In an industry where scalability often poses significant challenges for smaller breweries, Dorchester Brewing, led by CEO Matt Malloy, offers a lifeline through what Malloy calls “partner brewing.”
Malloy, with a background in scaling operations as a former executive at Zipcar, brought the philosophy of shared resources into his brewery ownership. His vision for Dorchester was built on offering a mutually beneficial relationship between his facility and smaller breweries, allowing them to focus on creativity. At the same time, Dorchester handles the heavy lifting of production and logistics.
Malloy described the core idea behind Dorchester’s business model as a reflection of his success in Zipcar’s innovative approach to car sharing: “Zipcar is basically owning hundreds of cars without actually owning them,” he said. “You just pay as you go. Seeing how successful that was, I tried to figure out how to bring that to beer.
“That’s where we came up with the concept of partner brewing.”
For many small breweries, brewing on their own comes with heavy costs. Malloy has witnessed this firsthand.
“The brewer that we work with, the ones that have figured it out,” he said, “say, ‘Wow, you can make a beer for 20-30% less than I can. Why the hell would I not do this?’”
This cost efficiency is a key aspect of Dorchester’s appeal in contract brewing, as smaller breweries often struggle to access the economies of scale that Malloy’s operation can offer.
In fact, the savings extend far beyond production. Partner breweries benefit from Malloy’s bulk purchasing power, including hops, cans, and labels.
“We use a wonderful label company called InTouch,” he said. “If you were to go to InTouch directly as a small brewery doing 300-400 barrels, you’re paying 11-12 cents a label. When you work with us, it’s half that. You’re saving a dollar or more per case just on labels.”
Dorchester’s flexibility is another draw for small breweries. With their ability to produce batches in sizes that match the needs of the partner breweries, Dorchester allows brewers to focus on their craft while scaling their output.
Malloy explained in this Brewer Mag podcast interview a story of a small brewery on Cape Cod that had been struggling to keep up with summer demand. They had been turning their smaller fermenters 10-12 times just to meet demand.
“The relief when I said, ‘I could just make 60-barrel batches for you, and you can focus on the stuff you want to focus on,’ was palpable,” Malloy said. “You could hear them sigh (in relief).”
Not only does partner brewing help with production, but Dorchester’s structure also eliminates the high entry barriers of traditional contract brewing.
“Traditional contract brewing locked people in for years with penalties if they wanted out,” Malloy said.
Dorchester took a different approach and Malloy said they write a partner brewing contract that protects the brewery working with the company as much as it protects Dorchester.
“I’ve had the same contract in place since 2016 and have had very few people try to change it,” Malloy said. “Everyone’s feedback is that the contract is fair, and that’s how it should be.”
This sense of fairness and transparency extends to the overall process. Malloy emphasizes that Dorchester is an “open brewery,” willing to educate partners about every aspect of cost and production.
“We don’t slide a number across the table like a used car salesman,” Malloy said. “It’s an educational tool as much as it’s a pricing tool. Brewers often have no idea what it costs to actually make beer, so it’s refreshing for them to understand exactly where their money is going.”
For breweries who can’t afford their own quality control labs or other specialized equipment, Dorchester’s state-of-the-art facilities provide a crucial advantage.
“We invested in a full-quality lab with a full-time quality manager, doing everything from PCR to ATP testing,” Malloy said. “These are things smaller breweries just don’t have the time or money for.”
Ultimately, Malloy sees his role as more than just a service provider. He views his relationships with partner breweries as long-term collaborations.
“We’re not here to scoop as much margin off the table. We’re here to help you so that you’ll brew with us for years,” he said. “That’s the whole benefit of contract brewing with someone like us.”
Malloy’s ethos is simple: when a brewery thrives, Dorchester thrives. By eliminating logistical hurdles and providing cost savings, Dorchester Brewing allows small and medium-sized breweries to focus on what they do best—making great beer.
“It’s the coolest part of this,” Malloy said. “It sounds too good to be true, but the reality is there is no catch.”
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