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Tilray ain't the only co building a portfolio of sizable craft brewers struggling to grow on their own, as the MA/New England brewing scene keeps consolidating. Mass Bay Brewing and Finestkind Brewing Company merged to form Barrel One Collective, cos announced on New Year's Eve. That brings Harpoon, Dunkin' Spiked, Long Trail, Otter Creek, Shed, Catamount, Clown Shoes, Right Coast, Smuttynose, Five Boroughs, Wachusett, Island District RTD cocktails and more all under one roof. AB, Tilray and Barrel One are the only three cos in the country with a double-digit number of brand families in their respective craft portfolios. Tho AB's been moving in the opposite direction while the others are building. And like Tilray, Barrel One is seeking more deals from "other like-minded brands eager to join the collaborative, value-added platform for beverage fans across the region," stated Finestkind CEO Steve Kierstead. A Growing Portfolio of Declining Brands; Dunkin' Spiked Its #2 Family in 2024 Scans Merger solidifies Barrel One among top regional brewers in the country, and "the largest craft producer in New England," per release. Combined cos produced "nearly" 165K bbls in 2023, operating 8 brewery-taprooms across MA, VT, NH and NY, announcement noted citing Brewers Assn stats. Total shipments (including non-craft beer products) were a bit higher as Mass Bay's portfolio collectively shipped 125K bbls in 2023, CBN estimates, and Finestkind said it surpassed 50K bbls/yr with its acquisition of Wachusett in early 2024. Yet most of their brands declined at steep rates in 2024 vs 2023 scans, including low double-digit drops from Harpoon, Long Trail, Smuttynose, and Wachusett, and tuffer drops from UFO, Clown Shoes, Five Boroughs, Otter Creek and Arctic Chill hard seltzer. Dunkin' Spiked offset much of Mass Bay's drop in scans, becoming the combined co's 2d largest brand family behind only Harpoon as it expanded distribution. Harpoon is still nearly double the size of Dunkin' Spiked in tracked off-prem channels. (Keep in mind, scans typically don't capture as much of co's core MA mkt.)Dan Kenary Remains CEO; Steve Kierstead CCO; Nathaniel Davis Chief Operating/Strategy Officer Mass Bay/Harpoon co-founder and CEO Dan Kenary will continue to run the combined co as CEO as HQ will stay in Boston. Finestkind CEO Steve Kierstead will serve as Chief Commercial Officer and Mass Bay's Nathaniel Davis will serve as Chief Operating and Strategy Officer. Unclear how Mass Bay's ESOP was impacted by the merger at presstime. "With a combined 75 years of craft brewing expertise, this merger represents our commitment to setting these companies on an exciting growth trajectory and continuing to bring the very best products to our fervent customer base," said Dan in released statement. Barrel One Collective will operate breweries and/or retail businesses in the communities of Boston, MA, Westminster, MA, Worcester, MA, North Hampton, NH, Brooklyn, NY, Windsor, VT, Bridgewater Corners, VT and in spring 2025, Manchester, NH. "Barrel One Collective currently plans to temporarily pause large scale production at its Hampton, NH brewery, but hopes to restart at a future date," co noted. Hard to tell how disruptive the temporary pause may be on Finestkind production at presstime. And while there are no reports of layoffs at this time, gotta note that Mass Bay went thru rounds of restructuring following Long Trail/Otter Creek acquisition, including the closure of Otter Creek's Middlebury facility.Even More Wheelin' and Dealin' in MA All the craft M&A action in MA has made the state remarkably competitive heading into 2025. Boston Beer remains the largest craft brewer in MA with Sam Adams and Dogfish Head, even as those brands declined over the last several yrs. But on top of Barrel One formation, Jack's Abby parent co Hendler Family Cos acquired Wormtown and Night Shift Brewing and MA's Lord Hobo (backed by PE firm Valterra Partners) formed an interesting merger with ME's Lone Pine, intending to strike another 4-5 deals in the next couple years. So Barrel One, Hendler Family Cos and Lord Hobo/Lone Pine are all competing in the same core mkts as they look to build their portfolios in similar ways. Smaller scale deals like Castle Island Brewing buying Cambridge Brewing IP continue to strike as well. All while brands like Downeast Cider and Treehouse have built sizable volume in state, among others. Plus, middle-tier action keeps heating up in state. Last yr, Martignetti acquired Quality Bev and AB's Boston branch, Constellation brands moved to Burke and Atlas Dist from Quality, Southern Glazer's Wine & Spirits closed on its acquisition of Horizon Bev and Sheehan Family Cos fully transitioned ownership to Tim, John, Chris and Matt Sheehan.

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Mass Bay & Finestkind Merged to Form Northeast Conglomerate, Barrel One Collective; Seeking More

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