New Belgium brewery rumoured to seek a sale

Just when everybody thought that Colorado’s New Belgium, the brewer of Fat Tire Amber Ale, was safe after its founder Kim Jordan in 2012 had sold a 41 percent controlling interest to its employees, word leaked in late December 2015 that the company is considering selling.

Why, oh why? Mostly likely, the now 100 percent employee-owned company has a sizable debt load from the buyout and the construction of a USD 140 million new brewery in Asheville, North Carolina. Maybe it is just exploring its options.

In a statement New Belgium co-founder and board chairwoman Kim Jordan said: “New Belgium Brewing’s Board of Directors has an obligation to have ongoing dialogue with the capital markets with the goal of making sure that we remain strong as leaders in the craft brewing industry. There is no deal pending at this time.”

Among U.S. craft brewers New Belgium ranked fourth in 2014, with a production of 1.1 million hl beer.

“In craft right now, you'd be kind of crazy if you weren't at least considering your options,” said Benj Steinman, publisher of Beer Marketer's Insights, a trade publication. Last year Californian brewer Ballast Point sold for about USD 1 billion. That has made everybody sit up and take notice.

The San Diego-based Ballast Point announced its sale in November 2015 to Constellation Brands, the number three brewer in the United States.

New Belgium could be valued in excess of USD 1 billion, according to a Reuters report, as it is much larger than Ballast Point.

Ms Jordan, who founded New Belgium Brewing with her then-husband Jeff Lebesch in 1991, announced in August 2015 that she would step down as CEO to focus on the New Belgium Family Foundation. Christine Perich, a 15-year company veteran, replaced Ms Jordan as CEO.

In the meantime, New Belgium continues to test its new East Coast brewery before releasing beer for sale in early 2016. The USD 140 million brewery project, which includes a separate distribution centre, will be able to produce up to 600,000 hl beer at full capacity.