TRENTON - Tucked into the farmland of central Butler County is Miller Brewing Co.'s not-so best-kept secret. The brewery, which sits on 111 acres about 30 minutes north of Cincinnati, routinely hosts brewery managers from around the world.

        “Most people want to come to this small facility in a cornfield and see what we do, and how we do it,” said Al McCurdy, plant manager for the past four years.

        Why so many visitors from so far away?

        “We are the lowest-cost brewery in the world,” said Sandra Lewis, community relations manager for the brewery.

        The brewery, which this weekend marked its 10th anniversary with an employee picnic, represents a significant share of the nation's second-largest beer maker's production. (A barrel of beer contains 31 gallons, or 14 cases of cans or bottles.)

        What has helped drive down costs at the plant — and has made it so popular with business visitors — is the size of its work force and its unique management program.

        The brewery, built in the early 1980s at a cost of $410 million and then mothballed for eight years because of a slowdown in the beer market, has 645 employees. That's half of the more than 1,200 it was originally expected to employ two decades ago.

        The site, one of Ohio's largest, is expected to produce 9.1 million barrels of Miller and contract brands this year, down slightly from 9.3 million last year. By comparison No. 1 brewer Anheuser-Busch Inc.'s Columbus plant, which opened in 1968, produces about 9.5 million barrels annually with 900 employees.

        “We have the largest capacity (within Miller's eight breweries) with the fewest number of employees,” Ms. Lewis said. “Over the years we've evolved to the point where we are Miller's flagship brewery.”

        Miller, a unit of tobacco and food giant Philip Morris Cos., doesn't break out operating results for each of its eight breweries. But the Trenton brewery, Miller's largest and newest in continuous operation, is among its most profitable.

        “From a cost standpoint, everybody targets Trenton,” Mr. McCurdy said.

Stuck in second

        The evolution of the Trenton brewery has come in the midst of major transition in the U.S. brewing industry.

        Over the past decade market leader Anheuser-Busch and imports have gained market share, leaving Miller stuck in second place, said Eric Shepard, executive editor of Beer Marketing Insight, a Nyack, N.Y., industry newsletter.

        Last year Miller's U.S. market share was 20.7 percent. In 1990 it was 21.8 percent, he said.

        “They lost 1.1 percent share over 10 years, which you could see as half full or half empty,” he said. “Half full in that they've been able to hold on to the No. 2 slot. Half empty in that they've lost share and lost share despite two large acquisitions during that period.”

        Mr. Shepard said the situation can be looked at in another way. In 1990 Miller was 43 million barrels behind Anheuser-Busch in production — and last year it was 57 million barrels behind. Miller's 42.5 million barrels last year was down about 1 million from 1990, but doesn't include an estimated 8 million barrels it produces under contract for Pabst Brewing Co., including its Stroh's brand.

        “They're trying to return to growth and it's been tough,” Mr. Shepard said. “The industry's very competitive. Anheuser-Busch and Coors are very strong competitors, and imports are strong. It's not easy. There's not a lot of growth in the industry so you're fighting hard.”

Team-based approach

        The key to Trenton's success is an unusual team-based management approach that puts operation of the 1.4 million-square-foot plant into the hands of more than 30 employee teams.

        Mr. McCurdy said the Trenton plant was designed to leverage the plant's work force to maximize flexibility and productivity.

        Born out of various employee involvement programs gaining popularity over the past two decades, Miller viewed the new Trenton plant as a place to develop a totally new workplace culture.

        “We've tried to eliminate as many layers of management as we could,” Mr. McCurdy said. "It's myself, a department manager, a team manager and the work force. The whole concept was hourly employees really do the work of front-line supervisors."

        Walk into the plant's management offices and the change is immediately visible. The hallways and offices are dark — to conserve energy for the plant's production areas — and almost vacant.

        Managers' offices are on the floor, where employees can have easy access to them. The plant's wood-paneled executive suite is a training area open to all employees.

        The guidebook to Trenton's team-based management is a 100-page design document that spells out the responsibilities for everybody from Mr. McCurdy to technicians on the floor. It includes leaders of United Auto Workers Local 2308, which represents the plant's 525 hourly employees.

        “Management should be painting the picture frame, or establishing the boundaries and the how-tos and lead the teams,” Mr. McCurdy said. “Then let them do their thing.”

        Employees are embracing the team concept. “There's a lot of push back when something doesn't go right. That's a good thing,” he said.

        In return employees participate in a goal-sharing program that annually rewards them financially beyond their pay and fringe benefits for success in improving in five categories: safety, quality, waste reduction, productivity and customer service.

        Last year $600,000 was shared by 525 eligible employees, representing an average payout of a little more than $1,000 each. This year, Mr. McCurdy said, the rewards are on track to approach $2,300 per employee.

        “It's been in place for three years now; each year it's gotten better,” he said.

Reaching out

        The company is trying to increase its visibility in community projects in Butler County and Greater Cincinnati.

        It has contributed more than $180,000 over the last six years to the Tools for Success program at Cincinnati State Technical & Community College, which provides graduates with tools they'll need in their new careers. Miller is also supporting a similar program at the D. Russel Lee Career-Technology Center in Butler County.

        Miller is also aware that not everyone shares its enthusiasm for beer.

        “There's a sensitivity we have to have,” Mr. McCurdy said. “It's a great product, and we ask people to consume it responsibly.”

        As for the future, he said: “I think we, as a facility, are clicking on all cylinders. My goal is to truly make the design document work from the standpoint of metrics we use.”

        And the Trenton brewery still has room to grow.

        “We could still produce between 10 and 11 million barrels annually,” he said.

Trenton benefits from brewery

Brewery execs learn from Miller
P&G hopes ThermaCare is a blockbuster
Company helps employers screen applicants
Tristate business notes
What's the Buzz?
Industry notes: Commercial real estate
Commercial real estate projects
Business Meetings
Bankruptcies
Woman claims Crest hurt teeth
Blacks want to be own bosses, survey finds
Concert tours sing the slow-economy blues
Small steps will help boost your bottom line
Surveillance eyes multiplying
Web catches seafood customers