Local Craft Brewery, New York Brewery Team Up To Compete With Big Companies
PHILADELPHIA (CBS) -- Two craft brewing giants, one locally based, announced this week that they have joined forces to become one of the largest producers in the nation.
At a time when many medium-sized breweries are selling out to big boys like Anheuser-Busch-InBev, Downingtown-based Victory and Southern Tier of Lakewood, New York have formed an alliance under the banner of Artisanal Brewing Ventures, a private equity holding company. Victory Founder Bill Covaleski says they're following the old adage "strength in numbers."
"Coming together makes us a bigger producer. So it basically positions us better against the larger companies," he says. "I think it's also a defensive strategy. If you're a small guppy and there's a big shark swimming in the tank, you're easily swallowed. If you're a bigger fish, you're better protected from the shark."
Each brewery will continue to operate independently, says Covaleski, while the parent company provides capital for investment and expansion.
"The beautiful thing is there should be no net effect to the consumer," he says. "There's really no benefit other than perhaps a wider distribution reach and stronger distribution penetration."
The two beer companies shipped a combined 250,000 barrels last year.
