Craft breweries tap suburbs south of Denver to succeed in challenging market
Because the founding of Parker’s Downhill Brewing in 2017, house owners Jake Minturn and Doug Hyndman at all times deliberate to develop to a number of places. By then, the craft beer market had matured sufficient the duo felt they couldn’t depend on the manufacturing and distribution mannequin. As an alternative, they tried to construct a welcoming house — and one with a vibe that might be replicated in new locations.
After years of looking, Minturn and Hyndman lastly discovered their excellent spot. Downhill Brewing’s second location in Greenwood Village opened at 9672 E. Arapahoe Street firstly of February within the former dwelling of Peak View Brewing Co. Buying the defunct brewery afforded Minturn and Hyndman a turnkey spot that was shut sufficient to their unique location to leverage model recognition, however far sufficient away in order to not cannibalize gross sales, they defined.
“We appeared round in all places type of south metro,” Minturn mentioned. “It got here all the way down to, for us, the texture of the taproom, location, site visitors, (and) house. We weren’t lifeless set on Greenwood Village, it simply ended up that Peak View was the perfect candidate we have been on the lookout for.”
As craft breweries search for alternatives for development amid a market downturn, they’re usually discovering themselves within the suburbs south of Denver the place growth is booming and residential communities are flourishing. A current wave of brewery expansions consists of legacy beer corporations and newer producers who say there are untapped buyer bases in these markets that they’ll serve with barely much less competitors in comparison with the remainder of the Entrance Vary. Although the enterprise local weather stays difficult, one brewery’s demise means one other’s probability to succeed in new drinkers in a fiscally sound approach.
The migration of breweries south is sensible to Martin Saylor, managing director at Evergreen-based 1stWest Mergers and Acquisitions, which facilitates beer enterprise valuations and gross sales.
North of the Mile Excessive Metropolis, pioneers like Avery Brewing Co. in Boulder, Left Hand Brewing Co. in Longmont, and New Belgium Brewing Co. and Odell Brewing Co. in Fort Collins helped lay the muse for the craft beer motion. That area was as soon as thought-about the Napa Valley of beer, Saylor mentioned. And by that comparability, the suburbs south of Denver might be thought-about deserts — albeit, deserts filled with Millennial dad and mom who have been raised on craft beer.
In recent times, beer gross sales have misplaced market share to different alcohol choices like spirits. And since Gen Z isn’t selecting up pints like earlier generations, it looks like a sound technique to “comply with the dads,” Saylor mentioned. “You gotta fish the place the fish are. Because the inhabitants and demographic expands and is pushing south, it simply is sensible to be there.”
Plus, Saylor added, vacant downtown workplace buildings, excessive hire costs and a rising homeless inhabitants make Denver much less enticing to some small enterprise house owners.
Patrick Crawford, co-founder of Denver Beer Co., has additionally seen the shift in locals’ each day routines. Many commuters now earn a living from home, so whereas downtown Denver is quieter than it has traditionally been, “the suburbs have change into somewhat extra full of life,” Crawford mentioned.
In December, the brewery opened its fifth location in downtown Littleton after taking on the house from one other beer maker that closed. Residents there carry the entire household within the evenings, Crawford mentioned. To cater to that demographic, Denver Beer Co. expanded its meals menu there to incorporate flatbread pizzas.
“There’s alternatives to seize the individuals who used to return downtown and drink beer within the Denver Beer Co. beer backyard at 4 o’clock after working,” he mentioned.
![Denver Beer Co. opened its fifth location in downtown Littleton at the end of 2023. Because locals are working from home more and commuting to the city less, co-founder Patrick Crawford saw an opportunity to cater to drinkers and their families closer to where they live. (Provided by Denver Beer Co.)](https://i0.wp.com/www.denverpost.com/wp-content/uploads/2024/02/TDP-Z-dbclittleton-01.jpg?fit=620%2C9999px&ssl=1)
For a lot of, like John Winter, president of Lone Tree Brewing Co., the value of obtainable actual property was the first resolution driver in the place to place down roots. Winter spent the higher a part of three years scouring the Entrance Vary in the hunt for a second location. New builds and buildings in planning fetched a premium price ticket in all places he appeared.
So when Barnett & Son Brewing Co. in Parker determined to faucet out, Winter jumped on the alternative to take over the corporate’s house. Winter closed on the deal in late February and opened the brand new Lone Tree Brewing Co. on March 1. Why does he really feel assured his enterprise can succeed the place one other one didn’t?
“Between Lone Tree and Parker, there’s quite a lot of residential that’s moving into,” Winter mentioned. “There’s nonetheless development potential right here. I feel a lot of the interior metropolis throughout the Denver metropolitan space, whereas nonetheless there’s selective constructing happening, this has nonetheless bought land and obtainable alternatives there as communities are constructed out.”
Whereas now may look like an inopportune time to develop, Saylor expects to see continued consolidation amongst breweries which have been over-leveraged for the reason that business’s heyday of seemingly limitless development. Companies which might be financially able to strike can seize the second with the releasing up of brewery actual property.
![Living the Dream Brewing Co. opened in 2014 in Littleton. It recently relocated to Highlands Ranch where it can provide a more comfortable taproom experience and keep thirsty regulars coming back for happy hour. (Provided by Living the Dream Brewing Co.)](https://i0.wp.com/www.denverpost.com/wp-content/uploads/2024/02/TDP-Z-beer-01.jpg?fit=620%2C9999px&ssl=1)
In at present’s market, finding a brewery inside a residential space is a surefire option to construct a strong nicely of consumers, particularly within the suburban sprawl the place competitors is much less concentrated. Pedestrian-friendly brewery districts was once a boon for enterprise, however consuming habits have modified, mentioned Jason Bell, founding father of Residing the Dream Brewing Co.
“Folks aren’t going to take a look at 5 breweries this weekend, however they’re nonetheless going to their native spot,” Bell mentioned.
Creating a snug taproom surroundings is the easiest way to make sure folks return for an additional completely happy hour, he added. That’s why after a decade in its unique dwelling in Littleton, Bell wanted to maneuver his brewery, which lacked warmth and air con. He settled on Highlands Ranch the place Grist Brew Co. was vacating two separate amenities, together with a brewery and a small bar that solely serves residents in Littleton’s Sterling Ranch. Each opened firstly of the 12 months.
Transferring to Highlands Ranch enabled Residing the Dream to stay near its core client base whereas additionally upgrading the taproom expertise. Although the brewery downsized when it comes to sq. footage, it’s now capable of develop its onsite visitor capability and change into extra operationally environment friendly — each of that are important for survival, Bell mentioned.
“The breweries which have managed to essentially get foothold of their neighborhood are those that may journey this out,” he mentioned.
![Great Divide Brewery & Roadhouse opened its first location in Castle Rock in 2020. The concept has been so successful, it expanded with a second outpost in Lone Tree in Feb. 2024. A third one is set to open in Lakewood by the end of the year. (Provided by Electra Productions)](https://i0.wp.com/www.denverpost.com/wp-content/uploads/2024/02/TDP-Z-greatdivideroadhouse-01.jpg?fit=620%2C9999px&ssl=1)
When Brian Dunn opened Nice Divide Brewing Co. in Denver in 1994, it was considered one of about 30 breweries within the state. At this time, Dunn has roughly a dozen craft breweries as neighbors between Nice Divide’s outposts in Decrease Downtown Denver and the River North Arts District.
Dunn partnered with Vibe Ideas to open Nice Divide Brewing & Roadhouse in Fortress Rock in 2020. A longtime resident of central Denver, Dunn doesn’t see the attract of transferring to the suburbs. However he can’t deny the enterprise prospects there.
Nice Divide’s Fortress Rock location, which features a full-service restaurant, “exceeded our expectations,” Dunn mentioned. So when Vibe Ideas approached him about opening a second one in Lone Tree, he was on board. The brand new Nice Divide Brewing & Roadhouse opened on Feb. 22. A 3rd location is predicted to open in Lakewood by the tip of the 12 months.
“Fortress Rock is simply booming, completely booming. The south a part of Denver is booming as nicely,” Dunn mentioned. “It’s an space we might stand to construct our title consciousness.”
From an operational standpoint, labor prices are decrease in suburban markets on account of minimal wage necessities, mentioned Robert MacEachern, Denver Beer Co.’s CEO. That’s an vital consideration as the corporate plans additional enlargement. MacEachern mentioned particulars of a forthcoming location will probably be introduced this summer time.
“We’re wanting ahead to persevering with our development and south is certainly a path we’re heading,” he mentioned.
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