Craft Partnering Continues

Huss Brewing Co. of Tempe, Arizona has acquired fellow Arizona brewery Papago Brewing Company, located in Scottsdale.

Well known Papago, now 15 years old and known for its Orange Blossom wheat beer will keep the Scottsdale brewpub and restaurant open and continue to operate as usual. Meanwhile, Huss Brewing has added additional tanks and will likely add Papago production in its Tempe brewery. Combined, the two will breweries will produce about 9,000 barrels.

Huss is the state’s fastest-growing craft brewery according to scan data and Papago has been constrained by capacity limitations. Expect this type of consolidation to occur more frequently in the industry, as this is becoming an increasingly common scenario. The Green Flash and Alpine Brewing acquisition was a similar marriage between two breweries in the same regional market, Green Flash with plenty of capacity and well-respected but small Alpine maxed out on both capacity and footprint.