Dogfish and Sam Adams merger

[jschein]

https://www.delawareonline.com/stor...ery-merging-makers-sam-adams-beer/1155701001/

 

[EaseTN]

Wow. Just wow.

 

[Konadog]

WOW Never even heard a whisper about this.

 

[FatDragon]

In a way, it makes sense. Merging makes them a bigger economic entity which gives them a bit more weight with distributors so they can compete better with AB-Inbev in bars and supermarket shelves.

Not that I like it or the system that makes it make sense, but there you go.

Also, I'm surprised DFH merged for only $300 million after Ballast Point sold for $1 billion. I'd have reversed those valuations.

 

[burntchef]

I read that news story 5 minutes ago and threw up in my mouth a little bit. The fact that the CFO from SA will run the new entity, and Sam will serve on the board smells like Sam sold out. Not a merger. A sad day indeed. I was working at a jazz club in Rehoboth Beach when Sam and his buddy wandered into town and leased the spot they now own. They had a basic 3 kettle deal they brewed in and gave it a go. My fondest memory of their arriving was the beat down Ford f150 that was involved in the project. It was rode hard and still going, dented, bent, and a working truck. On the tail gate was hand painted " never under estimate the work a boy and his red wagon can do"
Eric

 

[MaxStout]

I don't see a downside here. Sam Adams has always been into craft beer (this isn't ABInBev making a bolt-on acquisition). And say what you will, SA still makes some innovative beers, though they're not the juggernaut they were in the 1980s. This merger is not the case of a non-craft buying a craft. The two companies' products are craft, but complementary--not much overlap. So less chance of beers being phased out or changed due to redundancy. SA is public, though Jim Koch owns 100% of the voting stock (the other stockholders own non-voting common stock), so SA is really run like a closely-held business. It's not the huge conglomerate some make it out to be. It's a 9-figure merger--big money, but not in the league of the huge brewing entities.

 

[Brooothru]

I don't see a downside here. Sam Adams has always been into craft beer (this isn't ABInBev making a bolt-on acquisition). And say what you will, SA still makes some innovative beers, though they're not the juggernaut they were in the 1980s. This merger is not the case of a non-craft buying a craft. The two companies' products are craft, but complementary--not much overlap. So less chance of beers being phased out or changed due to redundancy. SA is public, though Jim Koch owns 100% of the voting stock (the other stockholders own non-voting common stock), so SA is really run like a closely-held business. It's not the huge conglomerate some make it out to be. It's a 9-figure merger--big money, but not in the league of the huge brewing entities.

Yeah, gotta agree. Sam and J. Koch are cut from the same cloth and I respect that. I've toured both breweries and get a similar vibe from each, even though I've always thought their beers evolved down different paths. SA's Boston Lager and Boston Ale are still high on my fav lists as are DFH 60/90 minute. But if I'm looking for something more 'innovative' (ie, "appealing to the hipster/man-bun crowd") I'll likely look elsewhere.

That said, this was definitely a defensive corporate move for both parties. Hopefully it will prevent the downward spiral of craft brewing into the vast wasteland of mega brewing and mediocrity.

Brooo Brother

 

[Tobor_8thMan]

Hope my SAM stock goes up in price!