San Jose has few actual breweries, but I've noticed that there are at least as many "Ghost" breweries here. These places have bottles (and often unique tap handles), but no such brewery or taproom actually exists. Camino, Geartooth, Alehouse, Bellpenny, New World Ales, Tilt...then there's Umunhum although at least they market themselves differently (as a co-op). I know that these places are contract brewed, most likely at Hermitage hence technically being from San Jose (although Camino considers San Jose home but contact brews at EJ Phair in Concord IIRC)...but it just seems kind of odd to market oneself as a brewery without having an actual brewery, and it also seems odd that this practice is so widespread in San Jose. Is it this common in other cities?
Many craft whiskey uses the same business model http://www.thedailybeast.com/your-craft-whiskey-is-probably-from-a-factory-distillery-in-indiana A local winery I use to frequent had only 5 acres of grapes. He bought wine in bulk and mixed it. In the end if they are honest about it I don't have a problem. It's when they attempt to deceive you, like some of those Budweiser/Miller craft brews do. Or worse Walmart craft beer. Is anything at Walmart actually "crafted?"
For the most part all these breweries listed above and the local San Jose breweries suck except for Santa Clara Valley Brewing.
I can only comment on Camino (haven't tried the others) and have to disagree with you. Camino has a solid offering (tried three of their beers - stout, pilsner, and IPA) and I believe is planning to open a brewery by next year. In general, I agree the South Bay is a land of average beer waiting for a truly outstanding brewery to pop up.
Camino's not bad. Tried their Cafe Con Leche Stout and James Star Rye DIPA...solid but not mind-blowing. The founders have been visible at events, and I see they have an actual address. Sadly, the best way to figure out when a brewery is going to open in SJ is to take their original estimated opening date and add 2-3 years to it. This has made me stop anticipating any "opening" breweries until I see them. Hapa was such an anomaly. They completely stayed under the radar until right before they actually opened.
I hope that you aren't referring to the Firehouse in downtown Sunnyvale. It has never been good. My dream/hope is that someone buy's out Fireshouse and "real" brewery move in. Unfortunately, there isn't a lot of space. So, long term, it's probably not a good spot except for a micro brewery.
Same dude that brews for Santa Clara Valley used to brew for Firehouse, and won GABF medals while there. As for having a "real" brewery move into that space, I have the same dream for Campbell Brewing Company, but I think we're both fucked because both spots make a profit making shit beer
I can only imagine what rent would be in SJ for floorspace required to set a brewery up. From the outside looking in I think I know why there are so many 'ghost' breweries in SJ.
Most of the breweries are in an industrial area of San Jose near the fairgrounds. I don't see rent drastically more than breweries located in San Franciso, San Mateo and Berkeley that are in much nicer areas.