Openings & Closings: Athletic Opens 3rd Production Facility; COOP Finally Gets Armory; Talea Opens 2nd Location; Atlanta On the Move

Athletic founders John Walker and Bill Shufelt

Athletic Brewing Opens ‘World’s Largest Non-Alcoholic Brewery’

Non-alcoholic beer maker Athletic Brewing Company’s third production facility — a 150,000 sq. ft. brewery in Milford, Connecticut — officially opened today.

The fast-growing NA beer producer — which crossed the 100,000-barrel mark in 2021, making it the 27th largest independent craft brewery by volume, according to the Brewers Association — hailed the new plant as possibly “the world’s largest non-alcoholic brewery,” with the potential to produce more than 6 million cases (nearly 435,500 barrels) annually in the future.

The Milford brewery will serve East Coast markets and Europe, producing flagship offerings Run Wild IPA, Upside Dawn Golden Ale, Free Wave Hazy IPA, and Athletic Lite, 40 seasonal releases, and hop-infused sparkling water brand DayPack. The facility will employ more than 50 workers.

With the addition of the Milford brewery, Athletic now has more than 5 million cases (nearly 363,000 barrels) of production capacity across its three breweries.

Athletic operates two other facilities, an 80,000 sq. ft. brewery in San Diego with more than 2 million cases of annual capacity and a 10,000 sq. ft space in Stratford, Connecticut, which is dedicated to research and development of new products.

Since its founding in 2017, Athletic has grown from 12,000 cases in 2018 to more than 1.4 million in 2021, driving 39% of total NA beer category growth, according to a press release.

“Keeping up with demand has always been our biggest challenge,” co-founder John Walker said in a press release. “In our original business plan, we anticipated maxing out on our Stratford brewery capacity in five years. This state-of-the-art facility allows us to stay ahead in not only capacity but also quality – which our customers have come to expect from us. Given the lack of investment in the category over the previous 30 years, this further validates our belief in the category and consumer demand for adult non-alcoholic beverages that help people maximize their own potential day every day.”

Within the non-alcoholic craft beer subsegment, Athletic holds a 51% share of the market. Overall, Athletic is the third largest NA beer brand in the U.S., according to market research firm NielsenIQ. The company boasts an 11% share of the overall non-alcoholic beer market in the U.S.

Athletic has gained 12,000 new retail placements in stores, bars and restaurants, including more than 1,000 Buffalo Wild Wings locations.

“We’re just getting started,” co-founder Bill Shufelt added in the release. “Ultimately, we see non-alcoholic beer growing from just 0.3% of the overall beer category in 2017 to over 20%.”

COOP Ale Works Strikes Deal for OKC Armory

Oklahoma City’s COOP Ale Works is pressing forward with its plan to convert a former Armory building into a hospitality complex according to the Oklahoman.

The project dates back to July 2018 when the brewery won an RFP to revitalize the 23rd Street National Guard Armory and transform the vacated 87,000 sq. ft. space into a manufacturing brewery, restaurant, event space and boutique hotel. The purchase includes two additional buildings that will be demolished for parking. The facility will include 12 villas with a speakeasy, as well as a beer garden and pool.

The project is expected to take two years for demolition and construction with a target of opening in 2025. COOP CEO Daniel Mercer told the outlet that the company has budgeted around $55 million for the project.

Brooklyn’s Talea Beer Co. Opens 2nd Location

Brooklyn-based Talea Beer Co. has opened a second taproom location, this time in the borough’s Cobble Hill neighborhood, according to Time Out New York.

The new space features 15 beers on tap, as well as cans and bottle offerings and a full bar. Talea also sells 4-packs to-go.

Talea, which was founded in 2018 by LeAnn Darland and Tara Hankinson, and is “the only exclusively female-founded brewery in NYC,” according to Time Out. The company operates a taproom in Williamsburg.

Atlanta Brewing to Close Brewery and Taproom, Plans to Move to New Space

Atlanta Brewing Company announced plans to close its brewery and taproom on July 3 and move to a new location, according to a social media post.

“This is not a ‘goodbye’ but a ‘see you soon,’” the company wrote, while thanking its patrons for spending “trivia nights, weekends and special events with us.”

According to Eater, Atlanta Brewing CEO Alton Shields and business partner Dave Peterson are entering into a partnership with another brewery to produce the company’s beers. Although they declined to name the brewery, Shields said they are “moving into an area that’s starving for more breweries.”

“So, we’re actually doubling down and moving into the city,” he added.

The company’s staff has dwindled from 20 at the start of 2022 to about four now. Eater, citing “sources with knowledge of the situation,” reported that “the brewery had trouble meeting payroll earlier in the year.”

Shields attributed the move to “a major rent increase,” “issues with a neighboring property now blocking access to trucks delivering” to the brewery’s grain silo, and building and brewery equipment maintenance costs.

Barley Island in Indiana to Close After 23 Years

Barley Island Brewery will close at the end of July after more than two decades in business, according to the Indianapolis Star.

The company announced the closure in a Facebook post, calling it “the end of an era.”

“Our building was bought last July and we were given a 1-year lease,” bartender Michael Smith wrote. “That lease will be up in the end of July. After 22+ years of celebrating great beer, food and people we have set our final date of operation for July 23rd.”

Hair of the Dog Set to Close June 26

June 26 will be the final day of operation for Portland, Oregon-based Hair of the Dog Brewery, founder Alan Sprints announced via a Twitter video.

Sprints announced in February that he would retire and close the brewpub after 23 years in business.

“Thanks for so many special memories, cheers to you all,” Sprints said.

Cellador Ales to Close At End of 2022

Los Angeles-based Cellador Ales will close at the end of 2022, according to an Instagram post from earlier this month.

“Unfortunately, after six and a half years in business, Cellador Ales will be closing our production space and taproom location at the end of this year,” founder and blender Kevin Osborne wrote. “While we are still exploring options to keep Cellador up and running in a new location, that future is uncertain.”

Osborne noted that the brewery, which opened in 2014, pivoted during the pandemic, “made some tough decisions, and made it through the first two years.”

“But … something I can’t quite put my finger on has been rippling through the industry in 2022,” he wrote. “It has unexpectedly been the toughest year since the pandemic started, for us, and apparently many other small breweries.

“We came to the decision to close our doors through the confluence of many factors. Financial issues, lease issues, personal life changes, and more. It is important to us to get out in front of it, come up with a plan, and not have to make decisions out of desperation.”

Cellador’s taproom will remain open through the end of the year and the company will continue to produce beers for its membership club.

“[H]opefully we can work out finding a new location or keeping the brand alive somehow,” Osborne concluded.