Boston Beer CEO: $300M Dogfish Head merger to help brewer compete with Coors, Anheuser-Busch
Samuel Adams maker Boston Beer Co. Inc. is merging with a smaller craft brewer, Dogfish Head, in a deal worth $300 million.
“This was really a merger of people with talents and skills that I think will be synergistic,” Boston Beer co-founder Jim Koch said on “Varney & Co." Friday. “[It’s] a merger of culture and values.”
The Delaware-based Dogfish Head Brewery developed a strong relationship with Boston Beer over the years and the two beer companies collaborated on the annual SAVOR craft beer and food pairing experience.
“We are able to give the consumer, the distributor and the retailer the most innovative and dynamic alcohol beverage package of any company in the world.”
Dogfish Head is known for its award-winning portfolio of IPA and sour brands. Its co-founder, Sam Calagione, said Boston Beer is “extremely complimentary” to Dogfish Head’s craft brewery collection.
“We are able to give the consumer, the distributor and the retailer the most innovative and dynamic alcohol beverage package of any company in the world.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SAM | BOSTON BEER CO. INC. | 286.98 | +2.11 | +0.74% |
| BUD | ANHEUSER-BUSCH INBEV | 58.74 | +0.83 | +1.43% |
| TAP | MOLSON COORS BEVERAGE CO. | 64.23 | +0.35 | +0.55% |
Koch said the merger will enable Boston Beer to compete with Anheuser-Busch InBev and Molson Coors Brewing Company, two mega brewing conglomerates in America.
“Over 80 percent of the beers made in the United States is made by just two big global brewers,” he said.
The U.S. beer industry is facing a potential job crisis as a result of the Trump administration's tariffs. According to Beer Institute and National Beer Wholesalers Association, aluminum tariffs caused the industry to lose 40,000 jobs since 2016.
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Calagione said the merger will provide the beer company with more clarity on sourcing as it remains a “David up against a couple of Goliaths” with less than 2 percent of market share.
“It gives us a finite amount of more capabilities whether it comes to sourcing kegs or aluminum,” he said. “But we are still at a huge disadvantage versus the international giants that dominate global.”