DURANGO, Colo. – Steamworks Brewing Co.’s Bayfield Beer Factory is now back on the real estate market – for sale or for lease – as SEAR Beer Holdings, which just one month ago was promising economic development for Bayfield, failed to fulfill the terms outlined for lease of the building and use of the brewing equipment.
SEAR, with principals purportedly based in Texas, had announced its plans in April 2010 to launch a contract brewing operation and re-name the facility the “Bayfield Beer Co.” Steamworks, which closed the Bayfield facility at the end of 2009, was anticipating the contract brewing production by SEAR to make up for its lost capacity.
“It’s probably an understatement to say that we are disappointed,” said Kris Oyler, Steamworks co-founder. “We entered into the agreement with SEAR in good faith but they did not fulfill the obligations outlined in the lease and we could not grant them possession of the building. What we did learn in the process, however, is that a contract brewing market exists, beyond just Steamworks’ needs. Breweries that had run out of capacity were lining up to brew beer with SEAR at the new Bayfield facility.”
Contract brewers essentially brew “on contract” for other, established labels, reminded Oyler, and traditionally do not brew under their own label. According to Oyler, with the existing potential interest from other breweries, establishing the Bayfield facility as a contract operation as SEAR had planned remains a very viable business possibility for the right investor or entrepreneur.
“We would prefer that the building and the brewing equipment go as a package,” said Oyler. “In the absence of a new entity to run the facility, we are opening it to assist Ska Brewing over the next couple of months. They are out of capacity at the Bodo location and have new tanks on order, but those have been delayed. We have the tanks, and they can use them to do their own brewing. It makes sense to not have the facility idle, as well as to help our fellow local brewer.”
Prior to SEAR’s arrival in Bayfield, Steamworks had entertained interest from a number of different entities for both sale and lease. SEAR was the only brewing-related proposal.
“We’re almost back to square one,” said Oyler who noted that legal action against SEAR is under consideration. Those interested in the potential business opportunity at the Steamworks Bayfield facility are encouraged to contact John Wells, The Wells Group, 970.259.8680.
Steamworks Brewing Co.’s corporate headquarters and brewpub is located at 801 E. Second. Ave., Durango (970.259.9200). For further information, visit www.steamworksbrewing.com.
