redbrian
03-24-2005, 08:57 AM
Additions will allow Boulevard to make 600,000 barrels a year
By KEVIN COLLISON
The Kansas City Star
http://www.kansascity.com/mld/kansascity/business/11213528.htm
http://www.blvdbeer.com/
“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. … We're so small in this business, but we're looked upon as the guys who do the real thing.”
John McDonald, Boulevard's founder
Boulevard Brewing 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.
It's sort of like buying a six-pack on a grand scale.
The expansion, which is expected to be completed next year, will put Boulevard in a position to produce 600,000 barrels annually — 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.
“We're so small in this business, but we're looked upon as the guys who do the real thing.”
The 70,000-square-foot expansion will house a much larger, German-made brew house that consists of vats, a brew kettle and whirlpool, all of which will be visible through a glass facade on Belleview Avenue. The three-level building also will have a 150-person hospitality room with outdoor patio seating on the top floor.
A glass-enclosed walkway will link the new building to the existing plant. The expansion plan also includes the demolition of two one-story buildings at 2525 and 2527 Southwest Blvd., which will serve as the location for fermenting tanks. The project is eligible for Chapter 353 property tax abatements, 100 percent for the first 10 years and 50 percent for the next 15 years.
Later phases of the project call for the construction of 45,000-square-foot warehouse and installation of new bottling equipment. Boulevard sells beer only in kegs and bottles with an emphasis on tavern sales. About 60 percent of Boulevard is sold by the spigot versus 40 percent in bottles, compared with national beer statistics where only about 10 percent is sold in draft form.
In conjunction with the Boulevard expansion, DST Realty plans to build a deck above a surface parking lot across Belleview from the brewery to provide more employee parking. The $1.5 million project will create 84 additional spaces that will be leased by DST to Boulevard. The company has 62 employees and expects to expand to up to 150 should the plant reach full production.
Company officials said they were glad to remain in the neighborhood where Boulevard was founded, although they noted it probably would have been cheaper and less difficult to build a new facility in a suburban area. The expansion required obtaining city approvals for rezoning and re-platting, and obtaining a railroad right-of-way.
“We've had good cooperation and support from all the neighbors,” Krum said.
He estimated that about 25 percent of the brewery's workers live within two miles of the plant, and 50 percent live within four miles.
UMB Bank, which has had a long-standing relationship with Boulevard Brewery, is financing the expansion project. The architect is 360 Architecture, and Rau Construction Co. is the contractor.
By KEVIN COLLISON
The Kansas City Star
http://www.kansascity.com/mld/kansascity/business/11213528.htm
http://www.blvdbeer.com/
“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. … We're so small in this business, but we're looked upon as the guys who do the real thing.”
John McDonald, Boulevard's founder
Boulevard Brewing 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.
It's sort of like buying a six-pack on a grand scale.
The expansion, which is expected to be completed next year, will put Boulevard in a position to produce 600,000 barrels annually — 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.
“We're so small in this business, but we're looked upon as the guys who do the real thing.”
The 70,000-square-foot expansion will house a much larger, German-made brew house that consists of vats, a brew kettle and whirlpool, all of which will be visible through a glass facade on Belleview Avenue. The three-level building also will have a 150-person hospitality room with outdoor patio seating on the top floor.
A glass-enclosed walkway will link the new building to the existing plant. The expansion plan also includes the demolition of two one-story buildings at 2525 and 2527 Southwest Blvd., which will serve as the location for fermenting tanks. The project is eligible for Chapter 353 property tax abatements, 100 percent for the first 10 years and 50 percent for the next 15 years.
Later phases of the project call for the construction of 45,000-square-foot warehouse and installation of new bottling equipment. Boulevard sells beer only in kegs and bottles with an emphasis on tavern sales. About 60 percent of Boulevard is sold by the spigot versus 40 percent in bottles, compared with national beer statistics where only about 10 percent is sold in draft form.
In conjunction with the Boulevard expansion, DST Realty plans to build a deck above a surface parking lot across Belleview from the brewery to provide more employee parking. The $1.5 million project will create 84 additional spaces that will be leased by DST to Boulevard. The company has 62 employees and expects to expand to up to 150 should the plant reach full production.
Company officials said they were glad to remain in the neighborhood where Boulevard was founded, although they noted it probably would have been cheaper and less difficult to build a new facility in a suburban area. The expansion required obtaining city approvals for rezoning and re-platting, and obtaining a railroad right-of-way.
“We've had good cooperation and support from all the neighbors,” Krum said.
He estimated that about 25 percent of the brewery's workers live within two miles of the plant, and 50 percent live within four miles.
UMB Bank, which has had a long-standing relationship with Boulevard Brewery, is financing the expansion project. The architect is 360 Architecture, and Rau Construction Co. is the contractor.