Summary: Craft Brew News – 5/10/19<br><br>(Courtesy of Brewbound.com)<br><br>Boston Beer Company and Dogfish Head Agree to Merge in $300 Million Deal<br><br>Eight years ago, Dogfish Head and Boston Beer Company teamed up to brew a collaboration beer for the annual SAVOR craft beer and food pairing experience.<br><br>Today, the two companies announced the signing of a definitive merger agreement valued at about $300 million. The deal is expected to close in the second quarter.<br><br>The merger comes nearly four years after Dogfish Head sold a 15 percent stake to LNK Partners, a New York-based private equity firm. As a result of the merger, LNK will exit its investment in the Delaware-based craft brewery.<br><br>The merger brings together the Brewers Association’s second-largest craft beer maker, Boston Beer, with the 13th largest craft brewery, Dogfish Head. Both companies will retain their status as BA-defined independent craft breweries.<br><br>Speaking to Brewbound, Sam Calagione said the deal came together over pints this past February, during Beer Advocate’s Extreme Beer Fest in Boston.<br><br>Sam said “We talked about how challenging the industry is getting, the indie craft definition, brands that consumers think are indie craft, active lifestyle beers, and we discovered how beautifully complementary and not competitive our portfolios were,” he said.<br><br>In a press release, the two companies said the merger would “create a powerful Amercian-owned platform for craft beer and beyond.”<br><br>Koch said, via the press release. “This combination is the right fit as both Boston Beer and Dogfish Head have a passion for brewing and innovation, we share the same values and we will learn a lot from each other as we continue to invest in the high-end beer category,”<br><br>According to the release, Dogfish Head is on pace to sell 300,000 barrels of beer in 2019, with net sales of about $120 million.<br><br>Boston Beer chief executive Dave Burwick, who previously served as the CEO of Peet’s Coffee & Tea Inc. before taking over as CEO of the brewery last February, will lead the merged entity.<br><br>According to Calagione, Burwick — who led the acquisitions of two super-premium coffee brands, Intelligentsia and Stumptown, while at Peet’s — was “very involved” in the merger.<br><br>Burwick said, via the release “United, we will have the highest quality, most distinct, high-end portfolio, from both a price-point and product perspective with the top-ranked sales organization to bring it to market,”. “We expect that we’ll see more consolidation in the craft industry over time, and we’ll be in the best position to take advantage of those changes.”<br><br>Calagione, who noted that Dogfish shares about half of its wholesalers with Boston Beer, said the two companies would also look to “align distribution geography everywhere it makes sense.”<br><br>Red Bull Terminates 3 Massachusetts Wholesalers, Leading to ‘Mass Layoff’ at Burke<br><br>Red Bull North America this week announced it would terminate distribution contracts with three Massachusetts beer and non-alcoholic beverage wholesalers in June, as it transitions to a self-distribution model for off-premise accounts. The energy drink maker also announced it would transfer its on-premise business to wine and spirits distributor Martignetti Companies.<br><br>Starting June 3, Red Bull Distribution Company (RBDC) will take over the brand’s distribution rights from Burke Distributing Corporation in Boston, Atlas Distributing in Worcester and Williams Distributing Company in Chicopee.<br><br>In a statement released to media outlets, Red Bull said its focus is on “providing the most effective and efficient route to market in every geography.”<br><br>Unlike beer breweries, non-alcoholic beverage companies are not subject to Massachusetts’ franchise laws, which lock beer brands into nearly unbreakable contracts with their...
