Opening a new brewery is difficult under ideal circumstances. Costs are high. Finding appropriate real estate can be a challenge. And in this heavily regulated industry, the labyrinth of federal, state and municipal licenses, permits and approvals can take years to navigate.
For Arbeiter Brewing Co., which launched in December with taproom sales and limited retail availability, the circumstances were far from ideal. The startup process for the brewery in Minneapolis' Longfellow neighborhood mirrors the chaos of the past few years. From a government shutdown and tariffs to the pandemic and the unrest following the killing of George Floyd, the path was strewn with hurdles, making it all the sweeter to finally move beer out the door.
In 2018, having leased the former Harriet Brewing space near the corner of Minnehaha Avenue and E. Lake Street, the founding crew of Garth Blomberg, Josh Voeltz and Juno Choi were awaiting approval for federal permits. Then, in December of that year, came what would become the longest government shutdown in U.S. history.
With hundreds of new breweries opening across the country, the approval process was already slow. The closing of the Alcohol and Tobacco Tax and Trade Bureau — the agency that oversees brewery licensing — brought it to a standstill. For 35 days no applications could be processed, delaying the opening of breweries nationwide. The resulting backlog caused still more delays.
That year also saw the imposition of federal trade tariffs. Tariffs on steel affected the cost of stainless-steel tanks and brewing equipment, making an already great expense even greater. The crew's fermentation tanks were shipped early to beat the tariffs, but then sat in the alley for a year while construction continued. They were not as lucky with the brewhouse.
By June 2019, the group was eyeing a November opening. But plans for an outdoor patio caused zoning and permitting issues with the city of Minneapolis that added another six-month delay. "We went into this thinking, 'Oh, it was a brewery before. This will be smooth sailing,' " Voeltz said. "Not with the city of Minneapolis."
That delay brought them face to face with the start of the COVID-19 pandemic.
Even more delays
With construction underway, Arbeiter was looking at a 14- to 16-week timeline for completion. The emergency shutdown measures imposed by Gov. Tim Walz that March threw a wrench in the process. Contractors were only allowed six people in the space at once, leading to delays and backups as subcontractors waited for work to progress to a point that they could complete their own tasks. "All in all, that probably caused us another five months in delays right there," Choi said.