The craft beer industry is shifting, and breweries are adapting to stay competitive. Migration Brewing has successfully pivoted to co-packing and contract brewing, a strategic move that has fueled growth and fostered collaboration among multiple breweries. By offering production capabilities to other brewers, Migration is positioning itself as a leader in an evolving marketplace where efficiency and adaptability are key.
A collaborative approach to brewing
Migration Brewing’s contract brewing program enables participating breweries to scale production without investing in costly infrastructure. This model allows breweries to expand their reach while benefiting from Migration’s award-winning facilities. With market conditions tightening, this strategy provides a cost-effective way for brands to grow without the burden of major capital expenditures.
The company is currently accepting inquiries for one more partner, offering a prime opportunity for breweries to tap into its state-of-the-art production capabilities. By leveraging Migration’s expertise, breweries can streamline their production, maintain quality, and optimize distribution. From the press release:
“Our co-packing and contract brewing program has been a game-changer for us and our partners,” said McKean Banzer-Lausberg, CEO of Migration Brewing. “We’ve seen firsthand how collaboration can lead to shared success, and we’re proud to support our fellow breweries in growing their brands while maintaining quality and efficiency in our award-winning facilities.”
Why craft brewers are expanding into contract brewing
Contract brewing is on the rise as craft breweries seek new revenue streams in an ultra-competitive landscape. The industry is facing increased production costs, shifting consumer trends, and an overall market contraction. For many independent brewers, contract production provides a lifeline, allowing them to maintain and even expand their presence without the risk of major financial investment.
By outsourcing production, breweries can focus on brand-building, marketing, and distribution while leaving the brewing process to established facilities with proven track records. This model also fosters industry collaboration, enabling smaller breweries to benefit from the efficiencies of larger-scale production.
Other craft breweries betting big on contract brewing
Migration Brewing isn’t the only craft brewery making a strong push into contract brewing. Across the country, multiple breweries are launching or expanding contract production divisions to meet growing demand.
Scofflaw Brewing (Atlanta, GA)
Scofflaw Brewing is entering the non-alcoholic and hemp-derived beverage space with a new line of THC-infused drinks. At the same time, it’s offering contract services for other brands looking to enter this emerging market. With expertise in hemp-infused beverages, Scofflaw is uniquely positioned to assist companies in formulation, production, and packaging.
Prost Brewing (Northglenn, CO)
Prost Brewing has opened its 60,000-square-foot production facility for comprehensive contract brewing and co-packing services. Equipped with cutting-edge brewing technology, Prost’s facility can handle everything from traditional lagers to beyond-beer beverages, including seltzers, non-alcoholic options, and ready-to-drink (RTD) beverages.
Against The Grain (Louisville, KY)
ATG Solutions, the newly launched contract brewing division of Against The Grain, is providing turnkey production solutions for both alcoholic and non-alcoholic beverages. Leveraging years of industry experience, ATG Solutions aims to help brands scale efficiently while maintaining quality.
Dorchester Brewing (Boston, MA)
Boston’s largest contract brewing facility, Dorchester Brewing, has partnered with Yakima Chief Hops to offer cost-saving benefits to contract brewers. This collaboration provides small breweries with access to premium hops at competitive rates, helping them maintain quality while reducing production costs.
The future of contract brewing
As craft breweries navigate a rapidly changing industry, contract brewing is emerging as a crucial business strategy. Whether expanding production capacity, launching new beverage lines, or seeking cost-effective brewing solutions, more breweries are embracing contract production as a way to stay competitive.
Migration Brewing’s success in this space highlights the opportunities that exist for both brewers and contract providers. By working together, craft breweries can weather market challenges, grow their brands, and continue delivering quality products to consumers. For breweries looking to scale without breaking the bank, contract brewing might just be the perfect recipe for success.
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