OK, this is complete wild-imaginings on my part but I think it makes a lot of sense in the same way as the merger of Victory and Southern Tier did under the Artisanal Brewing Ventures moniker. I've been thinking about this for awhile. We know regional breweries are being squeezed between big beer and small local breweries. You'll recall that Fat Head's bought Troegs original brew-house for the Fat Head's expansion in 2011. http://beerstreetjournal.com/fat-heads-buys-troegs-equipment-plans-expansion/ They collaborated on an excellent, highly-rated IPA called Fat Scratch Fever https://www.beeradvocate.com/beer/profile/694/74640/ And regionally, it makes a lot of sense. Not only could they combine, but they could expand by buying the just-now-for-sale Green Flash Brewery in Virgina Beach. Heck, while I'm doing wild-imaginings; let's put them all together under Sierra Nevada and make a real powerhouse. I'm a regular consumer of beers from all three breweries so it'd make sense from my admittedly-self-interested viewpoint. I want them all to survive.
The main thing I take from this Green Flash really thought they were a lot more popular than beer drinkers think they are. What a blunder that east coast brewery was. Sounds like they are liquidating the assets to keep operations on the west coast above water. Yikes!
That is an interesting question. Are there synergies or business aspects that would warrant a move such as this? DISCLAIMER: the below discussion contains speculation!! I have little insight into Southern Tier but I know a bit about Victory. Victory a few years ago opened an expanded production brewery in Parkesburg, PA within a former Green Giant distribution warehouse. The build-out of that new facility was expensive. I was told that the two principle owners (Ron Barchet and Bill Covaleski) originally tried to obtain a loan for $40+ million but the bank would only authorize them $35 million (which is still a big chunk of change/debt load). I think it made perfect sense for Ron & Bill to sell-out to the holding company of ABV. This sell-out would relieve them of a multi-million dollar debt load plus it would provide them with millions in their wallets; a perfect win-win. Is there something like the above Victory (Ron & Bill) business situation for Fat Head & Troegs that would make a 'merger' profitable? Maybe somebody with more insight into those two businesses can provide more input here? Cheers!
It did? That one threw me - I had a lot of respect for Victory (Prima Pils and HopDevil IPA were constant case purchases of mine a decade ago or so) but none for Southern Tier, brewer of "Creme Brulee" and all sort of other flavored crap.
Nah. I like that fatheads has a relatively small distro footprint that I'm in and finding their stuff fresh is fairly easy. Seems bigger distro usually means more old stock sitting around. Having 2 week old head hunter in 3 or 4 places nearby is a nice treat when you can't even find SNPA less than 4 months old around.
Hell no, they are both regional breweries with the same distribution area. Honestly unless Fat Heads expands distro they might have negative growth numbers come next tax season. Troegs has its own challenges as well, what would merging do? I still don't think the Victory Southern Tier merger was great..maybe saved some hourly wage jobs and maybe an exec or two but I don't get it.
If it meant that Fat Heads would be distributed throughout the entire Troegs footprint then HELL YES!! I would kill for some Hop Juju and Head Hunter on shelves in Upstate NY.
Yes, I was thinking of this as an advantage along with economy of scale for raw materials, distribution, shelf space and SGA (Selling, General and Administrative Expenses).
