New Belgium Brewing announces sale to Lion Little World Beverages (Kirin Holdings Company Limited)

Discussion in 'Beer News & Releases' started by ypsifly, Nov 19, 2019.

  1. ypsifly

    ypsifly Meyvn (1,067) Sep 22, 2004 Michigan

    Australia's Lion Little World Beverages to take over by the end of the year. Over 300 employees will get $100,000 pay outs.
    https://www.denverpost.com/2019/11/19/new-belgium-brewing-sale-kirin/
     
  2. alert

    alert Initiate (30) Aug 20, 2019 Georgia

    Damn, another one bites the dust.
     
  3. ypsifly

    ypsifly Meyvn (1,067) Sep 22, 2004 Michigan

    2020 in the beer industry is going to be like Willy Wonka's psychedelic boat ride.
     
  4. socon67

    socon67 Poo-Bah (1,844) Jun 18, 2010 New York

    Bummer than it is no longer employee owned, but can't say I'm surprised. The #4 domestic craft brewery with production and distribution on both coasts is a highly desirable purchase.
     
    deanzaZZR, rgordon, Bobbi862 and 3 others like this.
  5. hottenot

    hottenot Aspirant (250) Aug 13, 2018 North Carolina
    Society

    Welcome to the Machine
     
  6. NeroFiddled

    NeroFiddled Poo-Bah (10,916) Jul 8, 2002 Pennsylvania
    Trader

    Not for nothing, but $100,000 ain't bad.
     
  7. hottenot

    hottenot Aspirant (250) Aug 13, 2018 North Carolina
    Society

    2 or 3 years wage. Depending on position.
     
    russpowell likes this.
  8. Bitterbill

    Bitterbill Poo-Bah (6,913) Sep 14, 2002 Wyoming
    Society Trader

    I just saw that. Shocked but not really shocked the way things are going on in the Brewery industry.
     
  9. jesskidden

    jesskidden Poo-Bah (1,882) Aug 10, 2005 New Jersey
    Society Trader

    ...which, of course, is what EVERY company says after buying another one. I imagine that sometimes it might even eventually prove to be true :rolling_eyes:.

    Kirin also owns 24.5% (what a strange percentage, huh?) of Brooklyn Brewery, and, as such, also owns a percentage of 21st Amendment and Funkwerks (also in Ft. Collins).
     
  10. Eddiehop

    Eddiehop Zealot (571) Jun 28, 2014 Texas
    Trader

    Yeah, that's real money for a lot of people. Good on them!
     
  11. aussiebeer

    aussiebeer Devotee (460) Oct 23, 2013 Illinois

    Aussies are taking over the world, lol
     
  12. scream

    scream Meyvn (1,216) Dec 6, 2014 Wisconsin
    Society

    Hope my Voodoo Ranger remains the same !!
     
  13. thesherrybomber

    thesherrybomber Initiate (151) Jun 13, 2017 California
    Trader

    Better access to Oakspire
     
    jglenn73 likes this.
  14. jesskidden

    jesskidden Poo-Bah (1,882) Aug 10, 2005 New Jersey
    Society Trader

    BREWBOUND's got a bit more on the topic, including this side note:

    Also a link to A LETTER FROM KIM.
     
  15. Bitterbill

    Bitterbill Poo-Bah (6,913) Sep 14, 2002 Wyoming
    Society Trader

    Deja vu all over again but with different players.
     
    mikeinportc, micada and Shanex like this.
  16. jasonmason

    jasonmason Initiate (181) Oct 6, 2004 California

    Yeah, that part about Magnolia was interesting. i honestly had no idea New Belgium had a stake in them.
     
    Bitterbill likes this.
  17. officerbill

    officerbill Disciple (393) Feb 9, 2019 New York
    Society

    Good for them and their owner/employees. They built a brand and took it as far as they could. Now it's time to move the company to the next level and repay the folks who “invested” in them.

    Does this mean New Belgium will start brewing Kirin for the US market instead of A-B?
     
    albertq17 and mikeinportc like this.
  18. ballardbeer

    ballardbeer Initiate (176) Nov 10, 2013 Washington

    Strange, thought they would’ve sold to someone more interesting. Kirin is the 10th largest brewer in the world.
     
  19. Domingo

    Domingo Poo-Bah (2,627) Apr 23, 2005 Colorado
    Society

    Hopefully this ends up being good for their staff in the long run.

    Gotta admit, I'm a little fearful about my favorites like Tripel, 1554, and Abbey disappearing. I've long wondered if I'm the only one that still buys those. For that matter, Fat Tire doesn't sell like it used to either. As long as they don't kill off my old faves and the staff is happy, them I'm happy.
     
  20. cg123

    cg123 Initiate (93) Feb 27, 2012 Ohio

    I'm pretty sure the money these employees are getting is what their ESOP retirement account is worth. I don't think they are just getting an extra 100k for the sale; their ESOP is getting bought out. Also, that money will have to be distributed to a eligible retirement account (think IRA) or it will be subject to IRS tax implications.
     
  21. beertunes

    beertunes Poo-Bah (6,494) Sep 24, 2007 Saint Martin
    Trader

    Just finishing work, and on my fone, so more thoughts later, but: IMHO, I think most of the front-line, grunt, labor (warehouse, facilities, brewers, etc) should keep their jobs, if they choose. The folks most in the crosshairs are the possibly redundant office staff: accounts payable/receivable, HR, etc.

    Haven't read the details, so will adjust thoughts when I do.
     
    mikeinportc likes this.
  22. frazbri

    frazbri Crusader (774) Oct 29, 2003 Ohio

    New Belgium was one of the 1st breweries that got me excited way back when. Hopefully this is a happy day for those involved, but these sales make me a little nostalgic and blue.
     
  23. JackHorzempa

    JackHorzempa Poo-Bah (4,251) Dec 15, 2005 Pennsylvania
    Society

    I suspect that you will see a 'mixed bag' for the craft brewing industry in 2020. There will likely be something like 1,000 new craft breweries opening (the small, local brewery kind) and more 'consolidation' for those craft breweries that are of the larger, distributing type (i.e., types like New Belgium).

    Cheers!
     
  24. AWA

    AWA Aspirant (261) Jul 22, 2014 California

    Do they seriously have people making 30-35k per year?
     
    Genuine likes this.
  25. ballardbeer

    ballardbeer Initiate (176) Nov 10, 2013 Washington

    $15 an hour is considered great as far as starting wages go in the industry. If you get benefits in addition you’ve stumbled upon the holy grail.
     
  26. JLaw55

    JLaw55 Meyvn (1,385) Jul 10, 2014 Missouri
    Society

    For my own personal nostalgic reasons, my first reaction is "oh man, damn." However, those feelings aside, it's a smart move on their part and it allows them to to not only move the company to the next level, but also reap the full benefits of their hard work. Kudos all around and I wish them success moving forward under the new structure.

    I will say that I didn't really see them as being the next acquisition/sale/merger to happen only because they have touted being employee owned for some time now. Not that I fault them for wanting to get out of that position with the increasingly unsteady beer landscape that we are seeming to be heading into. Just surprised I suppose.
     
    jglenn73 and chrismattlin like this.
  27. Bitterbill

    Bitterbill Poo-Bah (6,913) Sep 14, 2002 Wyoming
    Society Trader

    How aboot the closings in 2020? I suspect that breweries on the fringe, maybe long established ones, could fall by the wayside. Maybe buyouts are the only way that they can survive?
     
    beersampler6 likes this.
  28. JackHorzempa

    JackHorzempa Poo-Bah (4,251) Dec 15, 2005 Pennsylvania
    Society

    Perhaps they figured that by selling now (vs. 2020 or thereafter) they could 'optimize' the rewards of the sale? Maybe if they waited it would have been less lucrative for all involved?

    As the old saying goes with buying stock, "buy low and sell high" applies here?

    Cheers!
     
  29. JackHorzempa

    JackHorzempa Poo-Bah (4,251) Dec 15, 2005 Pennsylvania
    Society

    I personally am not expecting that any of the larger, distributing breweries will specifically close (go out of business) in 2020 (or beyond). What I do expect is further consolidation of the craft brewing industry. It could be a sale to a larger business like has occurred with New Belgium but I suspect that it will be more changes like 'mergers'. Examples of 'mergers' would be:
    • Artisanal Beverage Ventures (ABV) is currently the 'umbrella' for Southern Tier, Victory and more recently Sixpoint. Once they have properly 'digested' Sixpoint maybe add another larger, distributing brewery to the list (maybe 2021?).
    • Canarchy – which owns Oskar Blues, Cigar City Brewing, Deep Ellum, Utah Brewers Cooperative, Perrin Brewing and Three Weavers
    • Legacy Breweries Inc., which includes Ninkasi, Laurelwood,…
    I could envision all the above 'merging in' other breweries plus some additional Venture/Holding Companies starting to compete with the above three.

    Cheers!
     
  30. BeerVikingSailor

    BeerVikingSailor Champion (810) Nov 19, 2009 Ohio
    Trader

  31. ndepriest

    ndepriest Aspirant (208) Feb 21, 2012 Georgia
    Trader

    Oakspire is made with in collaboration with Knob Creek and Kirin owns Four Roses. Oakspire will be the first thing to go, at least until they can get the barrels changed.
     
  32. Bitterbill

    Bitterbill Poo-Bah (6,913) Sep 14, 2002 Wyoming
    Society Trader

    BridgePort Brewing didn't surprise you? I still have a feeling that other unwelcome surprises are ahead of us next year. No sound basis for my feelings. I just "know" that there will be some "oh nos" in the immediate future.
     
    beertunes likes this.
  33. dorfilms

    dorfilms Initiate (78) Oct 31, 2009 California
    Trader

    Nothing here surprises me. I've been hearing rumors of the powers that be trying to find a buyer for New Belgium for years. Glad the employee's got something out of it at least.
     
  34. BoldCars

    BoldCars Initiate (30) Apr 5, 2018 Maryland

    I don't mind a four roses version lol
     
    jamesgaither and thesherrybomber like this.
  35. cg123

    cg123 Initiate (93) Feb 27, 2012 Ohio

    They're not. They are getting the market value of their ESOP account that must be distributed to a qualifying retirement account.
     
  36. RobHB

    RobHB Initiate (99) Aug 20, 2017 New Jersey

    I agree, I would not be surprised to see Artisanal add another brewery to the fold.
     
    chrismattlin and JackHorzempa like this.
  37. LostHighway

    LostHighway Disciple (370) Jan 29, 2007 Minnesota

    I'm not thrilled about this consolidation but if it has to happen I prefer to see sales to a brewer other than InBev or to private equity.
     
  38. RKP1967

    RKP1967 Aspirant (270) Sep 26, 2010 Virginia

    Wow, are their wages really that low?
     
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  39. RKP1967

    RKP1967 Aspirant (270) Sep 26, 2010 Virginia

    What is the "next level?"
     
    beertunes and Jaycase like this.
  40. DrOfGolf

    DrOfGolf Initiate (39) Jun 11, 2019 Florida

    It was mentioned that this amount was for/towards their retirement. That may sound good but it's only a 1 year payment for most retirees.
     
    beertunes and Oktoberfiesta like this.