Smuttynose Brewing Co., founded in 1994 and the largest craft brewery in New Hampshire, will be sold at bank auction March 9 unless a buyer is found before. The company employs 68 people and generates more than $10 million in revenue a year.
The sale includes the Smuttynose brand, its facility on the historic Towle Farm in Hampton and Hayseed Restaurant located next to the brewery on its 13-acre site. The brewery is capable of producing 75,000 barrels a year, but in the last year it has been running at 50% capacity.
“The company’s financial models were based on 20 years of consistent growth but the explosion of microbreweries has led to changing dynamics in the marketplace,” Smuttynose owner Peter Egelston said in a press release. “This dramatic shift occurred just as Smuttynose committed to a major infrastructure investment with the construction of the new production facility. As the turmoil in the marketplace stabilizes, Smuttynose, a trusted brand with strong consumer loyalty, can regain its footing with a major infusion of capital.”
Egelston stressed that the company is open and will conduct business as usual.
Lead lender Provident Bank is managing the auction process. “Smuttynose Brewing Company has been a valued customer and an important part of our community. Provident Bank is committed to working with the company during these challenging financial times to produce the best outcome for everyone involved,” Provident Bank President Chuck Withee said.
Egelston, along with partner Joanne Francis, is also owner of the Portsmouth Brewery, a brewpub located in downtown Portsmouth. It is not part of the sale.