Northwest Florida Business Climate February/March 2014

February/March 2014

Win by Losing in 2014 Urban-Style Tech Lab Comes to Downtown Logistics: Moving the World Forward Downtown Playground Coming to the Maritime Park

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publisher’ s pen Malcolm Ballinger Publisher

While attracting outside talent to Pensacola is vital to our continued competitive edge, it is important to remember that many talented people and quality products already reside here, and are important to the city's business sustainability. All over the country, people have noticed the value of buy-local economies and investment in regional goods and services. Our city's citizens are no different, and I welcome and applaud all efforts to retain local talent and products.

Take the Center for Innovation and Entrepreneurship (CIE), for example. By giving local innovators and developers a place to rent low-cost office space, the center is integral in the goal of keeping local talent and recent graduates here by incentivizing and subsidizing their business startup concepts. Now, the CIE has gone further by providing a Coworking Lab, a place where individuals can work collaboratively with people from other industries. Based on the idea of individual tenants, as opposed to office tenants, these entrepreneurs and freelancers are provided a desk, internet access and all the benefits of business tenantship for a reduced price. Find out more on page 12.

Local products are just as important as local people, and when the two combine, something truly special happens. Look at the recent craft beer renaissance in our area, a phenomenon that has grown parallel with downtown's resurgence. In the late 80s and early 90s, people first became interested in the concept of quality beer with local ingredients. Now, companies like the Pensacola Bay Brewery, Hopjacks and the Tin Cow are profiting from this affinity for regional quality. The fact that the product is beer doesn't hurt either. Learn more about the business of craft brews on page 23.

With all this local talent and product quality, it makes sense that people elsewhere want what we provide. That's where logistics comes in. Logistics is essentially the business of ensuring products and services are in the right place at the right time, and perhaps nothing is more important to our increasingly global economy than that. You may not realize it, but Pensacola is rich with logistics professionals and academic research, from the Lewis Bear Company, GE, and the Port, to endowed professorships and award-winning classes at the University of West Florida and Pensacola State College. Take a look at our industry snapshot on page 15.

As we continually promote and attract outside investment, I hope we never forget the importance of our own homegrown assets. After all, it is those assets that attract national interest in the first place.

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9. Win by Losing in 2014: Shed Bad Communication Habits for a Much Happier— and More Productive—New Year

12. Urban-Style Tech Lab Comes to Downtown

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15. Logistics: Moving the World Forward 19. Downtown Playground Coming to the Maritime Park

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23. The Next Beer Bubble: Craft Beer in every issue 28. AROUND THE REGION 29. PEOPLE ON THE MOVE 30. BUSINESS SCENE

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February/March 2014

> Inside this issue

February/March 2014 PUBLISHER

MALCOLM BALLINGER malcolm@ballingerpublishing.com BC EDITOR

KELLY ODEN kelly@ballingerpublishing.com ART DIRECTOR

RITA LAYMON rita@ballingerpublishing.com GRAPHIC DESIGNER & ADVERTISING COORDINATOR

GUY STEVENS II guy@ballingerpublishing.com EDITOR

EMILY LULLO emily@ballingerpublishing.com BUSINESS EDITOR

JOSH NEWBY josh@ballingerpublishing.com EDITORIAL INTERNS

HANNAH LEYVA • JEANESSA GANTT LARSEN LIEN CONTRIBUTING WRITERS GEOFFREY TUMLIN SALES & MARKETING

SHARYON MILLER, ACCOUNT EXECUTIVE EXT. 28 sharyon@ballingerpublishing.com BECKY HILDEBRAND, ACCOUNT EXECUTIVE, EXT. 31 becky@ballingerpublishing.com

OWNERS

MALCOLM & GLENYS BALLINGER PUBLISHER

MALCOLM BALLINGER • malcolm@ballingerpublishing.com EXECUTIVE EDITOR

KELLY ODEN •kelly@ballingerpublishing.com ART DIRECTOR

RITA LAYMON • rita@ballingerpublishing.com GRAPHIC DESIGNER & ADVERTISING COORDINATOR

GUY STEVENS II • guy@ballingerpublishing.com

never be bored

EDITOR

EMILY LULLO •emily@ballingerpublishing.com BUSINESS EDITOR

JOSH NEWBY •josh@ballingerpublishing.com SALES & MARKETING SHARYON MILLER, ACCOUNT EXECUTIVE EXT. 28 sharyon@ballingerpublishing.com

BECKY HILDEBRAND, ACCOUNT EXECUTIVE, becky@ballingerpublishing.com

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NW Florida’s Business Climate Magazine and Pensacola Magazine is locally owned and operated. All Rights Reserved. Reproduction or use of the contents herein is prohibited without written permission from the publisher. Comments and opinions expressed in this magazine represent the personal views of the individuals to whom they are attributed and/or the person identified as the author of the article, and they are not necessarily those of the publisher. This magazine accepts no responsibility for these opinions. The publisher reserves the right to edit all manuscripts. All advertising information is the responsibility of the individual advertiser. Appearance in this magazine does not necessarily reflect endorsement of any products or services by Ballinger Publishing. © 2014

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Win by Losing in 2014: Shed Bad Communication Habits for a Much Happier—and More Productive—New Year

By Geoffrey Tumlin

One or two bad communication habits is all it takes to cause a lifetime of trouble. And with today’s quick and easy methods of communication, it’s all too easy for bad habits to work their way in. You overreact to an email—not for the first time—and send off a furious and damaging reply. Your spouse accuses you of not listening (again) and you have to sheepishly admit (again) that she’s right. You offend your “friends” or followers on a social media platform with yet another ill-advised attempt at humor. Or you can’t resist a snarky comeback to a difficult customer’s provocation, even though you immediately regret your words. When bad communication habits take over, the reputation you worked so hard to cultivate takes a beating.

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“Bad communication habits are the punishment that keeps on giving,” says Tumlin, author of the new book Stop Talking, Start Communicating: Counterintuitive Secrets to Success in Business and in Life. “Even if you suffer from only one bad habit, it can recur in dozens of conversations and cause damage each time. But the good news is that by eliminating a single bad habit you can prevent many future problems. In fact, nothing else you can do gives you as much bang for your buck as resolving to eliminate a bad communication habit.

And there’s no better time to add a bad communication habit to your quit list than the new year.”

That’s where Stop Talking, Start Communicating comes in.

Full of counterintuitive yet concrete advice, it draws on Tumlin’s extensive experience as a communication consultant to show readers how to unload bad habits, improve conversations, and use today’s powerful digital devices, not to fragment attention and dilute relationships, but to achieve more of their most important goals and aspirations.

“This is the best time in human history to be a competent communicator,” Tumlin asserts. “It’s true that it can be incredibly difficult to break free of the bad habits associated with the distraction, expediency, self-expression, and excess that characterize so much of our digital-age communication.

Yet if we are willing to cast off some of our bad communication habits, we can optimize opportunities to connect productively and meaningfully with other people.”

Here, Tumlin shares seven of the most common bad communication habits. If any of the habits hit dangerously close to home, resolve to improve or eliminate them in 2014:

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Bad Habit #1: Letting the Neanderthal pick your words.

When we’re agitated, irritated, or frustrated, a battle plays out between our primitive, impulse-driven Neanderthal brain and our more modern, thoughtful, and deliberative brain. And while the Neanderthal parts of our brain are indispensable when we’re in physical danger, our Neanderthal brain is terrible at picking our words. Word selection is better left to our more analytical modern brain, because the Neanderthal prefers to club first and ask questions later.

The problem is that although words can build relationships only slowly, they can cause damage with lightning speed. A blurted retort, a thoughtless tweet, or a hasty remark can— and does—land people in hot water all the time. When the Neanderthal chooses our words, it never ends well.

“A simple but powerful way to improve your communication in 2014 is to stop talking and think for a minute whenever you’re frustrated or upset,” Tumlin asserts.

“You don’t need to take a vow of silence, but you do need to pause long enough to keep your more thoughtful and deliberative brain in charge of selecting the words you’re going to express. Even a few seconds can help you to steer clear of the Neanderthal’s exhortations to club someone, can allow you to get in front of ill-advised words, and can provide you with the space you need to self-correct when you’re angry or upset.”

Bad Habit #2: Using authenticity as an excuse for bad behavior. “‘I was just being myself’ sounds harmless, but it’s often an excuse to indulge in destructive behavior,” points out

Tumlin. “Smart communicators realize that by focusing on what they want to accomplish instead of what they want to say, they keep their conversational goals in their rightful place—above their feelings in terms of priority.

“Authenticity sounds good in theory, but in practice it often torpedoes our goals,” says Tumlin. “I’m not suggesting that you become a fake, just that you don’t cloak momentarily gratifying, but counterproductive, communication in the fabric of ‘being yourself.’ Poor communication—when your words hijack your goals—isn’t a trait; it’s a choice.”

correct. Delay is your default category. Many issues may disappear completely or resolve themselves without your intervention. Finally, avoid issues that reflect highly emotional, incredibly complicated, and other volatile feelings that reside deep inside another person unless they are impairing the accomplishment of critical work.

“A New Year’s resolution well worth keeping is to have fewer conversations, but to try to make each one count,” he adds. “Most of us are guilty of inserting ourselves into far too many unnecessary conversations.”

Bad Habit #3: Multitasking when we should be listening.

The digital revolution facilitated hypercommunication and instant self-expression, but, ironically, made it harder for anyone to listen. There’s just too much communication junk getting in the way. (Just consider the frenetic activity happening on Twitter at any given moment!) Our thoughts are scattered, our minds wander, and ever-present distractions make it difficult for us to focus on the person right in front of us. In 2014, most of us need to make a concerted effort to reinvigorate our listening skills.

“Intentional listening will make you more present in conversations and will decisively improve your communication,” promises Tumlin. “The funny thing is that people are telling us all the time about what they want, what they fear, and what’s important to them, but we’re often too busy thinking about what’s in our inbox or who just texted us to absorb much of what they’re saying. The ‘old school’ behavior of listening will help you become a much better communicator and will enable you to become far more knowledgeable about the people in your life.”

Bad Habit #6: Fighting with difficult people.

Jane talks too much. Jim is incredibly stubborn. Uncle Billy loves to argue. Your client is moody. Whether they’re controlling, critical, or cranky, the behaviors that make someone a difficult person tend to spark frequent confrontations—even though we’re unlikely to influence these people. For example, we wrestle with Jane to get a word in edgewise. We struggle to change Jim’s mind. We fire a barrage of points and counterpoints into Uncle Billy’s arguments. We try to offset our client’s mood swings. It’s time to quit trying, insists Tumlin.

“At the end of a conversation, the difficult person remains the same, but often you are in a weaker position,” Tumlin points out. “But giving up your desire to ‘win’ by imposing your will on the other person can realistically and consistently improve your communication with difficult people. When you find yourself with no choice but to interact with a difficult person, have modest expectations, avoid tangents, and stay focused on your end goal. It’s really all you can do.”

Bad Habit #4: Asking faulty questions.

Questions aren’t always neutral. They make some of your conversations better, but as you’ve probably noticed, many questions make a surprisingly large number of your conversations worse. Even “simple” inquiries can go awry. “Is your mother coming over for dinner again?” or “Did you call Jim in accounting about this?” can cause trouble if the other person thinks there’s a criticism behind the query.

“Some of your relationship problems probably reflect your underdeveloped questioning skills,” says Tumlin. “Faulty questions contribute to many conversational failures and can add anxiety, defensiveness, and ill will to interactions. In general, the more you query simply to indulge your personal cravings to get an answer, to hammer home a point, or to satisfy a narrow personal interest, the more your questions are likely to stifle dialogue. It’s better to focus on what you can learn from or about another person and to ask questions that reflect a broad curiosity about the person or topic you’re discussing.”

Bad Habit #5: Meddling.

Our quick, cheap, and easy digital devices allow us to have far too many unnecessary conversations, engage in way too much unnecessary collaboration, and get our hands (and thumbs) on too many irrelevant issues. That’s why smart communicators, like smart doctors, have a good triage system—its categories are Now, Delay, and Avoid—to focus on the most pressing issues, while delaying or ignoring less important matters.

“Problems in the Now category require an immediate, solution-based conversation,” explains Tumlin. “Don’t automatically assign too many issues to this category—this is the fundamental miscalculation your triage system is trying to

Bad Habit #7: Overreacting.

In 2013, we often used more force than needed to accomplish our objectives. We yelled when a measured response would have worked better, sent a blistering e-mail when a more restrained reply would have sufficed, and issued an ultimatum when a firm but gentle statement of convictions would have done the trick. But excessive force frequently causes a destructive cycle—attack, retaliation, escalated attack, and escalated retaliation, etc. No matter how justified you may feel, the bottom line is that using excessive force isn’t usually a winning strategy.

“Exercising restraint during a contentious interaction is challenging, but try to apply the least amount of interpersonal force and intensity necessary to accomplish your objective,” asserts Tumlin. “In other words, bring a stick to a knife fight in order to prevent a conversation from escalating dangerously. Try to stay serious and focused, don’t add any new emotional material, and keep the conversation as brief as possible. Be the calm, controlled, and stabilizing influence on a conversation that’s become heated so you can minimize the chance of permanent relational damage.”

“In 2014, let’s focus on shedding the bad communication habits that are coming between us and the most important people in our lives, because those bad habits prevent us from having the kinds of productive and meaningful interactions we desire,” concludes Tumlin. “Eliminating just one or two bad communication habits will dramatically improve your communication and strengthen your relationships in the new year.”

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Urban-Style Tech Lab Comes to Downtown

By Josh Newby

Photos courtesy of the Greater Pensacola Chamber

For years, innovative collaborative work environments have fostered entrepreneurship and innovation in cities like Boston, New York and San Francisco. Now, as Pensacola talent continues to emerge as a competitive force to be reckoned with, the Gulf Coast Center for Innovation and Entrepreneurship (CIE) has created the cityâ&#x20AC;&#x2122;s first Coworking Lab. The CIE is a partnership between the Greater Pensacola Chamber and Pensacola State College that provides startups and innovators with reduced-cost office space and professional guidance, all within an environment conducive to spawning rapid growth. The new Coworking Lab puts that idea on a micro level, allowing entrepreneurs and freelancers to work in a dynamic, 1,000-square-foot-lab that will house graphic designers, programmers and anyone else in need of inexpensive office space.

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Reliance on workplace communication technology and the immediate access it provides to information has created a new kind of worker: one that does not conform to traditional, hierarchical data flows and prefers crowd-sourced information and outcomes. These employees often feel uncomfortable adhering to standard workplace boundaries and schedules. As a result, freelancers and entrepreneurs who work outside of company norms have found a home in the coworking concept.

This membership-based workplace solution allows these freethinkers access to their two most important job necessities: community and a singular focus on productivity.

Since 2006, coworking spaces have gone from nonexistent to nearly 2,500 locations across the country. While America leads the world in the number of coworking place, it has fallen behind per capita. Coincidentally, the more coworking labs are active in a particular part of the country, the more effective and profitable they are.

Internet connection or the coffee, community is essential to innovation, and this space provides all of that.”

Overgroup donated office furniture to the space and already has two employees signed on as tenants of the new Coworking Lab. “This space will allow entrepreneurial-minded people the chance to mix and share ideas,” said Overstreet. “Also, we’re glad for the opportunity to give back. We started in Pensacola and are so grateful for it.”

The Coworking Lab is also a workplace home for Crystal Smith, a mobile solutions consultant. After working at home for a long time, she discovered that she needed a space elsewhere in order to have a day-to-day work-life distinction.

“Initially, I was working at home or going to other people’s offices to work,” said Smith. “When this idea came up, I knew it was exactly what I was looking for. It’s nice to take a break throughout the day and talk to other people.”

Fifty-three percent of coworking space-users are freelancers, followed by about 14 percent entrepreneurs and 9 percent small companies.

For Pensacola, the CIE building downtown was the perfect location for this initial coworking space. The CIE is full of startups and innovative thinkers, those who take a little while to get their feet on the ground and benefit from open-source collaboration.

CIE Coworking Lab tenants will have their own private workstation, outfitted with high-speed Internet, fax capabilities, and access to the CIE’s conference rooms, while being exposed to knowledge from other industries and serving as mentor and mentee to their officemates.

The number of coworking spaces across the country is on the rise, and more and more young companies are looking to co-working facilities for their office space needs.

“Our mission is to serve as a catalyst to support innovative entrepreneurs who create jobs and can sustain long-term economic growth within our communities,” said Chamber President Jerry Maygarden. “This new lab will also offer toptier services, including marketing, legal, accounting and human resources, as well as advisory services to support individuals with their growth needs.”

Originally the brainchild of current office tenants at the CIE, the facility was made possible by software company Overgroup Consulting. Co-founder Ross Overstreet contacted CIE manager Kelly Reeser to get the ball rolling on a lab comprised of individual tenants.

“I was expecting it to take several months, but Kelly was right on board with the idea,” said Overstreet. “Coworking started in coffee shops. Whether it was because of the

Smith admitted that while she enjoys working for herself, the unique dynamic presents challenges.

“Working for myself and depending solely on myself for a paycheck takes some getting used to,” said Smith. “This type of environment makes it easier to truly realize I work for myself but can collaborate with others.”

The Coworking Lab, which welcomed its first tenant on Feb. 1, operates with individuals who are on a month-to-month lease. For $200 a month, innovators can have access to all the benefits of a full-office tenant. Interested people can contact Reeser to fill out the simple application.

Reeser emphasized that while the Coworking Lab encourages collaboration, individuals’ working privacy should be respected.

“We have a separate phone room for those who need to take calls throughout the day,” said Reeser. “People are aware that they need to be respectful of others’ need to focus.”

If the Coworking Lab is successful, Reeser said there is currently room in the CIE building to expand and possibly have another room for individual tenants.

“A desk is more cost-effective than an entire office, if that’s what the businessperson needs,” said Ed Meadows, Pensacola State College president. “With small businesses leading the growth of new job creation, we want to ensure that our local businesses have the tools, as well as the facilities they need to compete in the global economy.”

To learn more about innovative coworking facilities and how they are revolutionizing traditional workplace concept, visit the National Association for Industrial and Office Parks’ website, naiop.org.

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Lewis Bear, Jr. presents UWF with a $1 million gift.

Logistics: Moving the World Forward

By Josh Newby

As part of an ongoing series of stories exploring prominent industries in Pensacola, Northwest Floridaâ&#x20AC;&#x2122;s Business Climate spoke with various scholars and experts in the logistics field to understand the sectorâ&#x20AC;&#x2122;s regional impact, educational expectations and career projections.

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Millions of dollars, thousands of people, hundreds of miles and dozens of machines were used to bring you your early-morning cup of coffee today. As you sipped purified water mixed with ground Columbian coffee beans out of a mass-produced ceramic cup, somewhere a supply-chain logistician was busy working to procure and schedule supplies for next year’s order.

Supply-chain logistics, the business of ensuring products and services are in the right place at the right time, is considered one of several specialties that are necessary in all aspects of commerce. While local distribution companies like the Lewis Bear Company, as well as UPS and FedEx, specialize in the industry, every business ranging from restaurants and retail spaces to government and military agencies deal with resource and information accommodation everyday. Whether managers ensure the proper number of employees is scheduled for a particular station at a particular time, or a multi-billion dollar company’s staff sort incoming freight and distribute finished products, logistics is used in all levels of business.

The logistics industry is separated into two fields: inbound and outbound. Inbound logistics is concerned with purchasing and arranging movement of materials and inventory from their origin points to the manufacturers.

Outbound logistics occurs after, when the final product moves from production to the end user.

Prior to the 1980s, transportation supported production and sales. Warehouses were to remain full, ready to go at a moment’s notice when a sale was finalized. As years progressed, however, managers realized that storing all these products resulted in huge costs to secure, insure, climate control and manage millions of dollar’s worth of merchandise.

As logistics became a management function, top leaders at various companies learned they could save money by producing what was needed when it was needed. By working with transportation brokers and companies, managers could ensure these products reached the end user no later than they would have previously. This allowed companies to accelerate reaction times to market developments and to set up efficient goods-supply systems. Thus, modern logistics was born.

In the year 2000, logistics was listed as an actual occupation by the US Department of Labor. Today, warehouses add value instead of costs, and entire firms exist to serve as a middle man between distribution hubs and retail centers. Logistics has become big business.

Efficient logistics services also help organizations maintain a competitive edge in the era of globalization. By participating in international supply chains, companies that were once land-locked can now have influence in global markets.

Locally, the industry is thriving and growing in unexpected ways. Almost nine years ago, Scott Keller began a logistics program at the University of West Florida.

The program has grown into an award winning, highly sought after degree. Recently, the Bear Family Foundation gave $300,000 to the university to enhance the program.

Lewis Bear, Jr., chair of the UWF Board of Trustees, is 16

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president of the Lewis Bear Company, a local beverage distributorship that works with logistics and supply-chain management everyday.

“Logistics appears in our everyday lives in ways many of us don’t even notice,” said Keller. “Whether you are buying groceries, going out to eat, or visiting our port or airport, logistics had a major hand in delivering that product or service to you.”

Local companies like General Electric, International Paper, Nabisco, the Port of Pensacola, Pensacola International Airport and more either have logistics personnel on their staff or use third-party firms to broker transportation deals and schedule deliveries.

“Even music festivals and downtown events utilize the practice of providing timely goods and services to people,” said Stephen LeMay, a logistics professor at UWF. “Logistics is ubiquitous; we don’t think about it, but it affects us all.”

The military is also a large logistics beneficiary and employer. Transportation of ammunition, food, supplies, mail and more must be on time and accurate in order to guarantee operational success. In fact, the military was one of the first industries to successfully utilize logistics on a global scale. The entire interstate system was initially pushed through Congress because representatives understood the need for a national transportation network that would allow effective delivery of goods and services.

In order to succeed in the industry, LeMay and Keller recommend high-level communication, computer and math skills, and obviously a degree in the profession. As globalization increases and small companies want to compete more in larger markets, access to various supplychains is a necessity.

“Even if manufacturing decreases or moves offshore, those warehouses still need supplies and they’ll still need to transport that product,” said LeMay. “The need for the analytical skills that proficiency in logistics provides isn’t going anywhere.”

A logistician can work in a variety of fields and subfields, including shipping, production, distribution, disposal, procurement and more. Third-party brokerage firms and even fourth-party consulting firms both offer big money for the skills.

Keller admitted that logistics automation is increasing, and computer software does increase productivity and decrease error. Industrial machinery can typically read bar codes and other tracking technologies, and follow set programmed rules including destination and transportation method. Human intuition and intelligence becomes necessary and irreplaceable when determining trends, moving goods, and discovering better practices.

“Companies are always looking to justify and reduce costs,” said Keller. “As logistics continues to find new and innovate ways to reduce time, increase accuracy and predict demand, it will be in high demand.”

“Those skills are useful to people in virtually every business,” said LeMay.

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Downtown Playground Coming to the Maritime Park

Possible concept design

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By Josh Newby

Local Rotarians will soon make a fun, tangible difference for children and their parents downtown. The Rotary Club of Downtown, which now boasts more than 220 members, will lead fundraising efforts of $500,000 to construct a playground near Maritime Park, as part of the clubâ&#x20AC;&#x2122;s 100th anniversary in Pensacola.

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Photo by Guy Stevens II

Park’s proposed site.

The idea for this project came to Rotary President John Shaffer and Past President Innes Richards during a visit to San Antonio, Tex. and Tulsa, Okla. as they were researching centennial celebration ideas. One of those clubs did a small park with only a statue and the other did a banquet and service project.

“We wanted to do something that would live well beyond our centennial year and that would benefit the community,” said Shaffer. “I gathered a few past presidents and the current president and we decided to give the city a playground at the Community Maritime Park. It just so happens that the city had wanted to build a playground at the Community Maritime Park but had not gotten the funding yet.”

The park, expected to complete in early 2015, will be located southwest of the baseball stadium, in the center of a grassy area adjacent to the entrance. Shaffer and team chose this location for maximum accessibility and proximity

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to the baseball park’s restrooms. It will also be handicap accessible, have a theme consistent with the Maritime Park and feature a decorative clock tower with the Rotary symbol.

The Rotary Club plans to match gifts given by individual members. Shaffer has applied for a number of grants and continues to reach out to several partners and other local Rotary clubs to help, as well.

Before undertaking the project, members of the Rotary asked local parents for their feedback, and received overwhelming support and interest.

“The playground will give kids something else to do when visiting the Community Maritime Park, but we think it will be a destination as well,” said Shaffer. “And while families are at the park already or downtown, they have a place that kids can enjoy for free. With so much grassy area surrounding the playground and the view of the bay, I can’t think of a better environment to take kids to enjoy the outdoors. We also want

this playground to be very accessible to kids with disabilities and have made that one of our priorities.”

To start the process of bringing this joy to the area, the Downtown Rotary started a small steering committee that worked closely with Ed Shears of the City of Pensacola, as well as the Community Maritime Park Associates board, before forming a much larger committee structure to work out the details and logistics.

“We have a fundraising committee that is dividing the fundraising effort between grants, donations, partnerships, and potential fundraising events for the next year or so,” said Shaffer.

Shaffer emphasized that those outside the business and Rotary community in Pensacola are welcome to contribute ideas or finances.

“This is the community’s park,” said Shaffer.

“We have already been approached by several people outside our club that want to help in a big way. If we do this well, we will have a park that

will be the envy of many other communities. It will enhance the quality of life for those that consider Pensacola a place in which to spend time.”

Literacy and hunger concerns continue to be important topics for the Rotary’s philanthropic efforts. Rotary International, which includes the downtown club, has also focused on eradicating polio. While the Rotary collective has taken major strides in these efforts, there are still cases to tackle.

The Downtown Rotary also sponsors two clubs at the high school level—“Interact”—and two at the collegiate level—“Rotaract.”

“We also give small grants to local organizations each year and recently gave funding for scholarships to both PSC and UWF,” said Shaffer.

The proposed site lies next to the water.

Photo by Guy Stevens II FEBRUARY/MARCH 2014

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The Next Beer Bubble:

Craft Beer Once the cheap, alcoholic drink of choice for tailgaters and frat parties, beer has experienced a recent cultural revolution, in which unique styles and nuanced tastes now lend the beverage an air of sophistication.

Craft beer, defined as a beer with a distinctive flavor that is produced in small quantities by an independent brewer and usually distributed regionally, is growing in popularity alongside recent interest in sustainable lifestyles and buy-local economies.

By Josh Newby

Photos by Guy Stevens II FEBRUARY/MARCH 2014

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Homebrewing is for the brewer’s enjoyment, as well as family and friends, including participation in homebrew clubs.

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Graphic by Josh Newby

Beer has always dominated the alcohol industry, accounting for about $100 billion in nationwide annual sales, but growing craft beer production and consumption have begun to chip away at the contract brewing business. More and more, microbrews are emerging as the flavorful, diverse and often locally produced choice for not only a night on the town, but for everyday consumption after work or during the game. Approximately 98 percent of the more than 2,500 breweries in the country are small and independent, and craft beer now represents 10 percent of overall beer sales, doubling its market share from just five years ago.

Craft beer is just as good for the national economy as it is for neighborhood investment; the business employs more than 100,000 workers and a new brewery opens approximately every day.

In states where the tradition of craft beer has a long history, these microbrews make up about 30 percent of overall beer revenue. Cities with high populations of young people who are environmentally conscious and have disposable income give craft beer its largest portion of market share. In fact, in cities like Portland, Ore. and Seattle, Wash., the traditionally produced beverage is responsible for almost 40 percent of overall beer sales.

Craft brewing expanded greatly in the country in 1979 during the Carter administration, when the brewing of beer became deregulated. While heat and refrigeration challenges initially kept small-town breweries out of the South, states like Florida, Alabama and Louisiana are now experiencing the

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A Mashkettle at the Pensacola Bay Brewery

same interest in regional beer that the northern states have had for quite some time.

In Florida, craft brew is a $400 million industry, but is only about 7 percent of the state’s $6 billion mass-produced beer sales. However, there are pockets of increased interest in places like Tallahassee, St. Augustine and Pensacola.

Hopjacks, which opened its first establishment in 2008, deserves much of the credit for bringing local attention to craft beer, according to Gary Ryan of pensacolabeer.com.

“They continue to do a great job promoting craft beer with tastings and dinners, as well as opening a second Hopjacks on 9 Mile Road and Hopjacks Filling Station on East Cervantes,” said Ryan. “The arrival of World of Beer in 2012 was a big, recent addition to the craft beer scene. The arrival of Pensacola Bay Brewery in 2010 was another key in bringing attention to craft beer. They’ve given craft beer a local flavor, and they’ve done a great job of getting their beer into local restaurants and pubs, and onto shelves.”

When Joe Abston first opened Hopjacks in 2008, there was a noticeable lack of microbrews in the area. Abston intended to change that and fill what he felt was a niche need that could have huge potential, not only for his business, but also for the city. He decided to offer local as well as national craft beer options.

“I paid close attention to what I thought was missing downtown, and I was surprised to see that craft beer didn’t really have a presence,” said Abston. “We started selling it, and right out of the gate we were selling 30 to 40 kegs a week. We went from 36 to 74 beers, and now we’re up to 400 to 500 beers on draft.”

Abston’s other restaurant, the Tin Cow, specializes in canned craft beer.

“We have brews coming from places locally like Pensacola

and Alabama, and even breweries located in Texas and California,” said Abston. “That’s the magic of craft beer.

There’s an attention to detail with local influence, but it can distribute nationally. Every place that sells microbrews has a different selection, so we’ll get people from Nashville wondering what we have here, and they’ll taste something they’ve never tasted before.”

Near the dawn of the recent microbrew revolution, Elliot Eckland and Mark Robertson founded the Pensacola Bay Brewery in 2010. Focusing on local Pensacola landmarks and lore, the Pensacola Bay Brewery mixes a little Florida history in each pint. Demand for their regionally made product has soared and business is booming. The brewery distributes their unique brews to almost 100 restaurants and bars locally and statewide.

The beer-brewing process, which involves soaking grain in water to release sugars for later yeast consumption and fermentation, is thousands of years old, but the beers that Eckland and Robertson create are their own recipes.

Robertson was a backyard brewer for 27 years before opening the Pensacola Bay Brewery, which now resides in downtown Pensacola’s historic district. Homebrewers have launched the national craft beer craze, exposing the public to their products. Without them, there would be no craft beer.

“Homebrewing is for the brewer’s enjoyment, as well as family and friends, including participation in homebrew clubs,” said Ryan. “Homebrewers can also compete in homebrewing competitions. Homebrewers tend to be social.

Getting together to share knowledge as well as beer is part of the experience.”

Now armed with his own recipes and the input of their fellow brewers, Robertson has moved from the backyard to the commercial sector, where he and his team turn out about FEBRUARY/MARCH 2014

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A Pensacola Bay Brewery employee monitors levels

A Pensacola Bay Brewery employee labels craft beer

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2,200 barrels of beer a year, 74 percent of which is distributed elsewhere and 26 percent of which is sold in-house.

“There’s been this real resurgence of buying local and enjoying quality over quantity,” said Robertson. “The young crowd today would rather spend their last $4.50 on a quality glass of craft beer than a six-pack of a mass-produced product.”

Parallel with downtown Pensacola’s cultural and economic resurgence has been the increasing popularity of quality, provincial products.

“Downtown has really blossomed the last few years, and craft beer has certainly been a part of that growth,” said Ryan. “Hopefully craft beer options expand across Pensacola. Having an active, growing craft beer scene adds to what our city has to offer, and for a city our size, is an impressive achievement.”

Part of the reason for craft beer’s local share in national success, Robertson said, is the wide demographic and mass appeal of a uniquely quality drink that fits any style.

“Years ago, older people weren’t really interested in beer,” said Robertson. “They liked wine because it was sophisticated and agreed with their palate. Well now, you can get the same enjoyment from a good quality brew.”

“Microbreweries produce some of the most amazing beer you’ll ever taste,” said Abston.

Quality, diversity and richness of taste has caused beer aficionados to become loyal to certain options

that are simply not available at macro-breweries. This has led to consumers opting to select their favorite type of beer, like pale ale or porter, before they select their favorite brand, much like a wine drinker would choose a pinot noir or moscato.

Robertson admits that he will often visit Hopjacks, the Tin Cow, and other local restaurants to ensure that his beer is being sold and appreciated correctly.

“This industry has very loyal customers,” said Robertson.

“I have a single-celled organism making my signature product and I have to monitor it here and elsewhere.”

Although independently brewed beer experienced a spike in the early 1990s, it quickly died off due to undercapitalization and investor impatience. Robertson, Ryan and Abston hope that this time, the movement will continue, that competition will lead to enhanced products, and that the buy-local affinity is sustainable.

Abston even said that he has noticed a craft Sake trend emerging, and that he hopes downtown Pensacola sushi restaurants take advantage of the interest.

“The craft beer scene continues to grow across Florida,” said Ryan. “I can’t see a reason Pensacola can’t continue to be a part of that growth. Where only a few years ago you could only find craft beer in a bar setting, you can now find a selection of craft beer in restaurants across Pensacola, and that number is growing. I think we’ve reached a point where most people expect the availability of craft beer with a good meal.”

“It won’t hurt my feelings if another brewery opens here,” said Robertson. “I’ll make some new friends while sharing a nice cold one.”

Mark Robertson

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>AROUND THE REGION

business news bits you should know University of West Florida names Pete Shinnick first football head coach The University of West Florida has named Pete Shinnick the first football head coach in the program’s history.

Shinnick most recently coached at UNC Pembroke, where he was hired in 2005 to bring football back to the university after an absence of more than 50 years.

He built the Braves into a nationallyranked NCAA Division II team and compiled a record of 50-24 in seven seasons. Before bringing football back to UNC Pembroke, Shinnick made his mark as head coach of former NAIA powerhouse Azusa Pacific. In seven years with the Cougars, his teams posted a mark of 53-22 and earned two national semifinalist finishes. Football will be the 15th varsity sport at the University. President Dr. Judy Bense confirmed on Sept. 4 that the team will begin playing in 2016, and the University reached an agreement in concept for the team to play its home games at Maritime Park Stadium in downtown Pensacola starting that fall.

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Realty Marts International, Inc. / RMI Vacations celebrates anniversary RMI has just celebrated its 50th anniversary serving the Pensacola area market. Specializing in residential sales, resort property management on Pensacola Beach, and land development, RMI is now meeting the needs of grandkids of many of their original customers.

Gulf Breeze Chamber honors businesses and business people The Gulf Breeze School of Music and Chick-fil-A were among the big winners honored by the Gulf Breeze Area Chamber on Feb. 1. Sharon Pitts of Loftis Marine Division was named the Chamber’s ambassador of the year, and Gabriel Sedlak of Rodan+Fields Independent Consulting was named the emerging business leader of the year.

Pensacola Chamber Foundation accepting nominations for Leadership Pensacola Class of 2015 The Pensacola Chamber Foundation has announced that, beginning Jan. 31, through Friday, Feb. 28, 2014, nominations will be accepted for the 50 available slots in next year’s Leadership Pensacola (LeaP) Class. Self-nominations will also be accepted. LeaP, a program of the Pensacola Chamber Foundation, aims to develop community-minded leaders during its 10-month-long program, which is designed to help participants acquire an understanding of the issues facing the Pensacola area and to gain the leadership skills necessary to resolve them. Candidates sought come from a cross-section of the community – men and women from different political, career, educational, social and cultural backgrounds.

UWF MBA student places first in international business strategy competition A University of West Florida MBA student recently earned the title of “Grand Champion” in the Best Strategy Invitational, a global competition that pits student teams against each other as they operate simulated athletic footwear companies. David Brinson, a December 2013 UWF graduate, competed against nine student teams from Florida, Alabama, Malaysia, Hong Kong, Canada and more to successfully grow an athletic footwear company as it produced and marketed branded and private-label shoes. The students were charged with making strategic decisions based on a list of specific criteri They earned points based on how their company’s performance compared to the best in the industry. More than 600 institutions participate in the competition each year.

Workforce Escarosa changes name to CareerSource Escarosa as part of statewide initiative Local nonprofit employment and training agency, Workforce Escarosa, will become CareerSource Escarosa as part of a new universal brand identity to better align Florida’s nationally recognized workforce system. The change is part of a statewide initiative to improve organizational awareness and access to services for job seekers and businesses. The new state brand, CareerSource Florida, is a result of extensive market research and input from local leaders, employers, job seekers, workforce professionals and community partners throughout Florida.

Across the state today, all 24 regional workforce organizations, the nearly 100 career centers they direct, along with the state workforce board, will now begin operating with their newly adopted brand identities.

New YMCA approved downtown The YMCA board voted unanimously on Jan. 27 to accept the Pensacola News Journal land and locate the new Y to that site. The Studers bought the 5.85acre property in December for $3.4 million and have plans to develop residential housing in conjunction with the YMCA.

Come celebrate International Women's Day Join the Institute for Human & Machine Cognition on March 6 at 11:30 am to hear two speakers working to address the social, political and economic needs of women in Iraq today. They are being sent to the community by the US Department of State. Space is limited, so contact 595-0817 to RSVP.

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National sports pros Derrick Brooks and Bubba Watson headline a list of hometown heroes at 2014 City of Champions event New Pro Football Hall of Fame inductee Derrick Brooks will be one of the featured superstar athletes attending the upcoming Pensacola City of Champions event on Feb. 27 at Sanders Beach Corrine Jones Community Center. The evening will feature speeches by Derrick Brooks, Bubba Watson and Justin Gatlin along with dinner and a live auction of a number of signed items and sports travel packages donated by the athletes. This second annual fund-raising event is presented by the Levin Papantonio Law Firm and WEAR-TV, along with numerous community sponsors. Thanks to their generous support, the City of Champions event is sold out. Featured 2014 honorees Brooks, Watson and Gatlin will be joined by local sports heroes: Tyrone Green, Cortland Finnegan, Downing Gray, Jason McKie, and Dr. James Andrews. In addition, many of the 2013 City of Champions honorees are also confirmed to attend including 2014 Super Bowl champion, Doug Baldwin, Emmit Smith, Alford Morris, George Selvie, Mike Johnson, Roy Jones, Jr., Josh Sitton, Trent Richardson and Jerry Pate.

Panhandle Tiger Bay Club presents Michelle Hurdle – The Status and Future of Airbus in the Area Economic Development spirits were flying high in Alabama after the global aerospace giant, Airbus, chose Mobile’s Brookley Aeroplex for its first U.S. airplane assembly plant. The Panhandle Tiger Bay Club’s February speaker, Michelle Hurdle, was a member of the Alabama economic development team that recruited EADS North America, Airbus and Northrop Grumman to Mobile. Come and learn how Mobile was chosen as the site for this $600 million facility and what Pensacola can do to enhance our chances of bringing industry like this to our area.

Hurdle will share the mission and scope of Airbus operations in the area, as well as the future of Airbus/commercial aviation both locally and industry wide. RSVP to 293-1902. The cost is $35 and the event is Friday, Feb. 21 at 11:30 at New World Landing.

>PEOPLE ON THE

MOVE

Pensacola Blue Wahoos hire sales manager, group sales executive and public relations consultant The Pensacola Blue Wahoos announced Feb. 6 that the organization has hired Chuck Arnold for the position of Sales Manager, Michael Taylor as Group Sales Executive and Courtney Griffith of Lawson Consulting as Public Relations Consultant. Arnold and Taylor will report to Jonathan Griffith, Executive Vice President, and Courtney Griffith will report to Bruce Baldwin, President.

To be included in Around the Region or People on the Move, email your news releases and business announcements to josh@ballingerpublishing.com.

INSIDE THE ARTISTʼS

STUDIO FEBRUARY/MARCH 2014

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>BUSINESS SCENE ...at the Big Brothers Big Sisters - Corks and Canvas Fundraiser at New World Landing

Dr. Kadisha Onalbayeva and Dr. Mike Coleman

Chris Myers and Christy Brussard Myers

...at the Gulf Breeze Chamber of Commerce Annual Gala

Amie and Rob Williamson

Josie Cotti

...at the Bear Family Super Bowl Party

Sandy Sansing, Lewis Bear Jr. and Fred Levin

David Bear, Rick Outzen and David Sansing 30

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