Industry News (Issue 23)
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Editorial Dept.
Tiers for Beers
Northeast players Victory Brewing Company and Southern Tier Brewing Company have allied under parent company Artisanal Brewing Ventures, or ABV.
The move marks a new strategic model for craft breweries hoping to remain independent while pooling resources such as capital and distribution networks.
Under the ABV umbrella, Victory and Southern Tier will command a joint capacity of over 800,000 barrels of potential annual production, putting the ABV within the top 15 craft brewing companies in the United States, according to the 2015 Brewers Association criteria.
“The craft beer community is at its most critical moment since its inception as larger brewing corporations have bought into our grassroots movement, irrevocably changing the marketplace,” said Bill Covaleski, founder and brewmaster of Victory Brewing Company. “Like-minded brewers such as Victory and Southern Tier can preserve our character, culture and products by banding together. Allied we can continue to innovate and best serve the audience who fueled our growth through their loyal thirst.”
The transaction is expected to be finalized by the end of April.
Crafty Moves
The Massachusetts beer wholesaler Craft Beer LLC, also know has agreed to pay around $2.6 million for “unfair trade practices and illegal activities,” according to the Boston Globe.
The fine is a result 15 months of investigation, which concluded with the Massachusetts Alcoholic Beverages Control Commission (ABCC) slapping Craft Beer Guild LLC with a 90-day license suspension for engaging in “pay-to-play” practices, offering discounts and incentives in exchange for tap or retail placements. During a hearing, Craft Beer Guild, which also uses the name Craft Brewers Guild, admitted to paying up to $2,000 per tap handle.
Rather than serve the suspension, Craft Beer Guild agreed to pay “a fine equal to 50 percent of its daily gross profit, multiplied by the number of days its license was scheduled to be suspended”, according to a Brewbound report.
The fine is the largest paid by any alcoholic beverage license holder in the state of Massachusetts.
If left unchecked, unchecked pay-to-play violations could leave smaller breweries unable to compete, with prime retail locations going to more deep-pocketed rivals.
Top: Photo via Artisanal Brewing Ventures, Bottom: Photo via Craft Beer Guild LLC
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