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New Holland partners with Pabst Brewing for craft beer distribution in US

DBR Staff Writer Published 16 December 2016

Pabst Brewing has agreed to handle the national distribution and sales of West Michigan-based New Holland Brewing beers starting early next year.

The companies signed a long-term partnership agreement, which will come into effect during the first quarter of 2017.

Pabst Brewing will use its sales force to sell the complete high-end beer portfolio of the Holland, Michigan based brewer’s portfolio to wholesalers.

The distribution partnership is expected to grow the market share for Dragon’s Milk all-seasonal bourbon barrel stout, making its release virtually unlimited, said New Holland.

New Holland Brewing founder and president Brett VanderKamp said: “This partnership allows us to distribute our beer brands to more consumers throughout the country by leveraging PBC’s robust sales and distribution platform.

“Pabst’s management of our wholesale network will help us accelerate growth and drive success at the shelf.”

New Holland will continue to operate independent besides managing its business functions that include production, marketing and finance for its range of beers.

There will be no change in the brewing which will continue at Holland. The Michigan brewer’s spirits, restaurant and retail businesses will remain unaffected by the new partnership.

Pabst Brewing chairman Eugene Kashper said: “Brett is a passionate brand owner who knows his business. He is programmed with the DNA of New Holland’s brands and is committed to using our platform’s capabilities to maximize success. This is a true long-term partnership on both sides.”

VanderKamp further added: “He understood our desire to remain independent while finding ways to insure our long term success. We quickly found that we share similar visions on building successful brands and being creative in a rapidly changing industry.”

The partnership allows Pabst Brewing to expand its product range besides consolidating its presence in the craft beer sector.

Pabst Brewing CEO Simon Thorpe said: To my knowledge, this is the first deal in the history of craft beer where a large supplier is getting into a partnership with a small brewer without taking any ownership or receiving any option to buy the shares.  This is a long-term agreement set up so that it can last for the next 20 years and beyond.

"It is not about Pabst simply selling some New Holland beer for a fee – there is a bigger idea in what we are building together that speaks to mutual trust, true partnership and a long-term vision of what we can accomplish.”

Apart from Dragon’s Milk, New Holland’s portfolio also includes The Poet Oatmeal Stout, Ichabod Pumpkin Ale, Hoptronix Double IPA and Mad Hatter IPA.

On the other hand, Pabst Brewing which is claimed to be the continent’s largest privately held brewer has a portfolio which includes Pabst Blue Ribbon, Ballantine IPA, Schlitz, Old Style, Lone Star, Rainier, National Bohemian, Old Milwaukee,  Stag and Stroh’s.

Image : New Holland’s Dragon Milk Coconut Rum Barrel Stout. Photo: courtesy of New Holland Brewing.