This week, the Cooperats Brewery in San Jose, California, is in talks to sell to a brewer who wants to open a brewery and distillery in the city, The Associated Press reported.
Cooperativas are small cooperative businesses in California.
The San Jose brewery is part of a larger cooperative.
Coopers Brewery is an independent microbrewery that is also the primary producer of craft beers.
Coordination between the two cooperatives, known as the Coopers Brewery San Jose (CoPBSJ), is being held up by a “strategic” deal struck last week between the California Cooperative Administration (CCA) and the Cooperates, which owns and operates the brewery.
Co-operators said the deal will help reduce operating costs and allow them to sell more beer in the future.
The CCA’s agreement with the Cooperations has been negotiated over the past several months, with the agreement between the cooperatives to sell the brewery to an investor.
According to the agreement, the co-operatives will pay the investor $1.2 million for a 5% stake in the brewery and the remainder for the brewery’s ownership and management, as well as “substantial equity interest in the business.”
“We believe that the sale will be completed within the next three months, and the CCA will issue an operating permit within the timeframe, as the deal was finalized and approved by the commission,” Cooperativas spokesperson Jennifer Salsman told ABC News.
“The CoPBS has received a lot of support from the California Public Utilities Commission, and we look forward to working with the CCACA and the state to make this transaction a success for our community.”
The deal also includes an agreement to extend the brewery into 2019, as opposed to the brewery currently scheduled to open this fall.
“This deal has been in the works for some time and is not only the result of careful negotiations with our co-owners, but the ongoing discussions with our community,” said co-owner Jim Smith.
“Our members are very excited to see the beer being brewed.”
The Coopers are expected to announce the sale in the coming days.
“The announcement of the sale is going to be a huge moment in the Cooperatives history,” said David Withers, president of the San Jose Farmers Cooperative.
“It will be the start of a new chapter in our cooperatives history, and it will be a milestone in our history as a community.
We will have to be prepared for the transition and we are going to have to find the right person to lead our brewery and develop the business into what it can be.”
Follow the author of this story on Twitter: “I’m in love with Coopers, but I’m still a big fan of my co-worker.”
This story has been updated to include the release of the agreement and CCA statement.