Several big-name breweries leaving Maryland as costs, competition grow

Several big-name breweries are saying cheers to the state of Maryland, picking up and moving their operations elsewhere.

FREDERICK, Md. - Several big-name breweries are saying cheers to the state of Maryland, picking up and moving their operations elsewhere.

Guinness, DuClaw and Flying Dog recently announced their departures. All three are major players in the state's brewery game, so it's a big blow.

DuClaw's production facility in Maryland is shutting down soon and relocating to New Jersey following a merger with River Horse Brewing Company in New Jersey.

"The operations side of brewing is challenging, and at the end of the day I was spending too much of my time and energy chasing the latest mechanical, supply or logistical issue, and was taken away from driving the brand the way I wanted," DuClaw founder Dave Benfield said in a statement. "This partnership will allow me to focus on what I am best at."

Guinness and Flying Dog are both moving operations to New York after being acquired by FX Matt Brewing Company.

In their statement, Guinness said, "After conducting a due diligence process, which also considered options to keep production of Baltimore Blonde in the state, the supplier that best met the business case and production timeline was FX Matt Brewing Company in New York.

Our Guinness Open Gate Brewery will continue to be a destination in the Baltimore area brewing a variety of experimental beers in the 10-barrel innovation brewery on the ground floor of the visitor center. The Guinness Open Gate Brewery’s innovation brewing and hospitality operations are not changing in any capacity – we are open and continue to welcome visitors to our taproom!"

Guinness adds that all planned events, plans, tours and gatherings will still be taking place.

Jim Bauckman with the Brewer's Association of Maryland said there are about 140 craft breweries in the state currently.

Alongside these major departures, some smaller ones are up for sale or shutting down completely. But we're told it isn't just a Maryland-specific problem. The brewery industry as a whole is being impacted by a tight market and lots of competition.

"Maryland, right now, is in a place where our legislature has been wholly supportive of our industry for the last three or four years," Bauckman said. "They've come on board to make really great changes to the laws here that have allowed breweries to have a lot more opportunity than they used to."

Karl Knoop is the general manager at Monacacy Brewing Co. in Frederick, which has been around since 2012.

"The cost of raw materials has gone up considerably over the past few years so being able to develop innovative recipes while keeping cost in mind is a challenge," Knoop said. "Also distribution has become more challenging than ever."

Chris Sands hosts a podcast called UnCapped out of Frederick. He said the brewery market is making a so-called correction after a boom over the last decade.

"COVID was very hard on breweries not being able to be open because the greatest profit margin for a brewery is selling a beer through a taproom," Sands said. "And then there is increased competition as well."

Sands said it's forcing breweries to make decisions that mean cutting costs and consolidating or merging with other breweries like DuClaw and Flying Dog have done.