Sazerac Buys Full Sail Brewing for Production Capacity
Sazerac has acquired Oregon craft brewer Full Sail, but says it does not plan to make or distribute Full Sail beer over the long term.
The maker of Fireball has bought a craft brewery, and the beer may not be the point. Sazerac acquired Full Sail Brewing to gain manufacturing capacity for its spirits business, which it is expanding aggressively across the country.
The brewery being sold
Full Sail dates to 1987, when its founders turned an old cannery in the Mt. Hood area into a brewery called Hood River Brewing Company. It also runs a restaurant and pub.
The company was employee-owned until private equity firm Encore Consumer Capital bought it in 2015. Since then, changing consumer trends have hit the craft beer industry hard, and large producers such as Tilray Brands and Sapporo USA have cut back their brewing.
According to its website, the brewery's main beers are an amber ale, a blood orange wheat beer, IPAs and session lagers. They are sold in Arkansas, Colorado, Idaho, Montana, Oregon, Utah and Washington.
Why a spirits company wants a brewery
Sazerac has bought heavily this year to build a portfolio of ready-to-drink cocktails, the pre-mixed drinks sold in cans, and other brands for a new generation of drinkers. Its purchases include BuzzBallz and Dirty Shirley, brands that sell well to younger buyers.
More output of those brands means more production space. Sazerac is buying that space from competitors in struggling adjacent segments, and craft beer is the latest. Earlier this year it bought a shuttered Kentucky whiskey distillery to support what it called "broader production needs".
Full Sail's lines could suit the company's push into canned cocktails and ready-to-drink spirits.
What the deal covers
The sale takes in nearly all of Full Sail's Oregon assets, Sazerac told Food Dive in a statement. These are the production lines and capabilities, along with the intellectual property and other assets of the beer brand.
A company spokesperson said Sazerac does not plan to make or distribute Full Sail beer in the long term. The statement adds that the brewery's team built a strong business and production capabilities, and that the purchase adds capacity to its network.
Source: Food Dive