Production of Modern Times Beer will shift to AleSmith Brewing in San Diego as part of a new contract brewing relationship with Craft ‘Ohana, the portfolio company that includes Maui Brewing, Modern Times and Kupu Spirits.
Modern Times’ portfolio will be brewed at AleSmith’s San Diego facility in an effort to have a “more streamlined approach and strategy,” Craft ‘Ohana announced today. The transition will happen over the next 60 days, ending with the closure of Modern Times’ production facility in the San Diego neighborhood Point Loma.
“When we set out to find a brewing partner, two things were non-negotiable – our commitment to quality, and brewing Modern Times where the brand started and is the strongest – San Diego,” Craft ‘Ohana co-founder and CEO Garrett Marrero said in a press release. “AleSmith delivers on both of those for us. We’re excited to work with my good friend [AleSmith owner] Peter [Zien] and his team.”
The closure of Modern Times’ Point Loma facility is expected to result in the elimination of 57 jobs after the 60-day waiting period, Craft ‘Ohana president and COO Scott Metzger told Brewbound.
In addition to producing Modern Times’ beer, Point Loma also housed the brand’s coffee roasting operations, which will move to contract production, Metzger said. The facility’s taproom will close, but Modern Times’ North Park and Encinitas taprooms will remain open.
Modern Times had been making some of Maui’s fruited offerings in Point Loma, but will move production of those beers back to Hawaii, Metzger told Brewbound. Maui’s mainland production is contract brewed at Boulder, Colorado-based Avery Brewing.
AleSmith’s 110,000 sq. ft facility houses an 85-barrel brewhouse, a 20-barrel pilot system and fermentation vessels that hold up to 240 barrels, according to its website. The brewery’s contract production clients include brands from “the vibrant world of ciders, coffee, seltzers, sodas, kombuchas and more.”
Notably, Mikkeller shifted U.S. production to AleSmith in early 2023 after ceasing operations at its facility in San Diego’s Little Italy neighborhood.
Maui Brewing acquired Modern Times in 2022 after a contentious and complicated auction process. With the closing of the deal in October 2022, the two companies formed a new parent company, Craft ‘Ohana.
In a May interview for Brewbound’s A Round With, Metzger told Brewbound that Modern Times’ production is “very labor-intensive” and a “relatively inefficient operation, so our main focus has been working with that team to identify efficiencies anywhere we can.”
Meanwhile, Craft ‘Ohana has been working to expand Maui’s operations in Kihei, Hawaii, as it attempts to keep up with demand, Metzger said.
Before Modern Times went up for auction, the brewery operated eight taprooms in California and Oregon. Four of those closed in February 2022, and one more followed during the merger process. Records logged during Modern Times’ court-mandated receivership revealed that the company was behind on rent for some of its taprooms.
Modern Times’ dollar sales (-24%) and volume (-25.5%) have both declined double-digits year-to-date (YTD) through August 10 in NIQ-tracked off-premise channels. Meanwhile, Maui has recorded reversed trends, with dollar sales increasing +18.9% and volume +25% YTD.
Craft ‘Ohana was the 26th largest craft brewery in the country by volume in 2023, according to the Brewers Association (BA). Combined, Maui and Modern Times produced 104,783 barrels of beer last year, a +3% increase year-over-year. Maui Brewing alone produced 78,515 barrels, and was the No. 6 largest BA-defined craft brewery in the pacific region (California and Hawaii) in 2023.