New Belgium enters into agreement with South Carolina brewery

FORT COLLINS — New Belgium Brewing Co. has entered into an agreement to handle the brewing and logistics for Island Coastal Lager, a Charleston, S.C.-based brewing company.

The agreement will expand ICL into additional states, quadrupling the number of states where ICL is sold and exponentially increasing production.

The deal is a contract brewing deal, where ICL is paying New Belgium to brew its beer using New Belgium equipment and staff. New Belgium will handle the logistics and brewing, while ICL manages distribution and branding. The brewing will be done at New Belgium’s Asheville, N.C., location.

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“Contract brewing is commonly done when a small company is scaling up and doesn’t have the infrastructure yet,” said Bryan Simpson, a spokesperson for New Belgium. “It’s an efficient way to work.”

ICL was first brought to market in South Carolina in October 2017 and has since expanded to North Carolina, Georgia, Alabama and Florida.

“Like New Belgium was in 1991 and continues to be today, we were inspired to bring a better beer to American drinkers,” ICL co-founder Brandon Perry said in a prepared statement. “Island Coastal Lager has carved out its own clean, easy-drinking category providing an alternative to mass-produced beers brewed with fillers and preservatives.”

As ICL expands along the East Coast and into Texas, New Belgium will lend its experience in the industry to the company.

“The brewing expertise and access that NBB can provide ICL makes it a perfect partner as we accelerate growth within the U.S.,” co-founder Scott Hansen said in a prepared statement. “We are now poised to launch brand extensions that will further solidify our place in the market as a crossover between macro and craft.”

New Belgium will begin producing ICL in March, packaging draft, 12-ounce and 16-ounce cans. Simpson added that New Belgium doesn’t have any other contracts to brew beers for other brands, but that there is the possibility that could change.

“The potential is out there, we have the capacity to entertain that,” he said, “and help other breweries scale up.”