Beverage Stock Review

[Roland Rick Perry]

5 ways to get ahead in the craft beer business.

Another week, another craft brewery that wants to buy other breweries.

I’ve hinted at this, , but can't honestly say I saw it coming.

Boston-based Harpoon Brewery's co-founder Rich Doyle sold his 40% stake last year when his partners refused to bring in investors to help Harpoon buy up struggling small breweries. Well, now Doyle announced that he's teaming up with Abita Springs, La.-based craft brewer Abita and San Francisco-based private equity firm FFL to form Enjoy Beer LLC.

The purpose of this venture? To buy struggling small breweries and preserve their local autonomy, but centralize their marketing, sales, purchasing, logistics, and finance. If that sounds familiar, it may be because it's similar to the plan that Longmont, Colo.-based Oskar Blues and Boston-based Fireman Capital announced and what Brew Hub and Los Angeles-based private equity firm Yucaipa are attempting to accomplish in Florida, Missouri and elsewhere.

These deals aim at giving small brewers a chance to stabilize and grow, but they're also providing an exit strategy. As craft beer's pioneers reach retirement age and its youngest brewers struggle with increased demand and nearly 3,200 craft competitors, succession planning is no small deal.

From our vantage point, the strategy of Enjoy Beer LLC solidifies one of brewers' five ways out of the business:

http://www.marketwatch.com/story/5-ways-to-get-ahead-in-the-craft-beer-business-2015-04-14?siteid=yhoof2