Craft Brew Alliance

Craft Brew Alliance was a United States brewing company created in 2008 through the merger of Redhook Ale Brewery and Widmer Brothers Brewery. Its purpose was to give independent-minded beer brands greater scale in brewing, sales, logistics, and distribution while preserving distinct local identities. The company expanded its portfolio by acquiring Kona Brewing Company in 2010 and later developed or added brands including Omission Beer, a gluten-reduced beer line, and Square Mile Cider. Kona and Omission were treated as national-scale brands, while Redhook and Widmer Brothers were principally regional brands. The company’s growth model combined owned brands with partnerships and acquisitions. It entered strategic relationships with Appalachian Mountain Brewery in North Carolina, Cisco Brewers in Massachusetts, and Wynwood Brewing in Florida. These arrangements used Craft Brew Alliance as a master distributor, allowing partner products to access the Anheuser-Busch InBev distributor network. In October 2018, the company announced transactions that brought Appalachian Mountain Brewery and Wynwood Brewing under full ownership and acquired the malt-beverage intellectual-property assets associated with Cisco. Cisco’s founders retained ownership and operation of the company’s brewpub and related retail properties. Craft Brew Alliance was also closely connected to Anheuser-Busch InBev. In December 2010, Anheuser-Busch acquired a 32.2 percent interest, became a distribution partner, and received representation and special rights involving Craft Brew Alliance’s board and committees. The relationship gave the smaller brewer access to a nationwide distribution infrastructure, but it also complicated the company’s status within the craft-beer sector. The Brewers Association’s definition of an American craft brewer required substantial independence from a large brewing company, and Craft Brew Alliance no longer met that independence criterion after Anheuser-Busch InBev’s investment. The company traded publicly in the United States, first under the HOOK ticker and later under Nasdaq ticker BREW. In August 2019, Anheuser-Busch InBev paid Craft Brew Alliance $20 million rather than exercising an option to purchase the remaining shares at $24.50 per share. The announcement was followed by a decline of more than 20 percent in Craft Brew Alliance’s share price. In November 2019, Anheuser-Busch InBev agreed to purchase the remaining equity for $16.50 per share, valuing the transaction at approximately $220 million. The acquisition was completed in 2020, after which Craft Brew Alliance ceased to operate as an independent publicly traded company and its assets and brands were integrated into Anheuser-Busch InBev’s operations. The former portfolio included Redhook beers such as ESB and IPA; Widmer Brothers beers such as Hefe, Drop Top Amber Ale, and Upheaval IPA; Kona beers such as Longboard Island Lager; Omission’s gluten-reduced offerings; and Square Mile’s hard ciders. The company also promoted operational sustainability through renewable-energy investments, closed-loop systems, and brewery-management software intended to monitor energy and production performance in real time. Following the parent company’s later portfolio changes, Redhook and Widmer Brothers were sold to Tilray Brands in August 2023, while other former Craft Brew-associated assets experienced separate ownership changes.

Craft Brew Alliance was formed on July 1, 2008, when Redhook Ale Brewery and Widmer Brothers Brewery combined. The merger created a larger brewing organization while retaining two established regional identities. The company initially operated under the name Craft Brewers Alliance and changed to Craft Brew Alliance in January 2012. An important expansion came in 2010, when Craft Brew Alliance acquired Kona Brewing Company. Kona, founded in Hawaii in 1994, became one of the organization’s principal national brands. In the same year, Anheuser-Busch InBev acquired a 32.2 percent stake in Craft Brew Alliance. The investment was accompanied by distribution cooperation, board seats, and special committee rights. This arrangement gave Craft Brew Alliance access to a large distribution system but meant it no longer satisfied the Brewers Association’s independence standard for an American craft brewer. The portfolio broadened in the early 2010s. In 2012, the company introduced Omission Beer, positioned around beer made with traditional barley but processed with an enzyme intended to reduce gluten. In 2013, it launched Square Mile Cider, adding hard cider to a principally beer-focused business. The company also participated in a 2014 collaboration involving the Chive and the KCCO beer brand under the Resignation Brewery name. Craft Brew Alliance pursued a partnership-led expansion strategy with smaller regional brewers. In December 2014, it partnered with Appalachian Mountain Brewery in Boone, North Carolina, taking a minority stake and serving as master distributor. In September 2015, it established a similar relationship with Cisco Brewers of Nantucket, Massachusetts. In December 2016, it acquired a 24.5 percent interest in Wynwood Brewing of Miami. These partnerships used the Anheuser-Busch InBev distributor network to extend the reach of partner products. On October 10, 2018, Craft Brew Alliance announced transactions that consolidated several of these relationships. It acquired the Appalachian Mountain Brewery brand, brewery, and pub, with the transaction closing on November 29, 2018. It also acquired the remaining interest in Wynwood Brewing, while the Brignoni family continued to operate the brewery. For Cisco, Craft Brew Alliance acquired intellectual-property assets connected to malt beverages, while Cisco’s founders retained the brewpub properties, original brewery, and related retail merchandising. The company became publicly traded under the HOOK ticker before moving to Nasdaq under BREW on March 15, 2012. The Brewers Association ranked it as the ninth-largest United States brewing company by 2015 sales volume, with reported volume of 824,400 and annual working capacity of about 1,075,000 barrels. Craft Brew Alliance also reported operational initiatives involving renewable energy, closed-loop systems, energy intensity, and brewery-management software for tracking performance. The relationship with Anheuser-Busch InBev ultimately led to a change in ownership. In August 2019, Anheuser-Busch InBev paid $20 million instead of exercising a contractual option to purchase the remaining shares at $24.50 per share. The market reacted negatively, and Craft Brew Alliance shares fell by more than 20 percent. In November 2019, the parties agreed to a lower offer of $16.50 per share, described as approximately $220 million in total consideration. The acquisition was completed in 2020, after which Craft Brew Alliance was integrated into Anheuser-Busch InBev and ceased to exist as an independent listed company. The former portfolio later underwent additional restructuring. In August 2023, Anheuser-Busch sold Redhook and Widmer Brothers to Tilray Brands. Appalachian Mountain Brewery’s former owners also announced a 2023 repurchase and a move away from Anheuser-Busch-related ties. These later transactions illustrate how the collection of brands and assets assembled under Craft Brew Alliance was subsequently separated or reorganized after the parent-company acquisition.

1. 2020Anheuser-Busch InBev completes acquisition

   The company is acquired by Anheuser-Busch InBev and ceases to operate as an independent public company.

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2. 2018Partner assets are consolidated

   Craft Brew Alliance announces full ownership of Appalachian Mountain Brewery and Wynwood Brewing and acquires Cisco malt-beverage intellectual property.

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3. 2013Square Mile Cider launches

   Craft Brew Alliance enters the hard-cider category with Square Mile.

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4. 2012Name change and public listing under BREW

   The company adopts the Craft Brew Alliance name and begins trading on Nasdaq under BREW after previously trading as HOOK.

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5. 2012Omission Beer launches

   The company introduces a gluten-reduced beer brand made using a proprietary enzyme process.

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6. 2010Kona Brewing Company joins the group

   Craft Brew Alliance acquires Kona Brewing Company and Anheuser-Busch InBev acquires a 32.2 percent interest in Craft Brew Alliance.

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7. 2008Redhook and Widmer Brothers merge

   Craft Brew Alliance is formed through the merger of Redhook Ale Brewery and Widmer Brothers Brewery.

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A multi-brand craft-beverage platform combining local brewery identities with national production, sales, and distribution capabilities.

• Kona Brewing CompanyBeer brand1994

  Kona was founded in Hawaii in 1994 and became Craft Brew Alliance’s principal national-scale beer brand. Its portfolio included beers such as Longboard Island Lager and other island-themed ales and lagers. Kona provided the group with a broader geographic identity than its Pacific Northwest regional brands and was one of the most visible brands in the former company portfolio.

• RedhookBeer brand

  Redhook originated in Seattle’s Ballard neighborhood in the early 1980s. Under Craft Brew Alliance, its portfolio included ESB, IPA, Pilsner, Copperhook, and seasonal beers. Redhook functioned primarily as a regional brand within the alliance and was later sold by Anheuser-Busch to Tilray Brands in 2023.

• Widmer Brothers BrewingBeer brand

  Widmer Brothers was one of the two breweries whose 2008 merger created Craft Brew Alliance. Its portfolio included Widmer Hefe, Drop Top Amber Ale, Upheaval IPA, Steel Bridge Porter, PDX Pils, seasonal beers, and small-batch offerings brewed at its Portland facility. The brand was later sold by Anheuser-Busch to Tilray Brands in 2023.

• Omission BeerGluten-reduced beer2012

  Launched in 2012, Omission was developed for drinkers seeking beer with reduced gluten content. It used traditional beer ingredients, including malted barley, and a proprietary enzyme process intended to remove or reduce gluten during production. The brand was positioned as a specialized, nationally distributed line within Craft Brew Alliance’s portfolio.

• Square Mile CiderHard cider2013

  Square Mile Cider represented Craft Brew Alliance’s move into cider. Its principal products included The Original, a traditional hard apple cider, and Spur & Vine, a hopped apple cider. The line complemented the company’s beer portfolio and broadened its presence in the growing United States alcoholic-beverage market.

• Appalachian Mountain BreweryBeer brewery and brand

  Appalachian Mountain Brewery, based in Boone, North Carolina, first partnered with Craft Brew Alliance in 2014. Craft Brew Alliance distributed its products through the Anheuser-Busch distributor network and later acquired the brand, brewery, and pub. The acquisition closed in November 2018. Former owners announced a repurchase in 2023 and a renewed focus on local distribution.

• Cisco BrewersBeer and malt-beverage brand

  Craft Brew Alliance partnered with Nantucket-based Cisco Brewers in 2015. In 2018, it acquired the intellectual-property assets related to Cisco’s malt beverages, while Cisco’s founders continued to own and operate the original brewery, brewpub properties, and associated retail merchandising.

• Wynwood BrewingBeer brewery and brand

  Miami-based Wynwood Brewing entered a strategic partnership with Craft Brew Alliance in 2016. Craft Brew Alliance initially acquired a 24.5 percent interest and acted as master distributor. In 2018, it acquired the remaining equity, although co-founders Luis Brignoni and his father continued operating the brewery.

• 2014KCCO beer collaboration

  United States

  Craft Brew Alliance worked with The Chive on KCCO beer, which was associated with the independently owned Resignation Brewery identity.

  Outcome. The collaboration extended the company’s brand-development activities beyond its core owned brewery portfolio.

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• 2019Agree to sale of the remaining equity to Anheuser-Busch InBevM&A

  Anheuser-Busch InBev already held a substantial minority position and had contractual rights connected with a potential purchase of the remaining shares.

  What changed. After paying $20 million instead of exercising an option at $24.50 per share, Anheuser-Busch InBev agreed to buy the remaining shares for $16.50 per share, for an announced value of approximately $220 million.

  Aftermath. The acquisition was completed in 2020, ending Craft Brew Alliance’s independent public-company status.

  Announced purchase consideration for remaining shares. $24.50 per share option price → $16.50 per share agreed offer (2019)

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• 2018Consolidate Appalachian Mountain Brewery and Wynwood BrewingM&A

  Craft Brew Alliance had previously used minority investments and master-distribution agreements to develop relationships with regional breweries.

  What changed. The company acquired full ownership of Appalachian Mountain Brewery and Wynwood Brewing and acquired Cisco’s malt-beverage intellectual-property assets.

  Aftermath. Several partner brands and assets became part of a more centralized Craft Brew Alliance portfolio, while Cisco’s founders retained their brewpub and brewery properties.

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• 2010Accept Anheuser-Busch InBev minority investment and distribution partnershipM&A

  Craft Brew Alliance sought greater production and distribution scale while maintaining a portfolio of differentiated beer brands.

  What changed. Anheuser-Busch InBev acquired 32.2 percent of the company, became a distribution partner, and received board-related rights.

  Aftermath. The arrangement expanded distribution access but meant Craft Brew Alliance no longer met the Brewers Association’s independence criterion for an American craft brewer.

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• 2023Anheuser-Busch sells Redhook and Widmer Brothers to Tilray

  Anheuser-Busch sold the Redhook and Widmer Brothers brands to Tilray Brands amid a decline in sales associated with the 2023 Bud Light boycott.

  M&AOther
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• 2020Craft Brew Alliance becomes part of Anheuser-Busch InBev

  The previously announced acquisition was completed, ending Craft Brew Alliance’s existence as an independent publicly traded company.

  M&A
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• 2019Anheuser-Busch InBev declines to exercise its purchase option

  Anheuser-Busch InBev paid $20 million instead of exercising an option to buy the remaining Craft Brew Alliance shares at $24.50 per share; Craft Brew Alliance shares fell by more than 20 percent after the announcement.

  M&APricing
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• 2019Anheuser-Busch InBev agrees to buy the remaining Craft Brew Alliance shares

  Anheuser-Busch InBev agreed to acquire the remaining equity for $16.50 per share, an announced transaction value of approximately $220 million.

  M&A
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• 2018Craft Brew Alliance announces full acquisition of partner brewery assets

  The company announced transactions involving full ownership of Appalachian Mountain Brewery and Wynwood Brewing, alongside acquisition of Cisco’s malt-beverage intellectual-property assets.

  M&A
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• 2016Craft Brew Alliance partners with Wynwood Brewing

  The company acquired a 24.5 percent interest in Wynwood Brewing and became its master distributor.

  M&A
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• 2015Craft Brew Alliance appoints Joe VanderSteldt as CFO

  Joe VanderSteldt was appointed chief financial officer during a broader change to the company’s executive leadership structure.

  Leadership change
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• 2015Craft Brew Alliance partners with Cisco Brewers

  Craft Brew Alliance took an undisclosed minority interest in Cisco Brewers and agreed to distribute its malt-beverage products through the wider network.

  M&A
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• 2014Andy Thomas appointed chief executive

  Craft Brew Alliance announced that Andy Thomas would become chief executive effective January 1, 2014.

  Leadership change
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• 2014Craft Brew Alliance forms Appalachian Mountain Brewery partnership

  The companies established a strategic partnership under which Craft Brew Alliance became Appalachian Mountain Brewery’s master distributor and took an undisclosed minority interest.

  M&A
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• 2013Craft Brew Alliance launches Square Mile Cider

  The company expanded beyond beer with Square Mile Cider, including a traditional hard apple cider and a hopped cider.

  Product launch
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• 2012Craft Brew Alliance launches Omission Beer

  The company introduced Omission, a beer line developed to reduce gluten through a proprietary enzyme process applied to traditional barley-based brewing.

  Product launch
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• 2012Craft Brew Alliance changes its corporate name

  The company changed its name from Craft Brewers Alliance to Craft Brew Alliance.

  Other
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• 2010Anheuser-Busch InBev acquires a minority stake in Craft Brew Alliance

  Anheuser-Busch acquired a 32.2 percent interest, became a distribution partner, and received board representation and special committee rights.

  M&A
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1. Craft Brew Alliance