Accountants Don't Like Widmer, But Beer Drinkers Do

Portland Business Journal has a story that paints the current state of the craft brewing business as sour mash.

Less than six months after Woodinville, Wash.-based Redhook Ale Brewery Inc.’s merger with Portland’s Widmer Brothers Brewing Co., the new company has written down the value of the Widmer brand by more than a third.

Last week, the company that resulted from the merger, Portland-based Craft Brewers Alliance, released its 2008 annual report. For the year, the company lost $33.3 million on $86 million in revenue.

Yet there's reason for hope on the home front. Widmer just started making its Drifter Pale Ale available and it's doing well.



Yet, December and January shipments for all Oregon craft brewers fell by 5 percent and 7 percent, respectively. But in January and February, shipments for all beer in Oregon actually rose by 10 and 20 percent, respectively.

“It would appear trading down from higher-priced, locally-made beer has already begun in earnest,” said Brian Butenschoen, executive director of the Oregon Brewers Guild.