Avery Brewing Co. Announces Sale of Minority Stake (30%) to Mahou San Miguel

Discussion in 'Beer News & Releases' started by Todd, Nov 28, 2017.

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  1. Todd

    Todd Founder (6,716) Aug 23, 1996 California
    Staff Moderator Fest Crew Society Trader


    Spain’s Leading Brewer Invests in Avery Brewing Co. with Shared Values and Commitment to Quality and Long-Term Growth in Craft Beer Industry

    Boulder, Colorado, November 28, 2017 – Avery Brewing Co. has announced a partnership with Mahou San Miguel, who is coming on as a minority investor and long-term strategic partner in the brewery.

    Avery Brewing and Mahou San Miguel are excited to focus on a continued promotion of organic growth of Avery Brewing in the evolving U.S. Craft Segment. Investments will support Avery Brewing in their recognized obsession for the highest quality craft beers, innovation, distributor and retailer relationships, customer experiences, and strategic growth.

    “Dad and I decided 2 years ago that in order to fulfill our vision of the new brewery and all of Avery Brewing’s potential, it made a lot of sense to seek a partner” says Adam Avery, Founder of Avery Brewing. “At that time, we established our criteria for our perfect partner: Minority Investor, Privately Held and Family-Owned Entity, Long-Term Investment, Strategic Advantages, and Good People with Shared Values. Mahou San Miguel emphatically checked all of those boxes for us and is our ideal partner for continued growth, remaining faithful to our beers and our culture. It is with great satisfaction that we stand side by side such a respected family company with a dedicated focus on brewing and the future.”

    Eduardo Petrossi, CEO, Mahou San Miguel adds, “This new alliance, between two family companies, has been possible thanks to the passion we share for beer and tradition, and that we have similar values. We share the commitment with the communities in which we are present, our long-term vision, concern for the development and well-being of individuals and our aim of doing things right, placing the consumer always at the centre of our decisions. Avery Brewing stands out due to the excellence of its beers, recognised on numerous occasions, with a focus on tradition, but also innovation, ingenuity and creativity.”

    First Beverage Group is serving as exclusive financial advisor to Avery Brewing Co. in the transaction. The deal is expected to close in January 2018.

    About Avery Brewing Co.
    Since 1993, Avery Brewing has been committed to producing eccentric ales and lagers that defy styles and categories. Founded in Boulder, Colorado, by Adam Avery and his father Larry Avery, Avery was the 3 rd fastest growing Top 50 craft brewery in 2016. Avery continues its obsession with the perfect beer and perfect beer experience- blending Old World tradition and expertise with ingenuity, creativity and boldness. In addition to the brewery’s most emblematic brands (White Rascal, El Gose, Avery IPA, Liliko‘i Kepolo, and The Maharaja), Avery stands out with its assortment of Barrel-Aged Beers, boundary-pushing IPAs, Belgian offerings, and a steady stream of experimental beers.

    For more information, visit http://www.AveryBrewing.com

    About Mahou San Miguel
    Mahou San Miguel is a 100% Spanish-owned family-run company and Spain’s leading brewery. It has eight beer production centers, seven in Spain and one in India, three water springs with their associated bottling plants, and a team of 3,000 professionals. It has a history of over 127 years and a wide portfolio of national beers, including, among others, Mahou Cinco Estrellas, San Miguel Especial and Alhambra Reserva 1925, and also the iconic brand of mineral water Solan de Cabras. It also boasts a wide range of international beers as a result of the agreements entered into with partners such as Carlsberg and Warsteiner.

    Mahou San Miguel has been present in the US market since 2011, where its brands Mahou Cinco Estrellas and Alhambra Reserva 1925 enjoy a growing visibility and penetration, particularly in Florida. In 2014, it signed an agreement with the Craft brewer Founders Brewing, located in Grand Rapids, Michigan, in which it acquired a 30% share. Thus, it became a pioneer in Spain, by carrying out a transaction that enabled it to enter into one of the most dynamic and innovative beer markets in the world.

    For more information, visit http://www.mahou-sanmiguel.com


    More: https://www.mahou-sanmiguel.com/en-...uel-joins-north-american-brewer-avery-brewing
    DoctorZombies and AZBeerDude72 like this.
  2. jmdrpi

    jmdrpi Poo-Bah (9,007) Dec 11, 2008 Pennsylvania

    Anyone know the actual % they mean by "minority partner"?

    I assume since they don't say, that it's above the 25% Brewers Association Craft Brewer definition level?
    zid likes this.
  3. beeeeeeeeeeeer

    beeeeeeeeeeeer Initiate (47) Jul 3, 2010 Colorado

    alucard6679 and zid like this.
  4. Bitterbill

    Bitterbill Poo-Bah (8,354) Sep 14, 2002 Wyoming

    Good for Adam!
    rgordon likes this.
  5. jmdrpi

    jmdrpi Poo-Bah (9,007) Dec 11, 2008 Pennsylvania

  6. Prep8611

    Prep8611 Disciple (300) Aug 22, 2014 New Jersey

    I like Avery and will continue to drink their beers happily!
    SFACRKnight and Bitterbill like this.

    DISKORD Initiate (0) Feb 28, 2017 South Carolina

    There goes another one...

    LADEDA Disciple (352) Jul 29, 2014 Florida

    Uncle Jacob can buy new teeth. Bite me again, Big Jake.
    bbtkd likes this.
  9. MNAle

    MNAle Poo-Bah (2,412) Sep 6, 2011 Minnesota

    Another hit to the ol' craft beer growth charts at the Brewers Association!

    (Which, at this point, is of decreasing usefulness in measuring the market...)
    alucard6679, sharpski, Ranbot and 3 others like this.
  10. jbakajust1

    jbakajust1 Crusader (777) Aug 25, 2009 Oregon

    Although, according to the Brewers Association, this is no longer a Craft Brewery, it is not owned by a beer conglomerate seeking to destroy Craft Beer. I see no issue with continuing to drink their beers.
  11. mklisz

    mklisz Meyvn (1,177) Dec 31, 2010 New Hampshire
    Society Trader

    Will Avery still be pouring at EBF LA in December and EBF Boston in February?
    BeerPugz and PA-Michigander like this.
  12. zid

    zid Poo-Bah (1,834) Feb 15, 2010 New York
    Society Trader

    Hmmm. I wonder what the small craft-inspired Spanish breweries privately think about Founders' launch in Spain.
    #12 zid, Nov 28, 2017
    Last edited: Nov 28, 2017
    Strangestbrewer likes this.
  13. DavidHume

    DavidHume Zealot (592) Mar 25, 2013 Virginia

    Tin-foil hat game is strong...
    MissFeisty and Strangestbrewer like this.
  14. jbakajust1

    jbakajust1 Crusader (777) Aug 25, 2009 Oregon

    Probably the same thing that all the small Craft Breweries in the Carolinas think about New Belgium and SN dropping into their playground... At some level every large brewery, whether independently owned or not, is a threat to the smaller guys. And then the smaller guys become a threat to the big guys as they crank out new and innovative beers and the flagships of the 80s struggle to keep a following.

    When ever one of these acquisitions happen I, personally, look at who purchased them. Firestone Walker and Boulevard owned 100% by Duvel Moortgat... that is an independent non-craft brewery that owns these well know Craft favorites. Hop Valley, nope, Miller/Coors. Not sure why we are all okay with FW and not Avery.
    alucard6679 likes this.
  15. jbakajust1

    jbakajust1 Crusader (777) Aug 25, 2009 Oregon

    Did I miss something? Does this Spanish brewery knock out Craft in its area, if so please enlighten me (legit, not a snarky comment), as I don't know anything about them except what the press release above says.
    #15 jbakajust1, Nov 28, 2017
    Last edited: Nov 28, 2017
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  16. jesskidden

    jesskidden Poo-Bah (2,544) Aug 10, 2005 New Jersey
    Society Trader

    Duvel Moortgat is considered "Craft" by the Brewers Association - listed at #6 for the 2016 Rankings.

    "We" ? If you're a member of the Brewers Association or, at least, base your opinion on their definition, it's San Miguel Mahou's yearly barrelage that eliminates them from being "Craft".
  17. jbakajust1

    jbakajust1 Crusader (777) Aug 25, 2009 Oregon

    Thanks, that is good to know. Was not aware that the BA had applied the Craft moniker to older European breweries that weren't part of the Craft Beer movement in the states or an outflow of the movement in other countries. Learn something new every day.
  18. iebforever

    iebforever Initiate (61) Jan 19, 2009 California

    I don't have a problem with Firestone being part of Moortgat (Duvel, etc.) or Boulevard or Ommegang. They didn't sell their brewery, they formed a partnership. They have a stake in the larger company that includes all of those brands. They haven't engaged in any of the predatory practices that ABInbev and others have. If this Spanish brewery is only purchasing a minority stake in Avery, it's clear that Avery continues to have control over their enterprise.
  19. BigJim5021

    BigJim5021 Zealot (508) Sep 2, 2007 Indiana

    They must've been busy working out this deal considering we just got Avery back in the state last week and the first shipment was 4,5 and 6 month old IPAs.
  20. Oktoberfiesta

    Oktoberfiesta Aspirant (275) Nov 16, 2013 New Mexico

    They've been in NM for a year or two now. I rarely grab for their beers. Too similar to all the others. And yes. Old ipas. I think this just reinforces their eagerness for international growth. The owners get a nice little pay check and get the help to grow overseas. This does little as far as us growth imho. Sucks that none of these guys want to grow organically or do it alone. Just don't lie to us. The paycheck must be really really nice. The whole company could go under and the owners are set for life.

    As far as I can see from their website, they are in 38plus states and two countries. They've probably maxed out of US growth and saw the writing on the wall. Crazy and sad reality for so many breweries. That their only chance at survival is non stop growth. Definitely not sustainable. I don't want to see places fail but it is bound to happen soon
    #20 Oktoberfiesta, Nov 28, 2017
    Last edited: Nov 28, 2017
  21. sculls65

    sculls65 Aspirant (260) Dec 15, 2008 Michigan

    Maybe this will lower their prices.
    JMN44, meanmutt, MikeWard and 2 others like this.
  22. readyski

    readyski Defender (606) Jun 4, 2005 California
    Society Trader

    Cool, this bodes well for increased access to their diabetic shock inducing stouts :stuck_out_tongue::wink:
    MikeWard, Haybeerman and Bitterbill like this.
  23. MissFeisty

    MissFeisty Initiate (0) Dec 18, 2012 California

    Good for Avery. Selling to big Beer is better than selling to private equity. And good on him for giving a piece of his check to his long tenured employees. I’ll definitely grab a bottle of theirs for the weekend.
    Bitterbill likes this.
  24. Eddiehop

    Eddiehop Defender (651) Jun 28, 2014 Texas

    Slightly dissapointed, still love Avery ... this is the new norm in craft beer ... One of many annoying trends.
  25. McFinniganOfTheFinnigans

    McFinniganOfTheFinnigans Initiate (0) Apr 20, 2017 Maine

    Maybe we'll get fresh White Rascal. Shit on the shelves right now is from February.
  26. waltari

    waltari Initiate (82) Jan 28, 2016 Georgia

    Exactly what I was thinking. I never cared of them because their price/quality ratio.
    sculls65 likes this.
  27. Haybeerman

    Haybeerman Poo-Bah (2,460) May 21, 2008 Colorado

    I'm curious to how you know this. They are big (11M+ barrels), they have expanded into other countries. Their history is similar to other large breweries we have here: https://en.wikipedia.org/wiki/Mahou-San_Miguel_Group
  28. JeremyDanner

    JeremyDanner Initiate (126) Dec 20, 2005 Missouri

    Correct. The Brewers Association made a statement around the time of our announcement that we (BLVD) were joining the Duvel Moortgat family indicating that we would retain our designation as a craft brewery. They did so because Duvel meets the tenets of a craft brewer as established by the BA. The reason that a brewery like Lagunitas (owned by family-owned Heineken) or Founders is no longer considered craft is that the production volume of their respective parent breweries exceeds the 6 million bbl cap.
  29. jbakajust1

    jbakajust1 Crusader (777) Aug 25, 2009 Oregon

  30. Urk1127

    Urk1127 Poo-Bah (2,085) Jul 2, 2014 Pennsylvania
    Society Trader

    If the beer tastes good, and the price is right, ill drink it. Theres too much semantics anymore on who owns what, and too many brewers to keep track. And i dont really care.
    matcris, alucard6679, Ranbot and 10 others like this.
  31. Haybeerman

    Haybeerman Poo-Bah (2,460) May 21, 2008 Colorado

    So if you know nothing about them, like I asked, how do you know "...it is not owned by a beer conglomerate seeking to destroy Craft Beer." as you stated in the post? I'm saying I don't know, that's why I asked you how you know that. If its just your opinion, you should state it as such.
  32. jbakajust1

    jbakajust1 Crusader (777) Aug 25, 2009 Oregon

    I was going based off of the press release:

    Appears as though I was wrong to assume that all the things stated wasn't just another brewer trying to put the proper spin on it all to look like they didn't just sell out.
  33. Haybeerman

    Haybeerman Poo-Bah (2,460) May 21, 2008 Colorado

    I don't know either way - its either gonna be business as usual, worse case scenario or somewhere in between. I guess we can just hope for the best.:confused:
  34. jbakajust1

    jbakajust1 Crusader (777) Aug 25, 2009 Oregon

    Yeah, hoping for the best. I don't drink much of their beer since there is so much amazing and fresh beer available to me. I understand the desire to solidify your financial future as a brewery owner (not much stability there). I just wish brewers that sell, join forces, etc, would be honest about it all and just say, "Yes, I sold, I got paid, feel free to not buy my beers anymore, I had to do what was best for me and my family and staff."
  35. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania

    If we project from what came out of the Founders sale of 30% to the same group I'd expect things to continue pretty well. After all 30% ownership doesn't come close to a controlling interest. So the original ownership would still be running the show in both cases.
    Haybeerman likes this.
  36. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania

    Why would you think they are lying to anyone about their reasons for selling 30%?
  37. Squire

    Squire Poo-Bah (2,803) Jul 16, 2015 Mississippi
    Society Trader

    I don't view 30% as selling out though I can understand someone being upset over who is the purchaser.
    Urk1127, Haybeerman and drtth like this.
  38. jbakajust1

    jbakajust1 Crusader (777) Aug 25, 2009 Oregon

    Not specifically aimed at Avery. My statement is aimed directly at those who sell the company and then write large articles and press releases about how they are still craft (ie, Tony saying he still smokes pot all the time so we shouldn't care about him selling 100% to Heineken). My point is that I wish brewers (in general, not Avery specifically) that sell some or all of their brewery would just be honest about the sale, how much they own, whether they are considered Craft under the BA definition, and put it on their labels/packaging/branding. If you do it, own it.
  39. MNAle

    MNAle Poo-Bah (2,412) Sep 6, 2011 Minnesota

    Well, the Brewers Association production volume cap has its limitations.

    A closer look at the numbers shows that the BA metric is not a clear dividing line between "small" and "large", since it makes no distinction between moderately small and gargantuan.

    The production volume of Mahou San Miguel (officially, a BA bad guy) is only about 3x Boston Beer Co (officially a BA good guy).

    The production volume of Heineken International is about 12x Mahou San Miguel (36x BBC), and ABInBev is about 34x Mahou San Miguel (100x BBC).

    My sources are various and may be a bit inaccurate, but I suspect close enough to make the point... Mahou San Miguel is A LOT closer to "small" than it is to ABInBev.
    SFACRKnight likes this.
  40. AZBeerDude72

    AZBeerDude72 Initiate (0) Jun 10, 2016 Arizona

    Still love Founders, and I will still love Avery.
    Dan_K, matcris, NWFLyer and 1 other person like this.
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