Brewery Buyouts Follow Me to Santa Barbara: Epic Bought Telegraph

I remember when AB-InBev bought Goose Island, but that wasn’t terribly shocking since Goose was already part of the Craft Brew Alliance family, which itself was minority-owned by ABI. I remember when the house of Budweiser bought 10 Barrel out of tiny Bend, Oregon and THAT felt like a big deal. I was surprised that such a behemoth in the beer world was interested in an upstart crafty company in a remote pocket of Oregon. As the wheel keeps turning, we’ve seen major acquisitions (Lagunitas, Ballast Point) and some less earth-shattering ones (like when Heineken-owned Lagunitas bought minuscule but mighty Moonlight Brewing or Green Flash bought infinitesimal but incredible Alpine Brewing). So it is with today’s breaking news that Utah’s Epic Brewing, which already has a satellite brewing in Denver’s booming River North District, has agreed to purchase Telegraph Brewing based right here in Santa Barbara.

When I went to school here at UCSB in the mid-nineties, Santa Barbara Brew Co. opened during my senior year. The Brewhouse was a couple years from opening when I graduated. Heck, even Firestone Walker, which in 2015 was folded into the Belgian-owned Duvel-Moortgat, hadn’t started slinging its pale ales (to say nothing of its 805 blonde ale juggernaut). In other words, the last time I lived in this tropical oasis, it was a beer desert. As the Prodigal Gaucho returns, I have found a quaint little brewing scene (keep in mind I moved here via Portland a.k.a. Beervana). SB is home to six breweries (Telegraph, founded in 2006, being the third oldest and arguably the best). North a bit in Goleta there are four good breweries. Down in fire-ravaged Ventura there’s a mini boom going on where the eighth, Leashless, just opened. This reminds me, I hope the unfortunately-named Smoke Mountain Brewery is okay!

Having said that, it’s not exactly like California’s Central Coast is even a burgeoning beer Mecca. The Golden State’s already got San Diego and the Bay Area. Russian River put Sonoma County on the map while even late-to-the-table Los Angeles is now charging ahead as a boomtown. Heck, even East Coast centric BeerAdvocate is hosting its first Extreme Beer Fest-LA this weekend (that I hope to attend but those aforementioned wildfires will likely keep me from being able to make it). So one of the things I’ll be diving into in upcoming coverage is how, exactly, Utah’s four-time GABF winning brewery that produces 27,000 barrels a year singled out Santa Barbara’s six-time GABF winning tiny brewery. From a recent phone conversation with founder Brian Thompson—who I first met when I ambled unannounced into his fledgling brewery in 2006—I gathered he was feeling the heat of today’s beer industry logistics. But when faced with a rumor that his was the brewery listed on an industry board as being for sale, he shot down that notion! Perhaps hearing his name in the rumors got his own wheels turning. Stay tuned for more. And if you’ve never tried any Telegraph Beer, go out and buy some and see what Epic is already hip to.

Here’s the release sent out today:

 Epic Brewing Completes Purchase of Santa Barbara’s Telegraph Brewing Co.

Salt Lake City, UT— On December 6 th Epic Brewing purchased Telegraph Brewing Company, Santa Barbara’s first and original craft brewery, and has announced investment plans to expand Telegraph and broaden the brewery’s reach as an additional brand in the Epic family.

Telegraph Brewing has been operating in Santa Barbara since 2006 when Founder Brian Thompson opened his dream brewery, focused on high-quality, Belgian-inspired, uniquely-Californian beers produced with local ingredients.

“So much has changed in the craft beer world since I started Telegraph, back when hazy beers were just called unfiltered and there were fewer than 1,500 brewers nationwide,” Thompson said. “Today, with the number of breweries approaching 6,000, the craft brewing landscape is radically different. We are extremely proud of what we have accomplished, but the increased competition from the likes of AB-INBEV’s “crafty beers” as well as new startups is requiring everyone in the industry to recalibrate their plans for the future. Earlier this year I began looking for ways to strengthen our legacy, and entering into a transaction with Epic was the right fit, both strategically and culturally. This partnership will allow us to nurture our deep California roots, retain and expand our amazing staff, and continue to develop our brand in new and innovative ways. My team and I are excited that Telegraph Brewing will remain a small, independent craft brewery and at the same time have the support and drive provided by one of the nation’s most creative, fearless, and fastest-growing brewery.”

With Epic’s investment, Telegraph will not only continue brewing its well-respected beer, but will begin expanding its brewing operations. There are immediate plans to increase the production capacity and offer new packaging options, including several new 12-ounce cans under the Telegraph brand. Epic will also move seven of their foeders—large wooden vessels for aging sour beer—from their Denver brewery to Santa Barbara, enabling Telegraph to produce more of its award-winning sour beers. California locals can also look forward to a new series of modern IPAs including some juicy and hazy styles, which will be sold fresh from Telegraph’s brewery.

“It’s a long-term dream come true” says Dave Cole, Co-founder of Epic Brewing. “I fell in love with craft beer living in California and that love didn’t diminish when I moved to Utah despite the beer scene at the time. I feel like I’ve come full circle. We have been actively looking for great breweries to purchase for the past 18 months and bringing Telegraph Brewing into the Epic family is exciting. We are investing in the future of Santa Barbara and are thrilled to have a direct and local connection to the amazing California craft beer community, where we share so much history. To be part of such a well-regarded brewery like Telegraph is something I’ve always hoped to do and now it’s finally a reality. It provides us an avenue to combine our teams and build on Telegraph’s portfolio with our innovative vision. This couldn’t be a better fit – including some advantageous distribution overlaps that create opportunities to expand both brands across California and beyond.”

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Epic Brewing Company, LLC was opened in May of 2010 in Salt Lake City and expanded to Colorado in 2013. Epic is 100% independent and family owned and is known for its innovation of style and wood aged beers, currently producing over 27,000 Barrels a year. Epic is distributed in the following states: Arizona, California, Colorado, Idaho, Illinois, Indiana, Maryland, Massachusetts, Michigan, Minnesota, Montana, North Carolina, New Jersey, Nevada, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, Utah, Virginia & Washington D.C., Washington, Wisconsin, & Wyoming.

Telegraph Brewing, Santa Barbara’s original craft brewery, sold its first kegs in 2006 and specializes in brewing uniquely American and Belgian-inspired beers. Telegraph uses 100% domestic ingredients and as many local ingredients as possible, capturing in each sip the unique culinary and agricultural traditions of Santa Barbara and California’s Central Coast. Since 2011, Telegraph has won six Great American Beer Festival medals and two World Beer Cup awards.