Fresh on the heels of buying Brooklyn’s Five Boroughs Brewing Co. in November, Finestkind Brewing, the owners of the Smuttynose brand, are making another big purchase.
Finestkind will acquire Massachusetts mainstay Wachusett Brewing Co., the companies shared with the Globe this week. Known for its blueberry ale and the Red Sox-mascot inspired Wally IPA, Wachusett has been in business since 1994.
”Their commitment to quality and community closely aligns with our own values at Smuttynose,” says Steve Kierstead, Smuttynose’s CEO. “Wachusett, a brand with 30 years of history, is not only a local leader in the fruit beer category, but their addition significantly diversifies our portfolio.”
In answering questions for the Globe, Kierstead also mentions Wachusett’s strong taproom business, “one of the best in the region,” as a selling point. Headquartered in Westminster, Wachusett also has a brew yard in the Worcester Public Market.
In a statement, Wachusett shareholder and industry veteran Bret Williams said, “It is no secret that there have been a lot of headwinds in the craft beer industry. These challenges have led breweries around the country to acquire brands, join forces, or sadly close. Today, we have preserved 90 percent of the jobs and consider ourselves very fortunate that a like-minded independent brewery chose us for their significant expansion.”
Wachusett’s 15,000 barrel production (one barrel is equivalent to 31 gallons in the beer world) increases the total capacity of Smuttynose’s beer production to over 50,000 barrels annually. Kierstead says there are no current plans to change Wachusett’s beer lineup, though the company will review what is working and what is not and won’t rule out future changes.
The Smuttynose story is in some ways representative of recent changes in the craft beer business. In 2019, the brewery’s assets ended up in foreclosure, with Provident Bank buying the brewery and its land for $8.25 million. Under new ownership in 2019, Smuttynose launched anew.
Longtime New England beer drinkers are likely familiar with two Smuttynose beers: Finestkind IPA, a West Coast style IPA with a bitterness that is distinctive in today’s marketplace, and Old Brown Dog, a brown ale. Kierstead says draft sales of the latter have skyrocketed recently as venues look to list IPA alternatives.
“Its endurance over time is partly due to our commitment to the brown ale category,” says Kierstead.
Of course, the key takeaway from Smuttynose’s acquisition of Wachusett is that it’s a business move. The purchase of both a New York and Massachusetts brewery in recent months allows Smuttynose to get into both markets. More changes are likely to come as craft beer, which exploded in popularity over the last two decades, finds its new level.
Gary Dzen can be reached at gary.dzen@globe.com.Follow him @garydzen.