No-Li Brewhouse’s John Bryant knows you have questions about his plan to invest as much as $8 million in a new production facility in Spokane, Washington.
Why take on that big of a project? In a recession? During a pandemic? With a potential second wave of COVID-19 possible in the fall and winter? And projections of hundreds of craft breweries closing their doors by the end of 2020?
Bryant doesn’t hesitate in listing off the reasons why his family’s craft brewery is ready for a third facility — as first reported by The Spokesman-Review — that would open in the next couple of years.
The Spokane, Washington-based craft brewery is already butting up against its capacity constraints. It could keep adding expensive stainless steel tanks to its existing facilities, or it could make a commitment to the community and try to make Spokane a “craft epicenter” and establish the first regional brewery in the city since Prohibition.
“I think our customers are really hungry for that, and I think it’s deeper than just making beer,” Bryant explained. “It’s definitely a community brand, and you’re kind of going against the grain here by doing an expansion in a pandemic, or wherever we’re going, or a recession or whatever it may be. But I think now’s the time to do it.”
Bryant, in his impassioned way, ticks off the reasons why the time is now:
- The quality of No-Li’s beer has never been better.
- The company’s innovation pipeline is churning, with hazy beers and its Day Fade hard seltzer brand gaining traction.
- The community support behind the brewery during the pandemic has not just kept it afloat, but helped it grow.
- And the brewery’s team is ready for the challenge.
“We believe in this brand,” Bryant said. “We believe in this community. And if we’re financially diligent, we can pull this off. Is it a risk? It absolutely is. Sometimes, in the greatest times of risk is when you make the boldest decisions.
“We work closely with the bankers, and we work closely with our accountant and our CPA and our projections and our teams, and it was kind of a unanimous decision,” he added.
Bryant knows it won’t be easy. There are reasons Spokane hasn’t been home to a regional craft brewery since Prohibition.
“You see the hurdles, and you wonder why,” he admitted. “Well, it’s not that huge of a city. It’s four to five hours in the next closest metropolitan city. Freight can be expensive. It’s all those things that make it a setback.
“And it is more expensive here to make beer than to contract brew with somebody, there’s no doubt about that. But it’s really a commitment and investment back into the community and the 80-plus people that work here already and their families,” he continued.
No-Li’s upward trajectory over the last few years keeps pushing it toward capacity. In 2019, the company attained regional craft brewery status — those companies making between 15,000 and 6 million barrels of beer — increasing volume 11%, to 15,750 barrels of beer. All of that beer is sold within a six-hour drive of the brewery.
For 2020, Bryant is projecting growth, aiming for 17,500 barrels.
“Through the pandemic, without draft or much of any draft sales, we actually grew as a company,” he said. “And that’s a direct reflection and a thank you — when I say community, that is our distributor partners, our retail chain corporate buyers, our store managers and then the ultimate buying customer.”
No-Li is still in the site selection process for the proposed 30,000 to 50,000 sq. ft. facility, which would feature a taproom. The company is reviewing four potential locations that would either be ground-up builds or require retrofitting of existing facilities.
“It doesn’t mean that one of those is going to end up [being the location], but I think that we’re close,” Bryant said.
No-Li is funding the project through a bank loan, cash flow and cash reserves.
“This is my life’s work. This is my family’s. It’s the people who work here,” Bryant said. “Is there a big risk? I’m gonna tell you straight up, of course there is. Is the downpayment we can make with cash, then cash flow and then substitute with a bank loan, make it manageable? It absolutely does.”