Boston Beer Company & Dogfish Head Brewery Are Merging

Discussion in 'Beer News' started by Todd, May 9, 2019.

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  1. Todd

    Todd Founder (13,254) Aug 23, 1996 Finland
    Staff Super Mod Pooh-Bah Society Trader

    Jim and Sam wanted me to share this message with all of you. They're both big fans of BeerAdvocate, have supported us over the decades, and at this point Jason and I consider them good friends. So sending a letter to our community meant a lot us.

    I was definitely shocked when Sam and I talked about this earlier today, but a merger makes complete sense; as explained by the two of them below. Cheers to their combined success!

    ---

    Hello BeerAdvocate Community,

    We are announcing exciting news today and wanted you to hear it from us first. Boston Beer and Dogfish Head are coming together to create the most dynamic indie craft-beer company of the 21st century.

    We are bringing together two of America’s pioneering and award-winning independent craft breweries–with the industry’s best collection of brewing talent and a dynamic portfolio of craft and beyond beer brands–to position our company for success in an ever-growing and ever-changing world of brewing.

    We’ve known each other for decades and have admired what both our teams have been able to accomplish. We’ve dedicated not only our careers, but our lives, to brewing delicious and interesting beers and being active agents for positive change in our communities. Just as important as our shared passion for brewing is our commitment to championing and preserving the independent, American craft movement.

    Between us, we have more than half a century of brewing experience under our belts. We’ve seen dramatic transformations in our industry, especially in the last decade. There’s been quite a bit of consolidation and an attack on transparency as the global mega brewers started buying regional brewers and marketing them as independent and local.



    Any company not looking at radical opportunities in a competitive industry will go the way of the typewriter. To be able to compete and continue to grow, we realized that we have to do things differently. Our merger is different.

    By joining forces we’ll be able to successfully compete while retaining our position and leadership within the indie craft market, alongside our 7500-ish fellow American small brewers. We’re creating a uniquely robust craft beer company, with award-winning brewing talent and a shared culture of innovation. Oh, and we should put this into context. Those larger international beer conglomerates are still more than 50x our size and our combined company’s volume will represent less than 2% of the beer sold in the U.S. We are small compared to these Goliaths but together we are heavy.

    Together we have championed the values of indie craft brewers for many decades. We have stood shoulder-to-shoulder in many of the efforts that have helped further our industry, from the early days of the Institute for Brewing Studies, the creation of the Brewers Association, the craft beer definition and the Independent Brewer seal, we’ve advocated for indie breweries of all sizes. Dogfish Head has sponsored and promoted those values through events like the Extreme Beer Fest, SAVOR, Hill Climbs, and has raised hundreds of thousands of dollars hosting events for and with craft brewers’ guilds in many states and for our national trade organization the Brewers Association. Boston Beer has opened its warehouse to provide hops to hundreds of brewers who were unable to get them during the hop shortage a decade ago, given loans to over 50 up and coming craft breweries, and provided coaching and counseling to hundreds more through the Brewing the American Dream Program. We will continue to work for the success of the indie craft brewing movement, now with a stronger, unified voice.

    We will grow faster and stronger together and be among the winners in the long-term with the strongest portfolio of high-end craft and beyond beer brands in the industry–a powerful combination of lagers, IPAs, sours, hard seltzer, spirits, and hard teas–and enhanced distribution strength, top-ranked sales capabilities, and two founders that remain at the helm.

    Even more important is the fact that we share a deep culture shaped by innovation, an obsession with quality, values that span our communities and our co-workers, and we push boundaries while having fun doing what we love every day.

    We first had a chance to work closely together back in 2011 when we collaborated and brewed SAVOR Flowers, a one-time release for attendees of the SAVOR Craft Beer and Food Tasting in Washington D.C. Since then, we’ve worked closely as Beer Association Board members, alongside other peers to champion the indie craft community, climbed the Capitol steps in DC to fight for legislation, and over beers at the Great American Beer Festival or at a Brewers Association meeting we’d chat informally about working together in other ways. At the Extreme Beer Fest in Boston earlier this year, those conversations took on a new reality.

    Boston Beer and Dogfish Head have tested the boundaries of what great beer can be and together with our talented co-workers, the best teams in the business, we will write the next chapter in American brewing.

    We are creating a company that will continue to push forward to drive the next generation of beer innovation and keep powering us to defy convention. We look forward to what we can accomplish together, and what beers we can brew for you.

    Cheers & Namaste!

    Jim Koch & Sam Calagione
     
    mfuchs, stevesbeer, jettjon and 56 others like this.
  2. NeroFiddled

    NeroFiddled Grand High Pooh-Bah (7,122) Jul 8, 2002 Pennsylvania
    Pooh-Bah Society Trader

    I'm excited if this helps Boston Beer Co.! I can imagine it moving them in a more forward direction. As for Dogfish, I'm not sure, but whatever, I trust Sam.

    It seems to me like Sam wrote this but... Scraaaaatch... "Any company not looking at radical opportunities in a competitive industry will go the way of the typewriter"? I thought DFH was all about "analog" and not digital?

    Fingers crossed that this won't turn out like the Tabernash / Left Hand merger as I miss Tabernash.
     
    #2 NeroFiddled, May 9, 2019
    Last edited: May 9, 2019
  3. AZBeerDude72

    AZBeerDude72 Initiate (0) Jun 10, 2016 Arizona

    Wow, in another post I said maybe SA should call Brewdog (was joking) and then read this. I am excited for them both, combined this could be very cool. I just hope they listen to their market going forward. I am eager to see what new things come out, cheers and much success.
     
  4. jasonmason

    jasonmason Zealot (658) Oct 6, 2004 California
    Trader

    Never though I'd see DFH be anything other than independent. Not really sure how I feel about this, since SA certainly hasn't seemed to me to be anywhere near DFH levels of craft-ness for years.

    I mean, I wish them the best, but...wow.
     
    stevesbeer, jwc215, 66jzmstr and 10 others like this.
  5. socon67

    socon67 Grand Pooh-Bah (3,611) Jun 18, 2010 New York
    Pooh-Bah Society

    I think both companies can use this opportunity to find new ways to move their brands forward. The industry has gotten so much more competitive, they need to look at ways to retain their advantage. It will be interesting to see where this goes.
     
  6. mooseo

    mooseo Pundit (940) Aug 11, 2008 Pennsylvania

    Excellent news, this merger makes sense all around and is a smart business decision. Keep innovating and offer the public new exciting beers.
     
  7. Chuckletheturtle

    Chuckletheturtle Crusader (453) Dec 9, 2013 Delaware

    Trust Sam’s judgement is my take. He potential has not yet been reached. Go Sam Go!
     
    JLaw55, DISKORD and craigo19 like this.
  8. NickTheGreat

    NickTheGreat Maven (1,336) Oct 28, 2010 Iowa
    Society Trader

    I'm shocked at this. I guess I'd rather see this than either of them sell to InBev. I guess.
     
    mfuchs, gr8ful, DanielAron and 25 others like this.
  9. sulldaddy

    sulldaddy Grand Pooh-Bah (4,930) Apr 6, 2003 Connecticut
    Super Mod Pooh-Bah Society Trader

    I am curious to see how this plays out. The craft beer world has gotten hyper local IMO and there is a drive to try the next new thing over reliable brews. I also see mid sized regionals are struggling.
    I know that both breweries make excellent beers, but when was the last time I bought something from DFH? Quite a while ago. SA I will buy at a wedding or bar if its the only craft. I used to get both regularly....like 12 years ago.
    I hope this works out and think both are very good businessmen, so they must have thia figured out. Im just not sure it gets me back into the fold as a regular purchaser.

    Good luck guys!!
     
  10. jesskidden

    jesskidden Grand Pooh-Bah (3,071) Aug 10, 2005 New Jersey
    Pooh-Bah Society Trader

    :astonished:Kinda late for Aprils Fools' Day, ain't it.

    Boston Beer Co.'s corporation website has more technical info on the deal.
    The Boston Beer Company and Dogfish Head Brewery to Merge...
    Cash and Stock Transaction, Valued at Approximately $300 Million

     
  11. JBogan

    JBogan Pooh-Bah (1,837) Jul 15, 2007 California
    Pooh-Bah Society Trader

    Surprising, but looking at the big picture I think it will be a beneficial move for both of them, and hopefully the consumers as well. Best wishes to everyone involved!
     
  12. AZBeerDude72

    AZBeerDude72 Initiate (0) Jun 10, 2016 Arizona

    What I wish they mentioned was news of the 1st new release from them as a team... Would love to see something soon to kick off summer....
     
  13. digitalflood

    digitalflood Maven (1,416) Feb 4, 2011 New York
    Society

    I was shocked to hear it... but it does make sense. I'm totally behind this. I love Sam Adams and I love Dogfish Head too. The brands work together and I'm excited to see where this goes. Best of luck with the new merger and cheers!
     
  14. EMH73

    EMH73 Grand Pooh-Bah (3,671) Sep 16, 2015 New York
    Pooh-Bah Society Trader

    Absolutely fascinating news. I really hope this gives them the competitive advantage to be successful moving forward. I also hope that DFH continues to create innovative beers.
     
  15. REVZEB

    REVZEB Grand High Pooh-Bah (7,080) Mar 28, 2013 Illinois
    Pooh-Bah Society Trader

    Wow just wow! Excited to see these two change the game again. Good people!
     
    chrismattlin, Doomcifer and EMH73 like this.
  16. REVZEB

    REVZEB Grand High Pooh-Bah (7,080) Mar 28, 2013 Illinois
    Pooh-Bah Society Trader

    Also, already looking forward to a Utopias like beer with DFH influences. Will be crazy!
     
    EMH73, Roguer and hopsputin like this.
  17. SABERG

    SABERG Grand Pooh-Bah (4,777) Sep 16, 2007 Massachusetts
    Pooh-Bah Society

    BBC being a publicly traded company, and DFH a private company. How does a merger work?
    or is this an acquisition, and added to BBC?
    Just curious, and wishing for the best outcome for both parties.
    Cheers
     
    mikeinportc, FBarber and Roguer like this.
  18. thedaveofbeer

    thedaveofbeer Savant (1,169) Mar 25, 2016 Massachusetts
    Trader

    It is still David vs Goliath- Just now David has upgraded his slingshot!
     
  19. edward_boumil

    edward_boumil Initiate (0) Jun 28, 2015 New York

    Woah, this is huge news.

    Now we just gotta figure out if they will now still fit the definition of "craft" or "macro" brewers!
     
  20. MNAle

    MNAle Initiate (0) Sep 6, 2011 Minnesota

    See @jesskidden's post, just above.
     
    chrismattlin and SABERG like this.
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