USA, NC & SC: Catawba Brewing Co. acquiring Charleston-based Palmetto Brewing Co.
South Carolina's oldest craft brewery has decided that two heads are better than one in announcing its sale to a North Carolina beer maker, the Charleston Post Courier reported on November 13.
Catawba Brewing Co. said on November 13 it is acquiring Charleston-based Palmetto Brewing Co. in a deal that's expect to be finalized by the end of the year. Financial terms were not disclosed.
“The opportunity for combined growth and shared resources will put both brands in a more competitive position to compete in the rapidly changing craft market," Palmetto owner Larry Lipov said. “And it is very satisfying to know today’s Palmetto and Catawba team members will work together to grow the brands.”
Catawba Brewing is heaquartered in Morganton, N.C., and operates several tasting rooms throughout its home state. It is owned by the Pyatt family.
“Upon finalization, we will immediately implement a $1 million capital investment plan for Morganton and Charleston," Catawba co-founder Billy Pyatt said in a written statement. "That includes facility upgrades, equipment purchases and, of course, personnel to support our proven hybrid retail/wholesale business model.”
He also cited "key differences" that could become competitive advantages as the two breweries combine operations.
“Catawba has one of the most effective manufacturing operations in the Southeast, while Palmetto has proven highly successful in customer-facing operations,” Pyatt said.
Catawba was started in 1999. It distributes its beers in the Carolinas, Georgia, Tennessee and Alabama.
Palmetto was founded in 1993 and is considered the state's oldest craft brewer. It ships to customers in South Carolina, North Carolina and parts of Georgia from its Huger Street production site, where it will remain.
The Charleston brewery is expected to churn out about 16,000 barrels of beer this year, up from 2000 in 2012, and about 1,500 fewer than its future owner.
“Palmetto has been on an amazing growth trajectory for the last five years,” Pyatt told the website Brewhound.com.
The planned capital improvements are expected to increase production for both breweries, with Palmetto increasing its potential output about to 20,000 barrels annually. Lipov is expected to be involved in the business under the new ownership structure.
Palmetto had planned to relocate from the peninsula to a 6-acre site it bought for $2.37 million near the Park Circle area of North Charleston. It changed its mind earlier this year, after the Huger Street property it had been renting for 23 years became available.
16 November, 2017
