Jamie Bartholomaus, the brewmaster and a co-owner of Foothills Brewing, stands next to a fermentation tank in the brewery room. The restaurant currently accounts for the majority of Foothills’ income. Journal Photo by David Rolfehttp://www2.journalnow.com/content/2008/jun/09/foothills-moving-into-new-markets/?business
By Fran Daniel - Journal Reporter
Published: June 9, 2008
Foothills Brewing on Fourth Street in downtown Winston-Salem is doubling its capacity and making plans to move into new markets.
Foothills produced and sold a little more than 2,330 barrels of beer last year. There are 31 gallons in a barrel, or basically two kegs. In August, the microbrewery will upgrade its refrigeration equipment and add two 60-barrel fermenters, two 60-barrel conditioning tanks and a 60-barrel hot liquor tank to hold hot water.
Jamie Bartholomaus, the brewmaster and one of four owners of Foothills, said that the microbrewery is running near capacity.
"Our inventory levels on our beers have come down a little because we've sold so much," he said. "So sales are doing quite well."
The $250,000 expansion will allow Foothills to do two brews a day for a production of about 6,000 barrels this year.
"It will definitely provide us with all the growth we need for 2008 and 2009 and most of 2010," Bartholomaus said.
If business does well through 2010, the company hopes to add another production building.
Foothills opened on St. Patrick's Day in 2005. The other owners are Matt Masten, Brian Cole and Bob Hiller.
A restaurant operates daily in the front part of the microbrewery's building on Fourth Street, offering American cuisine. The microbrewery is in the back.
The restaurant accounts for 75 percent of the company's overall revenue. But, by the end of 2009, Foothills expects the brewery to increase its sales, accounting for 40 percent to 50 percent of its business.
Foothills' sales -- restaurant and brewery combined -- were $2.4 million in 2007 and are projected to reach $3 million this year. Most of the company's 65 employees work in the restaurant.
Bartholomaus plans to hire two more people to work in the brewery as a result of the expansion.
"Definitely our goal is to keep the restaurant running real steady and to grow the brewery," he said.
Foothills has won several medals for its beers, most recently a gold and silver at the international World Beer Cup in San Diego.
"Winning the medals has given us the confidence to feel that it's worth expanding, that there is demand for our product," he said.
He said that the brewery industry nationwide is ripe for growth and credits Foothills' brand recognition from strong marketing efforts and recognizable logos for a big part of its success.
"Also, our self-distributing really does drive our business here," he said. "We literally see every customer every week."
Foothills, which self-distributes its product in North Carolina only, sells its draft beer in kegs to bars and restaurants. The company recently started expanding into South Carolina but has suspended sales there until it increases its capacity. The company hopes to start sales in eastern Tennessee and southern Virginia by June 2009.
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