Lion New Zealand has finalised an agreement to acquire one of the country’s most well-known and successful craft breweries. The acquisition of Panhead Custom Ales will come into effect on 1 July this year, making it the fourth craft brewery owned by Lion in New Zealand.

Lion is now New Zealand’s largest beverage company and brewer, with other breweries including The Pride in South Auckland as well as Speight’s and Emerson’s in Dunedin. The company generates over $800million worth of economic activity for the country, with Steinlager, Mac’s, Stella Artois and Corona also major players in its portfolio.

Panhead Custom Ales will continue to operate as a standalone business under Lion. Beers will still be made at Upper Hutt and under the direction of brewery founder Mike Neilson.

“The chance to have Panhead’s future supercharged by a merger with the big boys was too good to pass up. Lion’s backing will help Panhead grow to a point where anyone, anywhere in the country will be able to experience our beer,” Neilson explained.

Rory Glass, Lion New Zealand’s Managing Director, said, “Panhead is a phenomenally successful brewery, with a fantastic range of award-winning beers, and some big growth aspirations. We have no interest in changing its winning formula. Lion’s investment in Panhead will free Mike and the Panhead team to do what they do best – brew great beer.”

Neilson will continue as Head Brewer, and together with General Manager Josh Drake, will be responsible for the day-to-day running of what’s going to be a very productive brewhouse. All other roles within the Panhead business will remain unchanged.

Panhead comes from the slang name for a legendary motor bike engine of the 1950s and is a nod to Neilson and his dad’s passion for petrol. Both are enthusiastic hot rodders and revel in the creative repurposing of old American iron. The four beers that launched Panhead Custom Ales – Supercharger APA, Port Road Pilsener, Quickchange XPA and Blacktop Oats Stout – are still made today. They show how thoroughly Mike has had his finger on the pulse of kiwi beer hounds. All have been gonged at various industry bunfights, with Supercharger APA in particular put on a pedestal by hopheads ever since.