Atwater Brewery Joins Tenth and Blake Beer Company
CHICAGO & DETROIT--(BUSINESS WIRE)--Jan 22, 2020--
Tenth and Blake Beer Company, the U.S. craft division of Molson Coors Beverage Company (NYSE: TAP, TSX: TPX), announced today an agreement to acquire Detroit-based Atwater Brewery. Atwater Brewery is highly regarded in the Michigan craft beer community for its traditional German-style lagers and unique ales.
“The agreement with Tenth and Blake is both the culmination of our past and the catapult to our future,” said Mark Rieth, Atwater Brewery owner. “For Atwater to continue to grow, it will require both capital and brewing expertise. Tenth and Blake brings both, which makes them the ideal strategic partner to help us continue to live our mantra ‘Born in Detroit. Raised Everywhere.’”
Founded in 1997, Atwater Block Brewery revived Detroit’s proud brewing tradition from its location in the historic Rivertown district. After investing in the brewery in 2002, Mark Rieth purchased the brewery outright in 2005, setting off several years of booming growth. Led by top-selling beers Dirty Blonde and Vanilla Java Porter, Atwater became a cornerstone of Michigan’s brewing scene. Other brands, such as Better Life Choices (an American IPA that was named a top-10 IPA by Beer Connoisseur magazine), and Decadent Dark Chocolate (which won bronze in the World Beer Cup), augment Atwater’s portfolio.
The brewer, which also produces hard seltzers and craft spirits, also operates three unique taphouse and biergarden locations in Detroit, Grosse Pointe Park and Grand Rapids.
“Atwater has been a staple and a leader in the Michigan craft community for more than two decades, and we’re thrilled to have them join Tenth and Blake,” said Paul Verdu, vice president of Tenth and Blake. “Our priority is to make sure their beer is enjoyed by consumers throughout their core markets and eventually across the Great Lakes region.”
Atwater Brewery joins other leading crafts in the Tenth and Blake portfolio, including the Jacob Leinenkugel Brewing Company, AC Golden Brewing Company, Saint Archer Brewing Company, Terrapin Beer Company, Hop Valley Brewing Company and Revolver Brewing. Tenth and Blake has a proven track record of success, with the organization’s regional crafts posting volume growth of more than 16% in 2019, while the overall craft segment was just above flat.
This is the latest example of Molson Coors Beverage Company executing its revitalization plan, which was launched in October 2019 to generate savings that are being reinvested across its entire portfolio. Since announcing the plan, the company has expanded its ability to innovate in the non-alcohol space by taking a stake in beverage incubator L.A. Libations; announced it will air ads during the pro football championship for the first time in years; and launched new creative campaigns for a broad range of its brands.
The transaction is expected to be completed within the next couple of months. Terms were not disclosed. Rieth and his management team will continue to lead Atwater’s day-to-day operations. Arlington Capital Advisors served as exclusive financial advisor to Atwater in this transaction.
About Molson Coors Beverage Company
Molson Coors Beverage Company has defined brewing greatness for more than two centuries. As one of the largest global brewers, Molson Coors works to deliver extraordinary brands that delight the world’s beer drinkers. From Coors Light, Coors Banquet, Miller Lite, Molson Canadian, Carling, Staropramen and Sharp’s Doom Bar to Leinenkugel’s Summer Shandy, Blue Moon Belgian White, Hop Valley, Creemore Springs and Crispin Cider, Molson Coors offers a beer for every beer lover.
Molson Coors is not only committed to brewing extraordinary beers, but also running a business focused on respect for its employees, communities and drinkers, which means corporate responsibility and accountability right from the start. It has been listed on the Dow Jones Sustainability North America Index for the past eight years. To learn more about Molson Coors Beverage Company, visit molsoncoors.com, ourbeerprint.com or on Twitter through @MolsonCoors.
This press release includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “anticipate,” “project,” “will,” “outlook,” and similar expressions identify forward-looking statements, which generally are not historic in nature. Statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements. Although Molson Coors believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from Molson Coors’s historical experience, and present projections and expectations are disclosed in Molson Coors’s filings with the Securities and Exchange Commission (“SEC”). These factors include, among others, the impact of increased competition resulting from further consolidation of brewers, competitive pricing and product pressures; health of the beer industry and our brands in our markets; economic conditions in our markets; impairment charges; our ability to maintain manufacturer/distribution agreements; changes in our supply chain system; availability or increase in the cost of packaging materials; changes in legal and regulatory requirements, including the regulation of distribution systems; increase in the cost of commodities used in the business; the impact of climate change and the availability and quality of water; our ability to successfully integrate newly acquired businesses; pension plan and other post-retirement benefit costs; failure to comply with debt covenants or deterioration in our credit rating; our ability to maintain good labor relations; our ability to maintain brand image, reputation and product quality; and other risks discussed in our filings with the SEC, including our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.
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CONTACT: Marty Maloney
Molson Coors Beverage Company
KEYWORD: UNITED STATES NORTH AMERICA CANADA ILLINOIS MICHIGAN
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SOURCE: Molson Coors
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PUB: 01/22/2020 11:19 AM/DISC: 01/22/2020 11:19 AM