I’m not sure where the source data comes from, but the latest issue of Playboy — in the Raw Data section — had an interesting Top 10 list of what they referred to as the “Tipsiest Towns in the U.S.” The list is “based on the average number of alcoholic drinks consumed per person.”
I received a press release this morning that Anheuser-Busch InBev is buying a controlling interest in Goose Island Brewing. ABI will pay $22.5 million for a 58% share of the Chicago brewery and the remaining 42% currently owned by the Craft Brewers Alliance will be sold to ABI for an additional $16.3 million in cash, bringing the total price of the sale to $38.8 million. The Chicago Tribune is reporting that “[a]n additional $1.3 million will be invested to increase production at Goose Island’s Fulton Street brewery” and that the “transaction is expected to close by the end of June.”
From the press release:
Chicago-based Goose Island, one of the nation’s most‑respected and fastest-growing small brewers with sales concentrated throughout the Midwest, today announced it had agreed to be acquired by Anheuser‑Busch, its current distribution partner, in a move that will bring additional capital into Goose Island’s operations to meet growing consumer demand for its brands and deepen its Chicago and Midwest distribution.
Goose Island’s legal name is Fulton Street Brewery LLC (FSB). Anheuser-Busch reached an agreement to purchase the majority (58 percent) equity stake in FSB from its founders and investors, held in Goose Holdings Inc. (GHI), for $22.5 million. Craft Brewers Alliance Inc. (CBA), an independent, publicly traded brewer based in Portland, Ore., that operates Widmer Brothers, Redhook and Kona breweries, owns the remaining 42 percent of FSB and reached an agreement in principle to sell its stake in FSB to Anheuser-Busch for $16.3 million in cash. Anheuser‑Busch holds a minority stake (32.25 percent) in CBA.
Goose Island sold approximately 127,000 barrels of Honkers Ale, 312 Urban Wheat Ale, Matilda and other brands in 2010. To help meet immediate demand, an additional $1.3 million will be invested to increase Goose Island’s Chicago Fulton Street brewery’s production as early as this summer.
“Demand for our beers has grown beyond our capacity to serve our wholesale partners, retailers, and beer lovers,” said Goose Island founder and president John Hall, who will continue as Goose Island chief executive officer. “This partnership between our extraordinary artisanal brewing team and one of the best brewers in the world in Anheuser-Busch will bring resources to brew more beer here in Chicago to reach more beer drinkers, while continuing our development of new beer styles. This agreement helps us achieve our goals with an ideal partner who helped fuel our growth, appreciates our products and supports their success.”
Hall will continue to be responsible for Goose Island beer production and the expansion of Goose Island’s Chicago brewery, where production will continue and its business will still be based.
“The new structure will preserve the qualities that make Goose Island’s beers unique, strictly maintain our recipes and brewing processes,” Hall said. “We had several options, but we decided to go with Anheuser‑Busch because it was the best. The transaction is good for our stakeholders, employees and customers.”
Anheuser-Busch has distributed Goose Island brands since 2006 as part of an agreement with Widmer Brothers Brewing Co. of Portland, Ore., a co-founder of CBA, that provides Goose Island access to the network of independent wholesalers that distribute Anheuser-Busch beers. Anheuser‑Busch also provides logistical support to all Anheuser‑Busch wholesalers distributing Goose Island and CBA beers as part of that agreement.
“These critically acclaimed beers are the hometown pride of Chicagoans,” said Dave Peacock, president of Anheuser-Busch, Inc. “We are very committed to expanding in the high‑end beer segment, and this deal expands our portfolio of brands with high-quality, regional beers. As we share ideas and bring our different strengths and experiences together, we can accelerate the growth of these brands.”
The two Goose Island brew pubs are not part of the deal, but will continue in operation, offering consumers an opportunity to sample Goose Island’s award-winning specialty beers and food selections.
As part of CBA’s agreement to sell its 42 percent block in FSB to Anheuser-Busch, in addition to cash, Anheuser-Busch will provide enhanced retail selling support for CBA brands, will reduce distribution fees payable by CBA to Anheuser‑Busch and will provide CBA additional flexibility with respect to future acquisitions and divestitures.
In a separate press release today, Goose Island announced that Brett Porter will become Brewmaster of the production facility, replacing longtime brewmaster Greg Hall. Porter’s most recent brewing job was with Deschutes and he’s also brewed at Portland Brewing and a couple of UK breweries.
UPDATE: Goose Island founder John Hall has released a short statement about their acquisition by ABI, which they call a Special Announcement.
This week’s work of art is by Eddie Morman, created for Abita Brewing. Of the four works available at Abita’s online store, two are paintings of Abita beer bottles. The first painting is of an Amber bottle.
And the second is for Purple Haze.
There isn’t any information about the artist, sadly, but I suspect he’s a local and the two works are fairly recent.
There are six spots left in Brookston League Baseball, a rotisserie fantasy league for the 2011 season. But hurry up, the league will draft tomorrow, so sign up today if you want to play along.
In order to join the league, go to game front page, click the “Sign Up Now” or “Get Another Team” button and follow the links to “Join a Custom League”. When prompted, enter the League ID# and password below. If it won’t let you join, it’s probably because we’ve reached the limit for the number of teams allowed in the league.
League ID#: 119845
Password: beer
One of the most fun seminars at this year’s Craft Brewers Conference last week was the Barrel-Aged Sour Beers from Two Belgian’s Perspectives on Friday. It was moderated by Vinnie Cilurzo from Russian River Brewing and featured two lambic brewers, Yvan de Baets, owner of Brasserie de la Senne, and Jean Van Roy, owner of Brasserie Cantillon. I missed part of Yvan’s talk, but caught all of Jean’s. I first met Jean Van Roy at Cantillon several years ago, shortly before he took over the brewery from his father, Jean Pierre, and when Yvan was still working there, too. Jean gives a great overview of Cantillon’s brewing process. Enjoy.
Yvan de Baets, Vinnie Cilurzo and Jean Van Roy.
Our 61st Guinness ad shows the iconic toucan with two pints of Guinness and the following poetry:
If he can say as you can
Guinness is good for you
How grand to be a Toucan
Just think what Toucan do
They used that punny language to good effect for many years, and in fact that was why the toucan became one of the most used animals in their advertising.
I ran into Dan Gordon, from Gordon Biersch, at CBC yesterday and he told me about a new beer they’ve created, Hoppotamus Maximus, a hoppy and oh-so-rare beer that few people — unfortunately — will ever get a chance to sample. He’s teamed with Justin Crossly of The Brewing Network to tell the story of how he created the beer. It’s a pretty funny spoof of the hype surrounding hard-to-find beers, and the humor is as dry as I expect the beer would be.
Earlier today the 2011 Craft Brewers Conference began with the morning program, which ended with a keynote address by Fritz Maytag and Ken Grossman. It was more of a casual talk or reminiscence, with Maytag and Grossman talking about their early days, with both the challenges and joys of those times when their were trying to get their respective breweries off the ground. They sat opposite one another on comfy chairs and talked for just over 30 minutes finishing with a toast using the collaboration imperial stout they did together last year, Fritz & Ken’s Ale.
It was a highly entertaining talk and even quite funny in places. I’d forgotten my Flip camera, but I did manage to record the audio of the talk. The keynote is introduced by Tom McCormick, executive director of the California Small Brewers Association, and then it’s Ken and Fritz for thirty plus minutes. Enjoy.
The neo-prohibitionist organization MADD today sent out a press release announcing that they’ve partnered with Archie Comics “to raise awareness about underage drinking.” The new issue of Double Digest #217 hits the comic book stores tomorrow, and features an 8-page story entitled The Madd Cowboy of Riverdale High. Below are a few sample pages.
The “Cowboy” part of the title is for Dallas Cowboy tight end Jason Witten, who appears as himself to speak to Archie and his classmates in an assembly. He’s specifically promoting MADD and their Power 21, which will take place April 21 and is touted as a “national event that seeks to have parents talking to their children about underage drinking.”
Believe it or not, I’m not entirely against this latest effort by MADD, although I don’t believe the goal should be to completely eliminate underage drinking — an impossibility, in my experience — but should instead focus on figuring out an effective way to allow parents to educate their kids about drinking alcohol as they grow from teens to young adults. In my opinion, that would go a long way toward encouraging responsible behavior and reducing drunk driving and binge drinking. Though to be honest, by the time that message might have been relevant to me as a child, I was done reading Archie Comics. I’m not sure what their main demographic is, but my guess would be pre-teens, around 8-11 or 12.
The Brewers Association just announced the statistics of craft beer sales in 2010, and the news is great. Craft beer saw volume growth of 11% over 2009, and in terms of dollars the increase was 12%, equating to roughly an additional one million barrels, or 14 million cases.
From the press release:
“Beer lovers increased their appreciation for American craft brewers and their beers in 2010,” said Paul Gatza, director, Brewers Association. “Craft brewers’ stories resonate with Americans who are choosing small, independent companies making delicious beers in more than 100 different styles.”
The Association also reported a growth in the number of U.S. breweries, with eight percent more breweries than the previous year. In 2010, there were 1,759 operating breweries. Craft brewers produced 9,951,956 barrels, up from an adjusted3 8,934,446 barrels in 2009.
“Prohibition caused a dramatic decline in the number of breweries in the United States, but the number of breweries is now at an all-time high,” added Gatza. “With well over 100 new brewery openings in 2010, plus 618 breweries in planning stages, all signs point to continued growth for the industry.”
In 2010, craft brewers represented 4.9 percent of volume and 7.6 percent of retail dollars of the total U.S. beer category. The Brewers Association estimates the actual dollar sales figure from craft brewers in 2010 was $7.6 billion, up from $7 billion in 2009.
Overall, the U.S. beer industry represented an estimated retail dollar value of $101 billion. U.S. beer sales were down approximately one percent, or 2 million barrels, in 2010 compared to being down 2.2 percent in 2009. Total beer industry barrels dropped to 203.6 million, down from 205.7 million barrels in 2009. Imports were up five percent in 2010, compared to being down 9.8 percent in 2009. (Note: the Brewers Association does not count flavored malt beverages as beer.)
Gatza added, “We also found that three percent of craft brewer barrels, by volume, are distributed in cans, confirming a growing trend.”
It’s always great to have confirmed what we see in the street, that most, if not all, craft brewers are doing well. Another great year of craft beer growth. Congratulations to everybody.