Cigar City Brewing, one of Florida’s most popular and awarded craft breweries, announced a surprising acquisition this week. The questions are: Who bought Cigar City? What does the acquisition mean? And, most importantly, when can we expect to see their delightful brews on shelves in North Carolina?
Have you ever visited the state of Florida and felt the need for a beer? Between the scorching heat, long lines, unfriendly prices, and “quality family time,” I can’t imagine why! But, if so, chances are you may have tried some of Cigar City’s award-winning and delectable suds. From their citrus inspired IPA Jai Alai to their highly coveted spiced-stout Hunahpu, Cigar City has opened up craft brewing in the state of Florida and maxed out their brewing capacity long ago.
For a while now, word around the bar was that Cigar City has been entertaining offers to bring on a partner/investor. A long-running rumor was that A-B InBev, the owner of globally recognized brands like Budweiser and Corona among others, was locking in an offer, but as of Tuesday the internet was foaming with news that Cigar City had been acquired by another brewery, Oskar Blues. A purchase that seemed irregular to be sure. So what is actually happening?
Oskar Blues
The truth is that Cigar City Brewing sold a majority of its shares to the private equity firm Fireman Capital Partners (FCP), the same company that owns a majority steak in Oskar Blues and greatly assisted Oskar Blues with their 2013 brewery expansion into Brevard, North Carolina. FCP also owns a majority steak in Perrin Brewing and Salt Lake Brewing.
The deal is huge for Cigar City. It gives them financial support if they decide to seek expansion, following the footprints laid out by Oscar Blues, and also access to Oskar Blues’ large brewing capacity to increase distribution (Oskar Blues has three brewing centers and is producing as much as 130,000 barrels of beer each year, Cigar City seems to be producing a third of that).
Cigar City Brewing
Does this mean that Cigar City will be available in North Carolina? Analysts are very optimistic, especially within the next year or two at the most.
Cigar City currently distributes to surrounding states Georgia and Virginia, skipping the Carolinas. Rumors that Carolina distributions and possibly expansions are coming have dated as far back as 2013, and demand has been trickling in since the brewery opened nine years ago. The hold up is due in part to brewing capacity having been maxed.
With the newfound partnership and resources that come with it, the idea that we may get some awesome beach beer year round is definitely no longer the dream of a Disney beer drinker cast upon a distant star.
— Matt Lawson