BeerPulse caught up with Total Beverage Solution CEO, Dave Pardus, on Monday after the company’s just-announced acquisition of the Nectar Ales brand family from Firestone Walker Brewing.
Twice during the call, Pardus noted that they were still “trying to get their arms around [the purchase].”
Word traveled fast. The two companies just inked the deal on Thursday night with First Beverage Financial aiding in the process. Less than 24 hours later, news leaked out on the internet. On Monday, Pardus was on his way to Paso Robles to meet with the Firestone Walker team.
Nectar Ales production will remain at Firestone Walker. Pardus says that TBS signed a contract for the company to continue brewing the brand in Paso Robles for the near-future. To get a sense of size, production came just short of 10,000 barrels last year.
“It’s a nice size for us from the standpoint that it’s a modest add-on and it doesn’t totally change the dynamic of the company.”
Acknowledging that Nectar Ales is largely a West Coast brand, he shared that the South Carolina-based TBS does have East Coast aspirations for it.
“In a year or so, we’ll probably endeavor to look at an East Coast production solution to reasonably and economically be able to expand the footprint.”
Nectar Ales is just the second equity play for the company on the beer side. Last year, the company acquired a minority stake in New York’s Southampton Brewery and signed a national distribution agreement.
That is a far cry from the wine side in which 75% of the revenue stream comes from brands that the company owns.
“Most of the brands are imports and third-party relationships which presents some risk if they go in another direction,” says Pardus. “By owning a number of brands, gives us a little more protection and enhances the overall value of the company.”
On the beer side, the distribution business is up 15% year-to-date, driven in large part by Weihenstephan which is up 24%. The company acquired the rights to import Weihenstephan back in 2006.
Pardus estimates that this acquisition will bring total distribution volume up to around 1.5 million case-equivalents annually.