Brewing competition: Need for growth fuels Greenbush expansion into South Bend

Take a walk down the beer aisle of any grocery store and you’ll quickly gain a sense for how competitive the craft beer business has become.

Craft beers with exotic names and labels battle it out against each other and the national brands for the attention of consumers on store shelves, and the struggle continues into restaurants and pubs where they compete for taps.

Now take a drive through a rich craft-brewing area like southwestern Michigan or Indianapolis, and it’s easy to understand some of the problems facing the industry.

“Nowadays you can’t just make beer, put out a sign and expect you’re going to succeed,” said Mark Lasbury, managing editor of Indiana On Tap, an online publication and marketing business targeting Indiana craft brewers and enthusiasts.

Sales growth isn’t the same as it was only a few years ago when double-digit gains were the norm. According to the Brewers Association, sales of craft beer only increased by 7% in 2018 but still managed to take about 24% of the overall beer market, which has flattened.

Lasbury believes the lack of growth in the overall beer market, in part, is the result of the success of liquor and other beverage producers in winning over some younger consumers with hard seltzers and other new drinks.

But the overall flatness of the market and the increasing number of small brewers is resulting in more pressure, he explained. Though the state has lost 10 breweries and others have merged, Indiana already has gained 16 new breweries so far this year, he said.

The increasing competition and the slowdown in growth explains why a popular destination such as Greenbush Brewing Co. in Sawyer, Mich. plans to open a taproom in space that’s become available at the Martin’s Super Market at Erskine Plaza in South Bend.

Depending on its ability to secure the necessary permits, Greenbush hopes to have the location open around Halloween, said Justin Baney, chief operating officer of the independent brewery. There will be 14 taps at the location with Greenbush standards as well as a unique beer that will be brewed on site.

Surrounded by other craft brewers in southwestern Michigan, it made sense for Greenbush to open its first separate taproom in South Bend because it already has a strong following from the area, Baney said.

“People from the South Bend area are about our biggest year-round clientele,” said Baney, who added that Greenbush is also distributed in Indiana, Illinois, Michigan and Kentucky and soon will be moving into Ohio and Wisconsin.

Greenbush even has additional plans for growth, said Baney, suggesting that some of its more popular food items could eventually be available in grocery stores.

And that same desire for growth in an increasingly tight market is likely what’s prompting many craft brewers to continue looking for opportunities for expansion, including Burn ’Em in Michigan City which recently opened Bare Bones gastropub in LaPorte.

But growth comes with risks and it isn’t for everyone, said Lasbury.

Despite the slowdown, there’s still plenty of room for craft brewers who are focused on small towns and neighborhoods and can develop a community of loyal customers wherever they are located, said Lasbury.

That’s the case at South Bend Brew Werks in downtown and the nearby Studebaker Brewing Co. inside Tippecanoe Place Restaurant.

Neither business is necessarily interested in expansion as much as developing and maintaining a community of patrons who are attracted to the environment and the people as well as the food and beer.

Brew Works has a unique informal vibe and offers game nights, trivia nights, specials and other events for customers, said Steve Lowe, owner of the business. And when possible, it also tries to get involved in community events.

Studebaker brewer Rick Orta, who gained his experience at Greenbush and Burn ’Em, ultimately wants the same at Tippecanoe. “We’re aiming to develop a following that wants to come back for more than just special occasions,” he said.

In less than a year at the helm, Orta has used local ingredients — maple syrup from Bendix Woods and berries from the Blueberry Ranch — to produce special beers at Studebaker and he has also begun working with community organizations.

Lasbury believes that developing a community — a group of supporters that identify with a pub — is even more important than the quality of beer that is produced. “I’ve been to places with bad beer that have a loyal following,” he said.

Lowe and Orta welcome the addition of Greenbush to South Bend, believing that everyone will benefit if the area develops more of a reputation for craft beer.

“More breweries is a good thing,” said Lowe. “It enhances the city’s image and it might help us attract craft beer enthusiasts.”