E-Malt.com News article: US, MO: Potential investor may save O'Fallon Brewery - source

A potential investor has signed a letter of intent to buy a majority share of O'Fallon Brewery and keep the company afloat, Stltoday.com cited on April, 4 a source at the Missouri craft brewery.

A deal is expected to close by May, according to the source, an O'Fallon employee who spoke on condition of anonymity due to the confidential nature of the sale negotiations. The proposed agreement would allow O'Fallon's seven office and brewery workers to remain on staff, and it would give the company the capital and leadership necessary to grow. The source did not identify the investor.

The brewery, founded in 2000 by Tony and Fran Caradonna, experienced double-digit sales growth the past two years, producing about 6,500 barrels for distribution to 11 states in 2010.

But the company's books struggled to rebound from disappointing numbers in 2007 and 2008. In February, the Caradonnas announced they were looking for local investors to provide O'Fallon with an injection of cash and experience in brewery management.

The brewery was forced to reduce its employees' hours - temporary layoffs - and halt beer production for much of the past two months. As a result, many shops, restaurants and bars that normally carry O'Fallon's products are finding their inventory either sold out or dwindling.

Should the pending sale continue to move forward, the source said, the brewery is likely to resume production before the deal closes in May.


13 April, 2011