All hopped up: Brewery industry continues to grow in NH

Feb. 4—Fifteen large silver tanks line the back of the Spyglass Brewing Co.'s new location on Innovative Way in Nashua, allowing the company to double its beverage manufacturing capacity.

It took over a year for the new 10,000-square-foot building to be built, but the craft brewer has been easing into the space at Gateway Hills (a former Digital Equipment Corp. campus), which includes apartments, a hotel, shops and office space as part of a "live, work, play" model.

Spyglass went from a brewing capacity of 10 barrels of beer at a time at its old location off Route 101A to 20 barrels. Each barrel is 31 gallons.

"We can brew twice as fast," said John Wagner, one of the owners. It took a more than $1 million private investment to outfit the interior of the space.

After its grand opening two weeks ago, the company posted a picture online of a "keg graveyard" with more than 30 spent kegs. But the crew quickly brewed fresh batches of Spatial Proximity, a double India Pale Ale and Farmhouse, a dry hopped table ale.

"We are used to brewing eight kegs a week," Wagner said. "So this is a big change for us."

Over the past decade, the number of breweries in New Hampshire has grown from 15 in 2011 to more than 100 today. More are on the way, including Republic Brewing Co., which is set to open on Old Granite Street in Manchester next year. Others — like Kettlehead Brewing Co. in Tilton — have expanded into second locations.

In 2021, the state had 98 craft breweries with a total economic impact of $457 million, according to the New Hampshire Brewers Association. There are three main license types in New Hampshire: nano, beverage manufacturer and brewpub.

The association lists at least five breweries "coming soon" on its website.

The continued growth doesn't surprise Kirsten Neves, who is president of the association and co-founded Tuckerman Brewing Co. in 1998.

"I think people are in tune with supporting locally made products, and brewery tap rooms provide a casual unhurried atmosphere to gather with friends and families," she said.

She sees the industry as able to sustain itself, with many breweries in New Hampshire producing less than 500 barrels of beer per year and selling it from their own taprooms. Many are still working to get past COVID restrictions and pursuing projects on hold for years, Neves said.

The past year brought supply chain issues, increased costs of materials and staff shortages for many breweries across the entire industry.

"I would say we are almost back to pre-pandemic normalcy, but not 100%," Neves said.

According to the National Brewers Association, 550-plus breweries opened in the U.S., while 200-plus closed in 2022.

Some good news: Prices for supplies are expected to come down from 2022 peaks, and total brewery employment will increase in 2023. The bad news? Brewery openings nationally will be the lowest in more than a decade, and distributed craft volume is not expected to increase.

Queen City brews

Republic Brewing Co. is set to open sometime next year at 72 Old Granite St. in Manchester. The 7,320-square-foot building is next to Hometown Coffee Roasters.

The venture is from Peter Macone, who was managing partner of Campo Enoteca and Republic Cafe, on Elm Street in Manchester, which closed on New Year's Eve. A website for Republic Brewing has been launched, which says only "Coming Soon," with static animation suggestive of an old black-and-white TV. Some of the decor from Republic Cafe will be incorporated into the new space.

Macone teamed up with Mike Brown, owner of Hometown Coffee, who will serve as the head brewer.

"Mike brewed a few beers, and I tried one and said, 'That is definitely good enough I think as a starting point for us,'" Macone said.

Their business plan calls for six beers on tap when they open, with the first recipe being an India Pale Ale. Most of the beer will be sold on-site, but they might sell to a select number of stores or restaurants.

"We obviously have a coffee shop next door, so we hope to have a nice coffee porter or coffee stout," he said.

Macone hopes to use a lot of the farm-to-table vendors from Campo, with a menu built around food like tacos, nachos, burgers and fries.

He said downtown Manchester has lacked a brewery or brewpub for some time. The location has easy access right off Interstate 293 and is close to 250 apartments being built near the Market Basket.

"It's fascinating that we've gone this long without there being a brewery downtown," he said.

The closest brewery is Stark Brewing Co., a longtime fixture on North Commercial Street in the Millyard.

Further expansion

In November, Kettlehead Brewing Co., which opened in Tilton in 2017, opened a second location at the Stevens Mill in Franklin.

Owner Sam Morissette said Kettlehead shifted from a brewpub to a distribution model shortly after the start of the COVID-19 pandemic in 2020. A larger space was needed to meet the growing demand for the product in stores.

"We wanted to get in early and be ahead of the game," he said. "We hope to help grow the spot and grow the area."

The Franklin location includes a 30-barrel system, and Tilton is being used to develop new brews. The company re-released Dinosaurs Skiing In The Sky, a New England double IPA.

Recently, Kettlehead partnered with Homegrown Distribution to make its beer available in Massachusetts and Rhode Island. The company received a loan from Franklin Savings Bank for equipment and other essentials for the second location.

Spyglass does not distribute, but stores will pick up products to sell on their shelves and restaurants buy kegs for their taps.

"During COVID is when we actually expanded a lot because we were able to make a lot of cans," Wagner said.

The new space includes a mezzanine level, over a massive walk-in cooler, which overlooks the entire production facility.

Wagner opened Spyglass in 2018 with three friends who all worked together in software. He planned to brew part-time while continuing to work. He gave up his day job a year later to focus on brewing.

The taproom's capacity grew from 46 guests to 270 at its new location, which includes a full kitchen. The menu includes gluten-free food options and a cider from North Country Original Press in Dover.

The company brews new beers every week, and Wagner too says the craft beer "culture" is flourishing.

"It is crazy how it has grown," he said. "And you keep thinking, 'Is there a bubble here?' Very few go out of business."

jphelps@unionleader.com