Two brewmasters walk into a bar... and they merge operations. Sam Adams-owner Boston Beer Co. is the nation's 2nd biggest craft brewer. IPA-legend Dogfish Head is #13 (the pride o' Delaware). Now they're merging in a $300M deal: The Dogfish husband and wife co-founders earn $127M in Boston Beer stock, while other Dogfish investors get $173M in cash.
Let's just mix them... The brew-mance actually began in February when the two CEOs met at a beer fest in Boston (we approve: one of your Snacks Managing Editors met his fiancée at a VT brew fest). Then they realized how "beautifully complementary" their portfolios are. Adorable. Now they've got two goals:
- "High-end" anything: The duo will keep things artisan, but not necessarily beer — Boston Beer's Angry Orchard cider is a top-performer.
- But stay "legally craft": They'll keep their status as craft, even after they're merged — As long as no more than 25% of either label is owned by a non-craft company.
This is how you take on Big Beer... AB InBev, Diageo, Molson Coors, and other brew-glomerates have bought up craft beers for years (here's where). Corona's Constellation Brands dropped $1B for Ballast Point microbrew in 2015. Two-packed craft beer can fight for shelf space. And it's why Boston Beer's CEO expects "more consolidation in the craft beer industry."