MillerCoors is taking over a majority stake in Saint Archer Brewing Co., a well-known San Diego craft brewer, giving the Chicago, Illinois-based company the opportunity to venture to the craft beer market.
Though specific details about the deal between the two are not yet available, the takeover is expected to be realized next month, according to Forex Report Daily.
The upper hand is said to be with MillerCoors since it is taking over a relatively young craft brewer (started two years ago) after the latter got a big leap in the market for selling thousands of beer barrels. This year, Saint Archer is expected to sell 35,000 barrels which is twice the number of the figure it sold in 2014. Thus, the two-year-old craft brewer is currently considered as one of the fastest-growing breweries in California.
Through this deal, Saint Archer is joining MillerCoor's Tenth and Blake or the company's craft and import division.
"Saint Archer brews award-winning ales across a variety of styles that are complementary to our current portfolio-including some outstanding IPAs," Tenth and Blake Chief Executive Scott Whitley said.
The acquisition is going to be the latest in MillerCoor's growing portfolio when it comes to extending its reach among craft brewers that are becoming more and more popular, The Drum has learned.
Meanwhile, analysts see this as part of the growing trend among mainstream companies that are capitalizing on the craft beer market that is apparently outperforming the mainstream beer market in the U.S.
Despite the acquisition, Saint Archer is expected to operate independently with full control on its products' brewing, packaging and shipping. The craft brewers co-founder Josh Landan even said that the deal will give Saint Archer more resources ton grow while ensuring the media that his company and Tenth and Blake share the same passion for "putting great beer first."
Landan was also quoted as saying by the Los Angeles Times: "With Tenth and Blake's help, we hope to one day be a national brand.
However, California Craft Brewers Association executive director Tom McCormick said that there is actually a downside to the acquisition of craft breweries by mainstream beer companies. Speaking of Saint Archer, McCormick pointed out that MillerCoors will eventually "assume control of the brand."
"At some point, they will probably start brewing Saint Archer beer in their large breweries. I see the Saint Archer deal as they sold their company to MillerCoors. Lagunitas, that was much more of a partnership," McCormick added.
