Victory and Southern tier to begin alliance.
Victory Brewing Co. of Downington, PA, and Southern Tier Brewing Co. have announced an alliance under parent company Artisanal Brewing Ventures (ABV).
ABV is a private-equity backed holding company formed by Southern Tier founders Phineas and Sara DeMink and Ulysses Management LLC.
Southern Tier sold a majority stake to Ulysses Management in 2014.
Under the terms of the deal, the Victory and Southern Tier leadership teams and employees will remain intact. Bill Covaleski and Ron Barchet of Victory, will become shareholders in ABV, and will join the ABV Board of Directors.
Victory and Southern Tier will independently operate their breweries under the ABV umbrella, with combined 2015 shipments of over 250,000 barrels, and joint capacity of over 800,000 barrels.
ABV will oversee collaborative sales and marketing efforts and manage distributor and retail partnerships."This is the ultimate craft beer collaboration," said John Coleman, CEO of ABV. "I look forward to guiding these two truly great organizations forward as they collaborate, innovate and share best practices."
"The craft beer community is at its most critical moment since its inception as larger corporations have bought into our grassroots movement, irrevocably changing the marketplace," said Bill Covaleski, founder and brewmaster of Victory. "Like-minded brewers such as Victory and Southern Tier can preserve our character, culture and products by banding together. Allied we can continue to innovate and best serve the audience who fueled our growth with their thirst."
"This is exactly the kind of alliance we imagined when we created Artisanal Brewing Ventures in 2014," said Phin DeMink, founder of Southern Tier Brewing Co. and also a major shareholder in ABV. "This is a concept that was specifically designed by and for craft brewers, so we can focus on the things we're best at while creating meaningful scale advantages. I'm proud to see this model validated and am grateful that my friends Ron and Bill have become our partners."
The transaction is expected to close within the next 60 days.
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|Publication:||Modern Brewery Age|
|Date:||Feb 29, 2016|
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