MillerCoors buys two craft brewers

You don’t announce a deal these days via the media, you tweet it to all and sundry. The Oregon craft brewer Hop Valley, which was founded in 2009 and has two pub locations in the Eugene area, announced the sale of a majority stake to MillerCoors on its Twitter feed on 29 July 2016.

“Big News From Hop Valley! We’ve got some new folks partnering in our brewing company.”

With feeds being limited in length, the next few tweets from the company included the by now bog standard reasons why craft brewers sell to the Big Brewers. Despite being acquired by MillerCoors’ craft division Tenth and Blake, Hop Valley will still be managed locally and that Trevor Howard will continue to be the head brewer. The company also noted that the move gives it support “for growth beyond Oregon.”

Financial details were not disclosed. Hop Valley grew production to 38,500 barrels (44,000 hl) beer in 2015, according to Brewers Association records. Currently distributed throughout Oregon, Washington, California, Idaho and Vermont, the company is expected to produce as much as 60,000 barrels (70,000 hl) beer in 2016.

The Hop Valley transaction was announced just days after Miller Coors on 20 July 2016 confirmed that its Tenth and Blake division had acquired a majority stake in one of Georgia’s most popular craft brewers, Terrapin. Founded in 2002, Terrapin had grown so quickly that in 2012 it found itself strapped for cash. Entering into a “partnership” with MillerCoors, which gave the Big Brewer a 25 percent stake, allowed Terrapin to purchase new fermenters and a new 100-barrel brewhouse.

Again, the terms of the transaction were not disclosed. This year, Terrapin hopes to produce more than 64,000 barrels (75,000 hl) beer.

In less than a year MillerCoors has deepened its craft bench, one that now includes San Diego’s Saint Archer, Georgia’s Terrapin and Oregon’s Hop Valley, in addition to large-scale craft brands like Blue Moon and Jacob Leinenkugel Brewing Company.