American Brewing acquired by Pacific Brewing & Malting

Pacific-AmericanIt seems like every other week we read about another brewery acquisition. The craft beer industry has been growing exponentially and with it, so have the number of major transactions.

The majority of major acquisitions have come from macrobreweries playing defense by trying to gobble up as many craft breweries as possible (see: Elysian, Golden Road, Saint Archer, 10 Barrel, Lagunitas, et al.). Most of these have been sold off, either in part of wholly, to AB InBev, Miller Coors, Heineken, and other massive brewing conglomerates. Far fewer transactions have taken place between two like minded microbreweries that already have a place in the craft market and a dedication to their local community. 

Today we can add one of the latter transaction types to the list – Tacoma based Pacific Brewing & Malting Co. has announced their acquisition of Edmonds based American Brewing Company. Thankfully this isn’t another grab by AB InBev or Miller Coors or Heineken. This is a move that leaves me feeling perfectly secure that things will essentially remain as is. Both breweries will continue operations and both brands will still produce great beer. From what we can gather this is a strongly positive move for all parties involved, including us consumers. You can read the official statement from Pacific Brewing & Malting below. 

Statement from Pacific Brewing & Malting:

PACIFIC BREWING & MALTING CO. AGREES TO ACQUIRE AMERICAN BREWING COMPANY

TACOMA, WA — Pacific Brewing & Malting Co, LLC, of Tacoma, Washington has announced that it has entered into a definitive agreement with American Brewing Company, of Edmonds, Washington to acquire its brewery and related business operations.  The consummation of the transaction is subject to typical and customary conditions to closing, including approval by the Washington State Liquor and Cannabis Board of PB&M’s application to assume American’s brewery license.

“We are excited about the opportunity to continue the tradition of innovation that American has started,” exclaims PB&M co-owner Brent Hall. “The addition of the American brand will complement our growth strategy and give us a larger presence in Washington craft beer.”

The respective breweries and taprooms will co-exist and grow together and the efficiencies created by merging certain aspects the two operations will be advantageous for both brands.

“We have been working towards expanding our brewing operations and our goal has always been to invest in a production brewery,” explains PB&M co-owner Steve Navarro. “This deal gives us the opportunity to increase our production capacity in the near term and bring our beers to a more diverse and widespread market.”

Neil Fallon, CEO of American Brewing Company, says this is the right move for his publicly traded company and is excited that the brewery will be in good hands.

“With our recent purchase of bùcha™ live kombucha, our focus has been shifted to functional beverages on a national level. It became clear that the demands of a publicly traded company were not well suited for a small local craft brewery. For example, investors living all over the country cannot buy our beer in their local markets. This hinders the growth of the stock and frustrates shareholders. We immediately recognized that moving the brewery out of the public company would benefit both the brewery itself and the remaining public company. It does so by allowing a long time business partner and friend to take the reins of the brewery and infuse new capital and attention to strengthen our already established local presence while allowing me to laser focus the public company in the health segment and better respond to shareholder desires.  We built this brewery from the ground up, and appreciate that it will continue to be operated by another local craft brewery that shares our values in producing award winning craft beers. “

Steve Navarro sums everything up perfectly.

“This is going to be a lot of fun.”

About Pacific Brewing & Malting Co.:

Pacific Brewing & Malting Co. was originally established in Downtown Tacoma in 1897 and grew to become the second largest brewery in Washington State until shut down by Prohibition in 1916. Re-established in 2014, mainstay beers include 1897 Pale Lager, Dirty Skoog Double IPA, Red Front Session Red, Potomac Citra Pale, Grit City Porter, and Prairie Line IPA. Additional seasonal and specialty beers rotate throughout the year. The brewery and family-friendly tap room is located at 610 Pacific Avenue.

610 Pacific Ave
Tacoma, WA 98402
253-383-BEER
http://www.pacificbrewingandmalting.com

About American Brewing Company:

Founded in 2010, American Brewing Company, Inc., is an award-winning craft brewery based out of Edmonds, Washington. American Brewing Company’s current offerings include Breakaway IPA (named ‘Best in the West’ by Beer West Magazine), American Blonde (featured in GQ Magazine), Flying Monkey Dogfight Pale Ale, and Caboose Oatmeal Stout. American Brewing Company also owns bùcha™ live Kombucha which features 8 flavors of its sparkling kombucha tea.

180 W. Dayton St., Warehouse 102
Edmonds, WA 98020
425-774-1717
http://www.americanbrewing.com
http://www.mybuca.com.

Contacts:

Steve Navarro, Co-Owner
Pacific Brewing & Malting Co.
steve@pacificbrewingandmalting.com

Neil Fallon, CEO
American Brewing Company
neil@americanbrewing.com

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s