To the untrained eye, most brewing companies seem pretty much the same, but now more than ever, there is great variance from business-to-business in size (both large and small), service models and product delivery methods. So, there was no one-size-fits-all fix for local breweries and brewpubs when COVID-19 closures and restrictive regulations came into play in 2020 and continued into 2021. Each beer manufacturer was forced to develop its own game plan, and for some, there was no other option but to close their doors. Many brewery owners who went this route did so knowing there was an all-too-real possibility they would be doing so permanently.
While a number of brewing companies did succumb to the pandemic, by and large, local craft-beer interests persevered, drawing on the inherent ingenuity the industry is known for to weather the storm. After all the ups and downs, the stress and uncertainty, the owners of those businesses have a lot to be thankful for this holiday season.
The waiting is the hardest part
Perhaps no single company was dealt a blow as deflating as Bay City Brewing. After four years of building a fan base from its brewery across the street from Pechanga Arena, the company acquired a high-profile site in downtown’s East Village for a two-story restaurant with a rooftop bar. After well over a year of construction and a few friends-and-family mock services, the satellite venue was slated to open March 16, 2020. Instead, it was shuttered along with Bay City’s Point Loma tasting room on March 13, 2020.
That same week, Kevin Dyer, the owner of Temecula-based Black Market Brewing, closed his satellite brewpub in San Diego’s College Area just shy of its one-year anniversary. At the time, he expected to be closed only a few months and attempted to reopen in June, but with SDSU no longer in session, there wasn’t enough clientele to support the decision, leading him to shut down once again.
After considerable investments, it was imperative for both companies to get their would-be profit centers back online, but a number of factors —shifting regulations followed by the staffing challenges facing nearly every industry — made it difficult. Still, both operations pushed forward and managed to reopen.
Bay City’s East Village brewpub reopened in April, in time to benefit from the baseball season in the spring and early summer months when the Padres were performing at their best and drawing large crowds. It wasn’t until late summer that the company was able to open its Point Loma tasting room, but it has since resumed its status as a pre- and post-game hot spot for San Diego Gulls hockey fans, allowing the company to recoup some losses and start focusing once more on the future.
It wasn’t until the first weekend of November that Black Market welcomed fans back after replenishing its taps with a combination of beers brewed on-site and at the company’s Temecula facility. Its kitchen operation has temporarily been replaced with food trucks, but Dyer is pleased to be back even if it’s in a slightly diminished state, and was encouraged by the amount of local support he received during the brewpub’s closure.
“The community really wanted us to open back up, so we didn’t want to delay any longer,” says Dyer, who is in the process of planning an official grand-opening — or reopening — in the coming months.
Then there’s the locally unique case of Division 23 Brewing, a small brewery operated by Miramar HVAC interest, DMG Corporation. This beer-manufacturing offshoot was built in a ground-level space beneath its parent business and includes a mancave-like tasting room outfitted with numerous air-conditioning units, allowing it to double as a showroom and entertaining space for clients.
When the pandemic took hold, owner Kellen Smith closed the brewery indefinitely. While it pained him to see his staffers go on unemployment, having Division 23 as a secondary business allowed him to go dark and wait however long it took until he felt the time was right to come back. For Smith, that was at the end of August when, after spending six months getting equipment back in order and analyzing every aspect of the business to raise efficiencies, his team held its grand opening.
“Having my employees back and willing to work through these restrictions was the biggest thing that allowed us to reopen,” says Smith. “Our regulars have started coming back and shown us the amount of love that was there, pre-pandemic, so Division 23 is getting right back to normal.”
To comply or defy
Over the span of the pandemic, no local brewing entity has been more vocal about the challenges presented by governmental regulations, as well as hospitality venues’ adherence to them — or lack thereof — than the owners of Bagby Beer Co. A large, two-story brewpub situated on a sprawling campus that was once a car dealership along the Coast Highway, the business closed down numerous times in 2020.
The first closure came March 16, 2020, and lasted until July 19, 2020, when the business reopened exclusively for pickup. A couple of weeks later, the brewpub added outdoor dining, which lasted until November 2020, at which point they resumed indoor dining at the brewpub’s main bar. By last December, Bagby Beer closed again following Gov. Gavin Newsom’s issuance of a regional stay-at-home order. During that period, the Bagby’s husband-wife founders became incensed seeing neighboring businesses fully open in defiance of the governor’s order while their interest remained closed. It didn’t help that they found themselves judged by the public simply for doing as they were directed.
“We actually took flak for closing in December when we and every restaurant’s onsite dining were mandated to close. Some folks felt we were ‘following the herd’ versus standing up to the government,” says co-owner Dande Bagby. “We, of course, didn’t see it that way. We have always wanted to do our part to stop the spread of the virus, as well as protect our guests, our team and ourselves. We have trusted the science and shown respect for authority.”
After nearly six years of heavy patronage, the Bagbys feared their family business might never reopen. But thanks to additional funding, understanding vendors, dedicated employees and a number of other factors, they were able to keep the business alive, this despite escalating costs and labor challenges. The brewpub is again stocked with house beer, equipped with a new, completely overhauled menu and it even hosted a large festival devoted to lagers recently. The Bagbys hope to be back to 75 percent of pre-COVID numbers by spring.
“There’s been lots of change, but we are still passionate about brewing and sharing true-to-style, delicious and drinkable beers. We still have our killer cocktail and wine programs, and we are still preparing and serving awesome food from our full-scratch kitchen,” Bagby said. “An increase in consumer confidence, which we believe will come only with more successful eradication of COVID-19, will be a positive step toward stability for us and many businesses.”
Under new ownership
Not every brewing company that returned to San Diego’s suds-scape did so following a COVID-related closure. Oceanside Ale Works, a business that opened as its namesake community’s first-ever brewery in 2006 before shutting down in January 2018 due to an impasse between its pair of founders, then stayed closed amid legal proceedings. The recent expiration of a non-compete clause allowed the majority owner, Mark Purciel, to revive the business following a series of renovations to up efficiency and improve the customer experience.
Since Oceanside Ale Works’ grand opening in July, Purciel, who is also in charge of brewing, has attracted solid patronage thanks in part to events where he has tapped re-released iterations of fan-favorite and award-winning beers.
“The support has been epic from so many friends I have not seen in years, sharing old stories while making new ones and enjoying some good times,” said Purciel.
Guillermo Nassir has gone a different route — taking over an existing brewery and spending the past two years making it his own. He is grateful for the regulars that have kept his Align Brewing going in Miramar. Align operated from 2017 to 2019 until its original owner and brewer Andrew Heino (who remains a shareholder) moved to Hawaii, at which point he handed it off to Nassir, whose primary business, a fermented food-and-beverage brand called Collective Culture, is located in the same industrial park.
Not long after getting in a groove at the brewery, the March 2020 shutdown order came through. It wasn’t until February of this year that Nassir was able to open again. At the time, he and his wife had just welcomed their first son, adding to the challenges of saving the business. But with helping hands all around, he’s continued to brew new beers while also developing tasting-room event programming that has helped bring in customers.
“My partners have been instrumental. They selflessly showed up time and time again to encourage me, help me dust things off, reorganize, restock and brew up a massive variety of beers for our return,” says Nassir.
Finally, there is Mission Brewery, whose founder, Dan Selis vacated his leadership role following a shift in ownership stakes that saw the 14-year-old East Village operation bring on a new CEO. That individual, Dan Partelow, spent 27 years working for Anheuser-Busch InBev, where he spent a decade heading its Craft Brew Alliance portfolio of acquired craft-beer brands.
Partelow’s addition coincided with the August reopening of Mission’s tasting room. The following month, the company’s Dark Seas imperial stout won a gold medal at the country’s most prestigious annual brewing competition, Denver’s Great American Beer Festival.
Giving Thanks
Following successful re-openings—none of which were guaranteed in the pandemic climate—local brewery owners share what they are thankful for this holiday weekend.
“Being able to interact with our regulars has been an amazing thing that we underappreciated in our previous years. We are very thankful to have the ability to have fun with them again.”—Kellen Smith, Owner, Division 23 Brewing, Miramar
“Undoubtedly, the massive support from our clientele. It’s one thing to offer products and experiences, but there’d be nothing without those to share them with. Most important is the support of the friends and family that encouraged us to keep our heads high and continue forward.”—Guillermo Nassir, Align Brewing, Miramar
“I am so thankful for the overwhelming support from all the customers, fellow brewers and, of course, my family for having my back.”—Mark Purciel, Owner & Brewmaster, Oceanside Ale Works, Oceanside
“I feel thankful that I have received a lot of positive feedback about opening the site back up and being in a position that I didn’t have to go out of business, that I have another opportunity to open the space back up.”—Kevin Dyer, Owner, Black Market Brewing, College Area
“We are thankful that we are still here, still fighting. The future still remains unclear, though.”—Jeff Bagby (pictured above), Owner & Brewmaster, Bagby Beer Co., Oceanside
This article originally appeared in the Business section of the Tuesday, November 25, 2021 edition of The San Diego Union-Tribune