More than two months after reworking plans for a second brewing facility in Virginia, Oregon’s Deschutes Brewery today announced it has finally closed on a long-anticipated $3.2 million deal to acquire 49 acres of land in Roanoke.
“We are beyond excited to reach this point,” Deschutes president and CEO Michael LaLonde said, via a press release. “With our shared appreciation of fine, craft beer and the great outdoors, Roanoke has already come to feel like our second home.”
In April, the Bend, Oregon-headquartered craft brewery essentially hit the pause button on the Virginia location, renegotiating an incentive package in order to maintain “flexibility” on the timeline, size and scope of the project. As part of the altered arrangement, Deschutes agreed to buy the plot of land in order to free itself from a string of performance-based incentives that the original deal would have triggered.
Deschutes first announced plans to build a $95 million Roanoke brewery in March 2016. Under the original project timeline, Deschutes was slated to break ground in June 2019, start commissioning and flavor matching in 2020 and begin shipping beer brewed at the facility in 2021.
In an April interview with Brewbound, LaLonde said the timeline, as well as plans to build a sizable production facility, remained intact. However, he struck a more cautious tone in today’s announcement, saying the company will focus on building “something unique, economically sustainable and that supports the community.”
“During the next year, we will continue to watch the craft beer industry carefully and adjust our building plans accordingly,” he said.
A press release with additional details is included below.
It’s Official! Deschutes Brewery Closes Deal for Virginia land purchase
Bend, Oregon – Today, Deschutes Brewery announces the $3.2 million purchase is complete on 49 acres of land within the city of Roanoke, Virginia. This marks the conclusion of the Oregon brewery’s four-year search for a place to open a new east coast production and distribution facility. The craft beer pioneer celebrates its 30th anniversary this week, having first opened its doors in downtown Bend, Oregon, in 1988.
“We are beyond excited to reach this point,” said Deschutes Brewery President and CEO, Michael LaLonde. “With our shared appreciation of fine, craft beer and the great outdoors, Roanoke has already come to feel like our second home. Our next step now is to come out and throw a big party on July 14 with our 400-foot Street Pub community fundraiser event. We want elected officials, business and nonprofit leaders and drinkers of our damn tasty beer to know just how much we appreciate all the support and partnerships.”
In May, the brewery altered purchase plans, moving from an incentive-based deal to an outright land purchase. The move gives Deschutes flexibility on timing and scale of the new facility, which is necessary for long-term health during an uncertain time in the craft beer industry.
“Our focus now goes back to planning something unique, economically sustainable and that supports the community,” said LaLonde. “During the next year, we will continue to watch the craft beer industry carefully and adjust our building plans accordingly.”
About Deschutes Brewery
Family and employee owned since 1988, Deschutes Brewery – Bend’s original brewpub – has become the cornerstone of Central Oregon’s legacy craft brew culture. Known for defining beers such as Black Butte Porter, Mirror Pond Pale Ale, and Fresh Squeezed IPA, the brewery also keeps fans on the edge of their bar stools with the release of small batch experimental beers. Now available in 30 states and Washington, D.C., Deschutes’ flagship brewpub has been joined by a main brewing facility overlooking the Deschutes River in Bend, a pub in Portland, and in coming years, a new east coast brewery in Roanoke, Virginia. www.deschutesbrewery.com