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New Belgium and Elysian Brewing – Joint Venture

New Belgium joins in win-win venture
Seattle’s Elysian to make New Belgium products,
BY PAT FERRIER

New Belgium Brewing Co. of Fort Collins and Elysian Brewing Co. of Seattle will soon begin brewing beer at each other’s facilities, creating a new collaboration and business model in the craft brewing industry.

New Belgium plans to brew small-batch experimental beers in Seattle while Elysian will brew larger batches at the 500 Linden St. brewery, including their pumpkin beer, Elysian co-founder David Buhler said.

Elysian, the smaller of the two craft brewers, has brewed more than 60 different beers, including its six standards, such as Immortal IPA, Elysian Fields Pale Ale and Drangonstooth Stout and eight seasonal brews.

New Belgium, the third largest craft brewer in the country, known for its Fat Tire and Sunshine Wheat, produces more than 500,000 barrels a year.

Both will remain independent brewers but take advantage of the partnership to increase efficiencies, allow each to experiment with different brews and “take a bold collaborative step into the future of American craft brewing,” a statement from both brewers said.

“We’ve been mutual friends for years,” Buhler said in a telephone interview from a cabin in the Cascade Mountains.

“We’ve talked about doing beer together for years … and we’re both recognized as among the two best craft brewers in the U.S., but it just never happened.”

Elysian, a brewpub with three restaurants in Seattle and a wholesale operation, is focusing on opening new markets and growing that side of the business, Buhler said.

“Kim Jordan (co-founder of New Belgium) said, ‘Maybe we can help with that,’ ” Buhler said. Elysian broke into the New York market on July 1 and hopes to be in California in September.

New Belgium had also “talked about doing some of their experimental beers and finding it challenging to do in their larger brewhouse,” Buhler said.

The conversations turned from a fun prospect to “a fun business venture,” he said. “It’s kind of like going to each other’s house to play. We’re brewing and selling our product, but the purpose of the collaboration is to have fun and help the breweries get a couple things accomplished that we weren’t able to do.”

Elysian projects brewing about 5,000 barrels in Fort Collins in the next year. And perhaps by the fall, Elysian’s beer will be available in Fort Collins.

Both breweries are still jumping through some “legality hoops” in terms of shipping, but Buhler said they will be shipping out of Fort Collins and Seattle.

The collaboration also allows New Belgium to get closer to its customers in the Pacific Northwest, fertile ground for craft brewers.

“This is an exciting time for craft brewers in the U.S. as we dream up new and interesting ways of brewing great beer and working with one another,” Jordan said in a statement.

“Our respect for the folks at Elysian is tremendous, and I can’t wait to celebrate with the first beer that we brew together.”
Link to article.

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Craft-beer brewers to share facilities