Beer brewing coming back to Bayfield

Steamworks Brewing Co. enters joint venture with SEAR Beer Holdings

 

            DURANGO, Colo. – In a fortuitous move that helps spur economic development in Bayfield, and financially boost Steamworks Brewing Co. in Durango, Steamworks has entered into a joint venture with SEAR Beer Holdings for lease of the brewery’s industrial property in Bayfield, Colo. The facility will now be known as Bayfield Brewing Co.

            Formerly the extended brewing operation for Steamworks, the restaurant/brewery in Bayfield Center (which had come to be known as the Bayfield Beer Factory), was closed December 31, 2009 as Steamworks consolidated its efforts in Durango and ceased national distribution of its award-winning brews.

            “We were open to different ideas for use of the property, and we considered a lot of options,” said Kris Oyler, Steamworks co-founder and CEO. “Partnering with SEAR Beer Holdings is the absolutely best option as they will do contract brewing and beer packaging, and the building will be used for exactly what it was designed for.”

            Contract brewers essentially brew beer on contract for other, established labels, explained Oyler. Working with SEAR will allow Steamworks to ramp back up with its beer production and continue to serve some of the previously established markets and distributors, particularly in Colorado, which has been the core market since Steamworks began off-premise, wholesale sales in 2004.

            “This joint venture will improve Steamworks’ financial strength and allow us to really focus our efforts on the Durango brewpub and our brand development,” continued Oyler. “By not selling the property, it also allows us to maintain a financial interest in Bayfield.”

SEAR Beer Holdings is a Delaware Company that specializes in the beer and brewing industries, including glass bottle manufacturing, keg management services and malt, chemical and hop distribution. It is managed by the venture capital firm SEAR Capitol, a limited partnership run by Scot Elliott, Tim Schick, Wes Froebel and Mark Rieth, The Bayfield facility will now be the largest brewing asset, based on annual capacity in barrels, in SEAR’s portfolio.

“SEAR and its partners are excited by the opportunity to work with the great team at Steamworks, as well as the town of Bayfield, Region 9 Economic Development District and the state of Colorado,” said Scot Elliott. “This facility allows us to quickly expand the reach of our own entities, expand our contract packaging, and gain a foothold in the West. We needed extra brewing capacity, and a state-of-the-art facility that can grow quickly. The Bayfield facility offers that immediately.”

SEAR is currently also exploring a relationship with a management company to build a large scale warehouse operation in Bayfield to handle raw and finished goods from the Bayfield Brewery. 

“We will look to double production capacity in the next 90 days, depending on availability of equipment,” said Elliott. “And we expect employment of at least 20 within the next two years. More if Colorado wants the canning line operation.”

According to Elliott, if the State of Colorado provides economic development assistance, SEAR may install a new canning line in Colorado versus New York or Michigan. SEAR Beer Holdings has received in excess of $350,000 in economic incentives for the $2 million-plus facility now under development in New York. 

“The joint venture is an incredible win-win for the entire county,” said Oyler. “Beyond the economic development benefits, it will help reinforce the region as the Napa Valley of hand-crafted beer and bring greater notoriety to Southwest Colorado.”

Steamworks Brewing Co. corporate headquarters and brewpub is located at 801 E. Second. Ave., Durango (970.259.9200). For further information, visit www.steamworksbrewing.com.