Cigar City AB InBev Rumor

100-150million? Yeah right. Ballast Point before CB's acquisition, next to CCB now, as an independent, is laughable in comparison. CCB has a way higher value, considering their allocation is always being fought over and squandered per bar and liquor store because of quality, not to mention their members only club which brings in $$$$, bottle releases, beer festivals, real estate & properties, J. Redner enterprises, the titty bars, and their affiliates, (CCB Mead & Cider, Brewpub, Airport Brewpub, & Brewhub).

I can't see them leaving Brown Distributing but I can see them expanding distribution some way, some how. A billion is more like it, if they were to sell, the same goes with Alesmith, another big fish on the way.

 

Do you really think this? They have barely any distribution footprint and make far less beer than BP and Alesmith. These properties you list are worth nothing to a corporation like AB. I think you might be a tad bit homerish here.

 

No man, slight-homerism is undeniable, but CCB is a huge tourist destination in Tampa. It's Florida's number one beer company, hands down. It's one of the companies that exposed craft beer in the last ten years to the beast that it is now. Breckenridge who? They just got lucky with a buyout. CCB has chosen their footprint thus far. I can't imagine them letting any of that go for less than a billion or very close to it because they're going to make that in ten years. I would like to know how much money CCB brings in yearly because I operate six liquor stores, which do anywhere from a one to three million a year in profit x 10 years.

 

I would say CCB is much closer to Breckinridge than to BP, quality withstanding. That's based on hard real world dynamics like production capacity and footprint, not fancy beer clubs and one day festivals.

 

<sigh> I appreciate the enthusiasm and the support of the home team but ...

First, Cigar City Brewing and J Redner Enterprises are two entirely different companies. And not just in the legal-semantics sense, either. The former is owned by Joey; the latter is owned by his father, Joe.

Second, so far as I can recollect, CCB does exactly one "festival" per year. And while that (and El Cat) undoubtedly brings in a nice pile of cash for CCB, both Huna Day and El Cat memberships are once-a-year events. And frankly, those two piles of cash -- while absolutely life-changing money to a lot of people, including me -- are barely rounding errors to a mega-cap company such as AB-InBev.

Third, as others have pointed out, an expansive footprint is the key to significant revenues and CCB's footprint is solid in Florida but barely extends up the Southeast into Virginia. That's not a slam; it's just a reality of their capacity/production. Ballast Point sells a ton more beer, throughout the year, than CCB at a fairly similar price point.

Business is about the ledger-sheet scoreboard, not whether Beer Fanboys get pudgies over the latest limited-run BBA release.

I love Cigar City and it's brought Florida (finally) into the conversation about top-rate craft breweries. No doubt. But you're conflating craft-beer history with contemporary beer-trading. AB-InBev isn't interested in beer-as-tourism; that's probably why it spun out its theme-park division years ago.

CCB hasn't "chosen" its footprint thus far so much as it's been limited by its production capacity (see my third point above).

 

"I can't see them leaving Brown Distributing but I can see them expanding distribution some way, some how." Say what you guys want but they're going to be the only brewery InBev wants in this state for a major stake and when that day comes, I imagine it will be much like BP, much higher than everyone expected.

 

I don't disagree with that at all. But they can't expand distribution without expanding their production capacity.* So then it becomes a question of whether Joey wants to sell or would prefer to fund an expansion on his own.

*For Jai Alai. Perhaps the alliance with Brew Hub is enough if they just want to expand with Maduro, Florida Cracker and maybe Tampa-style Lager. (This is an important consideration because I suspect that non-Florida beer-store owners who would like to get CCB on their shelves want what they've heard of, which I'd bet is Jai Alai.)

 

By the way Jai Alai has been tasting the last two times I got it I wouldve thought ABinBev already bought them...

 

The last time I was in the tap room the Manager said that they are no longer brewing at Brew Hub Due to quality and consistency issues. I think they moved the brew bus business to Brew Hub to fulfill the terms of the contract.
Also I remember Wayne saying the Jai Alai was never brewed at BH just FL Cracker, Invasion, Maduro and Helles

 

And whatever happened to the every two month Cubano Espresso schedule? That is a popular seller. Growler fills have shown up here and there, but I haven't seen any cans lately.

 

Yeah they definitely didn't stick to the WOJA/CE every other month schedule laid out by their 2015 calendar last year. The 2016 calendar doesn't promise that. It pretty much says they will be released whenever.

 

There is no way that ccb will sell for,1b. Not 500m. The best valuation of the company I've seen would be 200m. And that is a stretch.

 

I've had Jai Alai out of the can and on draft about 6 different times in the past month. Each time it was great and exactly what I expected.

It isn't my first choice IPA right now but I'm lucky enough to have solid trade partners that send me Other Half/Treehouse/etc. on the regular.

 

They have brewed Jai Alai at brew hub...or at least a batch of White Oak Jai Alai. Wayne asked people on FB for their opinions in it because it was the first time that brew hub had dome Jai alai and the white oak treatment

 

Nothing wrong with taking meetings to know ones value, as well as taking expensive dinners on Inbev's tab.
Im assuming CCB will sell eventually, but not before its some jaw dropping number gets offered.

 

I knew about that... but again it was a test batch... not an all out brew.

 

I think it comes down to if Joey looks forward to going to work everyday. If he enjoys his work and his company and the people then I don't think he will ever sell. No one knows what the P&L looks like for CCB except them. If he is making a nice 6 figure income and he enjoys his work I don't see him selling. Having lots of money from a sale is great but Joey strikes me as a working kind of guy. Yes with xxx Million he can start another brewery. However, alot of the big buyouts that are happening have non competes included so that if the principle leaves the new company they cannot be in the same business for a number of years.

Right now it is all speculation. Joey has already said he is not intrerested in selling however every businessman needs to get a value on their company. Most of the time talking to to a huge player like AB is the only way to get a true valuation.

 

I would wager that if they sell, he'll move to another state and start again. Florida's beer laws are so restrictive, he may just see a way out of a declining situation and figure why not take it.

 

It's was the batch that was released in cans to distro...so that's a pretty large test batch

 

If CCB selling out to In-Bev means that we will get kegs of Hill Farmstead in the CCB tasting room more often, then that's fine by me.