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New Belgium brewmaster has new venture

Longtime New Belgium Brewing brewmaster Peter Bouckaert had announced he will leave the Fort Collins brewery to form a new one, also in Fort Collins. He will team up with Zach and Laura Wilson, formerly of 1933 Brewing, to form Purpose Brewing and Cellars. Bouckaert will begin working with his new partners immediately, but no formal timeline has been established for when he will leave New Belgium. It likely won’t be before the end of the year.

“We believe that everything in life has a purpose. Our mission at Purpose Brewing and Cellars is to inspire creativity, promote craftsmanship, and support our local community,” Bouckaert and the Wilsons said in a press release.

Bouckaert, a native of Belgium who previously worked at Rodenbach Brewery, began at New Belgium in 1996. “I got to work for 21 years in the best company in the US, since Google does not create beer,” he said. “I got to work with people that realize daily their love and passion. I said from the get go that I wanted to stay as long as I can learn. Now I want to learn new things. It will be hard to leave all this passion but change is good for learning.”

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Marston’s acquires Charles Wells business

English brewer Marston’s has agreed to a £55 million deal to buy the brewing arm of Charles Wells Group, which will enhance the pub chain’s presence in London. As part of the acquisition, the brewer will supply all beer, wine and spirits to the Charles Wells pubs estate.

Charles Wells has a portfolio of more than 30 brands, including Bombardier, Young’s and McEwan’s. The business also has UK distribution rights for the Estrella Damm lager brand and other beers under license including Kirin and Erdinger. In a press release, Marston’s stated the deal would, “increase our ale market share from 11% to 16%, this acquisition will also strengthen our representation in London and the South East, and present an opportunity through the McEwan’s brand to expand into Scotland.”

Martson’s CEO, Ralph Findlay, said: “The acquisition of Charles Wells Brewing and Beer Business builds on Marston’s established brewing prowess and is a further step in our objective to develop the leading premium beer business in the UK market. We have demonstrated our ability to acquire, integrate and develop beer brands evidenced by the success of brands such as Hobgoblin, Wainwright, and Lancaster Bomber.”

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Speakeasy Ales sold, remains in San Francisco

Hunters Point Brewery has purchased San Francisco’s Speakeasy Ales & Lagers, both the company’s brewing equipment and the brands. Hunter Point is a new company founded by Ces Butner, former owner of Horizon Beverage Company in Oakland.

“I worked with Speakeasy Ales & Lagers for five to six years as a distributor,” said Butner. “We were one the first companies to expand their distribution beyond San Francisco. There was a tremendous amount of growth and interest in the Speakeasy brands. It was one of the best craft breweries we worked with and the beer quality is very high. I thought it would be a shame if the brand, and one of the few production breweries left in San Francisco, disappeared because of financial problems. Keeping Speakeasy’s San Francisco born and brewed tradition alive is very important to me.”

The brewery began in San Francisco in 1997, opened a taproom in 2011, and underwent a major upgrade in 2015 with the addition of a new 60-barrel brewhouse, malt handling system, fermentors, canning line, and more. The $7.5 million expansion lifted capacity from 15,000 barrels to 90,000 barrels, and the brewery reported sales of 32,500 in 2015.

It briefly ceased brewing in March because it failed to repay its primary creditor, Union Bank, and was forced to enter into an assignment for the benefit of creditors, an agreement that some companies pursue as an alternative to bankruptcy. Three days later, a Los Angeles court appointed a receiver to oversee the sale of the company. It then resumed operations with a skeleton crew of six employees.

Sam Cappione has been appointed vice president and general manager to oversee all aspects of company operations. The eight employees who remained at Speakeasy Ales & Lagers during the sale of company assets will continue working at the brewery. Additional staff will be hired in the next few weeks and months to fill key positions in operations, sales, packaging, the tap room, and brewing departments. The tap room will be opened as soon as possible.

There will be no changes to the Speakeasy beer lineup at this time.

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A-B’s High End division acquires Wicked Weed Brewing

Anheuser-Busch’s The High End division is not done shopping.

The brewing giant’s business unit focused on its specialty brands announced this morning that it has acquired Wicked Weed Brewing. Founded in Asheville, N.C., in 2012 by Walt and Luke Dickinson and lifelong friends Ryan, Rick and Denise Guthy, Wicked Weed is one of the breweries that has made Asheville one of America’s best known brewing destinations.

“This is an exciting time for the entire brewing team,” said co-founder Walt Dickinson. “Our ability to create a wide range of really well executed beers that are focused on creativity, quality and drinkability is what makes Wicked Weed great. We have chosen to partner with The High End to position ourselves to make Wicked Weed what we imagined it could be when we first sat at a craft beer bar and talked about opening a brewery. As a brewer, giving our team more resources to continue innovating our portfolio and the ability to reach more craft drinkers, allows us to keep putting the beer and the people first.”

Wicked Weed Brewing owns and operates four facilities in Asheville: their original Downtown brewpub where they produce over 150 different beers a year, the “Funkatorium,” the first dedicated sour beer taproom and barrel house on the East Coast, a 50-barrel production brewery in West Asheville, and the “Funk House and company headquarters,” a custom-designed brewhouse and training facility.

“We are excited to welcome Walt, Luke, Ryan, Rick, Denise, and the entire Wicked Weed team into our High End family,” said Felipe Szpigel, president, The High End. “It’s clear to me Wicked Weed is redefining what sophistication in beer can mean, with their amazing offerings being relevant in a wide variety of occasions. Their ability to brew the highest quality beers, in a variety of styles, along with their exciting barrel program, leads me to be optimistic about what our futures hold together.”

Since A-B InBev acquired Chicago’s Goose Island Beer in 2011 it has continued to purchase other regionl breweries, eventually creating The High End as a separate division. It includes brands such as Stella Artois and Shock Top as well as Goose Island, Blue Point, 10 Barrel, Elysian, Golden Road, Virtue Cider, Four Peaks, Breckenridge Brewery, Devils Backbone, and Karbach Brewing Co.

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Craft brewery production up 6%

The Brewers Association announced that craft breweries* produced 24.6 million barrels of beer in 2016, 6% more than in 2015. It was the smallest increase since 2008. Retail dollar sales grew 10% to $23.5 billion. Microbreweries and brewpubs delivered 90% of the growth.

“Small and independent brewers are operating in a new brewing reality still filled with opportunity, but within a much more competitive landscape,” BA economist Bart Watson said in a press release. “As the overall beer market remains static and the large global brewers lose volume, their strategy has been to focus on acquiring craft brewers. This has been a catalyst for slower growth for small and independent brewers and endangered consumer access to certain brands.”

Craft Brewery Growth 2017

Additionally, in 2016 the number of operating breweries in the U.S. grew 16.6%, totaling 5,301 breweries, broken down as follows: 3,132 microbreweries, 1,916 brewpubs, 186 regional craft breweries and 67 large or otherwise non-craft brewers. Small and independent breweries account for 99%t of the breweries in operation. Throughout the year, there were 826 new brewery openings and 97 closings. Combined with already existing and established breweries and brewpubs, craft brewers provided nearly 129,000 jobs, an increase of almost 7,000 from the previous year.

During on online press conference, Watson reminded reporters that 75% of the breweries in the country make less than 1,000 barrels annually. As the number of small breweries increases, he said, so does diversity of both business models and beers produced.

* The Brewers Association defines craft breweries as small, independent, and traditional. Some breweries once defined a craft no longer are, and the math behind the numbers can be complicated. Watson provides back ground in a post at the association website: Breaking down the craft beer numbers.

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Sierra Nevada owners donate $2 million to UC Davis program

Ken Grossman of Sierra Nevada Brewing Co. and his wife, Katie Gonser, have presented UC Davis with a $2 million gift to support the campus’s brewing science program. The gift establishes an endowment to provide ongoing funding for a full-time staff brewing position, focused on excellence in hands-on brewing education in the UC Davis Department of Food Science and Technology.

The Sierra Nevada Brewing Company Endowed Brewer position will be dedicated to mentoring and managing students and teaching assistants, maintaining the campus brewery and its equipment, and assisting in teaching brewing classes.

“This endowed brewer position will allow us to provide outstanding practical brewing experiences for our students as we continue to align hands-on training with the best theoretical education,” Charlie Bamforth, the Anheuser-Busch Endowed Professor of Malting and Brewing Sciences at UC-Davis, said for a press release. “Students don’t get that combination in most other brewing programs.”

“My family and I have supported the brewing program at UC Davis for nearly two decades,” Grossman said. “Charlie Bamforth is not only an expert in brewing science, technology and engineering, but a frequent guest speaker at our brewery and a close, personal friend. The ideals that he and the rest of the staff instill in the students are the very same principles that have guided our success in craft brewing for the past 36 years.”

The first Sierra Nevada Endowed Brewer will be Joe Williams, who has been serving as a staff researcher at UC Davis.

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Pabst to distribute New Holland beers

New Holland Brewing Co. in Michigan and Pabst Brewing Co. announced today they will enter into a partnership agreement that focuses on the national distribution and sales of New Holland’s full portfolio of craft beer.

“This partnership allows us to distribute our beer brands to more consumers throughout the country by leveraging PBC’s robust sales and distribution platform,” said New Holland president Brett VanderKamp.

Once the partnership is fully implemented, Pabst’s sales force will sell all of New Holland’s beers to wholesalers nationwide. New Holland, entering its 20th year, will remain independent and will continue to manage all other business functions for its beers, including production, marketing, and finance. All beers will continue to be brewed in Holland, Michigan, and New Holland’s spirits, restaurant and retail operations will continue to operate as they currently do.

Pabst will not take an equity statke in New Holland and currently there are no plans in place for Pabst to invest in additional brewing capacity at New Holland. However, the partnership arrangement does contemplate the opportunity for expanded production of New Holland brands at facilities where Pabst already has contract brewing agreements in place, Pabst CEO Simon Thorpe said.

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Asahi buys Pilsner Urquell, other brands from A-B InBev

Asahi Group Holdings has struck a deal to acquire five eastern European beer brands from Anheuser-Busch InBev, including Pilsner Urquell. The €7.3 billion ($7.8 billion) purchase is the largest ever made by a Japanese brewing company. A-B InBev is selling the brands to allay the concerns of European competition regulators after it completed its merger with SABMiller.

The sale includes Czech brewer Plzensky Prazdroy, which brews Pilsner Urquell, and Polish beer brands e Tyskie and Lech. The brands will give more international heft to Japan’s Asahi, which is one of the top beer makers in its home market but only a small player globally.

Asahi spent much more than initially expected – the price driven up from an an anticipated $3 billion to $4 billion by other bidders. Asahi previously bought Peroni and Grolsch from SABMiller, as the company made divestitures to get regulatory clearance for its sale to A-B InBev.

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A-B adds Texas brewery to High End portfolio

Anheuser-Busch announced Texas brewery Karbach Brewing Co. is the newest addition to The High End, the business unit within A-B that focuses on its craft and import brands.

Ken Goodman and longtime business partner Chuck Robertson said existing management and brewers will remain in place and the Houston company will retain much of its independence while also gaining access to the resources that will help it continue to grow. Brewmaster Eric Warner said the move will allow his team to collaborate with those other craft breweries. “The High End wants to see us innovate,” he said.

Karbach has been one of the fastest growing breweries in the country since it was launched in 2011 and expects to produce 80,000 barrels this year. A-B plans to continue adding brewing capacity, which will reach 150,000 barrels by 2019.

“Chuck and I started the brewery five years ago on Karbach Street in Houston, where the warehouse was located for the beer distribution company we started decades before. After watching so much great beer move through our warehouse over the years we decided it was time to add our own to that list,” Goodman said for a press release. “Karbach is the heart and soul of our beer industry careers, and we are thrilled about this new partnership with The High End and what it will mean for our dream to give more Texans the most unique, unexpected, and exciting beers they’ll have fun drinking.”

The deal comes three months after MillerCoors announced it would take over the Fort Worth area’s Revolver Brewing.

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In St. Louis, a new brewery from an old name

Griesedieck Brothers, one of the most famous names in St. Louis brewing history, plans to build a new brewery in the city. Eighth generation brewer Raymond A. Griesedieck and his son, Bob, expect to begin brewing in the Baden neighborhood by the middle of next year.

The family’s brewing roots trace back to 1766 when Johann Griesendieck began making beer in Stromberg, Westphalia. About 100 years later Anton Griesedeck moved to America and settled in St. Louis. After he and two partners bought the Thamer Brewing Co. in 1878 his family became enmeshed in St. Louis brewing. When the indsutry consolidation of the 1940s and 1950s left just four major local players operating (Anheuser-Busch, Flastaff, Stag and Griesedeck Brothers) the latter three were still largely controlled by members of the Griesedieck family.

G/B sold nearly a million barrels of beer a year in the early 1950s, but after Edward Griesedieck died in 1955 and the family faced a massive estate tax bill its members decided to sell to Falstaff Brewing. Falstaff was controlled by another branch of the family. Not long after Falstaff bought the G/B brewery it discontinued the brand, then briefly revived it in 1976 for one year.

In 1987, local entrepreneurs resurrected the brand, contracting to have it made in Wisconsin. The Griesediecks later bought it back. Now the plan is to resume brewing in St. Louis. “St. Louisians are proud of their beer, especially the beers that are locally owned and have a story behind them,” Raymond Griesedieck said. “We don’t have to make up a story for G/B Beer, though; we just have to tell the story that already exists. Brewing and packaging a St. Louis beer in St. Louis just adds to the story.”

Bob Griesedieck said the family plans to open a tasting room in the space, but initially, the brewery will primarily focus on production and manufacturing.

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Beer mega deal complete

SABMiller shareholders have approved the $100 billion deal that allows the company to be taken over by Anheuser-Busch InBev. AB InBev shareholders previously backed the transaction.

“We are committed to driving long-term growth and creating value for all our stakeholders,” Carlos Brito, chief executive of AB InBev, said in a statement.

Regulators around the world have already approved the deal, which AB InBev says will create “the first truly global brewer.” The takeover is expected to be formally completed Oct. 10, AB InBev said.

Acquiring SABMiller gives AB InBev a large presence in Africa while increasing its business in South America and Europe. The combined company will control almost a third of the global beer market. However, AB InBev sold off dozens of brands to gain regulatory approval for the deal, including Miller Lite, Peroni and Snow, the world’s top-selling beer.

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Tenth & Blake acquires Hop Valley Brewing

Tenth and Blake Beer Company, the craft and import division of MillerCoors, announced today an agreement to obtain a majority interest in Eugene, Ore.-based Hop Valley Brewing Company.

“We are very proud of what we have achieved to date, and even more excited about the future for our company and our employees,” co-founder Chuck Hare in a press release announcing the deal. “From the get-go, it has always been about the beer, and we are looking forward to working with Tenth and Blake to get our beers – made right here – to even more consumers.”

Hop Valley sold 38,500 barrels in 2015 and is on track to make 60,000 barrels in 2016, selling its beer in Oregon, Washington, California, Idaho and Vermont.

“We’re thrilled to join forces with the Hop Valley team, to add an incredible roster of brands that complement our portfolio perfectly,” said Scott Whitley, president and CEO of Tenth and Blake. “I’m looking forward to working with Chuck and his team to support the continued growth and success of their innovative IPAs and award-winning beers.”

Last week Tenth and Blake announced it had acquired the majority interest in Terrapin Beer Company, a Georgia brewery it already had a minority stake in. Its porfolio also includes Blue Moon Brewing Company, Jacob Leinenkugel Brewing Company, and Saint Archer Brewing Company.

Hop Valley Brewing Company will operate as a separate business unit of Tenth and Blake. The management team at Hop Valley will continue to lead the business and will retain an ownership interest.

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Plunging pound endangers AB InBev-Miller deal

Anheuser-Busch InBev has increased its offer for SABMiller because the decline in the value of the British pound has made the deal less attractive to SABMiller shareholders. AB InBev raised the cash-only component of its offer to 44 pounds per share to 45 pounds per share.

Previously it appeared the approval from the U.S. Justice Department, which came last week, was the biggest obstacle the deal faced. SABMiller said that its board “will meet in due course formally to review” the new deal.

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US OKs AB InBev-SABMiller deal

Anheuser-Busch InBev has won U.S. antitrust approval for its takeover of SABMiller. Bloomberg News reports the company will sell SABMiller’s stake in MillerCoors and refrain from practices that restrict distribution of smaller, competing brands, according to a court filing Wednesday in Washington.

AB InBev will be required to seek DOJ review of any future acquisitions of beer distributors or craft beer brands. “The remedy we secured will help preserve and promote competition in the multi-billion dollar U.S. beer industry,” said Deputy Assistant Attorney General Sonia Pfaffenroth of the Justice Department’s Antitrust Division.

Following the announcement, Bob Pease, president and CEO of the Brewers Association, released the following statement:

“Today’s decision by the Department of Justice (DOJ) to approve the acquisition of SABMiller by ABI stipulates many of the safeguards the Brewers Association requested to preserve fair competition and access to market for America’s small and independent craft brewers.

“While we continue to believe that the merger of the world’s two largest brewers is bad for both the beer industry and consumers, the DOJ’s significant requirements, including the termination of incentive programs such as the Voluntary Anheuser Busch Incentive for Performance Program (VAIP), a cap on ABI’s self-distribution volume and other measures to protect distributor independence, appear to address some of our major apprehensions with the merger. With effective enforcement of these provisions, small brewers can rely on their independent distributor partners to access the market. This will help ensure that beer enthusiasts can continue to enjoy a vast variety of options from the more than 4,600 breweries in the U.S.

“The Brewers Association will closely examine the consent decree and compliance with its provisions, as well as monitor ABI’s actions, specifically with regard to the acquisition of independent craft brewers. We remain concerned about how past, pending and future acquisitions may shift the dynamics of the current beer market. We will continue to encourage the DOJ to monitor and, where necessary, take action to remedy any anticompetitive effects of ABI’s behavior in the U.S.”

AB InBev still needs clearance from China before the deal can close. Last month, people familiar with the matter told Bloomberg News that Chinese officials were close to an agreement after the companies agreed to divest the maker of Snow beer, the world’s top-selling brand.