NAB Buys IBU

North American Breweries buys up Independent Brewers United

It’s now official, Rochester-based North American Breweries is buying Independent Brewers United which holds both Magic Hat Brewing Co. and Pyramid Breweries.

North American will take over operations at the acquired company’s three breweries in Portland, Ore.; Berkeley, Calif.; and Burlington, Vt. The three craft beers, Magic Hat, Pyramid and MacTarnahan’s will be added to North American’s current brand portfolio of Genesee, Dundee and Seagram’s and most notably, Labatt. The Labatt USA division is headquartered in Buffalo.

The acquisition more than doubles the number of employees currently on North American’s payroll, from approximately 500 to 1,100. United’s three breweries, five alehouses and one retail store will reportedly remain open.

Pyramid is the fifth largest craft brewery in the United States while Magic Hat is the 10th largest.

Comments

  1. dberg says

    admin wrote:
    Pyramid is the fifth largest craft brewery in the United States while Magic Hat is the 10th largest.

    Ok, I’ll bite. Will they remain classified as craft breweries?

  2. lhall says

    I think so. What’s the BA definition, 2 million bbls, and flagship beers less than 25% adjuncts?

  3. dberg says

    “Less than 25% of the craft brewery is owned or controlled (or equivalent economic interest) by an alcoholic beverage industry member who is not themselves a craft brewer.”

  4. Dailybeer says

    The owner of both brewing companies is now KPS Capital Partners.

    You can check them out at:

    http://www.kpsfund.com/

    But to summarize they are a “a family of private equity limited partnerships with over $2.6 billion of committed capital focused on constructive investing in restructurings, turnarounds, and other special situations.”

    Thus I assume that they will no longer be considered Craft Breweries due to the 25 percent ownership rule. But what do I know.

  5. admin says

    Ha! The BIG questions I was waiting for. Seems to me that will no longer be considered “craft” breweries under the BA guidelines. that will mean a pretty big shift in numbers.

  6. LuskusDelph says

    dberg wrote: Ok, I’ll bite. Will they remain classified as craft breweries?

    BA definition notwithstanding, bottom line is: if they make good beer, they are still “craft” no matter how big they get.

  7. MikeJordan says

    dberg wrote: Yes, it will, especially when you factor in the volumes of Anchor and Kona.

    Kona is CBA….Anchor is also another group….

  8. Brew4Brains says

    The real question is whether they remain “craft” in the eyes of the consumer, if they even notice this.

  9. admin says

    Correct MikeJordan; Anchor is still a “craft” because it is still independently owned.

  10. BrewinLou says

    That, and Anchor does not produce anywhere near the 2 million bbls a year. They have (at least last time I was there) a 120 bbl beautiful brew house.

  11. dberg says

    admin wrote: Correct MikeJordan; Anchor is still a “craft” because it is still independently owned.

    I guess I don’t see how the Griffin Group fits in with this

    “Less than 25% of the craft brewery is owned or controlled (or equivalent economic interest) by an alcoholic beverage industry member who is not themselves a craft brewer.”

    Clearly, they are an alcohol beverage industry member. From their website:

    “Our purpose: to marshal the capabilities of brand owners and market specialists in order to forge new directions for the beverage alcohol industry.”

    Perhaps because they bought a craft brewer they are now a craft brewer? Which came first, the chicken or the egg?

  12. liammckenna says

    I wish I new how to start a poll.

    Will the BA:
    1/ Change the definition
    2/ Change the definition
    or
    3/ Change the definition

    :rolleyes:

    Liam

  13. Rob Creighton says

    Whether or not ABInbev controls KPS, this deal struck me as contrived as well as a “unique investment opportunity”. It’s what I call arms-length market control and Inbev makes every effort to practice direct and indirect control wherever they can. If you can’t beat them, buy’em. Simple.

  14. LokeBrewSF says

    BrewinLou wrote: That, and Anchor does not produce anywhere near the 2 million bbls a year. They have (at least last time I was there) a 120 bbl beautiful brew house.

    Don’t worry, they still have that brewhouse. Can’t imagine they would change it, ties in with their image too much.

  15. admin says

    Will the BA:
    1/ Change the definition
    2/ Change the definition
    or
    3/ Change the definition

    I would say either all of the above or none of the above. 🙂