Anheuser-Busch Acquires Devils Backbone Brewing

When I saw the headline Tuesday morning my first thought was that it was an April Fool's joke I had missed. But it is true, Devils Backbone Brewing is the latest acquisition of the Anheuser-Busch InBev conglomerate.

New York and Lexington & Nelson County, VA. April 12, 2016 – Today, Anheuser-Busch announced an agreement to acquire Devils Backbone Brewing Company, the leading and fastest-growing craft brewery in the state of Virginia. Devils Backbone will be the latest partner to join the diverse portfolio of craft breweries within The High End, the company’s business unit comprising unique craft and import brands.

“I am extremely pleased to announce the partnership of Devils Backbone Brewing Company with Anheuser-Busch. While we are joining a creative group of craft breweries in the division, Devils Backbone will retain a high level of autonomy and continue its own authentic DNA within The High End framework,” said Steve Crandall, co-founder and CEO of Devils Backbone Brewing Company. “The existing management team plans to stay on board for many years, while continuing to innovate and bring locally crafted Virginia beer to the nation.”

In 2008, founders Steve and Heidi Crandall opened the doors to Devils Backbone Brewing Company in the Virginia Heartland, after being inspired by a ski trip to northern Italy in 1991 where they had their first taste of Germanic style beer. After success with the first brewpub, Basecamp, the decision was made to break ground on the Outpost facility, in Lexington, Virginia. Originally projected to produce 10,000 barrels of beer in its first ten years, the Outpost produced almost 45,000 barrels in its first three. Steve credits much of this early success to the excellent network of distributors within his system, which is weighted heavily towards Anheuser-Busch.

“I congratulate Steve and Heidi Crandall and the entire Devils Backbone team as they partner with Anheuser-Busch,” said Virginia Governor Terry McAuliffe.  “Through the strength of Anheuser-Busch’s network of distributors, Devils Backbone’s award-winning craft beer will soon be available throughout the country and beyond. I want to thank Devils Backbone for their immense contribution to Virginia’s world-class craft beer industry, and I look forward to the additional exposure for Virginia as a leading state for craft beer lovers.”

Today, the Outpost Brewery & Taproom in Lexington serves as the primary production brewery while the Basecamp Brewpub & Meadows in Roseland, serves as a visitor destination. Devils Backbone takes full advantage of the scenic 100-acre Basecamp property surrounded by the Blue Ridge Mountains, offering a variety of opportunities for guests to enjoy the outdoors. In 2015, the two locations hosted more than 500,000 guests.

“Devils Backbone has captivated beer drinkers in Virginia since opening its doors eight years ago,” said Felipe Szpigel, President, The High End. “From the beginning, they have shown creativity and talent with the great beers they brew, and they’ve been able to use the authentic offerings at Basecamp Brewpub & Meadows to cultivate a fun, outdoor lifestyle that resonates with everyone. Pair these qualities with dynamic leadership and a dream to do something bigger, and you have the recipe for an even more promising future.”

While best known for its flagship Vienna Lager, which accounted for nearly 60% of Devils Backbone volume in 2015, the portfolio also includes other award-winning year-round favorites like Eight Point IPA and Schwartz Bier. Developing beers with personality and individual integrity of flavor has helped enable Devils Backbone to win four National titles: 2014 Great American Beer Festival Mid-Size Brewery & Brew Team, 2013 Small Brewing Company & Small Brewing Company Brew Team, 2012 Small Brewpub & Small Brewpub Brewer, 2010 World Beer Cup Champion Brewery, and the Virginia Craft Brewers Fest Best of Show medals in 2015, 2014, 2013 and 2012.

First Beverage Group acted as financial advisor to Devils Backbone Brewing Company. Anheuser-Busch’s partnership with Devils Backbone is expected to close in the second quarter, subject to customary closing conditions. Terms of the agreement were not disclosed. 

Many online commenters immediately decried the announcement, however once the initial surprise wears off, I don't think it's all bad. I'm no fan of the A-B "factory" beers, but the "partnership" will mean an opportunity for continued growth and expansion at Devil Backbone. According to Devils Backboine founder Steve Crandall,

Devils Backbone was built with a unique, adventurous spirit, and our job is to preserve that culture. That being said, our vision has now outgrown our means. We still know where we want to go, but we realized we needed a partner to get there. For the past year we’ve been exploring options for a long-term solution that would enable us to continue expanding our business of brewing consistent, high-quality craft beer. As I evaluated our options, ABI’s The High End rose to the forefront as a support team that believed in our dreams. We had many discussions and the more we spoke with ABI, the clearer it became that The High End shares our passion. All of our senior management are on board with this new direction and in it for the long haul. ABI will support our brand as we build out our dream of what Devils Backbone can become.

When you come right down to it, it's the flavor and quality of the beer that matters to me, not the parent company's logo on the label. The Devils Backbone management remains the same, the award winning beers will continue to be produced, and even more fans will be introduced to excellent brewed beverages from Virginia. Congratulations to Steve and Heidi Crandall, head brewer Jason Oliver, and all the folks at DBB. We're looking forward to more great things to come.