InBev also owns Colorado-based Shock Top, and, most recently, London-based SABMiller. While Devils Backbone’s management team still runs the company’s daily operations, they now report to InBev’s High End division, InBev’s specialty division of craft and import brands, including New York-based Blue Point Brewing Co., Washington-based Elysian Brewing Company and Chicago-based Goose Island Brewery. “InBev was the only one who came in and said, ‘Not only do we want you to be a part of our portfolio, but we also want to take your dreams and realize them.’” Rockbridge Report file photo Humphreys didn’t disclose the other potential buyers, but said InBev was the only one that shared Devils Backbone’s vision. “All of the other potential buyers we spoke to came in with a plan to provide some value in exchange for some or all of the company, but without a plan to finance continued expansion,” Humphreys said. Of all the candidates, Devils Backbone knew InBev would best help them achieve their expansion goals. Banks said “no” to loans.Īt that point, there was no other choice but to find a buyer.ĭevils Backbone then hired First Beverage Group, a Los Angeles financial planning firm, to help it scout out potential buyers.Īfter narrowing down a list of bidders, the company interviewed with brewers throughout the world to determine which of them would bring the most value to Devils Backbone. But current investors balked, saying the company had hit its maximum leverage ratio. Humphreys said the company sought bank loans and private equity investors. “We were running 24/7 at max capacity and demand was even more than that.” “We figured out we’d never be able to keep up,” said Humphreys. Midway through 2015, Devils Backbone had maxed out production of its signature brands, including Vienna Lager, Eight Point IPA and Schwartz Bier, at nearly 60,000 barrels of beer. The company’s name comes from a dangerous ridge in Nelson County that was named by Thomas Jefferson’s father, Peter, who lost several men there during his trek through the Blue Ridge Mountains. Steve and Heidi Crandall opened Devils Backbone in 2008 after being inspired by a ski trip to northern Italy where they had their first taste of Germanic beer.Īfter the successful launch of their Basecamp Brewpub & Meadows in Nelson County, the couple opened their Outpost Brewery & Taproom in Rockbridge County in 2011. Humphreys, who has served as chief operating officer of Devils Backbone since 2011, did not disclose the terms of the deal, but said InBev would invest “an amazing amount of money and resources” in the company. “But I feel that we made the best decision.” “There were always moments of trepidation and doubt,” said Hayes Humphreys, chief operating officer of Devils Backbone. And for the company’s 243 employees – including 113 in Rockbridge County - the sale means better health and retirement plans. New equipment will boost annual production to about 100,000 barrels this year, up nearly 60 percent from last year. InBev’s investment means the brand will soon be sold in several more states, including New York and South Carolina. Less than nine months since the deal, Devils Backbone plans to expand the taproom in its Rockbridge County facility and is building a storage warehouse nearby. But first, the king of beers had to agree to a few terms: current management stays, and the team has autonomy on production and marketing. In April, the owners of the craft brewer decided to sell to the world’s largest beer manufacturer Anheuser-Busch InBev, the Belgium-based company whose 200 brands include Budweiser, Stella Artois and Miller. had to make a choice last year: Stay independent and small or sell to outsiders and expand.
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