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Craft Brew Alliance

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Craft Brew Alliance, Inc.
Company typePublic
Nasdaq: BREW
IndustryAlcoholic beverage
FoundedJuly 1, 2008; 16 years ago (2008-07-01)
DefunctNovember 11, 2019; 5 years ago (2019-11-11)
FateAcquired by Anheuser-Busch InBev, becoming the Brewers Collective
Headquarters
Portland, Oregon
ProductsBeer, cider
Production output
86,553,060 liters (724,900 barrels)
Websitecraftbrew.com

Craft Brew Alliance, Inc. is a beer brewing company that originally was composed of five beer and cider brands: Redhook Ale Brewery, Widmer Brothers Brewery, Kona Brewing Company, Omission Beer, and Square Mile Cider.[1]

Craft Brew describes Kona and Omission as national brands, while the others are regional brands.[2] In addition, Craft Brew launched strategic brewing and distribution partnerships with three other regional companies, whom it acquired outright on October 10, 2018: Appalachian Mountain Brewery, Cisco Brewing, Inc., and Wynwood Brewing.[2]

According to the Brewers Association, Craft Brew is the ninth largest beer brewing company in the United States, based on 2015 sales volume of 824,400 and an annual working capacity of approximately 1,075,000 barrels.[1][3]

As of November 2019, Anheuser-Busch InBev has agreed to fully acquire Craft Brew Alliance in 2020. The acquisition started in December 2010, when AB InBev bought 32.2%[4][5] of the business, became the company's distribution partner,[4] was given two seats on its board of directors, and gained special status in the company's board committees.[5] On August 23, 2019, AB InBev paid Craft Brew $20 million instead of exercising a "pay-or-play" option to buy out the rest of Craft Brew Alliance at a price of $24.50 a share (which would have cost about $328 million).[6][7] As a consequence, shares of Craft Brew dropped more than 20% that day.[7] However, on November 11, 2019, A-B agreed to purchase the rest of Craft Brew for $16.50 a share (about $220 million).[8]

History

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The company was formed on July 1, 2008,[9][10] with the merger of Redhook Ale Brewery and Widmer Brothers Brewery. CBA acquired Kona Brewing Company on October 1, 2010. In 2012, CBA launched a new brand called Omission Beer, promoting the beer as specially crafted to remove gluten. In 2013, CBA launched a cider – Square Mile Cider, and in 2014 entered into a partnership with The Chive to create KCCO beer under the independent/Chive-owned Resignation Brewery moniker.[11]

The company was originally named Craft Brewers Alliance, but changed its name to Craft Brew Alliance on January 12, 2012.[12]

As of March 15, 2012, Craft Brew Alliance is publicly traded as Nasdaq: BREW. Prior to this date it was publicly traded as HOOK.[13]

Products

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The company produces brands such as Redhook, Widmer Brothers Brewing, Omission Beer and several others.[14]

Redhook

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Main article: Redhook Ale Brewery

Redhook was founded in the early 1980s in Seattle. At first, the brewery was a small shop in the Seattle neighborhood of Ballard. The beers brewed by Redhook include ESB, IPA, Pilsner, Copperhook, and seasonal brews.[14] Anheuser-Busch sold Redhook to Tilray on 8 August 2023 due to the decline in sales from the 2023 Bud Light boycott.[15]

Widmer Brothers Brewing

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Main article: Widmer Brothers Brewery

Widmer Brothers brews various beers including their flagship, Hefe American Hefewiezen, Drop Top Amber Ale, Upheaval IPA, Steel Bridge Porter, PDX Pils, various seasonals and 10+ small batch beers on tap at the Brewery on Russell St. Anheuser-Busch sold Widmer Brothers to Tilray on 8 August 2023 due to the decline in sales from the 2023 Bud Light boycott.[15]

Kona Brewing Company

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Main article: Kona Brewing Company

The Kona Brewing Company was founded in the spring of 1994 and is Hawaii's largest brewery.[14]

Omission Beer

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The company's Omission Beer is designed to have low gluten content by using a proprietary enzyme to remove gluten from traditional beer ingredients - namely malted barley.[16]

Square Mile Cider Company

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Launched in 2013, there are two primary products under this brand – "The Original" which is a traditional hard apple cider; and "Spur & Vine", which is a "hopped apple cider".

Appalachian Mountain Brewery

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On December 2, 2014, CBA entered into a strategic partnership agreement with Boone, North Carolina-based Appalachian Mountain Brewery (AMB).[17] As part of the partnership, CBA acted as "master distributor" for AMB, allowing their products to ship via the Anheuser-Busch InBev distributor network. CBA had taken an undisclosed, minority stake in AMB. On October 10, 2018, CBA announced that it acquired 100% of the AMB brand, brewery, and pub. The transaction closed November 29, 2018.[2] On June 3, 2023, the former owners of the Appalachian Mountain Brewery announced they had purchased the company back from AB InBev and will be severing ties with the company to refocus on local distribution.[18]

Cisco Brewers, Inc.

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On September 25, 2015, CBA announced a strategic partnership agreement with Nantucket-based Cisco Brewers.[19] As with previous partner, AMB, CBA acted as "master distributor" for AMB, allowing their products to ship via the Anheuser-Busch InBev distributor network. CBA had taken an undisclosed, minority stake in Cisco Brewers. On October 10, 2018, CBA announced that it had acquired 100% of the Cisco intellectual property assets related to its malt beverage products; Cisco's founders continue to own and operate the Cisco Brewers brewpub properties and retail merchandising, including the original brewery and grounds in Nantucket.[2]

Wynwood Brewing Co.

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On December 15, 2016, CBA announced a strategic partnership agreement with Miami, Florida–based Wynwood Brewing Co. ("Wynwood").[20] CBA took a 24.5% stake in Wynwood, valuing the deal at under $30 Million. As with previous partners AMB and Cisco Brewers, CBA acted as "master distributor" for Wynwood, allowing their products to ship via the Anheuser-Busch InBev distributor network. On October 10, 2018, CBA announced that it had acquired the remaining 75.5% of equity in Wynwood, making Wynwood a wholly owned subsidiary of CBA, although Wynwood co-founders Luis Brignoni and his father “Pops” Brignoni would continue to run the operations.[2]

Sustainability initiatives

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Through investments in renewable energy, closed-loop systems, and energy intensity, the company is improving their operations and efficiency. The company utilizes BMS software at their breweries to access real-time tracking of key performance indicators to help reach sustainability targets.[21]

Officers and directors

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Name[22] Title
Kurt R. Widmer Chairman emeritus
Andrew J. Thomas Chief executive officer
Christine Perich Chief financial officer, treasurer
Scott Mennen Chief operating officer
Dan Partelow VP, commercial development
Peter Schauf VP, international sales
Derek Hahm VP, sales & brewpubs
Ken Kunze Chief marketing officer

On November 21, 2013, the company announced that, effective January 1, 2014, Andy Thomas will take over as the company's new CEO.[23]

On May 20, 2015, CBA announced the appointment of Joe Vandersteldt to CFO, along with several other changes at the executive leadership level.[24][25]

Use of the term "craft brew"

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While the company name contains the phrase "craft brew", it does not meet the definition of a craft brewer according to the Brewers Association,[26] due to the percentage stake owned by Anheuser-Busch InBev.[4][27][28][29] The Brewers Association defines American craft brewers as "small, independent and traditional", with 'small' defined as an "annual production of 6 million barrels of beer or less", a limit changed in 2011 from 2 million to 6 million to ensure the ongoing inclusion of Boston Beer Company[30] (the producer of the Samuel Adams brand), "independent" defined as at least 75% owned or controlled by a craft brewer, and "traditional" defined as at least 50% of its volume being all malt beer.[26][29]

See also

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References

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  1. ^ a b "Craft Brew Alliance, Inc. Annual Report For the Fiscal Year Ended: December 31, 2015" Retrieved August 26, 2018.
  2. ^ a b c d e "Craft Brew Alliance form 10-K for fiscal year ended December 31, 2018". March 3, 2019. Retrieved November 12, 2019.
  3. ^ "Brewers Association Lists Top 50 Breweries of 2015", Brewers Association, April 5, 2016.
  4. ^ a b c "10 Craft Beers that Aren't", TheStreet, January 4, 2013.
  5. ^ a b "Craft Brewers Alliance, Inc. Form 10-K". US SEC. p. 18. As of December 31, 2010, A-B owns approximately 32.2% of our outstanding common stock and, under the Exchange Agreement, has the right to appoint two designees to our board of directors and to observe the conduct of all standing board committees.
  6. ^ Kendall, Justin (August 23, 2019). "Anheuser-Busch InBev Doesn't Make Qualifying Offer for Craft Brew Alliance". Brewbound. Retrieved November 11, 2019.
  7. ^ a b Meunier, Andre (August 23, 2019). "Anheuser-Busch opts not to buy Portland's Craft Brew Alliance". The Oregonian. Retrieved November 11, 2019.
  8. ^ Rogoway, Mike (November 11, 2019). "Anheuser-Busch buys total control of Portland's Craft Brew Alliance for $220 million". The Oregonian. Retrieved November 11, 2019.
  9. ^ "Craft Brewers Alliance". Archived from the original on December 9, 2011. Retrieved August 30, 2009.
  10. ^ "Post-merger Widmer reports profit". Portland Business Journal. August 12, 2009.
  11. ^ "Craft Brew Alliance Reports Second Quarter 2013 Results", Craft Brew Alliance official web site.
  12. ^ "Craft Brewers Alliance is now Craft Brew Alliance". Archived from the original on June 11, 2015. Retrieved October 9, 2013.
  13. ^ Craft Brew Alliance Changes Ticker Symbol to 'Brew' accessed January 8, 2013
  14. ^ a b c brands of company, accessed, October 29, 2013.
  15. ^ a b Jacob, Denny. "Anheuser-Busch Selling Shock Top, Blue Point to Cannabis Company Tilray". The Wall Street Journal. Retrieved August 16, 2023.
  16. ^ "Drinking is Believing | F.A.Q". Omission Beer. November 21, 2013. Archived from the original on November 30, 2016. Retrieved November 30, 2016.
  17. ^ Appalachian Mountain Brewery. "Appalachian Mountain Brewery". Appalachian Mountain Brewery. Retrieved November 30, 2016.
  18. ^ Gartner, Jordan (June 3, 2023). "Original owners buy brewery back from Anheuser-Busch". WBAY-TV. ABC. Retrieved June 4, 2023.
  19. ^ Craft Brew Alliance. "Cisco Brewers". Craft Brew Alliance. Retrieved September 25, 2015.
  20. ^ Brewbound (December 15, 2016). "Wynwood Brewing". Brewbound. Retrieved December 15, 2016.
  21. ^ "Sustainability Hero: Julia Person brings energy efficiency to craft brewing". Lucid. Retrieved November 13, 2018.
  22. ^ Key People in CBA[dead link]
  23. ^ Next CEO for CBA - Andy Thomas
  24. ^ "Craft Brew Alliance Inc (BREW.O) Key Developments". Reuters.com. Archived from the original on March 5, 2016. Retrieved November 30, 2016.
  25. ^ "Craft Brew Alliance Inc (BREW.O) People". Reuters.com. Archived from the original on April 2, 2012. Retrieved November 30, 2016.
  26. ^ a b "Craft Brewer Defined". Brewersassociation.org. Archived from the original on July 10, 2011. Retrieved March 16, 2012.
  27. ^ "That Craft Beer You're Drinking isn't Craft Beer – Do You Care?", Time, August 13, 2013.
  28. ^ Report: The Craft Beer Industry's Big Year, Associations Now, March 20, 2013.
  29. ^ a b "Brewers Association: Craft Beer is Now a $10 Billion Category", Brewbound, March 18, 2013.
  30. ^ "10 Craft Beers That Aren't". TheStreet. January 4, 2013. Retrieved November 24, 2013.
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