Anheuser- Busch might have a large and growing number of breweries and brands under its belt, but today it showed that its thirst for craft beer is far from quenched.
Devil’s Backbone, the Roseland, Virginia based craft brewery with more than two dozen Great American Beer Festival Medals and widespread critical acclaim, is now part of the Anheuser- Busch family. Exact terms of the acquisition were not disclosed, but the deal is slated to close in the second quarter of 2016.
Anheuser- Busch operates a unit known as the High End, which is responsible for craft beer and import beers. The unit’s president, Felipe Szpigel, is psyched about this latest buyout and newest member of the A-B lineup in large part because of the incredible operation and award winning beers Devil’s Backbone co- founder and CEO Steve Crandall has created and influenced since its founding.
“I am both very excited but humbled because Steve and his team have built an amazing brewery, portfolio of beers and brands,” said Szpigel, “Having them trust us as a long-term partner to be able to help take Devils Backbone to the next level is great.”
Devil’s Backbone will become part of Anheuser-Busch InBev’s craft segment which now includes such notable brands as Goose Island, Blue Point, Breckenridge, Elysian, and others. The company will gain access to A-B Inbev’s distribution network, marketing clout, and other business know- how that could propel the brand to even greater levels of success. Crandall points out that the issues with growth and financing were among several important factors in the decision to sell and his company looks forward to the much- needed financial backing.
“We are very challenged by current banking regs to support our growth,” Crandall said. “Growing a brewery is hugely capital-intensive and we see some of the largest craft breweries in the country reaching out and aligning with bigger brewers to help them finance the direction that they want to go in.”
Craft beer is a growing industry segment. Mainstream beer sales have been flat or declining in recent years, but the craft segment continues to increase its market share. This makes craft breweries extremely attractive to large breweries like Anheuser- Busch InBev, Heineken, and others. These large companies could easily develop their own craft brands- and some of them already have- but acquisitions are often favorable because they immediately add a successful operation to the parent company’s portfolio.
Don’t expect anything to change at Devil’s Backbone. Crandall says the management team will remain with the company for the foreseeable future and will keep “a high level of autonomy and continue its own authentic DNA within” Anheuser- Busch InBev’s High End division.
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