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.