Not great news at the start of 2018…
New Hampshire’s heritage Smuttynose Brewing is seeking an immediate buyer and scheduled to be in a bank auction on March 9th.
The upcoming sale, reportedly includes the Smuttynose brand, its entire LEED-Gold certified facility, a 13-acre campus, located the historic Towle Farm in Hampton, New Hampshire, as well as the brewery’s neighboring Hayseed Restaurant.
Founded in 1994, Smuttynose currently employs 68 people and generates $10 million annually, but business for them has been slowing.
And the company, which is capable of producing 75,000 barrels of beer a year has been running at 50% capacity of late which is never a good sign.
In a press release Smuttynose owner Peter Egelston detailed some the problems that led to the company’s impending auction…
“The company’s financial models were based on 20 years of consistent growth but the explosion of microbreweries has led to changing dynamics in the marketplace. This dramatic shift occurred just as Smuttynose committed to a major infrastructure investment with the construction of the new production facility. As the turmoil in the marketplace stabilizes, Smuttynose, a trusted brand with strong consumer loyalty, can regain its footing with a major infusion of capital.”
Yesterday we reported on Green Flash Brewing’s pullback and layoffs…and now this.
2018’s not off to a great start for the craft beer industry.