When most Wisconsinites think of a Sprecher root beer, they likely conjure up fond memories of enjoying a float or sipping a soda to cool off on a hot summer day.
Led by president and chief executive officer
Sharad Chadha, Glendale-based
Sprecher Brewing Co. is working to make sure those memories are no longer exclusive to Wisconsinites as the brand raises its profile nationally – and eventually worldwide.
After leading a group of Milwaukee-based investors to acquire the craft brewer from founder Randy Sprecher in 2020, Chadha recognized Sprecher as a “little-known gem with a great future ahead of it.” At the time, its products could be found in more than 25 states, but the retail and distribution footprint of the brewery was limited.
Since the acquisition, Sprecher has grown at a rapid pace. Its products are now available in 49 states. In August, the brewery announced it has experienced an annual growth rate of 35% year-over-year and sales have tripled.
Chadha wants to continue that momentum by making Sprecher products available internationally. However, achieving that goal is nothing short of a challenge in a highly competitive soft drink market, dominated by giants like Coke and Pepsi.
To stand out in the crowded space, Sprecher is leaning into its unique soda-making process, which uses locally sourced ingredients like raw wild-flower honey and small-batch kettles for brewing.
“We want to have a Sprecher sip on every lip in America, and that means growing 30%, 40% every year,” said Chadha. “That growth is not possible forever, but for the next few years, we have to do that. We are also keen on expanding distribution in new places.”
Business growth
Key to the company’s growth strategy is acquiring smaller craft beverage manufacturers to help break into new markets. Over the past three years, the brewery has acquired six beverage labels, including, in October, the Ooh La Lemin lemonade brand from Melbourne, Florida-based Kona Gold Beverage and, in 2021, a handful of brands from Chicago-based WIT Beverage Co. including the 102-year-old lime soda brand Green River, Black Bear Soda, Olde Brooklyn, WBC Craft Sodas and Caruso’s Italian-Style Craft Sodas.
Asked what factors Sprecher considers while considering possible acquisitions, Chadha said the company looks for a great tasting, high-quality product with local brand recognition and sales.
Beverage manufacturers aren’t the only companies Sprecher has acquired this year. In October, the brewery announced its acquisition of Germantown-based
Excent, which operates an automated robotic production line for variety packaging. The purchase gives Sprecher additional capabilities as the company looks to soon offer variety packs of craft sodas in cans.
Another milestone for Sprecher this year was its return to Bayshore in Glendale. The Sprecher Taproom opened in May, in the space that was once home to the brewery’s restaurant and pub, which closed in 2019.
In recognition of the continued growth of an iconic Milwaukee brand, Sprecher Brewing is the
BizTimes Milwaukee 2023 Best in Business Small Business of the Year.
To support Sprecher’s exponential growth, the company has upgraded its bottle line and added a new canning line as well as additional warehousing space. Additionally, Chadha plans to introduce more automation into the brewing and batching process.
Sprecher’s workforce has more than doubled to 120 people, and the company has gone from running less than one shift a week to running two shifts four days of the week to meet demand.
“There is always a risk of growing quickly,” he said. “You need to have the infrastructure and capital to support the growth and maintain the growth. You cannot run out of products on the shelf at a retailer or else you get thrown out.”
Physical growth
As the company’s national presence grows, so too will its physical footprint.
Sprecher’s headquarters campus in Glendale has three buildings totaling about 250,000 square feet on about 10 acres of land at 701 W. Glendale Ave. Chadha wants to tie the three facilities together with an additional warehouse and production building that would span 30,000 to 50,000 square feet.
“It will take a massive amount of capital, millions of dollars, so we’ll do it as things ease up in supply chain disruption, inflation or interest rates, which are crazy high for us right now,” he said. “We’re going to be thoughtful about it.”
To temporarily ease some of its physical constraints, the brewery recently leased 80,000 square feet of space along Capitol Drive in Milwaukee and is eyeing another 75,000 square feet of space nearby. Chadha is constantly on the lookout for possible ways to expand Sprecher’s footprint.
“We’re looking at the multi-county area. If the economic development corporations of those regions are willing to give us a break, we are open to expansion in other areas,” said Chadha. “Glendale is our home, and we love it here, but we want to expand much more.”
