Boston Beer Company and Dogfish Head Brewery to Merge

Tickle the Tastebuds - Beers & Breweries

BJim Koch (l) and Sam CalagioneOSTON, May 9, 2019 /PRNewswire/ -- The Boston Beer Company, Inc. (NYSE: SAM) and Dogfish Head Brewery today announced that the companies have signed a definitive merger agreement, bringing together two pioneering independent Craft breweries and two illustrious founders and brewers, Jim Koch and Sam Calagione.

Together, Boston Beer and Dogfish Head will create a powerful American-owned platform for craft beer and beyond.  The new entity will possess more than half a century of Craft brewing expertise, a balanced portfolio of leading beer and "beyond beer" brands at high end price points, and industry leadership in innovation and quality. Following the transaction, the combined company will have a leading position in the high end of the U.S. beer market, bringing together Boston Beer's craft beer portfolio and top-ranked sales team[i] with Dogfish Head's award-winning portfolio of IPA and session sour brands. 

The combined company will maintain its status as an independent Craft brewery, as defined by the Brewers Association. It will be better positioned to compete against the global beer conglomerates within the craft beer category that are 50- and 100-times its size, while still representing less than 2% of beer sold in the United States.

Most importantly, this combination brings together two of the leading founder-brewers in the United States, Jim Koch of Boston Beer and Sam Calagione of Dogfish Head, both of whom will continue to lead brewing innovation for the newly-combined company. Sam and Mariah Calagione, Dogfish Head's two co-founders, have elected to take substantially all of their merger consideration in the form of SAM stock and will collectively become the largest non-institutional shareholders after Jim Koch following the close of the transaction. Sam Calagione will join Boston Beer's board of directors and Dogfish Head's band of off-centered co-workers will join the Boston Beer team and continue to be heavily involved in beer and "beyond-beer" projects, as the companies expand opportunities for future innovation.

"We believe we are creating the most dynamic and diverse American-owned platform for craft beer and beyond," said Jim Koch, founder and Chairman of The Boston Beer Company. "Dogfish Head has a proud history as a craft beer pioneer with a brand that is beloved by American consumers and highly respected by the industry. Sam and I have stood shoulder to shoulder in some of the defining efforts in Craft brewing including the creation of the Brewers Association, the craft beer definition, the craft brewer seal and the creation of the SAVOR food and beer event. This combination is the right fit as both Boston Beer and Dogfish Head have a passion for brewing and innovation, we share the same values and we will learn a lot from each other as we continue to invest in the high-end beer category.  I am very happy that Sam will join the Board of Directors at Boston Beer.  He is a tremendous friend, innovator and brewer, and I could not be more excited to work together with him for many years to come."

"Not only are Dogfish Head and Boston Beer two original American breweries, but Jim Koch and I worked hard with other leading craft brewery founders and the Brewers Association to develop and champion what defines independent American brewers," said Sam Calagione, founder and brewer of Dogfish Head. "This merger better positions Dogfish Head and our co-workers to continue growing within this definition for many years to come.  In fact, Mariah and I believe so much in the future of our merged companies that we are all in, and personally we're reinvesting nearly all of the proceeds back into the combined entity. We're also proud to announce that we intend to devote a percentage of the Boston Beer stock that we receive to establishing a foundation and funding various local charitable programs."

The combined company will be led by Boston Beer CEO, Dave Burwick. "This is a formidable combination of brands, incredible brewing talent, and leaders who remain 100 percent focused and committed to the long-term health of our breweries and growing the beer industry. United, we will have the highest quality, most distinct, high-end portfolio, from both a price-point and product perspective with the top-ranked sales organization to bring it to market.  We expect that we'll see more consolidation in the Craft industry over time, and we'll be in the best position to take advantage of those changes."

Boston Beer is recognized for helping launch the craft beer industry after opening its doors and brewing the first batch of Samuel Adams Boston Lager in 1984.  From the launch of craft brewing to 2019 Sam Adams continues to be the most award-winning craft brewer in the world. In addition to its iconic Sam Adams beer, the company now offers nationally other leading brands such as Angry Orchard hard cider, Truly Hard Seltzer and Twisted Tea.  Founded 23 years ago, Delaware-based Dogfish Head's family of beers includes the continually-hopped 60, 90, and 120 Minute IPAs, and robust sour beer program led by SeaQuench Ale. Dogfish Head is recognized as an early leader in bringing culinary innovations to the U.S. craft beer scene, and Sam Calagione was named 'Outstanding Wine, Spirits, or Beer Professional' by the prestigious James Beard Foundation. Following the opening of their brewery and tasting room, Dogfish Head also established one of the first Craft distilleries in America, Dogfish Head Brewings & Eats brew pub, Chesapeake & Maine restaurant, and the Dogfish Head Inn. The newly combined company will maintain a significant presence in Delaware.

Terms of the Transaction and Impact on the Boston Beer Company's 2019 Financial Outlook 

The transaction is expected to close late in the second quarter of 2019, subject to customary closing conditions.  Sam Calagione and his family will receive approximately 406,000 shares of Boston Beer stock based on a share price of $314.60.  Dogfish Head shareholders will also receive $173 million in cash, most all of which is for the benefit of Dogfish Head's financial investors, with the exception of certain transaction-related expenses.

Boston Beer expects that its current cash on hand and available line of credit will be more than sufficient to fund the cash component of the transaction. It is expected that Sam Calagione will join Boston Beer's Board of Directors beginning in 2020. A copy of the definitive transaction agreements will be filed with the Securities and Exchange Commission (SEC).

Dogfish Head is on pace to sell nearly 300 thousand barrels for the full year 2019, which would represent high single digit growth versus the prior full year. Net sales for the full year 2019 are expected to be between $110 and $120 million. Dogfish Head employs approximately 400 employees, produces most of its beer at its brewery in Milton, DE, and sells its beer in more than 40 states.  Boston Beer plans to consolidate Dogfish Head results into Boston Beer's financial results beginning late in the second quarter of 2019 and Boston Beer currently estimates that the transaction will be neutral to slightly accretive in 2019 and will not have a material impact on full-year 2019 earnings per diluted share.

 

Fastest-Growing U.S. Craft Breweries in 2018

Tickle the Tastebuds - Beers & Breweries

The Brewers Association, the not-for-profit trade group representing small and independent brewers, released its second annual list of the 50 fastest-growing craft brewing companies of 2018.

Representing 27 states across the U.S., these small and independent breweries experienced a median growth of 163 percent with the median size being 1,350 barrels of in-house production in 2018. Breweries on the list range from 50 barrels to more than 40,000, and grew from less than 70,000 barrels collectively in 2017 to more than 170,000 barrels in 2018. As a group, these brewing companies represent approximately 10 percent of total craft growth by volume for the year, and include 13 brewpubs, 35 microbreweries and two regional craft breweries. 

"Even as market competition continues to increase, these small and independent breweries and brewpubs demonstrate there are still growth opportunities across a diverse set of regions and business models," said Bart Watson, chief economist, Brewers Association.

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Synthesis Wine-Beer Hybrid at Garden Grove Brewing

Tickle the Tastebuds - Beers & Breweries

Synthesis Garden GroveAs part of their fourth-year anniversary, Garden Grove Brewing and Urban Winery has announced the release of a beer-wine hybrid, which will be available on tap and bottled, beginning Saturday, Feb 16, at noon

“Synthesis” is a barley wine, white tawny port and mead hybrid. Traditional barley wines are made from 100 percent barley, but we included equal parts barley, Virginia-grown Vidal Blanc and Chardonnay grapes, and wildflower and orange blossom honey. Synthesis was aged for 14 months in Cabernet Sauvignon and Syrah oak wine barrels, then transferred into steel vessels and aged an additional six months. 

Aromas of fig jam, white raisins, baked apples, oak and vanilla harmonize with flavors of Bit O’ Honey, toasted nuts, caramelized sugars and pear/fig reduction. 

500ml bottles $22/per bottle, Limit 3 Bottles per person.

Garden Grove Brewing

3445 W. Cary St., Richmond

GardenGroveBrewing.com

 

Longoven + Alewife: The Best of Both

Tickle the Tastebuds - Cuisine & Restaurants

LongoveThis winter, the chefs of two of Richmond's top new restaurants – Longoven and Alewife – will swap kitchens for two separate tag-team menu takeovers at each other's restaurants. Alewife celebrates the bounty of the coastal waters of the Mid-Atlantic region.

Jan. 28, Longoven visits Alewife

On Monday, Jan. 28 from 5 to 9 p.m., Chefs Andrew Manning, Patrick Phelan and Megan Fitzroy Phelan of Longoven will offer highlights from Longoven's ingredient-driven menu at Alewife, in Richmond's Church Hill neighborhood. Longoven's chefs will feature versions of their signature dishes made with sustainably sourced seafood and local produce in creative iterations.

Guests can expect 6 courses for $65 per person (excluding tax and gratuity), along with optional wine pairings. Highlights include Surf Clam, with Pepperoni and Mississippi Rice; Short Rib with Mustard and Turnip; and Mackerel with Cabbage and Pepper Relish. 

Alewife: 3120 E Marshall St., Richmond

Reservations can be made by calling the restaurant directly: 804-325-3426. (Reservations are highly suggested and are subject to a $50 per person cancellation fee, if cancelled within 24 hours.)

Feb. 24, Alewife visits Longoven

On Sunday, Feb. 24, Alewife's chef/owner Lee Gregory, a three-time James Beard Foundation Award semifinalist for Best Chef: Mid-Atlantic, along with Chef de Cuisine Bobo Catoe, will take their creativity to Longoven in Scott's Addition to present Gregory's seafood-centric dishes to guests at Longoven.

Longoven, which opened in June 2018, focuses on seasonality and guest service. More details on this event, including menu, pricing and reservations will be released in the coming weeks.

Longoven: 2939 W. Clay St., Richmond

 

GBS + Golden Ticket = Complete GBS Variant Set Free

Tickle the Tastebuds - Beers & Breweries

Score a “golden ticket” and score a complete set

181016_Hardywood_047Hardywood Park Craft Brewery’s legendary Gingerbread Stout (affectionately called GBS) and Christmas Pancakes goes on sale this Saturday, Nov. 3. The holiday-themed milk stout, enhanced with cinnamon, vanilla, local ginger and local honey, has been coveted by locals and out-of-towners alike since it was first released in 2011. And especially since it scored a perfect 100 on Beer Advocate. And since it medaled at the Great American Beer Festival in 2012. And since … 

As if the popular beer isn’t enough, Hardywood has been cranking out variants, too, like Bourbon Barrel GBS, Rum Barrel GBS and Christmas Morning.

When sales open on Saturday, five select cases of Hardywood Gingerbread Stout will contain a Golden Ticket redeemable for a GBS: The Complete Set ($175 value). GBS: The Complete Set promptly sold out again this year, so these are quite the prize.

What’s in the complete set for 2018, you ask?

Gingerbread Stout

Christmas Pancakes (with maple syrup)

Bourbon Barrel GBS

Port Barrel GBS (exclusively packaged for the Complete Set, only available on draft in the taprooms)

Rye Barrel GBS

Apple Brandy GBS

Christmas Morning

Caliente GBS (GBS with cacao nibs and peppers – a new for 2018 variant)

Kentucky Christmas Morning

Mega GBS (Hardywood’s Cassowary imperial milk stout with plenty of ginger, honey, cinnamon, vanilla – a new for 2018 variant)

Double Barrel GBS (aged in bourbon barrels and brandy barrels – exclusively packaged for the Complete Set, only available on draft in the taprooms)

Golden Tickets can be found in purchased to-go cases of Gingerbread Stout (cases contain 12 500 mL bottles), available at the Richmond, West Creek or Charlottesville breweries on Nov. 3.

 
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