Dogfish Head Plans $45 Million Expansion

Dogfish HeadMILTON, DE – Dogfish Head, the brewing company behind the 60, 90 and 120-minute IPA’s is introducing a new number -45.

Though only half the numerical value of it’s “90” counterpart, it means an expansion, currently estimated at $45 million, that will not only increase capacity at their Milton production facility but also their Rehoboth Beach brewpub and distillery.

“We are fuming our growth half from cash flow and half from traditional bank loans,” said Founder Sam Calagione. “Our touring and tasting area and original brewpub distillery in Rehoboth are up in revenue over 50-percent (year-to-date), so some of the investment will go into those areas, but a majority will go toward continued capacity additions in our Milton production facility.”

The expansion will allow Dogfish Head to produce more of their core styles as well as more of their one-off special releases.

“We put no more resources behind our core, year-round beers that we do our occasion beers like Hellhound and Namaste – new batches of which are now being released,” said Calagione. “We will package and distribute 34 beers this year and at least that many next year.”

Recently, Dogfish Head was forced to pull out four states because of limited supply and increased demand. The expansion, which is scheduled to take three years, will hopefully allow them to re-enter those states and others.

The news comes on the heels of a major announcement from Stone Brewing Company, who on May 18th announced their plans for a $26.6 million expansion in the San Diego, Calif. area. That expansion will focus more on brewpub and company store additions, but will also include the ability to produce up to 500,000 barrels annually.

Also on the list of expected expansions is Sierra Nevada, who also recently confirmed plans to expand “east.” One potential site for relocation is Alcoa, Tennessee, where the alcohol laws were recently revised in an attempt to attract the Chico, Calif. based craft brewery.

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