September 30, 2016

Agrial Group, a leading French agricultural, agribusiness, and food co-operative, has agreed to acquire Two Beers Brewing Company and Seattle Cider Company — two separate Seattle-based companies that share a leadership team, for an undisclosed amount.

Both Two Beers Brewing and Seattle Cider will remain as independently operating businesses while also merging with Agrial, which is one of France’s top cider producers and owner of some of the largest apple orchards in Europe. The deal will give Two Beers and Seattle Cider access to new markets through Agrial’s distribution networks that reach into Europe, Asia, and Africa, while also giving Seattle Cider access to novel European cider apple varieties. In addition, the deal will give Agrial exposure to the U.S. craft beer and cider markets for its French cider brand, Louis Raison.

Indeed, Fortune reports that the U.S. craft brew market has seen double-digit growth for the past eight years, according to the trade group, Brewers Association. In 2015 alone the sector reported a 13 percent increase in volume, and control of 12 percent of the overall beer market. Meanwhile, sales volume within the U.S. cider market jumped from 4.5 million cases sold in 2010 to 23.2 million sold in 2014.

“The merger and further partnership will help Seattle Cider Company and Two Beers Brewing grow through Agrial’s international distribution network, gaining access to developing craft beer and cider communities around the world,” said the companies in a recent press release. “It will also allow for needed capital expansion projects for the growing brewery and the cidery.”

After ten years in business for Two Beers and four years in business for Seattle Cider, the companies have grown significantly. Two Beers has become a well-known Seattle brand with expectations of brewing 8,000 barrels of beer this year, while Seattle Cider Co. has grown into the state’s largest cidery, with expected production of 21,000 barrels in 2016.

Explaining his reasoning for the sale, Joel Vanderbrink, founder of both companies states in a letter posted on the Two Beers website, “As Two Beers Brewing Co. enters its tenth year and Seattle Cider enters its fourth year, it became clear that my desires for both companies far exceeded our ability to grow them sustainably – something I have always held as a high priority. “

“The amazing growth and expansion we’ve seen over the past three years has taken us by surprise, and as I looked at where I wanted to take Seattle Cider Company and Two Beers Brewing into the future, I knew we would need a partner to be able to achieve our long term goals.”

Day to day operations at both companies will remain ongoing and Venderbrink will stay on as acting CEO. Likewise, all leadership teams, brewers, cidermakers, and distributors will remain in place after the completion of the deal. Cascadia Capital is acting as exclusive financial advisor to Two Beers and Seattle Cider while Miller Nash is acting as legal counsel.

“This is a huge opportunity for the businesses that I will continue to dedicate my time and energy to,” said Vanderbrink, “I will maintain my role as CEO and all of my employees will continue to work with me. Our products and our distributors will stay exactly the same and our dedication to Seattle and beyond can only increase with the strength of such a strong partner alongside us.”

“I am very proud of everything we have accomplished thus far and I am incredibly excited for what the future holds for both Two Beers Brewing Co. and Seattle Cider Co.”

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Lynda Kiernan