Craft Brew Alliance announced today that it has entered into an agreement to sell its Woodinville, Washington facility to Sound Commercial Investment Holdings, LLC for $24.5 million. The transaction is subject to a financing contingency and other closing conditions that are expected to be resolved by the end of 2017.
The Redhook Ale’s Woodinville brewery was a state-of-art craft brewery when it opened in 1994 and catapulted brands such as Redhook ESB and Ballard Bitter IPA into national distribution at a time when very few craft brands has such broad distribution. The brewery’s 220,000 barrel capacity makes it the largest brewery in the state.
But the brewery has been underutilized in recent years as both the Redhook brand and other CBA brands have not met growth expectations. Redhook shipments had fallen 37% over two years at the end of 2016 with further decline in 2017. The brewery at been running at a reportedly 30% of capacity. Production will be moved to a new brewpub in the Capitol Hill area of Seattle and the company’s Portland brewery.
There was no indication what Sound Commercial Investment had planned for the brewery.