Two New England legacy craft houses are merging in a deal that unites 14 brands.
The parent companies of Harpoon and Smuttynose – Mass. Bay Brewing Company and FinestKind Brewing, respectively – have merged to form Barrel One Collective, the companies announced today in news first shared with Brewbound.
Barrel One Collective is poised to become the largest maker of craft beer in New England and the 14th largest in the country by Brewers Association (BA) data. Combined, the brands produced 165,000 barrels of beer in 2023, according to the release.
“This merger is about much more than just growth,” Mass. Bay founder Dan Kenary said in the release. “It’s about honoring our legacy while writing an exciting next chapter for our companies and the Northeast craft beer industry at large.”
Mass. Bay and FinestKind each bring a wide portfolio of brands to the new roll-up. Mass. Bay’s book includes Harpoon, UFO, Long Trail, Clown Shoes, Otter Creek, The Shed, Catamount, Dunkin’ Spiked and Right Coast Spirits, while FinestKind makes and sells Wachusett, Five Boroughs and Island District Cocktails, in addition to Smuttynose.
Kenary will lead Barrel One Collective as CEO and FinestKind CEO Steve Kierstead will serve as chief commercial officer, according to the release.
“FinestKind Brewing is a fellow Northeast craft trailblazer that shares our passion for brewing excellence, innovation, and creating quality brews our communities can be proud of,” Kenary said in the release. “With a combined 75 years of craft brewing expertise, this merger represents our commitment to setting these companies on an exciting growth trajectory and continuing to bring the very best products to our fervent customer base.”
With the combination of companies there are “unfortunately, some redundancies,” Kenary told Brewbound and declined to specify how many jobs have been eliminated.
The new company’s name pays homage to Harpoon’s brewing permit, which was numbered #001 as the first the Commonwealth of Massachusetts had issues for commercial brewing after several dormant decades. Harpoon was founded in 1986, two years after fellow Boston-based craft pioneer Samuel Adams, which was contract brewed elsewhere.
Smuttynose celebrated its 30th birthday in June, a noteworthy milestone that was not guaranteed. The brewery was sold to venture capital and investment firm Runnymede Investments via an auction in March 2018.
As the craft segment remains challenged in a fragmented marketplace, Barrel One has the benefit of longevity on its side. Harpoon, Long Trail and Smuttynose are the longest-operating craft producers in their respective home states of Massachusetts, Vermont and New Hampshire, according to the release. This shared history has informed the new company’s outlook.
“Dan, the Mass. Bay Brewing team and I share a passion not only for craft beer but also for the brands, employees, partners and customers who built our companies into what they are today,” Kierstead said in the release. “We view our breweries, hospitality spaces, and retail locations as hubs for community engagement and creative brewing.”
Barrel One will operate eight brewery and taproom locations across four states: Boston, Worcester and Westminster, Massachusetts; North Hampton, New Hampshire; Brooklyn, New York; and Windsor and Bridgewater Corners, Vermont.
Primary production for the company will take place at Mass. Bay’s breweries in Boston and Windsor, and “small scale brewing” will take place at breweries in Bridgewater Corners, Hampton, Westminster and Brooklyn, Kenary told Brewbound. However, no one brewery will be tasked specifically with innovation.
“We expect great ideas to come from all breweries,” Kenary said. “Our ability to ‘cross-pollinate’ ideas will be a real strength.”
Joining Kenary and Kierstead on Barrel One’s leadership team will be Nathaniel Davis as chief operating and strategy officer and Rob Day as VP of marketing. The company will be headquartered at Harpoon’s offices in Boston’s Seaport District.
At present, there are no plans to change any distribution relationships, Kenary told Brewbound.
“With this mosaic of brands, there is reasonable overlap, but some work to do,” he said. “We have no set plans for changes and [are] excited to work with our wholesaler partners, both new and old.”
Barrel One is open to expanding its already broad platform, Kierstead said in the release.
“Barrel One Collective is committed to ongoing portfolio development and welcomes inquiries from other like-minded brands eager to join the collaborative, value-added platform for beverage fans across the region. Our mutual drive for excellence, love of legacy, and combined assets will allow us to stay true to our roots while also pushing the boundaries of brewing innovation and inspiring the next generation of craft beer drinkers and makers.”
Both Mass. Bay and FinestKind both have a history of M&A activity.
One year ago, FinestestKind acquired Wachusett Brewing in Westminster, Massachusetts. That deal followed a November 2023 transaction for New York-based Five Boroughs Brewing Co.
The Smuttynose brand, which anchors FinestKind, was purchased from a 2018 bankruptcy auction by venture capital firm Runnymede Investments.
In June 2022, Mass. Bay acquired Long Trail Brewing in Bridgewater Corners, Vermont, as well as the Otter Creek and The Shed brands.
In October 2017, Mass. Bay acquired the Clown Shoes brand in Massachusetts.
In 2000, Mass. Bay acquired Catamount Brewing Co. in Windsor, Vermont, converting the brewery into a Harpoon production facility.
The latest merger follows a flurry of mergers and acquisitions in New England.
Hendler Family Brewing Company, parent company of Jack’s Abby Craft Lagers, acquired the Wormtown Brewery and Night Shift Brewing Massachusetts-based craft brands.
Woburn, Massachusetts-based Lord Hobo and Portland, Maine-based Lone Pine Brewing merged with the backing of private equity firm Valterra Partners as the principal investor behind the new ownership group.
Norwood, Massachusetts-based Castle Island acquired the brands and recipes for Cambridge Brewing Company, which shuttered its physical location on December 20.
Harpoon was the 18th largest BA-defined craft brewery in 2023, increasing its annual output +4% year-over-year (YoY), to 115,100 barrels of beer, according to the trade group’s May/June issue of the New Brewer Magazine. The BA did not break out separate production data for Mass. Bay’s other craft beer brands.
Year-to-date (YTD) through November 30, Mass. Bay dollar sales have declined -17.3% and volume -18.2% in NIQ-tracked off-premise channels, according to data shared by 3 Tier Beverages. Four-week trends improved slightly versus YTD trends, with dollar sales declining -10.7% and volume -10.5% YoY. [Note that NIQ data excludes the on-premise channel as well as some off-premise retailers.]
The majority of Mass. Bay’s craft beer portfolio is in the red YTD, according to NIQ scans:
- Harpoon dollar sales -10.9%, volume -11.7% (dollar sales -1.5% YoY, volume -2.6% in L4W);
- Long Trail dollar sales -10.4%, volume -11.6% (dollar sales -9.3%, volume -9.6% in L4W);
- UFO dollar sales -34.8%, volume -40.8% (dollar sales -21.5%, volume -21.6% in L4W);
- The Shed dollar sales -8.1%, volume -6.5% (dollar sales -4.5%, volume -3.9% in L4W)
- Clown Shoes dollar sales -40.7%, volume -47.6% (dollar sales -48.1%, volume -60.8% in L4W);
- Otter Creek dollar sales -55.7%, volume -54.5% (dollar sales -40.6%, volume -40.9% in L4W).
Catamount Brewery, the first brewery to open in Vermont, now only produces limited-edition offerings, with its brewery converted to a Harpoon location in 2000. Catamount dollar sales have increased +56.4% and volume +63.6% YTD (albeit on a significantly smaller base versus Mass. Bay’s other craft beer brands), while trends declined in the L4W (dollar sales -7.3%, volume -7% YoY).
Mass. Bay also produces Dunkin’ Spiked, a collection of hard coffee and refreshers launched in 2023. The brand is the only one within Mass. Bay’s portfolio to post significant growth, with dollar sales increasing +318.2% YTD (+11.5% YoY in the L4W) and volume +308.7% YTD (+29.1% YoY in the L4W), driven by market expansion.
FinestKind’s Smuttynose produced 23,795 barrels of beer in 2023, a -19% decline YoY, according to the BA. Wachusett produced 16,219 barrels of beer, a -12% decline YoY. Production data was not shared for Five Boroughs.
NIQ data provided to Brewbound did not include collective scan data for FinestKind. All three of its craft beer brands have recorded double-digit declines YTD:
- Smuttynose dollar sales -15.3%, volume -13.8% (L4W dollar sales -8.4%, volume -5.1% YoY);
- Wachusett dollar sales -14.2%, volume -17.7% (L4W dollar sales -18.7%, volume -20%);
- Five Boroughs dollar sales -28.8%, volume -23.1% (L4W dollar sales -40.1%, volume -36.2%).