New Orleans' Dixie Beer fights to come back

NEW ORLEANS — The old brick building where Dixie Beer was brewed before Hurricane Katrina is vacant. More than two years after the storm flooded it and looters devastated it, the building with its looming tower and ornate iron gates is gutted and surrounded by padlocked fences.

But a century after its founding, the beer is coming back, say Joe and Kendra Bruno, who’ve struggled to keep the brewery going since buying it in 1986.

‘‘We’ve worked too hard to give up now,’’ said Joe Bruno. ‘‘Dixie is fine, a lot of people want it back on the shelves and so do we.’’

Beer industry pundits seem lukewarm on the brewery’s prospects. After all, Katrina has not been the only disaster to hit Dixie since founder Valentine Merz started production of the pale amber brew on Halloween 1907.

Of the 13 beers that were once brewed in New Orleans, only Dixie Brewing Co. was left by the early 1980s. With microbreweries the rage, and the national market dominated by heavyweights like Miller Brewing Co. and Anheuser-Busch Cos., Dixie became the last major independent brewer in the Deep South.

Once the city’s favorite beer — living up to the slogan, ‘‘Around here it’s Dixie Beer’’ — demand fell in 1975 after fumes from a chemical used to clean floors tainted the beer’s flavor. The bad batch haunted Dixie’s reputation long after the brew was back to normal.

By the time the Brunos bought the company from Neal Kaye Jr. in 1986, the brewery was almost $14 million in debt. Kaye had bankruptcy papers drawn up and was ready to file if the sale fell through.

The Brunos won’t discuss their finances. Kendra Bruno is the granddaughter of the founder of Barq’s Root Beer, a very successful soft drink producer in the south, and Joe Bruno was a real estate developer before getting involved with Dixie.

The couple won’t say how much they paid for the busted but once-beloved brand. ‘‘We only paid our lives, our blood, our sweat and tears,’’ Kendra Bruno said. ‘‘We love the place Dixie has always had in this city.’’

To compete with the craft beers, they developed Blackened Voodoo Lager, a dark beer, and Jazz Amber Light. They also produced a dessert beer, White Moose, with a taste of white chocolate.

Dixie was producing just under 50,000 barrels of beer a year with national distribution, and things were looking up until Katrina’s storm surge smashed levees and poured salty water into 80 percent of New Orleans on Aug. 29, 2005.

The flood waters took almost three weeks to recede. Bottling and packaging equipment was ruined. Carefully collected memorabilia was destroyed.

The loss was in the millions, Kendra Bruno said, and the couple did not have flood insurance. The building was left with gaping holes, though which looters carried away everything from the wiring and the giant copper vat where the beer was brewed to the cypress barrels where it was stored.

Now Dixie faces a fight just finding shelf space.

Most of the U.S. beer market is controlled by three companies, said Megan Haverkorn of Beer Business Daily, a trade publication. Anheuser-Busch has about 50 percent, Miller 25 percent and Molson Coors Brewing Co. 13 percent, she said. What’s left over is being gobbled up by micro-brews or the so-called craft beers.

‘‘Craft beers are huge right now,’’ Haverkorn said. ‘‘They’re getting a surge of growth similar to wine and spirits. People are kind of trading up from their regular beer.’’

After Katrina, the Brunos tried brewing at a small brewery near New Orleans, but it couldn’t produce in quantity. So a deal was worked out with Huber Brewery in Monroe, Wis., to produce Dixie.

Dixie brewmaster Kevin Stuart travels to Wisconsin to oversee the production, using the same recipe.

Dixie is being distributed in Louisiana, Massachusetts, Illinois and Colorado, Kendra Bruno said. Plans are to expand to Texas, Florida and New York and eventually into the international market.

‘‘We’re sort of doling it out at this point,’’ Kendra Bruno said. ‘‘So far the production can’t keep up with demand.’’

But after a two-year absence, attracting fans again is going to be difficult, according to Steve Hindy, founder of Brooklyn Brewery in Brooklyn, N.Y.

‘‘Dixie had a pretty good niche pre-Katrina, especially for its specialty beer,’’ Hindy said. ‘‘Blackened Voodoo was in a lot of restaurants in New York and specialty bars, but things have changed a lot since Dixie disappeared. The beer business is much more competitive now.’’

The Brunos have secured Distinguished Brands of Littleton, Colo., as a distributor, but Hindy said even that won’t offer a quick rebirth.

‘‘Distributors will take your beer, the hard part is at retail,’’ he said. ‘‘There is limited shelf space and it’s hard to get.’’

Still, the Brunos are plowing ahead. Rebuilding is expected to begin soon, with operations beginning in 2009.

‘‘We want to put in a smaller, state-of-the-art brewery in the building,’’ Joe Bruno said. And there are more changes envisioned for the landmark brewhouse.

A European-style beer garden is planned for the rooftop, and specialty shops would be a draw for shoppers. One model for the Brunos’ plan could be the former Jax brewery on the edge of the French Quarter.

At Jax, which was redeveloped in the 1980s after the brewery closed, trendy shops and restaurants are big draws.

But unlike Jax, which is across from Jackson Square in the city’s biggest tourism draw, the Dixie Brewery is on a Tulane Avenue strip that was depressed before Katrina and has been slow to recover. Marginal businesses, low-rent motels and empty buildings — many with extensive damage from the storm — indicate just how far the area has to go.

The renovation of Dixie could spark an upturn for the whole area, Joe Bruno said.

After years of what Kendra Bruno called ‘‘making more beer than money,’’ the ambitious plans will again be costly. But even after the losses to Katrina, the Brunos have no doubt they’ll do it.

‘‘Where will we get the money?’’ Joe Bruno said. ‘‘Who the hell’s business is it. Nobody thought we’d get the money to keep going as long as we have. But we’re not done yet.’’’

That "Fishy" Smell At FEMA

It's official: Larry, Curly, and Moe are running FEMA. Fresh off the spectacle of a fake press conference the tools at FEMA are raising incompetence to a new level. Enter the Audubon Aquarium of the Americas in New Orleans.

When Katrina hit New Orleans it knocked out power to the Aquarium, one of the most popular tourist destinations in the city. Four days later when the staff made their way back they found almost all of their sharks, tropical fish, jellyfish, and thousands of other creatures dead in their tanks. FEMA quickly promised more than $600,000 to repopulate the Aquarium.

The staff members had another idea. Do it themselves and not wait for help from the feds. You'd think what follows below the fold would be a feel good story wouldn't you. But sadly, it isn't.

They wanted to do the work, you know, what we hear all the right wing gas bags (Rush, Beck, Hannity, and Savage) say people in New Orleans should do.

Don't look for government handouts. Pull yourselves up by the boat strips and fend for yourself.

To save precious time (time was actually money for them in a real sense), aquarium staffers improvised and went fishing, snorkeling, and scuba diving for the species needed in multiple expeditions to the Gulf of Mexico, the Florida Keys, and Bahamas. After weeks of effort they returned with 1,681 species. The total cost $99,766 (keep in mind FEMA was willing to pay $616,000).

Great news right? Well in the reality based world of course, but not in the bizzaro Bush world we currently live in.

When the Audubon Aquarium filed the invoices with FEMA they were told (via email mind you):

FEMA does not consider it reasonable when an applicant takes excursions to collect specimens. They must be obtained through a reputable sources where, again, the item is commercially available.

You don't need an advanced math degree to figure out that FEMA is refusing to authorize invoices that would save American taxpayers more than $500,000, simply because the aquarium didn't comply with shit-all-stupid FEMA regulations. Not to mention that the Aquarium was able to open much faster then if they would have waited to purchase what they needed through "reputable sources."Sixteen months after the above email was sent the Aquarium still has not been paid!

This is all happening because of the Stafford Act. The Act does a lot of bizzzare stuff, but one of them states "facilities can not be improved beyond their pre-storm conditions." So according to FEMA that meant the aquarium would have to find fish, through a commercial vendor, the approximate age and size of those that were lost. Of course multiple experts told the Association Press (AP) this isn't close to impossible, it is impossible.

Now I will admit, there is something to be said for rules and regulations, yet why does FEMA only seem to follow them when they hurt citizens. I mean a GAO report issued last week indicated (as I wrote elsewhere):

The report highlights that FEMA approved $16 million in improper or fraudulent invoices for trailer maintenance between June 2006 and January 2007. FEMA also failed to award those contracts to contractors with the lowest prices. Another $15 million was wasted on maintenance inspections FEMA cannot prove ever took place.

Adding to the waste (some like myself may say fraud) is FEMA’s decision to place many trailers at group sites, which at one location runs the agency an average of $30,000 per 280 square feet—because FEMA only placed eight trailers there. The contract for this site was fixed in advance, meaning the cost was the same no matter how many trailers were placed there. To pour more salt on the wounds of Katrina victims, at one site FEMA paid $229,000 for "repairs" on one trailer—the equivalent of a five bedroom house in that area. How do these people still have jobs?

I mean WTF is going on! The citizens of New Orleans and the Gulf Coast are dammed if they do dammed if they don't. They try to do something on their own so it gets done faster and for less money they run into mountains of red tape. They don't do anything and wait for the government to do as they promised, and they wait and wait and get called "lazy."

The situation is a perfect example of FUBAR (Fu*^ed Up Beyond All Reason)!

"There's That Stupid Negative Sign"

Another landmark in the history of New Orleans' relationship with the US Army Corps of Engineers was reached today, according to Mark Schleifstein in the TImes-Picayune. The new gates and levee repairs by the Corps, which the agency announced with great fanfare had given between 4 and 5 feet of additional flood protection to the Lakeview and Old Metairie neighborhoods, both inundated when the floodwalls breached after Katrina, are, it now appears, giving almost no additional protection. The problem: a minus sign that should have been a plus sign. And still the Congress refuses to mandate independent peer review for the Corps' work in engineering and building structures upon which millions of people depend for their safety.

Take The Long Road Home

One of the questions most frequently asked by critics of the New Orleans recovery is "what happened to all that Federal money?" David Winkler-Schmit, in this week's Gambit Weekly, answers part of that question with a meticulously reported piece on the less-well-known half of Louisiana's Road Home program (the compensation for homeowners half is well known, and widely derided for slowness and bureaucracy).

The "Small Rental Property Program," supposedly designed to deal with the peculiarity of New Orleans rental housing -- most landlords own four units or fewer -- has instead become a Kafkaesque nightmare, teasing people with the illusion of almost enough assistance to begin rebuilding, while, in fact, giving them nothing: no payments occur until the owner has secured financing, rebuilt, and re-rented to a low-income tenant, with reams of paperwork to document every step.

Rest easy, there will be no fraud: so far, not one New Orleans landlord has received an SRPP check.

Grand Jury Probing HUD Chief's Statements

In case you haven't heard it enough times, it's not the crime, it's the cover-up. Or in this case, the lesson is not to make sweeping statements under oath that can be easily debunked. And for that, you can thank Housing and Urban Development Department Secretary Alphonso Jackson.

After Jackson boasted to an audience that he didn't give contracts to critics of the President, the department's inspector general and Congress pounced. Jackson, eager to clear his name, proclaimed, "I don't touch contracts."

Unfortunately, that appears not to be true, as the National Journal first reported last month. Now a grand jury is digging deep into Jackson's help for his friends:


Behind the scenes, Jackson has helped to arrange lucrative contract work running into the hundreds of thousands of dollars for friends and associates who went to work at HUD-controlled housing authorities in New Orleans and the Virgin Islands, according to people familiar with his actions. Indeed, one of Jackson's good friends, Atlanta lawyer Michael Hollis, appears to have been paid approximately $1 million for managing the troubled Virgin Islands Housing Authority. Before landing at the authority, some sources said, Hollis had no experience in running a public housing agency.

Jackson's past efforts to aid his friends are causing him no end of headaches. For several months, a federal grand jury, Justice Department prosecutors, the FBI, and the HUD inspector general's office have been exploring Jackson's role in contracting decisions at the housing department. According to people familiar with the investigation, federal agents are focusing on Jackson's relationship with one friend in particular, William Hairston, a stucco contractor from Hilton Head Island, S.C.


In interviews several weeks ago with National Journal, Hairston acknowledged that Jackson had helped him land a lucrative job around January 2006 at the Housing Authority of New Orleans, or HANO. HUD and a former HANO official have said that Hairston was paid about $485,000 for working as a construction manager at HANO during an 18-month period. As it turns out, new information uncovered by National Journal suggests that Hairston was paid even more than that. HSD, a Georgia company that was affiliated with Hairston, was paid $186,280 under a direct contract with HUD, federal procurement records show. A HUD document identified Hairston as a representative of HSD.
Federal investigators are digging deep into Jackson's relationship with Hairston, a sometime golfing buddy of the secretary's. According to the people familiar with the inquiry, federal investigators are also reviewing allegations that Hairston did work on Jackson's vacation home in Hilton Head. Investigators recently questioned at least one Jackson associate on that issue; National Journal could not confirm the allegations.

Apart from Hairston, investigators are exploring the circumstances under which HUD awarded management contracts for the Virgin Islands authority, the sources said. The grand jury is seeking information on Hollis and on a HUD contractor that initially employed him in the Virgin Islands, according to a copy of a grand jury subpoena obtained by National Journal. Hollis refused to answer questions about whether Jackson had aided him.