Good afternoon,
The news out of Milton and Boston late Thursday afternoon was a stunning development.
Dogfish Head will merge with much larger Boston Beer in a $300 million deal that had been in the works for a while.
Dogfish co-founder Sam Calagione has long warned about smaller brewers becoming caught in a vice between multinationals like InBev (Anheuser Bush) and the growing number of hyperlocals that serve a small area and have fiercely loyal followings.
Delaware alone has a couple of dozen breweries.
The Milton-based brewery and distillery will retain its identity, although it will be part of a much larger company with a large national sales force and a formidable distribution network.
Boston Beer, best known for its Sam Adams brands that pioneered the craft beer movement, comes with a different operating style and ample resources.
Boston Beer has diversified as sales waned for its flagship brand and is now a top producer in the fast-growing cider segment with its Angry Orchard brand. It also has fast-selling alcoholic fizzy water with Truly Hard Seltzer.
The biggest surprise is that Dogfish Head founders Sam and Mariah Caligione are not cashing out but will instead become sizable shareholders in Boston Beer. Sam will join the board of the brewer and will bring innovative ideas that have included beer based on evidence of the work of ancient Egypt.
We can also expect the Calagiones to become more active on the philanthropic front in Delaware.
It’s never good to see the sale of a Delaware company, especially a strong performer like Dogfish Head that proudly kept its First State identity.
But if Dogfish Head can retain its “off center” appeal while expanding its national footprint, both the Sussex County and Delaware economies will benefit.
A final note. The annual Stamp Out Hunger campaign is Saturday. If you received a blue bag from your letter carrier, add some canned goods and other suitable items and leave the bag next to your mailbox. – Doug Rainey, chief content officer.
