went, went through some formal training to understand what types of systems and tools are at your disposal as a brewer to limit your resource use.
Speaker:And because we don't have an investor, you know, it's, it's us and our wives, we were able to say, Hey, this.
Speaker:This type of process that will limit our use, will pay back in time.
Speaker:It absolutely will.
Speaker:And the payback is not very long.
Speaker:It's just a little bit more upfront cost, but that's important to us, so let's do it.
Speaker:That's, like I said, the probably the biggest thrill of running your own company is that you can say, dammit, this is what I wanna do.
Speaker:I think it's important.
Speaker:We don't have to ask some rich moron who doesn't know about physics or brewing, and only wants to make money and extract value from the business.
Speaker:We don't have to listen to 'em 'cause they doesn't exist.
Speaker:And that's a, that's a fun thing about running our company.
Speaker:If, if it wasn't that way, I probably wouldn't still work here.
Speaker:It's just too stressful to run your own company if you, if you were under the thumb of someone else.
Speaker:yeah.
Speaker:Hope that wasn't too direct of an answer, but it is, it is fun to be able to just kind of put your mark on things and own it and, and move forward with what you think is right.
Speaker:And so that's culminated in, you know, we're now, we just put on, uh, an addition to our solar array.
Speaker:So we've got the state's largest brewery solar array.
Speaker:I don't, at, at one point there, there was a survey that came out and we were like the 50th largest in the world that people had had counted.
Speaker:And then, uh, we put, uh, some panels up on the roof this past fall, and that should get us to a hundred percent.
Speaker:Electricity offset, uh, over the, over the next year.
Speaker:So, uh, we aren't off grid.
Speaker:I know there are some breweries out there that are all, uh, you know, battery storage and, and really low on the electrical inputs.
Speaker:So , we're under net metering, which basically uses the grid as our battery.
Speaker:So we're putting extra in during the day and, you know, running that meter backwards and then taking it back out at night when the sun goes down.
Speaker:But over the course of the year, we should, we should be, you know, electrically offset for, uh, our entire production and our tap room and, and everything we do up here.
Speaker:One of the things I wanted to ask you guys, someone's listening to this and they get the impression that you're some farm out in the middle of nowhere.
Speaker:You're actually on the edge of an urban area, and not just an urban area, but an urban area that has one of the largest universities in the United States.
Speaker:University of Illinois, Champaign Urbana has 60,000 enrolled students or something like that.
Speaker:So it's, it's a big college town.
Speaker:Yep.
Speaker:How does this a affect your business?
Speaker:And,
Speaker:I mean, I assume it, it, it's probably gotta be quite a bit that if some farm in the middle of nowhere wanted to do what you're doing, they would have very different results.
Speaker:Well, you know, we're still, we're still surrounded by fields.
Speaker:We are kind of on the edge of town.
Speaker:There's a, uh, combine dealer across the street from us.
Speaker:And we're far enough from campus that blessing or curse, probably blessing.
Speaker:We don't see a lot of undergrad traffic.
Speaker:So I think we sell a lot of beers to undergrads.
Speaker:Uh, but it's all from at, at the campus bars.
Speaker:And, and that helps us kind of maintain a little bit more of a family friendly demeanor out here on the edge of town.
Speaker:You know, we've got the beer garden, we got a little play set for the kids.
Speaker:So we see a lot more families.
Speaker:So I think, you know, grad students are are pretty, uh, common to see out here, uh, as well as faculty.
Speaker:So, you know, folks that, uh, uh, live in town you know, got a pretty good job with university.
Speaker:A little bit extra, you know, spending money to, uh, to come out here and, uh, enjoy our beer.
Speaker:Prob probably helps us out quite a bit in addition to the, you know, the research effort that's gone into the grain that we grow.
Speaker:And, and from what you mentioned, it sounds like you got a pretty good relationship with the, uh, the local university in terms of finding the right varietals to grow and things like that.
Speaker:Yeah, it's a little complicated.
Speaker:I would say that yeah, Darren, Darren knows where I'm going with this, with the university.
Speaker:Absolutely.
Speaker:We, we recent, we recently got kind of passed over to, uh, not do the official like name image likeness beer branding deal for the university's athletic teams.
Speaker:And we were, we were disappointed by that.
Speaker:But those are different people.
Speaker:Those are people that don't have anything to do with the land grant University.
Speaker:Like their core purpose that has to do with, athletics
Speaker:and, and fundraising.
Speaker:Yeah.
Speaker:Right.
Speaker:So when I, you know, the part of the university that, that, you know, does research and does agriculture, absolutely.
Speaker:We have a very close professional relationship and friendship with, I wish that translated across all aspects of the university, but it, it tends, it turns out that dollar bills, are way more important to people that are, you know, building stadiums and I. Running those programs then, you know, the fact that you're helping, uh, further, uh, plant breeding efforts.
Speaker:But I, I guess I'm not surprised by it.
Speaker:A little bit disappointed, but not surprised.
Speaker:It, it kind of makes sense, but I think in the, in the long term, you know, we're in the right spot and eventually it'll probably settle out and, and be mutually beneficial.
Speaker:But for now, uh, yeah, it's, it's, it's, it's somewhat complicated.
Speaker:But what's not complicated is the fact that yes, the university is absolutely the economic engine of this, of this region.
Speaker:And, it brings in people that have traveled around the world and tried beer styles.
Speaker:Hey, I lived in Germany.
Speaker:Hey, I lived here.
Speaker:You know, if you go 50 miles away from, from Champaign Urbana in Illinois you're not gonna have access to that type of clientele that, that is willing to pay an extra dollar for a beer.
Speaker:That has a really cool story or tastes a little bit different from another region of the world.
Speaker:so for that, we definitely lucked out that our farm was you know, our ancestors decided to, uh, settle the farm just down the road from what was back then, kind of a unknown university that, that then developed into, yeah, this Land Grant, big 10 University that is, that's, that's done really well by our brewery for sure, that it's, it's been a good decision to, to, to locate the brewery here.
Speaker:Are there any other brewers in the country that do what you do that you know of?
Speaker:I, I would ask you that.
Speaker:I don't know.
Speaker:There's no register.
Speaker:I, I think the reason why there's not a lot of data on this is because those of us that are growing our own fermentable are so freaking busy that we don't have time to like, go to conferences and have marketing people work on telling the story too.
Speaker:Well, we're terrible about telling our story because like, literally we're working as hard as we can to do it.
Speaker:And I think that's probably the case.
Speaker:So I have no idea.
Speaker:Gary Can Gary, can I relate to that?
Speaker:He, he's always telling me that we are the worst marketing team that he's ever met that's owned a company.
Speaker:We you got competition buddy.
Speaker:you can look, uh, you can go on the craft Mulcher Guild website and they've got a program craft malt certified.
Speaker:breweries and distilleries around the country.
Speaker:I know we're the only one that's in Illinois that's craft malt certified.
Speaker:And that I, I forget the number on that is, is not that high.
Speaker:It's 10, 10%,
Speaker:Of overall grain use or something.
Speaker:Yeah.
Speaker:Yeah.
Speaker:So, but even at that level, we're the only one in Illinois.
Speaker:And you know, there's, there's a,
Speaker:We're over, we're over 200 tons of our own grain and our beer.
Speaker:So this is, you know what's, I don't know what the, uh, the distribution of the podcast is, but I just threw that gauntlet down.
Speaker:Who's got more than 200 tons of their own grain in their beer
Speaker:in the last nine years?
Speaker:I would, I would imagine maybe there's two or three others, and I would love someday for us to meet up somewhere, have some beers together and complain about how hard it is.
Speaker:but, but like, yeah, as of right now, I don't even know who they are.
Speaker:Well, you guys are in a sweet spot.
Speaker:I think a lot of farms are not in an area where they could have a brewery with a clientele, and most breweries are in urban areas where they can't have a farm.
Speaker:And so you guys are kind of, you know, right in the goldilock zone where something like this I think could exist.
Speaker:So there probably aren't many, if, if any, in the country.
Speaker:it does not, it's not lost on me how lucky we are.
Speaker:You know that Darren and I were born into this, this really cool heritage of, of doing really fun, rewarding work of growing grain, but then also, yeah, everything else lined up so that we could do this.
Speaker:I, I tell people all the time, I got the best job in the world.
Speaker:I'm the luckiest guy in the world.
Speaker:Love it.
Speaker:So, I have never met you until this moment, Matt.
Speaker:I know Darren and I can see that I would equally love and hate you because you seem to be that guy that everyone's gonna love ev at every party in every setting because you're so humble about what you've been doing.
Speaker:And I, I got that from Darren as much as I knew him too.
Speaker:Oh, oh, Matt's got some hot takes.
Speaker:another, get another
Speaker:American logger in
Speaker:Let, lemme get another pint real
Speaker:quick.
Speaker:And, uh,
Speaker:our Patreon, uh,
Speaker:exactly.
Speaker:Subscriber only
Speaker:Yeah.
Speaker:I got my only fans where I do, where I do hot takes.
Speaker:But
Speaker:no, I mean,
Speaker:Yeah.
Speaker:That's not gonna make a lot of money.
Speaker:We've had people travel five hours to come to this brewery.
Speaker:So there are people out there that are real beer enthusiasts that listen.
Speaker:So if somebody wants to come and experience what you guys, the unique product that you guys have to offer, uh, how do they go about doing it?
Speaker:than drive to Urbana, I mean, where can people find you Online?
Speaker:Okay, well, you know rigs beer.com, so you can look us up there, see our backstory, see a picture of me, you know, when I was, uh, six years old at a tractor show.
Speaker:It's got our list of beers there as well.
Speaker:Uh, we're distributed only in the state of Illinois, not quite the full state.
Speaker:So we're, we're not in like the downtown Chicago area.
Speaker:We're in some, some of the west and south suburbs there, but most of the rest of Illinois we geographically cover.
Speaker:So.
Speaker:I, I don't know.
Speaker:We're on Facebook, we're on Instagram, all that.
Speaker:All that good stuff.
Speaker:Yeah, I would tell, I
Speaker:would, I would tell people like, it's, it's probably worth coming out to the brewery.
Speaker:say, I'm, I'm gonna bring the team down.
Speaker:It, it's gonna happen as soon as we can break.
Speaker:You know how it is running a business, but when we break free,
Speaker:Yeah.
Speaker:Yeah.
Speaker:we, we, we lucked out with a lot of stuff.
Speaker:And one of the things our big, one of our biggest lucky breaks was that our first offer on a, a brewery building was declined.
Speaker:Uh, we offered almost twice as much money for a building that would've, in hindsight, been terrible.
Speaker:And then, and then, you know, our second option was this place that we really didn't want and it's turned out to be perfect.
Speaker:Uh, and it was way cheaper.
Speaker:So, uh, yeah, again, just like luck is your friend and lean into that.
Speaker:But we're out here on the edge of town.
Speaker:We sit on 22 acres.
Speaker:We farm 15 of those acres.
Speaker:So, you know, we got a big parking lot, got a production brewery, got my house.
Speaker:but then, you know, we, every year we grow wheat here for our wheat beer at the brewery.
Speaker:So you can
Speaker:sit in
Speaker:you sure you don't live in Field of Dreams?
Speaker:Feels like you're describing.
Speaker:Yeah.
Speaker:I kind of feel like Dyersville Iowa baby.
Speaker:It's
Speaker:in urban Illinois.
Speaker:It's even better.
Speaker:Like it's, 'cause there's beer.
Speaker:You know,
Speaker:the guy out there at that place, he was just talking to ghosts in a cornfield and playing baseball,
Speaker:Bunch of old Germans walk out of the field named Schitz Paps Bush,
Speaker:yeah.
Speaker:No, it's,
Speaker:in that group?
Speaker:uh, I don't know.
Speaker:Yeah, there's, there's, there's a reference there somewhere.
Speaker:Uh, but it is, it's a cool vibe.
Speaker:Like, I don't know how many other beer gardens we, so we do, we, we kind of took the, you know, I, I spent several years in southern Germany and working in the beer industry there, and, uh, fell in love with beer gardens.
Speaker:I don't know how you can't, and we just kind of were like, okay, if we're gonna get this shitty place that we didn't really want, at least it's got beer garden potential.
Speaker:And yeah.
Speaker:Here nine years later, we're like, holy shit.
Speaker:Beer garden potential is what has made our company.
Speaker:We, we would've probably already been outta business if we didn't have beer garden potential.
Speaker:So, yeah.
Speaker:And I mean, in the summers we'll have a couple hundred people in the beer garden on a, you, you can imagine a property of 22 acres, a big wheat field, you know, it's turning golden and starting to wave in the breeze.
Speaker:And, you know, the fact that that wheat is, is gonna be next year's wheat beer.
Speaker:It.
Speaker:At least for me, it gets a little romantic out here.
Speaker:I think some other beer drinkers appreciate that too.
Speaker:Some folks just like, they can bring their dog and you know, their kids and there's a little playground and, but yeah, we've leaned into the, the German beer garden piece.
Speaker:So, you know, we do have one of the more open, uh, larger beer gardens, probably, an American brewing.
Speaker:So that's worth a visit.
Speaker:The, the brewery's very highly visible.
Speaker:You can, you can see the, the brew house from the men's room.
Speaker:We've got a one way mirror, so.
Speaker:You know, that turns out to be pretty popular.
Speaker:People are always asking like, oh, is that one way?
Speaker:I'm like, dude, nobody wants to see pee.
Speaker:Like, so of course that's one way it's, but yeah, it's, it's a cool facility.
Speaker:Come out and see it and, and, and meet the folks here.
Speaker:We've got a really nice clientele.
Speaker:Uh, distribution's hard, right?
Speaker:Tell 'em that story via tap handle or a can of beer on a shelf and there's 70,000 other SKUs.
Speaker:Uh, it's, it's borderline impossible to stand out.
Speaker:Even if you do have a legit authentic point of differentiation, good luck telling that more than 50 miles away from your brewery.
Speaker:So yeah, you almost have to come.
Speaker:Nowadays, you have almost go to the place where the product's made.
Speaker:'cause there's just so much chatter, there's so much contract brewed beer, there's so much.
Speaker:Incentives to those salespeople.
Speaker:It's a whole game.
Speaker:Yeah.
Speaker:I mean, we just had a brewery move into the state, a very old, well-known brewery from somewhere in the eastern half of the United States that like to talk about how old they are.
Speaker:And none of the beer they, they send into our market is actually brewed by them.
Speaker:So,
Speaker:but so now we're up against, you know, this brewery that's selling $140 half barrels of contract brewed beer that has a romantic story.
Speaker:And it's like, well, yeah, but that's not actually who's making the beer.
Speaker:So I always tell folks, come to the brewery, you know, get it
Speaker:from the source.
Speaker:It's, it's the most authentic and real there.
Speaker:'Cause yeah, it's hard to cut through the clutter in today's market.
Speaker:All right.
Speaker:You got any other questions?
Speaker:No, just, uh, the, the words Tite comes to mind and, uh, zeitgeist and you guys seems to have, you seem to have captured the spirit of, of, of everything about a beer garden and beer and community out there.
Speaker:We're gonna be out there, we're gonna find a day, I promise.
Speaker:I have a 6-year-old, and the brewery's now seven.
Speaker:So you can imagine I have these two kids in my life.
Speaker:One of them, one of them will grow up someday.
Speaker:The other one who knows, it's about a five hour drive.
Speaker:Yeah, we can do this.
Speaker:You do a straight shot?
Speaker:Yeah.
Speaker:So we're down.
Speaker:It's doable.
Speaker:Yeah, let me know.
Speaker:It was good to see the, the d that represents your image on the screen here, uh,
Speaker:I got, I got the webcam turned off for your benefit.
Speaker:ah, shucks.
Speaker:You must not be wearing pants and that Never, that never, uh, you never hesitated in the past back in brew school, but that's, that's back in brew school, I guess.
Speaker:Oh no.
Speaker:These guys are straight
Speaker:I was only on special occasions.
Speaker:well that will conclude this episode of Respecting the Beer.
Speaker:The producer of Respecting the Beer is David Kalsow.
Speaker:Without David, this show would not exist.
Speaker:Make sure to subscribe to the show in your favorite podcast player so you'll never miss an episode.
Speaker:And feel free to join the Facebook group to get updates between episodes and to join the show over on Patreon where you can listen to the bits that didn't make the show.
Speaker:Links to both of these are in the show notes, and until next time, please remember to respect the beer.
