Breweries Opening/Closing in Minnesota 2018

I'm dubious about this one. "I'll believe it when I see it" has to be my mantra for any Fyten BIP. The guy told me in October 2015 that he planned to open St. Croix by Thanksgiving.

70,000 barrels per year in a decade does seem ambitious in this crowded market that already is seeing Summit contracting. That's about the production level of Surly now, and Lift Bridge has nowhere near Surly's level of cachet locally, regionally, or nationally. Then again, if Lift Bridge were to get a big marketing and distribution push from some experienced, deep-pocketed equity holders, perhaps that is a realistic goal. Just sayin'...

Lift Bridge had been shopping this plan around the east metro looking for the best deal from a municipality. I know they were hoping for a bidding war. I can't tell if that ever materialized but I suspect not.

I'd love to know if Lift Bridge is planning to keep the current brewery operating, a la Surly Brooklyn Center. Unless I glossed over it, the article doesn't say.

 

According to wikipedia, Surly's production was 21,000 barrels in 2012, 28,000 barrels in 2013,and 47,757 barrels in 2015, which is ~30% CAGR over the four years 2012 - 2015.

If their production in 2017 was ~70,000, Surly's growth over the two years has slowed to ~22%.

(These are rough calculations; a real financial analysis may vary! )

And, my suspicion is that growth from 2016 to 2017 was probably less than the growth from 2015 to 2016.

 

I couldn't find either the 2016 or 2017 numbers, but I'd confidently take the "over" for Surly at 70,000 barrels for 2017. Surly did 62,000 barrels in 2015 in their first full year in the new brewery, and Surly has expanded capacity since then. I was just trying to say that 70,000 barrels is roughly at the level that Surly is doing now. Surly is the only close comparison point in the state.

 

62,000 in 2015? Well, that's what I get for believing wikepedia!

Actually, I went back and checked wikepedia's source: http://www.startribune.com/thirst-for-craft-beer-showing-little-weakness/381849511/#1

It says 47,757 barrels in 2015.

 

Awfully optimistic for a brewery that still has over 3,000 bottles of what is arguably their biggest gem of a beer for sale still.

 

My source. I can't vouch for its accuracy.

 

Seems like someone is off by a year. Perhaps the Strib meant 2014.

 

I think that $3.16 Eventbrite fee pissed alot of people off (me included). If you go into the taproom, they'll let you claim bottles with the fee.

 

Surly production reported to Brewers Assoc:
2012 - 20,858 barrels
2013 - 28.971
2014 - 38,906
2015 - 62,432
2016 - 76,550

 

@islay,

I just got off the telephone with Brenda at Turning Waters.

As you probbaly recall, I have been following the Minnesota BIP for some time. Well, I have been following their plan for six years, now, and understand that the brewery is a serious, long-term endeavor. Frankly, they have done a great deal of legwork in order to make their bed, breakfast, and brewery concept a reality -- at least from a legal standpoint, and at the local and state level.

Presently they are open as a bed and breakfast, and have been open in that capacity for close to five years, now -- after having purchased the business from another set of entrepreneurs.

Their bed and breakfast is open Thursday through Sunday, and they routinely host beer and wine dinners. -- especially Craft Beer dinners They DO have a full bar with taplines focused on Craft Beer, but they are presently licensed for bar service, only. In other words, they are not legally able to offer Growler fills* at the present even though they *DO* have home-brewed beer available on-site for sampling.

Some of you reading this will understand some of the intricacies involved in opening a small brewery, and these have been made more complex with their existing, hoteliers license. Funding for various expansions has also been a driving concern for them throughout the course of the last six years.

For now, it's a beer/wine bar with liquor, open on the weekends, which also happens to have a full bar. And it's a B+B. AND they have homebrew!

Brenda estimates that the opening of the brewery itself will reach the final stage of approval in time for the late Spring / early Summer season (but follow the patented islay "double it" rule, and it could be late summer, instead).

For the technical details, you'll have to visit the brewery. But I know that the current system is "Nano" in scale, and they are scaling-up to a slightly larger Nano system for future expansion.

Note: No plans to package for the market, aside from Crowlers / Growlers.

In the future they are considering a Kickstarter or similar, but they do have some long-term investors interested in helping their (near future) expansion.

I think that about covers it.

*Note: Right now, they are a home-brewery, only, and therefore can't sell their beer or fill growlers. But they are offering samples to guests and people stating over the weekend. They also have an existing mug club for long-time backers, and they will be expanding this program in the future.

 

Trust me they have been up around 30% for the last few years, it's not overly optimistic when they have easy drinking beers like Farm Girl and Mango Blonde.

 

No, they plan on selling off almost all their brewery equipment and their current building. Although, they did look around the East metro I am under the impression the brewery will remain in Stillwater, which was their goal all along. While 70,000 barrels is a lot they have the ability to grow into it kind of like what Fulton did by purchasing their 40,000 square foot facility and likely Indeed will follow. Moreover, NEVER believe anything Tod Fyten says, in my opinion everything he says needs to be taken with a grain of salt. For example, in 1996/1997 he said, "I will have a St. Paul brewery within four years." Well it's been almost 20 years and he still hasn't built it.

 

I agree it's very possible for LB to grow quickly in a new facility. Mango Blonde was a big hit last summer - LB had trouble keeping up with demand as the cans sold out at many places before the next canning could take place. I'm sure LB will attempt to greatly expand production of Mango Blonde.

 

Miller never made a dime off "easy drinking beers."

 

I think Tod's purchase of NG surprised a lot of people. Looks like he got his brewery just in a different city. It will be interesting to see how the Fyten collective ends up.

 

Wish they weren't asking taxpayers to cough up $1MM, as the article states.

 

2017 saw more Minnesota breweries open than ever before — but with a different focus

https://www.minnpost.com/business/2...minnesota-breweries-open-ever-different-focus

 

A new, unnamed BIP in Rochester:

"Adam Fredericksen, former head brewer at Grand Rounds, said Tuesday he has plans to open what could be Rochester's sixth brewery after signing a lease to rent a building at 1929 Second St. SW. The building sits next to Tyrol Ski & Sports and will be renovated to include a tap room and brewery. The goal, Fredericksen said, is to open in the later part of the year."

This is a separate plan from the previously announced Little Thistle.

 

Rochester badly needs more taprooms.
Also, now more than ever we need a MagLev beer shuttle between Nordeast and Rochester.

He's not the only beer baron in Minnesota for whom that is true.

But speaking of opinions, it's time for the Minnesota Beer Closing of the Week:
Opinion Brewing in Newport has closed following a range of issues which went unresolved.

 

Figured that would happen sooner or later. Condemned by City of Newport. Having been in there, I'd say that's a good thing.