Deschutes Brewery will close its tasting room in Roanoke, Virginia, at the end of the year, Michael LaLonde, president and CEO of the Bend, Oregon-headquartered craft brewery, announced today.
LaLonde wrote that Deschutes “made the tough decision not to renew our lease” on the property, which opened in August 2017.
“We have all seen the global pandemic significantly reduce traffic in all restaurants, pubs, and tasting rooms, the Roanoke Tasting Room is no exception,” he wrote. “As we prepare for closing, we plan to honor company commitments, treat all employees equitably and step forward with care and attention on how this impacts the Roanoke community and our dedicated co-owners who have managed this location over the past four-plus years.”
Deschutes will work with its Roanoke employees on opportunities to continue with the company in new roles, LaLonde added. Craft Business Daily first reported news of the closure.
Deschutes’ plans in Virginia were much grander than a tasting room prior to a slow down in craft sales. The company initially intended to open a $90 million, 55-acre production brewery in 2021, and the Roanoke tasting room was its first foray into building its presence in the state.
By 2019 though, those plans were off track, with LaLonde at the time saying the East Coast brewery project was dependent on the company improving “performance and being financially healthy.” The company purchased 49 acres of land for $3.2 million in 2018 as part of a deal to free itself from a string of performance-based incentives in an original agreement with the city of Roanoke.
Over the last four years, Deschutes has raised more than $300,000 to support local non-profits through events such as the Deschutes Street Pub and Community Pints, according to LaLonde’s letter today.
“Going forward, Roanoke will remain a valued and special part of Deschutes Brewery as we continue to invest in the community through our partnership with Blue Ridge Beverage and community events,” he added.
Year-to-date through October 3, off-premise dollar sales of Deschutes’ offerings are down -5.8%, to more than $51.1 million, as the company cycles 2020’s pandemic shut down year comparisons, according to market research firm IRI. Deschutes is the 24th largest beer category vendor in terms of dollar sales this year.
In 2020, Deschutes ranked as the 10th largest Brewers Association-defined craft brewery by volume in the U.S., with sales of 236,044 barrels of beer, and a 1.02% share of the craft beer segment.
This year, Deschutes has made several moves to bolster its business, including making its first acquisition, acquiring neighboring Boneyard Beer Co. in March, striking a multi-year pact to become the “official craft beer” of the Pac-12 Conference, and rolling out its largest media campaign ever behind the Fresh family of IPAs.
Deschutes continues to operate public houses in Bend and Portland, Oregon, as well as a tasting room at its Bend production facility and an outpost at the Portland airport.