How Smuttynose Brewing Co. plans to double its revenue by buying two iconic breweries

HAMPTON — Just two months after toasting its purchase of Brooklyn-based craft brewery Five Boroughs Brewing, Hampton’s Smuttynose Brewing Co. has come up with quite the chaser.

New Hampshire’s largest craft brewery announced last week it is also adding Massachusetts mainstay Wachusett Brewing to its expanding portfolio.

The two moves are expected to nearly double the revenue for the popular brewery based at Towle Farm Road in Hampton, while greatly enhancing its presence in Massachusetts and New York.

Along with the strategic increase in market share, Wachusett appears to be a good fit: It shares many of the same core elements inherent in the successful and resilient Smuttynose story.

Both breweries were founded in 1994, well before the relatively recent craft beer explosion, and have featured strong innovation in the brew room while also creating iconic signature brews along the way. While Seacoast beer lovers can still count on familiar favorites like Old Brown Dog and Finestkind IPA, they will now enjoy Wachusett staples like its award-winning Blueberry Ale and Green Monsta IPA.

“The shared core elements between Wachusett and Smuttynose certainly played a significant role in this acquisition,” said Steve Kierstead, CEO of Finestkind Brewing, the parent company of Smuttynose. “Both breweries have a strong sense of community, a commitment to innovation, and a robust taproom presence. These similarities align perfectly with Finestkind’s ethos and were key factors in making this move. It's not just about expanding our business; it's about partnering with great people and a company that shares our values and vision for the craft beer industry.”

Wachusett produces 15,000 barrels annually (there’s 31 gallons of beer in a barrel for those of you counting at home) and will increase Smuttynose’s output to over 50,000 barrels annually. Founded on a large farm in Westminster, Massachusetts, by three college students 30 years ago, Wachusett Brewing features two thriving taprooms in Westminster and Worcester. Similarly, with its recent acquisition of Five Boroughs Brewing, the New Hampshire brewery will also add Five Boroughs' bustling taproom in Sunset Park, Brooklyn, which will continue to operate as an innovation hub for the brewery.

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Kierstead indicated that the Wachusett purchase was a relatively smooth one and called it a “carefully considered decision that was a win/win for both sides.”

“Both parties recognized the strategic benefits and potential synergies making the process positive and forward-looking,” Kierstead noted. In a statement, Wachusett shareholder Bret Williams added that the sale “preserved 90% of the jobs” at the brewery.

Many of Five Boroughs Brewing’s offerings are already on tap at the Restaurant at Smuttynose, and the brewery is looking at how best to incorporate the array of offerings from Wachusett, which has long been a trailblazer in the fruit beer category.

“The exact range of products from each brewery at our locations is still being decided,” Kierstead said. “This consideration stems from our respect for the unique identity of each brand and the invaluable input from the Wachusett team.”

As far as the future goes, Kierstead says look for Smuttynose to continue to push the envelope as it explores new spaces like non-alcoholic offerings and ready-to-drink pre-mixed products to complement its already established Island District craft cocktail line.

“Finestkind is always on the lookout for new ways to improve our market presence and product offerings,” Kierstead said. “We're constantly pushing boundaries and working hard to bring you innovative and unique products in the craft beer world and beyond.”

The two recent additions cap a remarkable turnaround for the brewery, which Kierstead and his management team bought out of foreclosure in 2019.

“It's been an incredible journey,” Kierstead said. “While we had high expectations from the outset, the scale and speed of our progress have been remarkable. It's a testament to our team's hard work, strategic vision, and the loyal support of our customers and community.”

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This article originally appeared on Portsmouth Herald: Why Smuttynose Brewing Co. acquired Wachusett Brewing