E-Malt.com News article: USA, MI: Founders Brewing receives grant for its expansion

The Right Place, Inc., in collaboration with The Michigan Economic Development Corporation (MEDC) and The City of Grand Rapids, announced the approval of a $2 mln Michigan Business Development Program performance-based grant with repayment terms for Grand Rapids-based Founders Brewing Company, beerpulse.com reported on December, 20.

The grant will enable the company to move forward on a $26 mln expansion.

“Founders Brewing Co. is a shining star in Grand Rapids, not only from a consumer standpoint but also with regard to economic development,” said Susan Jackson, Senior Business Development Manager, The Right Place, Inc. “This expansion confirms that Grand Rapids continues to find a niche in the craft brewing industry. We are pleased to help Founders Brewing Co. grow in Grand Rapids.”

“The craft beer market continues to grow,” said Mike Stevens, President and CEO, Founders Brewing Co., “and demand for Founders beers has caused our growth to outpace average industry growth. Meeting this demand requires a significant upfront investment in additional facility area and, more importantly, in additional equipment. We are grateful for this incentive assistance, which will allow us to keep up with demand and to be in a position to hire more people to help us grow the brewery.”

In just five years since moving to its Grandville Avenue location, Founders Brewing Co. has increased production and taproom sales to a point where demand requires this expansion.

Demand for the expanded facility will be supported by Founders Brewing Co.’s existing network of 62 distributors across 23 states and new distributors in new markets.

Over $22 mln of the $26 mln expansion will be used for purchase of new brewing and fermenting vessels and other equipment, while nearly $4 mln will be spent on expanding the brewing facility. Once complete, the brewery will have capacity to produce approximately 300,000 barrels of beer annually, or four times its current capacity.

The expansion will occur in phases, the first of which consists of expanding the brewery’s fermentation hall.

“Founders Brewing Co. is a leader in Michigan’s growing microbrew industry, and has been instrumental in helping Grand Rapids earn the title of ‘Beer City USA’. Founders is to be congratulated on this expansion and we thank them for their continuing commitment to Michigan,” said MEDC President and CEO Michael A. Finney. “We should also thank both The Right Place and the City of Grand Rapids for helping to make this expansion to take place. This collaboration is a great example of what we can accomplish when working together.”

The City of Grand Rapids has also recently offered a 12-year property tax abatement valued at approximately $300,000 for the project.


21 December, 2012