Brewery Updates in Minnesota (2019)

A new-to-me BIP: Rail Werks Brewing Depot in Columbia Heights. I can't tell if it will be a brewery or a brewpub, but it does plan to have a restaurant component.

Copper Trail Brewery in Alexandria is moving and expanding.

Thesis Beer Project in Rochester is planning a July opening.

 

Looks like a solid 1997ish lineup for a brew pub. Which will probably be just about right in Baudette in 2019.

 

Well, it's actually in Warroad, but I know what you're saying.

 

Linked is an article on the newly opened Lake of the Woods Brewing Company in Warroad. I'd be interested in knowing more about the relationship among this and the Ontario and upcoming Manitoba breweries of the same name and under the same or at least related ownership; are they collectively a single business with multiple locations, or is the link among them more complicated? @LOWFisherman

 

I’m not sure about the exact relationship with the Winnipeg brewery, if its in essence a second location of the kenora brewery or if it’s a partnership, but the Minnesota location is a partnership with local MN owners with the local owners holding a majority stake in the Minnesota business.

I don’t know anything deeper than that at this time.

 

The Growler covers Block North Brew Pub, which recently opened in Aitkin.

Oldenberg Brewing Company, in planning in Belle Plaine, is implying a June 12 opening on its Facebook page (posted on June 5):

https://www.facebook.com/video.php?v=371625777033263

Foremost Brewing Cooperative, in planning in Owatonna, has announced its building location.

 

Same here. What suddenly caused it? They had just hired a new head brewer as well. I am guessing he had no idea they were going to close after just starting...?

 

From Lupulin's FB post:

EXCITING NEWS!

Matt & Jeff wanted to share some big news with our loyal #LupulinBrewing fans/family -

There will now be TWO Lupulin Brewing breweries and taprooms!!!

That's right...not one...but TWO full service breweries and taprooms to enjoy our amazing brews!

Lupulin Brewing has agreed to acquire Hydra Beer Company of Sioux Falls, SD and will be converting their brewery and taproom into another Lupulin Brewing brewery and taproom over the coming months.

NO WORRIES for the fans of our BIG LAKE location...nothing will change here at home!

So, stay tuned to our social media accounts and be sure to subscribe to our newsletter at the link below for announcements and special offers (scroll to the bottom of the page to subscribe):

https://www.lupulinbrewing.com/

 

Some good coverage by The Growler. Recall that Indeed is soon to open a second taproom in Milwaukee. Perhaps we're overdue for our oh-so-wise legislators generously to permit multiple taprooms per brewery within the state of Minnesota.

 

What is the reason they do not allow that already?

 

there might be a down side to this, It might give established/financially stronger breweries an advantage. More competition for the dollar/customers. It might result in startups loosing out or don't even startup. Less diversity for the customer in the long run.

 

That and full service liquor bar, package to go sales of brew ,growler sales regardless of barrels produced,and food service if wanted by the brewer.

 

It was less the location and high rent, and more due to disagreements among the three four eyes.
Hopefully everyone there can enjoy the memories they created together (including the new brewer), part on good terms and find somewhere else to apply their talents. I really enjoyed their offerings.

 

Remember when 1 of the 3 owners left before the brewery even opened to "pursue other blah, blah, blah"? Not a good start just from that.

Only been there once, but enjoyed the beers I had. Purchased crowlers at the store a few times too.

 

[QUOTE="cheeseheadinMinneapolis, post: 6523781, member: 1212278") It might give established/financially stronger breweries an advantage.
So Gov't should dictate capitalism? I get it, you're saying a business that does well should be controlled by Gov't regulations to limit their success! Sounds like AOC BS chatter.

 

OK I see your point.....inbev should own everything too
look what the big boys did in the past.
pushed the little guys out
brewery bullin
one positive thing about breweries having many taprooms is they will run the dive bars outta business

 

This has nothing to do with 12-Eyes directly (I have no idea about anything to do with them), but the economics of the industry are not good.

In a high percentage of operations, there is little to no money left over. Tap Rooms are not the cash creators so many think they are. and production breweries take tremendous capital to operate and grow. In essence, there is almost nothing left over as an economic incentive (return on your investment). It’s not about “can it stay afloat”, it’s about “is this worth it”. Investors want to be able to recoup their money in 5-10 years, banks to have very low risk investments. When you put economic and financial analysis lenses on real numbers, it’s somber.

Owner/operators often don’t take salaries (much higher percentage than many realize) or get very sick of working 70 hours a week making $40k with no benefits. In essence, they give up.

Businesses can’t be sold because there is no value. It doesn’t matter how much revenue, value is based on a multiple of how much cash is left over. Usually 6 times the amount. When most breweries have almost nothing left over, owners can not sell. They are trapped.

That is what’s happening. It’s not well known, but a significant amount of breweries have seen “key man” changes over the last 18 months.

And with overall market slowing WAY down, I’d start keeping an eye on breweries who have recently done, or are doing, very large investments in capacity. Unless the laws of 400 years of economics have changed only for the beer industry, some bigger closings are inevitable.

 

Multiple taprooms long have been legal in many other states, including California, Oregon, and Colorado, which aren't exactly hurting when it comes to an abundance of small breweries. I think this is an overblown worry, even without getting into principles of capitalism and consumer choice.