Popular local craft brewery, Brewery X, tried to get into the San Diego market two years ago, but a deal fell through, including a possible acquisition of Modern Times Beer.
Two years later, the Anaheim brewery, known for its IPAs and hard seltzers, has found its way down south to the newly renovated Sheraton San Diego Hotel & Marina.
Co-founders Clayton Wellbank and Trevor Walls recently opened a Brewery X outlet at the Sheraton as part of a $100 million renovation of the hotel, which included de-signing a new culinary program.
Dubbed Brewery X Harbor Island, the restaurant opened in July with a tasting room and private dining room overlooking the harbor.
“We knew the harbor pretty well and knew that it was the right space,” Chief Executive Wellbank told the Business Journal.
Wellbank first met Walls, chief brewing officer, while attending San Diego State University between 2002 and 2006.
After Wellbank’s 12 years in real estate and Walls’ time spent at Pizza Port and Ballast Point Brewing Company, the two formed Brewery X in Anaheim. The company now has five locations in California.
“Having the only brew pub right on the water in San Diego Bay offers a truly unique experience,” Sheraton’s General Manager Sean Clancy said in a statement.
Brewery X considers the new San Diego location an anchor for further growth in the city.
The city and the surrounding region are home to more than 150 breweries.
“The main strategy is organic growth in existing territories,” Wellbank said.
More Space, More Equipment, More Beer
San Diego is one step in the brewery’s goal to expand its production.
Brewery X is on the way to producing 40,000 barrels of beer and seltzer this year, up from 30,000 in 2023. The company’s off-premises channel, product sold through grocery and specialty stores, mostly shot up during the pandemic.
The long-term goal is 100,000 barrels per year. The co-founders believe it’s possible to double their current output with the proper footprint, now including San Diego.
With distribution to Northern California, Colorado, Arizona and Massachusetts, every can of beer, seltzer, hard tea and other drinks are all brewed at the 75,000 -square-foot Ana-heim headquarters and warehouse on East La Palma Avenue.
The location is also surrounded by several other breweries on La Palma, including Pfeiffer Brewing Company, Bottle Logic Brewing and Broken Timbers Brewing Company.
The duo wants to be “the” regional brewery for Orange County.
“In brewing, the more square footage you have, the more equipment you can have. And the more equipment you have, the more beer you can make,” Wellbank said. “And we knew we wanted to be able to make a lot of beer to satisfy the region.”
The brewery has also settled into the entertainment scene in OC, with outposts at the Honda Center and Angel Stadium. They’ve also set up shop at Ontario Airport.
More high-profile locations are in the works. Wellbank said the brewery is actively engaged with a few possible partnerships right now.
Brewery X also plans to grow by staying on top of consumer trends. Wellbank noted that there has been a rise in demand for hard teas in 2024 and most recently, the company is looking into the developing category of non-alcoholic beer.
“It is growing significantly, so we are in-vesting and focused on that part of the port-folio as well,” he said.
