Bronx Brewery Taking On Manhattan

When the Bronx Brewery debuted a decade ago in the Port Morris area of the Bronx on East 136^th Street, some considered it a risky venture because of the Bronx’s tarnished reputation. But the Bronx Brewery has prospered, and proving that point, it just opened a Manhattan satellite brewery in February of 2022 in the East Village on Second Avenue.

It opened ten years ago. Its co-founder Chris Gallant told me in an interview about five years ago that it specialized in producing pale ales including Belgium, American, ryes and IPA’s (India pale ales). Its owners felt that this would provide a niche to separate it from the many other craft breweries that were flourishing in the outer boroughs such as Coney Island Brewing Company and Queens Brewery.

That specialty faded and currently co-founder and president Damian Brown said it concentrates on producing “well-balanced beers including pale ales, Pilsners, double IPAs, seasonal beers and a limited release series, or new beer every month.”

The Bronx Brewery is expanding to Manhattan, but cites its commitment to local creative artists in its neighborhoods as one of its most salient features.

Why expand to the East Village? “We had gotten to the point as a company, where we wanted to share the beers we make and broaden the reach to our uptown vibe with other likeminded, creative communities here in the city. The East Village was it,” explained Brown.

Funding for the East Village was provided by the existing partners, without the need of a bank loan or raising private equity money.

Moreover its Bronx neighborhood is mostly manufacturing. Since it wants to spike its retail business, being located in a high-traffic area like the East Village, will boost that segment of the business.

Being collaborative with many artists in its communities, in the Bronx and East Village, has become the hallmark of the Bronx Brewery. It creates a partnership with individual artists and then the artist chooses a community organization to support. 

For example, when it released Blacktop Imperial Stout, it brought in the artist and graffiti writer CES, who works at a studio in Hunts Point in the Bronx, to design its label. And he chose to support the Humane Society. The brewery organized a mural battle among several artists to determine which was best in which CES served as a judge.

But because of pressure from the local community board in the East Village about the overabundance of bars in the neighborhood, it is constrained in what it can do. It’s only permitted to have a dj once a week and isn’t allowed to present live music because of noise concerns. It will be able to hold indoor gallery-style art events.

This community connection pays off in attracting a larger clientele. Of the brewpubs that have closed, Brown noted, “Brands that are unable to maintain an identity and affinity, can’t pivot and stay relevant, they go out of business.”

Currently, the bar’s indoor capacity in the East Village is 75 and has no outdoor dining. But its application for sidewalk and roadway dining was approved, permitting 40 additional seats, likely debuting in spring.

Brown acknowledged that producing beer in Manhattan can be costly. At its East Village location, it’s producing only about 1% of its overall inventory. “The focus is on the taproom and kitchen, and having people engage with the brewers with limited releases,” he pointed out.

The East Village location will offer Bastard Burgers, a Sweden-based burger outfit that offers quality beef, in New York, from Pat LaFrieda’s custom blend and extensive vegan selections including the smashed Beyond Meat burger. Bastard Burgers started in Lulea, Sweden and now has 50 locations across Sweden and Norway.

The streamlined menu offers five different types of burgers including its famed smashed burger and vegan burger, but that’s it.

The beer served at Bronx Brewery’s Second Avenue new outpost is produced at three different locations: 1) On-site from its small, one-barrel pilot system in the center of its space, where it’s producing limited release brews every week or two, 2) Transporting beers from its Bronx Brewery location, 3) Some of the beer is brewed by its production partner, Meier’s Creek Brewing Company in upstate New York.

Bronx Brewery has thrived because its revenue stems from multiple sources. About 60% of its sales derived from its wholesale/distribution line of business and the remaining 40% were from retail sales of its Bronx taproom and online platform, BXB Go. Six packs ordered, within the state, via BXB Go are shipped via UPS, often arriving the next day.

But Brown noted that its business model is shifting. Wholesale used to produce 95% of its business, is now down to 60% and he expects in a year will fall below 50%.  

Wholesale, it sells beers at Whole Foods Market, Trader Joe’s, Costco, independent stores, bodegas, restaurant chains such as Happy Cooking Hospitality including Jeffrey Leonard’s and Jeffrey’s Grocery in the West Village, and larger venues such as Madison Square Garden and Met Life Stadium in New Jersey.

Asked the key factors to its future success, Brown replied: 1) Continuing to make incredible beer, 2) Staying relevant by being tied to the community.

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