Brooklyn Brewery purchases stakes in two US craft breweries
Funny they should only think of it now: establishing a joint marketing platform.
On 26 July 2017, it was reported that Brooklyn Brewery has taken minority stakes in both San Francisco’s 21st Amendment Brewery and Fort Collins, Colorado’s Funkwerks. No financial details were disclosed, but it’s assumed that Brooklyn’s stakes in these two companies is below 25 percent so that they can continue to operate independently.
The whole point of the exercise is apparently to create a combined sales team.
It’s a known fact that sales generally rise in distribution territories that have salespeople. While direct sales require local distributors and their own salespeople, having brewery salespeople on the ground works even better.
Funkwerks, which was founded in 2010, brews about 7,000 hl annually and specialises in Belgian-style beers, only has two salespeople, both in Colorado, yet ships to seven US states. Founded in 2000 and producing over 120,000 hl beer this year, 21st Amendment ships to 25 states, and boasts a 20-person sales team. Brooklyn touts nearly that many for just New York City.
Throughout the rest of 2017, Brooklyn, 21st Amendment, and Funkwerks will be hard at work creating a national sales platform, slated to go live in January 2018.
According to USA Today, the new organisation includes 70 salespeople and 90 brand ambassadors covering 38 states with plans to eventually expand into new markets.
The three partners will develop annual sales and marketing plans together. They have left the door open for other beverage companies to join the partnership.
When asked if the breweries will begin using each other’s facilities, such as Brooklyn producing and packaging its beers at 21st Amendment’s San Leandro, California, facility, Brooklyn’s spokesperson Samantha Bernstein said, “We’re exploring many opportunities, but there are no specific plans for production right now. The current priority is developing the sales and distribution platform, which is no small feat and a big change for all parties involved.”
