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Thursday, May 01, 2008

Go west, brewery, go west

Lest I'm accused of merely 're-blogging', I'll mention that yesterday afternoon, over a beer and a veggie 'Philly' Cheesesteak, I asked a respected reporter of the beer scene his opinion of the just announced merger/acquisition of Pyramid Brewing with/by Magic Hat Brewing Company.

He was puzzled by the cross-continental fit: both breweries produce an esoteric style, an Apricot wheat beer. He theorized that Magic Hat may have been looking to tap into Pyramid's national distribution network. As to duplication of brewing facilities, he felt that, at least initially, both breweries would remain open, but that —sooner rather than later— one would be closed down in the interest of cost efficiency (my translation: jobs lost).

It's interesting to note that Magic Hat had been one of last year's suitors for Old Dominion Brewing Company of Virginia, but eventually lost out out to the Fordham Brewing /Anheuser-Busch partnership.

As always, Lew Bryson has posted a concise analysis at his blog.

Pyramid of Seattle, Washington, was founded in 1984. Based upon barrels of beer sold, it was the 18th largest brewery in the United Sates in 2007. Magic Hat in South Burlington Vermont was founded ten years later, in 1994, and was the 22nd largest US brewery last year. (Rankings from the Brewers Association.)

Press release

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