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MN's August Schell predates the Civil War, which means it's seen worse times than these for the industry at large, though it's hardly immune to the downward trend of recent years. The co shipped 117K total bbls last yr and is lookin' to get back to 120K in 2026, VP Kyle Marti, a 6th-generation descendant of co's namesake founder, told CBN. There were nonetheless bright spots in 2025, including a 3d straight yr of growth for its Grain Belt Premium Light Lager brand and a strong showing from specialty offering Peanut Butter Porter. That's just part of how a biz 16 yrs older than Major League Baseball stays relevant in a challenging environment thanks to its resilience and deep roots in the Land of 10,000 Lakes, where it does the lion's share of its business. A 50/50 On- and Off-Premise Split is Long Gone Like so many breweries, Schell continues to be affected by Covid. "The pandemic and policies that were put in place have completely changed the landscape, and not for the better," Kyle said. "We have pushed consumers away from the on-premise sector, and retailers continue to struggle to this day." Prior to 2020, the co's business was split 50/50 between on-premise and off-premise sales, "but now is nowhere near" that number, Kyle said. That's part of the reason that "about three years ago we made the decision to stop chasing trends and just focus on our brands in our portfolio," he added.And even then, the going has been tuff, especially with respect to seasonal offerings Bock, Lake Escape, Snowstorm and Oktoberfest, which are "steady," Kyle said, but "increasingly difficult to grow as distributors work to trim down their inventories and reduce risk for [out of code product] destruction." Schell is big enough to also be on the other side of that particular two-edged sword tho, as Peanut Butter Porter has shown "some pretty substantial growth as we increase distribution and capitalize on players exiting the market."What Happens With Distribs When Things Get Hard? "When things get hard, your partnerships at the distributor level are often tested first," Kyle said. "It's during these difficult times you see who the real partners" are: "Often times there is an investment that needs to be made by both parties to get back to success, and those who understand and value the partnership will see that and jump in. Unfortunately, not all distributors feel the same and you see the opposite from some when the times get hard." In home state MN, where the co continues to outperform the mkt, Schell is with a mix of MC and AB houses including Dalheimer, Beverage Wholesalers, Inc., College City Bev, Northwest Beverage Inc, Schott Dist, and Starkovich Dist.Hunting for Growth With Grain Belt Light Schell bought Grain Belt Premium in 2002 to help its dual-market below premium/craft approach. Despite the headwinds, Kyle said co's Firebrick Vienna-style amber lager "almost pulled into positive numbers, remaining mainly flat for the year," which is backed up by NIQ off-premise scans thru Dec 27, showing it down ~3.5% in YTD $$ and vol sales, beating the craft industry as a whole. Meanwhile Grain Belt Light was up "in almost every package," with NIQ logging the gains at 1% in $$ sales and 3% vol, buoyed by co's marketing efforts in the hunting, fishing and camping sectors.Historic Stability as a Strength The tuff times are likely to continue, Kyle said: "You will continue to see closings as more loans and private equity come calling," and "I think you will also see the flame start to die out for people that started the business as a dream or a hobby, and realize it takes a ton of work to make it go in this business." For a co that's been doing the work since before Abraham Lincoln was elected, they've been making it go long enough that their age is a strong selling point. "I think consumers will start going back to the brands they know and trust more frequently," Kyle said, "especially as wallets get a little tighter."

August Schell Down to 117K BBLs in Tuff 2025, Aiming for 120K this Yr; Grain Belt Premium Light 3 Straight Growth Yrs; Dealing with Distribs in Down Times

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