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Toronto’s Steam Whistle to buy Beau’s Brewing Co.

TORONTO, ONTARIO, CANADA - 2016/04/27: Steam Whistle beer tap handle, green design with company's logo. The company produces a premium pilsner lager packaged in distinctive green glass bottles and a non-twist ca. (Photo by Roberto Machado Noa/LightRocket via Getty Images).

Steam Whistle Brewing is buying Beau’s Brewing Co. as the company looks to take on large premium beer brands and bounce back from the COVID-19 pandemic.

The agreement comes after the two craft breweries began working together last year with a deal to sell and distribute their pooled portfolios in Ontario.

“We think we can compete against the major conglomerates in Canada and globally,” Steam Whistle co-founder and CEO Greg Taylor said in an interview Tuesday. “Together we’re stronger.”

Taylor, who came back to run Steam Whistle in 2020 after leaving for three years, also said that the deal would set his company up for success in a post-COVID world after a challenging couple of years.

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Events, brewery tours and tasting rooms are a significant part of the Steam Whistle business and those features took a big hit during the pandemic. With restaurants restricted as well, Taylor and his team focused their efforts on retail sales through beer and liquor stores.

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When Taylor spoke to the Beau’s team, they were in the same boat as Steam Whistle and ultimately saw an opportunity for the two businesses to come together and take advantage of their synergies and experiences in the craft beer industry.

“You’ve got to find a way to survive,” he said.

Beau’s shareholders voted Monday to accept the takeover offer.

Financial terms of the sale were not disclosed.

The sale was endorsed by Beau’s co-founders Tim and Steve Beauchesne, who launched the company in 2006.

Steve Beauchesne will continue to play an active role in Beau’s operations.

Click to play video: 'Steam Whistle giving away dream wedding to frontline worker'
Steam Whistle giving away dream wedding to frontline worker

“You’re not going to see any changes that consumers are going to be surprised about, it’s just going to get better,” Taylor said.

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Taylor sees this deal giving Steam Whistle an additional leg up when it comes to working with retailers and licensees.

Over the last decade and a bit, approximately 1,000 craft breweries and brewpubs have opened across Canada, according to the Canadian Craft Brewers Association.

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