Small-town brewery is Iowa's largest craft beer producer
Why it matters: Craft beer is experiencing a decline, and while TG hasn't been immune to it, the brewery is banking on its international fandom and award-winning products to help buoy it during the downturn.
By the numbers: TG sold nearly 36,000 barrels last year, with Big Grove coming in a close second, at around 34,000, per the Brewers Association.
However, while TG's beer sales declined by 7% in comparison to 2023, Big Grove's climbed, thanks to its larger footprint.
State of play: There are a few reasons behind TG's success, says Sam Lewey, spokesperson for Toppling Goliath.
Owners Clark and Barbara Lewey couldn't get the craft beer they wanted locally — they had to drive to Rochester, Minnesota, or La Crosse, Wisconsin. So, they decided to start their own brewery and focused on producing crowd-pleasers like barrel-aged stouts and hoppy pale ales and IPAs.
They opened in 2009, when craft beer was experiencing a surge.
Zoom in: TG got its first big hit with the release of Pseudo Sue in 2012 — a hoppy, hazy pale ale that's become the company's most iconic brew.
That was followed by popular barrel-aged stouts like Assassin and Kentucky Brunch.
The intrigue: The first time they released Kentucky Brunch in 2012, six people showed up, Lewey says.
Now, it's earned worldwide acclaim, including winning the highest-rated beer of 2024, per Untappd Community awards. Bottles of its 2014 release average $1,249, according to Beerblackbook.
People from all over the world have traveled to the taproom in Decorah, Lewey says.
Zoom out: Now TG distributes to 36 states and nine different countries, and that requires planning a year ahead of distribution.
For example: Pseudo Sue was only in 12-pack cans, but Costco wanted to offer bulk for its customers. They created new packaging for a 24-pack of beer.
The intrigue: The brewery is also selling other drinks, including THC drink Merry Rain and spirits like whiskey and gin.
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Miami Herald
2 days ago
- Miami Herald
Craft beer is dying, but this brewer is bucking the trend
Craft beer is in decline. For the first time in nearly two decades in the U.S., more breweries closed in 2024 than opened, according to the Brewers Association. But one brand, Dogfish Head Brewery, is celebrating its 30th anniversary and bucking the trend, expanding its business and staying relevant while others close their doors. Don't miss the move: SIGN UP for TheStreet's FREE Daily newsletter Part of the decline is a hangover from the pandemic shutdowns, which hit restaurants and breweries hard. Even as pandemic restrictions lifted, breweries found themselves in an altered landscape. Many didn't survive. The ones that did faced a new set of challenges. At the top of the list: rising rents and labor costs, supply chain disruptions, and inflation on ingredients and packaging. Then came tariffs, affecting brewing equipment, steel kegs, and aluminum cans. These headwinds made the financial pressures facing many brewers impossible to overcome. Image Source: Bloomberg/Getty Images The entire alcoholic beverage industry has been facing an existential problem: changing consumer behavior. Americans are drinking less beer, particularly younger consumers, who are opting instead for hard seltzers, canned cocktails, nonalcoholic drinks - or skipping alcohol altogether. Recreational cannabis is now legal in 24 states, which is also taking a bite (sip?) out of the market. Then there is the growing use of Wegovy, Zepbound, and Mounjaro, drugs that curb appetite and often reduce alcohol cravings. Related: Beloved brewery faces Chapter 11 bankruptcy, asks for help Amid this perfect storm, Dogfish Head Brewery stands out as an exception - and a blueprint for resilience. The Delaware-based craft brewer is marking its 30th anniversary in 2025 with continued growth and a broader business model that's helping it weather the industry downturn. "Weed, wellness, and weight-loss drugs are all impacting the way people drink," Dogfish Head Brewery founder Sam Calagione told TheStreet in an exclusive interview. "Instead of fighting that, we've expanded the portfolio to meet people where they are." When Dogfish Head founders Mariah and Sam Calagione started making beer for their Delaware restaurant in 1995, they had no idea they were at the forefront of a new industry; twenty years in, Dogfish Head Brewery's sales were reportedly between $110 and $120 million. Then, in 2019, Dogfish Head announced it was merging with The Boston Beer Company, bringing the country's second-largest craft brewer (Boston Beer, maker of Samuel Adams) together with the 13th largest, Dogfish Head. The merger was massive, but it preserved the independent craft brewery status of both brands, as defined by the Brewers Association. Related: Another popular beer and brewery brand files Chapter 11 bankruptcy The Boston Brewing Company acquisition was worth around $300 million in cash and stock to the Calagiones. Following the merger, Calagione joined Boston Beer's board of directors, and he and his wife Mariah are the company's largest individual shareholders outside of Jim Koch, founder and chairman of The Boston Beer Company. Today, Dogfish Head's portion of the Boston Beer Company's sales is around $275 million (out of a total $2.01 billion), according to RocketReach. So what's Dogfish Head's secret? There's more than one. First, Dogfish Head has been making ready-to-drink canned beverages almost since day one. The company distills its own Dogfish Head spirits, including vodka ("Awe-Spray"), gin ("Compelling"), and rum ("Barrel Honey") for use in its Vodka Lemonade, Vodka Mule, and Rum Mai Ta, among other drinks. Dogfish Head's business model, which Calagione calls "beyond beer," isn't limited to just beverages. The company operates a boutique hotel in Lewes, Delaware, as well as brewery and distillery tours that he says draw hundreds of thousands of visitors annually. Retail closings: Popular retail chain to close unprofitable store locationsBankrupt retail chain unloads store leases, key assetPopular discount retailer files bankruptcy, closes all stores This hospitality component adds a revenue stream independent of distribution or retail, and gives the brand a valuable experiential marketing engine. Visitors become loyal customers, and the tours reinforce Dogfish Head's position as a craft pioneer. That kind of vertical integration - product, experience, and lifestyle brand - is a key differentiator in an otherwise saturated industry. Dogfish Head has always been known for its off-centered ales, using unexpected ingredients – from black limes and saffron to Mace and even human saliva – to create bold flavors. One of its earliest successes was Midas Touch, a beer brewed with honey, white Muscat grapes, and saffron, inspired by an ancient recipe found in a 2,700-year-old drinking vessel from King Midas' tomb. The company's bestselling beer today is its 60 Minute IPA, which Calagione says gives him inspiration even as he rethinks his own drinking. "I spend 60 minutes every day on a paddle board or my mountain bike out in the bounty of Mother Nature," he says. "I do that to earn my beer calories for the evening." When Dogfish Head Brewery was founded, Calagione says there were 600 craft brewers in the U.S. Today, there are around 10,000, so there is a lot of competition to fend off, but Dogfish Head is a model showing how craft breweries can evolve into multi-channel businesses that go beyond beer. "Short term we're facing some challenging trends, but we need to remember beer's been around and part of human community building for 10,000 years," he said. "There are a lot of closings and bankruptcies and sad stories," Calagione said. "So we're really excited to tell the story of how we're bucking those trends." Related: Popular Off the Las Vegas Strip casino bar closing The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Axios
17-07-2025
- Axios
Small-town brewery is Iowa's largest craft beer producer
Decorah's Toppling Goliath (TG) sits in a community of around 7,500 people, but its craft beer sales are the largest in the state, according to 2024 Brewers Association data. Why it matters: Craft beer is experiencing a decline, and while TG hasn't been immune to it, the brewery is banking on its international fandom and award-winning products to help buoy it during the downturn. By the numbers: TG sold nearly 36,000 barrels last year, with Big Grove coming in a close second, at around 34,000, per the Brewers Association. However, while TG's beer sales declined by 7% in comparison to 2023, Big Grove's climbed, thanks to its larger footprint. State of play: There are a few reasons behind TG's success, says Sam Lewey, spokesperson for Toppling Goliath. Owners Clark and Barbara Lewey couldn't get the craft beer they wanted locally — they had to drive to Rochester, Minnesota, or La Crosse, Wisconsin. So, they decided to start their own brewery and focused on producing crowd-pleasers like barrel-aged stouts and hoppy pale ales and IPAs. They opened in 2009, when craft beer was experiencing a surge. Zoom in: TG got its first big hit with the release of Pseudo Sue in 2012 — a hoppy, hazy pale ale that's become the company's most iconic brew. That was followed by popular barrel-aged stouts like Assassin and Kentucky Brunch. The intrigue: The first time they released Kentucky Brunch in 2012, six people showed up, Lewey says. Now, it's earned worldwide acclaim, including winning the highest-rated beer of 2024, per Untappd Community awards. Bottles of its 2014 release average $1,249, according to Beerblackbook. People from all over the world have traveled to the taproom in Decorah, Lewey says. Zoom out: Now TG distributes to 36 states and nine different countries, and that requires planning a year ahead of distribution. For example: Pseudo Sue was only in 12-pack cans, but Costco wanted to offer bulk for its customers. They created new packaging for a 24-pack of beer. The intrigue: The brewery is also selling other drinks, including THC drink Merry Rain and spirits like whiskey and gin.
Axios
07-07-2025
- Axios
Some of Washington's top craft brewers saw sales slip in 2024
Four of Washington state's 10 largest craft breweries reported falling sales in 2024, with another stuck at zero growth, according to Brewers Association data. Why it matters: Even Washington's storied craft beer industry is struggling with shifting drinking habits, rising costs and crowded competition, echoing national challenges. By the numbers: Silver City Brewery in Bremerton reported a 21% drop in sales last year, the largest decline among Washington's top 10 craft brewers. Ackley Brands, which bought Redmond-based Mac & Jack's Brewing Co. in 2023, saw a 12% decline. Bale Breaker Brewing Co. in Yakima had a 5% drop in sales, while Iron Horse Brewery in Ellensburg saw a 9% drop. Spokane's No-Li Brewhouse posted 0% growth. Yes, but: It wasn't all gloomy news for big local brewers. Seattle's Georgetown Brewing Co. and Fremont Brewing saw their sales climb. So did Stoup Brewing, which has locations in Seattle and Kenmore, and Black Raven Brewing Co., which is based on the Eastside. Leavenworth's Icicle Brewing Co. saw the biggest increase: 28%. What they're saying: Increased demand for nonalcoholic options and the proliferation of ready-to-drink cocktails are contributing to "challenging times" for local breweries in Washington and elsewhere, Daniel Olson, executive director of the Washington Brewers Guild, told Axios. That said, "we're faring better than most," Olson said. "We're seeing some really good breweries that are making some really good beer, and consumers are recognizing that," he said. State of play: More craft breweries closed than opened in Washington in 2024, he said, mirroring a national trend. Between the lines: Many brewers are adding nonalcoholic options and other products like hard ciders to broaden their appeal, Olson said. Case in point: Fremont Brewing introduced a nonalcoholic IPA in 2023, while Georgetown Brewing bought Timber City Ginger Beer late last year. What we're watching: In a December 2024 report, Bart Watson of the Brewers Association wrote that brewers were bracing for another challenging year in 2025, due in part to market pressures and potential tariff impacts.
