Monday, February 23, 2009

KPS Capital Partners Buys High Falls Brewing Company

Editor's Note: The Rochester Democrat and Chronicle seems to think that the purchase of High Falls is great news. Today's paper featured an article that quotes the new owners as willing to increase employment and pump capital into the brewery. I will have to do some research and see what I can come up with.

This press release announces that KPS Capital partners has purchased LaBatt USA, "acquisition of a perpetual license for the Seagram's Cooler Escapes and Seagram's Smooth brands from Pernod Ricard USA, LLC", and the High Falls Brewing Company.

This article breaks down why Anheuser-Busch InBev was forced to sell the USA's rights to LaBatt. The U.S. Department of Justice was worried that AB/InBev would constitute a monopoly as they would own the rights to Budweiser and LaBatt Blue which is pretty much the only beer drank in Western New York.

The important thing about this deal for craft beer drinkers in New York to focus on is the purchase of High Falls. High Falls produces the famous Genesse line, but alse the craft Dundee Ales and Lagers line. The Dundee line has recently transformed their image, and modified their receipies, which has made it a very respectable brand. It will be interesting to see how the new owners handle the brewery.

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