E-Malt.com News article: USA, PA: Appalachian Brewing Company embarks on its biggest expansion project

More craft soda and beer will be coming your way in Appalachian Brewing Company's biggest expansion in its 18-year history, thanks in part to a $1.762 million loan arranged through Harrisburg Regional Chamber & CREDC, pennlive.com reported on December 29.

In a $4.3 million project, Appalachian is leveraging the loan plus its equity and financing through Centric Bank to establish its new brewpub and production facility on the Carlisle Pike in Silver Spring Township, and add more than $1 million in new equipment.

Craft soda production – a growing offshoot of the brewing industry - is moving from Appalachian's 50 N. Cameron St. facility to the new brewpub that opened in June in the former Sutliff Hummer building at 6462 Carlisle Pike.

Also, production of Appalachian's monthly specialty beers will move to this new site. Both changes will free up space at Cameron Street to double the current line of four flagship beers, said Jack Sproch, Appalachian CEO.

Sproch estimates the expansion will "probably quadruple" the craft soda production, and increase Appalachian's beer production by 25-30 percent.

About 45 new jobs have been created at the Carlisle Pike brewpub and craft soda manufacturing facility, which is expected to rise to 50 or more over time, Sproch said.

"This is part of an expansion we foresaw long ago, as we've begun to outgrow our Harrisburg manufacturing facility," Sproch said.

Part of that has been driven by growth in the craft soda market. "It fits in with organic foods, with people caring more about what they eat," Sproch said.

Appalachian's craft sodas are gluten-free, have no caffeine, and natural sweeteners instead of high-fructose corn syrup or artificial sweeteners.

Four craft soda flavors are now bottled: diet and regular root beer, ginger beer and white birch beer. Citra is another flavor offered in brewpubs.

In addition to producing craft soda in bottles for the retail market and in kegs for restaurants, Appalachian will begin producing them in "bag in a box" form. The soda syrup will be bagged, which will enable it to be sold for fountain mixing.

The Cameron Street site will focus on flagship beer production. That includes current flagship brews Water Gap Wheat Ale, "Jolly Scot" Scottish Ale, Mountain Lager and Hoppy Trails IPA. They will be joined in January-February by:

Aero-Head Bock
Outta Focus Double IPA
Trail Blaze Maple Brown Ale (a redesigned version)
Chocolate Avenue Stout

In addition, 11 specialty beers will be brewed in 2015:

February 6: Zoigl Star Lager
March 6: Celtic Knot Irish Red Ale
April 3: Anniversary Maibock
May 1: Mad Cameron Belgian Wit
June 5: Hinterland Hefe Weizen
July 3: Volks Weizenbock
August 7: Greenaway Farm Fresh Hop Pale Ale (brewed with Pennsylvania-grown hops)
September 4: Rutty Buck Pumpkin Ale
October 2: Batch No. 666 Halloween Beer
November 6: Grinnin' Grizzly Holiday Spiced Ale
December 4: Pennypacker Porter

Expansion of craft soda distribution is anticipated, Sproch said, throughout the mid-Atlantic region. That's beyond the distribution of Appalachian's beer, which is mainly Pennsylvania, Maryland and Washington, DC.

In the future, Sproch said the company will continue to look for opportunities to expand the Cameron Street facility onto adjacent land in Harrisburg. Appalachian tried to acquire these city-owned properties in the past, but Sproch said the deals didn't come to fruition, in part because the cost of demolishing buildings on the site make the project economically unfeasible.

"We still hope to acquire that land," Sproch said, if issues can be resolved.

Appalachian began operating in 1997 as a brewery manufacturing operation with an on-site brewpub restaurant on Cameron Street, and has grown to seven locations.

One of two brewpubs in Gettysburg is closing after Jan. 1, but another is expected to open there, as well as in Hershey. Other locations are in Lititz and Collegeville.

Sproch credits the Harrisburg Chamber and CREDC in assisting Appalachian in acquiring the necessary financing for this project, along with Centric Bank. While state and Small Business Administration funding is available, Sproch said businesses don't always have the time or expertise to navigate the process to obtain it.


07 January, 2015