Minneapolis-based Finnegans Brew Co. has struck a deal to acquire non-alcoholic craft brewer Hairless Dog Brewing Company.
“We could not be more thrilled to work together and carry on the legacy of Hairless Dog founders, Paul Pirner and Jeff Hollander, who have built this company with their hearts and passion for creating a one-of-a-kind NA product for people who love quality brews, just without the alcohol,” Finnegans CEO Jacquie Berglund said in a press release.
“Their values and visions as founders align well with Finnegans, so it is a great fit for our Finnegans family,” she continued. “And we are excited to continue to work with them as we enter the growing NA segment on a national level.”
By adding Hairless Dog’s portfolio to Finnegans’ lineup, the 22-year-old craft brewer will ostensibly get a boost from having offerings from the non-alcoholic segment, the fastest growing part of the beer category.
Year-to-date through July 10, dollar sales of non-alcoholic beer increased +13.1%, to $141.8 million, according to market research firm IRI. Non-alcoholic beer – which includes offerings from global brewers such as Heineken 0.0 and craft NA giant Athletic Brewing – has gained +0.08% share of dollar sales year-to-date and accounts for 0.6% of all beer dollars.
Last year, Hairless Dog produced 1,750 barrels of beer, according to the May/June edition of the Brewers Association’s New Brewer. Finnegans’ output reached 2,325 barrels.
Pirner and Hollander founded Hairless Dog in 2016. The Minneapolis-based NA beer brand offers three year-round styles: NA Citra Lager, NA IPA and NA Black Ale. Hairless Dog’s beers vary from other NA offerings by being 0.0% ABV, which the company accomplishes by not fermenting its products.
“Most NA beers are brewed by creating alcohol which is then removed from the final product,” Hairless Dog said on its website. “In addition to removing most (but not all) of the alcohol, the dealcoholizing process also removes some of the developed f[l]avor. Our innovative brewing process never introduces alcohol to the liquid, so there’s nothing to remove. All the flavor molecules stay with the liquid.”
Hairless Dog had been shipping beer directly to consumers in all 48 contiguous states, but online sales have stopped, according to its website. However, the brand is distributed nationwide, according to a press release. Finnegans’ beer is sold in Minnesota, Wisconsin, North Dakota and South Dakota.
“When we started Hairless Dog, there was a stigma around drinking nonalcoholic beer, but we took that challenge head on to create a one-of-a-kind product that is inclusive and offers choices of good quality flavors to people who still love the taste of beer, just without the alcohol,” Pirner said in the release. “There was a huge underserved market before Hairless Dog – we have been overwhelmed with the support and loyalty of our customers and know that Finnegans will continue to grow the brand as well as offer new products and innovations.”
The sale of Hairless Dog follows a deal involving another dedicated non-alc craft brewery in the Midwest, WellBeing Brewing in St. Louis, forming a joint venture with Schlafly.
Below is a conversation with Hollander:
When does the deal close?
The deal was inked a few weeks ago and the first few batches are underway and due to be shipped out to our retail partners and distribution network in the next few weeks.
How did it come to be?
Paul and I felt we had taken the brand as far as we could on our own using co-packing partners around the country and it was time to give Hairless Dog a home with a partner that could truly take it to the next level while staying true to our mission to be the best true 0.0% ABV craft brew available to consumers. This will get Hairless Dog to more beer fans everywhere.
Where was Hairless Dog production happening before Finnegans took it over?
We had been cycling between a few different co-packers, and this was one we had settled on to service the Midwest while at the same time allowing for an East Coast expansion.
Any chance of resuming DTC shipping?
Absolutely. We are happy to announce Hairless Dog fans will soon be able to have it shipped to their front door once again. Keep an eye on our website for details.
How much of the Hairless Dog team will stay on?
Just Paul and I will help carry the brand forward and assist the Finnegan’s team in the transition as needed.
Editor’s note: this story was edited at 5 p.m. ET on August 3 to include Hollander’s comments.