Stone Brewing’s Post

Congrats to Athletic Brewing Co. on their $50M raise at an $800 million valuation. Bill Shufelt has built an impressive company and is leading the non-alcohol beer segment. A lot of people asked me if Athletic Capital invested in this round. We didn't. Here are the 3 reasons why: 1. Valuation - Despite Athletic Brewing being a fast growing, category leading brand, the valuation doesn't make sense to me. Private equity investors usually target investment returns of 3-4x. At an $800M valuation, that means that Athletic has to grow to $2.4-$3.2B company. This would make it approximately the same valuation as publicly traded Samuel Adams. Beyond its namesake beers, Samuel Adams also owns Truly, Angry Orchard, Twisted Tea, and Dogfish Head. It does $2B/year in revenue compared to Athletic's ~$100M in revenue. I'm doubtful Athletic will generate $2B anytime soon to reach the revenue required for a 3-4x return. 2. Market Size - Athletic Brewing owns ~20% of the non-alcohol market, which means that the total market for brewer's revenue is ~$500M (the market size is larger if you account for retail revenue, which is ~2x brewer revenue). If Athletic holds onto its 20% share, the non-alcohol market has to grow 20x for Athletic to reach the revenue of Samuel Adams. I am doubtful that the market grows 20x anytime soon, as the alcohol market goes through fads every few years (remember Smirnoff Ice... Lime a Ritas... Hard Ciders... Hard Root Beers... Hard Seltzers...). Non-alcohol beer is having a moment due to a post-covid hangover, but history says that it will not last, and won't grow 20x... 3. Market Share- Even if the non-alcohol beer market grows 20x, I am doubtful that Athletic Brewing holds on to its 20% market share. Unfortunately, Athletic Brewing is viewed as a craft brewery. The largest craft brewery in the US is Yuengling, and it owns ~10% of the craft industry. There is a long tail of ~10k craft brewers that make up the other 90% and consumer preference tends towards local breweries. All of these local breweries can make non-alcoholic beers, and many are now starting to because they see Athletic making money. This will lead to increased competition and declining market share as local breweries grow their offerings. My guess is that Athletic will have less than 10% share of the non-alcoholic beer industry in three years (and the industry will be smaller than expected). For these reasons, I don't think that Athletic's valuation grows much further. Maybe someone like Dr. Pepper/Coke/Pepsi buys the company for $1 billion to put a toe in the beer cooler, but I don't think they can justify much beyond this. Therefore, I don't think this round was a good investment opportunity. Let me know if you think my reasoning is flawed and we should have invested. https://lnkd.in/gqWMB2vG

Family breweries collaborate on new brew 🍻🤝 Arkell's Brewery and Donnington Brewery, two historic names in British brewing have collaborated to launch a new beer. The brew team from Arkell’s Brewery in Swindon joined forces with the team at Donnington Brewery in Stow-on-the-Wold (Gloucestershire), where they used the renowned spring water to mill, mash, and boil the beer. The Spring water (or in brewing terms 'liquor') is drawn from the spring beside the mill pond and is known for giving Donnington beers their signature taste. The unfermented brew was then transported to Arkell’s Brewery, where it underwent fermentation using their specialist lager tanks and house lager yeast. The result is a remarkable four per cent ABV cask lager, known as Donkels—a nod to the German Dunkel style and a play on the breweries' names. This beer is characterised by its light, refreshing, and crisp profile, its sweetness, and its depth of flavour, all complemented by a soft condition from natural cask carbonation rather than forced carbonation from CO2. By blending the unique qualities and brewing traditions of both breweries, this collaboration has resulted in a beer that stands apart from anything either has produced on their own. Continue reading... https://lnkd.in/e_eYkNnT #partnership #collab #brewery #brewing #familybusiness #southwest #businessnews #businessintelligence

Check out the latest report from IMIR Market Research Pvt. Ltd. on the 𝗖𝗿𝗮𝗳𝘁 𝗕𝗲𝗲𝗿 𝗠𝗮𝗿𝗸𝗲𝘁 Outlook and Geography Forecast till 2028 Don't miss out on this opportunity to stay informed about the latest trends in the industry. Craft Beer Market Size, Share & Trends Analysis Report By Type (Pilsners, Pale Lagers, Specialty Beers, Ales, Others), By Ingredient (Enzymes, Hops, Malt, Yeast, Others), By Distribution Channel (On-Trade, Off-Trade), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2022 - 2028 Global Craft Beer Market size was valued at USD 47.32 Billion in 2021 and is projected to reach USD 104.43 Billion by 2028, growing at a CAGR of 12.64% from 2021 to 2028 according to a new report by Intellectual Market Insights Research. 📚 𝗥𝗲𝗾𝘂𝗲𝘀𝘁 𝗳𝗼𝗿 𝗳𝗿𝗲𝗲 𝘀𝗮𝗺𝗽𝗹𝗲 𝗥𝗲𝗽𝗼𝗿𝘁:👇 https://lnkd.in/gyyV3J6A A&W Restaurants, Inc. Abita Brewing Co. Anheuser-Busch InBev Ukraine (SUN InBev) Artisanal Brewing Ventures Asahi Group Holdings Asia Pacific Breweries Singapore (Part of The HEINEKEN Company) Athletic Brewing Co. Ballast Point Brewing Company Beijing Enterprises Group Company Lmited  Bell's Healthcare Blaze Pizza, LLC Bradshaw International Brasserie De La Senne BrewDog Brewhouse & Kitchen Bricktown Brewery BUXTON BREWERY COMPANY LTD. Feldschlösschen Getränke AG Carlsberg Group Carlsberg Marston's Brewing Company Chop Steakhouse & Bar CLOUDWATER BREW CO LTD Clyde's Restaurant Group Columbia Distributing Constellation Brands CRAFT Beer Market Cunningham Restaurant Group D.G. Yuengling & Son, Inc. Deschutes Brewery Dewey's Pizza Guinness Ghana Breweries PLC (Diageo) Dog Haus Dogfish Head Drake's Duvel Moortgat Eureka! Restaurant Group Feral Brewing Company Firebirds Wood Fired Grill Firestone Walker Brewing Company

Check out the latest report from IMIR Market Research Pvt. Ltd. on the 𝗖𝗿𝗮𝗳𝘁 𝗕𝗲𝗲𝗿 𝗠𝗮𝗿𝗸𝗲𝘁 Outlook and Geography Forecast till 2028 Don't miss out on this opportunity to stay informed about the latest trends in the industry. Craft Beer Market Size, Share & Trends Analysis Report By Type (Pilsners, Pale Lagers, Specialty Beers, Ales, Others), By Ingredient (Enzymes, Hops, Malt, Yeast, Others), By Distribution Channel (On-Trade, Off-Trade), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2022 - 2028 Global Craft Beer Market size was valued at USD 47.32 Billion in 2021 and is projected to reach USD 104.43 Billion by 2028, growing at a CAGR of 12.64% from 2021 to 2028 according to a new report by Intellectual Market Insights Research. 📚 𝗥𝗲𝗾𝘂𝗲𝘀𝘁 𝗳𝗼𝗿 𝗳𝗿𝗲𝗲 𝘀𝗮𝗺𝗽𝗹𝗲 𝗥𝗲𝗽𝗼𝗿𝘁:👇 https://lnkd.in/gyyV3J6A German Kraft Brewing Gordon Biersch Brewery Restaurant Granite City Food & Brewery The HEINEKEN Company Hopdoddy Burger Bar Iron Hill Brewery Karl Strauss Brewing Company Lagunitas Brewing Company Lazy Dog Restaurant & Bar LERVIG Magic Rock Brewing Co.   Maletis Beverage McMenamins Pubs & Breweries Mellow Mushroom Mikkeller Minhas Craft Brewery Molson Coors Beverage Company New Belgium Brewing Old Chicago Restaurants Omer Vander Ghinste Oskar Blues Brewery Reyes Holdings Rock & Brews Restaurants Rock Bottom Restaurant & Brewery Rubio's Restaurants, Inc. Salt Lake Brewing Co., L.C. Sam Adams Sedona Taphouse Sierra Nevada Brewing Co.  Sleeman Breweries Ltd. Squatters Pub and Beers Stone & Wood Brewing Company Stone Brewing Royal Swinkels Taco Mac Restaurant Group The Boston Beer Company The City Pub Group Plc The Gambrinus Company THE LAGUNITAS BREWING COMPANY UK LIMITED

Ethiopian Breweries Cutthroat Rivalries/Competition marvel In Ethiopia's fiercely competitive brewery industry, a troubling trend has emerged: major players resorting to coercive tactics to maintain their dominance. One such strategy involves strong-arming beer outlets into kicking out competitors' products, driven by a palpable fear of losing market share. Let's unpack this unsettling phenomenon. Reports abound of brewery behemoths pressuring beer outlets – from bars and restaurants to liquor stores – to exclusively stock their products while ousting those of competitors. This heavy-handed approach not only stifles consumer choice but also stifles the growth & diversity of the industry. The motivations behind such tactics are clear: fear of losing market share and revenue to rival brands. By monopolizing shelf space and visibility, dominant players seek to maintain their stranglehold on the market, effectively shutting out smaller competitors and limiting consumer options. Furthermore, these coercive practices undermine the principles of fair competition and free market dynamics. Instead of allowing consumers to make informed choices based on quality, taste, and preference, brewery giants seek to dictate their decisions through intimidation and coercion. Moreover, the ripple effects of this behavior extend beyond the confines of the brewery industry. Beer outlets, faced with pressure to comply with the demands of dominant players, find themselves caught in a precarious position, torn between profitability and principles. In the face of such challenges, it is imperative for regulators to step in and uphold the principles of fair competition. Measures to prevent anti-competitive behavior, such as price-fixing and monopolistic practices, are essential to fostering a level playing field for all players in the industry. Finally, the brewing rivalries unfolding in Ethiopia underscore the transformative power of competition. While big companies may resort to small and dirty tactics out of fear, the true winners are those who embrace innovation, integrity, and fair play. As the industry continues to evolve, may the spirit of healthy competition prevail, ushering in a new era of growth and prosperity for all stakeholders. Cheers 🍻 (All ideas & points here are my personal views, not attached or related to other parties)

When it comes to choosing a beer, the decision isn’t always just between light or dark or hoppy and malty; it’s a choice between supporting small scale innovation or indulging in the familiarity of well-established commercial brands. Whether it’s a local brewery producing a limited run of fruit-forward experimental IPAs or a global beer group producing 10,000 HL of a core lager, both share the same fundamental goal: to create high-quality, great-tasting beer. In our latest blog piece, we explore the distinct quality control challenges faced by craft breweries and large producers, shining a spotlight on what each can learn from the other’s approach to beer production. https://lnkd.in/etEUk4s8

Wow! People don't like craft beer anymore? A sad day for us beer drinkers. "'An end of an era' with Singapore's Archipelago Brewery set to close The brewery will close at the end of June due to "declining craft beer market realities and high operational costs", Asia Pacific Breweries Singapore told CNA." Singapore Blonde and Belgian Witt were two of my favourite beers from Archipelago so this is a shock. I think that in recent years their distribution and marketing has not been up to scratch as I struggled to find these beers in Sentosa for example but the beers themselves are fantastic. It's a sad state of affairs if people prefer the overly chemically enhanced Tiger to Singapore Blonde. I think APB blaming people's tastes is wrong if you look at data from the largest craft beer market, the US: "In the US, retail dollar sales of craft increased 3%, to $28.9 billion, and now account for 24.7% of the $117 billion U.S. beer market (previously $115 billion). The primary reasons for the larger dollar sales increase were price increases and slightly stronger onsite sales growth versus distribution." APB couldn't do the same thing here What do you think? If you’re an entrepreneur and would like help finding new clients our Ultimate LinkedIn marketing and personal branding services can do this for you, details here : https://lnkd.in/dqWRi6EZ https://lnkd.in/gpw5PB9y

How to destroy the Ontario Craft Brewing Industry in 5 simple steps; Step 1:  Close down all restaurants and bars during COVID, the most profitable channel for most Ontario Craft Breweries.  A lot didn’t survive this step, with a record number of craft breweries closing their doors and/or being acquired by larger breweries. Step 2:  Write a big fat cheque to The Beer Store to prematurely dismantle the MFA, to the tune of $225 million.  Note; The Beer Store is owned by the “Big Three” foreign owned beer conglomerates (Molson-Coors, Anheuser-Busch InBev (Labatt) and Sapporo (Sleeman). Step 3:  Roll out beverage alcohol retail reform, allowing convenience store to apply for licenses to sell beer.  A channel that will favor the “Big Three”, who now have $225 million dollars to play with to completely monopolize this new retail channel.  Increase distribution to an estimated 8,500 new licensed outlets, that will inflate distribution and sales cost, without increasing beer sales.  And as an added bonus, eliminate tens of thousands of student jobs that now require stores to hire folks who are 18 years or older and smart-certified to sell alcohol. Step 4:  Don’t offer Ontario Craft Breweries any form of tax relief, so that they can attempt to complete in new sales channel.  Note; Ontario provincial tax is higher than any other province in Canada. Step 5:  Allow the biggest retail supporter of Ontario Craft Beer to strike, effectively closing down all LCBO’s for a minimum 2 weeks, drying up revenue that most Ontario Craft Breweries rely on to stay operational. Good job Ontario Government.  But hey, soon you’ll be able to pick up a 30 pack of Bud Light when you gas up at your local gas station.

Tilray Brands Does It Again by Acquiring Four Craft Beer Breweries from Molson Coors Beverage Company Tilray Brands, which calls itself a global lifestyle consumer packaged goods company elevating lives through moments of connection, today announced that the Company has entered into a definitive agreement to acquire four craft breweries from Molson Coors Beverage Company (“Molson Coors”) (NYSE: TAP). The acquisition includes Hop Valley Brewing Company, Terrapin Beer Co., Revolver Brewing, and Atwater Brewery. Tilray has made a clear statement as of late that it intends to continue to invest in the craft beer industry through strategic acquisitions. However, unlike many others, Tilray actually supports its craft breweries, accelerating their growth and capturing a wide range of new market opportunities. Tilray's beverage business is poised for even greater success with the latest addition of sought-after craft beer brands, known for their unique portfolio of beers. With the pending acquisition of these breweries, Tilray’s portfolio will expand across key beer markets adding 30% new beer buying accounts. The Tilray Beverages portfolio boasts a range of leading craft beer, spirits and non-alcohol beverages including SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company, Green Flash Brewing Company, Shock Top, Breckenridge Brewery, Breckenridge Distillery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewing Company, Widmer Brothers Brewing, Square Mile Cider Company, HiBall Energy, and Happy Flower CBD sparkling cocktails. This strategic acquisition is expected to position Tilray for continued growth and expansion in the beverage industry. As some of you may recall, Irwin D. Simon, Chairman and Chief Executive Officer, Tilray Brands knows a thing or two about strategic acquisitions. As the founder and CEO of Hain Celestial from 1993 to 2018, he pursued 55 acquisitions as he built up the health foods and supplements company, gaining a reputation on Wall Street as an expert dealmaker. After leaving Hain Celestial in 2018, Simon joined the board of Canadian cannabis company Aphria. He took over as CEO in March 2019, then helped engineer a $4 billion merger with rival Canadian cannabis giant Tilray, where he presently sits as CEO of the combined company, which retained the Tilray name. While not the first merger between alcoholic beverage brands and cannabis (remember that Constellation Brands, a premium wine & spirits brand portfolio, has invested over $4 billion in acquiring Canopy Growth), it sure seems like cannabis companies are banking on the future of cannabis infused beverage. Just to give you an idea of what that could look like; the U.S. hemp-derived cannabinoid market is “conservatively” estimated to be $28.4 billion, according to Whitney Economics' “2023 National Cannabinoid Report,” making the market size the same as the 2022 craft beer market. Swirl that around in your mouth for a bit.

CLAG Brewing Company | You Wouldn’t Drink a Clear IPA One of the PorchDrinking team’s favorite things about craft beer journalism is the people you meet and the stories they share with us. People are what makes the craft brewing community interesting. Don’t get us wrong, we love trying beers and we get to sample some of the best in the country, but the people are what make it interesting and fun. So let’s meet the people behind the Sandusky, Ohio-based CLAG Brewing Company . Hello, My Name is: CLAG Brewing Company is an intriguing brewery name—it’s actually an acronym for Cocky Little Asian Guy. Yes, you read that right. Head brewer Kevin Kowalski gave us some insight about the name and the brewery. Kowalski explained that brewery owner Kha Bui, when hanging out with friends, would more often than not be introduced to people as “the cocky little Asian guy.” “I guess he just really liked that nickname,” said Kowalski. Kha had already decided to use that name for the brewery well before bringing Kowalski on to help him. “The funny thing about the whole name is Kha might be one of the least cocky people I know,” said Kowalski. A company name like CLAG is a a surefire way to draw attention to your brewery. But while the name might draw customers in, the beer the team makes has them stay a while. A Hop Combo Love Story You Wouldn’t Drink a Clear IPA is CLAG Brewing Company’s West Coast-style Double IPA. It’s brewed with all the hops that Kowalski is currently in love with: Citra, Galaxy, Nectaron and Riwaka. “Citra has been the golden child for me as long as I can remember,” Kowalski said, so obviously it would need to be included. Following Citra and Galaxy are the relatively new kids on the hop block, Nectaron and Riwaka. Particularly, Nectaron provides passionfruit and dankness that’s similar to Galaxy, but also throws off bright peach character. Kowalski’s love for Riwaka is the smell of sweet tropical fruit—think mango, papaya and guava. “All in all, you get that dank cannabis that’s well known in the West Coast style IPAs,” Kowalski said. In addition, you also get the tropical or citrus overtones to balance it out. “Not Juicy Enough” The Hazy IPA is largely the king of IPAs at the moment, but Kowalski believes the West Coast-style IPA is slowly making a big comeback. “I feel there is a large group of IPA enthusiasts that won’t drink an IPA unless it has a super milky haze to it,” Kowalski said citing that he always hears statements like “West Coast IPAs aren’t juicy enough,” or “they are just too dry and bitter.” Kowalski’s plan for You Wouldn’t Drink a Clear IPA was to take some hops he loves from Hazy IPAs and incorporate them in a dry, crispy Double IPA. So the name is more of a joke like “this beer has elements you will like but you won’t drink it because it’s clear,” Kowalski added. Image provided by CLAG Brewing Company Also, the name and can packaging design are referen..