Epilogue: Justice Department Approves CBA Sale

The US Department of Justice finally approved AB InBev’s proposed purchase of Craft Brew Alliance on Friday, ending a melancholy chapter in Northwest brewing history. ABI announced the acquisition more than ten months ago, so the announcement counts more as a denouement than real news. Still, the announcement cements the legacy of two of America’s founding craft breweries.

The global giant picked up a mini-conglomerate comprised of six breweries and eight brands, but the deal was really all about Kona Brewing, which now constitutes around two-thirds of CBA’s production.

CBA started as a merger between Portland’s Widmer Brothers and Seattle’s Redhook, the latter dating back almost four decades. In 2019, Widmer’s brands accounted for just 13% of CBA’s production, and Redhook a feeble 8%. Both have been declining for years, and their prospects are dim. Widmer’s flagship Hefeweizen may survive as a regional brand, but it’s harder to see why ABI would support Redhook, which has no iconic brand.

I wrote a history of Widmer Brothers, which describes why the brewery was so pivotal in Northwest and American brewing. Despite the sale, it’s still a fascinating story. Buy a copy here.

Except for a boutique brewpub in downtown Seattle, Redhook barely exists. Widmer is a different story. The 750,000-barrel brewery is one of Oregon’s largest, and still produces much of CBA’s beer and cider. Until two years ago, it played a major role in Portland and Oregon brewing, producing not just legacy brands, but impressive, award-winning new beers. The founders, Kurt and Rob, were something like amiable uncles who offered support and guidance to the generations who followed them. Now there’s a real question of whether AB InBev will keep brewing here—or, if they do, for how long. It hardly matters: the brewery closed its pub more than a year ago and wound down investment in new products. Even before the purchase, CEO Andy Thomas told anyone who listened that CBA was Kona now—a curt dismissal of the hometown label.

Now that Widmer and Redhook are dying brands in a large portfolio owned by a three-continent megabrewery, the connection to Portland fades into history. Famously parochial local drinkers have many alternatives to choose. Widmer’s status as an important local brewery has ended its 36-year run.

So one last time: goodbye, Widmer Brothers. You played a pivotal role in turning Portland into Beervana, and brewed a hall of fame beer. Kurt and Rob, you were pioneers, savvy businessmen, but most of all, gentlemen. Wherever you are, good luck and Godspeed.