Founders Brewing owners on why they sold a 30 percent stake to a Spanish brewery December 22, 2014 Chris Crowell News hit last week that Mike Stevens and Dave Engbers, owners of Mich.-based Founders Brewing, sold a 30 percent stake of the company to Mahou San Miguel, a family-owned company that operates seven brewing operations in Spain and one in India. But what happened with Chicago-based Goose Island Brewery should be a cautionary tale. Founders Brewing Sold 30% Stake; No Longer a "Craft Brewer" Earlier today news hit the internet that Mahou San Miguel, Spain’s biggest brewery, bought a 30% stake in Founder’s Brewing Company. Then they sold 30% of their company to Mahou-San Miguel. Taproom (616) 776-1195. Under the new ownership, Founders is looking to grow its brand awareness. Based on 2016 sales volume it is the eighth largest craft brewery in the United States. 70% of Boulder, Colo.-based Avery Brewing Co. Please also read our Privacy Notice and Terms of Use, which became effective December 20, 2019. Co-Founders Mike Stevens and Dave Engbers open the doors to the 9800 square foot brewery in downtown Grand Rapids, MI. newsletter. Visiting is a ton of fun and trying their brews on draft was great. But now that Founders is ceding majority control to an overseas company, that raises questions as to whether Founders remains an American company, let alone a Michigan craft brewer. You can read the full press release at All About Beer . Many won’t recognize this company but they are based in Madrid, Spain where they operate a huge brewing company. Still, the Founders has faced criticism. Canal Street Brewing Co., L.L.C., doing business as Founders Brewing Company, is a brewery in Grand Rapids, Michigan, known for producing several highly rated and award-winning craft-style ales, including KBS (Kentucky Breakfast Stout), Centennial IPA, Dirty Bastard, and Founders Porter. Founders Brewing Co. is ceding majority ownership to Mahou San Miguel in a move that creates shockwaves in Michigan's craft beer scene. For what it's worth, the partnership has always been about resources for Founders. Founders is the 14th largest brewery by volume in the United States and has more than doubled its production since the initial investment by Mahou. We use cookies and other tracking technologies to improve your browsing experience on our site, show personalized content and targeted ads, analyze site traffic, and understand where our audiences come from. Founders Brewing Company (Grand Rapids, MI) has sold a 30% stake in the brewery to minority investor, Mahou San Miguel. This is last time you’ll see it for some time. AB InBev continued its spending spree of craft breweries, including Four Peaks Brewing Co. in Arizona, Elysian Brewing Company in Washington and Breckenridge Brewery in Colorado. Score: 81 with 844 ratings and reviews. GRAND RAPIDS — Founders Brewing Co. is selling a majority stake in the business to the brewery’s Spain-based minority shareholder, MiBiz has learned. Service was speedy and we had no complaints during our visit. It means there’s a sea of opportunity. Founders denied wrongdoing. Last fall, a black employee who spent time at both the Grand Rapids and Detroit locations filed a lawsuit for racial discrimination that included multiple allegations of racially charged incidents during his employment and leading up to his firing. Engbers and Stevens will continue to be shareholders in Founders and have no intention of leaving. Many consider the 25% number to be arbitrary, which allowed Founders' status as a craft brewery to remain up for debate. Spanish brewer Mahou San Miguel has reached a deal to acquire a majority stake in Michigan’s Founders Brewing Co., according to a report by MiBiz.com. And when they made some test batches using our beer as an ingredient, we were sold.Here’s how the artisans Beer Soap | Founders Brewing Co. JavaScript seems to be disabled in your browser. Founders Brewing, Michigan's largest craft beer brewery, is facing controversy as the company closes down its entire Metro Detroit operations due to a lawsuit. Bartender Marcos Conde carries beer at Founders Brewing Company Friday, November 2, 2012. Fra www.foundersbrewing.com: Mike Stevens and Dave Engbers both had steady jobs when they decided to chase their dreams and open a brewery–which meant writing a business plan, quitting their jobs, and taking out giant loans. We’ve been ranked in the top breweries in the world by Ratebeer.com for the last five years, and we have several beers listed in the top 100 beers of the world on Beeradvocate.com. Other craft breweries have sold out since, such as Lagunitas Brewing Company (to Heineken) and Ballast Point Brewing Company (Constellation Brands), much to the chagrin of many craft beer enthusiasts. Your California Privacy Rights/Privacy Policy. As it expanded its footprint the past five years for popular session-able beers such as All Day IPA and Solid Gold lager, it continued rolling out high-quality offerings such as Kentucky Breakfast Stout every March and brought back its top-rated Canadian Breakfast Stout each of the past three years (though that will go on hiatus this fall). Founders Brewing Company prepares to celebrate 15th anniversary. Founders taproom in Detroit is releasing its first ever advent calendar filled with a different beer for every day. Founders Brewing Co., Michigan's largest brewery, will cede majority ownership to its Spanish brewing partner, creating a shock wave in the state's craft beer scene. An attitude of taking risks to bring the best beer possible to our fellow renegades and rebels. Mike Stevens and Dave Engbers, who co-founded Founders in 1997, will each retain a 5% share. Contact him: bmanzullo@freepress.com and on Untappd, bmanzullo and Twitter, @BrianManzullo and @SpiritsofDET. 235 Grandville Ave. SW Grand Rapids, MI 49503. He sees this move as an opportunity to weather any possible storms in American craft beer which, despite exponential growth the past 15 years, has seen momentum slow down. 1,396 total breweries in the country. Beer list, ratings and reviews. What Are Michigan’s COVID-19 Rules for Restaurants and Bars Right Now? Director: Terry Rayment Producer: Aaron Carriere Director of Photography: Hunter Hampton Richards Editor: Terry Rayment/Aaron… Founders says 89 workers in Grand Rapids and Detroit will be placed on layoff for … "Eighty percent of the beer drinking public does not drink craft. Founders, which in 2018 was the 14th-largest brewing company in the U.S., was launched in 1997 by Mike Stevens and Dave Engbers. Stone Brewing (formerly Stone Brewing Co.) is a brewery headquartered in Escondido, California, USA.Founded in 1996 in San Marcos, California, it is the largest brewery in Southern California. Solid Gold is a Lager - Adjunct style beer brewed by Founders Brewing Company in Grand Rapids, MI. What does that mean? The Grand Rapids-based brewery — the largest in the state — has filed paperwork with the Michigan Liquor Control Commission indicating that Mahou subsidiary Spain’s Best Beer Inc. will soon own a 90 percent stake in the company, MiBiz reports. Taproom (curbside pickup only): Sunday-Saturday 11am-7pm However, the terms have since been adjusted to allow Founders to buy out some of its minority owners. The Founders deal with Mahou is expected to close in January 2020. By choosing I Accept, you consent to our use of cookies and other tracking technologies. That opportunity is going to take a lot of resources — resources greater than any craft brewery in our industry has. Day-to-day operations will continue to be led by the existing Founders team. The "Mothership Series" has also been crucial in keeping Founders' beer repertoire fresh and exciting with innovative choices. Our beers are crafted for a chosen few, a small cadre of renegades and rebels who enjoy a beer that pushes the limits of what is commonly accepted as … Offices (616) 776-2182. Stevens doesn't appear concerned about those distinctions. To learn more or opt-out, read our Cookie Policy. Next frontier: Why Founders Brewing sold minority stake to Spanish company Updated Apr 03, 2019; Posted Dec 17, 2014 Founders Brewing Company prepares to celebrate 15th anniversary At the time of the sale, founder John Hall had planned to stay with Goose Island for several years, Noel wrote. The brewery also appears to be moving away from certain styles of beers. • Spanish brewer Mahou to Acquire Founders Brewing [MiBiz]• Founder’s Brewing Seeks International Expansion, Sells Shares in Company [ED]• All Beer Coverage [ED], A Spanish Brewer Will Soon Own Founders Brewing Company, Sign up for the But ceding majority ownership — and, ultimately, final decision-making — to Mahou San Miguel, which has limited experience in craft beer save for Founders and Avery, can't be seen as anything other than a risk to the quality of some of Michigan's most beloved beers. The first batches of beer are brewed. The company already owned a minority stake in the Grand Rapids-based brewery. About Founders Brewing Co. Like operations, Founders says the beer won't change. Mahou San Miguel is based in Spain, founded in 1890 Continue Reading → The story of Founders Brewing Company. MiBiz.com first reported the deal Thursday afternoon. They figured if you’re going to live life, you ought to live it hard, without regrets. The partnership comes with access to international distribution, and long-term strategic growth. Brewery. "We’re fortunate to have a partner with whom we can exchange brewing knowledge and business strategy, who also reflects our values as a company. Brewery. The Spanish company, founded in Madrid in 1890, also owns a majority stake in Avery Brewing Company in Boulder, Colorado. Taproom Hours. Josh Noel, beer writer for the Chicago Tribune, covered the saga in his book, "Barrel-Aged Stout and Selling Out.". Goose Island, once one of America's largest and most widely renowned craft breweries, was purchased for $38.8 million by Anheuser-Busch InBev in 2011. **Please note that the Barrel-Aged Series and select Limited Series beers may have limited distribution. The brewery's first beer was Stone Pale Ale, which was considered to be its flagship ale until it was retired in 2015. Never brewing to style, but always brewing what we want to drink. Founders brewery has many popular drinks that are bottled and sold all over. Description: We at Founders Brewing Co. have been lucky to evolve into one of the highest recognized breweries in the United States. He was black enough to become one of the first employees of color at Founders Brewing Co., a famed craft brewery in Grand Rapids, Mich. His race … "Founders will remain autonomous in managing its business, products and teams. However, the terms have since been adjusted to allow Founders to buy out some of its minority owners. Our brewery was built on an attitude of no regrets. According to the Brewers Association, an American trade group, Founders hasn't been a craft brewer in almost five years, when it sold the 30% minority stake to Mahou San Miguel. They are all rare, limited and barrel-aged surprises, the company says. The move is about two things: Money and growth. Monday to Saturday: 11am to 2am Sunday: 11am to 12am Founders confirmed the move in an email to the Free Press shortly after. Founders Brewing Company (Mahou San Miguel) on RateBeer.com. Founders’ owners confirmed the deal. According to documents MiBiz received via a Freedom of Information Act request, the 2014 Founders-Mahou acquisition agreement for the 30-percent stake, valued at around $96.3 million, included a provision allowing Mahou to acquire the remainder of the company starting in the fifth year after the initial deal. The Spanish brewery Mahou in 2017 bought a 30% stake in Avery and also a 30% stake in Michigan’s largest brewery, Founders. We have been ranked as one of the world’s top breweries by Ratebeer.com and we have several beers listed among the top beers on Beeradvocate.com. Now Avery has sold … Mahou San Miguel had previously purchased a 30% stake in December 2014. Meanwhile, Goose Island's seasonal beer releases — summer, fall and Christmas — were replaced by three now-discontinued IPAs because hoppy beers were trendy at the time, and production of another popular beer, the 312 Urban Wheat, moved into the same tanks used to brew Bud Light. One of the most demanded beers in Grand Rapids, Michigan based Founders Brewing’s lineup is CBS, aka Canadian Breakfast Stout.. Founders ranks among the top 30 largest craft breweries in the U.S. and is one of the fastest growing. Founders, the 14th largest brewery in the U.S. as of 2018, produced 563,700 barrels of beer last year, an increase from 193,000 barrels in 2014. "We really have to start looking beyond craft and beyond that industry," Stevens told MiBiz.com. Founders Brewing Co. announces new round of layoffs due to pandemic. The majority acquisition was a provision of the original deal struck in 2014, according to MiBiz. "We are starting to see a slowdown there, but there is so much opportunity out there when you really start to look at it and evaluate the beer industry. ... when it sold … We’ll continue to make the beers we love and have a partner in Mahou Group, who is just as passionate about beer and the future of Founders as we are. On Wednesday, the company announced that it would be releasing its Canadian Breakfast Stout (CBS) for one final time before discontinuing the label. "Since 2014, we’ve enjoyed an excellent relationship with Mahou Group," Founders said in a statement. Their commitment to the brewery will remain and their roles and responsibilities will continue as they are now.". The case is still pending. Quick facts about craft beer in Michigan. Last update: 12-22-2020. The move stunned the craft beer world, as one of its stalwarts "sold out" to big beer and triggered a series of events that led to deeper, tougher competition among independent breweries across America. Up until 2014, Founders Brewing was considered craft beer. Are you old enough? Whether similar ownership decisions will affect Founders' products is a mystery. After several years of minority ownership, Spanish brewing company Mahou San Miguel is making things official and buying out Founders Brewing Company. It also allowed Founders to pass Bell's Brewery, which remains 100% independent, as Michigan's largest brewery in 2017, and become the first craft brewery in Michigan to distribute to all 50 states this past June. Spirits of Detroit writer Brian Manzullo covers craft alcohol for the Free Press. Offices (616) 776-2182. The company has also branched out with a new brewpub in Detroit’s Cass Corridor neighborhood. Founders sold a minority 30 percent stake in the brewery to Mahou San Miguel back in 2015, with the goal of expanding into international distribution. Founders sold a minority 30 percent stake in the brewery to Mahou San Miguel back in 2015, with the goal of expanding into international distribution. Mahou San Miguel, founded in 1890, is a major international brewer, and the 30% minority stake it purchased in December 2014 allowed Founders to expand its growth capital and broaden its reach across the globe the past several years. Hopes and Drinks First Batch Founders Brewing Co. Beer. We look at this opportunity with Mahou as our opportunity together to break into a much larger segment of the beer industry.". Download our mobile app to have a Founders beer locator always at the ready on your device! A basic breakdown of COVID-19 the updated regulations for Michigan restaurants, bars, workers, and patrons during the pandemic, The Essential Guide to Christmas 2020 Dining in Southeast Michigan, Where to order dinner, find festive cocktails, and celebrate with friends (virtually), sold a minority 30 percent stake in the brewery, Spanish brewer Mahou to Acquire Founders Brewing, Founder’s Brewing Seeks International Expansion, Sells Shares in Company, Detroit Taco Pop-Up Plans New Outpost in the West Side Industrial Neighborhood, More Southeast Michigan Restaurants, Bars, and Breweries Receive Liquor License Suspensions, Tracking COVID-19 Outbreaks in Michigan’s Food Industry, Detroit Restaurant Saffron De Twah Is Offering Free Holiday Meals to People in Need, Michigan Extends Indoor Dining Closure Through January 15. Guidelines state that a brewer must produce less than 6 million barrels of beer a year and be less than 25% owned or controlled by an alcohol industry member that is not itself defined as a craft brewer. Documents filed by Founders last week with the Michigan Liquor Control Commission show that Spain's Best Beer Inc., an affiliate of Mahou San Miguel Group, will own a 90% stake in the Grand Rapids-based company beginning in January 2020. Last April, Founders and Mahou San Miguel purchased 70% of Boulder, Colo.-based Avery Brewing Co., allowing Founders to brew its signature All Day IPA out of state for distribution. 235 Grandville Ave. SW Grand Rapids, MI 49503. *you must be 18 years or older to enter this site. The investment from Mahou allows Founders to buy out the more than two-dozen minority shareholders it accumulated over the years, including family members of various executives, local business people and other investors, according to filings with the MLCC. Michigan's largest brewery is being sold to a Spanish partner. He left one year later. Founders CBS will return to the brewery’s Barrel-Aged lineup again on November`1st. The majority acquisition was a provision of the original deal struck in 2014, according to MiBiz. Though Founders Brewing Co. says day-to-day operations won't change and Stevens and Engbers will stay with the company, questions remain about its status as a craft brewer and the future of its beer. Its beers are distributed internationally and … Founders has taprooms in Grand Rapids and Detroit. It can take up to 60 days for beer to appear available in the beer finder. Taproom (616) 776-1195 Taproom Hours. Established in 1997 by two craft beer enthusiasts—Dave Engbers and Mike Stevens—with day jobs and a dream, Founders Brewing Co. brews complex, in-your-face ales, with huge aromatics and tons of flavor. 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