Publick House beers to be marketed across nation by Pabst of Milwaukee

"We got one of the best brewers in the country," said Don Sullivan, the owner
and president of the Southampton Publick House, remembering the moment in June
of 1996 when the restaurant and brewpub opened. Phil Markowski, the man in
question, had been brewing beer for Labatt, but was looking for a bit more
creative freedom.

At first, Publick House microbrews were available only in its dining room
and taproom. Then they were bottled and sold on Long Island and in New York
City.

Now, thanks to an agreement with the Pabst Brewing Company, several will be
distributed nationwide. These include the Publick House's first and best-selling
beer, German Secret Ale, as well as Double White Ale, rated tops in its class
at beer contests, Southampton I.P.A., and seasonal beers such as the Publick
House Pumpkin Ale.

The Pabst Brewing Company is based in Milwaukee. Founded in 1844, it makes
and distributes more than 25 "classic regional brands," according to the company
Web site, including the most famous, Pabst Blue Ribbon, and Old Milwaukee,
Ranier, Lone Star, Schaefer, and Schlitz. Pabst sells more than 100 million
cases a year, Mr. Sullivan said, but as of yet did not represent any "specialty
craft producers" like the Publick House.

The beers from Southampton drew the big company's attention with all the medals
they have earned at international beer festivals: 22 and counting, including
a silver medal for the Double White Ale and a bronze medal for the Saison farmhouse-style
ale at the 2007 Great American Beer Festival in Denver. Southampton Publick
House is listed as "one of the 20 specialty brewers in the world," Mr. Sullivan
said.

"Our goal was to become a small, regional specialty brand," Mr. Sullivan said
of the microbrewery's early intentions, "selling in the tristate area" and
perhaps beyond.

Early success with tasty beer prompted him and his business partners - Mr.
Markowski and Charlie Sullivan, his bother - to expand their hopes and horizons,
envisioning broader distribution. In 2003, they formed a company called Southampton
Bottling "to begin to build a brand," Mr. Sullivan said.

To bottle the brews, and in order to make them in larger quantities than is
possible at the Publick House facility, Mr. Markowski began production at "contract
breweries," using, for instance, the old Saratoga Brewing Company in Saratoga
Springs, NY., and the Sly Fox brewery in Pennsylvania.

"We've been modestly successful in the last two years in expanding our reach,"
Mr. Sullivan said. Publick House beer is currently available in 12 states,
from Maine to South Carolina, and as far west as Ohio. Before being approached
by Pabst, Southampton Bottling's business plan was to increase sales within
the Northeast and Atlantic region.

To extend beyond that would be a "monumental" cost for a small brewing company,
Mr. Sullivan said. The partners had looked into building a full-scale brewery
here, he said, but the costs were too high.

However, in June, representatives of Pabst contacted the small beer maker,
and the agreement was forged.

Regional brewers who have formed alliances with nationwide brewers are generally
bigger than Southampton Bottling is, Mr. Sullivan said: "We're very small."
Southampton Bottling will maintain the rights to its products and control over
their production. Mr. Markowski will preside over the brewing, at the Lion
brewery in Wilkes Barre, Pa. Pabst will take care of the marketing and distribution.
Revenues will be shared.

"Their bet is that 5, 10, 15 years from now," Mr. Sullivan said of Pabst,
"people will continue to drink a little less, but when they choose a beverage,
whether it's alcohol or not, they're going to choose a better beverage. That's
what's driving the beverage industry." He pointed toward the popularity and
growth in sales of premium drinks, such as Grey Goose vodka, which has grabbed
a bigger share of the vodka market.

"A lot of small brewers turn their nose up" at the idea of allying with the
industry giants, Mr. Sullivan said. Those companies consider such an alliance
antithetical to the ethos of boutique brewing. But, in Mr. Sullivan's opinion,
that "is a shortsighted perspective."

"Hey, if the small guy is going to survive in these economic times...you have
to think out of the box" he said. Frequenters of online beer-industry blogs
have congratulated his company on its deal, he said. "It's the best of both
worlds."

Mr. Sullivan said he's been "too numb to celebrate" the agreement. "When the
first truck is moving out to the great unknown, so to speak --into markets
where we haven't been -- is when it will hit me, as far as what we've actually
done."

Within two years, he expects, Southampton brews will be available in all 50
states.

In the meantime, he and his partners are still serving fresh-brewed pints
and playing host at the Publick House, seven days a week. "Our bottling business
complements our brewpub," Mr. Sullivan said.

"As a mom-and-pop does, we still cater to the local community. Our strategy
has always been to make sure the pint in the glass is as good as it can be.
That's really always been the only thing that matters."

Good beer, he said, "is expensive to make. We're finally at a point where
we can start making money on the beer."