Association of Brewers & BAA to merge

Modern Brewery Age,  Oct 11, 2004  

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After a two-day meeting in Boulder, Colorado, the Association of Brewers (AOB) the Brewers Association of America (BAA) have announced an agreement to merge.

If the merger is approved, the new organization will be named The Brewers Association and will be based in Boulder. It would begin functioning on January 1, 2005. The new association would also establish a legislative affairs office in the Washington, D.C. area.

Sources report the merger has been in the works for about 18 months. Kim Jordan, co-founder of the New Belgium Brewing Co., was said to be the driving force behind the initial merger discussions.

"There are a lot of lawyers scurrying around to discover any surprises," one observer said, but the boards of both organizations have approved the agreement in principle. ("subject to due diligence by special committees of both groups and the entry into a final, definitive agreement," the scurrying lawyers note).

The agreement is also subject to approval by the membership of the BAA. The BAA reports that its board has unanimously recommended that the association membership approve the transaction, subject again to "due diligence, amendments to the AOB charter and bylaws and a definitive final agreement."

"We believe that a combined organization will result in a stronger voice for small brewers in the media, in the nation's capital and in state legislatures," said Gary Fish, Chairman of the BAA and President of Deschutes Brewery in Bend, OR. "We are part of a government-regulated industry, and we need to marshal all the support we can to represent the interests of small brewers. The goals of both organizations are to promote and protect the industry. Together, we will do a much better job."

Charlie Papazian, founder of the Association of Brewers, will serve as the president of the new association, but will not be on the board. He will initially serve under a one-year contract.

"There now are more than 1500 breweries in the United States, more than any other country in the world, and a united voice will enable us to tell our story to the world more effectively," said Mr. Papazian.

The Boulder-based AOB was first formed as an educational association to help promote the brewing renaissance that began in the U.S. in the late 1970s.

Papazian is author of "The Complete Joy of Homebrewing," a best-selling how-to book that inspired many small brewers.

The AOB now runs the American Homebrewers Association, the Great American Beer Festival and the World Beer Cup, the annual Craft Brewers Conference, and publishes "The New Brewer" magazine and other publications.

In the past decade, the once moribund BAA, which represented America's dwindling regional brewing industry, has revived into a dynamic trade association. BAA enlisted many of the new brewing companies that have sprung up across the country, thereby increasing membership and resources. The BAA revival was led by Henry King, Gary Galanis, and, for the last few years, by Daniel Bradford.

Industry observers credit Mr. Bradford with making great strides in professionalizing the association.

Mr. Bradford, who has been offered the post of legislative director for the new association, supports the merger strongly.

"This merger is a great thing for small brewers," Bradford said. "These brewers are now in control of their own trade association. This merger brings together the business focus and commitment of the BAA with the administration and resources of the AOB. It will be an association for brewers, that is run by the brewers. There will now be one unified voice for America's small and regional brewers."

Papazian said the deal will bring together "This transaction represents the best of the new and the best of the heritage of small brewing in America," said Papazian. "Joining the forces of the AOB and the BAA will greatly strengthen our marketing and our political initiatives."

"No one expects this to be an easy year as we work to integrate these two organizations into a single, stronger and more dynamic one," said Papazian. "But with the energy and dedication of everyone involved-from staff to board members to the membership as a whole-this will be a great new day for the small brewing industry."

The AOB/BAA agreement in principle consists of the following points, which will be reflected in a definitive agreement between the parties and in the charter and by-laws of The Brewers Association:

* The AOB and the BAA will combine to form a single organization to be named The Brewers Association using the existing AOB not-for-profit entity. The AOB charter and bylaws will be amended to achieve the goals of both organizations. The former BAA members will then be asked to join the newly minted "The Brewers Association."

* The headquarters will be in Boulder, CO, with a legislative affairs office to be set up in the Washington, D.C. area.