Derek Fernholz and Blake Thompson founded Fernson Brewing Co. in October 2014 with a central goal: get Sioux Falls to notice craft beer.

At the time, Sioux Falls had only a single brewery — Gandy Dancer Brew Works at Monks House of Ale Repute. But it was clear craft beer was becoming a big trend. Nearly 4,000 breweries operated nationwide. The Fernson crew, then brewing out of a garage, saw a rising demand for local beer and an open market in the area.

Five years later, they’re the largest of soon-to-be 14 craft breweries in and around Sioux Falls. By this fall, six of those will have opened in the previous 12 months: Covert Artisan Ales, Obscure Brewing, Severance Brewing, Lupulin Brewing (which is taking over Hydra Brewing Co.'s operations), the new Look's Market brewing project and Buffalo Ridge Brewing — Hartford's first brewery.

Before the production of local craft beer could enter Sioux Falls, a thirst needed to exist. Several Sioux Falls-sized cities had multiple breweries before Sioux Falls itself could support a craft beer scene, Fernson CEO Joel Thompson said. But once knowledge of the craft flooded Sioux Falls, brewers heard the calling and the landscape erupted.

“We always say that our first assignment was to get people to pay attention to craft beer at all,” Thompson said. “People who are consistently drinking those light domestic beers that they’ve had for 30 years are creatures of habit, and getting them to step away from that is challenging.”

Those willing to venture into the world of craft beer have the vastest selection to date, and now, travel isn't necessary for South Dakotans to drink a beer exclusive to an area. The number of breweries in the U.S. has doubled in the last five years, and in the same time, More than half of South Dakota's breweries have opened their doors.

Sioux Falls craft beer:A complete guide to local breweries

“I think the Sioux Falls craft beer industry is still in its infancy,” said Don Choate, founder of Obscure Brewing Co., which opened on July 11. “We have a bit of catching up to do.”

State law is also partly at fault for the delay. Before 2018, craft brewers could only sell beer to retailers through a distributor, hindering gains despite the state’s beer production doubling between 2011 and 2015. Senate Bill 173, passed in February 2018, erased this statute and increased the number of barrels brewers can produce from 5,000 to 30,000 annually, allowing brewers to grow.

In fact, that’s what brought Lupulin to town. The Big Lake, Minnesota-based brewery bought Hydra’s taproom on Louise Avenue in May, which will be Lupulin’s first satellite taproom when it opens in a few months.

“We’d love to have another taproom in Minnesota but the state law won’t allow it,” said co-founder Matt Schiller, noting the growth of craft brewing in Minnesota revolves around laws. “It’s really stupid.”

More:Minnesota brewer Lupulin Brewing Co. to buy Hydra Beer Co. in Sioux Falls

Fernson, the state's largest brewery, is considered a small craft brew operation nationally. Selling 5,000 barrels annually, Thompson said he's a little jealous of fellow brewers across the country, in places such as Seattle, who are selling 80,000-100,000 barrels a year.

Though brewers and business specialists, such as Brienne Maner of Zeal Center for Entrepreneurship, say Sioux Falls has room for a dozen more taproom-type breweries, whether it can support more regional distributing operations is questionable.

"It's tough to predict. I think Sioux Falls could support 20 breweries, but it demands a certain type of brewery structure." Thompson said. "You have to sell a lot of beer to make it work."

‘Stronger together’

The size and shape of Hydra’s brewhouse, along with the hired staff, made for a “seamless transition” from Minnesota, Schiller said. But what excited them most for their arrival was the outpouring of support from the brewing community. When Lupulin launched distribution across the border, Sioux Falls brewers were quick to invite a guest tap or a collaboration on a new beer.

“It’s a really friendly community with open arms,” Schiller said. “We’re not trying to come in and do anything other than be a good steward for the craft beer community.”

Therein lies the strength of the local brewing scene. Other industries might see competition as a threat. Brewers in Sioux Falls view incoming brewing companies as a sign of the craft’s health in the community — to the point where they trade supplies like baseball cards. If brewers at Fernson run out of a bag of oats or hops, they’ll call Remedy or WoodGrain to see if they have a little extra this week, and vice versa, Thompson said.

“It’s very communal, tight-knit scene,” Thompson said. “They are technically competitors, but reality is, in our business structure, it’s super friendly.”

Parallel to the collaboration between brewery and brewery is the collaboration between brewery and community. Partnering with business has spawned a new attention of craft beer to the denizens of Sioux Falls. Some examples: Fernson’s Zoo Brew with Great Plains Zoo and 605 Magazine Hazy Honey Ale, Remedy’s Queen Bee Honey Cream Ale, and WoodGrain’s Carnaval IPA with Carnaval Brazilian Grill.

“They understand that they’re stronger together,” said Brienne Maner, Executive Director at Zeal Center for Entrepreneurship. “If they can find ways to cross promote and cultivate deeper relationships within the business community, I see that there’s room for more growth in the craft beer scene.”

Spreading to the suburbs

Maner, in her six years as communication director and vice president with Downtown Sioux Falls Inc., saw breweries bring a new “energy” to the downtown district — WoodGrain arrived on Phillips Avenue in 2015, followed by Remedy on 8th Street in 2017. Fernson joined WoodGrain with a taproom on Phillips Avenue in April.

But not all new breweries are seeking a downtown location.

Obscure built their operation near Dawley Farm on the eastern edge of Sioux Falls. Lupulin is replacing the Hydra location near South Louise Avenue, across the interstate from residential areas. Remedy announced plans for a production center on 611 N. West Ave., south of the Denny Sanford Premier Center, in February. Prairie Berry and Miner Brewing Co., native to the Black Hills, opened its taproom in the Western Mall, where Western Avenue meets 41st Street.

“It’s a good experiment to see if there are other parts of the Sioux Falls community that can support this local craft beer scene,” Maner said. “It’s an opportunity for people in different areas of town to adopt these breweries as their own in a way.”

Neighborhood-based breweries are a magnified version of the craft beer movement both city-wide and nationwide. Regardless if made in their neighborhood, city or state, beer drinkers find a certain satisfaction in tasting something relatively homemade.

“The brewery scene has changed to hyperlocal,” Fernson Marketing Director Evan Richards said. “I think people take pride in drinking something made just down the road rather than four or five states over.”