retail news in context, analysis with attitude

The Boston Globe this morning reports that “Boston Beer Company and Delaware-based Dogfish Head Brewing, the second and thirteenth largest U.S. craft brewers respectively, announced on May 9 that they plan to merge in a deal valued at approximately $300 million … The cash-and-stock transaction, expected to close late in the second quarter, will combine Boston Beer brands including Samuel Adams beer, Angry Orchard hard cider, Truly Hard Seltzer, and Twisted Tea with Dogfish Head’s IPA and sour offerings.”

The press release suggests that the new company will bring together “more than half a century of Craft brewing expertise, a balanced portfolio of leading beer and ‘beyond beer’ brands at high end price points, and industry leadership in innovation and quality.”

The story notes that “while the coupling of the two operations will give them a leading position in the high-end U.S. beer market and better position them to compete with global beer conglomerates, the brewers will retain their status as an independent craft brewery when merged. To fall into this category, the Brewers Association mandates that ‘less than 25 percent of the craft brewery is owned or controlled (or equivalent economic interest) by a beverage alcohol industry member that is not itself a craft brewer’.”
KC's View: