Enjoy Beer LLC Launches to Assist U.S. Craft Brewers

Discussion in 'Beer News' started by Todd, Apr 7, 2015.

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  1. Todd

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

    Abita Brewing Company Becomes Founding Brewery Partner

    Boston, MA—Enjoy Beer LLC is a new enterprise created to provide resources on a national scale to a select group of top independent U.S. craft brewers. Abita Brewing Company, the oldest craft brewer in the Southeast, is the company’s Founding Brewery Partner.

    Enjoy Beer partners will share their collective wisdom and resources, and those of craft industry experts, in order to bring competitive strength to their individual craft breweries in an ever more competitive marketplace. The company was created and is headed by craft brewing veteran Richard Doyle, and its investors include FFL, a private investment firm.

    According to Doyle, Enjoy Beer President and Founder, “As the craft brewing industry continues to evolve, there is enormous pressure on brewers to compete against the big breweries. Local brewers like David Blossman at Abita, have been committed to innovation and finding new opportunities to compete while ensuring the company’s independence and local roots.”

    Enjoy Beer will create partnerships with additional top craft brewers who wish to preserve their local independence, while gaining shared resources in areas such as marketing, sales, purchasing, logistics, and finance in order to compete with large-scale corporate competitors.

    “As a local brewer, I’ve always dreamed of an opportunity to help develop something like Enjoy Beer,” says David Blossman, President of Abita Beer and Board Member of Enjoy Beer. He contin- ues, “Enjoy Beer is an innovative concept that’s going to give Abita the resources and expertise we need for a successful long-term, national growth strategy, while keeping our local roots in Louisiana.”

    Adds Doyle, “Enjoy Beer will pioneer a new model in the industry, and together, we will help these independent companies compete at the next level by expanding their resources and their reach.”

    An industry veteran with nearly thirty years of experience, Richard Doyle co-founded and was the CEO of the Harpoon Brewery in Boston, Mass., before selling his interest to Harpoon employees. He is also a former Chairman of the Brewers Association.

    FFL has more than fifteen years of experience supporting growing businesses by partnering with strong management teams, providing capital and offering operational expertise. The firm, which manages more than $4.5 billion in assets, has made investments in more than 30 businesses to support their growth strategies.

    Abita Brewing, which produces 160,000 barrels annually, recently completed a three-year, $30 million state-of-the-art expansion that will increase its brewing capacity to 400,000 barrels. Cur- rently, the company produces eight year-round beers, five seasonal brews, four harvest, seven big beers, a select series, and a root beer. With products sold in 41 states, the District of Columbia, and in a limited number of foreign countries, Abita was ranked the 21st largest craft brewer in the country by the Brewers Association in 2014.

  2. Eflynnbot

    Eflynnbot Initiate (0) Feb 27, 2014 Massachusetts

    Will Enjoy Beer LLC be based out of Boston?
    charlzm likes this.
  3. ohiobeer29

    ohiobeer29 Pooh-Bah (1,675) Feb 2, 2013 Ohio

    in before stone files lawsuit :wink:
    charlzm likes this.
  4. PA-Michigander

    PA-Michigander Grand Pooh-Bah (3,248) Nov 10, 2013 Pennsylvania
    Pooh-Bah Trader

    You may be too late.
    charlzm likes this.
  5. jesskidden

    jesskidden Pooh-Bah (2,981) Aug 10, 2005 New Jersey
    Pooh-Bah Society Trader

    For those, like me, not up to date on Wall Street Jargon and read the press release and thought, "Uh, what do they do?" the Brewbound article is a bit more clear: Newly Formed Craft Consortium Enjoy Beer LLC Eyes Acquisitions, IPO

    And, another example of the fact that "employee-owned" breweries in the form of ESOPs are not immune to being bought out:
    drtth, Ranbot, wspscott and 2 others like this.
  6. Ranbot

    Ranbot Pooh-Bah (2,389) Nov 27, 2006 Pennsylvania
    Pooh-Bah Society

    So this is Craft Brew Alliance version 2.0. I'm surprised it took so long, honestly. I wonder if the beer advocates who moan over A-B's minority ownership of CBA will embrace this venture.
  7. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania
    In Memoriam

    I'm guessing they will at first until they realize that the business plan is apparently to be a holding company and buy lots of independent brands. :slight_smile:

    Edit: And naturally to make money for the wealth management firm (and their investors) that is underwriting the costs of this new venture.
    sharpski, BBThunderbolt and Ranbot like this.
  8. jesskidden

    jesskidden Pooh-Bah (2,981) Aug 10, 2005 New Jersey
    Pooh-Bah Society Trader

    Well, that was simply a merger of Redhook and Widmer Bros. - which owned a percentage of both Goose Island and Kona (forget the exact chronology). They sold their share of GI to AB and eventually bought all of Kona, but it was always a merger of breweries, with most of the executives and ownership (including AB's minority share), IIRC, coming from the two original companies.

    I'd say this is closer to KPS Capital Partners buying the US rights to Labatt, and the Genesee Brewing Co., and, later, IBU - Magic Hat, Pyramid and Portland, and forming a new company, North American Breweries. After a few years they sold the entire collection of breweries and brands to Costa-Rica's Florida Farm and Ice.
    #8 jesskidden, Apr 8, 2015
    Last edited: Apr 8, 2015
  9. beergrrl

    beergrrl Zealot (523) Dec 9, 2003 New Hampshire

    Sell your brewery to employee "owners" under a tax advantaged ESOP; retain management control because, well, because. Take proceeds and form a new entity. Wait for the statutory limit on re-involvement lapses so tax advantage remains. Buy ESOP-owned breweries back with others who have previously converter to ESOP.

    jasonmason and jesskidden like this.
  10. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,181) Dec 15, 2005 Pennsylvania
    Pooh-Bah Society

    The only word missing in that treatise is "derivatives".:wink:

    beergrrl likes this.
  11. beergrrl

    beergrrl Zealot (523) Dec 9, 2003 New Hampshire

    We're not allowed to use expletives, right?
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