USA, DE: Two Delaware breweries close their doors

Two Delaware breweries closed their doors in recent months, including 16 Mile Brewing in Georgetown, marking the first closure of an in-state production brewery in two decades, The News Journal reported on September 28.

The 16 Mile shutdown was announced with a sign on the brewery's door on Monday, Sept. 24:

"We appreciated your business and are sorry to inform you that we have decided to close 16 Mile Brewery and Tavern indefinitely. Thank you for your patronage and support over the last nine years."

The reason for the closure is unknown. Owner Brett McCrea did not return phone calls and has not made any public announcements.

In addition to the loss of 16 Mile, the in-house brewery at Pizza By Elizabeths in Greenville, Frozen Toes, stopped production over the summer.

The reason for that move is not as mysterious.

"Everything was good with the beer, but I was starting to spread myself too thin," says Paul Egnor, who ran brewing operations while also serving as executive chef at the pizza restaurant.

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“The restaurant and my family took precedence over the beer,” says Egnor, adding that he and his wife had three children during the brewery's four-year run.

Frozen Toes produced more than 30 beers during its time, all of which were sold exclusively at Pizza by Elizabeths, including specialty brews such as Pizza Party, brewed with tomatoes and fresh herbs, and Maya Jane, a peach and jalapeno Hefeweizen.

After years of nearly uninterpreted growth, the state's craft beer industry now boasts nearly 25 breweries.

And as competition grows with a trend toward smaller, hyper-local breweries, Delaware beer historian John Medkeff Jr. expects more closures in the coming years.

"It wouldn't be surprising. It's inevitable. But there may be more openings than closings," says Medkeff, the Wilmington-based author of "Brewing in Delaware." "Market forces and other things come into play and it's just the nature of business. They all can't last forever even though we might like them to."

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In the days since 16 Mile Brewery shut its doors, the cause has become somewhat of an enigma.

Its social media accounts vanished and its official website is "temporarily down."

The Georgetown beer-maker is the first Delaware-based production brewery to close since 1998's loss of Wilmington's Rockford Brewing Company.

Georgetown Mayor Bill West said he spoke to McCrea on Tuesday, but McCrea offered no comment on his decision.

"I think he was heartbroken that this had to happen," West said, adding that it's difficult to compete without more dining options beyond a food truck. "I think it’s a big thing with these breweries shutting down. People want to be able to eat, have a few beers and not worry about being arrested."

West says McCrea had presented plans to Georgetown officials to build a restaurant on site, but eventually "decided he didn't want to go that route."

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In the summer of 2013, 16 Mile expanded outside of Georgetown, opening a spin-off restaurant 80 miles away at the other end of the state in the former home of Stone Balloon Tavern and Concert Hall in Newark.

It only lasted 1½ years before closing, replaced by the location’s current tenant, Stone Balloon Ale House.

"That couldn't have helped," Medkeff says. "They were really ramping up at that point and had unique, catchy aluminum bottles. I never heard the true story behind what happened there."

Bart Watson, chief economist for the Brewers Association, says there are several reasons why small-scale craft breweries fail.

Financial constraints, disagreements among partners, landlord issues, the owner wanting to move on or the everyday struggle of staying ahead on trends and remaining relevant are all pressures that can make a small business like a microbrewery crack.

"[Brewery] closures are going up, but that’s just a factor of having more breweries than we’ve ever had in the U.S.," Watson says.

While Medkeff says he doesn't know the reason for 16 Mile's demise, be believes the brewery wasn't nimble enough to keep up with quick-changing trends in the beer world.

"They were doing all ales and what they were doing was good, but the way the market is now, you have to react quickly and be able to produce the type of beers people want to drink," he says. "I just don't know they were doing that with their flagship beers. They weren't flexible. They were pigeonholed into four or five beers."

Last year, 165 microbreweries and brewpubs shut their doors in the United States. That's the highest number the Brewers Association has on record, though it accounted for less than 3 percent of the market, Watson says.

Medkeff said he wasn't surprised a Delaware craft production brewery shuttered after a 20-year streak without any closures.

"If you go outside of Delaware's border and look around, it's more common than not that production breweries fail for all kinds of reasons," he says. "So the run was a good one and it's something to be proud of."

Watson said that in this day and age, the "bare minimum" for surviving as a brewery is "making delicious, high-quality beer."

"You need to stand out," he added. "I think the buzz word is differentiation, but how that looks varies on business model and location."

That word resonates with Lori Clough, who co-owns 3rd Wave Brewing Co. in Delmar. 16 Mile was the closest Delaware brewery to Clough’s business.

“We were all shocked,” Clough says of 16 Mile's closure. “It’s always sad to see any business close and one in our industry is especially sad.”

Clough said she understands the daily grind of making good beer, following trends and selling product.

“It’s a tough, tough business,” Clough says. “There’s a lot of competition.”

The number of breweries in Delaware has tripled since 3rd Wave opened in 2012, according to Brewers Association figures. In the years since, Clough has seen double IPAs, New England IPAs, fruity sours and canned beers take off.

“In a few years, I don’t know what it will be,” she said. “Every day is a challenge just to stay at the top of your game, to stay relevant to what’s going on in the industry.”

Staying on top of trends isn’t the only challenge: there are bad batches, experiments that taste less than stellar and bigger brewing companies buying all the good hops.

Sept. 28 marks the sixth anniversary since 3rd Wave moved into the former home of Evolution Craft Brewing Company after it moved to Salisbury. 3rd Wave moved in only five months after Evolution left.

Mayor West is hoping a similar move will happen in Georgetown and hinted that talks with area businesses were already underway to open either a brewpub or sports bar.

“I think that’s the way of the future and I want one in Georgetown,” West says.

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