Spokane’s largest breweries are increasing distribution and gaining market share as the industry contracts statewide, Washington state Liquor and Cannabis Board data show.

According to the board’s reports of net sales to importers and distributors, breweries in the state of Washington sold a total of 110,991 barrels of beer to importers and distributors in the first quarter of 2023, down from 112,169 barrels in the same period a year prior, for a 1.05% decrease in barrels sold. A full barrel of beer is 31 gallons, and in practice, it typically is separated into cans, bottles, and kegs for retailers to sell to consumers.

That statewide decline doesn’t align, however, with the trajectories of Spokane’s four largest breweries. No-Li Brewhouse LLC, Brick West Brewing Co., Lumberbeard Brewing LLC, and Iron Goat Brewing—the four highest-producing beermakers on the Journal’s most recent list of breweries—all have sold more to importers and distributors in the first quarter of 2023 compared with the first quarter of 2022.

Founded in 2012, No-Li Brewhouse sold 3,308 barrels to importers and distributors in the first quarter this year, compared with 2,810 barrels in the first quarter a year prior, for an 18% increase, the liquor board’s data shows.

John Bryant, who owns No-Li with his wife, Cindy, says the brewery is expected to produce over 19,000 barrels of beer this year. According to the Brewers Association, a regional brewery has an annual beer production of between 15,000 and 6 million barrels. By that definition, No-Li, which has a brewhouse and bier hall located at 1003 E. Trent is Spokane’s University District, is the only Spokane-based regional brewery.

Bryant attributes part of No-Li’s growth this year to a switch in distributors in November. No-Li now distributes through Spokane Valley-based King Beverage Inc., an Anheuser-Busch distributor.

The distribution growth of No-Li and some other Spokane breweries wasn’t always the norm, Bryant says.

“When we started No-Li back in 2012, about 99% of all the craft beer consumed in greater Spokane was from another city, state, or country, because there wasn’t a craft brewing movement of any size,” he says.

Bryant’s son, Cole Bryant, who is vice president of business operations at No-Li, says that higher costs due to economic challenges have made it more difficult for breweries to make beer and to turn a profit. He also says it’s important for breweries to focus on their pubs and taprooms before growing their distribution operations.

“I think a lot of (breweries) don’t realize that making money from the production side doesn’t come for many years,” Cole Bryant says.

Despite the various economic challenges, John Bryant says No-Li and other Spokane breweries want to make Spokane a craft brew destination.

“Part of our job is upholding quality and being known in America as a great city for beer,” he says. “And there’s other breweries doing an amazing job.”

Bryant says that he wants Spokane’s craft brew scene to bring attention to the city the way that Gonzaga University basketball does—with sustained growth and success.

Brick West Brewing Co., which opened its downtown taproom, at 1318 W. First, at the beginning of 2020, sold 605 barrels to importers and distributors in the first quarter this year, a 30% increase over the year-earlier period, when it sold 465 barrels.

Matt Goodwin, co-owner of Brick West, says that one reason for the brewery’s recent distribution growth is that it added more brewing tanks to its downtown facility.

“We doubled the capacity of our brewing operation, so we can simply make more beer,” Goodwin says.

Being a younger brewery, Brick West also continues to increase its exposure.

“We continue to expand our brand, expand our marketing, expand our outreach to the community, so I think more and more people are still finding out about us,” Goodwin says.

He says that Brick West uses Bellevue, Washington-based Odom Corp. for distribution services.

“They’ve gotten us in with local grocery stores like Yoke’s and Rosauers, and we’re just getting into Safeway and Albertsons,” he says.

Lumberbeard Brewing, which was founded in 2018 and opened its downtown taproom, located at 25 E. Third, in 2020, sold 281 barrels to importers and distributors in the first quarter of 2023, compared with 250 barrels in the first quarter of 2022, for a 12.4% increase.

Bret Gordon, co-owner and head brewer at Lumberbeard, attributes this year’s distribution growth to finding more outlets for its beer.

“Most of our beer is going to restaurants and bottle shops. Around here, in Spokane and surrounding areas, we self-distribute. We are in all of the Rosauers and Yokes in the Spokane and (Spokane) Valley area, Liberty Lake as well,” Gordon says.

Earlier this year, Lumberbeard made its way into both the North Spokane and Spokane Valley Costco warehouse stores.

Gordon says that Lumberbeard still sees opportunities to increase its market share statewide.

“For Spokane, we are definitely one of the bigger (breweries), but if you look at us statewide, we are very, very small,” Gordon says. “Because of that, we had room to grow, and a lot of the bigger ones didn’t have room to grow, because they were already distributing on such a wide platform.”

Gordon says he thinks part of the reason some Spokane breweries are showing distribution growth is that the industry here wasn’t quite as mature as the market on the west side of the state.

“The (Spokane) craft beer scene was just quite a bit behind the rest of the state,” Gordon says.

Iron Goat Brewing, which was established in 2011 and is located at 1302 W. Second, grew first-quarter production by about two barrels—to 214 from 212 in the year-earlier quarter—for a slight growth of 1%. Iron Goat was the fourth highest-producing Spokane brewery on the Journal’s most recent breweries list.

While data shows the four largest breweries here are experiencing increased sales, Bryant says that the overall growth of the craft beer industry has slowed some.

“The industry of beer is actually kind of consolidating,” he says.

Bryant says that No-Li’s competition is larger, and national breweries, and No-Li can continue to grow by taking shelf space away from national brewers.

He says he wants to continue spotlighting Spokane’s beer scene.

“If Spokane really becomes known as a national beer city and an international beer city, the tourism and the money that’s going to create into our system here economically to support the city is off the charts,” Bryant says.

Based on sales, he says, No-Li is a top 25 independent, family-owned brewery in the U.S. 

Goodwin also says he thinks Spokane’s craft brew industry can continue to grow, because consumers are just beginning to get excited about craft breweries and more flavorful beer.

Brick West has plans in place to expand its presence in the Spokane area and hopes to grow its distribution efforts.

Goodwin says he’s still hoping that Brick West will be able to open a new brewing facility on the West Plains in 2024. The brewery also plans to open a taproom north of Spokane, in Colbert, but that project is currently on hold due to zoning issues, he says.

Gordon says he hopes to get Lumberbeard into grocery stores in Idaho soon.

“We’re at a point where we can still push production a little bit harder with our current equipment,” Gordon says.

He adds that on-site sales play a larger part in growth at most breweries.

“I think taprooms are very important and that will essentially drive growth,” Gordon says. “Shelf space is hard, and there’s a lot of breweries that produce cans and a lot of breweries that you’re fighting for ideal shelf space with.”

Bryant says that the breweries here can continue making Spokane a more popular destination and be key players in its economic growth.

“I think the city has so much potential, and we just want to be a part of it,” Bryant says.