When people talk about sustainability nowadays, usually what comes to mind are reusable shopping bags and organic produce. However, at its core, the concept of sustainability really embodies something larger — it’s the ability to successfully last without waning in efficiency. Just as grain farmers strive for their fields to continue to reliably produce great crops, business owners strive for sustainable profits and growth.
For someone like Dan Hershberg, co-founder and CEO of Workhorse Brewing Company, the idea of seeking out sustainable business strategies is quite familiar. When Dan set out to start Workhorse, a lot of research and development went into it. “I spent the better part of two years visiting breweries across the country (all in the name of R&D, mind you), educating myself on the landscape and developing a strategy,” he explained.
All of this would never have happened had it not been for one pivotal trip to Cincinnati, Ohio. But first, let’s rewind a little to Dan’s cousin’s bachelor party in Austin, Texas, in 2015. “I had an opportunity to reconnect with a friend of mine from our days at Cornell University,” Dan recalled. That friend was Bob Bonder, co-founder of Rhinegeist Brewery in Cincinnati. “As an entrepreneur, I was fascinated by his business, but had no intention of opening a brewery. That all changed upon spending four days at Rhinegeist, which was both eye-opening and inspiring.”
That spark is what lead to Workhorse Brewing Company, now headquartered in King of Prussia. Sometimes a sustainable business strategy means keeping things simple. Dan and his team have labored to keep this in mind as a core tenant.
“I encountered many fantastic breweries (during R&D), but noticed an unspoken mandate to consistently innovate beer styles, flavors, artwork, etc. This unyielding pressure to brew ‘new’ beer and create wholly unique experiences around those beers felt unsustainable,” he added. “Additionally, understanding that the core ethos of the greater Philadelphia area is rooted in a blue-collar sensibility, we felt compelled to differentiate not by seeking to chase everything new, but by focusing on classic, traditional beers brewed to style. No frills, no gimmicks. ‘Beer Made Right’ was a logical distillation of that concept. In order to achieve this mission, Workhorse is committed to not only using top-of-the-line equipment (30bbl Rolec brewhouse, GEA Centrifuge, etc.) and rigorous QA/QC, but also building our brand around this accessible, approachable style of beer that fits our model so well.”
“Beer Made Right” is Workhorse’s slogan, and a great illustration of both its process and its branding. The two-year preparation that went into opening Workhorse further echoes the company’s commitment to finding brewing success through earnest effort.
“Every decision that we made vis-a-vis operational strategy was determined during our two years of R&D, speaking to other breweries about what worked and what didn’t,” Dan said. “The common refrain was that while establishing a distribution footprint early was important, doing so at the expense of developing personal relationships with each and every retail partner was not in our best interest.”
This trend is what spurred Workhorse to self-distribute from the very beginning. “Even though we add a great deal of logistical complexity to our operation by scheduling our own deliveries (route optimization, timing, etc.), we believe that it’s worth the effort in order to provide value add for our partners and give them an opportunity to engage on a more direct level with the Workhorse brand and the people behind it,” Dan continued. “As we’ve begun to scale — we’re currently in about 150 bars, restaurants, bottle shops and package stores after the first four months of sales — we’ve felt that the decision has been reinforced by the data we’re able to glean during our sales calls. At some point, self-distribution will no longer be a viable option, but we don’t anticipate that happening until we’ve sold tens of thousands of barrels.”
So what recommendations does Dan have for individuals considering starting a brewery? “My advice to founders would be to go in with eyes wide open and a full understanding of what you do well — as well as what you don’t — so that you can hire appropriately and partner with people who can help you achieve your goals.”
If you stop by Workhorse Brewing Company, you might just see Dan. “My office is usually a seat at our bar in the Taproom, where I not only get robust Wi-Fi, but also the pleasure of seeing people come in and enjoy our space, our products and our service.”
The Brewers of Pennsylvania is a nonprofit trade association that brings together leaders of Pennsylvania-based breweries in order to promote and protect the brewing industry in the state. Established in 2011, the Brewers of Pennsylvania serves the consuming public of Pennsylvania by encouraging brand diversity in the market. We believe in the nobility of brewing and hold dear the great traditions and history of Pennsylvania brewing.
Photos: Rory Creative
