Big Grove Brewery opens coffee shop and expands into other cities
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Photo: Courtesy of Big Grove Brewery
Big Grove Brewery is expanding its footprint across the Midwest, with a taproom opening in Omaha, Nebraska, next month and an eventual sixth location in Kansas City.
Why it matters: The brewery's growth bucks the national trend of a shrinking craft beer industry.
State of play: In June, Big Grove is opening its first out-of-state taproom in Omaha. It also opened its surprising newest venture — Big Grove Coffee Co. — in April.
- The move to expand its offerings stems from changing consumer tastes, says Bryan Farrell, marketing director for Big Grove.
- "It's really hard to get a good fix on Gen Z as they become of legal drinking age," Farrell says. "It does seem like they're drinking less than the generations before."
Flashback: Big Grove opened in Solon in 2013 and opened its Iowa City taproom in 2017. Since then, it's opened taprooms in Des Moines and Cedar Rapids, as well as a second production facility in Iowa City.
Zoom in: Several things have helped the brewery continue to expand, including its sheer production size, Farrell says.
- There is a tipping point where breweries either need to get large enough to make the labor and materials costs worth it, or stay small and go into local bottle shops.
- Big Grove distributes in six states, adding Minnesota to its roster last month. The company works with Casey's, Hy-Vee and Fareway to get on shelves.
Between the lines: That's been helpful, especially as foot traffic hasn't fully returned to taprooms since the pandemic, says Noreen Otto, president of the Iowa Brewers Guild.
- Iowa breweries that do well are also incorporating food into their business, Otto says.
- Popular places including Lua Brewing, SingleSpeed and Exile all have their own kitchens.
- "Breweries with food on-site have seen some growth and continue to be fairly resilient," Otto says.
What's next: Expect a continued shift into other beverages, including nonalcoholic beer, canned cocktails and drinks with health benefits.
- Last year, Big Grove purchased a majority share of the THC/CBD drink Climbing Kites.