Southern Tier Brewing, Victory Brewing to operate under same holding company

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.


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


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

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

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

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