Diamond Bear Brewing Co. announced Monday it had a record year in 2012, but officials said things could have been better were it not for the brewery’s cramped quarters.

In 2011, the brewery announced plans to build a larger facility in North Little Rock. But those plans fell through, and the Little Rock brewery is still looking for a new location.

Diamond Bear expects to close a deal in about 45 days on a building that would allow the brewery to increase its sales and branch out regionally, said Russ Melton, president of the company. Diamond Bear’s beer is sold in Arkansas and Mississippi.

“The building will allow us to grow significantly,” he said “We can only sell what we can make, and we cannot sell into other markets until we make more beer.”

Diamond Bear announced Monday that its sales increased 30 percent in 2012, but the company said growth was hampered by limited space in its 7,000-square-foot building at 323 S. Cross St.

“We’re jammed in here like sardines,” Melton said.

He said he did not want to disclose information about the new deal before it is finalized but said Diamond Bear has been looking for a building with about 20,000 square feet.

Melton said the company searched in Little Rock and North Little Rock.

Jim Dailey, partner with Flake and Kelley Commercial, said he is helping Diamond Bear find a new building.

“I do know that their goal is to have a new facility,” he said. “Hopefully, there will be an announcement in the near future.”

In April 2011, Diamond Bear said it would move across the Arkansas River to build a brewery on North Little Rock’s riverfront.

Diamond Bear planned to purchase about 3 acres of city property along the River Trail bicycle and pedestrian path for $175,000.

The company said it wanted the new brewery to include a restaurant, special-events room and party deck. Diamond Bear also said the expansion would allow the brewery to increase its work force from four to at least 20.

Robert Voyles, North Little Rock Community Planning director, said the 3 acres offered by the city is still for sale to Diamond Bear.

“It is our understanding that the business has a more desirable site,” he said.

Melton said the plan to build a brewery stalled when the company received an offer on an existing building.

He said the plan to build a brewery was scrapped in January 2012 because of cost, and the deal to buy an existing building failed later in the year when the sellers - whom Melton wouldn’t name - backed out.

Melton said the building Diamond Bear is now considering would save the company money and meets its needs.

“This location is actually better because it is closer to the metro area, to the Argenta area,” he said. “This is the best location we could find to fit our needs.”

Diamond Bear still plans to add a “limited restaurant” to the brewery and increase its work force at the new building.

Information for this article was contributed by Jake Sandlin of the Arkansas Democrat-Gazette.

Business, Pages 23 on 03/19/2013