Boston Beer Strikes Deal with Brown-Forman
Apr 19, 2005 - Samuel Adams Brewery has secured a production deal with Brown-Forman. In a regulatory filing submitted last week, Boston Beer Inc., said it expects capital expenditures of between $2.5 to $4.0 million in the agreement.
The two companies have agreed that Samuel Adams will produce a clear malt base using technology developed by Brown-Forman at its brewery in Cincinnati, Ohio. Both will share the investment costs of the equipment and fermenting and storage tanks needed for additional capacity.
The contract is not expected to have a material net effect on the company's revenue, operating costs or earnings, Boston Beer said in the filing. Brown-Forman can purchase up to a fixed percentage of the clear malt base that Samuel Adams can produce, and the brewery has the right to the balance of the production capacity for use in its own products.