Kalona loses a keystone business

By Cheryl Allen
Posted 10/25/24

KALONA

For those who have studied animal science, the concept of a ‘keystone species’ is a familiar one. The Oxford dictionary defines it as “a species on which other species in an ecosystem …

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Kalona loses a keystone business

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KALONA

For those who have studied animal science, the concept of a ‘keystone species’ is a familiar one. The Oxford dictionary defines it as “a species on which other species in an ecosystem largely depend, such that if it were removed, the ecosystem would change drastically.”

A keystone species has a disproportionally large effect on its community. It is the glue that holds a habitat together.

In its 12-year lifespan, Kalona Brewing Company may have become one of Kalona’s keystones. Continuing without it causes uncertainty for Kalona’s leaders and businesses.

“They are going to be missed, and I’m sure our other businesses are going to feel their absence,” Tonia Poole, Director of the Kalona Chamber of Commerce, told The News. “You don’t need to like beer to recognize the positive influence they brought to Kalona. Visitors would come for the microbrewery but also shopped at our retailers. Some came for the food, live music, or other events. Kalona Brewing Co. was not just about beer.”

Mark Robe, Mayor of Kalona, echoed these sentiments.

“I was very sad to hear about the brewery closing. I consider the brewery as a destination spot for Kalona,” he said. “I also worry about the trickle-down effect this could cause if it does not reopen.”

There are 115 breweries in the state of Iowa; in 2022, they generated over $1.25 billion in economic impact, which includes beer brewed by craft brewers as it moved through the three-tier system of breweries, wholesalers, and retailers, as well as all non-beer products, such as food and merchandise, sold in tap rooms.

Kalona Brewing Company may have been responsible for a few million of that.

Iowa’s craft brewing industry supports 1,500 jobs. About 17 of those were at Kalona Brewing Company.

The tax on wholesale beer funds the Iowa Beer and Wine Promotion Board, which helps boost beer tourism in our state. How many of those tourists were guided to Kalona?

According to the Iowa Brewers Guild, “Brewing award-winning beers is just part of Iowa’s craft brewing industry. Brewers contribute to economic reinvestment, spur the Iowa travel industry, and create jobs. The industry creates community.”

Community leaders are mourning the loss of our local brewer. Poole points out that “they donated to local community events, they gifted items for fundraisers, volunteered at events, they supported us.”

There will be a felt loss of more than just revenue.

“We are saddened to hear about the upcoming closing of the Kalona Brewing Company after over a decade of dedicated service to our community,” Ryan Schlabaugh, Kalona’s City Administrator, said. “The brewery has been a cherished part of downtown Kalona, providing a gathering place for locals and visitors alike, and contributing significantly to the vibrancy and spirit of our community.”

“WEDG is saddened to hear that Kalona brewing company is closing its doors. This restaurant has been a beloved part of our community for a number of years, serving up delicious foods, unique brews and creating countless memories for our residents,” Mary Audia, Executive Director of the Washington County Economic Development Group, said.

However, creation follows destruction, and our leaders also look forward.

"We would welcome anyone who's looking to carry on this wonderful establishment to reach out to us as soon as possible,” Audia said. “It’s a great building that's turnkey and ready for the next brewery owners.”

“I’m grateful [Kalona Brewing Company] was here as long as they were, and I hope we can find a similar business to take their space,” Poole said.

In their closure announcement on Facebook, Kalona Brewing Company owners Ted and Becky Nagy wrote, “We are currently exploring other business opportunities, including the possibility of KBC reopening with new partners, and remain hopeful to find a better fit in the future.”

Some speculate Big Grove Brewery, which has taprooms in Iowa City, Cedar Rapids, and Des Moines, as well as a brewpub in Solon, may have a role to play.

“As stated in the brewery’s statement, I am hopeful that they can partner with someone to maintain the brewery and get it reopened ASAP,” Robe said.

“As a city we are committed to working closely with current ownership to explore possibilities for the future of the property,” Schlabaugh said. “We look forward to the next chapter in this space and remain dedicated to supporting the growth and vitality of downtown Kalona.”

As with any business closure, multiple causes no doubt contributed to the end of Kalona Brewing Company as we know it. Kalona’s living room was on an upward trajectory until the challenges of COVID cracked its foundation. But Poole reminds us that any business could go under without the support of the community in which it serves as a keystone.

“This is a prime example of why we desperately need to support local,” she said. “Shop our other businesses in town – retailers, hardware, grocery, insurance – all of our services. It costs more than the sticker price if we don’t.”

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