After five years, East Austin brewery Hops & Grain is ready to open a second location, and its sights are set on San Marcos. The beloved brewery has revealed plans for a new outpost and taproom that will help meet growing demand.

"As we've grown over the past five years we've seen the demand for our beer in Austin grow faster than our production capacity," founder Josh Hare explained in a statement. "My early projections had us distributing around the entire state after year three and selling a total of 5,000 [barrels]. This year we will produce right at 10,000 [barrels]."

While the team considered expanding at its home base off East Sixth Street or finding a larger Austin facility, Hops & Grain ultimately landed on a second location in a new market.

"One market that we've really enjoyed growing into is San Marcos. We just recently started distributing beer to that area and have been incredibly pleased with not only the reception from customers in San Marcos but also the incredible relationships that we've built with our accounts," said Hare.

The brewery is still in the process of nailing down the lease, but about 10,000 square feet of space and a capacity of 20,000 barrels are in its future. Like Austin, the San Marcos outpost will have a tasting room open seven days a week.

The brewery launched a Wefunder campaign in early June to raise funds for the new endeavor. On this platform, supporters aren't just donating money — they're becoming investors.

"By offering investment opportunities in our company through this new type of crowd funding, we are able to include our loyal supporters in our business beyond just a transaction at the bar," said Hare. "This is a real investment regulated by the SEC and open to anyone to invest as little as $100." Hops & Grain has already raised over $275,000.

San Marcos isn't all that's on the horizon. Hops & Grain also has plans to break into the San Antonio market and grow its distribution in Houston.