Brewbound features Dokkaebier Acquisition of Oakland’s Federation Brewing
Dokkaebier Acquires Oakland’s Federation Brewing
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Dokkaebier, the Northern California brand inspired by Asian culinary ingredients, has its first brick-and-mortar location after acquiring Oakland-based Federation Brewing last week.
“Definitely, it gives us a lot of opportunity to see a lot of customers in person,” Dokkaebier founder and CEO Youngwon Lee told Brewbound. “I think it is very critical to have customers taste the product as they come and experience it.”
The deal, for which financial terms were not disclosed, includes Federation’s space, brands and intellectual property. Dokkaebier will continue to employ Federation’s staff, according to a press release.
Lee launched Dokkaebier in February 2020, just before the pandemic upended the beer industry and put sampling opportunities on hold. Lee was left with fewer options to let drinkers taste Dokkaebier’s offerings, which include Kimchi Sour with gochugaru and ginger, Milk Stout with cardamom and peppercorn, and Yuza Blonde with yuzu.
Since the return of in-person events, Dokkaebier has poured at “crazy amounts of beer festivals,” Lee said. With its new home, Dokkaebier no longer has to travel to meet drinkers in the field.
“A lot of these experimental flavors that we do, people want to try it out before they even buy,” Lee said. “Kimchi Sour you might see at a retail store, but it’s kind of scary to even try it out.”
Lee signed the contract to acquire Federation last week and resumed taproom operations Thursday.
“Everything is branded as Federation right now,” he said. “I just wanted to get out here and get our beer and have anyone who wants to taste our beer get a chance to do it.”
Dokkaebier will begin remodeling the brewery and taproom when the building is closed to the public, working toward the goal of hosting a grand opening in May, which is Asian/Pacific American Heritage Month.
“We wanted to use an opportunity to showcase what Asian craft beer is, what it tastes like,” Lee said.
Among plans for Dokkaebier’s introduction to the community later this spring is a street festival inspired by South Korean chimaek (or chimac) celebrations, a portmanteau combining the Korean words for chicken and beer.
“I want to bring it over here, introduce that and then also use the opportunity to bring in local breweries and local food producers or food trucks to have a community-driven event,” Lee said.
With the building’s 15-barrel brewhouse, Dokkaebier plans to continue experimenting with new spices and fruits, something it couldn’t always do as a contract partner using other breweries’ equipment.
“This really gives us an opportunity to really go all out and make whatever that we really want to make,” Lee said.
Dokkaebier will produce Federation’s beers and continue the brewery’s relationship with Hella Coastal, the only Black-owned brewery in Oakland, and Brewing with Brothas, a Black-owned brewery-in-planning in East Palo Alto. Beers from all brands will be served in Dokkaebier’s taproom.
“We are excited to join forces with Youngwon and Dokkaebier,” Federation co-founder Aram Cretan said in a press release. “Dokkaebier shares our commitment to advancing diversity, equity and inclusion in the beer industry and will help extend our legacy as a community-oriented brewery.”
Federation was founded in 2014 and produced 850 barrels of beer in 2021, the most recent year for which data is available from the Brewers Association (BA).Lee sees providing contract brewing services as a way to pay it forward in the industry.
“Our brand started with contract brewing,” he said. “In the long term, if we have the ability, we would like to, in any way, provide more opportunities for breweries to start.”
Dokkaebier self-distributes within California, but expects to expand to new markets soon with the production capacity of its new home under the supervision of director of strategy and new markets Avery Glasser. The brand is sold in more than 400 Golden State retailers.
In the off-premise, Asian markets have been a fruitful class of trade for Dokkaebier, once buyers get to know craft beer and the brand’s place within the segment, Lee said.
“Now that we are becoming more familiar, people are taking us more and more, but in the early stage, it took me six months, nine months to get into Asian supermarkets, because they’ve never sold craft beer before,” he said. “It’s like the grocery supermarkets 30 years ago, right? They only sell Budweiser, and then they’re not used to selling craft beer, which is a lot more expensive, has to be refrigerated, has a shelf life, so they’re not really used to it.
“Once they start selling it, they actually sell more than a well-known craft beer,” he continued. “You go to a craft beer [section in a] grocery store, they have 100, 200 different beers, whereas these Asian retailers, we are the only craft beer. So, I have a hard time getting in, but once you get in, they tend to give us a better spotlight.”
Dokkaebier has raised $480,462 on crowd investment platform WeFunder, with a goal of $2 million. The investment will help the brand push into Washington, Oregon, Nevada and Arizona in 2023, and New York, Massachusetts, Connecticut, Rhode Island and New Jersey in 2024, as well as hire more employees.
Follow this link to watch Lee’s pitch during the final round of Brewbound Pitch Slam 13 in 2021.
