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News
Beer52 to buy parts of Eebria
Online beer subscription service Beer52 has purchased elements of Eebria, only one day after the distributor went into administration.
The deal will see Craft Beer Holdings, a subsidiary of the subscription service Beer52, purchase some of the trade and assets of the firm.
It said that the deal will “secure a future” for craft brewers as “an important route to market” across the UK and Europe.
Eebria became an online marketplace a decade ago with the aim of matching brewers and customers directly as the craft beer boom exploded.
It had grown to become an important avenue for smaller indies, delivering around £7m of trade each year.
Concern
Following the news, there was concern amongst craft breweries about the move, as because Eebria has entered administration, there was concern about how it would impact suppliers.
Founder of Queer Brewing Lily Waite took to X, stating that suppliers will “get shafted to the tune of thousands despite the company now being well-capitalised”.
So essentially, suppliers will get shafted to the tune of thousands despite the company now being “well capitalised.”
Why not use that capital to, you know, pay the suppliers that “are at the heart” of everything you do, for the beer they shipped out? pic.twitter.com/EwCFD01K2o
— Lily Waite (@LilyWaite_) March 20, 2024
Responding to Waite’s post, Chester craft beer shop and taproom That Beer Place described the move as an “absolute disgrace” and the venue had stopped using the service, and “we’re boycotting from here on in, unless they pay people”.
Others also responded, highlighting how pre-pack deals would negatively impact those owned money from Eebria, with some even questioning how these were still possible in the UK.
Also receiving emails from breweries owed money by Eebria! So not good for those small businesses yet again.
— Beer Revere aka Jules Gray (@beer_revere) March 20, 2024
Speaking about the deal, db beer editor Jessica Mason said: “The issue with pre-pack deals is that they will always look surreptitious, but they’re legal and that’s why they still happen. Is the beer sector largely pleased that Eebria will continue to trade? Sure, we want businesses that have supported craft beer to thrive. Plus, Eebria has been an important part of the craft beer distribution scene for some time now.
“But when an online distributor that owes many small indie breweries so much hits hard times too, the trade loses out. What has happened with the business being immediately ‘saved’ by being acquired by Beer52, not only hits the small independents that are owed money pretty hard, but it also reminds them where the power dynamic is when it comes to their survival.
“Those with deep pockets will always look like the heroes, while the smaller businesses riding through are still viewed as failures. Ultimately, whether the deal is a good thing for the industry or not will come down to how much it supports the craft sector from hereon in. Though, do we blame many of them for being sore about the deal? Especially when the new owners are gloating about their ‘strong balance sheet’ while debts are written off? Not at all, that’s really got to sting a little while they all clamour to make ends meet.”
— Rossputin (@alldoomandgloom) March 21, 2024
Chief executive of Beer52 said the firm was “acutely aware” of how difficult the current trading environment was for brewers, but said that the trade “needs Eebria’s revolutionary platform to thrive”.
Great partner
Darron Anley, founder of Siren Craft Brew, said that Eebria had been a “great partner for many years” and it was “very sad to see another big name in the industry hit the wall”.
Anley said that rising costs, inflation and “pressure on all our wallets” had been “truly relentless.
But he added that he was “delighted” to see Beer52 step in to save the brand.
He said: “We have worked with Beer52 for many years and we are confident that EeBria customers and suppliers will continue to receive great service alongside a new innovative vision for the business which we are sure Beer52 will bring to the table.”