[Photo: Smuttynose’s new Towle Farm site under construction]
(Portsmouth, NH) – Smuttynose Brewing Co. has put its facility at Heritage Avenue up for sale for as it plans to transition operations to a new location at Towle Farm in Hampton next fall.
According to a prospectus obtained by BeerPulse on Thursday, Smuttynose is listing ‘equipment and leasehold improvements’ at $1.8 million and real estate at $1.65 million for a combined offering of $3.45 million. As of now, the company is only selling the brewhouse as part of the entire package and aims to avoid dismantling the brewery and selling parts individually.
Among the top ten craft breweries in New England in terms of annual production, Smuttynose is a common example of what is happening around the craft beer industry when it comes to growth. On a percentage basis, production volume growth has steadily increased from 16% in 2008 to 29% last year. But like so many other brewers, the company ran into a snag this year when it came to capacity. As a result, production is expected to reach approximately 42,000 barrels of beer or 12% growth from 2011.
More on the offering from the prospectus…
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This is a terrific opportunity for a small to medium-sized craft brewer looking to expand its capacity in a very cost-effective manner by acquiring a turn-key brewery that has been producing award-winning beers for nearly two decades, in a building that is available to purchase at a fixed price. As part of the sale, we are offering not only the equipment and systems, but also our expertise in operating them.
The brewery features a 50-barrel, three-vessel brewhouse, and a 250 bpm bottling line. Our output in 2012 will be approximately 42,000 barrels. We believe the ideal occupant for this space is a company that is currently producing 10,000 to 20,000 barrels, perhaps with an eye to building its
own, larger facility in the future, but with a need to address current capacity demands. […]
By the time we move out in late 2013, we expect to be producing at rate of close to 50,000 barrels annually. We mention this to indicate the potential capacity of this brewery, not its actual capacity.
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That is because Smuttynose plans to move its 200-barrel fermenters and bright tanks over to the Towle Farm location. In the meantime, progress continues to be made at the new site. The latest from this week’s newsletter update…
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Construction is clipping along nicely at Towle Farm. The property has a lot of subterranean rock ledges, so the crew had a great deal of blasting and earth moving to do before the actual building process could begin. As of last week, footers for the foundation began going up.
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Smuttynose announced $18 million in financing for the new location back in August.
Above, a peek at what it looked like as of 5pm EST today.
Counting my pennies now!