Industry News (Issue 20)

Kim Jordan Steps Down as New Belgium CEO

A quarter-century after co-founding New Belgium, Kim Jordan is stepping down from her position as CEO.

Jordan will retain a role in the employee-owned company as executive chair of New Belgium’s Board of Directors, allowing her to focus on “long-term strategy and vision”, including the New Belgium Family Foundation, which she co-founded in 2012.

“I have been doing this for 25 years,” Jordan said. “This kind of transition is inevitable and we think it is better to plan for it, rather than wait until people are absolutely burnt out.”

Taking the place of CEO will be Christine Perich, a 15-year veteran of New Belgium who has served as CFO, COO and President. Perich will focus on “short-term strategy, leading the executive team, industry leadership and running day-to-day operations,” according to Jordan.

“After spending the past 15 years as a part of the New Belgium team, I am incredibly excited for this opportunity,” Perich said in a statement. “With Kim’s continued guidance as Executive Chair and the strength of our management team, I feel very confident in our ability to drive the business forward while honoring all the fundamental elements that have made New Belgium so successful.”

Since New Belgium’s conception, it has grown to be the fourth-largest brewery in the U.S. according to the Brewer’s Association, and produces almost a million barrels of beer a year.

“With Christine’s years of experience as CFO, COO and President, she is abundantly qualified to step into this position,” said Jordan. “I have complete faith in her ability. We’re excited for this next chapter in our collective history.”

What’s the Deal With Lagunitas?

Adding to a rapidly growing list of craft mergers and acquisitions that includes Founders and Firestone Walker, Lagunitas has announced a partnership with Heineken. The Amsterdam-based company will purchase a 50 percent stake in Lagunitas, the sixth-largest craft brewery in America according to the BA.

Magee, often one of the most outspoken critics against big beer buyouts, has stated that he will remain at the helm of Lagunitas, and the brewery will continue to be run independently, retaining its business ethos and “soul”.

The deal will allow Lagunitas to utilize Heineken’s multi-national distribution network, which covers just about every corner of the globe. To Magee, it’s a big step for craft.

“This venture will create a way for Lagunitas to help Heineken’s global distribution network participate in the growing craft beer category in places from Tierra Del Fuego and Mongolia to the far-flung Isles of Langerhans,” Magee said. “Lagunitas will share in the best quality processes in the world and enjoy an open door to planetary opportunities that took lifetimes to build.”

Though numbers were not explicitly stated, estimates have placed a valuation of around $1 billion for the deal, which is expected to take place in the fourth quarter of 2015.

Not bad for a company that began brewing on a single stovetop.

Greg Koch’s Stone Rolls Onward

In a strikingly similar story in a month full of big craft shakeups, Stone co-founder and CEO Greg Koch is relinquishing the title of CEO and moving into an Executive Chair position.

Just like New Belgium’s Kim Jordan, Koch will move from focusing on day-to-day activities to a long-term, big picture role.

“It’s just the nature of the development curve of Stone Brewing,” said Koch. “I can do a pretty good job… but am I doing the best possible job in the role of CEO that can ever be done? I think we owe it to ourselves to look for a really incredible, strong addition to our team.”

No timeline has been set for the change, though it will likely coincide with the opening of Stone’s $25 million brewery in Germany, a move aimed to bring American craft to the rest of the world.

Despite the global focus, Koch seems as relaxed as ever.

“My tomorrow is going to look functionally the same as my yesterday,” he says. “I think this is a long-winded way of saying I may finally be able to take a Tuesday afternoon off.”

Oskar Blues Showcases Canny Growth

Oskar Blues Brewery is having a banner year.

The brewery released a report outlining its swift growth and impressive sales numbers for 2015. The Colorado and North Carolina-based brewery is experiencing impressive year-to-date growth of 28%.

Sales of the brewery’s flagship beer, Dale’s Pale Ale have increased by 43% for six-packs of canned craft beer, and Pinner Throwback IPA has overtaken the brewery’s Pilsner offering, Mama’s Little Yella Pils, as the brewery’s second-biggest seller in 2015.

The brewery also recently announced the release of a new 6.43% ABV IPA and expanded its distribution network to include its 43rd and 44th states: Arkansas and West Virginia.

Arizona Breweries Create Major Revenue

In a recent report by the National Beer Wholesalers Associaton, Arizona’s breweries contributed a whopping $4.3 billion to Arizona’s economy in 2014.

Arizona’s entire economy creates roughly $279 billion according to the U.S. Bureau of Economic Analysis, which means that Arizona’s beer industy is responisible for about 1.5 percent of Arizona’s total GDP.

In addition, breweries such as SanTan, Arizona Wilderness, Sonoran and Desert Eagle created over 38,000 jobs in 2014.

Even though it’s a dry heat, Arizonans must still need good craft beer to keep them cool.

Dogfish Head Gets Approval for Brewery Renovation

After 2 hours of debate, state officials voted unanimously to allow Delaware’s Dogfish Head Craft Brewery to expand its Rehoboth brewery by 1,500 square feet.

The 13th-largest craft brewery in ths U.S. had to answer numerous questions about its distillery, brewpub and restaurant and how the multimillion dollar expansion would affect the surrounding areas.

This will be the first renovation and expansion of the brewery’s facilities in Dogfish Head’s 20-year history.