Despite the beverage industry’s constantly shifting landscape, Milwaukee-based Craft Beverage Warehouse has proved it’s found a business model that can keep up with any consumer trend. The company specializes in direct-to-can digital printing and wholesale distribution of related products for beverage canning. As younger consumers opt for THC-derived beverages and ready-to-drink cocktails over craft beer,
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Kyle Stephens[/caption]
Craft Beverage Warehouse can help beverage manufacturers move quickly when adding to or altering their product lineup to meet consumer demand. The company is able to print newly designed cans in a matter of days – a stark contrast from lead times of 12 weeks or more at some competitors, Stephens said.
Craft Beverage Warehouse has seen so much demand for its products that the company this year announced two projects aimed at increasing capacity.
In October, Craft Beverage Warehouse unveiled plans to open a second facility, in Denver. The new digital print facility is scheduled to open in the spring of 2025 and employ 20 people. This will more than double Craft Beverage Warehouse’s current headcount of 18 employees.
The news of the Denver expansion came just a few months after the company doubled its printing capacity at its Milwaukee headquarters, located at Century City Business Park. A “multimillion-dollar” investment allowed for the purchase of a new print-to-aluminum can line. The new line can print approximately 30 million cans per year.
In recognition of the steps it’s taken to capitalize on shifts in demand, Craft Beverage Warehouse is the BizTimes Milwaukee 2024 Best in Business Small Business of the Year.
“We have been eyeing national expansion for the last 18 months,” said Stephens. “Our team has grown both in size and experience and are now ready to take the next step for the business. While our products are in high demand, the cost of shipping and related environmental impact can be an obstacle when shipping outside of our region.”
Opening a second facility in Denver means Craft Beverage Warehouse can move closer to some of its clients in the Mountain West region. This will also allow for lower shipping costs and even shorter lead times, Stephens said.
“The products we ship are fragile. We ship empty cans. It’s basically air. It’s very expensive. In order to expand, we need to expand regionally,” he said.
He examined a handful of additional regions when planning the company’s expansion. Atlanta was one city Stephens really liked, but that idea was eventually tabled due to the established presence of a competing company.
Even with a second facility in the works, Craft Beverage Warehouse is still in need of additional warehouse and office space.
The company is still pursuing construction of a second facility at Century City Business Park, located at 3025 W. Hopkins St. Designs for that project could be coming as soon as early 2025, Stephens said.
Reflecting on four years in business, Stephens said he wishes he would have considered how quickly Craft Beverage Warehouse would grow and taken time to secure additional money from investors at the start.
The company has seen a massive uptick in revenue in a short amount of time, which makes it hard to reassure potential investors that the business model is sustainable, Stephens explained.
“A technology company can throw technology at a growth problem,” he said. “Every time we grow, it takes a multi-million investment. It’s hard to get the right partners on board.”
In the coming years, continuing to ramp up capacity will be the biggest priority for Craft Beverage Warehouse. Eventually, the Denver facility will have two print lines like the Milwaukee headquarters.
There could also be opportunities for the business to expand into other markets outside of craft beverages due to the unique type of printing equipment Craft Beverage Warehouse uses.
“We love Milwaukee,” said Stephens. “We’re always going to try to find ways to grow here.”
