3 Sheeps brewery to expand production

3 Sheeps Brewery in Sheboygan will soon be adding to its flock.

The company announced Thursday that it plans to expand operations, leasing the old Coca-Cola Plant at 1837 North Ave. Refurbishing the 40,000-square-foot space will give the company the ability to produce 200 barrels of beer a day, up from the 28 barrels a day they produce now. The expansion would also result in the creation of 15 new jobs and targeted expansion of their distribution and product line-up.

The brewery, started in 2011 by co-founder and brewmaster Grant Pauly, has expanded by leaps and bounds since then, having expanded from offering a few select beers to nearby bars and restaurants to selling a range of products in stores throughout Wisconsin, Minnesota and Illinois. Pauly said they expected they'd need to expand soon but have seen a 45 percent growth year-over-year and were already reaching capacity at their current location.

Currently, Pauly said they produce about 4,000 barrels of beer each year. With the addition of a new brewhouse and equipment, the brewery expects to increase production to about 15,000 barrels a year at first. But while Pauly said he could see Rebel Kent the First infiltrating other Midwest states eventually, he wants to make sure the current customer base is satisfied first.

"I want to make sure we don’t open a new market at the expense of those locally who enjoy our beers," Pauly said. "As we get them under control, then we’ll be looking at probably growing out from where we are, growing in the Midwest and growing farther as the opportunities arrive."

The move means more Really Cool Waterslides for all, but Pauly is especially excited about focusing more on barrel-aged beers and sour beers. Sour beer brewing relies on an infusion of bacteria and wild yeast to give a particular pucker to the drink — which beers originally had before modern techniques and pure yeast were cultivated. Pauly said the ability to take a trip back to those days by brewing sour beer in an isolated room in the new facility is "kind of like my Christmas."

"I’m kind of a romantic for that old style," Pauly said. "These old breweries, with all the different things on their wall, it’s such an art at this point. Brewing with yeast I love, but adding the element of bacteria, it's just a whole other ball game … I look at it as the next frontier."

WisBrewView: 3 Sheeps grows from home-brew roots

And Pauly hopes the addition of a taproom — and eventually a beer garden — will give locals the opportunity to taste test some of these more experimental creations. Right now, the brewery shares space with Hops Haven, which features a variety of 3 Sheeps beers. Pauly said the business has served them well since they started but added it will be nice to have a spot that focuses exclusively on their beer and allows them to come face-to-face with their customers.

The expansion came about with help from the city of Sheboygan's redevelopment authority, which gave the company a $375,000 loan for job creation, as well as additional support from the Sheboygan County Economic Development Corporation, Small Business Administration and Investors Community Bank of Manitowoc, which provided much of the rest of the financing for the purchase.

The company will start work to redevelop the plant next month, with the goal of opening sometime early next year.

Reach Jason Smathers at 920-453-5167 or jsmathers1@sheboyganpress.com.