Madison, Wisconsin’s Ale Asylum will continue under new ownership, with no interruption in production or brewpub operations, the Wisconsin State Journal reported.
The initial acquisition proposal by a group of buyers was accepted early last week, with a final deal for the brewery to be finalized by the end of the year, Ale Asylum co-founder Otto Dilba told Brewbound in an email. While the buyers have not been named due to a nondisclosure agreement, Dilba said they are “local entrepreneurs, with some other businesses in the area.”
“They understand the importance of community and taking care of their staff and guests,” Dilba said. “On a personal and professional level, their goals and forward thinking align very well with ours.”
Dilba, who also works as VP, secretary and treasurer, as well as co-founder, president and brewmaster, Dean Coffey, will stay on in their same positions; something that was not initially planned when deciding to sell. However, Dilba said he and Coffey are excited to continue “as stewards of the brands for as long as the buyer can stand either of [them].”
All other Ale Asylum staff — which were cut from about 50 employees to 20 during the COVID-19 pandemic — will keep their positions as well.
“It was far more important to keep the Ale Asylum brands in the market in perpetuity and ensure continued employment for our staff,” Dilba said. “As stewards of the company, these are and have always been our greatest responsibilities. The most seamless way to accomplish these goals was to stay in place.”
The intended sale of Ale Asylum was announced in August by New Mill Capital, an asset disposition firm handling a then-planned auction of the brewery’s assets. At the time, Dilba said the decision to sell was made earlier in the month due to “myriad factors,” including operational costs. The new buyers reached out to express interest within minutes of the announcement, Dilba said.
An auction of Ale Asylum’s equipment and assets — including its 30-barrel, 5-vessel brewhouse — was scheduled for October 6-13, but has now been canceled. Additionally, the company’s 45,000 sq. ft. brewery and restaurant, which were scheduled to close at the same time of the auction, will remain operational.
“Our No. 1 goal is to make certain the Ale Asylum beers continue in perpetuity moving forward for years to come,” Dilba told Brewbound in August. “Our preference is to remain committed to producing and distributing from our existing location through acquisition or partnership.”
Part of the new ownership group’s plans is to negotiate a new leasing agreement with the brewery’s landlord Wörtlord, as the monthly lease rate has become “insurmountable,” Dilba told the Journal. If a new deal cannot be reached, Dilba said the new ownership group intends to move operations to a new location.
“Many great ideas are in the works for implementation shortly after ownership transition, both at the brewpub facility and in distribution,” Dilba told Brewbound. “I can tell you that the new owners share with us a desire to not stand still, but rather continue to improve and innovate. We’d rather unleash these new endeavors at our own pace but big changes are coming this spring and beyond!”
At its peak, Ale Asylum produced an estimated 22,734 barrels in 2015, according to data shared by the Brewers Association (BA) in the New Brewer magazine. The company’s volume has steadily declined in the years after — losing its regional brewery status and becoming a microbrewery in 2019 after producing 12,950 barrels of beer. However, the company increased production 15% in 2020 to produce approximately 14,5000 barrels, according to Dilba.