Coralville, Iowa-based Backpocket Brewing has acquired the Peace Tree Brewing brand and recipes.
Peace Tree was founded by Megan McKay 15 years ago in Knoxville, Iowa, making it Iowa’s first 100% woman-owned brewery. McKay had sought a buyer for the brewery since last year, and the company ceased operations this summer.
“Selling to Backpocket Brewing allows Peace Tree’s legacy to live on, ensuring that our cherished brands will be continued to be enjoyed,” McKay said in the announcement of the sale.
Backpocket owner Aaron Vargas told Brewbound that McKay approached him about carrying the Peace Tree brand forward. He said he was honored to build upon her legacy, calling her “a trailblazer” in the Iowa craft brewing scene.
Although McKay will not be involved in Peace Tree’s ongoing operations, she may take part in special occasions, Vargas said.
“I’m going to keep her updated along the way, because we’ve become really good friends, and it’s important for me to not fail for her,” he added.
Peace Tree’s flagship Blonde Fatale will be the first beer to return to the market, starting Thanksgiving week, in 12 oz. can 6-packs with retro packaging and kegs in the Des Moines area via Doll Distributing. Peace Tree’s beers will also be offered in Backpocket’s taprooms in Coralville, Dubuque and the Des Moines suburb of Johnston.
Other Peace Tree brands are expected to follow in 2025, including Red Rambler red ale around St. Patrick’s Day and Get A Little Hazy pale ale, a 2021 Great American Beer Festival gold medal winner, in the summer.
Backpocket’s network of Iowa distributors – 7G Distributing, Fahr Beverage and Golden Eagle – will begin carrying Peace Tree in Q1 2025, giving the brand coverage of “about 80% of Iowa,” Vargas said. The brand will also be distributed in Illinois for the first time.
Vargas is optimistic about Peace Tree’s ability to add volume to Backpocket, which produced 5,509 barrels of beer in 2023, according to data from the Brewers Association. Output for Peace Tree was not reported in 2023, but the company produced 3,108 barrels in 2022, according to data from the trade group.
“At its peak in 2019, Blonde Fatale did 4,000 barrels itself,” Vargas said. “My hope is to get 1,000-plus barrels of Peace Tree in 2025.”
Peace Tree will be produced at Backpocket’s Coralville production brewery and maintained as a separate brand. It’s the latest piece in Backpocket’s house of brands strategy, as well as another brewery added to its shared-services platform, the Parallel Brewery Collective.
Backpocket and Singlespeed Brewing in Waterloo launched Parallel in mid-February, with a shared sales team and supply chain procurement. Each brewery has maintained their independent ownership.
About four months ago, a third Iowa brewery, Five Cities Brewing in Bettendorf, was added to the collective. Backpocket will also begin contract brewing for Five Cities in the near future as the company adds more can packages.
Later this month, Backpocket will also be releasing its next Iowa State University-branded beer, a special edition of its Forever True blonde ale called Hilton Magic for basketball season, featuring the Cyclones’ retro Cy mascot.
Backpocket’s licensing deal with the university started last year, with the company struggling to keep up with demand for Clonefest festbier. In January, Backpocket launched its first iteration of Forever True, a 5% ABV blonde ale that the company has found to be a hit.
“Forever True is going to double our projections of what we thought it was going to do in Year One,” he said, adding that it is expected to sell 600 barrels in 2024. “So we call that a win.”
Lighter styles such as the blonde ale have proven more popular than IPAs and other styles, Vargas said.
Future releases will likely be the Forever True liquid with limited-edition packaging, such as Hilton Magic, which will start with an 800-case run that could lead to an additional drop if the Cyclones do well heading into March Madness.
“We’ve found a winning formula with that one,” he said.