USA, AR: Fossil Cove Brewery increases production capacity

Fossil Cove Brewery Co. of Fayetteville, AR has added new gear to brew more beer, Arkansas Online reported.

The beer maker recently installed two more 20-barrel fermentors, a move that will increase Fossil Cove's output potential by 50 percent. With the new equipment, the company will be able to produce about 2,500 barrels of beer a year. In beer terminology, a barrel holds 31 gallons of brew.

"It sounds like a lot, but we're still a small brewery," said Ben Mills, head brewer and owner of Fossil Cove.

While Fossil Cove may be small, it has seen rapid growth. The brewery opened in the summer of 2012 and had a potential output of only 300 barrels a year. Since then, there have been two other capacity improvements and additions. As a result, the brewery went from a one-man operation to a staff of 10. Another five workers are expected to be added by the end of 2016.

"We distribute ourselves so the more beer we make, the more employees we need," Mills said.

He said with the expanded capacity he can better serve demand from restaurants, bars and liquor stores in Washington County and allow for some expansion into Benton County just to the north. It also allows the company to add an additional canned beer - its IPA No. 3. Fossil Cove already cans its Paleo Ale and La Brea Brown.

Arkansas ranks 39th in the United States for the number of craft breweries per 100,000 adults over 21, according to the Brewers Association, a trade group. The state had 19 craft breweries in 2014 and brewers produced a total of 14,641 barrels of craft beer that year, ranking 48th in the country for total production, according to the group.

In 2014, U.S. sales of all types of beer were up 0.5 percent, to 197.1 million barrels, while craft beer production was up 17.6 percent, to 21.8 billion gallons, according to the association.

Earlier this year, Act 857 cleaned up Arkansas' law regulating breweries. The new law establishes only two divisions of breweries - microbrewery restaurants and small breweries. The new rules also allow for some self-distribution of beer.

Currently there are 19 small brewery permits held in the state, along with 11 microbrewery restaurant permits, according to documents provided by Arkansas Alcoholic Beverage Control Division.

The new regulations allow more beer to be brewed here. Nowadays, microbrewery restaurants can produce up to 20,000 barrels annually. For small breweries, the production limit got bigger too, going from 30,000 barrels to 45,000 barrels.

Bart Watson, chief economist for the Brewers Association, said the growth Fossil Cove is experiencing is more accelerated than most but is typical of many small breweries. He said as more breweries enter a market they can create a "virtuous cycle" where success creates opportunities for others entering the sector.

"As local beer lovers get introduced to fuller-flavored beer from local producers, it typically increased demand and allows greater opportunities/higher success rates," Watson wrote in response to emailed questions.

Other Northwest Arkansas breweries have been having growth spurts as well. Over the summer, Ozark Beer Co. in Rogers added more brewing capacity; Core Brewing and Distilling in Springdale went through a re-branding campaign and continues to open tap rooms around the region, its most recent in Fayetteville; and Saddlebock Brewery, also based in Springdale, added a canning line.

Fossil Cove's Mills said the expansion of his brewery is several years ahead of schedule. He noted his current building is pretty much at capacity and he's considering expansion nearby, although he has not officially floated a plan with the city.

"We're still trying to figure that all out," Mills said.

02 December, 2015