Dogfish Head sells to Boston Beer Company

Like many fans of craft beer, Dogfish Head was the gateway drug that got me hooked on small, independent brewing. 60 Minute IPA was one of my first infatuations as a lover of craft beer. I had a downright love affair with 90 Minute. For many years, DFH was synonymous with craft beer. They were the guys pushing the envelope, changing what was possible in brewing.

Today that vision of fierce, independent brewing took a big hit, as Dogfish Head was purchased by craft brew frenemy Boston Beer Company, the makers of Sam Adams. There’s a lot to unpack with this one, so buckle up.

First, the background dynamic in this discussion is that the relationship between Boston Beer Company and the wider craft brewing world, especially the Brewers Association, is incredibly fraught and complicated. Entire books have been written about this subject; I particularly recommend Tom Acitelli’s excellent The Audacity of Hops: The History of America’s Craft Beer Revolution. The TLDR is that the Sam Adams has, until quite recently, been more brand than brewer, a fact that rubbed many in the early microbrew and craft brewing world the wrong way. Some insist that BBC should still be considered “Craft;” many craft brewing pioneers say otherwise. The Brewers Association itself says “Hard No,” arguing that they no longer qualify as being “small and independent.” I am inclined to agree with them.

This background established, the fall from grace of such a beloved name in the craft brewing world follows broader trend in the brewing industry: it is increasingly difficult for mid-sized craft brewers to survive. Growing past the “small and local startup” stage brings breweries into direct competition with the big corporate breweries that still dominate the industry. Grain sources, hop contracts, keg inventory, and distribution channels: on these factors and more, breweries must compete with the AB InBev’s of the world as they grow past the “small regional” designation and into the “big regional” and “national” categories. On each of these factors, BMC has distinct advantages over upstart smaller breweries.

What’s more, regional breweries have increasingly been undercut by the craft brew world’s growing focus on brewing and buying local. I am myself a fan of this trend: while in NYC, I am much more inclined to buy beers made in NYC, over beers made in Utica, Philadelphia, or Delaware. Same thing when I’m in NC. Many craft beer retail outlets have entire shelves or taps dedicated to beers that are made locally. I am a big promotor of this trend, but I admit it does mean that less shelf and tap space is available for regional breweries to occupy.

Squeezed on both sides, many regional breweries are in general having trouble surviving, much less expanding. One can easily put together a list of A-rated regional breweries that collapsed and/or sold out during this phase of growth: Lagunitas. Smuttynose. Green Flash. Avery. Dogfish Head themselves have struggled to find a winning formula for a big-local-slash-small-regional brewery to grow and survive. They expanded (late aughts), then contracted (2011), then expanded again (2016 onward). And now they’ve basically admitted that they need bigger corporate umph to continue to sustainably survive and grow.

Given current market forces, I think it’s inevitable that we’re going to see more mid-sized sellouts before some sense of equilibrium is reached. For now, let’s pour one out for Sam C and crew, give thanks for all he’s done for those of us who love good beer, and remember the simpler days when it seemed that the beer was all that mattered.