E-Malt.com News article: USA, WI: Construction of new Capital Brewery facility in Sauk City once again on hold

The construction of an $11 million brewing facility in Sauk City is, once again, on hold for Capital Brewery, Wisconsin State Journal reported on January 27.

The Middleton company announced on January 26 that Brian Destree, director of operations for the brewery and the person in charge of the expansion project, will leave at the end of the week for a position with MillerCoors. Scott Weiner, Capital Brewery president and majority shareholder, said Destree’s departure means construction will be delayed for at least three to six months but that the company still planned to build in the Sauk County village.

Since announcing the project in June 2013, the brewery has seen the departure of general manager Tom Stitgen and faced a lawsuit from former employees and shareholders that was eventually dismissed. In December, the company, one of the state’s oldest craft breweries, sent letters to shareholders in an attempt to raise $720,000 as part of a $7.2 million financing package from the Small Business Administration.

“We need to re-evaluate everything unfortunately because this puts a slowdown on fundraising and everything else,” Weiner said. “There’s a lot of moving parts here. Everything about (the project) has just taken two or three times longer than we planned.”

When the brewery announced the expansion, it said brewing would begin in Sauk City in spring 2014. Ground has not been broken on the nine-acre property, which was sold to the brewery by the village for $1. Village President James Anderson said he understands why the company would delay the project after losing Destree but thinks Capital also set a timeline that was too aggressive from the outset. When the project was announced, Capital still needed village approvals and had not secured financing.

“It really wasn’t realistic,” Anderson said. “I think Capital has been up front and honest with us the whole time. I believe they are coming. It’s just a matter of when, not if.”

The new facility would be designed to brew more than 100,000 barrels a year, house a tasting room and company offices, and include a bottling and canning line, something that is currently done at Stevens Point Brewery. Capital’s Middleton facility would be used for small-batch beers and events at its outdoor beer garden.

Destree was hired in 2012 as the brewery’s production manager but was quickly elevated to brewmaster after Kirby Nelson left to start Wisconsin Brewing Co. in Verona with Carl Nolen, former president of Capital. Ashly Kinart was named in October as brewmaster and has worked at the brewery since 2012.



28 January, 2015