Fate Brewing Closing

Discussion in 'Pacific' started by Powell014, May 21, 2019.

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  1. Powell014

    Powell014 Devotee (317) Oct 30, 2014 Colorado

    http://fatebrewingcompany.com/

    Another case of a brewery spending too much aggressively expanding and closing under that crippling debt. Although they managed to put a lot of the blame on a local free newspaper on the way out:

    I'll miss them (and their Coffee IPA). Hopefully someone else can move into that really nice facility.
     
  2. Domingo

    Domingo Grand Pooh-Bah (4,252) Apr 23, 2005 Colorado
    Pooh-Bah

    Feels like this has been coming for a while. Hell, I think I assumed it already happened.
    2-3 years ago they seemed to have their ducks in a row. They had a big GABF booth with a long line, their watermelon beer was picking up steam, people were filling the place up, and they had a good brewer.
    There might be something in the water in Boulder, though. While we've seen lots of other CO cities thrive, their beer scene has regressed. I really hope nothing ever happens to Backcountry.
     
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  3. Knobs303

    Knobs303 Initiate (0) Nov 8, 2013 Colorado

    Pretty sure this isn’t a Boulder issue. Fate was a 1 hit wonder who tried to parley that into a Brewpub in Boulder, supposedly trying to take over Avery’s former location in Avery Alley, a spot in Lafayette and a “proposed” location in Louisville. This may be way to simplistic, but Fate was a, sorry to say, below average brewery that tried to grow way too fast. I have no ill will towards Fate, but they had a niché Watermelon Kolsch and a semi-unique Coffee IPA, yet little else. This type of growth is/was Unsustainable in Boulder, Denver, or anywhere else in Colorado. The best thing that could happen to their spot on Arapahoe is for José Maldoon’s to Reopen.
     
    #3 Knobs303, May 22, 2019
    Last edited: May 22, 2019
  4. Knobs303

    Knobs303 Initiate (0) Nov 8, 2013 Colorado

  5. denver10

    denver10 Grand Pooh-Bah (4,155) Nov 17, 2010 New Mexico
    Pooh-Bah

    And I guess not so coincedentally the AZ brewery has returned to his original name of Fate Brewing, instead of the adopted McFate Brewing.
     
  6. Domingo

    Domingo Grand Pooh-Bah (4,252) Apr 23, 2005 Colorado
    Pooh-Bah

    I don't think what happened to Fate was Boulder's fault...but you have Walnut, Vindication, Powder Keg, and even Avery's situation. Those are just the recent ones. It's still big news when places close/falter in CO and Boulder has more than anyone else in spite of being smaller and not having many. Something is awry over there.
     
  7. spoony

    spoony Pooh-Bah (2,591) Aug 1, 2012 Colorado
    Pooh-Bah

    Shikes has a good recount of the issues that plagued Fate:

    https://www.westword.com/restaurant...ng-will-close-at-the-end-of-may-2019-11351606

    Sounds like Fate ran into city issues taking over the old Avery alley space and made a few other questionable expansion/strategic moves en route to folding...not sure how the Daily Camera is to blame but I guess you yell #fakenews for anything and everything these days.
     
  8. Powell014

    Powell014 Devotee (317) Oct 30, 2014 Colorado

    Yeah the shot at Daily Camera is extremely petty. Sure we are currently in Chapter 11 and had a facility shut down cause we didn't pay taxes and also bought a multi-million dollar building that wasn't licensed for the thing we wanted it for, but this local free newspaper is making our employees leave!!!
     
  9. Mebuzzard

    Mebuzzard Grand Pooh-Bah (4,290) May 19, 2005 Colorado
    Pooh-Bah Trader

    I wonder what this negative press coverage actually said, who reads it, and why it affected the brewery so much.

    Hopefully, though, the lesson here is to double, triple check your expansion visions. For a brewery to move from local to regional is quite a large step, which requires a significant up-front costs (and not just in $$). It's more than just changing biz models, it's changing the business
     
  10. Knobs303

    Knobs303 Initiate (0) Nov 8, 2013 Colorado

    Vindication was in Gunnarrel & Powder Keg was in Niwot. Oddly enough, I know both Eric from Vindication and Eric from Powder Keg and I’m sure each one have far different views on way each endeavor did not succeed. There are so many factors. Recreational weed, local made Spirits, Saturation of the Market are just to name a few.
     
  11. Todd

    Todd Founder (13,518) Aug 23, 1996 Finland
    STAFF Mod Team Society Pooh-Bah

     
  12. Mebuzzard

    Mebuzzard Grand Pooh-Bah (4,290) May 19, 2005 Colorado
    Pooh-Bah Trader

    Maybe they're saying the negativity cost them $125k?? If so, that paper has some robust circulation.
     
  13. southdenverhoo

    southdenverhoo Pooh-Bah (1,567) Aug 13, 2004 Colorado
    Pooh-Bah

    I’m a little sadder about the other brewery in Shikes’ story, 38 State. I was in there yesterday and had a good pale ale and a better than good Belgian IPA. The stout is excellent IMO, though I didn’t have one yesterday.

    No Juicy/Hazy IPA though.

    There has been a “Brewery For Sale” ad for quite awhile which seems to fit 38 State, for a very low price considering the brewhouse & cellar and buildout of the taproom. Maybe the location wasn’t ideal, I don’t know.

    I’ll bet somebody picks that one up pretty quickly, though.
     
  14. considerbeer

    considerbeer Devotee (303) Dec 15, 2016 California

    Boulder is doing fine on breweries. Fate’s closure will leave 19 by my count (not including places with multiple locations like Upslope).

    Boulder actually had the most breweries per capita in the United States not too long ago (maybe 2 years ago?), including a good chunk of Colorado’s old stalwarts (Boulder Beer, Avery, Mountain Sun, Twisted Pine).

    I’m sure the lease prices are insane, though. That has to be an underlying stressor for all the closures, even though I think they each had their own unique circumstances. Not that anyone should be opening a brewery in Colorado with eyes on distribution right now, but I certainly wouldn’t do it in Boulder.

    In terms of special can/bottle releases, I guess there are not really any hyped taprooms in Boulder, either.
     
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  15. Knobs303

    Knobs303 Initiate (0) Nov 8, 2013 Colorado

    Very well said. I think that Upslope will soon have 3 locations within the city limits of Boulder once the new S’Park building opens at 34th & Valmont. Talk about doing it right, Upslope has essentially taken the exact opposite path that Fate went down. It seems that Upslope has steadily grown and each expansion has been well timed and financially beneficial. Well Done Upslope.
     
  16. Schmittymack

    Schmittymack Pooh-Bah (1,864) Sep 3, 2008 Colorado
    Pooh-Bah Trader

    Several reasons Vindication ended up closing according to what Eric told me and what former employees told me. Reasons ranged from the street construction that was going to obliterate traffic to their location (bad location IMO), no real advertising (word of mouth ain't gonna cut it these days) are just two reasons.
     
  17. Knobs303

    Knobs303 Initiate (0) Nov 8, 2013 Colorado

    Exactly. I’ve also heard a few different reasons. Also, from Marty as well.To be honest, I never liked their location. It just always seemed too out of the way and it’s not like Gunbarrel is a big place. It’s a shame, because he and Marty are great guys. Towards the end, it almost seemed like Eric was just burnt out and ready for something different. I hope he is doing well and found a new passion to focus his energy.
     
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  18. Schmittymack

    Schmittymack Pooh-Bah (1,864) Sep 3, 2008 Colorado
    Pooh-Bah Trader

    Yep. Glad I still have some Freedom and Bolder Bold left.
     
  19. Powell014

    Powell014 Devotee (317) Oct 30, 2014 Colorado

    Yeah I think that's Boulder's brewery 'problem' is that they haven't had anyone new making killer stuff in what a dozen years? The Boulder scene is: Two kings (Upslope and Avery which if we're being real is no longer in Boulder) grandfathered in (Mountain/Southern Sun & Boulder Beer) then just a dozen totally forgettable smaller places. Also anytime Boulder Beer goes out of it's late 90's comfort zone the results are disastrous.
     
  20. bfields4

    bfields4 Savant (1,171) Dec 11, 2007 Colorado

    I would assume it's hard to run a business that typically thrives based on gross margin when your fixed cost of a space/lease is as astronomical as I'm sure Boulder is. You've got to either have a tap room that just crushes or I guess try to distribute? It's hard to blame them for trying?

    Also, not surprising that Boulder has a distinctly different beer scene then Denver/Fort Collins with that in mind (not making a judgement either way).
     
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