Frederick Brewery Founder Sandra Kowalczyk Secures Regional Distribution Deal

Sandra Kowalczyk, founder of Frederick-based Millrace Brewing Company, signed a regional distribution agreement this month that will put the brewery's beer on store shelves across Maryland, Pennsylvania, Virginia, and Delaware, a significant expansion from its current distribution limited mostly to Central Maryland.

Kowalczyk opened Millrace Brewing nine years ago in a converted mill building in downtown Frederick, initially selling exclusively through the brewery's own taproom before expanding into limited local distribution five years ago. The brewery has built a following particularly around its barrel-aged sour beer program, a specialty that helped it stand out in an increasingly crowded regional craft beer market.

"We turned down two distribution offers over the past few years because the terms would have meant losing control over how our beer got handled and stored," Kowalczyk said. "This deal finally gave us a partner who understood that our sour program needs to be treated differently than a standard lager."

The expanded distribution will require Millrace to roughly double its canning line capacity, and Kowalczyk said the brewery is investing approximately $2.5 million in new production equipment to meet the anticipated volume increase. The brewery currently employs 34 people between its production facility and taproom operations.

Kowalczyk said the regional expansion was a deliberate, slower path compared with brewers who pursue national distribution early, arguing that maintaining quality control across a smaller footprint mattered more to her than rapid growth. Millrace Brewing reported approximately $6.8 million in revenue last year.