Sam Adams Brewers in Talks with Beam Suntory: A Corporate Version of the "Beer and A Shot Combo"?

Sam Adams and Beam Suntory Merging?

The WSJ broke news on Friday of a potential merger between Boston Beer Company, makers of the iconic Samuel Adams Boston Lager, and Beam Suntory, a giant in the spirits world known for Jim Beam bourbons as well as my favorite Japanese whiskies: Yamazaki and Hakushu. Let's crack a cold one and think about what each brings to the table, along with the potential upsides and downsides of this beverage collaboration.

What's in the Mix?

Boston Beer Company

Founded in 1984, Boston Beer is a pioneer in the American craft beer scene. Their flagship brand, Samuel Adams, is a household name, and their portfolio includes another once-craft sized brewery, Dogfish Head Brewery, as well as up and coming "Malternatives" Truly Hard Seltzer and Twisted Tea Hard Iced Tea. I've always thought that the flagship (and much too formally named) "Samuel Adams - Boston Lager Beer" is best on tap, and even then, for some reason tastes better the closer its proximity to Boston.

Beam Suntory

This Japanese powerhouse is a leader in the global spirits market. Their portfolio boasts iconic brands like Jim Beam bourbon, Maker's Mark bourbon, and Sauza tequila. According to the company website, "Jim Beam is the number one selling premium bourbon in the world." As a world traveler, I've seen Jim Beam on the shelf in London, Paris, Tokyo, and other cities. It's always there! 

A Cause for Concern?

While the merger has the potential to be a game-changer, there are some concerns:

• Craft Beer Soul Lost? Suntory Global Spirits used to be called Beam Suntory, which is like when injury attorneys (or is it attorneys injury?) make a firm that shares two last names (Morgan & Morgan). But already the Japanese enterprise has dropped the Beam heritage. Sam Adams is by no means a small scale brewer, but there is some cause for beer enthusiasts to worry that a giant like this might stifle the innovation and further distance Sam Adams from its independent craft brewing origin.

• Distribution Domination: The combined distribution network could be immense, potentially limiting shelf space for smaller brewers. It's not really a risk or an impact if you're into big brands, but this could mean it'll be harder for upstarts like Eagle Rock Brewery to find distributors willing to take on their beers.

• Brand Dilution: With such a vast portfolio, there's a risk of losing focus and brand identity for both companies. Does a combined company benefit from beer & hard liquor & ready to drink beverages? Or does the company lose focus and potentially market share by focusing on too many things (things being booze)?

Looking on the Bright Side

There are also exciting possibilities to consider:

• Innovation Powerhouse: Beam Suntory's resources could fuel research and development for Boston Beer, leading to groundbreaking new brews. I loved Jameson's Stout and IPA finished whiskies. I could see an aged Sam Adams that spent some time at Star Hill farm in a Maker's Mark barrel.

• Global Expansion: Suntory's international reach could open doors for Sam Adams and other Boston Beer brands to reach new markets. Sam Adams has grown out of its craft beer beginnings. It could do Sam Adams well to spend a semester oversees (it did wonders for my own personal growth).

• Hard Seltzer Synergy: The start of this merger stems from the Beam Suntory / Sam Adams partnership in Truly Hard Seltzer.  Hard Seltzer experienced huge categorical growth over the last five years. With Truly Hard Seltzer posting a "W" for both companies, it seems that they'd be eager to further expand the line, possibly creating exciting new hard seltzer flavors that incorporate Beam Suntory brands.

The Bottom Line

The potential acquisition of Boston Beer Company by Beam Suntory is far from "last call." While there are valid concerns about the impact on craft beer, the potential for innovation and global expansion is undeniable. It's more the story of the acquisition of a very large American brewery (and beverage company) by a gigantic multi-national spirits (and beverage company). Only time will tell how this beverage collaboration unfolds, but one thing's for sure: the beverage industry is watching with keen interest.