This case is used in Darden's required first-year course, Strategic Thinking and Action.In 2015, Steve and Heidi Crandall, the founders of Devils Backbone Brewing, LLC (DBB), were looking back on eight years of unanticipated success and significant growth. DBB had created a destination, a brand, and beer that drew people from all over, and it was the largest craft brewery in its region. The entire community, not just loyal beer drinkers, had supported DBB. In addition to funding and zoning accommodations, so many local residents had built their own economic lives around what had been their little brewery that could.But the success had brought challenges, specifically in terms of growth. DBB was consistently not meeting demand in its existing markets and was receiving complaints about out-of-stocks. The Crandalls and their team had to figure out how to grow with, or preferably ahead of, demand for DBB's product. Should DBB build further capacity despite an already exhausted line of credit? Should it employ a contract brewer despite the local authenticity concerns such a move might stir up? Or should it just keep trying to manage business within its existing footprint, comfortably serving its loyal customer base? Excerpt UVA-S-0300 Rev. Jun. 29, 2020 Devils Backbone Brewing, LLC: An Idea Brews It was 2015, and eight years had passed since Steve Crandall and his wife, Heidi, had followed their dream of opening Devils Backbone Brewing, LLC (DBB). In a relatively short time, the company had seen significant growth. In 2012, only four years after founding, the company sold 10,024 barrels of beer (BBLs), and its iconic Vienna Lager had received press describing it as “the second biggest craft product launch of 2012.” DBB had successfully created a destination, a brand, and beer that drew people from all over—but Crandall grumbled over the second-place finish. The following year, DBB surpassed 2012 by growing sales 149% to 24,906 BBLs, making it the largest craft brewery in the region. The entire community, not just loyal beer drinkers, had supported the firm in its march. In addition to funding and zoning accommodations, so many local residents had built their own economic lives around what had been their “little brewery that could.” As Crandall enjoyed a newly designed and yet-to-launch brew, Danzig Baltic Porter, he recognized that he had worked his firm into one of the odd problems of success. Crandall said: This year, we projected to grow 80% to 45,000 BBLs. However, just 45 days into the year, our wholesalers have already revised their annual estimates upward. Currently we are not meeting demand in our existing market (we are brewing at 40,000 BBLs) and it is extremely challenging dealing with our distributors due to out-of-stocks. We need to grow with, or preferably ahead of, the demand for our product. We are failing to do this for the third year in a row. Our outlets don't seem to fully appreciate that our explosive growth is unprecedented. They have their own concerns, and are expressing their frustrations with us. I am beginning to worry about retailer backlash.” . . .