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Founders Brewing Co. Announces Minority Partner, Mahou San Miguel

Discussion in 'Beer News' started by Jason, Dec 17, 2014.

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  1. Jason

    Jason Founder (0) Aug 23, 1996 Massachusetts

    GRAND RAPIDS, Mich., December 17, 2014 – Founders Brewing Co. has announced a partnership with Mahou San Miguel, who is coming on as a minority investor with 30% ownership in the brewery.

    The partnership will help Founders grow through Mahou’s international distribution network to access the emerging craft beer community around the world. Founders and Mahou are focused on long-term strategic growth, with a commitment to brand longevity and product quality. “Founders will remain Founders,” with continuity in their recipes, processes, facility and staff.

    "We knew that taking on a partner was the necessary, responsible thing to do for the future of Founders because it would open up new doors for growth as well as ensure our legacy for years to come,” said CEO and Co-Founder Mike Stevens. “We spent a long time determining who would be the best partner to help us grow Founders while staying true to our beers and our culture. Mahou shares our family values and a commitment to their communities; they also believe in the importance of long-term partnerships. We are honored to be working with a brewer that commands so much respect.”

    "Our investment in Founders is a great source of learning, innovation and transformation for Mahou San Miguel to get directly involved in the U.S. craft market,” said Javier López del Hierro, President of Mahou San Miguel. “It’s the most valuable beer market worldwide, a market that sets consumer trends, with excellent prospects for growth. Founders combines product excellence with a level of business acumen that stands out in the craft beer segment.”

    Robert W. Baird & Co. is serving as exclusive financial advisor to Founders Brewing Co. in the transaction. Greenberg Traurig is acting as the company's legal advisor. The deal is expected to close in January 2015.

    About Founders Brewing Co.
    Established in 1997 by two craft beer enthusiasts—Dave Engbers and Mike Stevens—with day jobs and a dream, Founders Brewing Co. brews complex, in-your-face ales, with huge aromatics and tons of flavor. Founders ranks among the top 30 largest craft breweries in the U.S. and is one of the fastest growing. The brewery has received numerous awards from the World Beer Cup and the Great American Beer Festival, and RateBeer and BeerAdvocate users often rate its beers among the best in the world. Located in downtown Grand Rapids, Michigan, Founders is a proud member of the Michigan Brewers Guild. For more information, visit www.foundersbrewing.com.

    About Mahou San Miguel
    100% family-owned, Mahou San Miguel has been Spain’s leading brewing company for 125 years. The company has eight brewing centers, seven in Spain and one in India, as well as two water springs and associated packaging plants, managed by a team of more than 2,500 professionals. Founded in Madrid in 1890, Mahou purchased San Miguel Brewery in 2000, followed by the incorporation of Canary Islands brand Reina in 2004 and Cervezas Alhambra in 2007. It also diversified its business with the acquisition of Solán de Cabras, a natural mineral water, in 2011. The company’s extensive national beer portfolio includes category leaders such as Mahou Cinco Estrellas, San Miguel Especial, Alhambra Reserva 1925 and San Miguel ECO, Spain’s first organic beer. The brewery also distributes a wide range of quality international beers in Spain as a result of agreements with partners such as Carlsberg and Warsteiner. Mahou San Miguel recently announced plans to develop the Mahou Beer Museum in Madrid’s historic city center to celebrate the family’s longstanding ties to Spain’s brewing culture. For more information, visit www.mahou-sanmiguel.com.

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    #1 Jason, Dec 17, 2014
  2. ncstateplaya

    ncstateplaya Savant (1,245) Nov 8, 2008 North Carolina

    Hailstorm, in 3....2....1....
     
    #2 ncstateplaya, Dec 17, 2014
    TylerKitchens, Gemini6, creepinjeeper and 2 others like this.
  3. ColonelHopslam

    ColonelHopslam Savant (1,025) Jan 22, 2014 Michigan

    sorry maryland
     
    #3 ColonelHopslam, Dec 17, 2014
    gillagorilla, DeutschesBier, EricTKole and 1 other person like this.
  4. tkdchampxi

    tkdchampxi Pooh-Bah (2,473) Oct 19, 2010 New Jersey
    Pooh-Bah

    I'm not really that excited about Founders these days anyway
     
    #4 tkdchampxi, Dec 17, 2014
    keithmurray and mlhyatt like this.
  5. JasonR1975

    JasonR1975 Initiate (0) Jun 11, 2013 Michigan
    Trader

    Wow - someone told me to watch out for news like this coming out this week in line at 4 Elf - I just assumed they were full of shit.
     
    #5 JasonR1975, Dec 17, 2014
  6. MattOC

    MattOC Pooh-Bah (2,100) Jan 13, 2013 Massachusetts
    Pooh-Bah Trader

    From Twitter, per John Craven @ BevNet:

    Founders was supposedly offered $300 million from MillerCoors to buy the whole co. according to Craft Brew News.
     
    #6 MattOC, Dec 17, 2014
    tylerstravis likes this.
  7. slevy221

    slevy221 Initiate (0) Feb 27, 2014 New Jersey

    Sorry naive ignorant beer fan here - why the negative tone? Just curious what the fear is? Do we anticipate he takes beers out of the states entirely? Isn't this just potential expansion?
     
    #7 slevy221, Dec 17, 2014
    LuskusDelph and bhollas like this.
  8. ColonelHopslam

    ColonelHopslam Savant (1,025) Jan 22, 2014 Michigan

    I would say this is simply a cash injection for the company to sustain and grow, nothing more.
     
    #8 ColonelHopslam, Dec 17, 2014
    LuskusDelph, evilcatfish, johnnybgood1999 and 11 others like this.
  9. slevy221

    slevy221 Initiate (0) Feb 27, 2014 New Jersey

    Yeah that's what I figured.

    Interesting though that MillerCoors offered $300MM for the company. Wondering how the craft scene will be impacted if bigger companies start scooping up the craft beer companies.
     
    #9 slevy221, Dec 17, 2014
    concealed likes this.
  10. jesskidden

    jesskidden Grand Pooh-Bah (3,133) Aug 10, 2005 New Jersey
    Society Pooh-Bah Trader

    #10 jesskidden, Dec 17, 2014
    billhaha, Techichi, LuskusDelph and 36 others like this.
  11. AnchorDrops

    AnchorDrops Initiate (0) May 11, 2013 Michigan

    My only concern would be if AB InBev bought Mahou San Miguel. Presumably, this partnership would bring more Founders to Europe, where apparently there is a fair amount of interest in American Craft brew. With the massive physical expansion that Founders is planning (to increase capacity), the extra capital certainly can't hurt.
     
    #11 AnchorDrops, Dec 17, 2014
    Bshaw22, creepinjeeper, EricTKole and 1 other person like this.
  12. THANAT0PSIS

    THANAT0PSIS Pooh-Bah (2,263) Aug 3, 2010 Wisconsin
    Pooh-Bah

    I assume this will be met with derision and hatred here at BA, likely by the same people currently trading for BCBS.

    I'm not a huge fan of Founders anyway, and I am disappointed in them for "selling out," but I cannot begrudge them their continued success and the doors this will open for them. I hope that, like Goose Island's premium stuff (can't say the same for the regulars), the quality doesn't suffer. This won't stop me from purchasing the Founders brews that I enjoy.

    I think the more worrisome part is if hugely successful companies like Goose Island and Founders (10 Barrel to a lesser extent) can be (at least partially) bought, are there any breweries that are immune? Are these the first few dominoes that will topple the giants of the craft industry? I wouldn't have thought GI or Founders would've needed the partnership since they seemed to be doing well enough on their own, but who knows? It's an interesting and tenuous time in the world of craft beer.

    They should probably change their, "Brewed for us," slogan, though. :wink:
     
    #12 THANAT0PSIS, Dec 17, 2014
    jrwoolsey, slevy221, Bshaw22 and 1 other person like this.
  13. tommyz

    tommyz Initiate (0) May 28, 2007 Michigan

    So, just thinking out loud, it seems they are looking at becoming a "world" Brand..And yes, the cash infusion helps...
     
    #13 tommyz, Dec 17, 2014
  14. rhartogsq

    rhartogsq Initiate (0) Jun 18, 2010 Virginia

    only a guess, but this move is gonna help them expand in Europe. Spain (Barcelona especially) is a big emerging craft beer market. While others are hitting Western, Central and Scandinavia Europe, Founders is going south. Smart business move.
     
    #14 rhartogsq, Dec 17, 2014
    HJayS and russpowell like this.
  15. ClockworkOrange

    ClockworkOrange Pooh-Bah (2,128) Feb 19, 2006 Pennsylvania
    Pooh-Bah

    Soooo, one case of Harvest Ale for all of eastern PA to grovel over next year then?
     
    #15 ClockworkOrange, Dec 17, 2014
    hillind and GreenKrusty101 like this.
  16. tommyz

    tommyz Initiate (0) May 28, 2007 Michigan

    I would think that would have been talked about...That company has been around for 125 years...
     
    #16 tommyz, Dec 17, 2014
  17. Providence

    Providence Pooh-Bah (2,640) Feb 24, 2010 Rhode Island
    Pooh-Bah Trader

    Anyone have any information on this companies' track record regarding workers rights or environmental issues? I'm certainly not saying any exist and I'm certainly not saying that a big company is more likely to exploit workers than a small mom and pop brewery, I'm just curious. I strive to have as much information on the companies I support as possible and because this company is fairly large, I wager there is a bit more accessible info out there. I'm particularly interested in any issues surrounding that facility in India as exploiting workers in India seems rather easy. Again, not making accusations and not issuing boycotts. Just curious as this type of stuff is important to me.

    Thanks in advance!
     
    #17 Providence, Dec 17, 2014
    tkdchampxi, HattedClassic, Nick_Bousquet and 1 other person like this.
  18. EnronCFO

    EnronCFO Pooh-Bah (2,021) Mar 29, 2007 Massachusetts
    Pooh-Bah

    San Miguel already has distribution deals throughout Europe with Coors, Carlsberg, etc. I assume Founders will use the same channels. Will be interesting to see how this progresses and the different route other craft brewers take to get access to Europe.
     
    #18 EnronCFO, Dec 17, 2014
    tommyz likes this.
  19. AnchorDrops

    AnchorDrops Initiate (0) May 11, 2013 Michigan

    More shelf space for those brands, bigger allocations of limited releases to stores that sell more of the parent company's brands (see recent BCBS release). I would imagine that consolidation of resources ("contract brewing") would increase. Ultimately, I could see all the other cost cutting measures that AB InBev has instituted over the past 5-10 years.
     
    #19 AnchorDrops, Dec 17, 2014
  20. tommyz

    tommyz Initiate (0) May 28, 2007 Michigan

    not really, but you can look at things here I believe http://business-humanrights.org/en/san-miguel-corporation
     
    #20 tommyz, Dec 17, 2014
    Providence likes this.
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