St. Pat's  blog is a new feature that we will update regularly.

December 2025

We are coming up on Dry Martini January and are working on some ideas to help sensible people gain weight and act irresponsibly. 

But before we get into that, a little perpective on the state of our industry. More breweries, wineries, and distilleries are closing than opening.  That has not happened in the 35 years I have been in business. But breweries, wineries and distilleries have closed every year that I have been in business.  And the reasons are pretty much the same every year---not enough sales vs costs. Sales and variable costs are hard to predict---fixed costs are easier.

I will draw on the fate of Austin's first 4 breweries, all began in the early 90's,  and Austin Homebrew Supply since 2022. 

Austin's first 4 breweries all closed within 10 years, and Austin Homebrew Supply has been the country's most profitable homebrew shop since it closed in 2022! 

The fate of these businesses reflects on importance of controlling the largest single fixed cost that nearly every business has. Building expense. 

As a rule of thumb, leasing will cost a business ~2-3 times more than owning the property.  And this discrepancy often grows over time because when you lease, you are competing with every type of business that can use that space.  In fact, the Austin Homebrew Supply building is leased to a company that sells "slime boxes" which I had never heard of until last week. 

Photo at Austin's first microbrewery Celis Brewery. I'm on the left toasting Pierre Celis. Front row: Bill Forester in the middle (Waterloo, Texas first brewpub). Davis Tucker left (Coppertank, Texas' second brewpub).  Back right corner is Mike Mchone, Balconos Red Granite Brewery, Austin's second brewery.  Photo was taken by Austin Home and Garden magazine, ~1995.

In the early 90's, interest rates were high and Celis simply took on debt at a high interest rate. Celis sold a majority share to Miller in late 90's and Miller closed it in 2000. Waterloo and Coppertank leased large spaces in downtown Austin around 1992-3. Downtown began to boom and they got hit with huge lease increases years later and could not survive. 

Austin Homebrew Supply was purchased in ~2015 by the owner of Adventures in Homebrewing in Michigan. Homebrewing was doing very well at that time. The new owner had a  25,000 sf building built and completed in early 2019.  By that time, homebrewing was tanking across the country. So, in early 2022, the owner shuttered AHS.  He leased the building for 5 years, with a total of over $2M net income in 5 years. The building went up for sale just a week ago.  If he gets the asking price, he will make ~$3.5M in capital gains. 

So that is how a homebrew shop that has been out of business for 4 years, will make $5.5M, and is undoubtedly the most profitable homebrew shop in the US during that time.  I see a former competitor of AHS,  in business for 30 years, still leasing and flailing to survive---selling imported products below replacement cost, due to tariffs. Only reason to do that is if you are discontinuing the products, or desparate for cash. 

Couple of side notes.

The Celis Brewery closed in 2000. The brewery was put on the market for $1.8M. The adjacent empty lot was another $400K.  I went to my bank and applied for a loan to purchase Celis. The bank said yes. Keep in mind I started my homebrew business 9 years earlier with a $517 tax return check. But I had 3 boys at home, a booming business, and my husband was not interested in leaving his career. I could not do both by myself, so I didn't take the risk.

I made a $3.5M offer on the Austin Homebrew Supply building in 2022. It was not listed for sale but I took a shot based on the lease rate. They did not even counter my offer. It is now listed at $6.9M.