Mid-Atlantic breweries Victory Brewing Company and Southern Tier Brewing Company announced an alliance under a under parent company Artisanal Brewing Ventures (ABV). A press release stated, “This new strategic framework between ABV, Victory and Southern Tier provides capital, security and vision for the future. ABV, formed to unify independent craft brewers and distillers, embraces the collaborative craft spirit while administering crucial growth resources. As a key partner in this formation, Arlington Capital Advisors acted as exclusive financial consultant to Victory. The transaction is expected to close within the next 60 days.”
Victory and Southern Tier will independently operate their breweries, which have a joint capacity of over 800,000 barrels. This alliance creates one of the largest brewers in the Northeast and ranks within the top 15 craft brewing companies in the United States with combined
“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. Like-minded brewers such as Victory and Southern Tier can preserve our character, culture and products by banding together,” Victory co-founder Bill Covaleski said for a press release. “Allied we can continue to innovate and best serve the audience who fueled our growth through their loyal thirst.”
The Victory and Southern Tier leadership teams and employees will remain intact. Covaleski and Victory co-founder Ron Barchet will join the Artisanal Brewing Ventures’ Board of Directors. CEO John Coleman and CFO Bill Wild will lead ABV’s management team.
“This is exactly the kind of alliance we imagined when we created Artisanal Brewing Ventures in 2014,” said Phin DeMink, founder of Southern Tier Brewing Company. “This is a concept that was specifically designed by and for craft brewers, so we can focus on the things we’re best at while creating meaningful scale advantages. I’m proud to see this model validated and am grateful that my friends Ron and Bill have become our partners.”
“I look forward to guiding these two truly great organizations forward as they collaborate, innovate and share best practices.” Coleman said. “I believe this is a watershed transaction for the craft brewing world.”
