Founders to reopen Detroit taproom in early 2020, plans to donate profits to charities

Brian Manzullo | Detroit Free Press

Show Caption Hide Caption Amid controversy, Founders Brewing Co. owners speak to media Founders Brewing Co. co-owners speak to the media amid controversy on Nov. 7, 2019, in Detroit.

Founders Brewing Co.'s Detroit taproom will not reopen this year.

Founders, embroiled in a year-long racial discrimination lawsuit that reached national headlines and was settled last week, announced Thursday morning it will reopen the Detroit taproom in early 2020.

[ UPDATE: More details of Founders' plans for Detroit taproom ]

Founders, Michigan's largest brewery, also said it will donate 100% of the profits from the reopened Detroit taproom to Detroit charities and community organizations through at least 2022.

"We really wanted to be a part of the historic renaissance taking place in Detroit," Founders co-founder Mike Stevens said in a statement. "We feel we opened Detroit for the right reasons, but we recognize there's room to do things better. When we reopen our doors to beer lovers in Detroit, we promise an environment that will be positive for our customers, employees and the community as a whole."

Founders had closed the taproom Oct. 25, citing the safety of its dozens of Detroit employees, in the wake of outrage and boycotts surrounding the lawsuit, filed by fired employee Tracy Evans, and Founders' reaction to it.

Founders had also canceled the highly anticipated bottle release and party for its Canadian Breakfast Stout, its top-rated beer, that weekend in Detroit, issuing refunds to all ticket holders. The CBS release and party will not be rescheduled.

The Grand Rapids taproom remained open during the Detroit taproom's closure and held its own CBS release and party as scheduled.

Founders said it will work to reestablish and build relationships with local nonprofits, "understanding that input from Detroiters must be incorporated into philanthropic decision-making in order to achieve the best possible impact for the city and its residents."

Evans, a former Detroit taproom events and promotions manager, filed the lawsuit against Founders in October 2018, alleging, among other things, that Founders tolerated a "racist internal corporate culture" and that he was fired in retaliation for complaints to HR. Founders denied most of the allegations, though it admitted two employees used the N-word around Evans and weren't immediately fired.

As the case worked its way through court, the story exploded in national headlines and on social media on Oct. 21 due to a leaked deposition from the case.

In the deposition, first posted that morning by the Detroit Metro Times, then-Founders Detroit taproom general manager Dominic Ryan, who fired Evans, would not answer whether Evans is black, and later wouldn't confirm whether Barack Obama, Michael Jordan or Kwame Kilpatrick were black because he's never "met" them.

The leak — along with Founders' response to it later that day, saying it is "more confident than ever that it will prevail" in the lawsuit — sparked outrage across social media, led to a boycott from Eastern Market Brewing Co. and drove Detroit-area shops and bars to pull Founders products from their shelves and taps.

Founders later that week issued a new statement from co-founders Dave Engbers and Mike Stevens, pulled out of the popular Fall Beer Festival in Detroit's Eastern Market, and closed the Detroit taproom.

Meanwhile, Graci Harkema, the brewery's diversity and inclusion director, announced her resignation Oct. 25, just 10 months into the job, alleging that Founders excluded her from key decisions after the deposition was leaked. Founders said it plans to find a new diversity and inclusion director.

On Thursday, just 6 days after Engbers expressed confidence in Founders winning the lawsuit, Founders announced it reached a settlement with Evans, without disclosing the terms.

"Through recent discussions with Tracy, we listened, engaged in self-discovery, and reached common ground to make amends," Engbers and Stevens said in a statement. "We agreed that nobody be viewed at fault here. Most importantly, this serves as an opportunity to place our full attention on the work we now have to do, as a company of more than 600 dedicated team members, to rebuild our relationships."

In January, Spain's largest brewer, Mahou San Miguel, will acquire a 90% majority stake in Founders, with Engbers and Stevens each retaining 5% ownership.

Spirits of Detroit writer Brian Manzullo covers craft alcohol for the Free Press. Contact him: bmanzullo@freepress.com and on Untappd, bmanzullo and Twitter, @BrianManzullo and @SpiritsofDET.