SELBYVILLE — Southern Delaware Brewing Company plans to open Fenwick Island Brewing at Bayside Marketplace in 2027, expanding its coastal Delaware brewpub business through a partnership with the Carl M. Freeman Companies.
The company announced Oct. 1 that planning has begun for its third brewpub and construction is underway with Freeman Companies. The new location will join Thompson Island Brewing Company near Rehoboth Beach and Ocean View Brewing Company in Ocean View.
Southern Delaware Brewing is part of the SoDel family of hospitality businesses which also includes SoDel Concepts, Highwater Management and Surf Bagel.
The Fenwick-area expansion comes as Southern Delaware Brewing continues pursuing a brewery at The Mill Retail Center in Millsboro. Delaware Business Times reported in August 2025 that the company was considering becoming the anchor tenant at the proposed commercial development on Route 113 at the former Veterans of Foreign Wars property.
“The project in Millsboro was taking a little longer than expected due to some unforeseeable circumstances,” Southern Delaware Brewing Vice President Nelia Dolan told DBT in an email. “The opportunity came up at the Bayside Marketplace in the meantime and we jumped on it.”
Dolan said the company plans to proceed with both projects and met with the developers behind The Mill Retail Center just this week. Surf Bagel, another business in the SoDel family, is also discussing a location at the center.
“We are still very interested in The Mill Retail Center,” Dolan said. “Our current plan is to proceed with both projects.”
The Bayside Marketplace location will position the restaurant near Bayside Resort, area golf courses and Freeman Arts Pavilion in Sussex County with the company planning to serve lunch, happy hour and dinner customers, including golfers and concertgoers.
“Fenwick Island has always felt like the perfect place for a brewpub,” Southern Delaware Brewing Vice President Nelia Dolan said in a prepared statement. “Whether you’re finishing a round of golf, heading to a show at Freeman Arts Pavilion, or simply looking for a relaxed place to meet friends and family, we want Fenwick Island Brewing to become part of your story.”
The company said the new brewpub will combine craft beer and a chef-driven menu with a gathering space for residents and visitors. Each of its restaurants maintains its own identity while sharing an emphasis on food, brewing and hospitality.
“Southern Delaware Brewing Company is a fantastic addition to the outstanding lineup of tenants at Bayside Marketplace,” Nick Freeman, vice president of commercial and hospitality for Carl M. Freeman Companies, said in a prepared statement. “We’re excited to continue creating a destination where the surrounding community can gather, connect, and enjoy the best our region has to offer.”
The expansion builds on a brewing operation that has earned national recognition. DBT previously reported that Thompson Island won a silver medal at the 2023 Great American Beer Festival for Never Been Wrong, a beer aged in white wine barrels with wild yeast. Ocean View also earned a bronze medal at the U.S. Open Beer Championship for its Spicy Jams stout.
Southern Delaware Brewing expects to release additional information about construction, hiring and opening celebrations throughout 2027. The announcement did not disclose an investment amount, restaurant size, seating capacity or projected employment.
Dining and Cooking