This is a messy one. Five-year-old Chicago-based brewer, Finch Beer Co, "plans to shutter its original operation on Elston Avenue, pull out of the brewpub it launched during the summer and begin brewing at an existing Chicago brewery [yet to be named]," reported Chicago Tribune late last wk. Finch expects to announce "strategic deal for the next Finch space" sometime this wk, as "an opportunity came up for us that solves a lot of the strategic challenges we've had," one Finch Beer partner, Jeff Bergau, told paper. "Other brands will be involved" in production there too, he hinted, including Jeff's other brewery, Hopothesis beer Co, which was quietly acquired by Finch this yr after starting in 2013 as a gypsy brewer. Jeff and his original partner sold Hopothesis to Finch in exchange for equity in the total co.

Meanwhile, Finch will auction off "much of its current brewing equipment in January, including its brew house, fermentation tanks and canning line," sez paper. And after teaming up with well-known local chef and restaurateur, Matthias Merges, to launch Finch Kitchen brewpub in space previously occupied (and still owned) by Breakroom Brewery, that project "also on the way out." Matthias is leaving the brewpub due to "a lot of issues [that] have come to light regarding the relationship between the Breakroom ownership and Finch Beer Co. that has put us in an uncomfortable position," he explained. So Finch Kitchen "will convert to a brewpub associated with a different brewery," one of initial Breakroom founders, Jeff Piejak added. (By the way, Breakroom brewery failed in same brewpub space after being in biz for just 1 yr, following "tumultuous start that included losing its original brewer…and forcing out a founding partner.")

Finch Beer was originally Finch's Beer Co before other investors in the co felt need to buy out founder Ben Finch earlier this yr "in a bid to rehabilitate and focus the brand" and decided to make the slight name tweak. Recall, toward the end of 2014, Ben and co announced ambitious plan to build a 45K sq-ft production facility on the west side of Lincoln Park neighborhood, right on the Chicago River (see Dec 17, 2014 issue). Back then, Ben had plans to become a national brand utilizing 16oz 4pk cans as "go-to-package." But those plans for production facility never materialized, nor did follow-up plan "to build a brewery near his home in suburban Long Grove," paper noted. Co grew from 2,200 bbls in yr-1 to 10,200 bbls in 2015, according to Brewers Assn data. But that was spread thruout 20+ states. Finch brews "could only be found in a modest number of local accounts" and "several industry sources" described founder Ben as "thorny character" that "alienated many people in the industry," paper wrote. Now, Finch has cut back distribution to "about a dozen states" and at one point "lost six weeks of production this year due to equipment problems." So net-net, Finch sales are hurting; down 64% in IRI data thru Nov (tracking just a small portion of its volume). But with new production plans in place, Finch investor Jeff insisted that "this is all part of a bigger strategy," and "we're investing in growth." 

Following DoJ's promise to carefully scrutinize any further AB craft acquisitions, and just a little over 1 mo after deal announced, AB "received federal antitrust approval to close our transaction with Karbach Brewing Co., which we anticipate will occur in the next several weeks," AB announced this week. Recall, this is first time AB's done a deal in a state where it still has over 50 share of shipments (52.3 in 2015). DOJ A-OK anyway. (This article appeared in INSIGHTS Express on Monday.)