News Beavertown sells minority stake to Heineken

Discussion in 'Beer News & Releases' started by StJamesGate, Jun 21, 2018.

  1. StJamesGate

    StJamesGate Poo-Bah (3,901) Oct 8, 2007 New York

    The announcement from Beavertown.
    "[A]fter talking to many parties, we can announce that the minority partner we have chosen to work with to make our vision for Beaverworld a reality is Heineken."

    The Beaverworld project will boost their capacity 10x, from 45,000hl to 450,000hl.

    Q&A on the move with founder Logan Plant.
    LuskusDelph, JackHorzempa and drtth like this.
  2. drtth

    drtth Poo-Bah (3,636) Nov 25, 2007 Pennsylvania

    Interesting move for both breweries. With the benefit of hindsight it seems predictable that something like this would happen and that it would involve a brewery such as Beavertown.
  3. mc0629

    mc0629 Initiate (35) Apr 25, 2015 United Kingdom (Scotland)

    A sad day, but will be interesting to see how many breweries pull out of the Extravaganza in September
  4. mc0629

    mc0629 Initiate (35) Apr 25, 2015 United Kingdom (Scotland)

    Certainly The Veil pulled out a few weeks ago on the strength of the rumours, with Cloudwater pulling out today. Could be Wicked Weed all over again
  5. JackHorzempa

    JackHorzempa Poo-Bah (3,648) Dec 15, 2005 Pennsylvania

    I found this part to be interesting from the Beavertown discussion:

    “We then started looking at Private Equity which initially looked solid. However, the more we looked at the offers it became clear that it was only an option for the short to medium term. Private Equity groups offered the cash but across the board Private Equity seemed to be driven by maximising return on investment ASAP. Investors from these financial houses are not in it for the long run, or for the love of the product or industry they are investing in. They don’t care for the nuances and delicacies of your business. They want money in and money out x 3 as fast as possible.”

    There are a number of US craft breweries that are now ‘owned’ by Private Equity and we will see how that works out for them.


  6. Oktoberfiesta

    Oktoberfiesta Aspirant (247) Nov 16, 2013 New Mexico

    Why can't you just be happy being small or regional? 'Taking over the world' mentality will be our downfall.

    A stake is still a stake. They want to push their beer so much that they're willing to push out the smaller local players in other regions.

    I'm glad their goal was realized but it's times like these, we move onto the next player who really needs our help. Even though I've never had their beers, I don't exactly support what's going on here.
  7. JackHorzempa

    JackHorzempa Poo-Bah (3,648) Dec 15, 2005 Pennsylvania

    My read was that they just want to serve demand. There are customers that want to drink their beers and they are presently having difficulty meeting demand.
    Beavertown wants to sell beer in the UK. Not quite a world domination thing.

  8. Oktoberfiesta

    Oktoberfiesta Aspirant (247) Nov 16, 2013 New Mexico

    That announcement is a bit sad to me. It reads like one thing and then they do something totally different. Money driven hypocrites. Doesn't matter where on the globe they are, they all say the same thing.

    Things won't change. We're still independent. Blah blah blah. No matter how they say it, a 1/3rd of every dollar spent on their products will be funneled back to big beer. The fact they want to be on every street corner knocking down the true little guys makes it seem they have already lost their initial vision. *One third is used as an example percentage.

    Don't write 15 paragraphs and treat us like we're dumb. We've seen this song and dance now for years. It's old and it's disparaging to your real customers.
  9. distantmantra

    distantmantra Meyvn (1,010) May 23, 2011 Washington

    I've had their beers in multiple European countries. This isn't just a UK thing.
  10. Ahonky

    Ahonky Initiate (123) Feb 13, 2018 New York

    Easy for the guy whose only job in the situation is to fill his fat face with beer. The rest of the world purchases, consumes, rinse repeat, has kids, buys a home, has more kids, needs a bigger home. Its called capitalism - and this small/local beer mentality runs rampant among people who seemingly don't care if they otherwise purchase their underwear at Target and their cars from Japan.
  11. Hanglow

    Hanglow Crusader (747) Feb 18, 2012 United Kingdom (Scotland)

    Can't say I'm bothered either way on this, I don't have any personal love of Beavertown although they certainly make nice beer. Heineken have a rather poor estate of pubs imo, so if Beavertown beers find there way into them then I guess that will be an improvement. But they also don't have the best rep regarding their conduct paying for their beers to get put in other pubs, And the likes of deuchars are in a sad state after they chase volume and cheapness

    I see the brewpooches are mewling at this news and saying they won't stock Beavertown now, bit funny given they sold a minority stake to private equity.
  12. drtth

    drtth Poo-Bah (3,636) Nov 25, 2007 Pennsylvania

    Got a pointer to where you saw that? Like to read it but so far googling hasn't gotten me anywhere.
  13. JamFuel

    JamFuel Poo-Bah (2,735) Mar 26, 2009 Sweden

    That is why I refuse to give Brewdog any money, they are hypocrites.
    Malt_Man and Hanglow like this.
  14. Oktoberfiesta

    Oktoberfiesta Aspirant (247) Nov 16, 2013 New Mexico

    Twitter search beavertown. There's a shop that said they won't stock their items anymore. They've been pretty active responding to Twitter comments. Their Fb post has 600 comments.
  15. drtth

    drtth Poo-Bah (3,636) Nov 25, 2007 Pennsylvania

    Thanks. Can't do that though. Don't use Twitter or Facebook.
    WhiteHart likes this.
  16. Ahonky

    Ahonky Initiate (123) Feb 13, 2018 New York

    Beavertown beers arrived in NY this year with ridiculous price points and no reputation to match. No matter the style, the beers are 16.99 a 4-pk.

    Fuck off. Let Heineken sort them out. Btw, Heineken has done nothing but help Lagunitas.
  17. BayAreaJoe

    BayAreaJoe Zealot (573) Nov 23, 2017 California

    Glad I'm not the only one a little taken aback by the instant, burn-it-all-down outrage. A lot of cause-confused warriors out there, especially in beer apparently.
    brutalfarce and Ahonky like this.
  18. Oktoberfiesta

    Oktoberfiesta Aspirant (247) Nov 16, 2013 New Mexico

    Don't have an account either. But one can still do keyword searches w/o an account.

    About the fifth result for me is from BD. Very brave attitude considering their recent past. They act like people don't remember or care. It's why it's important to call these people out.

    So I have to be all in to have an opinion? Gotcha.

    I love beer. I hate hypocrites. These press releases are the same song and dance. I hold beer more closely to my chest than where my car comes from or if I happen to eat at a chain burger joint. It is beer advocate after all. The day we can't call out the crap about beer on beer advocate, is the day big beer wins.
  19. drtth

    drtth Poo-Bah (3,636) Nov 25, 2007 Pennsylvania

  20. meefmoff

    meefmoff Zealot (533) Jul 6, 2014 Massachusetts

    I'm not familiar with the brewery but I am happy that "Beaverworld" is now apparently a thing that will exist.
  21. Hanglow

    Hanglow Crusader (747) Feb 18, 2012 United Kingdom (Scotland)

    James watt tweeted that, you'll have to search twatter im on my phone and can't see how to make a link

    Edit- see that's been dealt with
    To be fair to them their core range at least are decent enough value compared to others here . I suspect, if I was being cynical, an enterprising importer jacked up the prices based on the led Zeppelin connection
    drtth likes this.
  22. donspublic

    donspublic Poo-Bah (1,588) Aug 4, 2014 Texas
    Premium Trader

    I know them only thru listening to the GBH podcast. I don't judge these places anymore, I am not in their shoes. If I could tell you how many times I said "I will never do this because...." and then had to eat those words because of life issues.... I wish them the best, and I will say that Heineken's purchase of Lagunitas has done nothing to curb my purchases of their one hitters and Sumpin' Easy.
    JackHorzempa, meanmutt and drtth like this.
  23. trsC

    trsC Initiate (56) May 5, 2013 Spain

    I'm not disagreeing with you that at that price it will be hard to sell, but the main reason you don't see European/UK hops in the States, is that the prices for craft beer here in Europe are much higher. For example, 33cl cans of Beavertown IPAs go for about 4 euros in Spain. I can't speak to what they cost in the UK, but I wouldn't be surprised if it's even higher than that.
    THANAT0PSIS and beertunes like this.
  24. Snowcrash000

    Snowcrash000 Savant (959) Oct 4, 2017 Germany

    That's because they are imports in Spain though. Imports will naturally always be more expensive than local beer due to the higher cost of importing (transport, taxes, etc.). Their standard releases average 3€ in the UK (2.50-2-75GBP). Are Basqueland or Garage beers as expensive in Spain as European Imports? I doubt it, same with Germany, really. UK or Spanish beers average a little above 4€ here, while German craft beer averages more along the lines of slightly less than 3€.
    #24 Snowcrash000, Jun 23, 2018
    Last edited: Jun 23, 2018
    JackHorzempa and drtth like this.
  25. jesskidden

    jesskidden Meyvn (1,335) Aug 10, 2005 New Jersey

    The Hop Growers of America 2017 Statistical Report shows (pg 24) that the US imported 12.7 million pounds of hops, mostly from Europe, with Germany supplying about 2/3's of the total and with the UK in third place (close to #2 Australia) accounting for 1.1m lbs.
    #25 jesskidden, Jun 23, 2018
    Last edited: Jun 23, 2018
  26. trsC

    trsC Initiate (56) May 5, 2013 Spain

    Sorry, I mean hoppy beers. And as you know, most the hops in fashionable IPAs right now are not grown in Europe.
  27. trsC

    trsC Initiate (56) May 5, 2013 Spain

    They're imports, yes, but it's still the ECM (for now) and so you're just paying transport fees. 2.50GBP = $3.30 and so that would be about a $20 6-pack of 33cl cans in the States. Very few beers reach that level of price in the States, outside of special releases and buzz-hazy breweries. As you said, those prices are for "standard" IPAs. Beavertown is also one of the cheaper craft breweries in the UK. The Kernel beers are usually 3-5GBP for a 33cl bottle and if you find a "NEIPA" style beer, it's more.

    In terms of Spanish craft, you won't find much below EUR2.50. Garage Beers, their IPAs at least, will run you around 5-6 euros a can (50cl), or basically higher than anything produced by Tree House or Trillium.
    THANAT0PSIS likes this.
  28. mc0629

    mc0629 Initiate (35) Apr 25, 2015 United Kingdom (Scotland)

    Yeah, in the UK for higher quality hops like Cloudwater and Verdant, you’re looking at around £6-8 a can, or equivalent $10. Beavertown is rightly way down at about £3 a can, but isn’t anywhere near the same quality
  29. Snowcrash000

    Snowcrash000 Savant (959) Oct 4, 2017 Germany

    You can order Cloudwater cans from their online shop for between 3.50 and 5.50 quid, and that's for the large cans. Sure, 5.50 quid is still a lot for a can, but Cloudwater are in a league of their own, after all. Too bad they only deliver within the UK.
    #29 Snowcrash000, Jun 25, 2018
    Last edited: Jun 25, 2018
  30. Ahonky

    Ahonky Initiate (123) Feb 13, 2018 New York

    I misspoke about this brand. I was mixing it up with Paradox Brewing which has a beer called Beaver
  31. mc0629

    mc0629 Initiate (35) Apr 25, 2015 United Kingdom (Scotland)

    This is where trading comes into play!
  32. ManBearPat

    ManBearPat Devotee (404) Dec 2, 2014 Colorado

  33. Malt_Man

    Malt_Man Zealot (552) Jul 4, 2014 United Kingdom (England)

  34. LakesideBrewing

    LakesideBrewing Initiate (91) Dec 1, 2013 Massachusetts

  35. Hopsmid

    Hopsmid Initiate (33) Jun 27, 2018 Netherlands

    More and more UK webshops ship to European mainland.
  36. Giantspace

    Giantspace Defender (655) Dec 22, 2011 Pennsylvania


    People boycott and bad mouth small beer that "sells out". Pretty sure if you were offered a crazy large amount of $ for your company or even your home you would do it.

    The same folks are buying cars from large companies, food from evil corporations, check out what the seed companies do to small local farmers.

    Very funny hearing all the BS about beer but just keep supporting every other evil company, many are much more evil than big beer.

    I don't care who brews my beer as long as it's good and affordable.

    Are you all buying local artisan soap, clothing, food etc

    Hopsmid and Ahonky like this.
  37. Ahonky

    Ahonky Initiate (123) Feb 13, 2018 New York

    I wholeheartedly agree. Either your local/small business across the board, or you are putting on a front. Besides, all of these acquisition brands are doing well...which tells the real story
  38. oldbean

    oldbean Aspirant (270) Jun 30, 2005 Massachusetts

    Excuse me for not buying a car from the mom-and-pop car builder down the road. Because those totally exist.

    I mean really, how dumb can you get?
    aucanuck, cjgiant, kinopio and 3 others like this.
  39. Oktoberfiesta

    Oktoberfiesta Aspirant (247) Nov 16, 2013 New Mexico

    As long as I'm not judging others and screaming from the top of a building about what you have to do, say, and buy, I think it's great that people can pick and choose what they want to support and to what extent. If each of us chose one thing to be loyal to, as a whole, were better off.

    I still buy lagunitas seasonals. Yet they aren't first choice. I think my consumption/buying since their full sell is 3-4x less than before. Small strides do matter. I prefer local but will spring for some founders, Firestone, or bells without a second thought.

    Around my way we have a place called sprouts. It's much like whole foods. It's all over the Sw. Great prices on produce (lots from Mexico/CA). We also have these little mom and pop fruit/vegetable outlets that appear to also get their produce from Mexico or California. When it comes down to it, both are outsourcing their produce. Prices arE very comparable so I tend to go with the local shop.

    Locally grown hops can fetch 2-4x more than stuff bought from the local Homebrew shop. I still support the shop but I won't overspend on buying local hops. Should I say screw it, and just buy everything online for cheaper.

    I think the 'all in or F it' attitude is a detriment to society.

    Looking at cloudwater for a second. So many breweries buy their malts and grains and hops from big time producers. Should they be locally sourcing everything at every turn or, or if they don't, shut the hell up?

    I like beer and locally sources foods. Where my jeans or socks are made are a fight for a different lifetime.
  40. Nachojon

    Nachojon Disciple (374) Sep 17, 2011 Oregon

    Some of you need to take off your beer goggles and actually read the statements here that have gone and done the work for you in explaining not just the fact that the choice has been made not to work with Beavertown but, the reasoning behind that choice.

    Here, I'll open the links for you...

    Capitalism this, "you would too" that, how about doing the right thing? I mean, "it's just beer" seems to be the moral high ground on this forum so, why not just stop buying beer from assholes like Ballast Point, Goose Island, Wicked Weed, now Beavertown, Lagunitas and the list goes on... When you sell out you are them, you take on their baggage and you should face the music for it. There's plenty of beer out there, choose the shit that isn't made by facists, you'll find plenty at your pricepoint.

    Same kind of bullshit "community" that has let Melvin off the hook.
    TrillBill and Snowcrash000 like this.