And another craft brewer goes to AB-InBev

Continuing its strategy of snapping up leading craft brewers in individual states, AB-InBev on 12 April 2016 said it agreed to acquire Devils Backbone in Virginia. Financial terms of the deal, expected to close in the second quarter, were not disclosed.

Devils Backbone, which began operation in 2008 in Roseland, has won more than 28 awards at the Great American Beer Festival over the last seven years, it was reported. According to industry publication Beer Marketer’s Insights, Devils Backbone increased production by 38 percent to 62,000 barrels beer in 2015. The brewery is on track to produce 90,000 barrels (108,000 hl) beer this year.

Since acquiring Chicago’s Goose Island in 2011, AB-InBev has purchased eight U.S. craft breweries including Blue Point Brewing, Elysian Brewing and Breckenridge (Colorado).

One of the – official – reasons why Devils Backbone was sold is financing. “We are very challenged by current banking regulations to support our growth,” Devils Backbone’s founder and CEO Steve 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.”

Interest in craft beer continues to grow. In 2015, craft beer sales rose 13 percent to reach 13 percent of the domestic market, according to the Brewers Association.