Flying Dog Brewery to be acquired by NY company
FX Matt Brewing will take over production by August, is looking to open a taproom
Flying Dog Brewery, based in Frederick, will be acquired by New York-based FX Matt Brewing Co., which will take over production of Flying Dog beer by August.
FX Matt, a family-owned brewery founded in 1888, is looking for a location in Frederick to open a Flying Dog taproom, which would include an “innovation” brewery, the companies said in an announcement Monday.
Despite investing millions of dollars in its Frederick brewery, the brand has been unable to take itself to the next level to stay competitive, Flying Dog CEO Jim Caruso said in Monday’s announcement.
The brewery “has too many limitations and puts Flying Dog at too great a competitive disadvantage,” Caruso said in a news release.
Flying Dog, the state’s largest producer of craft beer, had put major expansion plans on hold in 2017 because of legislation regarding state brewery regulations, Caruso said at the time. The brewing company had bought nearly 32 acres of farmland near Frederick Municipal Airport for $2.55 million to establish a brewery five times the size of its current 50,000-squarefoot facility.
Caruso said in Monday’s announcement that he believes FX Matt will be the best steward going forward for the Flying Dog brand.
“We have worked with them for many years,” Caruso said. “They are a prestigious family-owned brewery with more than 135 years of history, they are committed to building on the deep roots Flying Dog has established in Maryland, and their capabilities will take Flying Dog to a new level.”
The New York brewery, which said it’s the longest running family-owned brewery in the U.S., has been brewing some of Flying Dog’s beers over the last decade because of the Frederick brewery’s limitations. FX Matt is known for its Saranac line of beers and its Utica Club lager, which it says was the first beer sold after Prohibition ended in 1933.
The acquisition will allow the Flying Dog brand to adapt to changing consumer preferences, giving it the resources to improve its current product portfolio and develop products in emerging categories, said Ben Savage, Flying Dog’s chief marketing officer. Savage will become president of the Flying Dog division of FX Matt Brewing.
“There will always be a market for great beer, but the lines between beer, cocktails, spirits, and wine continue to blur,” Savage said in the release.
Flying Dog will begin shifting production to New York over the summer, shutting down operations in Maryland by August. The businesses did not say when they expect to open the Frederick tap house.
Caruso said FX Matt will offer employment to as many Flying Dog workers as possible.
Fred Matt, CEO of FX Matt, said the acquisition will allow the New York company to grow in the mid-Atlantic.
“When you think of craft beer in Maryland and the mid-Atlantic, Flying Dog is the first brand that pops into your head,” Matt said in Monday’s announcement.