Peace Tree Brewery puts Knoxville at the forefront of Iowa-crafted beer locales

By Jared Curtis

Five years ago, Scott Ziller found himself in 5,000 square feet of potential trouble. The building he had bought and was offering for lease in downtown Knoxville was generating no interest, and plan B was, well, non-existent. But then something happened on the way to the distillery, if you will. An idea that has turned Knoxville into one of the fastest, and most popular beer drinking destinations in central Iowa. That idea was Peace Tree Brewery.

"I was a homebrewer and a craft beer drinker, but I never thought I'd be running my own brewery," said Ziller, who co-owns Peace Tree Brewery with his wife, Megan McKay Ziller, and her father, Dan McKay.

The McKays, who spend their days at McKay Insurance, are not the most likely candidates to run a brewery, but once the seed was planted, there was no turning back.

"We had purchased the building a few years prior and had it for lease, but we didn't have any takers," Ziller said. "So we started thinking of ways we could fill the space like possibly putting in a laundromat."

A chance occurrence led them into a different kind of suds.

"Dan came into the office one day, and I think he was reading about the craft beer boom in the Wall Street Journal, and said how about a micro brewery?' " Ziller said. "A month later we were in Boston at a craft beer conference."

In a little more than two years, the brewery has exploded in popularity and doesn't show any signs of slowing down. Praise of Peace Tree's beers continues to be heard, and they are quickly becoming one of Iowa's favorite beers.

"Our most popular beer is the Blonde Fatale from Peace Tree Brewing," said Kirkwood Lounge bar manager Nick Barsetti in a July "Belly Up" column. "We have trouble keeping it in stock."

History

With fewer than 8,000 people residing in Knoxville, the idea of opening a brewery might be considered a risky concept. But the owners, who had been residents for years, knew the community would be receptive to the idea and the opportunity to help grow and expand the downtown district.

"Knoxville has been a very supportive community, but in the last 20 years the population and local businesses have decreased," Ziller said. "Some friends of ours opened an independent book store, and we wanted to follow their lead and open something unique to the area as well."

When searching for a name, the history of Marion County was important to the owners. Ziller said while looking through history books, they read about a giant sycamore tree, known as the Peace Tree, located near the town of Red Rock, which is now located under Lake Red Rock. The tree had been a meeting place for Native Americans as well as a landmark for fur traders to bring their goods. It was also once the site of Indian peace treaty negotiations, and there is speculation that the tree marks the Red Rock Line territory.

"Once the whole concept came together, we knew we had made the right choice," Ziller said. "Peace Tree was a great name, and it had a great connection to the town. Once people heard the name, we heard lots of stories about the area."

Along with the name, the brewers also paid tribute to the location of their brewery.

"Our building is an old Nash Rambler dealership, which is why we named one of our beers the Red Rambler," Ziller said. "Plus, the building was an ideal fit for us because we wanted something in the downtown area rather than something on the outskirts of town."

The taproom

The brewery created its first beer, Hefeweizen, in March 2010. Shortly after came three of its four staples — the Red Rambler, the Hop Wrangler and the Rye Porter. Soon after, the fourth staple, Blonde Fatale, was released.

"Joe Kesteloot, our head brewmaster, created about 30 different beers initially," Ziller said. "That's when we knew we needed the tap room."

The taproom opened in the front part of the building, as the back of the space housed the brewery. The building is 5,000 square feet, with 3,800 dedicated to the brewery.

"We started opening the tap room one night a week," Ziller said. "We had eight beers on tap, and within four or five hours we'd be out of beer."

As they continued to run out and the demand increased, the owners knew they were on to something.

"People started showing up to the tap room early, waiting to get in," Ziller said. "The amount of people showing up was a surprise, but it also helped in the brewing decision process, hearing feedback from all the customers."

The taproom is open Thursday and Friday from 5 to 10 p.m. and Saturday from 1 to 10 p.m. Although they don't serve food, they offer local cheeses and take-out menus from local establishments.

"We didn't want to serve food because we wanted the focus to be on beer," Ziller said. "We were packed on Thursdays, so we knew we needed to expand the days. We have a few live bands a month, and I think it's become a unique meeting place for people in town."

Peace Tree will hold a tasting celebration from 3 p.m. to midnight on Saturday, Oct. 8 called "Brews & Muse," which will feature nine beers and a rare sampling, as well as live music and food. Admission is $10 in advance (at the taproom or midwestix.com) or $15 at the door. The first 100 attendees will receive a free collectable pint.

"It's a great way for us to give back to the community and provide something fun for people to do on a Saturday," Ziller said.

Tours of the brewery are also available upon request.

"We offer tours as often as we can," Ziller said. "We encourage people to call ahead or just ask when they stop by the tap room."

The brewery has not only drawn thirsty Iowans, but beer enthusiasts from all over the world have made the pilgrimage to Knoxville as well.

"We've seen a lot of people who are traveling through the state take a special detour to visit us," Ziller said. "We've had people stop in from Hawaii, Israel, Canada, Japan and China, all with great feedback."

The brewing process

In 2010, Peace Tree brewed 750 barrels (a barrel holds 31 gallons). In 2011, it hopes to brew between 1,800 and 2,000 barrels and release 3,000 barrels in 2012.

"We are currently expanding and hoping that'll bring Peace Tree to full capacity," said Kesteloot. "We've been flattered and humbled that the beer has taken off as well as it has. We didn't anticipate the demand to be this much for a few more years, so we're a couple of years ahead of schedule."

Kesteloot worked for breweries in Illinois and Minnesota before landing in Knoxville. A number of factors drew Kesteloot to Peace Tree.

"I heard through the grapevine about a brewery opening in Knoxville, so I decided to chance it and jump in," he said. "It's every brewer's dream to get in on the ground floor because you get to watch everything grow from scratch.

"I knew Iowa Craft Beer was on the rise and it was close to family, so it was a no-brainer," he continued. "Plus, Scott, Megan and Dan knew what they liked, but they said I had total freedom to create what I wanted."

From the beginning, Kesteloot knew what he wanted to create.

"I set out on a different course and created unique beers playing off standard styles," he said. "My job is to create beers, and luckily I'm obsessed with making the best and most unique beer I can come up with."

With so much success so quickly, the increase in demand can put pressure on a brewer. But Kesteloot welcomes the challenge.

"I never thought we would grow that fast, but I'm flattered," he said. "All of the extra work and pressure is worth the excitement we're building."

Originally, the brewery had its own van and delivered the entire product to customers. Outside of Knoxville, their first tap was located at Shorts Burger & Shine in Iowa City.

"Getting out and selling the beer face-to-face wasn't difficult, but some places needed a distributor," Ziller said. "We were delivering five days a week, and distributors started to realize the growth, and they were impressed that we were doing it ourself. But once it got to be too much, we joined forces with two distributors, Fleck Sales and Iowa Beverage Systems, and we have worked great together."

Peace Tree had around 100 accounts before working with distributors. Now they have more than 250 in more than 50 towns and cities throughout eastern, central and southern Iowa.

"We've had an overwhelming response," Ziller said. "Keeping up with demand is a good problem to have."

The four staples (plus root beer) are available in the bottle year round, and a few seasonal beers pop up throughout the year including the current flavor, aptly named Cornucopia, which is made from Iowa sweet corn.

"I try to use as much local product as possible, and Cornucopia is released as soon as the sweet corn is available," Kesteloot said. "I've also had a few farmers show interest in growing hops."

The four staples can be found bottled almost anywhere, but in order to try the specialty and seasonal batches, visit the Knoxville taproom where the entire product line is available.

Stimulating the economy

Beer drinkers aren't the only ones savoring the new Peace Tree business. Knoxville City Councilman Bob Wims believes the brewery offers more than just beer.

"It's certainly brought people to our community who might have never stopped here before," Wims said. "It's a unique attraction for the city, and there has been quite a bit of buzz about them."

Wims not only hears about the beer in town, but also out of town on numerous occasions, he said.

"I was at a Fourth of July celebration in Pella, and I heard numerous people talking about the brewery," he said. "It's great for Knoxville because it's something that no other town in Iowa can offer."

The location of the taproom in downtown Knoxville has also boosted the economy, Wims said.

"It's a positive for the entire downtown area. It's given that area momentum, and we've been able to attract more businesses and restaurants as a result," he said. "Upgrading the downtown area is a slow process, but we're working on it, and Peace Tree helps that process as they are a unique attraction that draws people in.

"They've created a place to gather in town and when you stop in, you'll always see someone you know enjoying themselves," Wims added. "They appeal to young families, which a lot of establishments here are not doing. They've handled the responsibility very well, and I wish them continued success."

Along with the beer, Peace Tree is also brewing knowledge.

"I'll admit I wasn't very well educated about beers," Wims said. "But they have been very eager and resourceful, helping myself and many others understand the different styles of beer."

Brewing into the future

As Peace Tree continues to grow, it has been compared to New Belgium Brewing Company, which started in 1991 and by 2010 had become the third-largest craft brewery and seventh largest brewery in the U.S., producing 582,000 barrels. New Belgium's success is attributed to its quality product, unique labels/bottles and quick growth.

"It's flattering to be compared to New Belgium," Ziller said. "They offer a great, quality beer, and people are drawn to the culture, creativity and attitude."

The continued growth of the company can only succeed with the support of local beer enthusiasts.

"It's important to get out there and support local breweries and experiment with what Iowa breweries are offering," Kesteloot said. "I think people will be pleasantly surprised by what the Iowa Craft breweries are creating, and I think they are as good as anything being brewed on the coasts."

Even though the company could expand in markets outside the state, the owners' commitment to stick to their roots adds to the pride Iowans have for Peace Tree Brewing Co.

"When we started, we never had the intentions of going beyond the Iowa border. We just wanted to provide an economic boost to the community," Ziller said. "We've expanded this quickly because Iowa customers want our product. We can dream of becoming a regional brewery, but right now we're focused on creating a superior product. We've always been about quality over quantity, and that'll never change." CV