Tuesday, July 18, 2017

Coronado Brewing's Big Moves

The West Coaster and the Union Tribune have articles this morning on Coronado Brewing's purchase of Monkey Paw Brewing.  The price Coronado is paying was not disclosed in either article.  The purchase, which the West Coaster article is comparing to Green Flash Brewing's 2014 purchase of Alpine Beer Co, allows Monkey Paw to expand its production by brewing its beers at Coronado's huge Knoxville Street brewery.  Monkey Paw is part of Scott Blair's empire of pubs and breweries, and Blair is staying involved with Monkey Paw.  Both articles state that part of Coronado's strategy is to capitalize on Monkey Paw's appeal to younger beer drinkers.

This was not addressed in the article, but I can't help but wonder how much AB InBev's new 10 Barrel pub, which is close to Monday Paw's brewery, played into Blair's decision.  Coronado gives Monkey Paw some needed heft as it competes with the 10 Barrel pub. 

The deal with Monkey Paw is not Coronado's only business activity, as detailed in both articles.  It is building a brewpub in Imperial Beach, adding a restaurant to its Knoxville brewery, and tightening its out-of-state distribution.  In a interesting move, Coronado has invested in SouthNorte Brewing Company, a new venture headed by former Coronado head brewer Ryan Brooks.  SouthNorte, according to the West Coaster article, is basically a Coronado offshoot or sub-brand, which is attempting to "meld the brewing cultures of Baja California and Southern California."  Coronado is playing a smart, long game in a changing market.

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