One view that was mostly hidden from the astounding news yesterday that New Belgium Brewing sold to Kiri’s is the fact that the deal may coalesce a broader collection of U.S. breweries than most people realize. Magnolia Brewing in San Francisco is owned by New Belgium Brewing and is part of the sale package. That will give Kirin a well-regarded west coast brewery with numerous retail locations. Additionally, Kirin already owns a portion of Brooklyn Brewing, which in turns has ownership in 21st Amendment and Funkworks. Combined that is five diverse breweries across the country.
Brewery ‘collectives’ make a lot of sense in a hyper competitive market driven by a consumer who thirsts for “local” beers. CANarchy, made up of six breweries across the country including Three Weavers, Cigar City and Oskar Blues is another big money play, driven by the venture capitol group Fireman’s Fund, to succeed in a fragmented market by seeking company in others.
Full story here.