New Hampshire’s Smuttynose Brewing Company has been purchased by Runnymede Investments LLC, a private “family owned and operated” investment group that is headquartered five miles from the brewery.  The sale occurred at an auction held at the brewery, for $8.25 million.   Runnymede purchased Smuttynose from The Provident Bank, who had bough the brewery in March at a foreclosure auction.

Runnymede appointed booze industry vet CEO Richard Lindsay as new Smuttynose CEO.  “Our immediate priorities are focused on growth,” said Lindsay.   “We’re making plans to add personnel to our sales team and provide them with resources to make them effective in this competitive market.  We also plan to make an investment in a canning line that will allow us to participate in a growing segment of the craft beer market.”  Read the press release.

What happened?

The source of Smuttynose’s financial trouble seems to be very similar to the forces that recently took down Green Flash.  “The company’s financial models were based on 20 years of consistent growth but the explosion of microbreweries has led to changing dynamics in the marketplace,” said Smuttynose founder Peter Egelston. “This dramatic shift occurred just as Smuttynose committed to a major infrastructure investment with the construction of the new production facility.”  Slowing growth + badly-timed expansion = money troubles for a brewery of any size.

Is it still Craft?

Despite the sale, Smuttynose remains a Craft brewer as far as the B.A. Craft Guidelines are concerned (they are Small, Independent, and Traditional).