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Mendocino Brewing Company Being Infused with 2 Million Dollars

 

Mendocino Brewing Company

The Mendocino Brewing Company, (also known as the Hopland Brewery) was the first brewpub opened in California in 1983 after the repeal of the 18th Amendment (by the 21st Amendment in 1933). It didn’t take very long for the Hopland Brewery located at Hopland on Highway 101 in Mendocino county, California to become a landmark.

It was in December 1983, the brewery introduced the worlds largest 6 pack featuring 6 magnums of Red Tail Ale. Within 5 years the distribution network increased to 300 outlets in Northern California. Red Tail, Blue Heron and Black Hawk had grown to 14 states nationally. By 1989, the demand of distributors made plain the need for 12 oz. bottles.

In the 1990′s, it was evident for a dramatic expansion. So they acquired a piece of property just 12 miles north on Highway 101 in the county seat of Ukiah. Architects were in charge in making the facility appealing to the eye in its surroundings as well as providing for efficiency and growth in the interior.

Vijay Mallya

Dr. Vijay Mallya

It was in 1997 that Dr. Vijay Mallya, a global entrepreneur, took interest in the Mendocino Brewing Company. Dr. Vijay Mallya, the head of “The UB Group”, a worldwide manufacturer of spirits and beer, believed that given the capital, the Mendocino Brewing Company could remain in a position of strength for years to come. The addition of Olde Saratoga Brewing in New York state propelled the Mendocino Brewing Company into a East-Coast/West-Coast distribution, which brought a fresher product through dramatically shortened supply lines.The Mendocino Brewing Company 1983 production of about 400 barrels (5,500 cases) to the current production of about 75,000 barrels (over a million cases) from distribution over the bar in Hopland to nearly nationwide distribution in countless stores, restaurants, bars and tap houses.

Now the Mendocino Brewing Company has reported to have only $40,700 cash reserves, an accumulated deficit of $14.27 million and working capital gap of $7.2 millon. Subsequently the company is said to have slipped into losses in the July-September quarter.

The UB Group holds 68.1% in the company while United Breweries of America owns 24.5% in the company, it was reported. The UB Group Chairman Vijay Mallya has decided to infuse $2 million into the cash strapped Mendocino Brewing Company. According to Mendocino’s regulatory filing with the United States Securities and Exchange Commission, the United Breweries Holdings Ltd. has agreed to commit an initial funding of $2 million in four half yearly installments with the first installment to be remitted immediately. This investment is being made to protect and enhance the value of its existing investments in the Mendocino Brewing Company.

The investment commitment has been communicated by United Breweries Holding Limited through a letter addressed to Mendocino Brewing Company CEO Yashpal Singh, a copy of which has been filed with the SEC. U B Group chief Mallya who also chairs the board of the Mendocino Brewing Company. United Breweries Holding Limited said it would prefer infusing money by way of ordinary voting stock and it has asked Mendocino Brewing Company to advise it on modalities for equity infusion after a board discussion.

Dr. Vijay Mallya is not only the Chairman of the United Breweries Group, but also Chairman of Kingfisher Airlines, Force India F1 Team, Royal Challengers Bangalore, East Bengal FC. and URBB. Also Dr. Vijay Mallya in 1995, was nominated as a global leader for tomorrow, by the World Economic Forum, Davos, and over the years he has been conferred industry awards for his contributions. to business.

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