Spike Brewing is up for sale

[Brockness Monster]

I spent 5 years with the USS Nimitz battlegroup (USS Princeton CG-59 2002-2007). Your assessment of the Navy experience is spot on, and I miss it for some reason.

 

[Yooper]

I spent 5 years with the USS Nimitz battlegroup (USS Princeton CG-59 2002-2007). Your assessment of the Navy experience is spot on, and I miss it for some reason.

He loves being deployed, and has been stateside now since 2023. He hates being stateside, and is ‘bored’. He may get out next year.

Anyway, I took this whole thing WAY off topic but Spike Brewing is for sale. I hope they find a good buyer who will continue with the company’s products.

 

[mac_1103]

I took this whole thing WAY off topic but Spike Brewing is for sale

I dunno, lots of their products look like they belong on an aircraft carrier.

 

[MaxStout]

I dunno, lots of their products look like they belong on an aircraft carrier.

CIWS by day, flip it over and it's a nice brew kettle by night.

 

[David Coy]

Not so fast...

"pontoon boats are estimated to produce 52,000 to 55,000 new unit sales in 2024,"

Wisconsin alone has an annual boat and accessory revenue of $1B

No one really knows how many active homebrewers there are but I can guarantee there are more people sitting in a pontoon boat right now than are brewing a batch of beer.

Glad to see you chime in here @Bobby_M

I can't think of another person or business that could bring more to the Spike brand than you and BrewHardware.com (especially with what you could do with their bottom drain kettles).

Unfortunately, I doubt that the Spike brand would bring enough to you and the shop to warrant what I bet is an overestimate on the value of the Spike brand.

You and BrewHardware.com were my first thoughts when I saw this annoucement.

 

[mashdar]

It sounds to me that they're hunting for a unicorn. Someone who knows small scale brewing, small scale manufacturing, and business ops, can drop multiple millions on what sounds like a minority share of a small privately held business, and wants to pay up front to take on running a company that likely has negative revenue growth and profits mostly from belt tightening.
Maybe he's willing to structure it with a minimum-rate loan, which would at least solve the cash problem.

 

[MaxStout]

His post said, "sell a meaningful stake," which sounds a lot like "minority share." If he intended to sell a majority interest he would've stated it. The post sounds like he's not sure what the divestment will be, or perhaps he does have an idea but wants to keep his options open for negotiation. Probably smart to keep things loose and see what interest rolls in. But, given the state of homebrewing now, it will be a challenge.

One possibility would be to seek an angel investor who is willing to buy into a minority share for a slice of the profits. However, those investors usually demand a marketing plan with certain growth expectations. That might not be optimal for an owner who's looking to focus his attention to the new venture.

Another option could be to license the whole thing to a contract manufacturer, one that can also do the marketing.

 

[Willy]

His post said, "sell a meaningful stake," which sounds a lot like "minority share." If he intended to sell a majority interest he would've stated it. The post sounds like he's not sure what the divestment will be, or perhaps he does have an idea but wants to keep his options open for negotiation. Probably smart to keep things loose and see what interest rolls in. But, given the state of homebrewing now, it will be a challenge.

One possibility would be to seek an angel investor who is willing to buy into a minority share for a slice of the profits. However, those investors usually demand a marketing plan with certain growth expectations. That might not be optimal for an owner who's looking to focus his attention to the new venture.

Another option could be to license the whole thing to a contract manufacturer, one that can also do the marketing.

I recall a time, not long ago when Spike was planning to borrow a bunch of money to build a new facility I think. 7-12 million of memory serves me (it often doesn't anymore. Hahaha). The deal did not go thru ... I believe.

So, I feel like I am having a deja poo.
(I've seen this sh#t before).

 

[Snuffy]

I don't want to own a boat but I need tips on making friends with people who own boats.

Always show up with beer and 5 gals of non-ethanol gas. <boom> First Mate.

 

[Brockness Monster]

Always show up with beer and 5 gals of non-ethanol gas. <boom> First Mate.

I produce enough to fill my office on a daily basis, that's got to be way more than 5 gallons.

 

[Snuffy]

I produce enough to fill my office on a daily basis, that's got to be way more than 5 gallons.

I'd have to convert to burning methane. Also, the connection to the fuel rail could be uncomfortable.

 

[Bobby_M]

Glad to see you chime in here @Bobby_M

I can't think of another person or business that could bring more to the Spike brand than you and BrewHardware.com (especially with what you could do with their bottom drain kettles).

Unfortunately, I doubt that the Spike brand would bring enough to you and the shop to warrant what I bet is an overestimate on the value of the Spike brand.

You and BrewHardware.com were my first thoughts when I saw this announcement.

Of course my presence here is really just goofing around along with everyone else speculating what this might mean for the industry at large. Without signing NDAs and looking really hard at the numbers, no one know what the value is. The bigger question is where the homebrewing market is headed in 1, 3, and 5 years. The absolute hectic tariff environment bumping up against a hobby market with only moderate price flexibility. Let's just say I'm generally pessimistic in this outlook.

Though we're not exactly the same, I am familiar with having to lean out to maintain cash flow. When I had twice the revenue and twice the staff, I personally could take some time away from the daily operations and focus on R&D. Now that poop is hitting the fan, I'm back in the trenches out of necessity and working harder than I ever have (well, maybe just a little less than the old garage days).

Maybe I'm not thinking it through but I can think off a hundred alternative investments less risky than brewing right now.

 

[Broothru]

I spent 5 years with the USS Nimitz battlegroup (USS Princeton CG-59 2002-2007). Your assessment of the Navy experience is spot on, and I miss it for some reason.

Me too. Friends for life, and memories to boot. Ahoy, Shipmate.

 

[bwible]

Boat? Navy? My son, who dislikes boats, joined the Navy in 2017.

He gave me a ride once, in 2023.
View attachment 880633View attachment 880634View attachment 880635View attachment 880636View attachment 880637


It was LONG ride! Pearl Harbor to San Diego on the USS Nimitz (aircraft carrier). It took 6 days.
Food was terrible, bunks were worse. Bathrooms smelled horrible. They have 0 chairs on the entire ship. (They are either working or sleeping or eating I guess). It was awesome!

We called that a Tiger Cruise. I was on the Independence (CV-62) in the 80s. East Coast. Its gone now, cut up for scrap. We did a Tiger Cruise to New York City for 4th of July, I think it was 1983. I got to bring my dad. We had lots of stars doing a show for us - Bob Hope, Kenny Rogers, Loretta Lynn, Ben Vereen, Emmanual Lewis, and others back then.

 

[bwible]

The two happiest days of a boater's life:
The day they buy the boat.
The day they sell the boat.

BOAT = Break Out Another Thousand

 

[bwible]

Maybe I'm not thinking it through but I can think off a hundred alternative investments less risky than brewing right now.

I can’t count the number of guys I know/knew who stopped brewing. I can’t count the number of homebrew stores that went out of business. My closest one is about an hour and a half drive. I can’t count the micros that went under.

So many stories are out there about younger people not drinking beer. They’re either buying hard iced tea, White Claw, or some are drinking stuff like Capt Morgan.

Our club has about 40 members, most of us are north of 50, many north of 60. We’ve lost a couple guys not long ago just being too old, selling off all their stuff. We really haven’t added any new members in years. Maybe less than half of us are hard core, attending almost every meeting and bringing stuff we brewed, doing presentations, etc. We have a few who show up occasionally or only for the holiday parties, etc.

I’m 65 this year. I hope to be brewing for a few more years. Long term outlook though?

 

[wickedbeernut]

No surprise in terms of Spike.

What I find surprising in all this ... Europe is growing year over year. From Øyvind Stokkan, founder and CEO of Brewtools (Norway) in February of this year, "A lot of growth especially in the nano space. The future of Brewtools is definitely going larger tanks and brewing systems paired with our FCS platform."

"FCS" is Brewtools bleeding-edge Fluid (formerly Fermentation) Control System.

Brewtools products are sold through MoreBeer in the U.S. The ability to tap (no pun intended) into the global market through partnerships such as MoreFlavor and KegLand seems to be key. I can only imagine BrewBuilt (MoreFlavor) is killing it with their X3-series unitanks (Brewtools F-series "clone").

 

[bwible]

I can’t count the number of guys I know/knew who stopped brewing. I can’t count the number of homebrew stores that went out of business. My closest one is about an hour and a half drive. I can’t count the micros that went under.

So many stories are out there about younger people not drinking beer. They’re either buying hard iced tea, White Claw, or some are drinking stuff like Capt Morgan.

Our club has about 40 members, most of us are north of 50, many north of 60. We’ve lost a couple guys not long ago just being too old, selling off all their stuff. We really haven’t added any new members in years. Maybe less than half of us are hard core, attending almost every meeting and bringing stuff we brewed, doing presentations, etc. We have a few who show up occasionally or only for the holiday parties, etc.

I’m 65 this year. I hope to be brewing for a few more years. Long term outlook though?

…and I didn’t mention the nationwide obsession with stinkweed.

“If elected, I promise a pound for every bong”

“And it’s no calories, man”

 

[Broothru]

Do yourself a favor. Take :20 minutes or so to watch this guy. He's a business nerd who describes in infinite detail what he believes is the root cause of the collapse of the current craft brew hobby and industry. He makes several compelling arguments, in a very cogent and non-judgmental way. You might even call it "sobering." The guy's got good insight.

 

[BrewnWKopperKat]

my "real time" notes (while listening)

In the 2010s​

~ 8:30 cheap capital, in hopes of profit, grows a capital intensive industry.​

~ 9:30 community & uniqueness (craft pints at a local brewpub)​

​

then, in the early 2020​

~ 11:00 lock down, inflation, shifting demographics​

and some "Business Nerd" stuff​

~15:00: "airplane economics"​

- capital intensive industries need high utilization to survive​

- breweries are capital intensive​

~16:00: business cycles: "tailwinds" become "headwinds", ...​

~17:00: currently not 'the best of times' to start a brewery​

My thoughts

In the context of home brewing equipment, most of this seems to apply.

But hobbies are not businesses. It is likely that the home brewing hobby will continue to find approaches to brew enjoyable beer at home using basic equipment.

 

[bwible]

“An entire generation behind this one is not at all interested in craft beer.”

Two generations are aging, one is fading out. And an entire generation after them has no interest - they say in craft beer - I said in beer.

 

[MaxStout]

When I saw a subplot on Chicago Fire featuring homebrew a few years ago I knew the hobby had moved beyond its heyday.

Back OT...I think the higher end equipment market is going to get even more competitive--cutthroat, even--leaving a few players standing. For the rest of the hobbyists, there will be all-in-one devices, and of course, basic gear will always be available. You can brew good beer with $200 of gear.

 

[Pennine]

my "real time" notes (while listening)

In the 2010s​

~ 8:30 cheap capital, in hopes of profit, grows a capital intensive industry.​

~ 9:30 community & uniqueness (craft pints at a local brewpub)​

​

then, in the early 2020​

~ 11:00 lock down, inflation, shifting demographics​

and some "Business Nerd" stuff​

~15:00: "airplane economics"​

- capital intensive industries need high utilization to survive​

- breweries are capital intensive​

~16:00: business cycles: "tailwinds" become "headwinds", ...​

~17:00: currently not 'the best of times' to start a brewery​

My thoughts

In the context of home brewing equipment, most of this seems to apply.

But hobbies are not businesses. It is likely that the home brewing hobby will continue to find approaches to brew enjoyable beer at home using basic equipment.

I have seen a few breweries up for sale, seems like you can get a turn key business for a fire sale these days. Maybe we will see some thrifty brewers pick them up and have a more sustainable business.

I have looked through a few of my locals financials and they borrow $1-2mm to get set up, or try to expand or go to distribution outside the pub and they typically fail after that. How could this be a sustainable business model without growth in a saturated market.

Another piece I never hear people talk about is price. I think the higher prices are actually what's driving down demand. I make a decent living but dropping $8-$10 a beer still needs to be an occasional thing. If they dropped down to $6 I would almost always have 2 and probably go out more. $24 4 packs at the brewery is crazy...

 

[BrewnWKopperKat]

“An entire generation behind this one is not at all interested in craft beer.”

Two generations are aging, one is fading out. And an entire generation after them has no interest - they say in craft beer - I said in beer.

Hobbies survive (and perhaps thrive) in environments where individual hobby suppliers may not.

Home brew stores are closing, yet a few are opening. There is a new store (opened in June 2025) on the NW side of the Twin Cities MN - that apparently 'hit the ground running'. It's a drop off point for the MN State Fair Homebrew Competition (judging in mid-Aug 2025) - perhaps a way to make itself visible to a core group of homebrewers ( ) . There is more discussion on this over in "North Central Homebrew Forum" (including when the online order site should be available).

Astronomy is a hobby where one can start with re-usable equipment (binoculars) or a $10,000 telescope. There is at least one active discussion outside of the social media conglomerates. It is currently hosted by one of the suppliers () - and each forum has a number of moderators who are 'experts' in that forum category (binoculars or telescopes, but not both).

And then, consider Yoyo-ing has a hobby. Yes, there is a national competition / convention.

Home brewing as a hobby has survived over many decades of demographic changes, many transitions in how information is shared (UseNet, CompuServe, AOL, ...) and many transitions of suppliers (malt your own to local suppliers, paper catalogs, online suppliers).

 

[Willy]

I suspect home brewing has a big leg up vs. craft brewies... First, homebrewing is not capital intensive to learn and to make amazing beer. Many folks already have a 8-10 pot. You can get a can or two of extract and a brew bucket, and save your bottles as the final package. Some cleaning items, yeast, etc... yes. $200 bucks is a doable "starting capital" for homebrewing. (@MaxStout )

And the current cost of beer in the store is insane. Most six packs are close to $10 or more for "craft beers". When I got back into the hobby(2017) after a multi-year hiatus, I calculated how much beer was costing me and it opened my eyes to considering home brews again. The "business model" for homebrewing can actually save you money, lots of it! If you don't fall prey to the gear hound disease. That said... You can save money from cheaper homebrewing costs and "go big" in time. Additionally, you can save a big chunk of money by patronizing a local malt house (saving 35-50% on your grain bill)

When I was a kid - we would splurge sometimes and get a case of Miller High Life for about $8. If we felt poor, we would go Rhinelander for $3.99 for a case of 24 long necks (about 16 1/2¢ per bottle).

Having watched the beer industry for over 60 years... (The family business was corn milling, and the big beer boys were the biggest chunk of the business in the 60s & 70s. It began as an Aggie feed company, and moved to beer due to higher margins). That all changed as Schlitz moved to HFCS instead of the corn grits, and that led the charge to Schlitz's road to irrelevance. The family business moved into soybeans in addition to corn and eventually bought out by Archer Daniels.

Beer companies and consumption goes thru boom and bust about every 7-12 years to complete a cycle. In the 60s & 70s we had ZERO craft brewers and a few dozen big boys. And homebrewing exploded when homebrewing became legal in about 1978. We are currently at or near the trough of the cycle. What kicks it back ? I suspect when enough folks figure how to make their own beer, that is awesome for half the cost. I am already there... But historically, I am always early to the game, & pioneers catch all the arrows. But wait and watch... I bet homebrewing is going to have another surge over the next 5-10 years. Perhaps I am optimistic, but for hundreds and hundreds of years... Beer is foundational beverage. Like milk... Beer is here to stay.

 

[bwible]

I suspect home brewing has a big leg up vs. craft brewies... First, homebrewing is not capital intensive to learn and to make amazing beer. Many folks already have a 8-10 pot. You can get a can or two of extract and a brew bucket, and save your bottles as the final package. Some cleaning items, yeast, etc... yes. $200 bucks is a doable "starting capital" for homebrewing. (@MaxStout )

And the current cost of beer in the store is insane. Most six packs are close to $10 or more for "craft beers". When I got back into the hobby(2017) after a multi-year hiatus, I calculated how much beer was costing me and it opened my eyes to considering home brews again. The "business model" for homebrewing can actually save you money, lots of it! If you don't fall prey to the gear hound disease. That said... You can save money from cheaper homebrewing costs and "go big" in time. Additionally, you can save a big chunk of money by patronizing a local malt house (saving 35-50% on your grain bill)

When I was a kid - we would splurge sometimes and get a case of Miller High Life for about $8. If we felt poor, we would go Rhinelander for $3.99 for a case of 24 long necks (about 16 1/2¢ per bottle).

Having watched the beer industry for over 60 years... (The family business was corn milling, and the big beer boys were the biggest chunk of the business in the 60s & 70s. It began as an Aggie feed company, and moved to beer due to higher margins). That all changed as Schlitz moved to HFCS instead of the corn grits, and that led the charge to Schlitz's road to irrelevance. The family business moved into soybeans in addition to corn and eventually bought out by Archer Daniels.

Beer companies and consumption goes thru boom and bust about every 7-12 years to complete a cycle. In the 60s & 70s we had ZERO craft brewers and a few dozen big boys. And homebrewing exploded when homebrewing became legal in about 1978. We are currently at or near the trough of the cycle. What kicks it back ? I suspect when enough folks figure how to make their own beer, that is awesome for half the cost. I am already there... But historically, I am always early to the game, & pioneers catch all the arrows. But wait and watch... I bet homebrewing is going to have another surge over the next 5-10 years. Perhaps I am optimistic, but for hundreds and hundreds of years... Beer is foundational beverage. Like milk... Beer is here to stay.

How many ads have you gotten for “Pinter”?

 

[bwible]

I suspect home brewing has a big leg up vs. craft brewies... First, homebrewing is not capital intensive to learn and to make amazing beer. Many folks already have a 8-10 pot. You can get a can or two of extract and a brew bucket, and save your bottles as the final package. Some cleaning items, yeast, etc... yes. $200 bucks is a doable "starting capital" for homebrewing. (@MaxStout )

And the current cost of beer in the store is insane. Most six packs are close to $10 or more for "craft beers". When I got back into the hobby(2017) after a multi-year hiatus, I calculated how much beer was costing me and it opened my eyes to considering home brews again. The "business model" for homebrewing can actually save you money, lots of it! If you don't fall prey to the gear hound disease. That said... You can save money from cheaper homebrewing costs and "go big" in time. Additionally, you can save a big chunk of money by patronizing a local malt house (saving 35-50% on your grain bill)

When I was a kid - we would splurge sometimes and get a case of Miller High Life for about $8. If we felt poor, we would go Rhinelander for $3.99 for a case of 24 long necks (about 16 1/2¢ per bottle).

Having watched the beer industry for over 60 years... (The family business was corn milling, and the big beer boys were the biggest chunk of the business in the 60s & 70s. It began as an Aggie feed company, and moved to beer due to higher margins). That all changed as Schlitz moved to HFCS instead of the corn grits, and that led the charge to Schlitz's road to irrelevance. The family business moved into soybeans in addition to corn and eventually bought out by Archer Daniels.

Beer companies and consumption goes thru boom and bust about every 7-12 years to complete a cycle. In the 60s & 70s we had ZERO craft brewers and a few dozen big boys. And homebrewing exploded when homebrewing became legal in about 1978. We are currently at or near the trough of the cycle. What kicks it back ? I suspect when enough folks figure how to make their own beer, that is awesome for half the cost. I am already there... But historically, I am always early to the game, & pioneers catch all the arrows. But wait and watch... I bet homebrewing is going to have another surge over the next 5-10 years. Perhaps I am optimistic, but for hundreds and hundreds of years... Beer is foundational beverage. Like milk... Beer is here to stay.

Yeah the avg cost of a 6 pack is probably right about $10, even for some macros. You only save on those buying case or 30 packs. I just picked up 2 6 packs from Victory. Royale IPA and Octoberfest. Right about $20 for both. Bigger beers cost more, double IPAs, Imperial Stouts, Barleywine. I got a 4 pack 16 oz cans of Imperial Stout from one of our local micros - $35. It’s a great beer and I like the guy but thats alot. Those are the beers you’ll save money brewing yourself.

 

[Broothru]

I suspect home brewing has a big leg up vs. craft brewies... First, homebrewing is not capital intensive to learn and to make amazing beer. Many folks already have a 8-10 pot. You can get a can or two of extract and a brew bucket, and save your bottles as the final package. Some cleaning items, yeast, etc... yes. $200 bucks is a doable "starting capital" for homebrewing. (@MaxStout )

And the current cost of beer in the store is insane. Most six packs are close to $10 or more for "craft beers". When I got back into the hobby(2017) after a multi-year hiatus, I calculated how much beer was costing me and it opened my eyes to considering home brews again. The "business model" for homebrewing can actually save you money, lots of it! If you don't fall prey to the gear hound disease. That said... You can save money from cheaper homebrewing costs and "go big" in time. Additionally, you can save a big chunk of money by patronizing a local malt house (saving 35-50% on your grain bill)

When I was a kid - we would splurge sometimes and get a case of Miller High Life for about $8. If we felt poor, we would go Rhinelander for $3.99 for a case of 24 long necks (about 16 1/2¢ per bottle).

Having watched the beer industry for over 60 years... (The family business was corn milling, and the big beer boys were the biggest chunk of the business in the 60s & 70s. It began as an Aggie feed company, and moved to beer due to higher margins). That all changed as Schlitz moved to HFCS instead of the corn grits, and that led the charge to Schlitz's road to irrelevance. The family business moved into soybeans in addition to corn and eventually bought out by Archer Daniels.

Beer companies and consumption goes thru boom and bust about every 7-12 years to complete a cycle. In the 60s & 70s we had ZERO craft brewers and a few dozen big boys. And homebrewing exploded when homebrewing became legal in about 1978. We are currently at or near the trough of the cycle. What kicks it back ? I suspect when enough folks figure how to make their own beer, that is awesome for half the cost. I am already there... But historically, I am always early to the game, & pioneers catch all the arrows. But wait and watch... I bet homebrewing is going to have another surge over the next 5-10 years. Perhaps I am optimistic, but for hundreds and hundreds of years... Beer is foundational beverage. Like milk... Beer is here to stay.

I certainly hope so as well, but it’s hard to be happy when viewing all the carnage.

There’s another online video, which I sadly regret not having bookmarked, where the owner of the recently shuttered Atlantic Brewing Supply lamented the downturn in home brewing. Her very balanced and unemotional reasoning paralleled the previous linked video, but also cast some shade on how current homebrewers themselves are partly to blame. She talks about how the entry level into the hobby by a newcomer is often overwhelming, with homebrew club members intent on stoking their own egos with technical talk that leaves the newbies wondering what the hell they are doing by trying out this hobby.

Maybe we ourselves are unintentionally sabotaging our own success?

 

[MaxStout]

I certainly hope so as well, but it’s hard to be happy when viewing all the carnage.

There’s another online video, which I sadly regret not having bookmarked, where the owner of the recently shuttered Atlantic Brewing Supply lamented the downturn in home brewing. Her very balanced and unemotional reasoning paralleled the previous linked video, but also cast some shade on how current homebrewers themselves are partly to blame. She talks about how the entry level into the hobby by a newcomer is often overwhelming, with homebrew club members intent on stoking their own egos with technical talk that leaves the newbies wondering what the hell they are doing by trying out this hobby.

Maybe we ourselves are unintentionally sabotaging our own success?

This is where the AHA seems to be moving--getting new people started in the hobby. A couple pages of each issue of Zymurgy is devoted to a quick primer on brewing basics and a glossary of terms. They promote National Homebrew Day each May, there are articles on basic topics like hydrometers, and features on DIY gear. The organization spun off from BA and formed their own 501(c) entity to focus on the hobby. They're doing what they can to build membership. This is the direction they should be going. You don't need $10K to brew good beer. A bucket fermenter, cheap kettle, IC, capper, some empty bottles, and a few other gadgets and you're off and running.

I see the point about homebrewers sometimes being their own worst enemies. It's so easy to order stuff online--point, click and ship. I'm guilty of it myself. I would continue to support my LHBS--if I had one. Brew & Grow (which was 3 miles away from me), MW, and NB all closed up their brick-and-mortars in recent years. I'm encouraged to see a couple new stores in the metro, though it's a good 45 minute drive each way for me. I'll still check them out some time.

 

[wickedbeernut]

There’s another online video, which I sadly regret not having bookmarked, where the owner of the recently shuttered Atlantic Brewing Supply lamented the downturn in home brewing. Her very balanced and unemotional reasoning paralleled the previous linked video, but also cast some shade on how current homebrewers themselves are partly to blame. She talks about how the entry level into the hobby by a newcomer is often overwhelming, with homebrew club members intent on stoking their own egos with technical talk that leaves the newbies wondering what the hell they are doing by trying out this hobby.

HOMEBREWING IS DEAD. What Killed It?​

The prosumer market is definitely both a blessing and a curse.