Two publicly traded beer companies Dogfish Head and Boston Beer Company will be merging into one massive beer business.
Last week, the companies announced that they had agreed to a $300 merger deal where the Dogfish Head co-founders Sam and Mariah Calagione will receive about 406,000 shares of Boston Beer stock, making them the largest non-institutional shareholders. Boston Beer founder Jim Koch remains the largest shareholder.
Dogfish Head shareholders made $173 million in the deal and in 2020, Sam Calagione will be joining the Boston Beer's board of directors.
The Samuel Adams’ brewer Boston Beer is the second largest craft beer maker in the U.S. and Dogfish Head is the 13th, according to the Brewers Association.
“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,” said Koch in a press release.
Koch and Sam Calagione discussed the deal back in February at the Beer Advocate’s Extreme Beer Fest in Boston while sipping on pints.
“We talked about how challenging the industry is getting, the indie craft definition, brands that consumers think are indie craft, active lifestyle beers, and we discovered how beautifully complementary and not competitive our portfolios were,” said Koch.
Dogfish Head is expected to sell 300,000 barrels of beer this year, with net sales of about $120 million. The company is only expected to grow significantly with more resources under Boston Beer. Dogfish Head current sales team that is only about 25 percent of the size of Boston Beer’s.
This isn't the first time the companies have worked together either. About eight years ago, the companies partnered to brew a collaboration beer for the annual SAVOR craft beer event.
Learn more about this big beer merger at "Brewbound."
Whenever a craft brewer sells or gets acquired, this often inspires a debate amongst craft beer lovin' consumers. Watch the video below to learn more.