Yards Brewing Company was founded in 1994 in Philadelphia, Pennsylvania by friends Tom Kehoe and Jon Bovit who began producing their own homebrews in 1988. Within the first few months, "the Yards Guys" were producing one six-keg batch at a time out of their 3.5-barrel brewhouse, and supplying ESA, Entire Porter, and several other cask-conditioned ales to bars clamoring for their wares. They delivered each keg themselves, making a point of being there whenever a bar tapped its first one. In 1999, Bovit left Yards for financial reasons. The same year he was replaced by new partners Bill and Nancy Barton.
Dawson Street Pub bought the first keg of beer from Yards.
Yards eventually outgrew its first brewery, and in 1996 moved up the hill to the Roxborough section of Philadelphia. The larger brewery allowed Yards to begin bottling its beer for the first time. Yards also expanded production of its Extra Special Ale and began introducing new beers including Philadelphia Pale Ale, which The New York Times rated in 2003 as one of the best Pale Ales in the country. Yards lineup expanded to include India Pale Ale, Saison, Brawler, and other seasonal specialties.
In 2001, Yards Brewing Company moved into the old Weisbrod & Hess Brewery in the Kensington section of Philadelphia. Bill Barton and his wife Nancy located the new brewery site. Vacant since 1939, Yards improved the facility and steadily increased production.
In 2003, Yards Brewing Company partnered with the City Tavern—a favorite bar of the nation's founding fathers—to create Ales of the Revolution, a line of historic beer recreations based on the original recipes of George Washington, Thomas Jefferson, and Ben Franklin.
In July 2007, Kehoe and the Bartons announced that they were dissolving their partnerships, effective August 2007. Kehoe retained the Yards brand and recipes. He eventually moved to 901 North Delaware Avenue. This location once again increased Yard's production capabilities and expanded their product line.
In 2009 Yards was the recipient of the Penn Future Green Power Purchaser Small Business Award for becoming the first 100 percent wind powered brewery in Pennsylvania and for continued commitment to sustainability.
In 2010 Yards opened its Tasting Room, a 100-person capacity pub room with a rotating menu, a century old pool table and shuffle board table
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