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How Five Community-Owned Businesses Were Bolstered with Cares Act Money- Anderby Brewing Feature

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Preston and Michell Smelt

The grandly titled Coronavirus Aid, Relief and Economic Security (CARES) Act came quickly out of Congress and was signed into law after the namesake disease clamped down on both public and private life in March of 2020. A key provision was a $367 billion loan and grant program for small businesses.
Sometime later, the city of Peachtree Corners was allocated $4.5 million meant to aid those enterprises and divvied it up among each qualifying applicant. This is a story about five Peachtree Corners enterprises forced to weigh a number of considerations, from how to balance safety for customers and staff with a driving need for revenue — and about the help they got to stay afloat.

Anderby Brewing

Anderby launched in 2019 with owner Preston Smelt and spouse Michell, along with a small cadre of employees, brewing a variety of IPAs, stouts, fruited sours and other favorites. They built buzz through their taproom and by supplying kegs of beer to restaurants. Then came COVID, and the whole enterprise, well, went flat.

They got a COVID-19 grant through the Cares Act plus help through other government programs that, lumped together, was in the low six figures. It was badly needed as their taproom shut down until June. With restaurants closed, as well and many later limiting to pickup and delivery once open, that part of the business dried up as well.

Smelt said some stark numbers told the tale. He said a good month prior to COVID meant $35,000 to $40,000 in total revenue rolling in from product distribution and their taproom. After the onset of the epidemic, that shrank to $3,500 or $4,000.

Anderby’s original brew canned on site.

“And it wasn’t like we were a long-established business where we could go to a bank and say ‘we need a $100,000 loan and we’ll be good for it as soon as we get out of this,’” he pointed out.

Smelt said, “The money got us to the point where we were able to make some reinvestment in product and stocking raw materials.” He said it also helped to fund the acquisition of capital equipment for a canning operation “because that was one of the few ways to move beer during this period.”

Preston and assistant brewer Dana Reppel.

That canning equipment took until October to arrive. In the meantime, they resorted to a hand bottler, filling exactly two bottles at once and selling finished six-packs out the front of their digs. Ultimately the endeavor was a money-loser, but Smelt said it did provide some revenue, got their product into the hands of their boosters and gave them visibility.

It also kept them from pouring even more beer down the drain than they had already had to do.
Another factor in play, he said, was a “fantastic landlord” who worked with them on their rental obligations. “We would not have survived without those two things,” he said bluntly.

Wall art

Smelt said he and his wife had just started talking about revamping their product lineup when the epidemic descended. The federal help helped enable them to settle on a core of three or four beers they think will help them expand throughout the region.

The couple is cheering the growing vaccination numbers and drooping COVID caseloads. With more companies reopening in the surrounding Technology Park and their workers beginning to stop in, and restaurants starting to clamor again for kegs, prospects are improving.

Anderby expansive interior

Another positive factor, he said, was that three new breweries have opened in the immediate area since they debuted. He said having several in close proximity will create a “brewing scene” that could become a destination choice.

At their own destination, they had cut taproom seating by 30-40% before reopening last summer and took other cleaning and sanitizing steps. “What we’re wanting to do is create an environment where you can come in and spread out and feel comfortable,” Smelt said.

In line with the push toward distancing has been a reluctance to re-start larger themed events. He said that if a bigger crowd shows up in conjunction with daily operations, they’re OK with that, but a large blowout is not in the cards.

In another case of altered plans, Smelt said earlier plans to do a capital expansion have been put on hold. All the juggling of procedures, products and profit-and-loss numbers has taken a toll.

“There hasn’t been a lot of sleep,” he said. “There’s still not. While things are improving, we’re not back to normal yet.”

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