Michigan Brewing Company - History

History

The microbrewery started in 1996. The Celis Brewing Company was purchased by Michigan Brewing in 2002. Pierre Celis, who is credited for the Wit beer revival in his native Belgium, and founded the Hoegaarden Brewery there and the Celis in Austin Texas, was hired to continue his famed style of beer.

In 2006 the Michigan Brewing Company announced that a move into a larger facility, in order to stock more beer. Pub 122, the craft brewery's own pub, also moved and features 16 beers on tap, more seating, and an expanded menu. The new facility is 76,000 square feet (7,100 m2), which is about 7 times larger than the prior facility. The new factory, store and associated pub, plus an outdoor patio of 3,000-square-feet, made it "one of the largest breweries in Michigan. Second in distribution behind Kalamazoo's Bells Brewery . . ."

In 2007, Michigan Brewing Company settled into a new building increasing capacity and setting up several projects. In partnership with Michigan State University, Michigan Brewing Company started producing biodiesel in the fully functional on-site lab and production facility in order to power the brewery's boilers. Plans are also in place to power the entire brewery's electricity needs from biodiesel generators. In 2007, the 5th anniversary of acquiring and continuing the legend of Celis, MBC won a gold medal at the Great American Beer Festival for its Celis Grand Cru. This was the only gold medal of the many medals acquired by Michigan breweries that year.

The brewery also became a small distillery.

On April 24 2012, the company was evicted from its Webberville headquarters. The property was foreclosed after the company failed to make loan payments. The 76,000 square foot property had been for sale for $1.65 million, and the company reported plans to rent the space, pending its move to Fenton. The eviction followed an inability to come to terms with the new owner on a new lease.

The Company was slated to open a small brewery, restaurant and pub to a recycled Firehouse in Fenton, Michigan, which was going to be leased/bought ($1 per year for seven years, plus taxes, then a $1.00 purchase) from the City Downtown Development Authority. Plans were reported to locate the brewery in the remodeled facility in Fenton, Michigan. General manager/brewer Bill Tadrick said the business is waiting on the architect to complete the plans. Notwithstanding the foreclosure and eviction, city officials expressed optimism that the relocation to Fenton would happen. Meetings to discuss the status of the fire hall lease are scheduled.

Unfortunately, due to the closing of the business in Webberville, the lease with Fenton was terminated under mutual agreement by both parties on April 26, 2012. Bobby Mason, owner and chief brewer, stated that the brewery was not entirely happy with the proposed arrangement, that they had been preoccupied with the eviction, and that it was for the best, even though half a year's worth of preparation was lost. The Fenton location is being considered by the Arbor Brewing Company.

MBC brewpub located in downtown Lansing is a separate entity, sells Michigan Brewing Company product (and also its own brewed on premises) and remains open. They intend to increase their own output.

The Michigan Brewing Company was foreclosed upon and its assets sold at auction.

All of its assets were sold, including the names and formulae of its beers. Among the assets was the Cellis name, which had been acquired by Bobby Mason for Michigan Brewing in 2002. Sushil Tyagi, of Craftbev International Inc. represented the Celis family. He said, “I have been building a brewery with the Celis family.” “We’ve already been building the distribution network,” he said. “We’re making all the plans for marketing and branding. This (brand name repurchase) is just the one missing piece.”

The Badass beer that was developed with Kid Rock is expected to be picked up by another partner. Badass reportedly accounted for half of Michigan Brewing Company's product.

The financial failure was the latest part of a series of ongoing problems, including accounting, financing, creditor and shareholder relations. It is said that the ability to craft fine beer, like Peter Cellis did with Cellis Brewing and Hooegarden, is no guarantee of business acumen. One may be able to make great beer, but not have the right stuff to run a company that operates a brewery. As one critic observed: "Mason was like a lot of people running breweries: able to make great beers, but not so keen on finances. He apparently tried to keep the books himself, when a Financial Officer should have been brought in. And he was, like so many businessmen, caught short when a debtor called in its note, and found himself evicted from his own premises."