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You can find the current article at its original source at http://www.theguardian.com/business/2015/dec/21/camden-town-brewery-sold-inbev-worlds-biggest-drinks-company
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Camden Town Brewery sold to world's biggest drinks company | Camden Town Brewery sold to world's biggest drinks company |
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The craft beer brand Camden Town Brewery is to put its independent image on the line after agreeing to be bought by the global drinks giant AB InBev. | The craft beer brand Camden Town Brewery is to put its independent image on the line after agreeing to be bought by the global drinks giant AB InBev. |
The UK brewer said it had accepted a takeover offer from the world’s biggest drinks company in order to fund international growth plans. | The UK brewer said it had accepted a takeover offer from the world’s biggest drinks company in order to fund international growth plans. |
Related: UK craft beer: taking over the world one pint at a time | Related: UK craft beer: taking over the world one pint at a time |
The deal will add Camden’s niche Hells, Pils and Pale Ale brands to a stable that includes mass-market offerings such as Budweiser, Stella Artois and Beck’s. | The deal will add Camden’s niche Hells, Pils and Pale Ale brands to a stable that includes mass-market offerings such as Budweiser, Stella Artois and Beck’s. |
But the takeover drew immediate criticism from craft beer purists, many of whom view the major brewing companies with suspicion. | But the takeover drew immediate criticism from craft beer purists, many of whom view the major brewing companies with suspicion. |
James Watt, founder of craft beer group Brewdog, rounded on his rival for selling out to a global behemoth of the drinks industry. | James Watt, founder of craft beer group Brewdog, rounded on his rival for selling out to a global behemoth of the drinks industry. |
He said Brewdog would no longer stock any Camden Town beers in its bars because it does not sell drinks made by AB InBev. | He said Brewdog would no longer stock any Camden Town beers in its bars because it does not sell drinks made by AB InBev. |
Long-time fans of Camden Brewing Company also expressed their disappointment. | Long-time fans of Camden Brewing Company also expressed their disappointment. |
Twitter used @missjademusic simply asked: “Why Camden Brewery!?!? WHY!!!” | Twitter used @missjademusic simply asked: “Why Camden Brewery!?!? WHY!!!” |
Global brewers such as AB InBev, which is about to buy its nearest rival SAB Miller, for more than £70bn, have faced a growing challenge from craft beers made by independent firms. | |
And they have responded either by launching rival offerings borrowing the imagery and language of challenger brands, or simply buying them out. | And they have responded either by launching rival offerings borrowing the imagery and language of challenger brands, or simply buying them out. |
Peroni and Grolsch owner SAB Miller snapped up Camden’s rival Meantime earlier this year, while it has also used its Guinness brand as a launching pad for a series of ales and porters. | |
Carlsberg has also launched a range it calls Crafted, in a bid to capture the more discerning beer drinker. | |
AB InBev did not disclose how much it paid to get its hands on Camden Brewing Company. | AB InBev did not disclose how much it paid to get its hands on Camden Brewing Company. |
But Camden’s own crowdfunding website – through which it raised some £2.76m earlier this year – suggest it has a value of around £50m. | But Camden’s own crowdfunding website – through which it raised some £2.76m earlier this year – suggest it has a value of around £50m. |
Those who participated in the fund-raising effort are now set to enjoy a swift return on their investment thanks to the deal, which is due to close by 7 January. | |
Camden Town Brewery founder Jasper Cuppaidge told the Guardian that investors should be ‘ecstatic’ because the shares had been bought at a premium, suggesting an even higher price tag. | Camden Town Brewery founder Jasper Cuppaidge told the Guardian that investors should be ‘ecstatic’ because the shares had been bought at a premium, suggesting an even higher price tag. |
Cuppaidge, his family and three best friends own 95% of the company’s equity, suggesting that they have shared a combined payout of more than £50m. | Cuppaidge, his family and three best friends own 95% of the company’s equity, suggesting that they have shared a combined payout of more than £50m. |
The company’s latest accounts, for the year to the end of 2014, show a pre-tax profit of £319,000 on revenues of more than £9.5m. | The company’s latest accounts, for the year to the end of 2014, show a pre-tax profit of £319,000 on revenues of more than £9.5m. |
Cuppaidge said the businesses now needed a major investor to increase sales by funding the construction of a second brewery that will create 30 jobs. | Cuppaidge said the businesses now needed a major investor to increase sales by funding the construction of a second brewery that will create 30 jobs. |
And he insisted that being bought by a large brewer would not force the company into brewing a more generic version of its brands. | And he insisted that being bought by a large brewer would not force the company into brewing a more generic version of its brands. |
“AB InBev are investing to build a new brewery to our exact standards, so I can continue to make great beer. They’re not making a beer for us. | |
“To stay at the forefront of this movement and secure our future success, we have to build a bigger brewery, employ more people and gain access to an international distribution network,” he said. | “To stay at the forefront of this movement and secure our future success, we have to build a bigger brewery, employ more people and gain access to an international distribution network,” he said. |
“We can’t do this on our own.” | “We can’t do this on our own.” |
Cuppaidge founded Camden Town Brewery in 2010 with just three staff. | Cuppaidge founded Camden Town Brewery in 2010 with just three staff. |
He has since built it into a well-known staple of London pubs, selling 12m pints in 2015 from more than 1000 pubs, bars and restaurants. | He has since built it into a well-known staple of London pubs, selling 12m pints in 2015 from more than 1000 pubs, bars and restaurants. |
Iain Newell, European director of craft beers at AB InBev, said: “We have a passion for great beer. | Iain Newell, European director of craft beers at AB InBev, said: “We have a passion for great beer. |
“Camden Town is a creative business with a great range of brands that will complement our existing portfolio.” | “Camden Town is a creative business with a great range of brands that will complement our existing portfolio.” |