Deschutes Brewery’s Smart Boneyard Beer Acquisition

Two of Bend, Oregon’s most acclaimed breweries have joined forces. And we’ve some thoughts on why both breweries made the move.

Here’s the deal…

On March 4 Deschutes Brewery, the 11^th largest craft brewery in the nation, announced that it had “joined forces” (a politer choice of words than acquired or bought) with Boneyard Beer, a much smaller brewery with, some might suggest, a much hipper vibe.

Both breweries draw beer pilgrims to Bend, Oregon, a true craft beer mecca if ever there was one.

It all started in Bend with Deschutes Brewery, which Gary Fish launched as a brewpub 1988 and fast became one of the nation’s largest craft breweries.

The brewery’s incredible success helped establish the city as a craft beer destination and served as training ground for brewers like Tony Lawrence, who began  his brewing career alongside Fish at Deschutes before stepping away and starting Boneyard Beer in 2010.

From there the two breweries diverged in both imaging, and scale only to become one company again in 2021…a company that will benefit from each brewery’s separate journeys.

Over the years Deschutes has become one of the most widely available craft beer brands in the nation. But it’s growth and momentum has slowed in recent years as craft beer consumers transitioned away from more widely distributed, national craft beer brands, to smaller and uber-local breweries that sold super fresh small-batch creations from their taprooms.

And unlike Deschutes’ more traditional sensibility, Boneyard has quirkier roots.

Boneyard Beer was created in an old auto shop tucked away in the backstreets of Bend. The brewery was built using old equipment collected from more than a dozen breweries across the country, hence the name Boneyard.

So it’s an interesting acquisition…one that both breweries need right now.

Covid-19 has upended the craft beer landscape. Now distribution is king, and not only can Deschutes afford Boneyard a more national presence, it has the production capability to help the much smaller brewery scale up its brands.

At the same time, Deschutes, a heritage brewer, will benefit from its association with what some see as an edgier (read: more youthful) brand. Boneyard’s skull and wrench-bones logo and ski bum meets biker vibe couldn’t be more different from Deschutes’  mountain and river imagery.

“I’m most excited about the opportunity this union provides both companies,” Fish said. “Boneyard’s rebel spirit and independent attitude will be great for Deschutes. One of the most significant aspects of this deal is that both brands will retain their separate identities, continuing to do what they do best.”

“I whole-heartedly believe we can do great things together, Lawrence added.  We have respect for our roots and we’re proud of our journey, but that journey is far from over.”