E-Malt.com News article: USA, WA: Seattle’s Fremont Brewing to increase production this year

Like so many other small U.S. producers, Seattle’s Fremont Brewing is at a crossroads. On the verge of opening a second brewing facility that will eventually enable the company to produce upwards of 250,000 barrels, and flush with interest from distributors around the U.S., brewery founder Matt Lincecum has two options: step on the gas pedal and expand distribution nationwide, or grow in a more controlled fashion, methodically building out distribution into contiguous markets, Brewbound reported on February 11.

Fremont, which has expanded distribution into Idaho, just the third market where its products are sold statewide, produced only 24,000 barrels in 2015. Lincecum is planning to more than double that in 2016 and expects production to grow to about 60,000 barrels. But he’s not planning on entering more markets to get there.

“The way I like our business to grow is to go deep rather than wide,” he said.

It’s a philosophy that has permeated the business since its inception. Until last November, when Fremont signed a contract with Columbia Distributing for coverage throughout Oregon, its products were sold almost exclusively in Washington. Limited shipments were sometimes made to Northern Idaho and Denver, where the company had placements at a handful of accounts.

“It’s a relatively small amount of beer but it’s done in the right way,” Lincecum said.

Lincecum is excited about his company’s latest market entries, but he still maintains a tight grip on how far and how fast the company moves away from home — he firmly believes that concentric growth and strong relationships with wholesalers will build Fremont into a successful generational business.

“It’s based on relationships, and relationships take time,” he said. “As an organization, it just takes time to uphold your name and build a sense of integrity.”

For that reason, Lincecum says Fremont Brewing is not planning to add any additional markets in 2016, even as the company begins shifting a majority of production into the new $8 million, 80,000 sq. ft. brewery.

“This year we’re going to continue to invest and execute in Oregon, Idaho, Washington and Colorado,” he said. “My whole goal is to manage this new transition to our new brewery.”

Currently under construction, the new facility gives Fremont five times more production capacity than its current 45,000 barrel operation, but Lincecum doesn’t expect the company to scale up that quickly.

Citing data from market research firm IRI Worldwide, Lincecum noted that his company’s Interurban IPA was the 7th best-selling U.S. canned craft beer in 2015, and the best-selling canned craft six-pack in Washington. Fremont also grew production by 30 percent in 2015.

“We’re gonna keep on keeping on,” he said. “[We’ll] continue to do what we do, but do it better. There’s no other magic than that.”

Fremont Brewing will kick off its Idaho distribution next week and a number of launch events are planned throughout the state.



12 February, 2016