Brewery Expansion Insights: The Veil Brewing Co.

Posted on 11.21.18

Brewery Expansion Insights: The Veil Brewing Co.

Expansion Considerations for Craft Beverage Companies

Dave Michelow, president and co-founder of The Veil Brewing Co.; Patrick Murtaugh, co-founder of Hardywood Park Craft Brewery; and Brad Cooper, founder of Steam Bell Beer Works and Canon & Draw Brewing Co. shared their unique insights on craft brewery expansion considerations during Keiter’s Fall EmergingRVA event. The panelists discussed financing, branding, and hurdles they have faced in expanding their tasting rooms and manufacturing facilities.

In this article, we feature highlights of comments from our panelist, Dave Michelow from The Veil Brewing Co, a craft brewery located in the Scott's Addition neighborhood of Richmond, Virginia.  

Q: What considerations influenced the selection of the location of your satellite breweries?

We really focused on keeping to our original business model. We wanted to own the real estate and situate the new locations in urban revival areas similar to our Scott’s Addition location.

Our second location is scheduled to open in late spring of 2019 in the Ghent neighborhood of Norfolk. The area is being revitalized into what is now called the Railroad District. The retail space in the area is set to include other breweries, restaurants, and coffee shops. It really mirrors the Scott’s Addition area when we opened the original location in 2016. It will be a natural fit for our brewery.

We will be adding a third location in the “Southside” of Richmond on Forest Hill Avenue. The location is currently undeveloped but it will be a part of a mixed-use development that will include restaurants, retail, and apartments. The Forest Hill location is also a neighborhood in upward transition and we are excited to open additional location that will support and enhance the community.”

Q: Looking to the future, what do you see for the local craft brewery market concerning competition?

“Brewers are not only competing with other breweries for the consumer's dollar, but now entertainment venues such as bowling alleys, arcades, golf venues, shuffleboard etc., are serving a nice selection of local and regional craft beers, or brewing their own beer in-house. We do have a singular focus on our quality beer but, as time goes by, having additional amenities onsite is going to be part of the strategy for most breweries. Craft brewers will need to provide a holistic customer experience in order to compete in the market.”

Q: How do you approach the supply and demand dynamic in forecasting and budgeting for expansion and its impact on your other locations/product lines.

“We really rely on our accountants and finance consultants to assist us with budgeting, forecasting, and business advice. It’s very important to have a team of professionals that understand your business and your growth goals.”

Read more craft brewery insights from our other panelists, Hardywood and Steam Bell. Questions on expansion considerations for your business? Contact us. We can help.

Keiter is focused on supporting emerging businesses and their owners to successfully manage and grow their businesses.  Interested in joining us for future EmergingRVA educational and networking events? Contact us. 804.747.0000 | information@keitercpa.com

The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.

Posted by: Keiter CPAs

Keiter CPAs is a certified public accounting firm serving the audittax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial servicesconstructionreal estatemanufacturingretail & distribution industries and nonprofits. We also provide business valuations and forensic accounting servicesfamily office services, and inbound international services.

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