In this week’s edition of Last Call: Deschutes tells Roanoke city officials it is unlikely to build a production facility by a 2021 deadline; Trillium spends $13 million to acquire Canton real estate; Deschutes hires ex-Dogfish Head VP of marketing; BrewDog shares Q1 highlights; and more industry news.
A blockbuster merger between two alcohol-distributing giants that was 16 months in the making has been terminated. Republic National Distributing Company (RNDC) and Breakthru Beverage Group — the second and third largest wine and spirits wholesalers in the U.S. – today announced the cancellation of an intended merger first announced in 2017 to create a multi-state wholesale operation.
Oregon’s Ninkasi Brewing has sold a majority stake to Legacy Breweries Inc., an upstart venture led by former Yakima Chief CEO Don Bryant, that aims to acquire U.S. craft breweries. Specific financial terms of the deal, which will close at the end of April, were not disclosed.
Beer no longer holds a majority of the share of total alcohol servings in the U.S. Beer Institute chief economist Michael Uhrich reported today during a State of the Industry presentation that beer’s share of total alcohol servings fell to 49 percent, down about 1 percent, as hard liquor (35.6 percent) and wine (15.4) both gained share.
Constellation Brands reported its fiscal year and fourth quarter 2019 earnings results today, which were highlighted by a 7 percent increase in net sales, to more than $8.1 billion.
In episode 30 of the Brewbound Podcast, NBWA chief economist Lester Jones explains how the NBWA’s monthly “Beer Purchaser’s Index” can help predict future industry trends, and how beer professionals can use it to make more informed decisions. He also explains his “cognitive beer dissonance” theory and gives us all a reason to believe that the industry is actually pretty healthy.
Two of the largest U.S. states now boast a record number of breweries. According to an economic impact study released Tuesday by the California Craft Brewers Association, California continues to be home to the most breweries in the nation, with more than 980 in operation as of April 2019. Meanwhile, an economic impact study released today by the New York State Brewers Association, found that 434 craft breweries were operating in the Empire State at the end of 2018.
The Alcohol and Tobacco Tax and Trade Bureau (TTB) today announced the acceptance of a record $2.5 million offer in compromise from Heineken USA Incorporated for alleged trade practice violations outlined in the Federal Alcohol Administration (FAA) Act. Heineken USA’s (HUSA) payment is the largest offer in compromise that the federal agency has ever accepted, TTB spokesman Thomas Hogue confirmed to Brewbound.
Once again, a record number of craft breweries were in operation in 2018, according the Brewers Association (BA), a trade organization that represents small and independent breweries. The BA, which released its 2018 craft industry growth statistics today, reported that 7,346 craft breweries operated in the U.S. in 2018. That’s up from 6,490 in 2017.
Mahou San Miguel is upping its stake in Colorado’s Avery Brewing, and the Spanish beer company has teamed up with its other U.S. craft brewery partner, Michigan’s Founders Brewing, on the new investment. Mahou, along with Founders, will purchase a 40 percent stake in Avery Brewing for an undisclosed sum. The newly acquired stake will be combined with Mahou’s original 30 percent minority interest in Avery that was purchased in early 2018.
In this month’s Beer Business Finance column, Wormtown Brewery CFO Kary Shumway examines at what the different products in brewery’s portfolio actually cost to make, and how to price them for the healthiest margins.
In the latest Press Clips: Lion acquires Magic Rock Brewing in the UK; Allagash founder Rob Tod makes James Beard finals; Russian River’s Pliny the Younger generates more than $4 million in impact; the Cleveland Indians name Great Lakes and Miller Lite official beers; and more industry news.
Trillium Brewing Company is expanding once again. The company today announced plans to open two new locations in the greater Boston area. The popular Massachusetts-based maker of hazy New England IPAs will relocate its Canton brewery headquarters to a sprawling 19-acre “forever home” about five miles away from its current facility. It will also open a taproom and retail store in the Fenway neighborhood of Boston.
Craft Brew Alliance today announced the hiring of longtime beverage industry veteran Christine Perich, who will take over as the company’s chief financial and strategy officer on April 1.
