Boston Beer Company & Dogfish Head Brewery Are Merging

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

  1. AZBeerDude72

    AZBeerDude72 Poo-Bah (1,633) Jun 10, 2016 Arizona
    Society Trader

    I agree they are not as young but compared to SA I feel they are. I would bet if you asked people who is more hip, DFH or SA you would hear DFH. I actually like the merger, I feel they both have a lot to offer and can both achieve a new level of success in today's craft market. The key will be how they utilize this merger, if they continue business as it is and do zero new then I think its a flop, but if they head in a new direction it could be awesome. I guess I just like both companies and am excited at the potential if done right.
     
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  2. Lazhal

    Lazhal Devotee (461) Mar 13, 2011 Michigan
    Trader

    Big beer has been buying companies all over the map for quite a while now. Maybe SAM thought it was time to get in the game.

    For anyone wondering SAM stock just hit an all time high.
     
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  3. Swervine44

    Swervine44 Initiate (165) Mar 24, 2011 California

    All this makes me think about is World Wide Stout aged in Utopias barrels!
     
  4. jglenn73

    jglenn73 Initiate (70) Jul 28, 2015 New Jersey

    Can’t wait for SamHead’s 45 min IPL!
     
  5. beersampler6

    beersampler6 Meyvn (1,020) Apr 4, 2018 Michigan
    Society Trader

    Wow. Never saw this coming. I also have very fond sentimental memories of various Sam Adams brews over the many years...just always thought of them as being a pioneer smaller company who evolved into a big dog. And now scooping up Dogfish Head? Sounds like an acquisition, a way to drive some of DFH’s younger crowd (with their love of more indie, hip bottle designs and funkier beer names) towards the BBC catalog. Hope this works...
     
  6. jayrutgers

    jayrutgers Initiate (192) Oct 29, 2011 New Jersey

    ISO
     
  7. jesskidden

    jesskidden Poo-Bah (1,766) Aug 10, 2005 New Jersey
    Society

    Through its "incubator" subsidiary, Alchemy & Science, BBC bought L.A.'s Angel City Brewing in 2012 and Shmaltz's Coney Island brand in 2013.
     
  8. JLaw55

    JLaw55 Meyvn (1,319) Jul 10, 2014 Missouri
    Society

    Exactly my thoughts. It's no secret Jim was never really an IPA guy and was only pulled into pumping out a few to keep up with a brewing landscape that heavily focuses on this style. What better way to return his focus back on the beloved Boston Lager and additional non-hop bomb beers, than to let DFH handle the IPA's and hop forward experimental stuff? It's a smart move and if it makes them stronger, then I'm all for it.
     
  9. Roguer

    Roguer Poo-Bah (4,118) Mar 25, 2013 Georgia
    Moderator Society Trader

    Well, sure ... if the emphasis is less on the "hip" and more on the "er." I too see DFH as more of an older craft stalwart, with 60 minute handles not exactly attracting a lot of attention. However, compared to Sam Adams, I do think DFH comes across as hipper and more creative.
     
  10. CrimeDog

    CrimeDog Aspirant (216) Dec 31, 2015 New York

    Bottom line is all that matters to me ----- is the beer good? The beer could be made by Standard Oil or Sony....if it's good, I'm down!
     
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  11. Oktoberfiesta

    Oktoberfiesta Aspirant (262) Nov 16, 2013 New Mexico

    Other than Melvin who just entered NM, and Space Dust, 60 minute is a upper level premium priced shelf ipa. But yes. We're talking $11/six here which is a bit high for the NM market.

    A few are $6.99- 7.99. Most $8.99. And upper level is defnity 60 minute.

    Now relatively speaking, hazies range from $12 to $20. But for a shelf ipa, there is no perceived value for me out of that IPA. Now seaquench for a higher price point, I do see value. So go figure.
     
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  12. Billet

    Billet Devotee (435) Dec 17, 2013 Michigan
    Society

    I think it sounds like a great idea! Both parties are very forward thinking and yet have very little overlap in product styles. Awesome.
     
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  13. Frankinstiener

    Frankinstiener Initiate (194) Jul 28, 2009 Illinois

    Dogfish Head Punkin Ale in the Sam Adams Fall mixed 12 pack?
     
  14. johnnybgood1999

    johnnybgood1999 Disciple (330) Oct 31, 2008 Virginia

    Sam Adams hasbeen trending up for me lately. Just tried their NEIPA and it's pretty damn good. Much better priced than the 4-$6 cans and close enough for me. Their Summer Ale has had a skunk flavor in it for years that keeps me from buying it. New pack this year says the recipe has been tweaked, so i try it. It's a bit lighter and no skunk flavor. I will buy a lot now. The only thing they have done that sucks is put Sam 76 in the samplers. I will not buy them with that beer and BL in there. Please don't ruin the Fall pack with the same decision!
     
  15. JackHorzempa

    JackHorzempa Poo-Bah (4,006) Dec 15, 2005 Pennsylvania
    Society

    What!?!:astonished:

    Did you not read about the hundreds of millions that both Sam (and family) and DFH shareholders received from this deal?

    Cheers!
     
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  16. jcb7472

    jcb7472 Zealot (516) Jul 13, 2011 Florida

    Boston Lager was also my first taste of craft beer although I rarely drink any SA anymore. I do enjoy Seaquench by DFH especially living in South FL where it’s basically summer year round. Hopefully this will result in cheaper Seaquench (usually $11 a sixer) or it will be more widely available in bars & restaurants
     
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  17. hobbitz

    hobbitz Initiate (118) Jun 17, 2010 Rhode Island

    Was thinking 120 aged in utopias barrels.
     
  18. gueuzegeek

    gueuzegeek Zealot (578) Aug 11, 2003 New Jersey
    Society

    Makes GREAT sense!! I am very happy to see this! Way better to see this that either sell out, and they both bring different things to the table! Congratulations folks! Do the craft beer people proud!
     
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  19. oldbean

    oldbean Disciple (323) Jun 30, 2005 Massachusetts

    Oh sure. Just ask any 30-something white dude wearing an Under Armor polo shirt, they'll tell you.
     
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  20. donspublic

    donspublic Poo-Bah (1,690) Aug 4, 2014 Texas
    Society Trader

    Wow, was taken aback when I saw this. My first thought was DFH influence on the ales and sours, I know they just announced they wanted to take a big push in that area. And I see Boston staying more in their lager market. I think there are synergies here to be exploited that allow each party to focus on what they like. We'll see.
     
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  21. lackenhauser

    lackenhauser Poo-Bah (2,474) Dec 10, 2002 Maryland
    Society Trader

    It will be craft look at Yuengling.....
     
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  22. jvgoor3786

    jvgoor3786 Poo-Bah (1,624) May 28, 2015 Arkansas
    Society Trader

    That's a lot less than Ballast Point got from Constellation a few years ago...

    I wish them both the best. A couple of great OG breweries.
     
  23. rgordon

    rgordon Savant (930) Apr 26, 2012 North Carolina

    Or a lemon oyster/clam sour for Spring....
     
  24. VoodooBear

    VoodooBear Zealot (575) Aug 25, 2012 Puerto Rico
    Trader

    I think that's the logic Jim and Sam used to do this. SA gets an "image boost" and DFH gets the capital and business stuff from Boston Beer without having to go to the macro guys.

    That's something a lot of people forget. The craft beer industry owes a huge debt to these two guys. And they fact that they're coming together under one roof is a pretty big deal. If they decided to go that route, I trust their judgement.

    A lot of people are missing this. That Grapefruit IPA, the New England Pale Ale and that type of thing is not what Jim wants Sam Adams to be about. So having DFH take care of that end of the business while Sam Adams goes back to a smaller and more "old school" lineup makes sense. I don't know if I'm alone here but I think it would do BBC a lot of good to just go back to basics, reduce their lineup and focus on that. If they need to make the bulk of their money on Twisted Tea, Angry Orchard, DFH stuff, etc. so the Sam Adams brand can keep itself trend free I'm all for it.
     
  25. VoodooBear

    VoodooBear Zealot (575) Aug 25, 2012 Puerto Rico
    Trader

    By now we all know that Constellation grossly overpaid and lost big in that transaction. Meanwhile Jack White laughed all the way to the bank, and I can't blame him for it.
     
  26. mrmattosgood

    mrmattosgood Initiate (108) Nov 6, 2010 Liechtenstein
    Trader

    There’s no such thing as craft beer. It is, was, and will always be (mostly) dudes just trying to make millions of dollars.

    And that’s fine. Let’s stop pretending now that this shit is all about local and altruism and subverting “the man.”

    Drink whatever the hell you want.

    I did a DFH tour back in, jeez, 2013 or so and asked about going public and was told they would NEVER do that. That’s fine. People change their minds and this isn’t an indictment. DFH is “the man” now. It’s fine. It is what it is.
     
  27. Bitterbill

    Bitterbill Poo-Bah (6,565) Sep 14, 2002 Wyoming
    Society Trader

    I don't call any brewery the man until they start distributing to Wyoming. That's a ballsy move and I salute the breweries who took a chance on us.
     
  28. randylangford

    randylangford Zealot (552) Jun 11, 2008 Pennsylvania
    Trader

    I think another part of this is deal is about the explosion of hard seltzer and lower cal options. BBC is a leader in the category with Truly Seltzer. Dogfish Head had a huge success with seaquench in this category but didn't have the chain account reach to make it as big as it could have been. Now this year Dogfish Head has Slightly Mighty which is a great 95 cal IPA and the only way to make it as big as it can be is to team up with an organization with the chain account reach across that country that BBC has. BBC can see the potential in these "better for you" brands that Dogfish Head is pioneering in beer and Dogfish Head needs the reach to fulfill their potential.
     
  29. ssimpson89

    ssimpson89 Defender (614) Jul 24, 2009 Illinois

    Stay local or go big, there’s not a lot of room for the in between. You take investment $ ala Lagunitas, Founders, Ballast Point, Cigar City, and now DFH, etc or you run the risk of dying...Smuttynose, Green Flash, Alpine, Widmer, etc. There’s others where sales are down that could be next.

    It seems some are poised to be big and remain independent like Sierra Nevada, Bells & New Belgium. I suspect we’ll see a lot of future consolidation of the semi-national / regional / midsized brewers.
     
  30. VitisVinifera

    VitisVinifera Initiate (119) Feb 25, 2013 California

    late stage craft beerism
     
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  31. ssimpson89

    ssimpson89 Defender (614) Jul 24, 2009 Illinois

    It is a buyout of DFH. The term merger is used to make all the employees feel good about the deal. The reality is the shareholders of DFH get rich and Boston Beer will determine the long term fate of all of the former DFH employees. It’s capitalism.

    There are benefits for both sides. Boston Beer gets a hipper, more relevant brand to add to its portfolio and DFH gets rewarded for building a business and brand that commands the price it was paid. Win-win for parties involved. Time will tell how it shakes out for consumers. Hello $7.99 six pack of 60 minute?
    grr
     
  32. bbtkd

    bbtkd Poo-Bah (2,428) Sep 20, 2015 South Dakota
    Society Trader

    I'm looking forward to some innovation, like rum BA Merry Maker.
     
  33. TongoRad

    TongoRad Poo-Bah (2,611) Jun 3, 2004 New Jersey
    Society Trader

    Yeah, it was a "merger" with a "craft" brewery. :wink::grin:
     
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  34. JOTAS

    JOTAS Initiate (153) Jan 10, 2008 Virginia

    Not feeling warm & fuzzy about this. I’ve enjoyed both but BB kept getting bigger & adjusting what craft beer was under guidelines as a huge sponsor.

    I hope Sam, his wife & those employees are onboard for this journey. I guess at the end of the day you could be a sub of ABInBEV
     
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  35. ktr5010

    ktr5010 Disciple (350) Dec 12, 2014 Illinois
    Society Trader

    Interesting. Sam Winter Lager was the first legal beer I ever bought and have probably consumed more DFH beer than from any other brand. Hope this works out for both of them.
     
  36. chrisjws

    chrisjws Champion (823) Dec 3, 2014 California
    Trader

    These are both companies I love and without them I probably don’t fall down the craft beer rabbit hole. Surprised, but not upset at all. Keep cranking out quality accessible beer and I’ll always be a fan.
     
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  37. kojevergas

    kojevergas Poo-Bah (8,313) Aug 15, 2010 Colorado
    Trader

    Just keep Stony Brook Red on the release calendar and I'll be satisfied.

    Oh, and tend towards the Boston Beer Co. side of the pricing, obviously (I doubt this will happen).
     
  38. Oktoberfiesta

    Oktoberfiesta Aspirant (262) Nov 16, 2013 New Mexico

    Someone here mentioned SAM stock being at an all time high. Will that remain? Can both of these brands afford to lose shelf space, refocus, and stick to what they know? I think investors will expect more and more skus and experimentation. I don't see a consolidation in the works. Maybe on who's brewing the brews. They'll save money somehow but fewer dedicated skus is too pessimistic.

    We don't see AB inbev scraping a four peaks IPA in place of GI IPA. Each of their owned breweries have very similar brews. I don't see much changing. Maybe DFH gets into the spikes seltzers and ciders? I see SA doing a low cal session IPA to compete with slightly mighty. Perceived competitors and perceived choice is the name of the game.

    In the end, I feel SA will continue to struggle on their own beer branding. But they now have DFH, Whos been a nice grower on their side. Diversifying a sinking beer ship is not a bad idea.

    I think they both stay in their lanes. A Rebel IPA 12 pack is the same price as 60 minute around here. I don't see much changing. They don't want to rock the boat too much.
     
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  39. jesskidden

    jesskidden Poo-Bah (1,766) Aug 10, 2005 New Jersey
    Society

    Well, "merger" is more honest (BBC bought DFH and will eventually merge the two companies?) than the terminology used when AB has bought some small craft brewers:
    :wink:

    Well, "joining" AB and being their "partners" ("...for distribution!") hasn't done much for Widmer (or CBA's Redhook) lately...
     
  40. Tucquan

    Tucquan Poo-Bah (2,897) Oct 11, 2007 Pennsylvania
    Society Trader

    I've also been thinking Slightly Mighty could be a strong play, perhaps in 15 packs competing price wise with Founders All Day IPA
     
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