US brewers Drake’s Brewing Company and Figueroa Mountain Brewing Company have formed a joint venture to grow sales and capture efficiencies.
In a statement, the partners said the West Coast Craft venture is intended to “support long-term brand sustainability, improve operational efficiency and strengthen independent craft beer across the [California] state”.
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The portfolio of brands under West Coast Craft includes Drake’s Brewing, Bear Republic Brewing, Figueroa Mountain Brewing and House Beer.
West Coast Craft will be run by Drake’s Brewing co-owner and CEO John Martin and Figueroa Mountain Brewing chief executive Jaime Dietenhofer.
The partners said the 50-50 venture brings together production and procurement into a shared platform to provide “efficiencies across purchasing, distribution, and brewery operations”.
Martin said: “Combining Drake’s strong distribution partners in northern California with Figueroa Mountain’s reach in southern California and the Central Coast made sense, with the added opportunity to grow each other’s brands outside of their original strongholds.”
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By GlobalDataDrake’s Brewing was founded in 1989 and revived in 2008 by owners Martin and Roy Kirkorian.
Figueroa Mountain Brewing, based in Buellton in California, was established in 2010.
Under the new arrangement, the businesses’ brand marketing, identity and innovation “will remain independent”. There will be no ownership change at either company as a result of the venture.
Production will be allocated between sites depending on capacity and operational fit, the partners said.
Figueroa Mountain’s Buellton brewery is set to take on most “core brand production”, the statement read.
Drake’s San Leandro facility will concentrate on innovation work, including limited releases and alternative beverages, as well as northern California draught production and some contract brewing.
As output increases in Buellton, Figueroa Mountain expects to add staff at that site, while the San Leandro operation will see an overall reduction in roles tied to production.
The companies added their existing retail sites will continue as they are, remaining owned and operated by the respective breweries.
The partners said they are also receiving approaches from other West Coast beverage brands that match West Coast Craft’s “values and vision”.
Dietenhofer added: “This partnership positions both companies for long-term success while staying true to what made us successful in the first place.”
