E-Malt.com News article: USA, CO & NC: New Belgium Brewing to open a brewery in Asheville

New Belgium Brewing Co. announced it will open a new $175 mln brewery in Asheville N.C. over the next seven years, The Coloradoan reported on April, 5.

The decision by the Fort Collins craft brewery, known for such beers as Fat Tire and Sunshine Wheat, follows a nearly year long search for a second brewery location to expand its production along the East Coast.

The new brewery is projected to start production of beer in the first quarter of 2015 and be completed by 2020. The brewery reportedly will produce 400,000 barrels a year. It will create an additional 154 jobs to the Fort Collins-based company.

That’s compared to the Fort Collins brewery, which produces more than 661,000 barrels of beer annually. The company employs 300 workers locally and 425 throughout the country.

After several years of searching we are incredibly excited to have landed in Asheville," said Kim Jordan, CEO and co-founder of New Belgium in a prepared statement. "From the deep sense of community to the rich natural environment and the opportunity to revitalize a brownfield site near a vibrant downtown, Asheville has everything we’ve been looking for in a location for our second brewery."

The project was made possible in part by a $1,000,000 grant from the One North Carolina Fund. The state grant will be based on the company creating 130 jobs and making $115 mln investment over the five years of the project, according to the North Carolina Governor’s office.

Ground won’t be broken until early next year, but the start of a massive renovation could support 1,252 jobs in construction over the next seven years, pumping $41 mln into the community, the chamber estimates. Then add in the additional 260 jobs for industry vendors and suppliers, who could generate an additional $18.3 mln annually in local paychecks.

The city’s central location on the East Coast provides an easy jumping off point for distribution along the eastern seaboard that New Belgium is eyeing for expansion. The location, combined with access to a high-quality water supply and a savvy beer drinking population, played into the decision.

According to The Asheville Brewers Alliance, formed to promote Asheville produced beers, the city loves craft beer and has been named "Beer City USA!" by National Beer Examiner and President of the Brewers Association, Charlie Papazian’s poll. Asheville currently has nine local breweries, including Asheville Brewing Company.

New Belgium isn’t the first brewer to peg Asheville for a new brewery this year.

In January, Sierra Nevada Brewing Co. selected Mills River, 12 miles south of Asheville, for an East Coast brewery.

Asheville Brewers Alliance President Tim Schaller and owner of Wedge Brewing Co. said that the brewing industry in Asheville generates 280 jobs and $2.5 mln for the community with an additional $3.5 mln in tax revenue.

Schaller said New Belgium will be an ideal addition to the brew-centric city.

“It is a good timing for us. We’ll get a lot more attention now. It will definitely help with beer tours and culture,” Schaller said. “I’m happy to have the sour beers.”

Schaller said New Belgium’s planned brewery will be about a half a mile down the road and he expects to gain business for their presence.

Schaller noted that Wedge Brewing produces 15,000 barrels annually compared to the 400,000 barrels New Belgium is expected to produce.

“For all of us in the alliance, we don’t feel threatened for us particularly,” Schaller said. “We are not going to go away.”

Oscar Wong, founder of Highland Brewing, the original and largest craft brewery in Asheville said he is conflicted about New Belgium possibly locating in his community.

Wong founded his brewery in 1994 and has watched as nine more breweries opened up shop in the community of 75,000 people. Today, Highland brews 23,000 barrels a year compared to the 400,000 barrels New Belgium is expected to brew.

Originally Wong said he didn’t want New Belgium to come to Asheville, but as a member of the Asheville Chamber of Commerce Wong said he recognizes the economic impact they will have. Wong said the brewery will put some pressure on Highland Brewing, but he said they will soldier on.

“Over time New Belgium’s presence will open the market and category and we will come out OK,” he said. “But in the short term they are going to put some pressure on us.”

In 2011, New Belgium expanded its distribution into Maryland, Virginia and the District of Columbia, making New Belgium's beers available in 28 states plus the District of Columbia.

New Belgium has grown by leaps and bounds since it started with an estimated 60 cases a week in 1991. The brewery added its second brewhouse in 2002 and expanded its keg line in 2010. Cellaring expansion for the company has been ongoing.

Sierra Nevada’s decision four months earlier had no impact on New Belgium Brewing Co.’s decision.

"That's not a deal maker or deal breaker," Simpson said. "It's a great location. What attracted us also brought Sierra Nevada there as well."

California-based Sierra Nevada plans for a production facility, as well as a proposed restaurant and gift shop in Asheville. The East Coast brewery will start with a capacity of about 300,000 barrels, with room to grow.

The brewery began the search for a new location several years ago and looked at hundreds of locations before settling on Asheville, according to a news release.

"We are thrilled to have found an ideal location in western North Carolina for our second brewery," says Ken Grossman, founder of Sierra Nevada in a prepared statement. "The beer culture, water quality and quality of life are excellent. We feel lucky to be a part of this community."


11 April, 2012