Innovation News

Wolverine State Brewing Co expands staff, adds rental hall in Ann Arbor

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May 8, 2013

Wolverine State Brewing Co made a major expansion last year, both in its production facility and its tap room. The Ann Arbor-based craft brewer that specializes in lagers added a rental hall to its tap room on West Stadium Boulevard in the old Big George's space. The Gulo Room, named after its signature pale ale lager, has proven quite popular for a broad range of local clientele. "I have rented it out for baby showers and birthday parties," says E.T. Crowe, co-owner & marketing director of Wolverine State Brewing Co. "Groups seek it out and hold presentations there." Wolverine State Brewing Co specializes in lagers, a light-specialty beer that often takes a month longer to brew than the average ale. The company got its start in 2006 contracting its brewing out to a larger brewery. It opened its current location on the west side of Ann Arbor in 2010, which currently houses its tap room and production facility. The brewery installed three new fermentation vessels late last year, allowing the firm to up its production. It sold 1,100 barrels of lager last year and is on track to hit 1,500 barrels in 2013. The overall production numbers are lower than other breweries because lagers are more difficult to brew. "Lager yeast moves slower and has to be much colder," Crowe says. "Our infrastructure has to be much more intense." Wolverine State Brewing Co has hired three people over the last year, including a brewer, a brewery worker and a bartender. It now has a staff of 12 people and is looking to capitalize on its most recent gains. "This was a huge leap to make inside of a year," Crowe says. "We are now sitting tight this year and catching up." Source: E.T. Crowe, co-owner & marketing director of Wolverine State Brewing Co Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

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Race car simulation firm Image Space capitalizes on steady growth

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Economic Development

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May 8, 2013

Apparently slow and steady does win the race, even for tech firms that make race car simulation software. Image Space has made its mark as a video game development firm since 1992. Its principal product is the rFactor and rFactor2 systems, which allow users to build their own four-wheel vehicle and use it in a racing simulator. Slowly and steadily improving those platforms has allowed the downtown Ann Arbor-based company to continue its relentless growth in recent years. "Our growth will be slow and steady," says Gjon Camaj, vice president of Image Space. "We only bring people in as we need them. Our growth has always been slow and steady." Image Space now employs a staff of 20 people, a dozen of which work in downtown Ann Arbor. The rest work remotely. The firm hired one engineer six months ago and is in the process of hiring another engineer right now. That expanding team will help to continue to grow the rFactor platforms, including its new rFactor Pro. Its new products are being used both by professional racing teams and by companies looking to provide a realistic game-playing experience. "We have sold that to a number of racing organizations, including a number of Formula 1 teams," Camaj says. "We have also used that software in other ways and sold it to marketing companies." Source: Gjon Camaj, vice president of Image Space Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Jolly Pumpkin doubles production staffing in Dexter

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Healthy Communities

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May 8, 2013

Jolly Pumpkin Artisan Ales is living up to its name this year, or at least the jolly and the artisan parts. The Dexter-based craft brewery is quickly filling up its new production facility and watching sales go up at its restaurants in Ann Arbor and Traverse City. The 9-year-old firm has also been doing some collaborative brewing with Maui Brewing Co. The result is Sobrehumano Palena 'Olo, a red ale brewed with liliko'i and Michigan cherries. "It's usually a lot of fun because you get to learn something from a different brewer," says Ron Jeffries, founder of Jolly Pumpkin Artisan Ales. The brewery executed its move into a larger facility in February. Its 70,000 square feet of space (up from 10,000 square feet in its last location) has a 20,000 square-foot office that Jeffries is looking to turn into a pub later this year. It also has 50,000 square feet of production space that is helping quench the thirst for Jolly Pumpkin Artisan Ales' award-winning lineup. "It's filling up alarmingly fast," Jeffries says. "We're going to have to figure something out next year." Jolly Pumpkin Artisan Ales produced 10,000 barrels of its brews last year and is on track to sell as many as 13,000 barrels this year. That number can keep going up because its new facility provides it with the capability of doubling production. More production space has also allowed the brewery to double its production staffing to 15, after hiring seven people. It is currently looking to hire five more to do beer delivery, general labor and brewery work. The brewery also employs another 200 people at its restaurants, which have watched their sales increase significantly over the last year. Source: Ron Jeffries, founder of Jolly Pumpkin Artisan Ales Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

NetWorks Group adds 3 jobs, looks to add 3 more

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Economic Development

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May 8, 2013

Ethical hacking is one of those terms that is both attention-grabbing and in some cases profitable, at least for one downtown Ann Arbor-based company. NetWorks Group has enjoyed a significant surge in new business for its ethical hacking program. That section of the 15-year-old IT company has enjoyed double-digit growth over the last year and now makes up a quarter of the firm's bottom line. "Our ethical hacking organization is designed to find those vulnerabilities (in an IT system) before they are exploited," says Steve Fuller, president of Networks Group. The firm has also enjoyed double-digit growth in its managed services section, which makes up half of the company's revenue. That service is becoming more attractive because more and more organizations are looking for a comprehensive solution to their IT problems. "A lot of places do a lot of project-based services," says Matthew Warner, creative director for NetWorks Group. "We make it easier to come in and handle all of it for you. You won't need to worry about any of it. This is becoming more alluring for organizations." NetWorks Group has hired three people over the last year, expanding its staff to 18 employees and one intern. It is also looking to hire another three people right now, including a network engineer, security engineer and sales rep. Source: Steve Fuller, president of Networks Group and Matthew Warner, creative director for NetWorks Group Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Arbor Brewing Co doubles production, caps India expansion

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Economic Development

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May 8, 2013

Arbor Brewing Co spent much of 2012 setting the stage for some significant growth both at home and abroad. This is the year the Ann Arbor/Ypsilanti-based craft brewery begins to reap some of those gains. The Ann Arbor-based company completed a $1 million eco-friendly expansion to its sister brewery, Corner Brewery in Ypsilanti, last year. That gave the firm the room to double its capacity. Last year it sold 3,500 barrels of beer and is on pace to sell 5,000 barrels this year. Next year's target is 7,000 barrels. Helping drive that growing demand is sales of its new award-winning IPA (Buzz Saw American IPA) and its takeoff of its strawberry blonde beer, Bollywood Blonde. Arbor Brewing Co is also doing a quarterly release of its Imperial Series, which includes a double IPA and an imperial pilsner. The brewery is also increasing production of its four-packs of barrel-aged sour beers. "Some of our brands are really starting to take off," says Rene Greff, who co-founded Arbor Brewing Co with her husband, Matt Greff, in 1995. Arbor Brewing Co's new India franchise is also gaining traction. The firm recently decided to open a franchise in Bangalore to fill the void in the practically non-existent craft brewing scene in India. After a year of trying to get the brewery off the ground, it is now up and running and gaining speed. "It's doing fantastic," Matt Greff says. "We started serving beers in February and it's blowing away our expectations of sales and beers sold. It's absolutely nuts." Arbor Brewing Co currently employs about 50 people in India and expects to begin searching for an American master brewer to work there full-time later this year. It is also exploring the idea of expanding to a few more locations in India in the next few years. The company has a staff of 70 full-time employees and two interns between its downtown Ann Arbor brewpub and the Corner Brewery. It has hired five people between those two breweries over the last year, both for its kitchens and the breweries. Source: Matt & Rene Greff, co-owners of Arbor Brewing Co and Corner Brewery Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

DesignHub grows workload in Saline

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Innovation News

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May 1, 2013

DesignHub's steady growth curve is continuing in Saline as the design firm expands its revenue, client base and service offerings. "It has been modest growth," says Chris Kochmanski, partner at DesignHub. "The way we have grown is by adding some signature clients and getting into some new things." The 14-year-old website design firm has watched its revenue grow by five percent over the last year, taking on some new clients like Inmatech, a tech firm based in Ann Arbor. DesignHub is also working to become a one-stop shop for digital marketing for its clients, handling more work in mobile and designing several different versions of websites for its customers. "We're seeing a lot of that," Kochmanski says. "We're working on things like that for a few people." He estimates DesignHub has launched about a dozen new websites over the last year and is handling work for some big names, such as Ann Arbor SPARK and MASCO Cabinetry. Source: Chris Kochmanski, partner at DesignHub Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Environmentalist grows passion into Ann Arbor Seed Co.

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Economic Development

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May 1, 2013

Eric Kampe has a couple of passions and two are taking priority in his life right now. The Ann Arbor resident is an environmentalist and seed-saving enthusiast. Seed savers will save and collect seeds for farming. The idea is to keep local ecosystems fresh and diverse through using local, organic and native seeds. That hobby got Kampe started on creating his own business, Ann Arbor Seed Co. "I am very passionate about growing food in a healthy and organic way," Kampe says. "I am also passionate about seed saving." Ann Arbor Seed Co. sells 10 varieties of fruits and vegetables, such as an heirloom tomato called Cherokee Purple and a sunflower called Tigers Eye. The 1-year-old business sells its seeds at the Ann Arbor Farmers Market, Growing Hope in Ypsilanti and The Garden Mill in Chelsea. It recently sold out of its line of spinach seeds. Kampe splits his time between the two full-time jobs of running Ann Arbor Seed Co. and driving a delivery truck. He hopes to make Ann Arbor Seed Co his only job by tripling or even quadrupling his product portfolio this year. It would allow him to follow his passion in agriculture and keep working his hands. "It's a rewarding lifestyle," Kampe says. Source: Eric Kampe, owner of Ann Arbor Seed Co Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Locavorious thrives on fresh frozen foods

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Economic Development

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May 1, 2013

Locavorious has enjoyed some solid growth in the last year and is preparing to staff up for the 2013 growing season with half a dozen new hires. The Ann Arbor-based business preserves the produce created at local farms by freezing it in a community freezer. That food is then sold on a subscription basis so customers can capture local food at its peak freshness. More money stays in the local economy and less food is trucked in from the other side of the continent. Locavorious' subscriptions were up 12 percent to 265 over the last year, and the 6-year-old firm's goal is to cross the 300 threshold by next spring. Last year it faciliated the sale of 14,000 pounds of food and it's looking to do even more this year by widening more channels to supply fresh local food to the Ann Arbor area. "We are doing a lot more retail on top of our subscriptions," says Rena Basch, owner of Locavorious. The company became a Whole Foods-certified seller last year and the store near the Ann Arbor-Saline Road is carrying six of its products. "I am talking to two other stores," Basch says. "We will hopefully put more products into our retail channel." Basch also wants to expand Locavorious' coverage area beyond the Ann Arbor/Ypsilanti area. The Plymouth area appears to be a likely candidate for expansion. Source: Rena Basch, owner of Locavorious Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Retinal therapy developer ONL Therapeutics expands executive team

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Innovation News

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May 1, 2013

ONL Therapeutics is growing and the most visible sign of that is the expansion of its leadership team. The Ann Arbor-based start-up recently hired a vice president of research and development, bringing its headcount to four employees and a few independent contractors. The 2-year-old firm recently completed its pharmacology study and is developing the plan and design for its clinical trials. "We will complete the formulation of the product and manufacture the supplies to conduct the final, formal safety study and supplies for the clinical trial," says Raili Kerppola, CEO of ONL Therapeutics. ONL Therapeutics is developing a new retinal therapy to help prevent retina detachment and blindness in some cases. It spun out of the University of Michigan's Kellogg Eye Center and is working with the university's Office of Technology Transfer. ONL Therapeutics recently obtained an orphan drug designation because it treats a rare affliction. The designation is expected to help clear the path to the market. Kerppola expects the clinical trial for the therapy to begin next year. Commercialization is expected to take about five years. Source: Raili Kerppola, CEO of ONL Therapeutics Writer: Jon Zemke

Covaron Advanced Materials lands $300K in seed capital

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Economic Development

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May 1, 2013

The winner of the student portion of the Accelerate Michigan Innovation Competition is now a venture-backed start-up, landing six figures in seed capital. Covaron Advanced Materials (formerly Kymeira) scored $300,000 in a seed capital round, which was led by the Mercury Fund. The First Step Fund, Huron River Ventures and Two Seven Ventures are also participating in the round. The Ann Arbor-based firm is developing a new chemistry for ceramics, which brings the benefits of existing advanced ceramics to new parts and markets. "It's going to help further the development of the technology and the intellectual property," says Dave Hatfield, CEO of Covaron Advanced Materials. "It will also generate the initial sales in the mold and pattern market." The 1-year-old business employs four people and a few independent contractors. The team consists of founder Vince Alessi, co-founders Cam Smith and Reed Shick, along with Hatfield. That team took home first place in the student division of last fall's Accelerate Michigan Innovation Competition, a prize worth $25,000. That prize usually goes to raw start-ups but Hatfield believes Covaron Advanced Materials' technology is far enough along that it can begin making sales in the molds and patterns market (think durable goods like those used by the automotive sector) this year. An expansion into the oil and gas industry and a Series A round of funding could also be in line next year. "We're hoping to commercialize this as soon as possible," Hatfield says. Source: Dave Hatfield, CEO of Covaron Advanced Materials Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.