BEMIDJI — Bemidji Brewing is being partially acquired by Fulton Brewing, which is also launching a new Minnesota-based collective for craft beverage brands.
The companies announced Tuesday, Aug. 11, that the acquisition will go into effect at the end of October.
It builds on a production partnership between the breweries that began about three years ago. That partnership allowed Bemidji Brewing to expand production beyond the capacity of its downtown Bemidji facility, according to co-founder Tom Hill.
“In our production facility in downtown Bemidji, we can max out about 4,000 barrels, which we've been at for the last couple of years right now," Hill said. "And we teamed up with Fulton a few years back to have them help us co-pack some of our beer.”
The new collective is called True North Beverage and includes Fulton Brewing, Finnegans and Fulton’s line of sparkling THC waters. The collective provides shared production, sales, marketing, distribution and other resources.
"They'll be taking over our wholesale division, but the taproom is going to be wholly separate and sovereign and locally owned and continue to be operated right here in Bemidji," said Bemidji Brewing co-founder and President Justin "Bud" Kaney.
He and Hill said in a Tuesday studio interview at KBXE that the move will help the brand reach the southern part of the state.
"This is very much going to help our brand reach places that we couldn't quite get to with our production limitations here," Kaney said.
As other producers navigate rising production costs, changing consumer preferences, increased competition and regulatory uncertainty, Fulton Brewing officials stated the acquisition could serve as a model for the industry's future.
“Our belief is simple: Minnesota has built some incredible beverage brands, and they deserve the opportunity to grow without losing what made them special in the first place,” stated Ryan Petz, the CEO of Fulton Brewing and True North Beverage.
“Our work with Bemidji Brewing showed us what is possible when complementary businesses share resources and expertise. True North Beverage is designed to build on that model.”
KAXE News Director Chelsey Perkins contributed to this report.
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