USA, CO: Boulder Beer Co. downsizing, discontinuing wider distribution due to increased competition
Faced with increased competition, Boulder Beer Co. announced on October 10 it is downsizing and it plans to discontinue widespread distribution, the Colorado Daily reported.
The company, which recently celebrated its 40th anniversary and was Colorado’s first craft brewery, will continue to operate as a brewpub at 2880 Wilderness Place. The pub soon will be the only place Boulder Beer will be available, as distribution across 27 states will wind down by the end of the year, officials said.
“The company did not make this decision lightly, and is excited for the opportunity to continue the Boulder Beer brand onsite with more room for rotating experimental and specialty brews,” a news release stated.
The downsizing means the loss of 21 jobs from about 50 over the next two months, particularly in the brewing and packaging department, Marketing Director Tess McFadden said.
“It’s just a perfect storm, not one specific thing went wrong,” she said. “Dialing it back to the brewpub model just makes more financial sense for us right now. “
The company plans to sell its canning and bottling equipment, and bring in a smaller brew system for the pub, she said.
The brewery will continue to offer handcrafted small batch beer to the community, Gina Day, the brewery’s owner, said in a statement. “Times have changed and change is hard, but I’m ready to put the ‘fun’ back in beer,” Day said.
The brewery produced 16,305 barrels in 2018. Next year, production would be limited to about 1,000 barrels, McFadden said.
The 396 breweries in Colorado collectively produce 1,522,834 barrels of craft beer annually, according to Boulder-based Brewers Association.
Industry trade publication Brewbound reported in June, citing data from Brewers Association, “more than half of the top 50 Brewers Association-defined craft brewing companies didn’t grow in 2018.” It’s the third consecutive year that at least half of the top 50 regional craft brewing companies — those producing between 15,000 and six million barrels of beer a year — didn’t grow, the report stated.
Brewers Association’s national beer sales and production data suggest while total U.S. beer volume sales were down 1% in 2018, craft brewer sales continued to grow at a rate of 4% by volume, reaching 13.2% of the U.S. beer market by volume.
“Retail dollar sales of craft increased 7%, up to $27.6 billion, and now account for more than 24% of the $114.2 billion U.S. beer market,” according to association data.
The brewery was founded in 1979 by David Hummer and Randolph “Stick” Ware, both University of Colorado Boulder physics professors, and engineer Al Nelson. Through the years it grew from its first home in a small shed on a northeast Boulder farm to its current taproom on Wilderness Place. It also has found ways to give back to the community, including by hosting a St. Patrick’s Day dog parade that benefited the Humane Society of Boulder Valley, and creating a Pride month-themed Gender Fluid beer and donating a portion of its profits to the Human Rights Campaign.
13 October, 2019
