Craft beer OG, Smuttynose Brewing Company is about to hit the auction block according to a report from the AP. The New Hampshire based brand is reportedly a victim of the turn-of-the-century small brand explosion that they helped pioneer.
On March 9, James R. St. Jean Auctioneers will sell off the parcel including the brand name, 13 acre grounds on Towle Farm, brewery, and Hayseed Restaurant. Bidders must be ready with a $250,000 deposit by cash, certified check,or bank check to enter the auction and closing must occur within 55 days. Details here.
Smutty nose owner Peter Egelston informed the staff of the development during a closed door meeting. “I reminded them that the company’s most valuable assets are the Smuttynose brand and the people behind it,” he told Seacoast Online. “With the arrival of a new owner, we anticipate a smooth transition as we are committed to continuity.”
75,000 barrels a year is the brewery’s max capacity, but during the previous fiscal year, output was only at 50%. In an interview with Seacoast, Egelston explained that the original business model called for 20 years of consistent growth, but the recent surge of microbreweries in the market resulted in decreased sales. “This dramatic shift occurred just as Smuttynose committed to a major infrastructure investment with the construction of the new production facility,” he lamented. “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.”
Don’t feel too bad for Egelston. He is maintaining ownership of several hoppy side projects including a pub in town. And, that’s a good thing—over the last two decades, the brewer has racked up award after award for his humanitarian work in the community.