Brewbound Podcast Episode 42: John Dantzler on Buying Brewing Equipment at Bankruptcy Auctions

As an increasing number of craft beer companies close their doors, the market for used brewing equipment is heating up.

But not all that glitters is gold, especially when it comes to buying assets from a distressed brewery.

John Dantzler, the co-founder of New York City’s Torch and Crown Brewing, recently joined the Brewbound Podcast to share his experience buying used brewing equipment at a bankruptcy auction.

According to Dantzler, to maximize your value at a bankruptcy auction, brewery owners need to do their homework.

“If you are acquiring something out of bankruptcy, it is typically not going to be this pristine, brand new piece of assets,” he said.

His advice? Operate under the assumption that precision equipment such as filters, or centrifuges have “probably not been treated the right way.”

“Those are probably beyond salvageable,” he said. “But the actual stainless steel or harder assets that you can beat up a little more, that’s where we ascribed the value.”

In episode 42 of the Brewbound Podcast, Dantzler discusses the ins and outs of bankruptcy buys and explains why he’s committed to opening a production brewery in Manhattan. He also discusses what’s leading to the uptick in distressed brewery sales, and shares how his business model has evolved over the last five years to accommodate for the current marketplace realities.

Listen to episode 42 of the Brewbound Podcast above, as well as on iTunes, Google Play, Stitcher, Spotify, and Soundcloud. New episodes of the Brewbound Podcast, which is co-hosted by Chris Furnari and Justin Kendall, are published every Thursday.

Episode 43 will be released on Thursday, July 4.

For questions, comments or suggestions, please email podcast@brewbound.com.

Show Notes:

0:00 – 23:55: Chris Furnari and Justin Kendall introduce episode 42, discuss hard seltzers, old beer on retail shelves, and the latest news.

23:55 – 1:02:08: Furnari and Kendall interview Torch & Crown Brewing co-founder John Dantzler.

1:02:08 – 1:23:36: Furnari and Kendall share takeaways from the interview, and rundown segments

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The Brewbound Podcast features interviews with beer industry executives and entrepreneurs, along with highlights and commentary from the weekly news. New episodes every Thursday.