Saugatuck Brewing ‘Merges’ With Gonzo’s Bigg Dogg Brewing

The question needs to be asked. Is this the beginning of the inevitable "right sizing" of the craft beer explosion? After so many years of one craft brewery popping up after another, logic dictates an inevitable shakedown, that the market couldn't sustain this many craft breweries. Has the bubble burst? Or is are mergers necessary for product distribution?

Saugatuck Brewing announced Friday it has bought Gonzo's BiggDogg Brewing. Gonzo's will become Saugatuck Brewing - Kalamazoo, according to a story on MLive. While the deal is being called a merger, Saugatuck Brewing is taking over management of the Kalamazoo business, and will adopt the Saugatuck branding. The deal is pending all appropriate government approvals.

Popular Gonzo's beers will continue to be produced, and Saugatuck beer will begin to be produced in Kalamazoo under the terms of the agreement. Part of the deal appears to be a stock swap and as of now, Gonzo's employees will be allowed to keep their jobs.

With the current and recent financial problems experienced by Kalamazoo's Arcadia Ales, you have to wonder if something similar isn't in the works with that situation, too.