Terrapin Beer Company bought by MillerCoors
Steve’s breakdown: You can bet MillerCoors is going to put more advertising dollars behind Terrapin. As of right now, Terrapin does not have an AOR.
Time to belly-on-up to the bar!
ATHENS, GA: In the latest example of Big Beer buying craft breweries, Chicago-based MillerCoors announced Wednesday an agreement to acquire a majority interest in Athens, Ga.-based Terrapin Beer Co.
Terrapin, known for beers such as the Hopsecutioner IPA and the Wake N’ Bake Coffee Oatmeal Stout, will join the MillerCoors’ craft and imports division known as Tenth and Blake. MillerCoors first bought a minority interest in Terrapin in 2012. Terms of the deal, which is expected to close in August, were not disclosed.
“It’s a highly regarded craft brewery. … More than anything, it allows Tenth and Blake to offer award-winning IPAs,” said MillerCoors spokesman Marty Maloney.
Business is hopping for the Georgia brewery. In grocery stores alone, Terrapin sales — led by the top-selling Hopsecutioner — grew to about $4 million, between January and July 10, an increase of almost 35 percent from $2.9 million a year ago, according to data from Chicago-based market research firm IRI.
The deal also allows MillerCoors to dip a toe in the Southern craft beer market, which Maloney described as “underdeveloped and rapidly growing.”
Lagunitas Brewing recently announced it would acquire a majority stake in Charleston, S.C.’s Southend Brewery & Smokehouse, which will be turned into a Lagunitas tap room. More of such deals could come as larger beer companies eye opportunities to cash in on the recent proliferation of craft beers throughout the South.
Currently, the Tenth and Blake division includes Blue Moon Brewing Co., Jacob Leinenkugel Brewing Co. and Saint Archer Brewing Co. Once Terrapin joins the roster, it will cease to be a craft brewery, at least according to the Brewers Association, which defines American craft breweries are “small, independent and traditional.”
Terrapin beer sells in 12 Southeast states and the District of Columbia, Maloney said.
“With Tenth and Blake’s dedication to helping us grow and their passion for creating high-quality craft beers, we knew it would be the perfect partnership. We look forward to continuing to create innovative beers to share with beer lovers nationwide,” said Brian “Spike” Buckowski, Terrapin co-founder, in a news release Wednesday.