Bruery sells majority stake to private equity firm

[daniel1]

https://www.brewbound.com/news/castanea-partners-purchases-majority-stake-bruery

Naturally, the Bruery spins it as Patrick keeps the CEO position and that he still controls a "significant" portion of the company.

 

[boogercrack]

 

[coldstorage]

I think this is a great idea. I mean right now I can only buy like... 48 bottles of chocolate rain and only like 100 black tuesdays. Now with some real cash infusion we can finally take the brakes off and I can buy my sugar mud by the pallet as god intended.

 

[RyanG1]

Is this a hot dog or not?

 

[daniel1]

Is this a hot dog or not?

 

[Stubs]

I think this is a great idea. I mean right now I can only buy like... 48 bottles of chocolate rain and only like 100 black tuesdays. Now with some real cash infusion we can finally take the brakes off and I can buy my sugar mud by the pallet as god intended.

I hope it means stout 4 packs and canned humulus.

 

[WhalezB4Rarez]

So this means Autumn Maple at Madison Square Garden, right?

 

[sunnrider]

I traded for Bruery stouts a few years back. Boozy as hell but I'd have no problem drinking more, preferably with friends.

Funnily enough, I traded with f2brewers on ba and he accidentally sent me a rum BT instead of a regular BT, when I told him, he said to enjoy it. I know he gets a lot of hate on here but he was a decent trader, very pleasant to deal with.

Private equity firms probably own quite a lot of what you like, but usually from the startup phase. It wouldn't really stop me from buying something. ABInbev involvement would.

 

[Barroomhero]

Is this a hot dog or not?

Definitely not a hot dog.

Possibly a corn dog. Details to come.

 

[Barroomhero]

Private equity firms probably own quite a lot of what you like, but usually from the startup phase. It wouldn't really stop me from buying something. ABInbev involvement would.

And this. In my eyes, private equity investment/buyout is very different than mega-brewery buyout in terms of how it potentially effects craft beer and consumers.

 

[ABSTRACTlegend]

“As part of the transaction, Castanea Partners will receive three seats on The Bruery’s newly formed board of directors. Patrick and Michael Rue will occupy the other two.”

 

[sacrelicio]

http://www.twincities.com/2017/05/11/cookie-dough-food-truck-minneapolis-st-paul-mn/

Already launched their food trucks here

 

[smithj21541]

“They are very patient investors who aren’t necessarily looking to get their money back very quickly,” Rue told Brewbound. “They are willing to wait for the right opportunity.”

Meanwhile at ABI...

 

[jdhende]

I traded for Bruery stouts a few years back. Boozy as hell but I'd have no problem drinking more, preferably with friends.

Funnily enough, I traded with f2brewers on ba and he accidentally sent me a rum BT instead of a regular BT, when I told him, he said to enjoy it. I know he gets a lot of hate on here but he was a decent trader, very pleasant to deal with.

Private equity firms probably own quite a lot of what you like, but usually from the startup phase. It wouldn't really stop me from buying something. ABInbev involvement would.

Wish I could like this twice. I've been trading with him for years and he really is one of the best.

 

[coldstorage]

I traded with f2brewers on ba and he accidentally sent me a rum BT instead of a regular BT, when I told him, he said to enjoy it. I know he gets a lot of hate on here but he was a decent trader, very pleasant to deal with.

I think you are a good guy so im going to rethink my position ...

 

[beerindex]

Personally, I'm indifferent to ownership as long as its changing doesn't result in a change for the worse to the product (including price and availability). As long as The Bruery keeps distroing here at mostly reasonable prices, I'll keep buying their beers, and trading for Reserve Society beers on those rare occasions when I trade. They're one of my favorite breweries, so I hope works out well like the PE acquisitions by Fireman.

 

[ABSTRACTlegend]

Personally, I'm indifferent to ownership as long as its changing doesn't result in a change for the worse to the product (including price and availability). As long as The Bruery keeps distroing here at mostly reasonable prices, I'll keep buying their beers, and trading for Reserve Society beers on those rare occasions when I trade. They're one of my favorite breweries, so I hope works out well like the PE acquisitions by Fireman.

 

[Kasher]

Wish I could like this twice. I've been trading with him for years and he really is one of the best.

Can you ask him about the day he went on a power trip, edited basically everything on the site and then lost his mod privileges?

 

[hornydevil]

Private equity firms probably own quite a lot of what you like, but usually from the startup phase. It wouldn't really stop me from buying something. ABInbev involvement would.

In my eyes, private equity investment/buyout is very different than mega-brewery buyout in terms of how it potentially effects craft beer and consumers.

“As part of the transaction, Castanea Partners will receive three seats on The Bruery’s newly formed board of directors. Patrick and Michael Rue will occupy the other two.”

Personally, I'm indifferent to ownership as long as its changing doesn't result in a change for the worse to the product

When people who don't know a damn thing about beer control a brewery and make important decisions for that brewery, it is BAD for that brewery and craft beer as a whole.

 

[mvl339]

When people who don't know a damn thing about beer control a brewery and make important decisions for that brewery, it is BAD for that brewery and craft beer as a whole.

 

[Lutter]

“As part of the transaction, Castanea Partners will receive three seats on The Bruery’s newly formed board of directors. Patrick and Michael Rue will occupy the other two.”

That's the part where I cringed. I could never give up that much control to a PE.... and when selling time comes around and ABI want to pony up they will have no power to stop it. They pretty much gave overall power over their company away. Patrick might still be CEO, but he's a vote away from being completely out of the company on an operational level even at the starting point of this relationship.

 

[evilc]

he gets a lot of hate on here

He is a cock-o-doodle-******.

 

[smithj21541]

That's the part where I cringed. I could never give up that much control to a PE.... and when selling time comes around and ABI want to pony up they will have no power to stop it. They pretty much gave overall power over their company away. Patrick might still be CEO, but he's a vote away from being completely out of the company on an operational level even at the starting point of this relationship.

“They are very patient investors who aren’t necessarily looking to get their money back very quickly,” Rue told Brewbound. “They are willing to wait for the right opportunity.”

Meanwhile at ABI...

 

[sacrelicio]

They will almost certainly suck just a liiiittle bit more with only two seats on the board of directors. Decisions will be made based on bean counting rather than beer.

 

[Barroomhero]

When people who don't know a damn thing about beer control a brewery and make important decisions for that brewery, it is BAD for that brewery and craft beer as a whole.

Why for craft beer as a whole? Sure, possibly bad for The Bruery; but worst case, they run it into the ground and pawn off the equipment... how's that hurt craft beer as a whole?

Private Equity investment doesn't have the same connotations as buyout by AB-Inbev in terms of effect on other parts of the beer industry.

 

[jbeezification1]

I traded for Bruery stouts a few years back. Boozy as hell but I'd have no problem drinking more, preferably with friends.

Funnily enough, I traded with f2brewers on ba and he accidentally sent me a rum BT instead of a regular BT, when I told him, he said to enjoy it. I know he gets a lot of hate on here but he was a decent trader, very pleasant to deal with.

Private equity firms probably own quite a lot of what you like, but usually from the startup phase. It wouldn't really stop me from buying something. ABInbev involvement would.

Nice try f2brewers. Nobody is falling for your ********.

 

[Stubs]

And this. In my eyes, private equity investment/buyout is very different than mega-brewery buyout in terms of how it potentially effects craft beer and consumers.

Dude private equity expects returns quicker and at the sacrifice of whatever the hell you gotta do to get there.

Also,They're taking the board already and the quickest way to make money is to sell.


ABI or whover have days and days for investments to mature. These guys USUALLY will reduce cost at any expense through their standard operation which knows nothing of nor cares about craft beer, workers, dandelions or unicorns. Just shrink costs or sell. Make a profit. Shake hands. Move on.

 

[evilc]

Does anyone actually care about this for real?

 

[Stubs]

Why for craft beer as a whole? Sure, possibly bad for The Bruery; but worst case, they run it into the ground and pawn off the equipment... how's that hurt craft beer as a whole?

Private Equity investment doesn't have the same connotations as buyout by AB-Inbev in terms of effect on other parts of the beer industry.

Remember when you made fun of my comment about where there is money to be made, those who wanna make money will find it.


These people realize that these breweries are family owned and operated by passionate people without a ton of business savvy, they'll knock on every door they can take the board, nickel and dime them to death then sell

 

[daniel1]

Does anyone actually care about this for real?

Probably not. But I didn't think anyone would care that much about the Wicked Weed thing either and look how that turned out.

 

[Stubs]

Does anyone actually care about this for real?

Not directly but in a trolly kinda way.

 

[beerindex]

Dude private equity expects returns quicker and at the sacrifice of whatever the hell you gotta do to get there.

Also,They're taking the board already and the quickest way to make money is to sell.

ABI or whover have days and days for investments to mature. These guys USUALLY will reduce cost at any expense through their standard operation which knows nothing of nor cares about craft beer, workers, dandelions or unicorns. Just shrink costs or sell. Make a profit. Shake hands. Move on.

On the other hand, Fireman seems to have done nothing objectionable with its acquisitions. So I do think it is worth taking a wait and see approach rather than assuming the worst.

Does anyone actually care about this for real?

I would if I were anti-buyout, and I'll start to care if they ruin the Bruery, because they're one of my absolute favorite breweries. But since I don't think there's much reason to expect change for the worse in the next several years, at least change that is attributable to the acquisition, I'm indifferent.

 

[sacrelicio]

Probably not. But I didn't think anyone would care that much about the Wicked Weed thing either and look how that turned out.

I see those buyouts as different because of how shitty Bud has been. And even if you're just a consumer and you don't care about ownership, you should because that means it gets harder for good new local places to open up. Gets hard to experiment and push the boundaries.

 

[hornydevil]

I see those buyouts as different because of how shitty Bud has been. And even if you're just a consumer and you don't care about ownership, you should because that means it gets harder for good new local places to open up. Gets hard to experiment and push the boundaries.

Shitty to whom? Nobody but to other breweries that they rightly see as competition, in my eyes. Breweries bought are better off. Consumers are better off.

 

[hornydevil]

Why for craft beer as a whole? Sure, possibly bad for The Bruery; but worst case, they run it into the ground and pawn off the equipment... how's that hurt craft beer as a whole?

It shows that craft breweries are a good targets for buyouts. THAT'S bad.

Private Equity investment doesn't have the same connotations as buyout by AB-Inbev in terms of effect on other parts of the beer industry.

Private Equity Firms are interested in one thing and one thing only. Money. At least ABI is peripherally interested in beer.

 

[Barroomhero]

Honestly can't tell if ya'll are trolling, or really this ignorant.

Do I really need to explain the difference between Castanea Partners and AB-Inbev?

Really?

 

[hornydevil]

Do I really need to explain the difference between Castanea Partners and AB-Inbev?

Enlighten me.

 

[Barroomhero]

Does anyone actually care about this for real?

Yes.

 

[Barroomhero]

Enlighten me.

Well... one's big, and the other one's little.

Still with me?

 

[Stubs]

Well... one's big, and the other one's little.

Still with me?

That's stupid.


Private Equity interest is worse than beer interest in beer.


Completely different landscape opening up here.