Sierra Nevada has expanded. They have acquired the Sufferfest Beer Company of nearby San Francisco. (During SF Beer Week no less.)
Started in 2016, Sufferfest makes gluten-removed beers such as a Kolsch and a Pale Ale. They are geared towards runners specifically and the health aware in general. The brewery has its origins at UC Davis in 2012.
I can see the fit meshing from multiple viewpoints. Company culture seems to be in the same ballpark. Sufferfest is in a market that Sierra is not. They are geographically close. But for some nagging reason, I don’t know how this will benefit Sierra much.
Sufferfest will be able to be brewed (once the recipes are dialed in over in Mills River) on the East Coast which will open a market and the probably longer arm of Sierra distribution. But they could have entered into a brewing partnership without buying. And it is still unclear how big, either the gluten-reduced or athlete market is going to fare long term.It’s sort of like trading for a player who has three-year contract vs. a similar player who has an expiring contract. If the three point shooting goes south, you can walk away under the second scenario.
Maybe the numbers look really good for Sufferfest and that is what this deal is based on but I will be watching this one.