Arizona craft beer merger: Huss Brewing Co. acquires Papago Brewing Co.

Local and regional breweries are expanding everyday, often by adding capacity or new markets, but some are going the Big Beer route, believing there is strength in numbers, and making acquisitions. In Tempe, Ariz., Huss Brewing Co., just got stronger by going in that acquisition direction, buying Papago Brewing Co. in Scottsdale. This combination could make the joint effort the third largest brewery in the state.

And as a nice side effect of such a deal, the move ensures these local brands will be staying local and not be fielding any deep-pocketed suitors from out of state.

From the Scottsdale Independent:

Due to space constraints, Papago has always outsourced the brewing of its beers to local breweries, including Huss Brewing Co, which has crafted each of Papago’s beers. The craft beer bar and restaurant was not part of the deal and will continue to operate and use the Papago Brewing name under license.

“Unlike many other of the big brewery mega mergers that have occurred over the last few years where global conglomerates come in and buy local breweries and say nothing will change, in this deal it is being kept local and is in the best interest of consumers, and yes, things will change,” stated Ron Kloth, president of Papago Brewing. “Papago first started out as a small homebrew shop, but as the craft beer market has grown, and the beer production side of our business has also grown dramatically, we realized Huss Brewing can support the Papago brand in the Arizona market better than we could, and this deal is just the next logical step for us to go in order to continue our business evolution.”

Huss Brewing Co. opened in August 2013 with a 30-barrel system and has since doubled brewing production capacity as one of the fastest growing breweries in the state.