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Business

Boulder Beer Company downsizes and becomes a brew pub




In 1979, a goat shed started on a small farm in North Boulder, two physics professors and an engineer Boulder Beer Company, Colorado's first craft brewery. Forty years later, the one-time goat brewery sells more than 16,000 barrels a year and distributes the beer in 34 states.

But on Thursday, just months after celebrating its 40th anniversary, the Boulder Beer Company announced it is shrinking operations, by 21 employees and ending widespread distribution, meaning the beer will soon be available only at the Boulder Brew Pub.

Colorado's oldest craft brewery will still sell its beers in stores across the United States through the end of 201[ads1]9. But starting in the new year, you will only be able to find brands like Mojo IPA and Buffalo Gold at the brewery's Wilderness Place taproom outside Boulder.

"Boulder Beer has been a part of my life for almost 30 years, as it has been for so many of our loyal friends and patrons, and we all want to see it live on," said Gina Day, owner of Boulder Beer, in a news release.

With this move, the business will still be able to operate independently "For years to come," Day said.

Boulder Beer employs 50 people, and 21 will be laid off over the next two months, according to Tess McFadden, marketing manager for the brewery. The brewery also sells its canned and drain lines, along with larger brewing tanks, and will pair down to a smaller brewing system.

Boulder Beer's decision comes at a time when craft breweries across the country are still being sold to larger companies. Another Boulder behemoth, Avery Brewing, this year announced a 70% sale of its business to Founders Brewing Co. and Mahou San Miguel.

Strong competition has made craft beer a tough market for independent breweries, especially as sales in the sector are slow. While craft beer now accounts for about 13% of the total beer market, 3.9% growth in 2018 is the sector's lowest in ten years, according to the Boulder-based Brewers Association, with total beer sales in the US falling 1% last year. .

"… At a time when the United States (and Colorado) have more breweries than ever before, there is something of a contradiction in the overall strength of the craft segment and the health of individual (breweries)," said Bart Watson, chief economist in the Brewery Association. "While we continue to see demand grow for beers with more tastes and tastes from small and independent breweries, that growth does not guarantee the success of all brewery companies."

Boulder Beer's struggles, Watson said, only reflect the state of the larger industry, where "there is only so much shelf space and a growing number of breweries trying to put the beer on the shelves."

"It's no secret that the craft beer industry has become increasingly competitive in recent years," said Tristan Schmid, marketing and events manager for the Colorado Brewers Guild. "Packaging and distribution has a fair share of costs, and that's one reason we've seen so many smaller breweries successfully focus on their immediate & # 39; backyards & # 39; selling locally brewed beer exclusively from the taprooms. "

In 2016, Wynkoop Brewing Company – Colorado's oldest brewery, which opened in 1988 – announced plans to stop packaging and distributing its beers to focus on taproom at 1634 18th St. Also that year, Twisted Pine Brewery took a similar decision for their business in Boulder.

"Times have changed and the changes are difficult, but I'm ready to leave it & # 39; funny & # 39; in beer," Day said in the news release. "Our friends will still be able to enjoy our beers in the brew pub, and by brewing in small batches, (we) have a wider range of options on the constantly rotating special taps."

Just last week, Boulder Beer participated in its 37th major US beer festival in Denver. It is one of only two independent craft breweries in the country that has poured beer at each GABF; the other is California's Sierra Nevada Brewing Company.

"We make beer that people like," Dan Weitz, sales director for Boulder Beer, told the Denver Post before this year's festival. "We're not just checking a box."

Boulder Beer's founders – Randolph "Stick" Ware, David Hummer and Alvin Nelson – started the company on a larch, but their beer became serious business.

"I liked to make beer, and one day I said, & # 39; We should start our own brewery, & # 39; "Ware told The Post before GABF. "Because I shot my mouth, I had to follow."

Boulder Beer has remained constant as the state's craft brewing business balloons and reaches up to 400 breweries.

"The decision for Boulder Beer to quit distribution certainly wasn't easy," Schmid told the Brewers Guild, "but ownership and management's ability to make tough choices is probably one reason why the brewery is one of the oldest original craft breweries in the country. and why it has been able to adapt and evolve over the last 40 years as the industry has skyrocketed. "

If You Go: 2880 Wilderness Place, Boulder, 303-444-8448, 11 am-10pm daily, boulderbeer.com



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