Molson Coors Sells Saint Archer Facilities and Taproom in San Diego to Kings & Convicts

Discussion in 'US - West' started by Todd, Jan 10, 2022.

  1. Todd

    Todd Founder (6,634) Aug 23, 1996 California
    Staff Moderator Fest Crew Society Trader

    MOLSON COORS TO CEASE OPERATIONS OF THE SAINT ARCHER BREWERY AND DISTRIBUTION OF ITS BRANDS IN RETAIL

    The company plans to sell its San Diego Brewery to Kings & Convicts Brewing Co, and remains focused on growing its craft portfolio and overall share in above premium beer

    GOLDEN, Colo., and MONTREAL, Quebec – Molson Coors Beverage Company (NYSE: TAP; TSX: TPX) today announced that it will cease operations of the Saint Archer brewery and remove Saint Archer brands from the retail marketplace. The company also plans to sell its brewery and taproom located in greater San Diego, California to Kings & Convicts Brewing Company, a San Diego-headquartered craft brewery.

    “The Saint Archer team has built a distinct brand that has a very loyal following in Southern California. Unfortunately, the overall business has struggled to grow despite investing significant resources behind its production and commercialization,” said Paul Verdu, Vice President of Tenth and Blake, Molson Coors craft division. “We’ll maintain ownership of the Saint Archer brand as we determine the best long-term plan and remain focused on growing our regional breweries that continue outpacing home-market competitors.”

    The sale to Kings & Convicts includes a brewery located in the Miramar neighborhood of San Diego and all its physical assets as well as the 1,200 square foot taproom in the coastal city of Leucadia in North County San Diego. The Miramar brewery will effectively become the new operating headquarters for Kings & Convicts Brewing Company, where the company will begin brewing its own year-round core portfolio and specialty releases, small batch beers for Ballast Point Brewing Co., and brand-new craft beverage products.

    Kings & Convicts intends to retain all the current operations and tasting room team members at both locations.

    “We are excited for the acquisition of the brewing facility and taprooms, as well as the talented production and taproom staff,” said Kings & Convicts co-owner and CEO, Brendan Watters. “We wish Molson Coors the best with the Saint Archer brand.”

    Regional craft brands remain an important priority for Molson Coors as the company aims to grow its share of the Above Premium beer segment.

    About Molson Coors
    For over two centuries Molson Coors has been brewing beverages that unite people to celebrate all life’s moments. From Coors Light, Miller Lite, Molson Canadian, Carling, and Staropramen to Coors Banquet, Blue Moon Belgian White, Blue Moon LightSky, Vizzy, Leinenkugel’s Summer Shandy, Creemore Springs, Hop Valley and more, Molson Coors produces many beloved and iconic beer brands.

    While the company’s history is rooted in beer, Molson Coors offers a modern portfolio that expands beyond the beer aisle as well. Our Environmental, Social and Governance (ESG) strategy is focused on People and Planet with a strong commitment to raising industry standards and leaving a positive imprint on our employees, consumers, communities, and the environment. To learn more about Molson Coors Beverage Company, visit molsoncoors.com, MolsonCoorsOurImprint.com or on Twitter through @MolsonCoors.

    About Kings & Convicts Brewing Co.
    Kings & Convicts is a privately held company headquartered in San Diego, CA, and Highwood, IL, in the North Shore of Chicago. Conceived by an Englishman and an Aussie, Kings & Convicts started brewing for the public in 2017 and was built on the freedom of anti-authority and the spirit of fellowship. They brew ales and lagers inspired by the tales of convicts, royalty, and the undercurrent of American gangsters.

    Every beer tells a story. Officially moving headquarters and brewing operations to San Diego in 2020 after its purchase of Ballast Point, Kings & Convicts immediately began placing an emphasis on engaging the local community and reestablishing a connection to the birthplace of Ballast Point through the support of local programs and activations, charitable endeavors, and live sports team sponsorships — both through Ballast Point and now through its own individual brand. In 2021, Kings & Convicts became the official 2021-22 craft beer sponsor of the NLL San Diego Seals. For more information, follow along on Instagram and Facebook and visit www.kingsandconvicts.com.

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  2. Reidrover

    Reidrover Poo-Bah (4,599) Jan 14, 2003 Oregon
    Society

    Bad news. A cautionary tale about big beer. If one were needed.
    I take this King's and Convicts lot with a huge mountain of salt.
    Liked most of the St. Archer beers
     
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  3. jesskidden

    jesskidden Poo-Bah (2,429) Aug 10, 2005 New Jersey
    Society Trader

    Yeah, but for who? The owners of Saint Archer - and Ballast Point before that - made out OK, it was Molson Coors and Constellation that took the financial hit.

    Not hard to assume employees of some of the bought craft brewers suffered some financial and life disruption, too, even though the initial common refrain is the same as above's "intends to retain all the current operations and tasting room team members". Left unsaid is often "until we can get in there and start cutting to pay for the purchase...".

    Some craft brewers without a succession plan and/or flat or decreasing sales might look at such events, get one of those buy-out offers and think, "Better get out when the gettin's good".

    Damn, even the "employee-owners" of New Belgium thought that.
     
  4. unlikelyspiderperson

    unlikelyspiderperson Poo-Bah (2,040) Mar 12, 2013 California
    Society Trader

    So is kings and convicts going to be brewing kings and convicts branded beers there (weren't they based out of Chicagoland? Moved to SD after buying ballast point?) and ballast point and St Archer is a dead brand now?
     
  5. weaverr

    weaverr Initiate (196) Jun 10, 2008 California

    I don’t know if there was ever really Kings and Convicts branded beer outside of a small pub in the Chicago area. I doubt there ever will be, it’s clearly a shell for acquisitions of fire sale properties at this point.

    I’m not sure I understand the business rationale behind owning two of the largest brewing operations in a single county, but I’m no mega beer conglomerate.
     
  6. unlikelyspiderperson

    unlikelyspiderperson Poo-Bah (2,040) Mar 12, 2013 California
    Society Trader

    Ya it's a very odd business with a very odd strategy so far
     
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  7. jesskidden

    jesskidden Poo-Bah (2,429) Aug 10, 2005 New Jersey
    Society Trader


    That's what it sounds like on their website's NEWS page.
    https://kingsandconvicts.com/beers/
     
  8. ryno09

    ryno09 Aspirant (209) May 1, 2010 California

    No more "big beer" in San Diego.
     
  9. jesskidden

    jesskidden Poo-Bah (2,429) Aug 10, 2005 New Jersey
    Society Trader

    The Vinepair story on the deal quotes the original owner of Saint Archer via the Brewbound article (behind a paywall):
    "Devasted", huh? :rolling_eyes: What did he think Molson Coors was going to do with the brand if it failed in the marketplace? Wonder if the original purchase included a royalty payment "per barrel sold" to him? It's been part of other brewery purchases in the past.
    Yeah, 2 years old when sold.
     
    #9 jesskidden, Jan 11, 2022
    Last edited: Jan 11, 2022
  10. weaverr

    weaverr Initiate (196) Jun 10, 2008 California

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  11. Resistance88

    Resistance88 Disciple (366) Apr 9, 2015 California
    Trader

    I never bought saint archer because their labeling looked like nothing good was inside the can.
     
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  12. HouseofWortship

    HouseofWortship Meyvn (1,326) May 3, 2016 Illinois
    Society Trader

    If that's the case, maybe that is their strategy. Turn these brands into proprietary brands for big box stores. Make St. Archer into something like a Costco house brand.
     
  13. unlikelyspiderperson

    unlikelyspiderperson Poo-Bah (2,040) Mar 12, 2013 California
    Society Trader

    Their Mosaic IPA was super good before the buy out. Used to be a staple of mine. But ya, their packaging was incredibly uninspiring
     
  14. ravens_wood

    ravens_wood Initiate (52) Dec 21, 2017 Illinois

    Neither does anyone in Chicago. I had seen never any of their cans at packaged stores.

    Plus their taproom is nestled in impossible to get to suburban cake eater area.
     
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  15. PatKorn

    PatKorn Initiate (184) Aug 30, 2007 Oregon

    Cake eater? Is that a chicago term?
     
  16. jesskidden

    jesskidden Poo-Bah (2,429) Aug 10, 2005 New Jersey
    Society Trader

    Kings & Convicts didn't buy the Saint Archer brand, Molson Coors is keeping it even though they've stopped making it (for now).

    K&C only bought the former Saint Archer brewery and tap room.
     
  17. HouseofWortship

    HouseofWortship Meyvn (1,326) May 3, 2016 Illinois
    Society Trader

    Thank you for clarifying as I totally misread that.

    I’m convinced you are a bot and the singularity is upon us.
     
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  18. kodt

    kodt Defender (660) Mar 6, 2013 Illinois
    Trader

    Eh the North Shore "cake eaters" as you say, think Highwood is a "rough area" as it is ~50% Hispanic and the median income there is like $65k, vs $160-200k in the surrounding burbs. But yeah, it is surrounded by very wealthy areas. And no-one in Chicago has really ever tried their beer or heard of them until they bought Ballast Point.
     
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  19. pixiesfanyo

    pixiesfanyo Initiate (95) Oct 25, 2010 California

    I know Saint Archer was a pump and sell scheme but I really enjoyed their beers at the price point. Especially in a former life as a bar owner.
     
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  20. beershrine

    beershrine Aspirant (251) May 29, 2004 Idaho

    It's all about marketing no mega brewer is going to hang around for small profits they want the next big hit.
     
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  21. erichxedge

    erichxedge Initiate (125) Nov 29, 2009 California

    Mosaic IPA was one of my favorite beers of all time. Bummer to see them go. Was a total fanboy when this brewery started for the way they marketed everything. Got to work with them a ton over the years. Rest in peace