New Belgium is expanding its production capacity to satisfy the demand for its craft beer brands.
The brewing company announced its purchase of a Virginia brewing facility from Constellation Brands on Thursday. The 259,000-square-foot production center in Daleville, Va. will focus on the production of its wildly popular Voodoo Ranger Juice Force IPA and the recently-released Fruit Force IPA, according to a March 23 press release.
While the new location will initially produce New Belgium’s craft beer line, the company states is exploring options to start production of malt beverages, seltzers, and other ready-to-drink canned beverages at the facility. New Belgium did not acquire any brands during this deal.
“For a company growing as fast as New Belgium, there’s no challenge more urgent than boosting our ability to make enough beer to meet growing demand,” CEO Steve Fechheimer states in the release. “We’re excited to join the Daleville community, and we’re confident this facility and its local team will help us fuel our growth for the foreseeable future. We greatly appreciate the partnership we’ve seen from distributors and retailers over the past several months as we’ve worked to find a solution.”
Under the acquisition, New Belgium will partner with Constellation Brands to continue producing some of Constellation’s products at the Daleville facility. The roughly 60 employees formerly employed by Constellation at the brewery will receive an offer to transition to roles under New Belgium leadership, at an equal or better pay rate than before.
“One of the keys to our success is bringing a focused and disciplined approach to our beer business, making key strategic pivots when the circumstances warrant it,” Jim Sabia, President of Constellation Brands’ Beer Division, states in the release. “We are pleased that New Belgium Brewing will be able to more fully optimize the Daleville facility’s footprint and are confident they will position the existing talented workforce for additional future success.”
The purchase price or brand details of the co-packing agreement were not disclosed in the company’s announcement. The deal is expected to be completed in May.
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