Daily Business Report-Feb. 19, 2015
The industry’s economic value to the region has doubled in the last three years, from an estimated $300 million ($299.5) in 2011 to $600 million ($599.4) in 2014.
San Diego Craft Breweries and Brewpubs
Economic Impact Placed at $600 Million
Craft breweries and brewpubs in San Diego generated a $600 million economic impact in 2014, according to a new analysis published Wednesday by the National University System Institute for Policy Research.
San Diego’s craft brewing industry has undergone a rapid expansion over the last few years. As craft breweries take a growing share of national beer sales, San Diego brewpubs and breweries have noticeably increased production, creating jobs and new tasting rooms throughout the region. Using survey data and business records from late 2014, the institute updated its analysis of the industry’s impact on San Diego.
Overall Findings:
• Craft brewing’s economic impact has grown substantially. The industry’s economic value to the region has doubled in the last three years, from an estimated $300 million ($299.5) in 2011 to $600 million ($599.4) in 2014. This surpasses the estimated economic impact of the 2015 Super Bowl to the Arizona state economy ($500 million).
• Industry job growth has soared. San Diego breweries and brewpubs directly created 3,752 jobs in 2014, and overall created or sustained 6,203 jobs that year, a 122 percent increase since 2011 (2,796 jobs). Year-to-year growth has mostly been driven by the expansion efforts of larger breweries.
• The number of breweries and brewpubs has more than doubled. At the end of 2014, there were 97 breweries and brewpubs in San Diego County, a 165 percent increase from 2011’s tally (37). Growth is driven both by new enterprises as well as additional expansions of established breweries and brewpubs.
• Total annual industry sales have reached more than $847 million. This figure reflects more than a $90 million increase from 2013 ($752 million) and a $160 million increase since 2011 ($681 million).
“San Diego’s craft breweries have made significant inroads in the marketplace, and that’s good for the regional economy,” said Senior Policy Analyst Vince Vasquez, the author of the analysis. “To foster greater industry development, local elected officials and business community leaders should build more working relationships with breweries and brewpubs. Long-term, industry issues that will need to be addressed on the local level include water usage and land use policy.”
Suds Will Replace Milk During
Girl Scouts’ ‘Cookies on Tap’
A collaboration with Mike Hess Brewing and Cohn Restaurant Group
Girl Scouts San Diego is pairing with Mike Hess Brewing and Cohn Restaurant Group for “Cookies on Tap,” a craft beer, cookie and cuisine fest Fest set for National Girl Scout Weekend Feb. 27-March 1.
Held at the Mike Hess Brewing tasting room in North Park, the over-21 crowd event will raise funds and awareness for leadership programs and the financial assistance that keeps Girl Scouting affordable. Cookies on Tap will also support Operation Thin Mint, a local Girl Scout program that sends “a taste of home and a note to show we care” to deployed military troops.
Girl Scouts San Diego will receive a portion of the proceeds from every cookie pairing flight (five 5.5 oz. beers and five different cookies) sold during Cookies on Tap.
For the occasion, Mike Hess brewmasters will infuse mint into their Umbrix Rye Imperial Stout and serve it with Girl Scouts’ most popular cookie. “Thin Mints bring out the full flavor of our stout, while Samoas cookies play well with the roasted chocolate rye and caramel malts of our City Park Strong Ale,” says Chief Brewing Officer Mike Hess.
The other cookie and beer pairings are peanut butter sandwich Do-si-dos with Station Copper Ale, peanut butter and chocolate Tagalongs with Grazias Vienna Crème Ale, and shortbread Trefoils with Helicon Belgian Golden Strong Ale.
Celebrity chef Deborah Scott — the driving force behind the Cohn Restaurant Group’s Trucked Up Productions, and one of Girl Scouts’ Cool Women of 2009 — has created a special dessert for Cookies on Tap. Girl Scouts will receive a share of the proceeds from the sale of her Native American Samoas Bread Pudding.
Guests may also purchase specialty cuisine from Cohn Restaurants’ food trucks. The Chop Soo-ey truck will be at MHB from 4-10 p.m. Friday and 2-8 p.m. Sunday, and the Ms. Patty Melt truck from 2-10 p.m. Saturday.
“Mike Hess and Deborah Scott are brewing up an experience you won’t want to miss!” says Girl Scouts San Diego CEO Jo Dee C. Jacob. “Event proceeds will help us provide exciting and relevant programs for nearly 27,000 local girls and treat our military troops far from home.”
Since Operation Thin Mint originated in San Diego in 2002, the community has donated nearly 2.5 million boxes of Girl Scout Cookies to U.S. service members around the world. During Cookies on Tap, customers may donate to OTM, and write cards for deployed U.S. military personnel. Hess, a retired U.S. Navy officer, calls Cookies on Tap “a great opportunity to support a great cause.”
Cookies on Tap will take place during the Mike Hess Brewery’s regular business hours, noon-midnight Friday and Saturday, and noon-10 p.m. Sunday. For more information, go to www.mikehessbrewing.com or call (619) 255-7136.
Stadium Advisory Group Invites
Citizens to Public Forum March 2
Mayor Kevin Faulconer’s Citizens Stadium Advisory Group is inviting the public to air ideas about selecting a site for a new stadium for the Chargers at a public forum on Monday, March 2.
The forum will be held from 6 to 9 p.m. at the Qualcomm Stadium Club Lounge S, which is accessible through Gate A at the stadium.
“The Citizens’ Stadium Advisory Group is looking forward to hearing from San Diegans,” Advisory Group Chairman Adam Day said. “We want to hear about their good ideas and we want to know what their concerns are as we work toward selecting a site for a new stadium and developing a financing plan for public consideration .”
Day added: “ The Advisory Group is in the information-gathering phase, so we appreciate the information the Chargers shared with us this week. We had a good first meeting with the team, and we expect to meet with representatives from San Diego County and San Diego State University next.”
SDG&E Offers to Loan Customers
Device to Measure Home Energy Use
San Diego Gas & Electric has launched a home area network device loaner program. Customers can now borrow an in-home display device from the utility at no cost to understand their home’s energy use and identify high energy use appliances with near-real time information and estimated energy costs.
The in-home display is a small digital device that, once connected to a customer’s smart meter, shows how much energy a home is using, and customers can watch the kilowatt-hours and price per hour go up or down when appliances are turned on or off in the home.
“The option for customers to borrow an in-home display at no cost is an important step for us to ensure we are making it easy for our customers to have access to innovative technology that will ultimately help them reduce their energy bills. This is increasingly important as the cost of energy continues to rise,” said Caroline Winn, SDG&E’s vice president of customer services.
SDG&E rolled out a list of several new in-home energy display devices available for customers to purchase and connect to their smart meters. This program is now expanded with the addition of the option for customers to borrow an in-home display for 30 days to gain a better understanding of how their home uses energy and how much it costs to run appliances in the home.
To request an in-home display through the loaner program, customers can contact SDG&E’s Energy Savings Center at (800) 644-6133 or send an email to homeareanetwork@semprautilities.com
Qualcomm Introduces Four New
Next-Generation Snapdragon Processors
Qualcomm Technologies announced four new Snapdragon processors: Snapdragon 620, Snapdragon 618, Snapdragon 425 and Snapdragon 415. The new processors are designed to enhance user experience and connectivity for high-performance and high-volume mobile devices.
Cubic to Combine Defense Divisions,
Lay Off 2 Percent of Workforce
San Diego-based defense contractor Cubic Corp. announced Wednesday it will consolidate its Defense Systems and Mission Support Services divisions and cut around 2 percent of its global workforce.
The new Cubic Global Defense business segment will allow the company to consolidate manufacturing, supply chain, finance, human resources and information technology functions worldwide, which could add up to $15-16 million in annualized pre-tax savings in the company’s 2016 fiscal year, according to Cubic.
“Today’s restructuring announcement reinforces our commitment to improving the business by eliminating redundancies to create a more efficient and responsive organization,” said Cubic President and CEO Bradley Feldmann.
“These changes are necessary to align our organization with our goals for profitability and growth in the future,” he said.
William J. Toti, former president of Cubic’s Mission Support Services segment, has been named president of the combined divisions.
Cubic said it will incur a pre-tax charge in the second quarter of fiscal year 2015 of about$6 million, but estimates cost savings for the balance of the year will result in the restructuring having a neutral impact on its earnings per share.
Cubic, which employs around 7,800 workers, provides realistic combat training systems, secure communications, operations, maintenance, technical and other support services for the U.S. and allied nations. It also has a transportation division that makes passenger payment systems.
— Times of San Diego with City News Service
SDG&E Establishes Endowment
For Living Coast Discovery Center
Today, San Diego Gas & Electric has established a $2 million endowment fund benefiting the Living Coast Discovery Center in Chula Vista. The SDG&E Living Coast Discovery Center South Bay Enhancement Fund will support the continued operation of Living Coast, environmental education programs, and the public’s access and enjoyment of the San Diego Bay.
Establishment of the fund was a condition of the California Coastal Commission’s approval of the relocation of SDG&E’s South Bay Substation. SDG&E proposed the fund as a part of the substation’s relocation from its current Chula Vista bayfront site, making new waterfront land available to the Chula Vista Bayfront Master Plan. The fund will be managed by The San Diego Foundation.
The long term endowment fund is expected to provide nearly $90,000 a year, subject to market conditions, to Living Coast.
Rincon Band Chairman Honored
Bo Mazzetti, chairman of the Rincon Band of Luiseño Indians, has been presented the fifth Anna Sandoval Leadership Award for his efforts in the economic development of the Rincon Band. Last year, the tribe completed a major $200 million expansion of its gaming property and name change from Harrah’s Rincon to Harrah’s Resort Southern California.
“We certainly deserve an award for courage and optimism, as we approved the funds for the Harrah’s expansion during the recession, when the local economy was in questionable condition,” noted Mazzetti, pointing out that the decision has proven to be good timing for today’s market.
The resort currently boasts the second largest number of guest rooms in San Diego County and nationally recognized brands like Starbucks, Pinks Hot Dogs, and the Earle of Sandwich. The tribe’s investment portfolio includes a number of diverse product companies, not located on the reservation, and a Travel Plaza on the Rincon reservation, featuring the first 7-Eleven franchise with an American Indian tribe and a Subway restaurant.
International Leaders in Particle Therapy
To Gather in San Diego May 18-23
Experts from around the world in the field of particle beam radiation therapy will gather in San Diego May 18-23 for the 54th annual Particle Therapy Co-Operative Group Conference hosted by Scripps Proton Therapy Center, UC San Diego and University of Maryland.
Based in Switzerland, PTCOG is a nonprofit organization for those interested in all aspects of particle beam radiation therapy for cancer care, including proton, light ion and heavy charged particle radiotherapy. Its members come from more than 50 organizations located in more than 15 countries.
The conference is expected to attract more than 1,000 physicians, researchers, physicists, engineers, nurses, administrators and others involved in particle beam therapy. The conference theme will be “The Modern Era of Particle Beam Therapy: Widening the Therapeutic Window for Better Patient Outcomes.” Presentations and discussions will focus on the latest technological advances and clinical applications in particle beam therapy for cancer patients.
The conference’s educational session will be held May 18-20. Scientific meeting will take place May 21-23.
Palomar Display Products Awarded
$28.6 Million Contract from Army
CARLSBAD — Palomar Display Products Inc. has been awarded a $28.6 million contract to produce Biocular Image Control Unit (BICU) displays for M1A2 Abrams tanks. The award by the U.S. Army Contracting Command also includes associated spares, repairs and engineering services.
The high-resolution BICU displays have been designed for the M1A2 Abrams tank and will be delivered to the Army over a period of five years, through 2020.
“The repeat selection of Palomar Display Products as a sole source supplier of vital equipment to the most advanced fighting vehicle in the world reinforces Palomar’s position as the primary supplier of thermal sight displays for the U.S. and international armored vehicle market,” said company President Dennis Crothers.
Personnel Announcements
SVA Architects Announces Promotions
SVA Architects Inc. has promoted Lori Ichisaka to senior associate partner and Christopher Coyle to associate.
Ichisaka has more than 30 years of architectural experience with expertise in design build projects, including K-12 and higher education environments and mixed-use developments. As senior associate partner, she is leading SVA’s San Diego office.
Nearly complete for Ichisaka is the award-winning Celadon at 9th and Broadway, developed by BRIDGE Housing, which will offer 250 units of affordable housing to seniors and post-foster young adults beginning in February 2015.
As associate, Coyle works on both public and private projects. He has worked with SVA for five years, and has used his leadership skills for SVA’s Bachelor Enlisted Quarters at Camp Pendleton, Celadon at 9th and Broadway, Clairemont High School, and multiple projects with San Diego Unified School District.
