Newburyport Brewing Company announced today that it has raised $1 million in private capital as it plans to launch a new 8,330 square foot brewing facility in December. As earlier reported by Brewbound, Newburyport Brewing’s business plan called for $750,000 in start-up capital, and, by last month, had raised over $600,000 from a variety of investors. The seed money would be used to build a facility capable of producing 30,000 barrels and beer, and include a canning line that could fill 30 cans per minute. Now armed with a starting investment that is 25 percent higher than initially planned for, Newburyport co-founder and COO Bill Fisher stated that the brewery would devote more resources to sales and marketing initiatives and place greater focus and attention on the quality of its beer.
Fisher said that the brewery capped outside investment at $1 million, and set a deadline for individuals to purchase equity in the company, which led to a final rush of capital streaming into the new business venture.
“It’s interesting how setting a deadline for investment puts people over the goal line,” Fisher said. “We went from investment gathering mode to investment closing mode.”
While Newburyport Brewing now has over 35 investors, Fisher stated that he and co-founder Chris Webb still own a majority of the company.
With investment in hand, Fisher said that Newburyport will take delivery of its brewing equipment on December 10 and begin brewing three days later. The size and brewing capacity would not only enable Newburyport with a quick start out of the gate – the brewery will release its first beers in February 2013 – but also give the company the ability to take on contract brands as brewing partners. Fisher said that Newburyport Brewing is close to signing a deal with a contract brewer, and while he declined to name the brand, stated that the papers could be signed by next week.
Here is Newburyport Brewing’s press release about its funding efforts:
NEWBURYPORT, MA–(Marketwire – Oct 15, 2012) – The Newburyport Brewing CompanyÔäó announced today that it has raised $1 million in private capital that will be used to expand operations to an 8,330 square foot facility in Newburyport, Massachusetts. The company is brewing quality craft beers, using premium quality natural ingredients in three products that will be available in early 2013: Newburyport Pale Ale, Plum Island Belgian White, and Green Head IPA.
According to the Brewers Association, craft beer sales rose 12% in volume terms to 6 million barrels in the first half of 2012. The association estimated craft beer represented 6% of U.S. beer market by volume and 9% in dollar terms last year.
“By building an authentic brick and mortar production brewery, we are demonstrating our commitment to consumers and retailers who expect great tasting, locally produced craft beer,” states Bill Fisher co-founder and chief operating officer. “Craft beer does very well in New England and we are excited to add to this region’s growth.”
Newburyport Brewing Company recently announced that it has partnered with Smart Machine Technologies (SMT), a world-class designer, fabricator, and manufacturer of custom-made beverage systems. As part of the business partnership, the Newburyport Brewing Company will serve as a showpiece brewery for SMT and will welcome visits and inquiries from other craft breweries considering SMT brewing equipment.
The new facility, located at 4 New Pasture Rd Newburyport, MA, will be outfitted with:
- 3-vessel, 20-barrel brew house and tank farm
- 50,000 lb grain storage silo
- Automated can and keg packaging lines
- 1,200 cubic feet of cold storage
- 2,000 square foot tasting room with music stage, seating, and bar
About Newburyport Brewing Company, Inc.
The Newburyport Brewing Company is a privately held craft brewery dedicated to brewing the highest quality craft beer products for local and regional consumers. Founded in 2012, the Company is Massachusetts’ first and only exclusive keg and can craft brewery and one-stop contract brewing and canning provider. Co-founded by two local Newburyport entrepreneurs, musicians, and home brewers — Chris Webb and Bill Fisher — the company aims to capture the essence of Newburyport’s quaint seaside character across a line of great tasting handcrafted ales. Newburyport Brewing Company uses premium quality natural ingredients in three products: Newburyport Pale AleÔäó, Plum Island Belgian WhiteÔäó, and Green Head IPAÔäó. Visit us on the Web at http://www.nbptbrewing.com.
All logos, company and product names may be trademarks or registered trademarks of their respective owners.