Show notes
Craft Brew News 09/06/19
(Courtesy of Brewbound.com)
https://www.brewbound.com/
Night Shift to Open $10 Million Brewery in Philadelphia, Expand Production in Everett, MA
Everett, Massachusetts-based Night Shift Brewing announced plans Wednesday to open a $10 million, 130,000 sq. ft. production brewery in Philadelphia.
Speaking to Brewbound, Night Shift co-founder Michael Oxton said the company is “committed” to opening the new brewery before the end of 2020.
The Philadelphia project is being financed through a combination of cash flow and bank debt, he added.
Night Shift’s three founders — Oxton, Rob Burns and Michael O’Mara — collectively own about 80% of the business, with friends and family holding the remaining stake in the company.
Oxton said “Since our beginning, we haven’t taken on any more investors and we have no plans to do so,”. “Our runway is fiercely independent for 100-plus years, and we have no plans of raising outside capital and letting another firm sort of dictate our decisions.”
Earlier this month, the Philadelphia Board of Zoning Adjustment approved Night Shift’s permit to operate a taproom inside a former Anheuser-Busch wholesaler warehouse, according to the Boston Globe, which first reported the story Wednesday.
In Philadelphia, Night Shift will lease the building, which is already equipped with refrigeration space, loading docks and a potential taproom location. The company plans to install a 100-barrel brewhouse in the space, which will immediately unlock 30,000 barrels of initial capacity. Over time, Night Shift could scale production at the facility to 200,000 barrels of capacity, although Oxton stressed that Night Shift remains committed to a philosophy of letting demand dictate growth.
In addition to opening the Philadelphia brewery, Night Shift is upgrading its Everett headquarters, replacing its 20-barrel brewhouse with a 60-barrel system. The new brewhouse is expected to be operational next month.
All of that demand has Night Shift on pace for 50% volume growth by the end of 2019. Oxton projects the company will produce more than 40,000 barrels, up from around 30,000 barrels in 2018.
Craft Brew Alliance Exploring All Options in the Wake of No Offer from A-B
Craft Brew Alliance CEO Andy Thomas had a rare off-cycle conference call with investors and analysts today after his company’s largest playmate, Anheuser-Busch InBev, declined its long-held option to purchase the Portland, Oregon-headquartered craft beer maker.
The call came two weeks after the August 23 deadline for A-B, which already owns 31.3% of CBA, to make an offer of $24.50 per share (about $328 million) to purchase the remainder of the company or pay a one-time fee of $20 million. A-B opted for the latter, leaving questions about the world’s largest beer manufacturer’s future interest in the smaller beer company known for brands such as Kona Brewing, Widmer Brothers, Redhook and others.
Since that time, CBA’s stock (BREW) has declined from $12.96 on August 22, the day before the deadline, to $9.28 at the end of trading today. It has sparked speculation that CBA might look to sell to another suitor or divest its brands, including fast-growing Kona. Another narrative emerged saying CBA and/or Kona were too entangled with A-B to ever be unlinked.
Thomas stressed that CBA’s management team is being “exhaustive” in making sure all options are considered before choosing the correct path forward. The company’s leadership team has begun working with independent board members, bankers and external advisors to explore alternatives, “strategic and otherwise,” and the conversations with A-B have continued as CBA tries to understand what a future relationship looks like, he said.
“We wouldn’t be in...
(Courtesy of Brewbound.com)
https://www.brewbound.com/
Night Shift to Open $10 Million Brewery in Philadelphia, Expand Production in Everett, MA
Everett, Massachusetts-based Night Shift Brewing announced plans Wednesday to open a $10 million, 130,000 sq. ft. production brewery in Philadelphia.
Speaking to Brewbound, Night Shift co-founder Michael Oxton said the company is “committed” to opening the new brewery before the end of 2020.
The Philadelphia project is being financed through a combination of cash flow and bank debt, he added.
Night Shift’s three founders — Oxton, Rob Burns and Michael O’Mara — collectively own about 80% of the business, with friends and family holding the remaining stake in the company.
Oxton said “Since our beginning, we haven’t taken on any more investors and we have no plans to do so,”. “Our runway is fiercely independent for 100-plus years, and we have no plans of raising outside capital and letting another firm sort of dictate our decisions.”
Earlier this month, the Philadelphia Board of Zoning Adjustment approved Night Shift’s permit to operate a taproom inside a former Anheuser-Busch wholesaler warehouse, according to the Boston Globe, which first reported the story Wednesday.
In Philadelphia, Night Shift will lease the building, which is already equipped with refrigeration space, loading docks and a potential taproom location. The company plans to install a 100-barrel brewhouse in the space, which will immediately unlock 30,000 barrels of initial capacity. Over time, Night Shift could scale production at the facility to 200,000 barrels of capacity, although Oxton stressed that Night Shift remains committed to a philosophy of letting demand dictate growth.
In addition to opening the Philadelphia brewery, Night Shift is upgrading its Everett headquarters, replacing its 20-barrel brewhouse with a 60-barrel system. The new brewhouse is expected to be operational next month.
All of that demand has Night Shift on pace for 50% volume growth by the end of 2019. Oxton projects the company will produce more than 40,000 barrels, up from around 30,000 barrels in 2018.
Craft Brew Alliance Exploring All Options in the Wake of No Offer from A-B
Craft Brew Alliance CEO Andy Thomas had a rare off-cycle conference call with investors and analysts today after his company’s largest playmate, Anheuser-Busch InBev, declined its long-held option to purchase the Portland, Oregon-headquartered craft beer maker.
The call came two weeks after the August 23 deadline for A-B, which already owns 31.3% of CBA, to make an offer of $24.50 per share (about $328 million) to purchase the remainder of the company or pay a one-time fee of $20 million. A-B opted for the latter, leaving questions about the world’s largest beer manufacturer’s future interest in the smaller beer company known for brands such as Kona Brewing, Widmer Brothers, Redhook and others.
Since that time, CBA’s stock (BREW) has declined from $12.96 on August 22, the day before the deadline, to $9.28 at the end of trading today. It has sparked speculation that CBA might look to sell to another suitor or divest its brands, including fast-growing Kona. Another narrative emerged saying CBA and/or Kona were too entangled with A-B to ever be unlinked.
Thomas stressed that CBA’s management team is being “exhaustive” in making sure all options are considered before choosing the correct path forward. The company’s leadership team has begun working with independent board members, bankers and external advisors to explore alternatives, “strategic and otherwise,” and the conversations with A-B have continued as CBA tries to understand what a future relationship looks like, he said.
“We wouldn’t be in...
