Lately, the world of craft beer seems to to be in a constant state of change. Whether that movement is the opening or closing of breweries, brewery expansions, outright sales or acquisitions, or bringing on investors, the world of craft beer has been experiencing nearly unbridled growth the last 15 years. With more than 130 craft breweries in operation in San Diego right now, and a proposed 150 by the end of 2017, San Diego craft beer is definitely moving and shaking.
This week, the San Diego craft beer community was surprised and (mostly) delighted at the news that fan fav, Monkey Paw Brewing, is being acquired by Coronado Brewing Company. Monkey Paw is situated in the up-and-coming neighborhood of East Village in a space that used to be the diviest of San Diego dive bars, The Jewel Box. Keeping the same easy-going, down and dirty vibe, Monkey Paw quickly became known for their inventive beers, often collaborating with breweries from San Diego and beyond.
Why the Monkey Business?
Coronado Brewing had a number of reasons why they wanted to get with Monkey Paw. These two breweries are vastly different beasts. Monkey Paw brewed almost 700 bbls last year while CBC brewed just under 40,000. CBC has been around since 1996 making itself one of the “founding fathers” of the SD craft beer community, while Monkey Paw has been around for 6 years (to be fair, this is still a long time when compared with the majority of San Diego craft breweries). When asked, CBC’s chief operation officer, Brandon Richards, had this to say to the U-T about the reasons for acquiring Monkey Paw. “They do a lot of different, unique beers that we don’t usually do…And I think their brand reaches younger, millennial drinkers.”
In the CBC press release, Richards when on to say,“We’re looking forward to partnering with Scot Blair and his team; they have built a tremendous brand from the ground up, and their beers are incredibly well-respected. We can’t wait to share their brand with an expanded audience.”
Is This Just Another Sell Out?
Scot Blair, owner of Monkey Paw, South Park Brewing Co., and Hamiltons Pub, has been an ardent supporter of independent beer and an outspoken voice against the encroachment of Big Beer into the world of craft. In fact, they were one of the breweries that took part in brewing 11 Barrel IPA, which was an indie collab beer brewed in reaction to AB InBev owned 10 Barrel moving into the East Village within eyeshot of Monkey Paw. There were all sorts of comments flying around San Diego beer facebook groups with most being in support of the sale:
- “Monkey Paw beer needs to be shared with the rest of the world! This is a huge deal and I couldn’t be happier”
- “It’s a win win for everyone, more Monkey Paw for all of us…”
- “Stoked on the moves Coronado Brewing is making recently. Healthy, local growth with a rad team behind it maintaining, if not exceeding, the local standard of #SDBeer.”
On the flip-side, there were a few comments asking what the difference between this sale and an indie brewery selling to AB InBev, for example.
- “The most vocal voice of Independent beer just sold a brewery. Yes, it is not to a macro but still ironic, don’t you think?”
- If they drop the Philly Cheesesteak from the menu, they’re dead
???? to me
This last sentiment was expressed by a number of people because Monkey Paw cheesesteaks are bonkers and probably some of the best ones anywhere in SD. They were quickly assured by CBC employees in the group that other than updated kitchen equipment and expanded production and distribution, daily life at Monkey Paw will remain the same.
There is a difference when it comes to the breweries selling and it comes from both sides of the deal. First, CBC, while being one of the larger breweries in San Diego, is a far cry from any of the Big Three in big beer (AB InBev, MillerCoors and Heineken). CBC doesn’t practice the predatory sales/marketing tactics involving pay-to-play and they sure aren’t vertically integrating the supply chain like it’s no one’s business. On the same note, Monkey Paw was looking to grow and after looking at all the options, Blair chose the one that best satisfied his needs of expanded production and distribution and most likely, cash-dollars, while still allowing him most of the creative control over the brand. His quote in the press release explains the situation pretty well:
“Coronado’s commitment to our brand is why this is such an exciting time for our team. Nick [our head brewer] and I will continue to develop our beers, brew the beers, and grow the brand in a way that keeps the integrity and quality of what folks have come to expect from Monkey Paw. The only difference is now we can scale our operation, utilizing all the experience and resources of CBC’s amazing family.”
In this day and age in the craft beer world, growth is tough and can take on many different forms depending on the needs and goals of a brewery. When one respected craft brewer sells to another respected craft brewer, both brands are sure to face some changes, but they are likely positive changes that won’t impact the rest of the craft beer community negatively in the same way indie breweries selling to Big Beer does. Either way, we can’t wait to see what new things are to come for both Monkey Paw and Coronado Brewing and offer a big “Cheers!” to both companies in their new venture.