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Bill Anderson On Private Equity In Craft: Industry About To Alter Dramatically

Craft Business Daily:

Nothing terribly new in his observations, but it bears mentioning when a financial services/consulting group to craft recognizes private equity as a “significant source of capital” for the industry. First Beverage Group CEO Bill Anderson singles out private equity’s increasing involvement in craft  in his blog post, “Private Equity is Everywhere in Beer”:

“While it depends on the type and the personality of the new money that comes into the industry, it’s likely that the waves of new capital we’re seeing these months are sure to change the face of the beer landscape in the years ahead–whether it be in pricing strategies, margin allocations, exit mindsets, or the relationships between suppliers and wholesalers. How this industry has operated in the past is about to alter dramatically as a result of a large, new influx of capital.”

He points to KPS as “the best example” of what happens when private equity meets the industry:  “They reduced costs, drove efficiencies across all brewing operations, and now are reportedly selling after owning the assets for less than four years.”