Founders is ramping up its production capacity

Founders is ramping up its production capacity

Founders Brewing Co has confirmed plans to significantly boost its production capacity as part of a reported US$35m spend.

The Michigan-based firm, the US's 26th largest craft brewer by volume, said this week it plans to add 57,000-square-feet of space to its current site in Grand Rapids as part of a two-phase project. The expansion will include a new, 300-barrel brewhouse, new fermentation tanks and extra offices, the company said in a blog on its website.

Work is due to start later this month on the project, with the company expecting to hit an annual capacity of 900,000 barrels when the expansion is complete.

Local media reported Founders is spending US$35m on the project. It comes on top of a $26m expansion of the firm's brewhouse, cellar and taproom last year.

Mike Stevens, Founder's co-founder & CEO said: “Because of increasing demand from the growing beer enthusiast community, we aren’t able to fill orders right now. We’re expanding because we’re committed to this city, this state and the craft beer community.”

The company, whose brands include All Day IPA and Dirty Bastard, said it plans to add 72 jobs over three years, ranging from managerial to operations to sales positions as a result of the expansion. It currently has a workforce of around 230 people, according to reports. 

As the US craft beer sector continues to see rapid growth, other producers have turned to financial help from private equity to help with expansion. Atlanta-based Sweetwater Brewing Co was the latest to do a deal with private equity