Charalottesville, Va., brewery Starr Hill announced “that Anheuser-Busch will become the master distributor for Starr Hill, giving it the benefit of Anheuser-Busch’s logistical expertise in managing distribution, as well as access to more independent and chain retail accounts.”

From the press release:

“We’re proud that our products have been added to Anheuser-Busch’s select list of craft beers offered through its world-class distribution network,” said Mark Thompson, founder and president of Starr Hill Brewery. “Our beers have won twelve awards so far, eleven from the Great American Beer Festival and one from the World Beer cup. This alliance now offers us unparalleled distribution resources and the expertise to distribute our award-winning beers beyond our core base in Virginia. We founded Starr Hill with the mission of sharing great beer with the world, and this represents yet another step towards fulfilling that dream.”

The Daily Progress newspaper reported that “before going nationwide, Starr Hill will focus on selling its beer across Virginia for the first year of the distribution deal.”

“We’re committed to providing new and exceptional beverages to those adult consumers who are looking for specialty products,” said Dave Peacock, vice president, marketing for Anheuser-Busch, Inc. “Starr Hill has already developed a loyal following among craft beer consumers in Virginia, and together with our wholesaler network, we’re looking forward to enhancing the distribution and sales support for these award-winning beers.”

Brewing and marketing decisions will remain the responsibility of Starr Hill and its management. Starr Hill produces 3,161 barrels (31 gallons each) of beer in 2006.

Flying Dog Brewery will close its Denver brewery and move all production to Maryland, where it has operated a brewery since 2006.

Eric Warner, president and CEO of Flying Dog, announced that the company is concentrating its brewing operations at the state-of-the-art facility in Frederick that it acquired from Frederick Brewing. Warner also announced that the company recently raised $3 million in capital to fund continued development of its brands.

Flying Dog Brewery in Denver will produce its last beer in January 2008. The company will maintain its corporate headquarters in Lower Downtown Denver, and Flying Dog’s 13 craft beers will continue to be distributed throughout Colorado.

Increased costs of raw materials, including hops and malt, combined with the loss of contracts from smaller craft brewers were a significant factor in the decision, Warner said.

“By concentrating the brewing operations in Maryland, we will become a more efficient business, which is very important given the extremely competitive conditions in the craft beer industry,” he said.

“Aside from the concentration of production, we’re proud to say that our customers won’t notice a difference,” Warner said. “We are committed to providing our customers in Colorado and throughout the country with the highest-quality craft beers that they’ve come to know and love.”

The Maryland facility, where 70% of Flying Dog’s beers are already being brewed, has more modern brewhouse equipment and a more spacious warehouse and cooler.

“The building our Denver brewery is in is old and needs a minimum of $1 million in infrastructure improvements to keep up with our increasing production levels and product quality standards,” Warner said. “This year alone, we saw a 20 percent unit growth – our strongest yet. Concentrating our operations at the Maryland facility will allow us to the meet the growing demand by surpassing current production levels.”

There will be no layoffs as Flying Dog Brewery’s Denver production team will all be offered jobs at the Maryland brewery including relocation packages.

Boston Beer Co. has made it official that it will not build a new brewery in Free Town, Mass.

The brewer of Samuel Adams beers sent a letter to officially end its relationship with Freetown, eight months after the brewer accepted tax incentives from the town and announced plans to invest about $200 million to build the brewery.

Instead of building a new facility in Freetown, Boston Beer bought Diageo North America, an existing brewery in Lehigh Valley, Penn., for $55 million. The brewer plans to spend another $50 million to renovate the plant, and will start operations there next summer.

Boston Beer will write off $3.4 million in capital investments, including engineering, for development of the Freetown property.