Steam Whistle buys Beau's Brewing Co.

Beau's Brewing Co. has been purchased by Toronto-based Steam Whistle Brewing, though the brewery says it will maintain a presence in eastern Ontario.

In 2006,SteveBeauchesneand his father Tim co-founded the brewery with the well-known vintage green tractor logo and its award-winning "Lug Tread Lagered Ale."

On Monday, 129 shareholdersa mixture of original investors and employees who, five years ago, gained the power to invest in the brewery where they workedvoted to accept an offer for share purchase. The details of the offer are confidential.

Steve Beauchesnesaid the pandemic"dramatically" impacted the business, erasingabout half of the brewery's revenue "overnight."

"Rather than just struggling through and trying to find a way to survive, this will allow us to survive,"said Beauchesne.

The deal willallow Beau's tocontinue to brew beer at its main location in Vankleek Hill, Ont., he said, but the new ownership willlikely bring some changes.

"We're still trying to figure out exactly what we're going to do," Beauchesneadmitted.

Co-founder Tim Beauchesne to retire

Founded in 2006 by Steve and his father Tim, about 60 people currently work for Beau's.

Steve will continue toplay an active role in eastern Ontario operations after thedeal goes through, but itallows his father to retire at age 71.

A news release saidthe father and son endorsed the takeover by Steam Whistle, a brewery that has also touted its useof organic and natural ingredients in the brewing process.

"I've enjoyed collaboratively competing with them over the past 15 to 16 years or so," said Beauchesne.

It's not the first time the two craft brewers have workedtogether.

In November, the two companies announced an alliance to sell and distribute their pooled portfolios in Ontario.

Beau's hurt by pandemic's effect on beer industry

The purchase did not surprise Stephen Beaumont, a brewing industry expert and co-author ofThe World Atlas of Beer.

He said thepandemic had "focused beer drinkers' energies" insupport of brews fromthe smallest, hyper-local crafter breweries.

The "drink local" ethos has been hard on import and national brands, as well asmedium-sized, regional craft brewers likeBeau's.

"Probably at one time they would have ranked as among Canada's most innovative breweries," said Beaumont.

But he also said Beau's slowness to get on board the "can craze" and to capitalize on the surging popularity of India Pale Ale beers "caught them on the back foot."

Finally, he said because Beau's brewery was not located close to Canada's largest beer markets in southern Ontario, a company withnationalaspirations was at a disadvantage.

The sale of Beau's to Steam Whistle likely wouldn't turn off dedicated drinkers of its beer, he said, or seethem accuse Beau's of "selling out."

"I think, increasingly, craft beer drinkers are becoming immune to these takeovers," he said.