Knuckle Brewery owner Bryan Carter recently purchased 1.6 acres in southeast Sturgis, where he hopes to build a new 15,000 square foot brewery, taproom, and gift shop. This expansion, according to the Rapid City Journal, wouldn’t be possible in the current brewery space at the Knuckle Saloon on the corner of Second Street and Lazelle Street in Sturgis.
Currently the brewery’s size can’t keep up with the demand for the local craft beer, which began brewing in 2014. Though Carter did expand in 2016, it still was not enough space. The company can currently brew 10 barrels at a time, but this is a slow process and limits production. The new brewery would utilize a four-vessel system and would have a 30-barrel capacity.
This expansion takes advantage of a new South Dakota law that expands the legal capacity for craft breweries from 5,000 barrels to 30,000 barrels annually. Carter thinks that the new brewery will allow The Knuckle to brew 15,000 barrels annually, with room for future expansion if necessary. The law also allows craft breweries to directly market up to 1,500 barrels of their products to other bars without the use of a distributor.
Carter is also considering restaurant options for the new brewery space and the possibility of bringing another business on in partnership.
Read more about economic development in the Black Hills at the Black Hills Knowledge Network news archive.