David Favela, his brother and two nephews were all working corporate jobs in Southern California when they decided to make a major change.
The idea was to quit their jobs and create a craft brewery celebrating Latino flavors and culture.
“A huge gamble,” Favela said.
How much did they know about brewing beer?
“For my brother and I, zero,” Favela said with a laugh. “For my nephews, they are what I would call advanced home brewers.”
Despite their lack of experience, the family decided to go for it.
“We found that our jobs took us away from being together,” Favela said. “So we started the brewery as a family project and to just have fun – no business plan required. Well, that was the original vision.”
What started out as a care-free passion project quickly turned into an advanced operation. Favela joked that the “no business plan required” idea lasted about 30 seconds.
In November of 2013, Border X Brewing became the first Latino-owned brewery in San Diego, and the immediate response from the community – largely low and medium income – inspired a lot of confidence.
“The moment we raised our doors we had a line of 50 people waiting to try our beer,” said Favela, Border X CEO. “There were 85 breweries in San Diego already, we became the 86th. We knew we couldn’t brew a better IPA than some of the other breweries in San Diego, that didn’t make any sense. The first strategic decision we made was to make beer that reflected our culture, reflected who we were. We combined the European brewing tradition with the Latino or Mexican American palette to make something brand new.”
Take their hugely popular blood saison, for example, which is inspired by the Mexican drink Jamaica.
“My nephew brewed that beer using hibiscus flowers as a principal ingredient. He also used agave nectar, another ingredient from Mexico,” Favela said. “We poured that beer and it was bright red, a gorgeous color. It had pink foam. We were like, ‘Whoa, what is this?’ We tasted it and said, ‘This is exactly who we want to be.’
“We were so committed to our vision we didn’t even make an IPA for the first two years. It forced us to explore our concept, which was Mexican-inspired craft beers.”
Business was good and Favela began expanding, with three brewery locations now in the system. The latest brewery’s staff is comprised entirely of women and caters to a growing female microbrewery clientele.
But the positive momentum came to a screeching halt with the arrival of COVID-19 in March of 2020. At the heart of every tasting room is the social experience of gathering with friends and enjoying conversation. That crucial component was taken away in a flash.
“I had no roadmap. What do you mean we are closing down? Completely? We still have bills, we still have rent,” Favela said. “We pivoted our business model toward deliveries in April. It was really hard. The shutdowns were devastating. I was in freefall, to be honest. I had to furlough almost the entire staff, about 35 employees. Our inventory disappeared.
“Mentally, physically, everything … I thought I was done. It took a real toll.”
Help was soon on the way when Favela needed it most.
A city official informed Favela about an emergency relief grant opportunity through Lowe’s and Local Initiatives Support Coalition (LISC). He encouraged Border X Brewing to apply.
“In crisis, a lot of angels came out of the woodwork,” Favela said.
In October, Favela received word that his business had been awarded a $20,000 grant.
“The LISC grant was critical. It was a lifesaver,” Favela said. “It allowed us to produce to beer when we had no more money."
The grant really helped with our inventory. It gave us a second wind.
Favela said Border X has been “rolling with the punches” and pivoting the business model time and time again. Revenue has steadily increased as they’ve been able to welcome limited numbers of customers back to the tasting room.
Their resolve was tested during an unimaginably tough year, but the team at Border X knew they were onto something when they first set up shop eight years ago.
And they still are.
