About 30 employees have been let go this week following the integration of the Bell’s Brewery organization into New Belgium after the latter’s parent company, Kirin-owned Lion Little World Beverages, acquired the former last fall. The layoffs amounted to less than 3% of New Belgium and Bell’s combined workforce.
The majority of affected employees were in the company’s sales team due to overlaps in geographic territories and wholesaler or retailer relationships. Employees were offered severance packages, and are invited to apply for open sales roles in other territories.
“Of course, any big transition requires change – especially one involving two of America’s most popular and iconic breweries with a total of 1,300 coworkers across the country,” Adam Fetcher, senior director of communications and public engagement, told Brewbound in a statement. “We’ve done everything possible to protect as many jobs as we could, but in a few cases there was irreconcilable overlap. Ultimately, we made the tough decision to say goodbye to a small number of good people.”
The terminations were “necessary to solidify a combined team capable of doing right by the greatest beer portfolio in craft, delivering industry-best financial growth, and scaling positive impact for our coworkers and our communities,” Fetcher said in the statement.
“We wish nothing but the best to our friends and former colleagues,” he added.
Combined, New Belgium and Bell’s are the eighth largest beer category vendor in off-premise retailers in the U.S., according to market research firm IRI. Year-to-date through March 20, the breweries’ off-premise dollar sales increased +2.6%, to $101.4 million at multi-outlet food and convenience stores tracked by IRI. New Belgium Voodoo Ranger Imperial IPA is the second-best selling craft SKU and the top-selling IPA. Its dollar sales have increased +29.5%, to $34.1 million, year-to-date through March 20, according to IRI.
Below is Fetcher’s statement in its entirety:
“Mergers and acquisitions are hard, often beset by workforce turmoil and fear. One of many things Bell’s and New Belgium have in common is a long record of driving business success by putting people first, and as a result we did this quite differently from the start.
“Our work to bring Bell’s Brewery into the New Belgium family over the past four months has been defined by a daily spirit of collaboration, curiosity, and positivity among leaders from both businesses. Of course, we’re far from perfect. But our top priority throughout has been the wellbeing of the coworkers who power our business, because we know from experience this is the best way to drive future success.
“Of course, any big transition requires change – especially one involving two of America’s most popular and iconic breweries with a total of 1,300 coworkers across the country. We’ve done everything possible to protect as many jobs as we could, but in a few cases there was irreconcilable overlap. Ultimately, we made the tough decision to say goodbye to a small number of good people. This was necessary to solidify a combined team capable of doing right by the greatest beer portfolio in craft, delivering industry-best financial growth, and scaling positive impact for our coworkers and our communities. We wish nothing but the best to our friends and former colleagues.
“No two companies are identical. Both New Belgium and Bell’s bring with them a unique history, sense of identity, and connection with the craft community that will always remain distinct and immensely special. That’s our commitment to beer drinkers and fans. But our driving ethos, our shared spirit of optimism, the caliber of our people, our commitment to craft and the quality of our beer, the drive to build community, and the welcoming culture we’ve built over three decades of people-centric business – it’s as close to a perfect match as I think can be possible. We’re excited about what we can achieve together using beer and business as a tool for positive change.”
Editor’s note: This story was updated at 1:05 p.m. ET on April 15 to include Fetcher’s full statement.