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Santa Fe Brewing Co. pursues strategic growth despite industry headwinds

State’s largest and oldest brewer is expanding in Albuquerque, Las Cruces

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Santa Fe Brewing Co. has come a long way since CEO Brian Lock first joined the business.

At the time — 1996 — the venture was 8 years old, a mom-and-pop operation with three employees producing 300 barrels of beer per year. Now, the brewer is New Mexico’s oldest and largest, producing as many as 40,000 barrels annually in recent years with a team of nearly 90 employees across half a dozen locations in the state.

Teamwork and grit have carried the company through 38 years of brewing, Lock said.

“I’ve seen a lot of ups and downs, but I think it’s just perseverance,” said Lock, who grew up in Oregon but attended college in Texas. He discovered New Mexico through a friend who was also interested in running a brewery, and he quickly fell in love with the state, calling it the perfect place to lay down roots and build his passion project.

“If it means working 75-hour weeks, I’ll work a 75-hour week. If it means a weekend that you have to work, it’s a weekend you have to work. It’s just your dedication and your passion behind really what you believe in, and that’s probably why we’re where we are today,” Lock said.

When it comes to ups and downs, the latter seems to characterize the craft beer industry over the last couple of years, as and craft breweries are . Despite the contraction, Santa Fe Brewing continues to pursue growth opportunities.

A new Santa Fe Brewing taproom in Las Cruces, slated to support up to 15 full- and part-time employees, is aiming to open later this month. A Santa Fe Brewpub also opened in Albuquerque last month and celebrated its grand opening on Saturday after the company finalized a licensing agreement with a local business owner to operate the location earlier this year.

Lock described the expansions as “very deliberate and strategic decisions” influenced by where the market is taking the business amid an industry-wide downturn.

Santa Fe Brewing has seen the greatest impact of the contraction in its off-premise transactions, which include its beer sales at grocery stores throughout the Southwest.

“That’s really where a lot of the decline has happened,” Lock said. As a result, Santa Fe Brewing’s production dropped from 40,000 barrels in 2024 to an expected 38,000 barrels this year. “It’s been a challenge to keep growth; even flat is kind of the new win.”

Ben Turkel, general manager at Santa Fe Brewing Co., stands among towering stacks of cans at the brewery's headquarters in Santa Fe on Wednesday. The brewer is seeing a downturn in off-premise sales.
Ben Turkel, general manager at Santa Fe Brewing Co., pours a pilsner in Santa Fe on Wednesday. The brewer is seeing growth in its taprooms and on-premise sales.

However, the company is seeing growth in its on-premise activity: selling its products at bars, restaurants and in its own taprooms. That’s part of what is fueling the company’s recent expansion.

“(We’re) looking at opportunities that make sense from a business perspective and what’s currently working,” Lock said. “Our taproom models, they are working. So we’re embracing that.”

Lock has also pondered a southern New Mexico expansion for years. He got close in 2019, but the COVID-19 pandemic disrupted those plans. When a 2,900-square-foot space formerly occupied by Bosque Brewing Co. opened up in Las Cruces, Lock immediately took a look.

The decision wasn’t easy, however. In the current craft brewery climate, Lock said every factor — from the number of breweries already in an area to a city’s population and the expenses of running a new location — holds more weight.

With rising costs for aluminum and cardboard packaging, as well as fuel and shipping costs, and Santa Fe Brewing’s decision not to raise its prices, Lock said the profit margin the company once had “is no longer there.”

Lock said Bosque Brewing’s bankruptcy and closure of its taprooms after a failed reorganization attempt last year brought all of the industry’s current challenges to the surface. But what happened to Bosque — though unfortunate, Lock said — did not impact his decision to pursue the Las Cruces property.

That’s partly because the companies’ models are different — with Bosque’s focus on beer and food, and Santa Fe Brewing’s concentration on just the beer — but also because Lock trusts his approach to growth.

“I’m very calculated when it comes to opening a location,” he said. “I’m not looking to open three more next year. It’s just, in this particular case, it was the right time and right opportunity.”

Lock isn’t the only one following the market where it leads. The same goes for Adam Krafft, the Albuquerque businessman behind the new Santa Fe Brewpub at 6601 Uptown NE.

Krafft owns the property’s other business, Uptown Sports Bar, which he’s operated for 24 years. During that time, he’s brought two different brewpub concepts to the property. The most recent, Alien Brewpub, was also a licensing deal with Moriarty’s Sierra Blanca Brewing Co., which has an Alien beer brand.

He operated that concept for a decade before approaching Lock about a Santa Fe Brewing rebrand last year.

“They do a fabulous job of coming out with new beers all the time, and I felt that could be a really nice part of having the concept here,” Krafft said, adding that Santa Fe Brewing’s 7K product — an India Pale Ale known for its West Coast-style and tropical flavors — already sells well at Uptown Sports Bar.

Stacks of Santa Fe Brewing Co.'s Seasonal Adobe Igloo product at the company's headquarters in Santa Fe on Wednesday. Albuquerque bar owner Adam Krafft said his business sees high demand for Santa Fe Brewing's beers.

With a spruce from renowned local speed painter Michael Ostaski, who also helped design Alien Brewpub, Krafft said the community’s response to the rebrand has been welcoming. The departure from Alien was also amicable, Krafft added, citing a good relationship with Sierra Blanca Brewing.

The exterior of Santa Fe Brewing Co.'s headquarters at 35 Fire Place in Santa Fe on Wednesday. The company has produced as many as 40,000 barrels annually at the site in recent years.

“I just like shaking it up and couldn’t resist,” he explained. “I knew of (Lock’s) reputation all these years, and his reputation is really solid as a person. Plus, they’re the No. 1 brand, which doesn’t hurt.”

Partnering with an established brewer also doesn’t hurt during tighter times for the industry, Krafft said. Even amid contraction, he said he felt comfortable pursuing the rebrand because he thinks New Mexico is weathering the season well.

“When everyone runs to an industry, it can get a little bit oversaturated, and this is kind of a normal market correction, but there’s still a great following of craft beer,” Krafft said.

Through Santa Fe Brewpub, Krafft said he hopes to represent Santa Fe Brewing well and bring more exposure to the local brewer. Lock expressed excitement about the agreement and said he sees local partnerships playing a major role in the company’s vision for the future.

“I really value our support group in New Mexico. This is our backyard. This is where I want to win the most and be successful because this is home,” Lock said. “So really focusing on the New Mexico market is important to me and I’d like to see, over the next several years, more and more people discovering craft beer again.”

Kylie Garcia covers retail and real estate for the Journal. You can reach her at kgarcia@abqjournal.com.