The Brown Jug chain boasts $80 million in annual revenue and 218 employees. Afognak will leverage its acquisition of Brown Jug to serve as a responsible leader in retail sales. “Our focus is on promoting safe use and compliance,” said Alisha Drabek, executive vice president of Afognak.
Afognak Native Corp. sought to diversify into the commercial sector, and has strategically moved into an industry that tends to remain steady, or even surge, through economic downturns.
Afognak has acquired the 21-location Brown Jug chain of retail liquor stores across Alaska. The $21.4 million transaction increases Afognak’s commercial revenues from 2 percent to 12 percent of its business, while decreasing its reliance on government contracting, which still accounts for 88 percent of its projected revenues.
The purchase from Edmonton, Alberta-based Alcanna Inc., puts ownership of Brown Jug — purportedly Alaska’s first and largest retailer of wine, spirits and beer — in the hands of a Native village corporation. “Brown Jug was born and raised in Alaska and remains one of the state’s most well-known brands,” said Greg Hambright, President and Chief Executive Officer of Afognak, in a statement.
The Brown Jug chain boasts $80 million in annual revenue and 218 employees. Afognak will leverage its acquisition of Brown Jug to serve as a responsible leader in retail sales. “Our focus is on promoting safe use and compliance,” Alisha Drabek, executive vice president of Afognak, told Anchorage Daily News. “This is an opportunity for us to take a leadership role in the state on that.”
Brown Jug’s 21 retail locations are dispersed in Anchorage, Eagle River, Wasilla and Fairbanks; venues range in size from 1,400 to 14,000 square feet. The purchase includes an Anchorage-based, 40,000-square-foot warehouse distribution center.
Afognak from the Kodiak Island region and its subsidiaries employ more than 4,000 people, while serving more than 1,000 shareholders who are descended from the Village of Afognak. As an Alaska Native village corporation, Afognak delivers benefits to shareholders to strengthen Ag’wanermiut, “our community,” economically, socially and culturally.
