Victory Brewing Company and Southern Tier Brewing have seen the recent mergers in the industry and they’re making their own move: the formation of Artisanal Brewing Ventures (ABV) alliance, a new parent holding company that keeps the brands independent while sharing resources.
Ranked in 2014 (the most recent ranking available), Victory was determined to be the 29th largest craft brewery in the United States with Southern Tier closely behind them at #35. Combined, ABV will rank within the top 15.
The move is a strategic response to the changing craft climate and the recent pattern of larger breweries buying smaller ones. The framework of the new holding company allows each company to continue to act independently, while collaborating on internal matters such as sales, marketing, and distribution elements.
“The craft beer community is at its most critical moment since its inception as larger brewing corporations have bought into our grassroots movement, irrevocably changing the marketplace. Like-minded brewers such as Victory and Southern Tier can preserve our character, culture and products by banding together,” said Bill Covaleski, Founder and Brewmaster of Victory Brewing Company in a released statement. “Allied we can continue to innovate and best serve the audience who fueled our growth through their loyal thirst.”
Joint capacity of the two breweries are estimated to produce over 800,000 barrels in 2016. Discussion of the collaboration began in 2014 and is expected to fully close within 60 days.