I’ve told this story a million times, but here it is again. When I started working on building Freetail in 2006, I “borrowed” my business model from Sam Calagione and Dogfish Head: start as a brewpub to build our brand, and eventually move into distribution. One small detail in this business model: a brewpub distributing in Texas was illegal. So, our original included a paragraph that explained how we were going to change the law to remedy this minor inconvenience (as I’ve since joked to Sam, who I have the pleasure of serving with on the Brewers Association Board of Directors, “if some guy from Delaware can do it, how hard can it be?”).

The point of retelling this origin story is to say that despite my model and business plan from the get-go, there were more than a few instances when I was less than confident it would become reality. As you know by now, we did change the laws, and we are building our new “production brewpub” (new term I’ve invented to describe the brewpub designed for wholesale production that we are building).

With all those other parts in play, I’m extremely proud to announce that we have partnered with Silver Eagle Distributors to be the exclusive wholesalers of our products for a multi-county region which includes our home market of San Antonio. I’ve had the pleasure of getting to know the Silver Eagle team through our battles at the Capitol, and without their support for statutory reform, brewpubs still wouldn’t be allowed to distribute in Texas.

As I got to know the team at Silver Eagle better, it became clear that they weren’t just the right legislative partner, but they’d also be the right partner for our distribution plans. Their presence, scale, and thirst to grow the craft market aligns greatly with our desire to be San Antonio’s Beer and eventually expand into other markets around Texas. I’m more excited than ever for the prospects of our brand.

See the official press release below.

-Scott

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Freetail Brewing Co. and Silver Eagle Distributors Partner on Distribution Agreement in San Antonio
Date: 3/24/2014
New state laws allow brewpub’s beers to reach the market for the first time

(March 24, 2014) San Antonio, TX – With recent changes to the state’s alcoholic beverage code, Freetail Brewing Co. is able to sell its beer for wholesale distribution for the first time, and it has partnered with the nation’s second largest beer distributor to do so. Silver Eagle Distributors, with operations in Houston, San Antonio and surrounding areas, will be the exclusive wholesaler of Freetail products for a roll-out that will initially include the San Antonio metro area and surrounding counties.“This is a historic moment for our company,” said Freetail founder and CEO Scott Metzger. “We are honored to not only be partnering with one of the country’s premier distributors, but also with an organization that stood beside us in the fight to loosen restrictions on small craft breweries in Texas.”

During the 2013 regular session of the Texas Legislature, SB 515 was passed with overwhelming bi-partisan support. The bill made it legal for brewpubs like Freetail to sell their beer to wholesalers, who in turn can sell to retail license holders such as grocery stores, restaurants, bars and package stores. Such sales were previously outlawed.

“Freetail Brewing Co. has been a favorite of San Antonians since opening its doors in 2008,” says John Nau, president and CEO, Silver Eagle Distributors. “All of us at Silver Eagle are very excited to partner with a business like Freetail that has such a passion for both beer and the local community. We look forward to expanding the brewery’s reach outside of its brewpub so that local residents can also enjoy Freetail in the comfort of their own home or favorite bar.”

In order to meet the market demand for Freetail beer, the company is constructing a 30,000 SF brewery at 2000 S Presa St. in San Antonio. When complete, the facility will have an initial capacity of 6,000 barrels/year, expandable up to 60,000 barrels/year. The company has stated its goal is to be “San Antonio’s beer” and to first expand its presence at home.

“A lot of breweries start out and expand to as many markets as possible. We want to do the opposite by focusing on our hometown and become the first thing people think of when it comes to craft beer in San Antonio,” said Metzger.

Though the San Antonio market will be the primary focus starting out, the company still has eyes on other markets in the future. “Houston, we hear you,” said Metzger, referencing a failed bid to open a Freetail location in Houston in 2011. “While we may not be opening a physical location there, our partnership with Silver Eagle is especially exciting because it gives us the potential to expand to the Houston market when the time is right.”

The initial roll-out, slated for mid-summer, will include draft and 22oz bombers. Cans are projected to be available as early as this fall. The brewery currently has four year-round beers plus a variety of seasonal and limited editions available throughout the year.

About Freetail Brewing Co.
Freetail Brewing Co. is founded on the pursuit of creating exciting, innovative and unique world class beer. We embrace the laid back and fun-loving Texas culture and set out to create products that mirror the lifestyle of our diverse and rapidly growing community. We believe in promoting an increased appreciation of craft products and their responsible enjoyment. For more information visitwww.freetailbrewing.com.