Gram is a villager who owns a shop in Veiditorp, by the name of Gram's Workshop. Gram only makes a brief appearance, because of a horde of goblins headed in his direction from a crashed airship. After speaking to him, he quickly closes his door and hides.
Gram's Workshop is a reference to Games Workshop, who produced Warhammer. You can also pickup a Warhammer from just outside Gram's workshop.
If you kill him from long range by using a spell such as good old 5-rock before he notices you, then the goblins will not spawn from the ship, as they apparently take his cut scene as a queue to spawn.
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