E-Malt.com News article: USA, NY: The Brooklyn Brewery hoping to build new facility on western shore of Staten Island

The Brooklyn Brewery is hoping to build a $70 million, 200,000 square-foot facility on the western shore of Staten Island. The new manufacturing center would allow the brewer to produce more beer for sale in overseas markets, according to a draft progress report tracking various large-scale projects penned by the New York City Regional Economic Development Council, an advisory board that is working with the brewer to locate a suitable site. A public forum is scheduled for Monday, August 4 on this and a number of other projects pending before the council, some of which may eventually receive grants or tax incentives from the state, Grain’s New York Business reported on July 28.

"With the support of state and city development agencies, this potential project demonstrates that New York can be a hospitable place for successful manufacturers and exporters," said Eric Ottaway, the brewery's general manager.

The draft report shows the brewery's is seeking a campus with between 20 acres and 25 acres with direct rail access and in relatively close proximity to the New York/New Jersey port system, stipulations that would make Staten Island an ideal location. The report mentioned, however, that a range of locations in the mid-Hudson region are also under consideration.

The proposed facility would help Brooklyn Brewery accommodate rising demand for its product, which is increasingly coming from overseas, and add to its 27-year-old existing operations in Williamsburg. The new site would create 92 full-time jobs and 240 construction jobs, according to the council.

Final site selection would be expected by the end of the year, with the brewery expected to be fully operational by the end of 2017.

Brooklyn Brewery's partner, the Italian bottled water company Galvanina, may also base its North American operations at the facility. If so, that would inject a further $10 million into the project.

The state bills Brooklyn Brewery's rise to global prominence as a prime example of the types of businesses eligible for aid through Gov. Andrew Cuomo's Global New York initiative, which seeks to help turn home-grown brands into household names around the world. In keeping with that objective, the brewery and its boosters in Albany expect it to export as much as 60% of its production by 2022, up from 28% last year.

The state sees tapping international markets as key to boosting economic growth. While 95% of the world's consumers are outside of the country, only 1% of American firms sell to this base, the council report noted. And New York City lags far behind places like Los Angeles, the Silicon Valley and Chicago, which do billions more in export activity annually.

Brooklyn Brewery's President Steve Hindy sits on New York City Regional Development Council, but according to officials, he has recused himself from any decisions regarding state aid to the company.

Mr. Hindy, an opinion columnist for Crain's New York Business, declined to comment for this story.


30 July, 2014