In this week’s edition of Last Call: Cargill unloads its malt business; domestic beer shipments decline 6 percent in November; Canopy Growth eyes the U.S. market following the Farm Bill signing; the Arcadia auction is postponed; and more industry news.
Craft brewery owners in Pennsylvania are attempting to restructure the collection of a forthcoming sales tax that is slated to begin next July and would increase the cost of beer sold directly to consumers for on- and off-premise consumption at the state’s nearly 300 taprooms, tasting rooms and brewpubs. The point of contention for brewery owners is not the implementation of the tax itself, but rather when it is collected.
In episode 15 of the Brewbound Podcast, Woods discusses his company’s shift from a distribution-focused business model to a retail-minded operation. He also talks about the difficulty of trying to build a new product segment – in his case yerba mate-infused beer – and the challenges small breweries face now that thousands of competitors have flooded the space.
Anheuser-Busch InBev today announced a partnership with Canadian cannabis company Tilray that is aimed at researching non-alcoholic beverages infused with THC (tetrahydrocannabinol) and CBD (cannabidiol). In a joint press release, the two companies said they would each invest up to $50 million to better understand the market for beverages infused with cannabis.
A recent report from Nielsen CGA that examined the state of on-premise beer sales in the United States found that San Francisco was one of the best cities to easily find a pint of craft beer.
Citing a need to remain flexible at a time when a growing number of craft breweries are experimenting with non-traditional beer offerings, the Brewers Association (BA) today announced that it has once again revised its “craft brewer” definition. The changes to the definition, which will take effect immediately and impact the way the trade group reports its 2018 craft beer production figures, marks the fourth time the organization has altered the criteria since 2007.
Embattled Massachusetts-based retail franchisor Craft Beer Cellar is asking the public for $250,000 that it says will be put toward “past, present and future legal demands.” The request comes about two months after the retailer’s parent company had a lawsuit against employment website Glassdoor dismissed by a federal judge in Massachusetts
Oregon’s Deschutes Brewery laid off dozens of employees last week, citing missed growth projections. Speaking to Brewbound, Deschutes Brewery president and CEO Michael LaLonde said the company cut about seven percent of its workforce on Thursday. Affected positions came from sales, marketing and operations.
In this week’s edition of Last Call: Schlafly apologizes to 4 Hands for executive’s hit piece; Costco discontinues Kirkland Light; the equipment of Olde Saratoga is sold piecemeal at auction for about $1 million; and more beer industry news.
Nearly 26 months after the merger of Canadian brewing equipment manufacturers Diversified Metal Engineering (DME) and Newlands Systems, the combined company has fallen into receivership after defaulting on loan payments to the Royal Bank of Canada (RBC). DME Group’s financial troubles have left hundreds of of North American craft brewery owners who had already shelled out millions of dollars in equipment deposits in limbo.
In episode 14 of the Brewbound Podcast, Michael Kurson and Neil Quigley, the founders of Briggs Hard Seltzer, discuss their offerings – which are made with 100 percent real fruit — the emerging spiked seltzer category, and the opportunities they see for a higher-end brand in the market.
Drizly, a Boston-based on-demand alcohol delivery company, has secured another $34.5 million as part of a Series C fundraising round, according to a December 10 SEC filing. The round was led by New York-based hedge fund Tiger Global Management, Brewbound confirmed.
U.S. cities with populations in excess of 5 million have seen the most percentage growth of brewery openings in the past five years, according to Brewers Association chief economist Bart Watson. Watson, who took to the BA blog with data compiled from the 2010 U.S. Census Bureau and brewery zip code locations, found a 183 percent increase in the number of breweries per 100,000 people in cities of more than 5 million people.
Shipyard Brewing founder Fred Forsley is partnering with Valencia Realty Capital and State Street Realty Advisors on a proposed $36 million contract brewing and co-packing facility in Hooksett, New Hampshire. The 100,000 sq. ft. facility, which is currently under development along Highway 93 with a targeted opening date of late 2020, will be capable of producing and packaging thousands of barrels of beer, distilled spirits and non-alcoholic drinks.
