USA: Boulevard Brewing Co. is starting work on a $20 million expansion needed to stay ahead of a bubbling growth curve that is expected to surge past 100,000 barrels this year. The expansion, which is expected to be completed next year, will put Boulevard in a position to produce 600,000 barrels annually that is a six-fold increase. The company estimates its current plant at best could squeeze out 108,000 barrels, close to being unable to keep up with the projected demand. “When this comes on line in 2006, we'll be right there,” said Jeff Krum, Boulevard chief financial officer.
The brewery, which opened in 1989, recently began selling beer in North Dakota, the eleventh Midwestern state to be added to its market. For the ninth consecutive year, it experienced 15- to 20-percent production growth. Boulevard produced more than 89,000 barrels in 2004 at its plant at 2501 Southwestern Blvd. It brewed 1,747 barrels during its first full year of operation in 1990.
Company officials know who to thank for helping them succeed where so many microbreweries failed. The bulk of the invitations to the groundbreaking ceremony scheduled for today have gone to the wholesalers and distributors who push their Pale Ale, Unfiltered Wheat and other brands to liquor stores and taverns from Oklahoma City to Fargo, N.D.
John McDonald, Boulevard's founder, is confident that his company's investment will pay off, citing the continued growth of what is called the “craft beer” market. Smaller breweries such as Boulevard and New Belgium, the Colorado-based brewer of Fat Tire, have seen their market share grow to 7 percent last year after several years at 1- to 3 percent. “What makes me feel good is that the big beer industry is busy chasing alternative alcoholic beverages, almost leaving the real beer category, especially the more flavorful beers,” McDonald said. “Ten years ago, they came at us like crazy.
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