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Heineken Buys $53 Million Stake In Beavertown, London's Popular Craft Beer Maker

This article is more than 5 years old.

Beer goliath, Heineken, has invested a huge $53 million for a minority stake in one of London’s most popular craft breweries, Beavertown. This movement is one of many, as the world’s largest beer companies continue to buy stakes in popular small breweries, in an attempt to enter the growing category of craft beer. Heineken has previously made similar deals with the Brixton Brewery in London and Lagunitas in California.

Photo: Beavertown

Located in London, Beavertown was founded by Logan Plant, son of  Led Zeppelin frontman, Robert Plant. The idea of the brewery came to life in 2011, when Plant started homebrewing. Today the Beavertown brand has risen to the top of London’s craft beer scene, and across the UK. Their flagship Gamma Ray pale ale can be found in most stores and bars across the country and the company recently managed to get some of their beers into Waitrose, the high-end British supermarket chain. But despite its huge success, Beavertown has now sold a minority stake of the company to Heineken in order to grow further and expand their brand.

‘This partner was chosen as it offers long-term stability for Beavertown and Team Beaver so that we can continue to chase our dreams, grow at a fast pace and fulfil our prophecy of getting great beer on to every street corner, constantly innovating and stimulating more drinkers than ever before,’ Beavertown tells the Financial Times.

The deal was announced today, on Thursday 21st. With Heineken's investment Beavertown plans to invest in a brand new 450,000 hectolitre facility called Beaverworld, which will help the company meet the huge demand for their brews and allow them to increase distribution, reaching every corner of the United Kingdom and export markets. The expansion is expected to create more than 150 new jobs.

AB InBev, the company behind Budweiser, has also made numerous deals with craft breweries in recent years, acquiring stakes in Goose Island and Camden Town Brewery. Constellation Brands, the company behind Corona beer, previously bought California’s iconic brewery, Ballast Point, for $1 billion.  As these deals keep popping up, craft beer fans have risen up against small breweries selling stakes to large companies, claiming that the passion, craft, and initial vision is lost in the shadow of these goliaths. On this, Beavertown says the following. ‘We would only align ourselves with a minority investor who were clear they would not be involved with the management of the brewery. It was also critical that any partner understood and respected our family ethos and culture.’

‘We love what they’re doing and are excited to be able to help them do more,’ Heineken said in a statement to Reuters. ‘Our minority investment means they can make their dream of Beaverworld a reality.’

The companies involved seem content, however, not everyone is so accepting of this movement. Many breweries and fans have taken to Twitter to voice their disappointment. In fact, hours after the deal was announced, Cloudwater Brew Co., the hugely popular craft brewery named 'second best in the world' in the Ratebeer Best Awards, announced on Twitter that it will not be attending the annual Beavertown Extravaganza event. The event is to be held this coming September by the Beavertown team in London. Several other craft brewers have fallen out of the event, and some stores have announced they will no longer carry the Beavertown range.

Photo: Twitter

In his Q & A concerning the new deal, Logan Plant was asked why he previously criticised such deals and is now making one.

'Yes, I criticised some aspects of what big brewers do and I recognise that some people will not be happy with my decision to take investment from one,' Plant says. 'I used those criticisms to set clear red lines regarding any investment ensuring we continue to operate independently and according to the Beavertown Way. The aim of brewing highly accessible beer doesn’t need to be a negative. I’ve seen the rise of the US craft brewing scene where our brothers and sisters over there have been knocking it out the park.'

Despite backlash, the brewery seems to be very optimistic about the future.

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