Interesting. I'd imagine it would be hard for two companies to come to terms especially when, I'm assuming Hunterdon isn't/wasn't looking to sell.
I believe if Hunterdon wins then AB will just stop Elysian shipments to them. This happened recently with a brewery wanting another distributor to sell their beer in my area.
I have no idea if that's the case or not, but if it is, why would Hunterdon turn down the money? They'd rather have nothing than ~$560,000?
Because this is more than just the money. This is the reason AB is buying these brands up. They're going to get them in their distribution network, and take over shelf space, tap handles and anything else they can get their hands on. Independent distributors like Hunterdon, who deal exclusively in craft (and some will say "crafty") brands are going to be forced into a smaller and smaller market share by the behemoth.
Hunterdon is not "independent" - they are now wholly-owned by Sheehan Family Companies/L. Knife & Sons, the 6th largest distribution group in the US with distributorships from coast to coast - including AB houses in Milwaukee, eastern MA and 3 in NY state, two upstate and in Brooklyn. CEO Tim Sheehan - who once worked for AB - said of L. Knife & Sons in MA (their original and flagship division) they are "one of the largest" AB wholesalers in L. Knife about more than Budweiser and their corporate website once claimed (before a recent update): Sounds like there could be more to this story than a simple case of "Big Brewer" vs "Mom & Pop Indie Distributor"
Kind of crazy not taking the easy money. It's not like there aren't dozens of breweries entering the NJ market every year that could easily replace the lost Elysian volume. Sure Elysian is a great brewery, but I never got a sense that anyone on the East Coast was ever too excited about their beers.
I wpuld bet my last dollar that when all is said and done they end up taking the money. Maybe just posturing for a bigger payout?
Yeah, when AB bought Elysian and an article mentioned they were in the NJ market, I thought "They are?". Saw they were distributed by Hunterdon (which has statewide coverage, and any good beer store has to deal with Hunterdon in NJ if they want to keep the "good" in their description). Went to the Elysian website to check out their beers and the labels, etc., and again thought "They are?" I suppose I just don't pay much attention to the "bomber" shelves...
Yeah, it can often take more than a couple of months to reflect such distribution changes on the web. That's true with the Beechwood portfolio and some import lines they've 'recently' added in the past year or two.
We see a bunch of their things here in PA. I actually don't mind their Split Shot (I think it's called) and they've got one of two pumpkin beers I've ever tasted AND enjoyed. Not saying their entire lineup is solid or I'd drink them nonstop but they've got a few decent to better beers IMO.
They are looking for more money...they are disputing that 5.5x 12mo gross profit constitutes fair market value for elysian's brand, so they are trying to get a bigger check...if AB "wins" the lawsuit they will still be paying hunterdon the 560k, so AB just trying to say they shouldn't be paying more (partially by citing the blue point example where they only paid 4.7x 12mo gross profit).
