Lost Abbey Outlines Long-Term Plan To “Get Smaller”

From Lost Abbey:

We have some news to share today.

Today is 11-1-2022. It is nationally known as All Saints Day.

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Since launching The Lost Abbey in 2006 we have focused on making beers “For Sinners and Saint’s Alike.” It’s in our DNA.

Perhaps it’s fitting now is the day we lean into the saints.

Today there is a major announcement in our world. It’s the story of a little brewery with a big reputation (The Lost Abbey). Many thanks to SD Beer News for giving us the time and space to reveal our operational plans moving forward.

It’s no secret the beer of beer has been massively impacted and contracted in the past few years. Craft Beer used to compete against Wine and Spirits. Today and there are numerous other options and even some legal drinking aged humans who have adopted a sober curious model of living. A crazy world of more breweries, alternative beverages and RTD things not malt based are all vying for consumer attention.

We, like so many of our friends, are not immune to this. Congrats to those who are winning, props to those who have figured out their current realities and welcome to the party to everyone else who is pushing to make it through to the proverbial other side. We have many speed bumps ahead. But like moguls there are ways to attack the bumps even as you’re going downhill.

I have chosen to hit send on this for the Facebook universe for many reasons. First and Foremost news travels fast. What doesn’t always travel fast are the details. So I implore you to read the entire article. It’s about our plan and executing it in 2023. That being said, you shouldn’t be surprised. Many small businesses are reevaluating their strategies even as you’re mouthing these words.

You might be struggling. Your neighbors the same and a friend in a far flung land the even more so. Sometimes being in the race is more important that winning it. So we’re working on being in the race by being able to show up each and every day.

As I type this, 2022 feels like the year of the Ostrich with many of us continually putting our heads in the sand each and every day as another hit came our way. 60% Malt increase= Check. 20% CO2 increase (if you could even get it) = Check. Rolling Cardboard and paper increases= Check. This article is about us getting smaller. It’s not about us going away. We’re sorry. Some of you might have read it that way.

But in reality we’re trying to be as small as we can possibly be because being big is tougher than nails right now. Since opening our doors in 2006 we have always chased growth as the path to a bigger brighter future. Growth is expensive. We know, we’ve added square footage and assets many times in those 16 plus years. None of it has been cheap.

We’re in the midst of executing a new 1, 3 and 5 year vision. It relies less on growth at a time when growth is ridiculously challenging. For the first time in our company’s history, we’re growing down (Getting Smaller) on a warehouse and occupancy level.

I’m sure you have read that we also have listed the brewery assets for sale. It’s our opinion that a 30 bbl system is costing us more than it should (Space, energy, repairs etc…) Operating on a smaller system would afford us so much better flexibility in our production environment as well.

As we own everything in the building outright we believe someone might like to operate this set of tanks. If no one is interested, we’ll continue to brew our beer on this system and make world class things.

Life has gotten incredibly expensive. Inflation, rent increases, food costs and yes even our beloved gasoline. We all see it in our daily lives. What hasn’t gotten expensive is friendship. So I am thankful for all the friends here on Facebook and elsewhere who have always believed in our vision for The Lost Abbey.

Press releases used to tout major expansions, growth initiatives and territory launches. They were everywhere when the industry was huffing and puffing on irrational exuberance. This piece seems very boring when you compare the news. But it’s still very important news for us.

Cheers to each of you for reading to the end. I appreciate you and the bonds we share.

I look forward to sharing photos with every one of our progress in the New Year.

Happy All Saints Day 2022.

Let’s all take a moment to reflect on those who have left us (especially the ones that went too soon).