Can little indie Chihuahua Cerveza run with the big dogs in the Mexican beer category?
It’s been a bit of an uphill battle as the Costa Mesa-based brewery tries to educate consumers about the brand. First, it makes Mexican-style lager. Second, it brews in the U.S. So the little dog has to bark loudly to make itself understood because the best-selling brands are made in Mexico and have big distribution companies behind them: Modelo, Corona, Pacifico (Constellation Brands), Estrella Jalisco (Anheuser-Busch), Tecate and Dos Equis (Heineken FEMSA).
“You go to the grocery store to buy beer. If you walk into the craft section, there’s 200-300 different brands and you’re competing against those,” said Chihuahua’s president Phil Jamison, a veteran of the industry who worked for Anheuser-Busch and started his brewery with Gary Jabara in 2017. “Everyone’s fighting for that share. When you walk into the Mexican beer category, there’s only about six brands and it’s because those big guys really make it hard to compete in that category.”
Still, this pup is hanging in there. In 2019, Chihuahua brewed 8,000 barrels which puts it in the microbrewery category. It sold 1.3 million bottles and cans at more than 2,700 locations, which include restaurants such as Buffalo Wild Wings. The brewery has a 1,600-square-foot-taproom with a 60-seat restaurant in Newport Beach and hopes to add more. Chihuahua is sold in California and Florida but the owners are still pushing; they say it’s coming soon to Arizona, Georgia and Texas.
Customers will find Chihuahua at Total Wine & More and BevMo, as well as grocery stores such as Stater Bros. Markets, Superior Grocers and Publix. Chihuahua is also sold in Latin groceries such as Vallarta Supermarkets and Northgate Market.
Jamison, who was born and raised in Rialto, understands that Mexican beer is popular across cultures. His father died when he was young, so Jamison spent a lot of time with his best friend’s family. “At the Ayalas’ house it was 30 people every weekend for barbecues with their family, and they pretty much raised me. You brought the beer that the father or the grandfather drank. So our challenge now is to be the beer for this new generation of 21-30 year-olds,” he said.
That’s a little tough in his chosen market, but he’s in it for the long haul, Jamison says.
“They (large distributors) can discount their beer overnight and give it away. I mean, they do 12 packs, sometimes at $12.99 at the grocery store, and our best price on a six pack is $8.99-$9.99. It’s tough to compete, but that’s why it’s a long range plan.”
He’ll keep making his beer, his way, and hoping it sticks. Brewmeister Matt Insco is turning out award-winning bottlings including Rico (6.5% alcohol by volume), El Primero (5.0% ABV) and Limon (5.0% ABV). The brewery even makes a pink lager, Rosado, infused with hibiscus petals.
“Consumers at our taproom love it. But getting a consumer to buy a pink beer the first time? I think it was a stretch for a new brand,” Jamison said. “We’ll probably relaunch the bottles again in about a year, but we’ll always keep the draft.”
In the meantime, Chihuahua is focusing on holding its own as “The Original Mexican-American Beer.” “We have to show the consumer that we can produce the same quality of beer, the same style and better,” Jamison said. “And in some most cases it’s fresher because, we’re not having to ship it from a brewery in Mexico.”
Find it: 3107 Newport Blvd., Newport Beach, 949-771-8226, chihuahuacerveza.com.
