21st Amendment finds San Leandro home

Co-founders Nico Freccia and Shaun O’Sullivan have announced plans to for a new 21st Amendment production brewery, tasting room, restaurant and event space located in the former Kellogg Cereal factory building in San Leandro, Calif.

They expect the facility to open later this year and have an initial brewing capacity of 100,000 barrels (a barrel equals 31 gallons), and be scalable to over 250,000 barrels. The company expects to brew over 70,000 barrels in 2014.

“Since we began packaging our beer six years ago with our Minnesota partner brewery, we have never been able to keep up with demand,” Freccia said for a press release. “Building our own local brewery will allow us to continue to focus on improving quality and consistency, and to expand into new markets where our beer is in demand.”

O’Sullivan added, “Both Nico and I are excited about making more interesting beers with our unique packaging that craft beer drinkers have come to know and love. It’s every brewer’s dream to open their own brewery and this is truly a dream come true for us.”

The facility will include a tasting room and retail area as well as the company’s headquarters. Phase two will commence in 2015 and will include a full restaurant/pub, beer garden, event and meeting rooms and more.

21st Amendment will be installing a 100 barrel, four-vessel GEA/Huppmann brew house — engineered in Germany and made in the United States #151; with an initial capacity of eight brews per day.

The company plans to continue to also have beer made under contract in Cold Spring, Minn.


TTB says 948 new brewery permits issued

Number of active breweries in US

The Beer Institute reports the Alcohol Tobacco Tax and Trade Bureau (TTB) registered 948 new “permitted breweries” in 2013 and there are now 3,699 active.

Analysis by the Beer Institute showed that the majority of the new permits issued in 2013 went to brewpubs. It also found four states account for one-third of all breweries in the United States: California, Washington, Colorado and Oregon.

“We have tracked the industry since our preceding trade association was first founded in 1862, and there’s a story in these numbers. Beer is constantly evolving in the U.S., with more small brewers than ever before, more brands being introduced by national brewers and growing interest in imports,” Chris Thorne, vice president of communications at the Beer Institute, said for a press release.

“There was a long period of consolidation in the industry, but during that same period, beer became the most popular drink in America. Thanks in great part to the small brewer tax credit, today we’re seeing more small brewers than ever before. But consumers are also increasingly less loyal to beer, and that is a challenge for every brewer of any size,” Thorne said.

More than 90% of permitted breweries produce less than 60,000 barrels annually.


‘Brewed in Austin. Born in Detroit’

Detroit’s Atwater Brewing has revealed a bold expansion plan that includes building two large brewing facilities far from its Michigan base.

Crain’s Business Detroit reports the Detroit company plans to open breweries in both Austin, Texas, and North Carolina in 2015. The Austin brewery, which will cost $15 million and have a capacity to produce 100,000 barrels, is in the final planning stages for construction. Mark Rieth, president and CEO of Atwater Brewing, told Crain’s the motto for the satellite facility will be: “Brewed in Austin. Born in Detroit.”

Rieth said he wants the brewer to grow in scale enough to become a mega-regional player.

“We have eight new markets ready to go as soon as product is available, with another five planned for 2016 and beyond,” Rieth said. “The additional operations out of state will allow the Detroit facilities to handle the local markets, which are, and always will be, our main priority.”

When Rieth took over Atwater in 2005, it brewed 800 barrels of beer a year. He predicts sales of 70,000 this year and 100,000 in 2015.


Anheuser-Busch will buy Blue Point Brewing

Anheuser-Busch today announced it has agreed to purchase Blue Point Brewing Co. in New York. Terms of the agreement were not disclosed.

In 2013, Blue Point sold approximately 60,000 barrels, with 50 percent of the volume from its flagship brand, Toasted Lager.

Mark Burford and Peter Cotter founded the brewery 15 years ago in Patchogue, N.Y., where it will continue to operate. In a press release, A-B stated it plans to invest in the brewery to grow its operational capabilities and enhance the consumer experience over the next few years.

“We are deeply grateful to our family of loyal employees and customers. Our success was made possible by the hard work of good people and good beer in Patchogue,” Cotter said for the press release.

“As we welcome Blue Point into the Anheuser-Busch family of brands, we look forward to working with Mark and Peter to accelerate the growth of the Blue Point portfolio and expand to new markets, while preserving the heritage and innovation of the brands,” said Luiz Edmond, CEO of Anheuser-Busch.

Anheuser-Busch’s purchase of Blue Point is expected to close in early second quarter of 2014.