![]() We’d borrowed about the same amount from the banks. We’d already invested $12 million in the business and there wasn’t a desire to continue from that pool. We got to the point where we knew we couldn’t go it alone.įour of the investors in the company, which includes myself – and I was the youngest – are 60 to 77 years old. We continued working on the problems subjugated with funding the business. I’m not interested in selling my company.” They left. They came in here and expressed an interest and desire to buy us. Quite frankly I was a bit humbled they knew we were on the radar. When I was going through this process Anheuser-Busch called and wanted to visit. The banks absolutely had their hands tied. You’re having to spend the money and you’re not going to generate any money off of that purchase for a least a year because it takes a while to ramp that up. When you bring-in things like new brewing systems or 960-barrel fermenting tanks, that whole process takes six months to a year. ![]() They can’t look at financials a year down the road, and that’s when you really start making money on your added infrastructure. In January of last year (2015), I started going to our existing bank – and other banks because I didn’t believe what they were telling me – which was that financing our growth was impossible for them under the current banking regulations because they had to look at current financials. On the financial side of the things, the income that we are generating from sales cannot support the growth. If we had slowed down the growth we wouldn’t have had to sell the company, but it would have taken us 15 to 20 years to do what we’ll be able to do in a very short period of time. Last year we hired a new person every 10 days. We were making good money, but we were literally at the point that we couldn’t afford to fill the potholes in the parking lot because every dime we had in excess cash when to capacity – in terms of fermentation tanks or employees. How much did this rocket growth factor into your decision to sell? The Virginia Chamber of Commerce has named Devils Backbone the top growing manufacturer for the past two years. You’ve won numerous prestigious awards in national and international competitions. Steve, we have observed Devils Backbone start as a brewpub in Roseland and then expand several times in capacity to produce beer at the Lexington facility. ![]() It’s a wonderful number, but I’ve signed a non-disclosure agreement. How much did Anheuser-Busch/InBev pay for Devils Backbone? To find out more about the deal I called Devils Backbone co-founder and CEO Steve Crandall to see what he could share. However, even with its expansion to become Virginia’s largest craft brewery, it struggled to keep up with demand for its award-winning brands such as Vienna Lager and Eight-Point IPA. The brewery had repeated successes at the Great American Beer Festival in Denver as well as in the World Beer Cup competition. Due to demand, Devils Backbone opened a large scale production facility in Lexington. The brewery started as a brewpub, which it still operates, in Roseland, Virginia. Terry McAuliffe said in an official statement.Ĭould DB’s award-winning Vienna Lager become the best selling beer in America one day?ĭevils Backbone Brewing Company was founded in 2008 by Steve and Heidi Crandall. “Through Anheuser-Busch’s network of distributors, Devils Backbone will soon be available nationwide,” Gov. But many in the craft beer world seemed to understand the dilemma Devils Backbone faced behind the scenes. Many craft beer enthusiasts responded swiftly and harshly on social media. News this spring spread like wildfire when it was announced Anheuser-Busch/Inbev would acquire Lexington, Virginia based Devils Back Bone Brewing Company.
0 Comments
Leave a Reply. |