Southern Tier Brewing Company and Victory Brewing Company will now operate under the same parent company, Artisanal Brewing Ventures. Financial terms weren’t announced. Wells Fargo’s Beverage Finance group provided capital. Victory and Southern Tier will independently operate their breweries and have joint capacity of over 800,000 barrels of potential annual production. Artisanal Brewing and Southern Tier Brewing are backed by Ulysses Management. Arlington Capital Advisors advised Victory.
PRESS RELEASE
Downingtown, PA – February 16, 2016 – Having just marked 20 years in the craft brewing industry, Victory Brewing Company (Victory) proudly announces a landmark alliance with Southern Tier Brewing Company (Southern Tier)
under parent company Artisanal Brewing Ventures (ABV). As the first major transaction of 2016 within the rapidly
evolving craft beer industry, this union presents a new model for craft beer partnerships by preserving brewery
independence while pooling deep collective resources.
The new strategic framework between ABV, Victory and Southern Tier provides capital, security and vision for the
future. ABV, formed to unify independent craft brewers and distillers, embraces the collaborative craft spirit while
administering crucial growth resources. Arlington Capital Advisors acted as exclusive financial consultant to Victory.
Wells Fargo’s Beverage Finance group provided capital to support the investment and continued growth at ABV. The
transaction is expected to close within the next 60 days.
Under the umbrella of ABV, Victory and Southern Tier will independently operate their breweries, commanding a joint
capacity of over 800,000 barrels of potential annual production. This alliance creates one of the largest brewers in the
Northeast and ranks within the top 15 craft brewing companies in the United States according to Brewers Association
criteria with combined 2015 shipments of over 250,000 barrels. With a world-class roster of complementary beer
brands and an even stronger standing in the marketplace, ABV will shepherd Victory and Southern Tier in collaborative
sales and marketing efforts to strengthen, support and expand its distributor and retail partnerships. Victory and
Southern Tier brands will become increasingly available to loyal and new consumers across their combined markets
as a direct result of this union.
“The craft beer community is at its most critical moment since its inception as larger brewing corporations have bought
into our grassroots movement, irrevocably changing the marketplace. Like-minded brewers such as Victory and
Southern Tier can preserve our character, culture and products by banding together,” said Bill Covaleski, Founder and
Brewmaster of Victory Brewing Company. “Allied we can continue to innovate and best serve the audience who fueled
our growth through their loyal thirst.”
“Having gotten to know Phin, John and the whole management team, I am more excited than ever about the
innovations that lie in our collective futures. One walk through their brewery and I knew that Southern Tier had the
same belief in quality and excellence that has driven our culture for 20 years,” explains Ron Barchet, COO of Victory
Brewing Company.
The Victory and Southern Tier leadership teams and employees will remain intact. Bill Covaleski and Ron Barchet of
Victory, who will become significant shareholders in ABV, will join the Artisanal Brewing Ventures’ Board of Directors.
CEO John Coleman and CFO Bill Wild will lead ABV’s management team.
“This is exactly the kind of alliance we imagined when we created Artisanal Brewing Ventures in 2014,” said Phin
DeMink, founder of Southern Tier Brewing Company and also a major shareholder in ABV. “This is a concept that was
specifically designed by and for craft brewers, so we can focu focus on the things we’re best at while creating meaningful
scale advantages. I’m proud to see this model validated and am grateful that my friends Ron and Bill have become
our partners.”
“This is the ultimate craft beer collaboration. It is an honor to be associated with these pioneering entrepreneurs who
have been contributing to the industry since craft’s early days,” said John Coleman, CEO of ABV. “I look forward to
guiding these two truly great organizations forward as they collaborate, innovate and share best practices.”
“I believe this is a watershed transaction for the craft brewing world. This union of two great regional players preserves
their independence and distinct cultures while sharing administrative and management functions to support deeper
investment in sales, marketing and innovation,” commented Vann Russell, Managing Director and Founder of Arlington
Capital.
About Victory Brewing Company
Victory Brewing Company is a craft brewery headquartered in Downingtown, PA. Founded by childhood friends, Bill
Covaleski and Ron Barchet, Victory officially opened its doors in February of 1996. Victory’s second state of the art
brewery opened in February of 2014 in Parkesburg, PA to serve fans of fully flavored beers in 37 states with innovative
beers melding European ingredients and technology with American creativity. In addition to the original Downingtown
brewpub, Victory’s second brewpub is in Kennett Square, while Parkesburg recently launched self-guided tours and
the third brewpub. To learn more about Victory Brewing Company please visit www.victorybeer.com.
About Southern Tier Brewing Company
In 2002 Phin and Sara DeMink founded Southern Tier Brewing Company in Lakewood, New York with the vision of
reviving the practice of small batch brewing to a region rich in brewing tradition. Following several expansions from
2009 through 2013 Southern Tier now ships over 100,000 barrels annually to 33 states to meet growing demand for
Southern Tier’s diverse portfolio of innovative beers that embody the spirit of American craft brewing. In 2015
Southern Tier Distilling Company was formed to create innovative small batch spirits using unique local ingredients
under a New York farm-distilling license. To learn more about Southern Tier Brewing Company please visit
www.stbcbeer.com.
About Artisanal Brewing Ventures
Artisanal Brewing Ventures is located in Charlotte, NC and was formed by Phin and Sara DeMink and Ulysses
Management LLC, a New York based family office, with the vision of creating a home for like-minded, best-in-class
craft breweries in close partnership with their founders. Ulysses Management was founded 20 years ago by Joshua
Nash as the successor firm to the pioneering investment firm Odyssey Partners, LP. Ulysses invests in profitable,
well-established companies with tangible, competitive advantages with the goal to build long-term value that benefits
all stakeholders. To learn more about Ulysses Management please visit www.ulyssesmgmt.com.
About Arlington Capital Advisors
Arlington Capital Advisors, LLC is a boutique investment bank that specializes in providing middle-market businesses
with financial advisory services. Arlington focuses on providing strategic advice to clients, including sell-side and buyside
mergers and acquisitions, sourcing growth capital and other capital-centric strategic alternatives across a wide
array of industries including a specific focus and expertise within the consumer industry. For more information on
Arlington Capital Advisors please visit www.arlingtoncapitaladvisors.com.
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