KALAMAZOO — The laws of supply and demand struck Arcadia Ales, and resulted in the pulling out of several markets for the Battle Creek-based brewery three years ago.

But last Thursday, Arcadia embarked on a $5.4 million journey to expand its operations with a new facility on the downtown riverfront in Kalamazoo. The new facility — in the works since August 2011 — will allow Arcadia to keep up the demand of the Michigan and Illinois markets and back into select U.S. markets, but certainly is not abandoning the Battle Creek market, Arcadia Founder & President Tim Suprise said.

“Recognizing our company’s role within the Battle Creek community and maintaining loyalty to our existing patrons is just as important as the expansion itself,” Suprise said in a release. “We are continually grateful to our distributor and retail partners as well as the many customers who have made Arcadia Brewing Company a success in Battle Creek, and we are optimistically looking forward to developing an equally important role and worthy presence downtown and the greater Kalamazoo community.”

But mostly what the new facility provides is a relief for the company — established in 1996 — allowing them to get back to where they once were. The company currently distribtures throughout Michigan, Illinois, Ohio, Missouri, Kentucky, Kansas and Pennsylvania. Suprise said they plan to expand into six more markets.

“We are going to go back to those markets we pulled out of in a selected fashion,” Suprise said. “Few other strategic markets as well, very measured and deliberate. We’ve done it the other way and we’ve seen how that worked out. We want to grow organically.”