Eric Warner, president and CEO of Denver-based Flying Dog Brewery, announced today that the company is concentrating its brewing operations at a state-of-the-art facility in Maryland where Flying Dog has had its beers brewed since 2006. Warner also announced that the company recently raised $3 million in capital to fund continued development of its brands.

Flying Dog Brewery, which has been in operation since 2000, will produce its last beer in January 2008. The company will maintain its corporate headquarters at 2401 Blake St. in Lower Downtown Denver, and Flying Dog’s 13 craft beers will continue to be distributed throughout Colorado.

Increased costs of raw materials, including hops and malt, combined with the loss of contracts from smaller craft brewers were a significant factor in the decision, according to Warner. “By concentrating the brewing operations in Maryland, we will become a more efficient business, which is very important given the extremely competitive conditions in the craft beer industry,” he said. “This is a smart, proactive business move for our growing company and the most efficient use of our capital.

“Aside from the concentration of production, we’re proud to say that our customers won’t notice a difference,” Warner continued. “We are committed to providing our customers in Colorado and throughout the country with the highest-quality craft beers that they’ve come to know and love.”

The Maryland facility, where 70 percent of Flying Dog’s beers are already being brewed, has several state-of-the-art features that allow for higher-quality and more efficient brewing, including a modern bottling line that produces 250 bottles per minute, compared to 140 bottles per minute at the Denver facility, and has lower oxygen pick-up at filling, leading to longer shelf life, and flavor stability. Additionally, the Maryland facility features improved brewhouse equipment and a more spacious warehouse and cooler.

“The building our Denver brewery is in is old and needs a minimum of $1 million in infrastructure improvements to keep up with our increasing production levels and product quality standards,” Warner said. “This year alone, we saw a 20 percent unit growth – our strongest yet. Concentrating our operations at the Maryland facility will allow us to the meet the growing demand by surpassing current production levels.”

There will be no layoffs on Flying Dog’s production team as Flying Dog Brewery’s Denver production team will all be offered jobs at the Maryland brewery including relocation packages and a scouting trip in January.

“We’re proud of our Denver production team and are thrilled at the opportunity to have them on our team in Maryland,” continued Warner. “We’re working very hard to ensure this happens.”