South Carolina’s first craft brewery will soon be owned by a North Carolina company.
Catawba Brewing Co., based in Morganton, N.C., is purchasing Palmetto Brewing Co. for an undisclosed amount, with the sale set to close by the end of the year. The Pyatt family, which owns Catawba, will retain 100% ownership of the company.
“The closer we became to Palmetto’s owners, the Lipov family, the more we realized our two companies were very similar,” Billy Pyatt said in a statement. He added, “Their culture is one of giving back to the employees and the communities served, and their attention to customers mirrors ours.”
Palmetto Brewing Co. was founded in 1993. It is projected to produce 16,000 barrels of beer this year, up from 2,000 barrels in 2012. Catawba, founded in 1999, is projected to produce 17,500 barrels of beer this year.
Larry Lipov, owner of Palmetto Brewing, said in a statement that he’s looking forward to working with Catawba to grow both companies’ brands.
“The opportunity for combined growth and shared resources will put both brands in a more competitive position to compete in the rapidly changing craft market,” he said.
Pyatt said increasing market consolidation and cost pressures are making it difficult for the companies to separately remain competitive as small, independent brewers.
“The scale and scope of this new, combined entity will help us stay on our trajectory,” he said.
Upon finalization of the purchase, Catawba is planning a $1 million capital investment in both the Morganton and Charleston facilities, including facility upgrades, new equipment and additional personnel. A spokeswoman for the company said there will be no changes to current personnel.