The USA’s fourth largest craft brewer has been acquired by Kirin-owned Lion Little World Beverages. The deal, announced by press release, is expected to close at the end this year, all pending approvals by regulators and the Employee Stock Ownership Plan (ESOP) in addition to other customary closing conditions.

Besides ending New Belgium’s status as a craft brewery, as defined by the US Craft Brewers Association, it will also end the company being 100% staff owned.

Since the company was established in 1991, it has grown to become a leading craft brewer with brands, such as Fat Tire Amber Ale and Voodoo Ranger IPA, in addition to two state-of-the-art brewing facilities in Fort Collins, Colorado and Asheville, North Carolina, and a national distribution platform.

“We’re excited to welcome New Belgium Brewing into our global family of craft beverage brands. Since meeting the New Belgium team, we’ve been incredibly impressed not just with their commitment to world-class beer and the way they bring their brands to life, but their purpose-led business model and connection to the community – all values we share at Lion,” said Matt Tapper, Managing Director of Lion Little World Beverages.

Kim Jordan, Co-Founder of New Belgium Brewing said: “We will no longer be employee owned and it would be easy to see that as a drawback.  But here’s another way to look at it. More than 300 employees are receiving over $100,000 of retirement money with some receiving significantly greater amounts. 

“Over the life of our ESOP, including this transaction, the total amount paid to current and former employees will be nearly $190 million. We will have helped a significant number of people realize the upside of having equity in something, being a part of the American Dream! 

“Little World is committed to strategies to broadly share the wealth going forward, like profit sharing, best-in-class healthcare and a generous family leave policy.  Our on-site wellness clinic will carry on. Continuing to practice the rest of what makes New Belgium so cherished by its coworkers: a playful, loving vibe, a culture that encourages learning and experimentation, and an entrepreneurial spirit, will be up to all of us. We are more than up for that challenge and Little World will support us all the way. 

“We all know the world of craft brewing is dynamic.  In the US, the number of breweries has nearly doubled in the last four years to 7,500. At New Belgium, we’ve needed to balance the cash demands of our ESOP and selling shareholders, with the operational need for more capacity (hence the brewery in Asheville) and the need to grow our brand by reaching more beer drinkers with our brand message. 

“These are a lot of competing priorities and it has been difficult to do all of them as well as we’d like. As we surveyed the landscape over the last several years, we found that options to raise capital while being an independent brewer weren’t realistic for us,” she said.

This follows Anheuser-Busch acquiring the remainder of the Craft Brew Alliance.