On Thursday, Boston Beer, makers of Sam Adams, and Dogfish Head Craft Brewery shocked the beer world by announcing that the two independent breweries would merge. More specifically, Boston Beer acquired a controlling stake in Dogfish, bought with Boston Beer stock. Founder and longtime craft beer cheerleader Jim Koch, majority owner of Boston Beer became the majority owner of Dogfish. While the Dogfish owners—and craft cheerleaders—Sam and Mariah Calagione, became the second largest owners in both operations. In an age of beer when the biggest craft brewers are getting acquired by huge beverage companies, like Ballast Point selling for a $1 billion to a wine and liquor conglomerate, and Lagunitas went for an undisclosed but likely similar amount to Heineken, how does the second largest craft operation buying the 13th largest compare? Or more most importantly, what the hell does it mean for the beer? "The shortest answer is nothing," says Sam Calagione (pictured left). "But our beers will be easier to find, so drink the shit out of Slightly Mighty IPA even if we're at 88-percent capacity on our canning line." Sam, always a straight shooter, is likely right nothing will change for the consumer. And that's largely because of the merger. That canning line capacity problem he mentions is very real. Earlier this spring, Dogfish launched a 95-calorie IPA named Slightly Mighty ( we're fans ). Their initial plan was to brew 5,000 barrels (10,000 kegs or 69,000 cases), but a flood of orders now puts their projections for the beer closer to 40,000 barrels. Continued growth, says Sam, would force the brewery to install additional canning lines at a cost of at least $20 million. Now with access to brewing capacity at Boston Beer's facilities, our stream of low-cal IPA (as well as cans of 90 Minute IPA, also growing) will remain uninterrupted. But there are better reasons to merge than avoiding a new canning line. Both companies may seem strong, they're everywhere after all. But Boston Beer and Dogfish are getting pinched in the middle of the beer market. Below are thousands of smaller taproom-based brewers (rightfully) gobbling up local dollars with their fresh-as-fresh-can-be beers. And above are the international giants of Anheuser-Busch InBev, MillerCoors, and Heineken that have the market share and money to sway the market regardless of taste. Combined, Boston and Dogfish will still comprise less than 2 percent of the U.S. beer market. Even if Boston is holding steady and Dogfish continues to grow, Koch and Calagione know the beer market is as competitive as it's ever been. And the longtime allies saw an opportunity to strengthen both brands with complementary strengths. In short, Dogfish is a leader in being a loud and proud brand capable of creating the most dedicated followers. And Boston Beer offers the marketing, business, and operational acumen to run a true coast-to-coast brand (Dogfish is currently in 44 states). Both have expanded beyond just beer to what they describe as, other beverages for beer drinkers. Boston Beer has Truly hard seltzer and Angry Orchard hard cider, and Dogfish has it spirits distillery. Calagione also points out, half joking, that he could help the Sam Adams team make a continuously-hopped (like their 60 Minute IPA) lager, should they feel the need. Yes, the announcement was a surprise for the beer drinkers, the important news is that Dogfish Head's growth can continue uninterrupted as we hit summer beer-drinking season. This content is created and maintained by a third party, and imported onto this page to help users provide their email addresses. You may be able to find more information about this and similar content at piano.io<doc-sep>Boston Beer Company, the business that makes Sam Adams beer, is acquiring Dogfish Head Brewery. The deal is valued at about $300 million. "This merger better positions Dogfish Head and our coworkers to continue growing within this definition for many years to come," Sam Calagione, the founder of Dogfish Head, said in a statement. Visit Business Insider's homepage for more stories. Boston Beer Company, which makes Sam Adams beer, is acquiring Dogfish Head, a Delaware craft brewery. "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," the Dogfish Head founder Sam Calagione said in a statement on Thursday, referring to the Boston Beer founder and chairman. "This merger better positions Dogfish Head and our coworkers to continue growing within this definition for many years to come." Calagione added that he and his wife, Mariah, would be "reinvesting nearly all of the proceeds back into the combined entity," as well as establishing a philanthropic foundation with a portion of their newly acquired Boston Beer stock. The merger of the publicly traded Boston Beer Company, which also produces Angry Orchard cider, with Dogfish Head, the well-known craft brewery prominently featured in the 2009 documentary "Beer Wars," is sure to shake up the brewing industry. Read more: INSIDE SAM ADAMS — we got a tour from the founder and self-proclaimed 'Willy Wonka of beer' The press release said that the transaction was valued at about $300 million and that Boston Beer CEO Dave Burwick would helm the company. Dogfish Head posted a photo on Facebook and Twitter of Calagione sharing a drink with Koch. —Dogfish Head Brewery (@dogfishbeer) May 9, 2019 Though one Facebook user tagged the pair as "shill" and "sellout," not everyone who commented on the post had such a negative reaction. "To the haters: Samuel Adams / Boston Beer may not be perfect, but few people have been as vocal a proponent of craft beer for as long as Jim Koch," one Facebook user said. "I'd much rather DFH merge with them than get bought by Constellation or (gasp!) ABInbev-SabMillerCoors. We know that BBC won't force through drastic changes and expansion into other markets that the brand can't or won't handle." "A lot of you bozos don't understand what selling out is," another person wrote. "Two independent companies merging is WAYYYY different than if DFH went with InBev or another corporation. Relax, it's going to be OK and possibly create a bigger shipping market and MORE BEER." Not everyone was convinced, however. "Sam Adams has been completely out of touch with actual craft beer for a decade at least," one person wrote. "I don't see how this is good." Another added that Dogfish Head was the "last brewery on earth that I thought would sell out." "Not a fan," another Facebook poster wrote. "Dogfish Head has always been fiercely independent with a focus on unique and sometimes challenging beers. I've been to the brewery 6 times, to the brewpub many times. I spent my 31st birthday there and made some incredible memories. This is the last thing that I expected from DFH. What a shame." Yet another poster had a nuanced view, writing that the merger was a "good idea on paper." "Two crafters who are totally not in a competitive market with each other and could definitely compliment the other by being under one umbrella," the poster wrote. "BUT I feel we, as the consumer, are going to lose the unique and off the wall beers Sam and Dogfish Head brought us." More beer lovers posted their thoughts on Twitter: —please kill Bran (@justinsloe) May 9, 2019<doc-sep>Food & Drink Sam Adams and Dogfish Head Just Merged. We Talked to Their Founders About It. Courtesy of Boston Beer Company Thursday, news broke that Boston Beer Company (makers of Samuel Adams, Angry Orchard ciders, and the TRULY brand of hard seltzer, among others) would merge with Delaware’s Dogfish Head Brewery. A joint press release valued the deal at around $300 million in cash and stock; shares in BBC (stock ticker: SAM, because of course) have climbed around 5% since the announcement. Some people will tell you that craft beer is not like other businesses. Boston Beer Company founder and chairman Jim Koch and Dogfish Head co-founder Sam Calagione are two of them. They think beer companies should be led by “brewers first, and businesspeople second,” and that corporate independence -- as defined by the Brewers Association, a trade group on whose board they have both served -- is a critical ingredient of authentic craft beer. But as the number of American breweries ticks past 7,400, macrobrewers have proven they can buy and operate craft brands without facing revolt from the drinking public. Consolidation, not creativity, is the buzzword in the beer industry these days. In other words, instead of looking like America’s “strangest, happiest economic story,” craft beer is starting to look like, well, just another business. Having covered the beer space for the better part of the decade, I’ve interviewed both Koch and Calagione several times. With the precipitous state of the craft beer industry very much on my mind, I spoke to the two men again by phone as they drove from a press event at New York City’s Eataly to Dogfish Head’s brewery in Delaware. This interview has been edited lightly for brevity and clarity. Thrillist: Jim and Sam, thanks for getting on the phone. Congratulations on the deal. Jim Koch: We’re in the car here. Sam Calagione: Lot of road noise. Koch: If you can hear clinking in the background, you can imagine what that is. Calagione: The carrot on the stick at the end of our journey! Nice. I'm in Asheville, North Carolina right now. I want to start with a question on a lot of people’s minds, or at least my own. How is this deal any different from a macrobrewer like ABI acquiring a craft brewery like Wicked Weed? Koch: It's totally different. This is two independent craft brewers joining forces. This is not a big global brewing conglomerate buying a small American craft brewer. Second, both Sam and I have always been strong advocates for transparency and believe that beer drinkers have the right to know who brews their beer. We both had issues with big brewers buying craft brewers without letting the consumer in on that fact. We intend to do what Boston beer has done with our innovation breweries like Angel City, Concrete Beach, and Coney Island. We are very proud to put Boston Beer Company on [their labels] as a brewer. We’re equally proud to have our name on Dogfish Head’s beers. They feel the same way. Calagione: We're very proud to be independent craft brewers, and thankfully that's not a subjective concept. Our trade group, the Brewers Association, which represents the vast majority of America's 7,500 craft breweries, has the definition of indie craft, and we're proud to be within that. We also have a seal that only true indie craft breweries can put on their packaging. Our companies believe in that seal because we believe consumers want to know who makes their beer. And when we believe there's a lot of consumers who will be proud to buy beer made by a true indie American craft brewery and one that has the capability to get our beers coast to coast within the three-tier system. How extensively did you guys consult with Brewers Association while you were putting this deal together? Koch: We didn’t have to, because both Sam and I have been on the board of the Brewers Association. Calagione: While we didn't consult with the Brewers Association, I had a great chat yesterday with Bob Pease, the CEO, and he sees this as yet another example of the creativity and collaborative ethos of the craft brewing community. [In a statement provided to Thrillist, BA president & CEO Pease said: “As industry veterans, Jim and Sam are staunch supporters of the independent beer movement, leading the charge for small brewers and instrumental in growing the overall craft brewing segment [...] They will no doubt continue to champion for the more than 7,400 small and independent breweries in the U.S.”] So the trade group is excited. What about customers? If I’m a diehard Dogfish Head drinker or a diehard Sam Adams fan, why should I be excited about this? Calagione: I’ll start. In a word. Accessibility. It'll amplify the accessibility of both of our portfolios. On a national level, it's very challenging when essentially four international conglomerates control over 80% of America's beer market. It's challenging for the little guys to break through that noise and get our brands to the consumer, no matter how much [the consumers] desire it. Well now with our combined scale or combined creativity are a combined network of, uh, of distributors. We'll be able to get that beer more easily into consumers' hands. Koch: This brings together brewers with a long track record of innovation and creativity. And it's been my experience that when you put creative individuals together, cool things happen that might not happen if they're innovating in their separate silos. Courtesy of Boston Beer Company You’re two very different people with very different definitions of innovation and creativity. How do you fit those two different personality types together to be complementary, rather than butting heads? Koch: Sam and I have already done this. Eight years ago, we brewed the first collaboration beer for a high-end food and beer tasting held by the Brewers Association called Savor. Sam had the idea for it. It was going to be called Savor the Flowers and we were going to use flowers including hops in new and different ways. I thought was very cool.<doc-sep>Two big beer players merge in $300 million deal If craft beer wasn’t already over, this latest news might be the nail in the coffin: the Boston Beer Company — the producers of Samuel Adams beer and the second largest craft brewer in the U.S. — is merging with Dogfish Head Craft Brewery, the 13th largest independent brewery as ranked by the Brewers Association. The deal, valued at $300 million, follows other major consolidations in the beer industry, such as Constellation Brands’ $1 billion acquisition of a San Diego’s Ballast Point in 2015. Boston Beer CEO Dan Burwick (who is NOT the guy in all the Sam Adams commercials) will lead the merged company. “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,” he said in a press release. And in other news…<doc-sep>
Why the world's largest ice cream company is betting on home delivery This vegan restaurant is actually opening locations during the pandemic These are the racist origins of Aunt Jemima and Uncle Ben's Chicken sandwiches are big business. See them all Heinz ketchup packets are shown in New York on Monday, August 22, 2005. H.J. Heinz Co., the world's biggest ketchup maker, said first-quarter profit fell 19 percent on expenses to cut jobs and sell businesses. (Photo by Andrew Harrer/Bloomberg via Getty Images) A Now Hiring banner sign is viewed outside a Chipotle restaurant during a new coronavirus pandemic, Tuesday, March 2, 2021, in Orlando, Fla. (Phelan M. Ebenhack via AP) FAIRFAX, CA - MAY 02: Cans of Coors beer are displayed on a shelf at a liquor store on May 2, 2018 in Fairfax, California. Molson Coors Brewing Co. reported first quarter earnings that fell short of analyst expectations of $2.44 billion with revenue of $2.33 billion. (Photo by Justin Sullivan/Getty Images) (CNN Business) — One of the biggest US craft brewing companies is bringing another beer heavyweight into its fold. The Boston Beer Company (SAM) — makers of the Samuel Adams beer brand and the second largest craft brewer in the United States — and Delaware-based brewer Dogfish Head Craft Brewery said Thursday that they plan to merge the companies in a deal valued at more than $300 million. Dogfish Head founder Sam Calagione and his family will receive around 406,000 shares of Boston Beer Company, valued at $314.60 a share. Additionally, Dogfish Head shareholders are set to receive $173 million in cash. Dave Burwick, the CEO of Boston Beer Company, will lead the merged company. “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,” Burwick said. “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.” Dogfish Head is the 13th largest craft brewer in the United States as of 2018, according to the industry group Brewers Association. Boston Beer Company is in a good position to make the acquisition. It reported a net revenue of $251.7 million in the first quarter of 2019 — up 32.1% from the same period of 2018. The consolidation of the two craft brewing companies comes in the wake of other high profile purchases in the beer industry. For instance, Ballast Point Brewing & Spirits sold to mega beer company Constellation Brands in 2015 for $1 billion dollars.