Remedy Brewing Co.
How leasing helped a growing brewery respond to COVID-19
Like many businesses, Remedy Brewing Co. faced new obstacles in the wake of COVID-19 and statewide social distancing guidelines. Bars and restaurants were forced to completely close their doors, which brought revenue down significantly for their South Dakota taproom. The founders decided to tackle this challenge head-on.
“For us, COVID was really tough for our on-premise sales. So, we decided to enter two new markets to help make up for the sales we had lost in our home market. That required a fairly large keg order — and with so many unknowns, we wanted to avoid that big capital expense.”
– Matt Hastad
CEO & Co-Founder, Remedy Brewing Co.
For Remedy Brewing, “their beer is their word,” and they take this promise seriously. This meant that while funds may have been tight, they weren’t prepared to compromise on quality control when it came to kegs. We worked with the Remedy team to grow their fleet via our unique leasing options — giving them the flexibility they needed to own their kegs while staying cashflow positive.
“We always knew we wanted to own our kegs, because then you know where they’re going, who has them, and when they’re coming back. For us, it’s about maintaining cleaning and quality control. But cooperage is a very expensive upfront cost, so being able to work with G4 Kegs to set up a lease program was fantastic. As we grow, they’re a great partner to have because we can order what we need, get kegs quickly, the prices are great, and the lease terms are amazing.”
Remedy Brewing has seen sales return since growing their fleet, and look forward to their continued partnership with G4 Kegs. As the market adjusts and rights itself in a post-COVID world, they have the option of buying out their lease, continuing the lease terms, or adding more to their fleet. In the meantime, the company is able to invest in new ventures — keeping the cash (and the beer) flowing.
“I started home brewing way back in college just as a hobby. As I got deeper into it, I brought my buddies in with me. In some ways we’ve been over our heads, but always willing to learn — and that’s where G4 has always been there. They’re crazy knowledgeable. They walk you through everything — and any questions you want answered, it’s instantaneous.”