Sud Savant: Dogfish Head Founder and President Sam Calagione Talks Beer With ...
Privilege of stealing some of Sam Calagione’s time and chatting about some recent happenings with his company. For those not yet familiar, Sam is the Founder and President of Dogfish Head, a Delaware brewery that needs no introduction in craft beer circles. DFH makes “off centered brews for off centered people,” since 1995 and takes great pride to incorporate extremely unusual ingredients not found in our modern conception of beer.I actually got so excited that I forgot to start recording the call right away (I’m not sure if the shaking was the 12 ounces of espresso I had just ingested or just nerves). Just know that there was some small talk and Sam must have sensed that there were some questions on the horizon about curtailing distribution, because he started talking about it almost right away. From where I started recording, this is our conversation. Enjoy! I know I sure as hell did.
Sud Savant : You’re not the only brewery that has been forced to curtail distribution. Recently, you’ve announced plans for another 3 year, $45mil expansion effort to take place to help remedy that.
Sam Calagione : Yeah, somewhere around that big dollar amount between $40-$50 million depending on what we put in. The goal is that we look at our whole footprint of our Delaware production facility and said, “OK, let’s start being smarter about our growth and really put together a plan to maximize how many barrels we can get out of that facility. In other words, we’ve lived through (very luckily) the three years of 40, 50 60% growth and now that we’re about 145,000 barrels this year, going that fast is too hard, too painful, beats us all up as coworkers. It’s unsustainable growth for us. We don’t want to have an IPO. We don’t want to take venture capital money. We don’t want to sell out to a big brewery. So we learned that about 20% growth, for right now, is the manageable number. We’ll grow by 20% this year, grow about 20% next year, and who knows after that.
SS : Are you worried at all about getting back into the markets you’ve left? Other taps are going to hop in those spots in the meantime, right?
SC: We’re all about collaboration when it comes to energy on competition. Yeah, we had to pull out of some states, but we’re hopeful that those spots vacated will be taken by small, “indie” craft breweries. And then when we’re ready to go back in those markets that the customers will welcome us back, though it’s never easy to pull out of markets, by any means.
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Recently, you've announced plans for another 3 year, $45mil expansion effort to take place to help remedy that. Sam Calagione: Yeah, somewhere around that big dollar amount between $40-$50 million depending on what we put in.
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