Jester King Founders Put Dripping Springs Brewery Up for Sale

Jester King Brewery announced on Wednesday that its founders, Jeff Stuffings and Michael Steffing, are seeking a new owner for the Dripping Springs facility. The brothers opened the brewery in 2010 and have operated it for 16 years. They posted the news on the company's social media channels, noting that the business enters its 17th year with a need for a stronger financial base.

"As we enter our 17th year, Michael and I recognize that Jester King needs a stronger financial foundation to realize its potential," the statement said. The founders added that they believe a suitable buyer could build upon the work established by the team and the local community.

The brewery remains open to visitors on its 168-acre ranch located just west of Austin. The business originally built its reputation on traditional farmhouse brewing using Texas well water and local ingredients. Over time, the company has shifted its production mix away from wild ales toward more mainstream IPAs, lagers, and stouts.

Stuffings told the Houston Chronicle that profit margins have been thin for the past three to four years. He stated that the founders want to inject new financial life into the company to capitalize on its existing potential. The brothers expressed confidence in the brewery's self-distribution model, which involves shipping goods directly to retailers across the state.

The shift in product focus responds to changing consumer habits and financial realities. Wild beers require substantial time and capital. For example, the barrel-aged wild ale Atrial Rubicite takes six to 12 months to produce. In 2022, sales of mixed fermentation farmhouse beers dropped from roughly 2,000 barrels a year to 400 barrels.

"I can jokingly say we're a 16-year-old brewery that's a three-year-old startup in terms of our business model," Stuffings said. He added that the founders hope to stay on with the brewery and continue guiding its direction. "Being independent is really in our DNA," he said.

Axios reported this morning that the number of craft breweries in Texas decreased for the second consecutive year. The slowdown is attributed to lower alcohol consumption, shifting drink choices, and rising costs for ingredients and real estate.