Kalona Brewing Company announces closure, citing pandemic

[cigaretteman]

After 11 years serving locally-brewed beer and wood-fired pizzas, a Kalona brewery has announced plans to close.



Kalona Brewing Co.’s final day will be Oct. 31, but the closure may not last forever.


“Unfortunately, we have been unable to recover financially from the impact of the COVID-19 pandemic,” owners Ted and Becky Nagy said in a social media statement. “We are currently exploring other business opportunities including the possibility of (Kalona Brewing Co.) opening with new partners, and remain hopeful to find a better fit in the future.”




Thanking loyal patrons and visitors, the owners invite the public to say goodbye and celebrate memories made at the establishment by enjoying one last round.


The only brewery in Kalona, at 405 B Ave., first opened in September 2013. Over the years, it distributed its products through local retailers including Hy-Vee, New Pioneer Food Co-Op and John’s Grocery in Iowa City.


“I spend a lot of time working with distributors to educate them about our beers,” Lew Brewer, cofounder of the brewery, told The Gazette in 2015. “This is a unique industry because we share information and help each other out.”

Kalona Brewing Company announces closure

Kalona Brewing Co.’s final day will be Oct. 31, but the closure may not last forever.

www.thegazette.com

 

[JustSayOV]

Just my 2 cents....but I feel this is way more based on poor management than COVID recovery....

Yes food service is hard and staffing in that industry is difficult, but for small town Iowa, the worst COVID related effects on the KBC was 3-4 years ago.

Kalona will not have a true bar in town when the KBC closes.

 

[hawkmart]

Enjoyed their sucha much IPA. Their food was pretty good, the two times we went there. Needed a place for lunch after dropping a sack of $$ at the Appliance Barn to replace whatever it was that broke.

 

[onlyTheObvious]

Kinship
Two Peach Tree locations
1717 across the street from peach tree

Over saturation.

 

[WhiteSoxClone]

Just my 2 cents....but I feel this is way more based on poor management than COVID recovery....

Yes food service is hard and staffing in that industry is difficult, but for small town Iowa, the worst COVID related effects on the KBC was 3-4 years ago.

Kalona will not have a true bar in town when the KBC closes.

I've thought for awhile now that there has to be a mini-bubble that is going to burst on the microbrew industry. Alcohol consumption continues to decline in both the U.S. and globally, yet prior to the pandemic it seemed like there was a constant stream of news of a new microbrewery opening. Every guy with a little bit of capital who didn't like his job seemed to be getting into the game. It seems like the market got a bit oversaturated and eventually some of these microbrews will have to fold.

 

[JustSayOV]

I've thought for awhile now that there has to be a mini-bubble that is going to burst on the microbrew industry. Alcohol consumption continues to decline in both the U.S. and globally, yet prior to the pandemic it seemed like there was a constant stream of news of a new microbrewery opening. Every guy with a little bit of capital who didn't like his job seemed to be getting into the game. It seems like the market got a bit oversaturated and eventually some of these microbrews will have to fold.

But that's the thing.....this isn't over-saturation of the market or alcohol related......it was packed all the time. Literally the only other place in town to get something to eat other than Mexican or paying high price at Tuscan Moon.

From a local to the situation, it was generally always busy when open. Now there was a bunch of turnover with the cooks and wait staff, etc. post-COVID, but ultimately appeared successful (at least from the outside looking in).

Aside from Iowa City which is 20 minutes away, there was no other breweries within 45 minutes to an hour of Kalona I don't think.

 

[onlyTheObvious]

But that's the thing.....this isn't over-saturation of the market or alcohol related......it was packed all the time. Literally the only other place in town to get something to eat other than Mexican or paying high price at Tuscan Moon.

From a local to the situation, it was generally always busy when open. Now there was a bunch of turnover with the cooks and wait staff, etc. post-COVID, but ultimately appeared successful (at least from the outside looking in).

Aside from Iowa City which is 20 minutes away, there was no other breweries within 45 minutes to an hour of Kalona I don't think.

Somebody should buy it, open a tap room, and concentrate on food quality and service.

 

[On Iowa]

But that's the thing.....this isn't over-saturation of the market or alcohol related......it was packed all the time. Literally the only other place in town to get something to eat other than Mexican or paying high price at Tuscan Moon.

From a local to the situation, it was generally always busy when open. Now there was a bunch of turnover with the cooks and wait staff, etc. post-COVID, but ultimately appeared successful (at least from the outside looking in).

Aside from Iowa City which is 20 minutes away, there was no other breweries within 45 minutes to an hour of Kalona I don't think.

I'd bet that they outgrew themselves with packaging. Their beer kinda sucks and isn't selling at retail. That canning line is a waste of money beyond what they sell in the tap room. Sometimes growth isn't a good thing. Stay in your lane, offer beer and good food in house and make money. Try to build a retail empire and you go broke.

 

[JustSayOV]

Somebody should buy it, open a tap room, and concentrate on food quality and service.

Ummmm....not to be a smartass, but that's what its been for the last 12 years? I just think it needs better management is all.

 

[JustSayOV]

I'd bet that they outgrew themselves with packaging. Their beer kinda sucks and isn't selling at retail. That canning line is a waste of money beyond what they sell in the tap room. Sometimes growth isn't a good thing. Stay in your lane, offer beer and good food in house and make money. Try to build a retail empire and you go broke.

Not to disagree, but pretty sure they had already stopped the widescale distribution years ago....they used to distribute all over the state for a while but realized the juice wasn't worth the squeeze.....but that was not recent I don't think.

Their lane has always been local and just the internal restaurant/bar for the most part. (I think they tried to grow as you note, but don't think it ever took)

 

[LunchBox50]

I'd bet that they outgrew themselves with packaging. Their beer kinda sucks and isn't selling at retail. That canning line is a waste of money beyond what they sell in the tap room. Sometimes growth isn't a good thing. Stay in your lane, offer beer and good food in house and make money. Try to build a retail empire and you go broke.

This is 100% what went wrong for them and many others.

 

[ThorneStockton]

Been happening all over. Tastes and preferences for booze change, beer is down right now.

 

[B1GDeal]

If always busy and still not making money then it’s poorly operated. I’ve been a couple of times and thought the food and brews were very average. That said, there’s little else in the area so my guess is they’d still do well regardless due to lack of options.

 

[GOHOX69]

I've thought for awhile now that there has to be a mini-bubble that is going to burst on the microbrew industry. Alcohol consumption continues to decline in both the U.S. and globally, yet prior to the pandemic it seemed like there was a constant stream of news of a new microbrewery opening. Every guy with a little bit of capital who didn't like his job seemed to be getting into the game. It seems like the market got a bit oversaturated and eventually some of these microbrews will have to fold.

So much this. And oh yeah, it's freaking Kalona.

 

[jamesvanderwulf]

We probably went there once a month for a long time but the food definitely went downhill as did the wait staff. Haven't had a real bar in Kalona since " Red's Chicken House " sold out, then blew up in a natural gas explosion just after closing. Could have killed a lot of folks with different timing...

 

[cfbfan23]

I've thought for awhile now that there has to be a mini-bubble that is going to burst on the microbrew industry. Alcohol consumption continues to decline in both the U.S. and globally, yet prior to the pandemic it seemed like there was a constant stream of news of a new microbrewery opening. Every guy with a little bit of capital who didn't like his job seemed to be getting into the game. It seems like the market got a bit oversaturated and eventually some of these microbrews will have to fold.

They're closing down (or severely downsizing) left and right, here in Atlanta. There are/were a few which don't deserve that fate (although I don't know how their management was) but the majority were mediocre, at best.

 

[onlyTheObvious]

Ummmm....not to be a smartass, but that's what its been for the last 12 years? I just think it needs better management is all.

Well than “Brewing” in name is a bit misleading. When I see that I assume they are brewing their own beer

If they are just reselling stuff that is a tap room or just a bar.

 

[Rifler]

In that location this needs to be a "destination" type of facility,.. Another mediocre tap room in the middle of nowhere doesn't make people want to go out of their way to show up.

 

[JustSayOV]

Well than “Brewing” in name is a bit misleading. When I see that I assume they are brewing their own beer

If they are just reselling stuff that is a tap room or just a bar.

Ah gotcha.....my bad.

I just interpreted "Tap Room" as a physical space where you served and drank beer....regardless of if it was self-brewed or not.

In that case than yes, I would agree. It would open up a whole bunch more space without all the brewing equipment as well.

 

[OutbackBowl2017]

If they are blaming Covid, have to ask if they got money from the federal gov’s PPP program during that time line as a way to help the company get through it. Know a few companies that did this even though they had a record year during Covid so it was essentially free money they didn’t have to pay back, upwards of $1 million or more. And not one employee that was busting their butts during Covid saw a dime of it. Sad and pathetic how some companies don’t take care of the people that are helping create wealth for the company.

 

[Rifler]

And not one employee that was busting their butts during Covid saw a dime of it.

They got paid right?,.. I think simply retaining jobs was the point.

 

[Old_wrestling_fan]

If they are blaming Covid, have to ask if they got money from the federal gov’s PPP program during that time line as a way to help the company get through it. Know a few companies that did this even though they had a record year during Covid so it was essentially free money they didn’t have to pay back, upwards of $1 million or more. And not one employee that was busting their butts during Covid saw a dime of it. Sad and pathetic how some companies don’t take care of the people that are helping create wealth for the company.

If the KBC, or any other company, had to lay off employees and then received COVID funds, they were obligated to return the laid off employees to the payroll, so as to qualify, for a period of 8 weeks. So...employees either continued to receive their normal pay as they worked OR were paid essentially with COVID funds for at least that 8 week period.

I assume KBC had to lay off staff, as there was a period of time that they weren't permitted to be open to the public. The KBC owners would have then paid the staff their wages for that time off, up to 8 weeks...in other words, "taking care of their employees".

I read their reference to COVID as more of a decline in business following the COVID disruption, which I know affected a good many businesses. All businesses? No, some were unaffected, some actually experienced greater volume and profits, but others were forced out of business or weakened enough that they eventually went out of business. The impact was startling disparate. I don't know where KBC fits in that continuum, but it is premature to insinuate that they misapplied any PPP funds that they would have received with the info shared to this point.

 

[QChawks]

poor Amish

 

[torbee]

They should have made better beer.

 

[OutbackBowl2017]

They got paid right?,.. I think simply retaining jobs was the point.

When you have record sales and profits, plus free money from the government that was suppose to help with payroll, you give that money to your employees. Maybe not all of it but you share the wealth instead of be greedy, selfish a holes.

 

[Old_wrestling_fan]

When you have record sales and profits, plus free money from the government that was suppose to help with payroll, you give that money to your employees. Maybe not all of it but you share the wealth instead of be greedy, selfish a holes.

This thread is about the KBC, right? Did they have record sales and profits during the PPP era of the COVID shutdowns? I highly, highly doubt that they did, since they would have closed during this time.

So...assuming that they paid their employees with the PPP money that they would have received they then WOULD HAVE shared the wealth with their ee's. You are talking out of your blow hole here.

 

[McLovin32]

They should have made better beer.

This. I've tried a decent amount of different beers from them over the years and not a single one was memorable.

 

[Rifler]

This thread is about the KBC, right? Did they have record sales and profits during the PPP era of the COVID shutdowns? I highly, highly doubt that they did, since they would have closed during this time.

So...assuming that they paid their employees with the PPP money that they would have received they then WOULD HAVE shared the wealth with their ee's. You are talking out of your blow hole here.

And I don't really agree with the idea that a business owner should feel the need to automatically share the wealth when good things happen,.. Employees sign on for a job, a pay check, and whatever benefits you might be able to offer them,.. If they want a guaranteed share of the profits they should have signed on as an investor.

 

[TailgateTom]

Their menu shrank and food quality went to hell. This coincided with them losing their head chef due to poor treatment. It was a management issue.

 

[MitchLL]

poor Amish

Don't worry...they're all moving to Pennsylvania to vote.

 

[IndisputableEvidence]

Two times I stopped there both from before and after pandemic, food was very average as was the beer. I wasn’t impressed enough to make another return trip

 

[mnole03]

Been happening all over. Tastes and preferences for booze change, beer is down right now.

It’s an over-saturated market. There’s also been a sea-change in distribution. In Colorado we’re now regularly getting top product from the NE, SE, and Midwest. My Total Wine has the full offerings from Topping Goliath.

 

[Urohawk]

I'd bet that they outgrew themselves with packaging. Their beer kinda sucks and isn't selling at retail. That canning line is a waste of money beyond what they sell in the tap room. Sometimes growth isn't a good thing. Stay in your lane, offer beer and good food in house and make money. Try to build a retail empire and you go broke.

Toppling Goliath is going this route. I used to like their beer but quality went down now that they mega distribute. It's a really good beer but I can get great beer other places which are all local. Some people who open breweries start small and then get aspirations to become the next Busch Family. Options look like the following. Once you figure it out which model you are, don't screw it up.

1. Open local microbrewery. May be get food trucks if you're in a big enough town to handle food issues. Best in state is Pulpit Rock
2. Open local taproom/restaurant. May be get another location or expand to a different town if you really want to expand. Clockhouse in CR reminds be of someone doing this well. Big Grove is another.
3. Open statewide brewery- Get distribution across the state. This is where Peach Tree, Exile, etc all failed.
4. Open regional brewery- Get distribution across a region.
5. Open national brewery- This is where Anchorsteam, Dogfishead, Moderntimes, etc ran into problems. I suspect Toppling Goliath will be there soon.

 

[Urohawk]

Forgot to mention that cocktails became popular recently but also weed is far outpacing alcohol growth. That's where all the money went.

 

[On Iowa]

Toppling Goliath is going this route. I used to like their beer but quality went down now that they mega distribute. It's a really good beer but I can get great beer other places which are all local. Some people who open breweries start small and then get aspirations to become the next Busch Family. Options look like the following. Once you figure it out which model you are, don't screw it up.

1. Open local microbrewery. May be get food trucks if you're in a big enough town to handle food issues. Best in state is Pulpit Rock
2. Open local taproom/restaurant. May be get another location or expand to a different town if you really want to expand. Clockhouse in CR reminds be of someone doing this well. Big Grove is another.
3. Open statewide brewery- Get distribution across the state. This is where Peach Tree, Exile, etc all failed.
4. Open regional brewery- Get distribution across a region.
5. Open national brewery- This is where Anchorsteam, Dogfishead, Moderntimes, etc ran into problems. I suspect Toppling Goliath will be there soon.

Big Grove is more like on the line between 3 and 4. They have distro outside of Iowa now and have a tap room opening in Omaha soon. Best 2 is Lua. Field Day would be another good example, but their food is borderline, IMO.

The biggest thing right now is that Lua, Big Grove, and Field Day have all gone head first into the THC beverage markets, and those things are KILLING.

 

[Jcchawk]

But that's the thing.....this isn't over-saturation of the market or alcohol related......it was packed all the time. Literally the only other place in town to get something to eat other than Mexican or paying high price at Tuscan Moon.

From a local to the situation, it was generally always busy when open. Now there was a bunch of turnover with the cooks and wait staff, etc. post-COVID, but ultimately appeared successful (at least from the outside looking in).

Aside from Iowa City which is 20 minutes away, there was no other breweries within 45 minutes to an hour of Kalona I don't think.

If they were distributing to retail they should have done well on the alcohol side during the pandemic.