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The brewery was founded in San Diego in 1995 by Skip Virgilio and Ted Newcomb. Skip Virgilio was AleSmith's original brewmaster. Peter Zien became brewmaster upon purchasing the company in July, 2002. Zien is a BJCP "Grand Master level 1" beer judge, the only one in San Diego County.
The original brewery is located at 9366 Cabot Drive in San Diego's Miramar area. In 2015 the company added a larger brewery and tasting room, also in Miramar, at 9990 AleSmith Court. At 25,000 square feet, the tasting room is billed as the largest beer tasting room in San Diego County. Brewing operations at the new facility will eventually expand the company's brewing capacity ten-fold, according to Zien.
Beers from the brewery have been rated on RateBeer.com website as #1 Top Brewer in the World 2006 and again in 2013. In 2008, AleSmith was awarded "Small Brewing Company and Small Brewing Company Brewer of the Year" at the Great American Beer Festival.
In 2015, AleSmith announced that Danish gypsy brewer Mikkeller had partnered with them to turn the original facility, located on Cabot Drive, into Mikkeller San Diego