Colorado Brewers Ramp Up Supply

Colorado Brewers Ramp Up Supply

Carol White - October 14, 2010

The Beer World just keeps on growing, with unprecedented growth in the industry. The Brewer's Association reports that the craft brewing industry grew strongly in the first half of 2010 - 9% by volume and 12% by retail dollars. In the U.S., 1595 breweries operated for some or all of 2009 - the BA says it's the highest total since before Prohibition. In Colorado, we added 10 new breweries to The Beer Drinker's Guide in less than 10 months.

Sales are up, demand is up, and that can lead to a short supply of your favorite brew. If you're a brewer, that can lead to disgruntled consumers. There is nothing more disheartening to a thirsty bar crowd than a spitting, gasping, empty beer tap. It's just the kind of thing that can trigger anarchy, collapse of society, and worldwide destruction. So we asked around to find out how some Colorado breweries are staving off the end of the world by producing more beer...

- Del Norte Brewing in Denver is adding 10 new fermenters, close to doubling their capacity. Why the increase right now? According to Jack Sosebee, co-owner of Del Norte, "We are moving into new geographic areas, specifically, New Mexico and Texas. We need to be able to supply these new markets." With many awards won for their Mexican-style style beers (the latest being a gold medal at the 2010 GABF for their Manana Amber Lager), Del Norte is capitalizing on their popularity, literally taking it to the bank. They are also enjoying their success. "We are very pleased with the way things have gone for us", said Jack. They will remain in their current location, with a bit more room for further expansion. They do have a tasting room that is open Friday afternoons from 3:30pm - 6:30pm.

- The recently-opened Strange Brewing in Denver is expanding their brewing capacity as well. They are moving up to a 7 barrel system. Strange opened in May of 2010, and has been quickly pouring through their beer ever since. "It's not a bad problem to have", says Tim Myers, who owns Strange along with partner John Fletcher. "We're constantly brewing just to keep up with demand in our taproom," he said. Tim and John have had requests to get their beers into other restaurants and bars. They have to be able to brew more to keep up with the demand. "We're also going to be expanding our taproom hours to 7 days a week, probably within the next few weeks" Tim added.

- Twisted Pine Brewing in Boulder is also branching out and sending out new shoots. Brewery expansion includes a larger production area, recently acquired grain silo and a new extended patio with beer garden. The grain silo will allow for delivery of bulk grain reducing material costs and labor costs. The increased production area frees up space for more brewing vessels and eventually a bottling line. Twisted Pine beer can now be found in Colorado, Texas, Louisiana, and Missouri. Future plans for distribution also include Arizona and New Mexico. They have been adding to their awards as well. Twisted Pine won a bronze medal at the 2010 GABF for their Big Shot Espresso Stout, a gold medal at the 2010 Colorado State Fair for their Northstar Imperial Porter, and a bronze medal at the State Fair for Le Petit Saison. Jody Valenta, Twisted Pine's taproom manager, says "It's a pretty exciting time for us. We won bronze at GABF, have expanded our space, and will be in 7 states by the end of the year".

- The Fort Collins Brewery underwent a major expansion this year, and just moved into their shiny new production facility this summer at the end of August. In the old facility, which they occupied just under 7 years, they would have maxed out their production capacity at 10,000 barrels. This last year they were at 7500 barrels, in part because of a lot of down time associated with their move. According to Doug Smith, Production Manager for Fort Collins Brewery, their brewing capacity at their new location is 40,000 barrels. They should be up over 10,000 by next year. They had already purchased a new bottling line, so, as Doug said, "We're in good shape. We went to self-distribution last year. We now have a top-notch sales team, and increased our Colorado sales dramatically." Selling into Louisiana as well as 4 other states will keep the beer flowing.

- Up the street at Odell Brewing, they, too, expanded this year - their fourth major expansion since opening in 1989. For 2010 Odell unveiled a newly expanded brewery, which doubled the size of the facility, said Odell spokeswoman Amanda Johnson. "We were pretty much at capacity," Johnson said. "We've seen double-digit growth over 10 years. If we wanted to continue any growth, it was imperative we expand." The expansion included the addition of five new brewing tanks (each with a capacity of 200 barrels), an expanded tasting room, a wood-aging cellar, a 750 ml bottling line, and a 76 kilowatt photovoltaic system capable of providing 39% of the brewery's peak energy demand.

Colorado Brewery Growth, In Barrels Produced
(Does not include 2010 growth numbers)

Brewer	2005	2007	2009
New Belgium	370,300 bls	476,100	583,160
Odell Brewing	28,000	40,223	45,333
Left Hand Brewing	8653	14,783	18,324
Avery	7261	13,064	16,091
Great Divide Brewing	5942	8761	12,070
Ska Brewing	5275	7288	11,682
Bristol Brewing	5750	7200	7425
CooperSmith's Pub & Brewing	2014	2019	1920
Smugglers Brewpub & Grille	495	808	1113

Source: Brewers Association New Brewer Vol. 27, No. 3

Of course, some brewers have little desire to enter the world of large-scale production. Just enough may be just enough - without all the headaches, spreadsheets and expense of making more and more beer. Peter Villeneuve is taking another approach. His new Big Beaver Brewing Company in Loveland is predicated upon meeting the demands of a core group of loyal customers, and no more. "I'll be happy making enough beer to satisfy the needs of about 400 people," he said, and he'll keep his costs low by selling only in multi-use containers like growlers and small kegs. Packaging is not anywhere on the horizon. "It's stupid. Half the cost of making beer is in the packaging, the bottle, the can, the label, the cardboard. Why not just encourage people to bring their own containers, save money, get better beer?" Good question, Peter. Of course the only drawback is that you pretty much gotta go there to get it, which is just fine if you're nearby. Decisions, decisions. Do I get one growler or two?

Tom Hennessy, owner/operator of Colorado Boy Pub & Brewery in Ridgway has been through it all before. Colorado Boy is his sixth brewing operation, and for him "It's as much for me about the lifestyle as it is about the money. Now I walk to work, spend a few days a week brewing and tinkering. It's a nice life." He's owned large and small breweries, and knows that packaging operations will change the costs dramatically. "The package itself is expensive. And then you are competing for shelf space with Odell and Left Hand." Tom prefers to focus on the passion of brewing beer, and providing beer for the community. "Don't get me wrong, what Odell, Left Hand and New Belgium have done is great. We all started about the same time, in '93, '94." But Tom's path has taken him in a different direction. Today he teaches a one-week immersion course out of his pub to educate others how to simply and affordably start their own brewery. His world view is a look into the future as well as a look to the past: "My goal is to see every little teeny town in Colorado have their own brewery."

It's a wonderful world. No - it is really two worlds and we get to live in both. From the well-stocked beer cooler a thousand miles away, to the bar stool in front of the next batch being brewed, Colorado beer keeps on making us happy. And Colorado brewers continue to produce more great beer, supply a growing craft beer marketplace, and find new ways to satisfy loyal customers.

Lucky us.

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