MillerCoors buys Texas craft brewer Revolver

Stepping up its foray into craft beer, the number two brewer in the US MillerCoors on 11 August 2016 bought into the Texas-based craft brewer Revolver, making it the third such deal announced in less than a month. Revolver was founded in Granbury, Texas, in 2012 by a father and son, Ron and Rhett Keisler.

Known for its flagship Blood & Honey wheat ale, Revolver joins Terrapin and Hop Valley, situated in Georgia and Oregon respectively. As with the other two deals, MillerCoors is taking a majority interest in Revolver, as opposed to buying it outright. Terms of the deal were not disclosed.

Though each deal is unique, MillerCoors seems to follow a regional strategy. Like AB-InBev it has bought craft brewers in states where craft is on the rise (Texas and Georgia), while the purchase of the Hop Valley brewery in Oregon, known for its heavily-hopped beers, is more of a “style play”. But Hop Valley also gives MillerCoors a presence in Oregon’s highly developed craft beer scene.

It was reported that Revolver and Hop Valley produced almost 40,000 barrels of beer each last year, while Terrapin brewed roughly double that amount.

Observers said that MillerCoors, on the whole, went after smaller breweries with local strength when compared to AB-InBev. They also noted that MillerCoors’ strategy of buying majority interest in the breweries, rather than acquiring them outright, differs from AB-InBev’s approach.

Combined with the San Diego-based Saint Archer Brewery, which MillerCoors took a majority stake in last year, the four craft breweries are expected to add about 200,000 barrels to MillerCoors’ craft portfolio, which recently reported a mid-single digit sales decline for the quarter ending 30 June 2016. Blue Moon and Leinenkugel, the big sellers of the portfolio, both reported declines in sales to retailers.

Buying into craft brewers, MillerCoors seem to have done a U-turn on their previous strategy, which saw them import and produce craft-like beers. Over 20 years ago Coors invented the brand Blue Moon, which the Brewers Association calls a “crafty” beer as opposed to a real craft beer. In spite or because of the ownership masquerade, the Blue Moon brand managed to reach a volume of over 2 million barrels (2.3 million hl).