If You Can't Beat Them, Buy Them

SAN LEANDRO, CA—Cleophus Quealy Beer Co. announced today that it will purchase neighboring 21st Amendment Brewery. This deal marks the latest instance in the ever-increasing trend of regional craft breweries being acquired by much smaller nano breweries.

“We keep borrowing each others’ stuff, so this felt like the next inevitable step,” says Dan Watson, brewmaster and co-founder of Cleophus Quealy. Watson’s business partner and co-founder Peter Baker firmly believes this will be a fruitful partnership. “I, for one, am looking forward to borrowing all of Nico’s watermelon outfits,” says Baker.

Baker and Watson agree that 21st Amendment complements Cleophus Quealy’s portfolio, and see an opportunity to leverage growing interest in products like IPAs and watermelon beers. According to Baker and Watson, “our market research indicates IPAs will be the next big thing in craft beer.”

Access to Cleophus Quealy’s resources will allow 21st Amendment to radically alter its growth trajectory and reposition within the craft marketplace.

“We’ve been exploring new distribution strategies, and are excited for the exposure and connections a well-established brand like Cleophus Quealy will bring to the table,” says 21st Amendment brewmaster and co-founder Shaun O’Sullivan. 21st Amendment will now be able to tap into Cleophus Quealy’s current distribution network, which includes San Leandro, Oakland, Alameda, and more of Oakland.

Backroom deals transpire over a bottle of nondescript tequila

Backroom deals transpire over a bottle of nondescript tequila

Though 21st Amendment will continue many of their day-to-day operations at their new 95,000 square foot facility in San Leandro, the bulk of their production will shift to Cleophus Quealy’s semi-modern seven barrel brewhouse. O’Sullivan assures that recipes will not change, promising that their beers will be brewed per usual, then barrel aged and packaged in 750mL bottles with wild yeast. 21st Amendment’s signature can packaging will be available on a limited basis. “Consumers really seem to like it in the can,” says Baker.

21st Amendment’s production capacity is estimated at a potential 250,000 barrels, and with Cleophus Quealy shouldering the bulk of production they are projected to reach this ceiling by the year 2856.

Financial details of the deal remain undisclosed, but industry sources confidently tell us they have no idea what a Cleophus or Quealy is.

 

--Edit 4/2/16
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