Those of you who’ve been in the beer world for a few decades will no doubt remember the tumultuous period around 1997 when Vijay Mallya, and his UB Group, which also owns the Indian beer Kingfisher, started buying up breweries. They picked up Nor’Wester Brewing first, along with a few others, and UB Group consolidated their U.S. holdings under the name “United Craft Brewers, Inc.,” or simply “United Craft.” The first five included Nor’Wester Brewing Company of Portland, OR; Aviator Ales of Woodinville, WA; Mile High Brewing of Denver, CO; Bayhawk Ales of Irvine, CA; and North Country Brewing of Saratoga Springs, NY. United Craft later added Mendocino Brewing Co. of Hopland, CA and Humboldt Brewing of Arcata, CA, and then Carmel Brewing of Carmel, CA. United Craft lists a Sausalito address, which is coincidentally where owner Vijay Mallya also built a multi-million dollar home. But essentially only Mendocino Brewing remains of the breweries as a viable brand, although Humboldt was sold off.
I remember when UB initially bought Mendocino Brewing and Mallya began visiting their distributors. He would attend distributor meetings with an actual entourage, including bodyguards, which was not exactly endearing to anybody. Within a short time the Mendocino brand, which had been very successful locally, began to fall precipitously. It’s never really recovered, though they do quite a bit of contract brewing out of their Ukiah facility. Mallya has a fairly ruthless reputation for his business practices, and I’ve spoken to at least two people who’ve done business with him in other industries who’ve had nothing flattering to say about the way he conducts himself, so the news being reported by the Drinks Business came as no surprise, except perhaps as to why it took so long. Undoubtedly, there, as here, the rules for billionaires are different than it is for you and me.
According to Drinks Business report, “Indian authorities have issued an arrest warrant against Vijay Mallya, the former head of United Spirits, just days after freezing his passport.”
The warrant was issued on the “third strike and out” practice of the Indian Enforcement Directorate (ED) when the colourful former tycoon failed to appear at the third time of asking at a Mumbai court to answer allegations of misuse of funds loaned to his Kingfisher Airlines by a state-owned bank, IDBI.
This is one of 17 Indian banks seeking to recover some $13 billion from Mallya. Last month they rejected his proposed scheme to repay $600 million.
It is alleged that Mallya used part of the $134m loan from IDBI to buy properties overseas. The airline, which was never profitable, collapsed into bankruptcy in 2012 with debts approaching £1bn.
Mallya has consistently denied impropriety and his private holding company, UB Group, said that the full loan, including up to $65m alleged to have been diverted to Mallya’s personal use, had been “used for legitimate business purposes only”.
The statement said that the arrest warrant was “erroneous and unjustified”.
Mallya, who is thought to be in Britain, has been ordered by India’s supreme court to disclose all his assets to the authorities.
Inside the newer Mendocino brewery in Ukiah.
Steve Parkes says
Humboldt backed out of the deal at the last minute. It dawned on them that the brewery would be immediately closed if the deal went through.
Jay Brooks says
Thanks for the clarification, I couldn’t remember how it went down with a lot of them at this point. Seems like ancient history some days.
Beer Delivery Guy says
I visited the original Mendocino Brewery many times on 101 in Hopland. Interesting to hear of the aftermath of the “United Craft” buyout after all these years. They had a nice little outdoor beer garden with Hop Vines growing on trellises.
Jess Kidden says
Their Olde Saratoga Brewing Co. is still opened and active on the east coast.
https://www.oldesaratogabrew.com/menu.html Besides their own brands, and the Mendocino labels, they do a lot of contract-brewing.
That brewery was the longtime source of the Shmaltz Brewing Co.’s He-Brew and Coney Island brands until they opened their own brewery in nearby Clifton Park, NY (originally using the same brewer from Olde Saratoga, Paul McErlean).
Other brands brewed in their Saratoga Springs brewery have been Sugar Hill, Harlem, Keegan, Southampton and Monty Python, etc. They also brew their own Kingfisher for the east coast.
Heineken is looking to become the majority shareholder of United Breweries.
While Diageo is doing the same for the United Spirits division.
Jay Brooks says
Same for the Mendocino brewery in northern California (Ukiah) which is certified organic, so they do a number of organic beers, like Bison, there.
free the hops says
Olde Saratoga Brewing Co closed now too… A great brewery destroyed by a greedy investor who cared nothing for the people or the product.