Industry News (Issue 22)

A-B InBev Purchases Three More Craft Breweries

2015 was a big year for craft beer. While the statistics aren’t in yet, the sheer number of acquisitions and expansions shows that the craft beer’s growth hasn’t diminished in the slightest. As always, macro vs. micro remains a major theme of any enlightened barroom, and A-B InBev was extremely busy in 2015.

More recently, the megabrewer added three highly regarded local breweries from around the world to its High End line of beers. Breckenridge Brewery in Denver, CO, Four Peaks Brewing Co. in Tempe, AZ and Camden Town Brewery in London will provide 189,000 barrels of high-quality craft beer to A-B InBev’s High End stable.

Four Peaks Brewing was founded in 1996 and has grown into one of Arizona’s largest breweries. With a devoted following and delectable beers like Sunbru, Hop Knot IPA and Kilt Lifter (a 5-time GABF-medaling Scottish-style ale), this is an important regional pickup for the company.

Even more revered is Breckenridge. When it opened in 1990, it was only the third craft brewery in Colorado – what a difference 25 years makes. Now that Colorado has 235 craft breweries (according to the BA), Breckenridge is one of the elder statesmen of Coloradan craft beer.

While American craft brewery acquisitions garner much of the media’s attention, A-B InBev’s acquisition of Camden Town Brewery in London is of equal importance. While not quite as steeped in tradition and history as Breckenridge and Four Peaks, Camden Town was founded in 2010 and has experienced a surge of growth as the craft beer movement has begun to take off in England.

San Diego’s AleSmith Brewing Co. and world-renowned gypsy brewery Mikkeller announced plans to open up a brick-and-mortar establishment for Mikkel Borg Bjergsø’s creations in AleSmith’s hometown of San Diego. The brewery will be called Mikkeller Brewing San Diego.

AleSmith brewmaster Peter Zien (who possesses an ownership stake in the business) will remain on as a creative consultant and help “provide ongoing assistance on as-needed basis,” according to a press release from AleSmith.

Since AleSmith has moved into a sprawling new 105,500-square-foot facility, the old 30-barrel brewhouse that AleSmith started out using has become Mikkeller headquarters.

Zien and Bjergsø (along with the future staff of Mikkeller San Diego) have already brewed two collaborations in the new facilities, AleSmith-Mikkeller IPA and AleSmith-Mikkeller APA. Both beers are available at the brewery taprooms and other craft beer havens throughout California.

Plans are already in place to convert Mikkeller’s new taproom to be more in line with the aesthetic of the brewery’s global beer bars, and the updated sampling room is set to open in early 2016.

“People have always asked me when I’m going to open my own brewery, and my answer has always been ‘never.’ It’s the easiest answer, but it’s been on my mind for several years,” Bjergsø said in the press release. “I like being a ‘gypsy brewer,’ but know that having a stake in a U.S. brewery will change our position here. Brewing in one of the best breweries in the world really makes sense. If they can brew beers like they do at AleSmith, it really can’t go wrong.”

Ballast Point Sets Sale for Constellation

In another landmark deal for the increasingly contentious world of craft beer, Ballast Point Brewing & Spirits has agreed to sell to Constellation Brands for a cool $1 Billion. This marks the first entry into the craft market for the company which owns an array of brands including Corona, Modelo, and variety of wine companies.

Founded in 1996, the San Diego-based Ballast Point has become one of the fastest growing beer companies in the U.S., with projected sales of over 4 million cases in calendar 2015, an increase of over 100 percent from the previous calendar year. Its growth was largely fueled by flavorful amendments to its core line-up including Habanero and Grapefruit Sculpin, and an ever-growing line of spirits. 2016 promises to continue the trend with additions of Pineapple Sculpin IPA, Mango Even Keel Session IPA, Watermelon Dorado Double IPA and Ginger Big Eye IPA.

Ballast Point ranked number 31 on the Brewers Association’s Top 50 Craft Breweries of 2015.

Papazian to Relax, Have Homebrew

After 37 years at the helm of the Brewers Association, Charlie Papazian will step down from day-to-day operations this month. Founder of both the BA and the Great American Beer Festival, Papazian will still attend “key Brewers Association and American Homebrewers Association events,” according to the organization.

“My 37-year journey as founding president has provided me a lifetime of fulfillment,” Papazian said. “Being part of an organization that serves to enhance the opportunities for professional and amateur craft brewers is especially rewarding. The hard work, dedication and long hours of past and current association staff and the community of brewers it has served has undoubtedly made the world a better place for every beer drinker.”

CEO Bob Pease will take over presidential duties, giving Papazian ample time to sit back and enjoy a nice homebrew.