Scranton Media Family Buys Flying Fish

flying-fish
I somehow missed this news, which seems to have come out without too much fanfare a few days ago. Maybe we’re becoming desensitized to brewery M&A? Certainly Twitter wasn’t abuzz with the news. Flying Fish Brewing, one of New Jersey’s earliest small brewers, was bought by the Lynett and Haggerty families, who own Times-Shamrock Communications. They own a dozen newspapers and eleven radio stations. On April 8, they announced that they’d bought a controlling interest in the Somerdale, New Jersey brewery, though the deal was quietly done a month earlier, on March 11.

Flying Fish was founded in 1995 by Gene Muller. They started in Cherry Hill, but moved to larger quarters in Sommerville four years ago.

According to the Scranton Times-Tribune (one of the papers owned by the family), this is how it went down.

The family’s expertise in marketing, events and promotions will help the brewery continue to grow and expand its footprint, said Bobby Lynett, manager of L&H Brewing Partners, the entity that now holds a majority interest in Flying Fish. They declined to disclose the cost of their acquisition.

“Flying Fish is a nice brewery with good people and a great product,” said Mr. Lynett, a publisher of The Times-Tribune. “We want to help it grow.”

Flying Fish currently employs 33 people who produce about 24,000 barrels of beer each year.

Gene Muller, founder of Flying Fish, said he began looking for new partners when some initial investors began to cash out on their investment in the company. He joked that the Scranton family emerged as a good fit “because they are Irish.”

Mr. Muller, 61, believes Flying Fish will benefit from events and other business interests of the Lynett-Haggerty families, whom he refers to as “The Scranton Guys.”

“There are obvious synergies,” he said. “We saw an opportunity to inject some enthusiasm into the company and take care of our initial investors. The Scranton Guys are part of a 100-year-old company. They understand the long-term horizon.”

The capital for L&H Brewing Partners came from some individual family members and Elk Lake Capital, set up by the family to invest in non-media companies to add diversity to the family’s holdings beyond Times-Shamrock’s media holdings of newspapers, radio stations and outdoor advertising. Elk Lake already owns a land-surveying company and water-testing company.

Toasting the Class of '96: Greg Koch, Mark Edelson, Bill Covaleski, Tom Kehoe, Gene Muller & Sam CalagioneAt a Philly Beer Week event celebrating the Class of '96: Greg Koch, Mark Edelson, Bill Covaleski, Tom Kehoe, Gene Muller & Sam Calagione.

First Casualty Of Cuban Tourism: Beer Shortages

cuba
You’ve no doubt seen the news that we’ve finally relaxed travel restrictions to Cuba, along with many other changes to our policies regarding the island nation. Last summer, the two countries agreed to reopen embassies on their respective soil, and re-establish diplomatic relations. President Obama recently visited Cuba, the first American head of state to do so since 1928, 88 years ago. Despite the travel ban, small numbers of Americans had been visiting Cuba by going through Mexico or other countries where travel there is not restricted. But now that it’s legal again, record numbers are visiting, leading to the first real problem caused by this influx of American tourists. According to Mashable, Tourists are drinking all of Cuba’s beer.

“The first clear sign that Cuba will have difficulty keeping up with the influx of American tourists — certain only to increase as restrictions are loosened — is a beer shortage.

Good job, America.”

cuban-beer

The Top 50 Annotated 2015

ba
This is my ninth annual annotated list of the Top 50, skipping two years ago because the BA provided that information then, so here again you can see who moved up and down, who was new to the list and who dropped off. So here is this year’s list again annotated with how they changed compared to last year.

  1. Anheuser-Busch InBev; #1 last ten years, no surprise
  2. MillerCoors; ditto for #2
  3. Pabst Brewing; ditto for #3
  4. D. G. Yuengling and Son; Same as last year
  5. Boston Beer Co.; Same as last year
  6. North American Breweries; Same as last year
  7. Sierra Nevada Brewing; Same as last year
  8. New Belgium Brewing; Same as last year
  9. Craft Brewers Alliance; Same as last year
  10. Lagunitas Brewing; Up 1 from #11 last year
  11. Gambrinus Company; Down 1 from #10 last year
  12. Bell’s Brewery; Same as last year
  13. Deschutes Brewery; Same as last year
  14. Minhas Craft Brewery; Up 2 from #16 last year
  15. Stone Brewing; Down 1 from #14 last year
  16. Sleeman Brewing; Down 1 from #15 last year
  17. Ballast Point Brewing & Spirits; Rocketed up 20 from #37 last year
  18. Brooklyn Brewery; Down 1 from #17 last year
  19. Firestone Walker Brewing; Up 3 from #22 last year
  20. Founders Brewing; Up 3 from #23 last year
  21. Oskar Blues Brewing; Jumped up 9 from #30
  22. Duvel Moortgat USA (Boulevard Brewing/Ommegang); Down 4 from #18 last year
  23. Dogfish Head Craft Brewery; Down 4 from #19 last year
  24. Matt Brewing; Down 4 from #20 last year
  25. SweetWater Brewing; Down 1 from #24 last year
  26. Harpoon Brewery; Down 5 from #21 last year
  27. New Glarus Brewing; Down 2 from #25 last year
  28. Great Lakes Brewing; Up 1 from #29 last year
  29. Alaskan Brewing; Down 3 from #26 last year
  30. Abita Brewing; Down 3 from #27 last year
  31. Anchor Brewing; Down 3 from #28 last year
  32. Stevens Point Brewery; Same as last year
  33. Victory Brewing; Up 2 from #35 last year
  34. August Schell Brewing; Down 1 from #33 last year
  35. Long Trail Brewing; Down 1 from #36 last year
  36. Summit Brewing; Down 2 from #34 last year
  37. Shipyard Brewing; Down 6 from #31 last year
  38. Full Sail Brewing; Up 5 from #39 last year
  39. Odell Brewing; Up 1 from #40 last year
  40. Southern Tier Brewing; Up 1 from #41 last year
  41. Rogue Ales Brewery; Down 3 from #38 last year
  42. 21st Amendment Brewery; Jumped up 7 from 49 last year
  43. Ninkasi Brewing; Down 1 from #42 last year
  44. Flying Dog Brewery; Same as last year
  45. Narragansett Brewing; Not in Top 50 last year
  46. Pittsburgh Brewing (fka Iron City); Down 1 from #45 last year
  47. Left Hand Brewing; Up 1 from #48 last year
  48. Uinta Brewing; Down 2 from #46 last year
  49. Green Flash Brewing; Not in Top 50 last year
  50. Allagash Brewing; Same as last year

Not too much movement this year, except for a few small shufflings. The top is virtually unchanged, with only numbers 10 and 11 switching places. And apart from those two small changes, the top 13 were all the same as 2014. The biggest jump came from Ballast Point, which leapt up 20 spots, while Shipyard slipped the furthest, dropping six slots. Only two new breweries made the list; Green Flash Brewing and Narragansett Brewing. Off the list was World Brew/Winery Exchange, a California contract label brewer making private label beers for retailers, and Bear Republic Brewing.

If you want to see the previous annotated lists for comparison, here is 2014, 2013, 2012, 2011, 2010, 2009, 2008, 2007 and 2006.

Top 50 Craft Breweries For 2015

ba
The Brewers Association just announced the top 50 craft breweries in the U.S. based on sales, by volume, for 2015, which is listed below here. I should also mention that this represents “craft breweries” according to the BA’s membership definition, and not necessarily how most of us would define them, as there’s no universally agreed upon way to differentiate the two. For the eighth year, they’ve also released a list of the top 50 breweries, which includes all breweries. Here is this year’s craft brewery list:

2016_Top_50-craft

Here is this year’s press release. The last couple of years, the BA has helpfully annotated the list, saving me lots of time, since I’ve been annotating the list for the last eight years, but they’ve abandoned that practice this time around. So for the eighth consecutive year, I’ll also posted an annotated list, showing the changes in each brewery’s rank from year to year, but it will take me some time to put together so I’ll have that again later today.

The BA, this year, did create a map showing the relative location of each of the breweries that made the list.

Print

Deschutes Announces New Brewery In Virginia

deschutes
In the rumor mill for several months, today Deschutes Brewing of Bend, Oregon announced that they’ll be building a second brewery in Roanoke, Virginia. They’ve set up a separate page for information about the new facility in Roanoke. Here’s the press release:

Deschutes Brewery announced its much anticipated decision on an east coast location today at an event in downtown Roanoke, Virginia. The growing brewery, which was founded in Oregon in 1988 by Gary Fish, has explored hundreds of potential locations in the region over the last two years. The company selected Roanoke based on several criteria including a culture and community that fit well with Deschutes’ decades-deep roots.

“We started Deschutes Brewery when craft beer wasn’t burgeoning and led with a beer style that wasn’t popular at the time – Black Butte Porter,” said Gary Fish, CEO and founder of the brewery. “This pioneering approach was a key driver behind our decision to go with Roanoke, as that same spirit exists in this community and its fast-growing beer culture.”

The future Roanoke facility has been lovingly dubbed “Brew 4” as it takes its place in line after the original Bend, Oregon public house (Brew 1), the brewery’s production facility in Bend (Brew 2) and the Portland, Oregon public house (Brew 3). Brew 4 will be located at the eastern edge of Roanoke with construction on the site beginning in 2019. Eventually, a little over 100 new jobs will be created for the region, and the new brewery will produce approximately 150,000 barrels to start, with a design to increase capacity as needed. Deschutes expects to start shipping beer from the Roanoke location in about five years.

“Roanoke is honored to be chosen as Deschutes Brewery’s East Coast location after a very thorough review of several communities in the Southeast,” said Roanoke City Manager Chris Morrill. “It is a company with a strong culture of community engagement, recognized for its craftsmanship and will be a perfect fit for Roanoke’s vibrant outdoor lifestyle. We are thrilled to welcome Deschutes as we continue to build a diverse, resilient economy.”

Deschutes Brewery chose to add an east coast location after the company’s distribution footprint (which currently includes 28 states and the District of Columbia) reached the east coast. By having a production facility on the eastern seaboard, the brewery will be able to deliver beers – such as its flagship Black Butte Porter – to states east of the Mississippi quickly and more sustainably.

Michael LaLonde, president of Deschutes Brewery, who was an integral part of the east coast location selection team, said, “Although it was a tough decision – we loved so many of the communities that we visited over the past two years – we are very excited to be heading to Roanoke. We love the region and everyone we’ve had the opportunity to meet and work with during this process has been incredible. We have absolutely been blown away with how the community rallied around bringing us here and has given us such a warm welcome. #Deschutes2Rke we’re on our way and proud to be able to now call Roanoke our second home.”

deschutes-va

Craft Market Exceeds 12%

ba
The preliminary numbers for 2015 are out, and the news is again pretty damn good. The Brewers Association today revealed that craft beer’s share of market, which finally passed 10% last year, is now 12.2% of the total beer market, by volume.

From the press release:

In 2014, craft brewers produced 22.2 million barrels, and saw an 18 percent rise in volume and a 22 percent increase in retail dollar value. Retail dollar value was estimated at $19.6 billion representing 19.3 percent market share.

“With the total beer market up only 0.5 percent in 2014, craft brewers are key in keeping the overall industry innovative and growing. This steady growth shows that craft brewing is part of a profound shift in American beer culture—a shift that will help craft brewers achieve their ambitious goal of 20 percent market share by 2020,” said Bart Watson, chief economist, Brewers Association. “Small and independent brewers are deepening their connection to local beer lovers while continuing to create excitement and attract even more appreciators.”

But wait, there’s more.

Additionally, in 2015 the number of operating breweries in the U.S. grew 15 percent, totaling 4,269 breweries—the most at any time in American history. Small and independent breweries account for 99 percent of the breweries in operation, broken down as follows: 2,397 microbreweries, 1,650 brewpubs and 178 regional craft breweries. Throughout the year, there were 620 new brewery openings and only 68 closings. One of the fastest growing regions was the South, where four states—Virginia, North Carolina, Florida and Texas—each saw a net increase of more than 20 breweries, establishing a strong base for future growth in the region.

Combined with already existing and established breweries and brewpubs, craft brewers provided nearly 122,000 jobs, an increase of over 6,000 from the previous year.

“Small and independent brewers are a beacon for beer and our economy,” added Watson. “As breweries continue to open and volume increases, there is a strong need for workers to fill a whole host of positions at these small and growing businesses.”

If you’re curious how those numbers are calculated, BA economist Bart Watson posted an explanation of the 2015 Craft Brewing Growth by the Numbers.

growth infographic

Cigar City Bought By Fireman Capital

cigar-city oskar-blues-blue
In an exclusive this morning, Brewbound is reporting that Fireman Capital to Purchase Cigar City. According to Brewbound, “Cigar City, a leading independent brewery based in Tampa, Fla., has agreed to sell controlling interest to Boston-based private equity firm Fireman Capital Partners, which already owns majority stakes in Oskar Blues, Perrin Brewing and the Utah Brewers Cooperative outfit that includes the Wasatch and Squatters brands.”

The overall entity created by Fireman Capital for their brewery acquisitions is United Craft Brews LLC, incorporated in Delaware. The SEC Form D lists Fireman Capital’s address is Waltham, Massachusetts, but information on OpenLEIs lists a registered address in Delaware, but Oskar Blues’ Longmont address as Headquarters for United Craft Brews. Last year, Westwood was still asking Does Oskar Blues Still Own Oskar Blues? This will undoubtedly continue to muddy the waters surrounding the answer to that question.

Rumors had been swirling that ABI was considering Cigar City as their next target for acquisition, and founder Joey Redner confirmed that he’d gotten as far as signing an LOI. But ABI let their exclusivity period pass without executing a formal purchase agreement, leaving Cigar City free to entertain other potential buyers.

CCB

Cigar City’s website posted a joint press release about the transaction:

Oskar Blues Brewery Rolls up a Cigar City Blunt

Longmont, CO, & Tampa Bay, FL — Oskar Blues Brewery announced the acquisition of Tampa’s Cigar City Brewing. Putting months of acquirement rumors to rest, the decision is driven by mutual irreverence, respect and desire to stay true to craft beer roots.

The combination stems from the want to take risks, sniff out bullsh*t and grow against-the-grain in an era of increasing competition within craft beer. The collaboration will match years of large-scale growth, expansion expertise and resources of Oskar Blues with the strength of Cigar City’s local following to help both breweries strengthen their future position. Similarly to Oskar Blues, Cigar City’s award-winning brews are well known and respected within the craft community.

“Cigar City is facing next-level challenges and we needed to develop next-level skills and resources to meet them. But, we got into beer out of passion and an unwavering desire to travel our own path. We didn’t want to just shove our round peg into some f*cking square hole and hope for the best. Florida craft beer drinkers want something they can proudly stand behind. These guys get that. They wrote the book on keeping it real,” says Joey, founder of Cigar City Brewing. Joey will remain as CEO of Cigar City following the transaction.

Since 2009, Cigar City Brewing achieved a near constant growth pattern reaching nearly 60,000 barrels in 2015, placing the Tampa Bay area and the state of Florida on the craft beer map. The partnership will provide additional investment for Cigar City’s infrastructure growth within Florida.

“What Cigar City has done for the community of Florida craft beer is impressive. It’s important for our culture to do business with people we want to hang out with and Joey and the gang fit,” Dale Katechis, Soul Founder of Oskar Blues, stated about the new partnership.

Oskar Blues Brewery is the funky brewpub that started brewing beer in 1999 in the small town of Lyons, CO and is responsible for starting the craft beer in-a-can movement in 2002 with Dale’s Pale Ale. In 2008, the brewery expanded down the street to Longmont, CO. and added an additional brewery in Brevard, NC in 2012. Oskar Blues brewed 192,000 barrels in 2015 and announced another brewery in Austin, TX scheduled to open in May of 2016.

Terms of the acquisition are not disclosed.

CCB-logo

Bear Republic To Open 2nd Brewpub

bear-republic
One of my favorite breweries, and the 2nd largest in Sonoma County, announced that they will be opening a second brewpub in the town right next door to me, in Rohnert Park, California. Bear Republic Brewing, whose original brewpub in is Healdsburg, and also operates a production facility in Cloverdale, has taken over the former Latitude Island Grill space in Rohnert Park, just off the Gold Course Drive exit.

latituderendering

Here’s the press release:

In keeping with the tradition of honest ales and family values, Bear Republic Brewing Company®, its employees and the Norgrove Family are excited to announce that after twenty years, Bear Republic will be opening the company’s third brewery operation in the City of Rohnert Park, California.

“Bear Republic looks forward to developing a positive relationship with the Chamber of Commerce, the City Fathers, the local business community and the citizens of Rohnert Park,” said Bear Republic Brewing Company® President & CEO Richard Norgrove.

The former Latitude Restaurant will be the new site of Bear Republic’s Rohnert Park brewpub.
The brewery and brewpub operation is currently in the planning stages and will commence with the construction phase at 5000 Roberts Rd, formerly the site of Latitude Restaurant. No opening date is available as of this writing.

“Rohnert Park is thrilled to have Bear Republic coming to town,” said Rohnert Park City Council Member Amy Ahanotu. He added, “A brewery of their quality is exactly what we’ve been looking for to expand the dining and entertainment choices for our residents and visitors.”

That’s going to be awesome, with Bear Republic so much closer to my house, but also in building their business with this third location. For more information about the space, here’s the original designs from Latitudes.

Historic Beer Birthday: Samuel Charles Whitbread

whitbread
Today is the birthday of Samuel Charles Whitbread (February 22, 1937- ), an heir to the Whitbread Brewery, who was president of the brewery and Whitbread’s other businesses from 1972 to 2001, when he retired. There’s some basic biographical information from the Peerage:

Sir Samuel Charles Whitbread was born on 22 February 1937. He is the son of Major Simon Whitbread and Helen Beatrice Margaret Hepburn-Stuart-Forbes-Trefusis.3 He married Jane Mary Hayter, daughter of Charles William John Hugh Hayter, on 31 August 1961.

He was educated at Eton College, Windsor, Berkshire, England. He was educated at Trinity College, Cambridge University, Cambridge, Cambridgeshire, England. He held the office of Justice of the Peace (J.P.) for Bedfordshire in 1969. He was a director of Whitbread plc between 1972 and 2001. He held the office of High Sheriff of Bedfordshire between 1973 and 1974. He was invested as a Knight, Most Venerable Order of the Hospital of St. John of Jerusalem (K.St.J.). He was invested as a Fellow, Linnean Society (F.L.S.). He was invested as a Fellow, Royal Society of Arts (F.R.S.A.). He was chairman of Whitbread & Company between 1984 and 1992. He held the office of Lord-Lieutenant of Bedfordshire in 1991. He lived in 2003 at Biggleswade, Bedfordshire, England. He was invested as a Dame Commander, Royal Victorian Order (D.C.V.O.) in 2010.

b12-246 Lord Samuel Whitbread, outgoing Lord Lieutenant in the comfort of his own home at Southill estate.

This is his entry from the International Who’s Who for 2004.

SCWhitbread-whos-who-2004

b12-246 Lord Samuel Whitbread, outgoing Lord Lieutenant in the comfort of his own home at Southill estate.