Border X Brewing, LLC, the first 100% Latino-owned brewery in San Diego, is forecasting growth.
David Favela, co-founder and CEO, says the company is projected to reach $3 million in revenue this year. Next year, that figure is expected to double to $6 million, and then increase again to $10 million in 2023.
This is partially due to the company recently launching a $1 million fundraiser via WeFunder, a crowdfunding company, said Favela, who currently owns and operates three Border X Brewing locations (Barrio Logan, Bell and Los Angeles). The capital will go toward funding the company’s growth, including opening more tap rooms, expanding its brewing system and kicking off its canning business, he said. Tap room sales will still account for 80% of business, he added.
“Latino businesses are underfunded across the board,” he said. “That is what led us to do a round in 2018 for $200,000 – that helped us fund our expansion into Los Angeles, which opened in 2019. Now we are doing a million dollar raise and this is the first round. Canning beer is one thing, but we also have to get cans, get labels, get someone to go out and sell the cans – we need infrastructure and working capital to make that work for us. This raise will support growth and expansion and mostly focus on Southern California.”
Border X Brewing was founded in 2013 by Favela, his brother and Favela’s two nephews. Inspired by their Mexican heritage, the idea was to create a Latino brewery, he said, that produced culturally-inspired offerings. This includes an Agua de Jamaica-inspired beer, an Abuelita’s Chocolate Stout and a Pepino Sour, among others. As a result, the flagship location in Barrio Logan immediately resonated with the largely Hispanic community, said Favela, adding that Border X Brewing is the only brewery in South County.
Inspired by the reception, Favela opened the Los Angeles location in early 2019 followed by the Bell outpost later that year.
“Our brewery came from seminal experiences, which was making Latino beer in underserved markets and serving that market in the way it wants to be served,” he said. “I think people do not appreciate the fact that not only are barrios deserts of services like supermarkets, but also of places that people can go to see each other, feel safe and have fun. We replicated this when we expanded to Los Angeles in a 95% Latino neighborhood of low to medium income.”
Favela’s efforts haven’t gone unnoticed.
In 2020, Border X Brewing was nominated as a semifinalist in the Outstanding Wine, Spirits or Beer Producer category in the James Beard Foundation Awards. The annual James Beard Foundation Awards are presented by the James Beard Foundation to recognize culinary professionals in the United States. In the awards’ 30-year history, no San Diego chef, restaurant or brewer has won the nod, according to reports.
Mujeres Brew House
Border X Brewing continues to expand its reach.
In November last year, the brewery opened sister concept Mujeres Brew House, also in Barrio Logan. Mujeres Brew House is a collaboration between the all-female Mujeres Brew House beer education group, founded by Favela’s wife Carmen Favela and partner Esthela Davila, and Border X Brewing.
Mujeres Brew Club launched in 2019 with a mission to help women, specifically of color, enter and thrive in the male-dominated craft beer industry. Today, Mujeres Brew House offers 10 taps and is led by its female brewer, Samantha Olson.
“Our first beer was a blonde ale with grapefruit called Buena Vibra,” said Carmen Favela. “Then a tamarindo hefeweizen followed by a Hazy IPA with passion fruit called Fruta Magica and an amber ale dubbed Nuestra Senora. Now we have all of our Mujeres beers on our 10 taps and a kitchen via the place next door that will handle our food operation. Little by little, we have grown. Today, we host events, music performances, fundraisers and art shows in our space.”
Border X Brewing, LLC
CEO: David Favela
HEADQUARTERS: Barrio Logan
BUSINESS: Latino-owned brewery.
REVENUE: $3M in 2021
NOTABLE: Only brewery in South County.