Dogfish Head Craft Brewery disappointed some fans back in 2019 when Boston Beer (Samuel Adams) acquired the Milton-based company in a $300 million stock deal.
At the time, owners Sam and Mariah Calagione cited the pressures facing the craft brewing industry as the reason for seeking a stronger partner.
The Calagiones proved to be on target. Dogfish Head been dealing with the rise of hyperlocal breweries. (Delaware has more than two dozen, even with recent closings.)
Also, the younger population that accounts for a big chunk of beer sales has shrunk, and tastes are changing. Abstinence also entered the picture.
There is also the danger that surfaced of Dogfish Head's off-centered brands, like Boston Beer’s Samuel Adams becoming a "dad's beer."
Boston Beer has been writing down the value of Dogfish Head in recent years as marketplace trends dinged sales. In similar cases, we often see a personnel shake-up or asset sale.
That did not happen at Boston Beer. Founder and major stockholder Jim Koch stuck with Dogfish Head and the Calagiones, who remain on the company's website as founders. Sam remains on Boston Beer's board of directors.
That stability kept Dogfish Head firmly entrenched in Sussex County, with its Milton brewery a top tourist attraction. Holdings also include two restaurants in Rehoboth Beach and an inn in Lewes.
Dogfish continues to add products to its line-up, including spirits and canned cocktails.
In the second quarter, patience paid off with Boston Beer reporting gains for the Dogfish Head brand, while Samuel Adams posted a decline. Specifics on the reasons for the uptick in Dogfish Head sales are few, but a long-time association with the Grateful Dead seemed to be a plus.
Boston Beer provided further stability, due to its ability to tap into trends with products like seltzers, ciders, and Twisted Tea. Its latest hit is Sun Cruiser, a vodka-laced iced tea.
A final note. Boston Beer founder Jim Koch, 76, has taken over as CEO after not holding the post for a quarter century. CEO Michael Spillane will remain on the company's board but cited the need to attend to personal matters.
Koch, who has remained active over the years as the company's chairman, has seen Boston Beer's stock price drop by 26% this year. That's not surprising, given the current conditions in the industry that include, among other things, sluggish demand and the effects of tariffs on aluminum cans and other materials. - Doug Rainey, chief content officer.
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