SugarCreek Chairman John Richardson Acquires CinBev
The buyer of Cincinnati Beverage Co. (CinBev) and its portfolio of craft beer brands has finally come forward.
John Richardson, chairman of the board for SugarCreek – an Ohio-based private food manufacturer – acquired CinBev’s portfolio of legacy craft brands Christian Moerlein, Little Kings and Hudepohl, and will operate it separate from SugarCreek, the Cincinnati Business Courier reported Tuesday.
CinBev’s was acquired by several former marketing and advertising executives in late 2019. News of the most recent sale was reported in early May, but the buyer’s identity was not revealed.
Richardson is now in the midst of a $30 million renovation project of three former brewery buildings in Cincinnati’s Over-the-Rhine neighborhood – Clyffside Brewery, Felsenhaus and The Jackson Brewery – according to the Business Courier. Richardson told the news outlet he did not know what the buildings will be used for yet, but that the project will take about two years.
CinBev previously operated its own production facility in Over-the-Rhine, but in December 2020, the company announced it would move production to an unnamed contract brewer, and would shutter the facilities operations, laying off 20 production employees.
Chicago Distributors Head to Arbitration over Sale of Bell’s Offerings
Bell’s Brewery continues to transition into New Belgium Brewing’s distribution network, following the sale of the Kalamazoo, Michigan-based brewery to New Belgium’s parent company, Kirin-owned Lion Little World Beverages. But the companies have hit a snag in Chicago, Beer Marketer’s Insights reported Wednesday.
Lakeshore Beverage, the Anheuser-Busch InBev (A-B) house that distributes Bell’s in the Chicago metro area, and the Reyes Beer Division, New Belgium’s distributor, have been unable to come to an agreement on the transition of Bell’s to Reyes. In order to reach a resolution, the conflict will not go to arbitration, which may take over a year, according to Insights.
The distribution of about 10% of Bell’s volume has been transitioned since its acquisition. Most recently, Beer House Distributing sold its rights to Bell’s throughout Kentucky to multiple A-B and Molson Coors distributors in New Belgium’s network.
Bell’s increased production +5% to 490,000 barrels in 2021, after a -6% decrease to 466,539 barrels in 2020, according to the Brewers Association.
World Health Organization Adopts New Alcohol Public Health Policy
The World Health Organization (WHO) adopted a draft action plan to mitigate “the harmful use of alcohol” earlier this week that included a proposal to push producers to introduce more no- and low-alcohol products.
“Economic operators are invited to substitute, whenever possible, higher-alcohol products with no-alcohol and lower-alcohol products in their overall product portfolios, with the goal of decreasing the overall levels of alcohol consumption in populations and consumer groups,” the plan read.
The Worldwide Brewing Alliance, an international organization whose members account for 80% of the world’s beer production, said it “welcomes” the plan, albeit with a tepid reaction.
“While not a perfect document in our view, it makes a meaningful contribution to accelerating the reduction of the harmful use of alcohol,” WBA president and CEO Justin Kissinger said in a press release. “In particular, the document recognizes that promoting lower alcohol products can reduce harmful consumption at the population level.”
In its findings, the WHO noted that beer and spirits producers have become “increasingly concentrated and globalized in recent decades.” In the same time period, deregulation has “often resulted in the weakening of alcohol controls, to the benefit of economic interests and at the expense of public health and well-being.”
However, the WBA pointed out that beer, which tends to be lower in alcohol than wine or spirits, can help the WHO in its goal to reduce harmful consumption.
“WBA welcomes expanded research to reinforce our understanding of why and how differentiated alcohol control policies are effective tools to reduce the harmful use of alcohol,” Kissinger said.
A-B InBev recently admitted it is behind on its low- and no-alcohol target of sourcing 20% of its volume from those products by 2025 — a goal set in support of the WHO’s efforts to curb harmful drinking behaviors. A little more than 6% of A-B’s volume comes from no- and low-alc products, chief sustainability officer Ezgi Barcenas told Reuters.
Former RNDC CEO Tom Cole Joins Thirstie as Investor and Board Member
Tom Cole, former president and CEO of Republic National Distributing Company (RNDC), has joined Thirstie, a bev-alc e-commerce service provider, as an investor and advisory board member.
In his new role, Cole will “provide ongoing counsel to Thirstie’s leadership team, assist in shaping key partnerships and provide strategic support to the company’s roadmap,” according to a press release.
Cole spent more than 30 years at RNDC, a wine and spirits wholesaler, where he helped lead the company’s growth from $600 million in sales to $13 billion across 38 states, according to the release. He still serves as a senior advisor for RNDC’s board, as well as the chairman of the board of directors for the Wine & Spirits Wholesalers of America.
“Throughout my career, I have been at the forefront of establishing institutional change for the beverage alcohol industry,” Cole said in the release. “Thirstie’s core mission of transforming this sector is in alignment with what I set out to do when entering this space nearly four decades ago. I am excited to play an integral role in Thirstie’s mission and help the company continue to bring true innovation to this industry.”
Applications for BA Mentorship Program Now Open
The Brewers Association’s (BA’s) Mentorship and Professional Development Subcommittee has opened applications for the fall 2022 cohort of its mentorship program.
The 12-week virtual program launched in 2021 with the aim of diversifying the beer industry, and pairs participants with mentors and resources to help advance their careers. As of April, the program had matched 86 mentors with 89 participants.
The third and most recent program cohort consisted of 34 individuals. The BA said the upcoming cohort “is anticipated to be its largest” yet. Applications will be accepted until July 4, with the program beginning September 12.
More information available here.
Editor’s note: This story was updated at 5:50 p.m. ET on June 3 to remove incorrect information about profit multiples paid to Beer House.