America's newest brewery will soon join America's
oldest brewery. The new $50 Million brewery will be
located across Mill Creek Avenue near the Saint Clair
Industrial Park. <br><br>The new brewery will triple
Yuengling's current brewing capacity producing up to a
million barrels annually. This will greatly complement
operations at the Mahantongo Street plant. The new brewery
is expected to create an estimated 100 jobs upon
opening in late 2000. <br><br>Executive Vice President
David A. Casinelli was quoted Thursday Morning "When
Dick took over the brewery in 1985, many nay-sayers
believed it was the beginning of the end of the Yuengling
Brewery. Now the question is not how to keep it alive but
how to fulfill the demands of the future." <br><br>To
do this, owner Richard L. Yuengling Jr. has
committed to building the new plant to meet new market
objectives for the future. <br><br>The historic brewery will
produce an estimated 250,000 barrels annually with the
start-up of the new location. This is less than half the
quantity produced in 1997 by the plant. Yuengling
commented, "It will be used more as a tourist attraction
than a brewing facility. Tourism is a big piece of our
marketing plan." <br><br>Yuengling has traditionally
struggled with growth with new expansions and technology
improvements at the historic location. According to vice
president of operations, James L. Helmke, from 1990 to
1997, the company experienced a growth of 383 percent.
Between 1990 and 1998, the brewery's capacity has grown
from a staggering 160,000 to 600,000 barrels. The
Historic site however is close to reaching its limit in
production. Helmke states, "We're not going to do anything to
sacrifice the quality of our product". <br><br>A planning
committee checked out options from doing nothing about the
rising production needs, to the decision to build a
second brewery. <br><br>Helmke stated, "Analysts will
tell you this is probably crazy but given the niche
we're in, we don't think there is another option." He
cited the rising number of breweries closing across
America. <br><br>The following options were considered by
the committee. <br><br>Upon considering taking no
action, the committee concluded that inaction would risk
the future of Yuengling Brewery. <br>Many breweries
were interested in purchasing Yuengling, however
experience showed that when larger breweries like Miller buy
smaller breweries, the smaller brands usually die.
<br>Yuengling contemplated entering into a brewing agreement or
acquiring an existing brewery. However, it was decided that
Yuengling's future was centered on the core market.
<br>Expansion at the current plant was also considered.
<br>Another possible plan was contract brewing, Black and Tan
for example is already produced at Stroh's Brewing
located in Allentown. It was thought that further
contacting other breweries would create a quick increase in
capacity. While expressing a concern over the flavor of the
product, Helmke stated that with technical adjustments it
could probably be done.<br>Loss of the Pottsville
Identity was a major concern for Yuengling however.
<br><br>Yuengling wanted to keep his small regional brewery image.
Helmke stated, "This is the market we've chosen to
pursue. Part of the secret of the success of this brand
is that it's made in Pottsville, a small regional
brewer." <br><br>Speaking of many micro breweries
inability to take advantage of marketing potential, Helmke
stated," They underestimated the desire of the public to
have a regional brewery." <br>Wholesalers are now
encouraged to focus on Yuengling products other than lager,
which is the fastest growing product. Lager draft
production is up 63% over 1997. Other factors such as
non-returnable bottles, six packs of non-returnable and cans
have increased respectively. The brewery however does
not want to be known only for there best selling
lager. The company does want to meet consumer demand as
the new brewery goes under construction.