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Old 12-20-2011, 11:31 PM   #1
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Default Look Out Craft Breweries - Here Comes BMC...

From The Wall Street Journal:

"The craft beer industry continues to enjoy considerable growth and U.S. mega-brewers are devoting more attention to a segment that still only owns just 7 percent of the entire beer market.

In an interview with the Wall Street Journal, MillerCoors President Tom Long said his company is a ‘big player in craft,’ citing the Blue Moon and Leinenkugel’s brands as examples.

Long said he plans to grow the company’s craft portfolio 60 percent over the next three years through its craft beer division in Tenth and Blake.

According to Long, craft is an area MillerCoors is most interested – and for good reason. Recent SIG data puts the craft segment up 13.8 percent in volume growth and 17.7 percent in dollar growth for the 52 week period ending November 27th.

When asked about his strategy with respect to craft, Long said he hopes to ‘play really hard in the fastest sector right now, which is craft.’

But what can a large company like MillerCoors have to offer craft brewers? Distribution, among other things, according to Long. He also cited an ‘enormous amount of assets in brewing processes, technology procurement and a back office’ that many craft brewers aren’t fortunate enough to have due to financial limitations.

MillerCoors recently purchased a minority stake (less than 25 percent) in the GA-based craft brewer Terrapin and Long hinted that similar acquisitions could be on the way, telling the WSJ that MillerCoors is ‘in dialogue with lots of companies.’

Long also said he expects to see the overall beer industry down another 1 or 2 percent in 2012."

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Old 12-20-2011, 11:43 PM   #2
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We've seen this before with things like the Michelob specialty brews and the stout that AB brought out a few years ago. Maybe it will be different this time but in the past AB always seems to dumb down the offerings so that maybe some of their regular core customers will buy it and because it has the AB source most drinkers already consuming craft beer don't want anything to do with it. It's no accident that even though Blue Moon is a Coors' product their name never appears on the label or in ads for it. What is more likely to happen rather than making most of the beer is the already continuing process of AB/InBev buying up control or distribution rights to already established craft breweries. IIRC at one time AB distributors were not allowed to carry any other products. Recently the AB distributor in my area set up a new division strictly for craft beer. They carry a lot of the that AB already had their corporate hands in as well as some other regional beers.

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Old 12-20-2011, 11:43 PM   #3
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Old 12-21-2011, 12:15 AM   #4
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A/B actually had a few decent beers out about ten years ago. Not great, but decent... I actually quite enjoyed their Munchener Lager. Miller had a craft segment too for a while, I don't remember any of their other brews, but a (Cream?) Stout they had was pretty good.... well, pretty good for a Porter! I would drink it and be happy.

So, yeah, it's nothing new... they just like us to THINK they are doing something new. It's all the same smoke and mirrors... "Cold Filtered!", "Triple Hopped!", "Beechwood Aged!" yadda yadda...

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Old 12-21-2011, 12:25 AM   #5
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Quote:
Originally Posted by BigEd View Post
We've seen this before with things like the Michelob specialty brews and the stout that AB brought out a few years ago. Maybe it will be different this time but in the past AB always seems to dumb down the offerings so that maybe some of their regular core customers will buy it and because it has the AB source most drinkers already consuming craft beer don't want anything to do with it. It's no accident that even though Blue Moon is a Coors' product their name never appears on the label or in ads for it. What is more likely to happen rather than making most of the beer is the already continuing process of AB/InBev buying up control or distribution rights to already established craft breweries. IIRC at one time AB distributors were not allowed to carry any other products. Recently the AB distributor in my area set up a new division strictly for craft beer. They carry a lot of the that AB already had their corporate hands in as well as some other regional beers.
I agree. I think that in the past BMC were more than anything else amused with what was going on in the craft beer segment. They were still gaining market share and were making a sizeable profit. That is no longer the case. The craft brew market is the only beer market that is currently profitable and it is gaining market share by leaps and bounds (some estimate that craft beer could account for 30% of the market by the end of the next decade up from some 7% or so at present). Buying into or buying out established and respected craft brews such as Goose Island (which had a tie with AB/InBev prior to the acquisition) will become the new norm. I personally think that this strategy will not succeed in the long term - I think that the overall trend will be more and more small, local, neighborhood microbreweries, brerwpubs, and gastropubs (depending on your state laws). This is already happening quite a bit out West and is in keeping with the "keep it local" movement that is prevalent.
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Old 12-21-2011, 12:27 AM   #6
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MillerCoors recently purchased a minority stake (less than 25 percent) in the GA-based craft brewer Terrapin and Long hinted that similar acquisitions could be on the way, telling the WSJ that MillerCoors is ‘in dialogue with lots of companies.’"
I tasted a couple of Terrapin brews at a Taco Mac in the Atlanta area last month. There were not worthy of my $5 for a pint IMHO, so I moved on to something better like Bell's Two Hearted Ale and Sweetwater IPA.

Good for Miller. They can have their crappy beer to go along with the rest of their line.
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Old 12-21-2011, 12:48 AM   #7
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Quote:
Originally Posted by Montanaandy View Post
From The Wall Street Journal:

"The craft beer industry continues to enjoy considerable growth and U.S. mega-brewers are devoting more attention to a segment that still only owns just 7 percent of the entire beer market.

In an interview with the Wall Street Journal, MillerCoors President Tom Long said his company is a ‘big player in craft,’ citing the Blue Moon and Leinenkugel’s brands as examples.
Long said he plans to grow the company’s craft portfolio 60 percent over the next three years through its craft beer division in Tenth and Blake.

According to Long, craft is an area MillerCoors is most interested – and for good reason. Recent SIG data puts the craft segment up 13.8 percent in volume growth and 17.7 percent in dollar growth for the 52 week period ending November 27th.

When asked about his strategy with respect to craft, Long said he hopes to ‘play really hard in the fastest sector right now, which is craft.’

But what can a large company like MillerCoors have to offer craft brewers? Distribution, among other things, according to Long. He also cited an ‘enormous amount of assets in brewing processes, technology procurement and a back office’ that many craft brewers aren’t fortunate enough to have due to financial limitations.

MillerCoors recently purchased a minority stake (less than 25 percent) in the GA-based craft brewer Terrapin and Long hinted that similar acquisitions could be on the way, telling the WSJ that MillerCoors is ‘in dialogue with lots of companies.’

Long also said he expects to see the overall beer industry down another 1 or 2 percent in 2012."
Blue Moon and Leinenkugels is craft beer? Why am I wasting my money on Three Floyds and Upland?

I don't think the real craft brewers have any thing to worry about from BMC is if more Blue Moon and Leininkugels is all they can come up with.

Is Shocktop craft also?
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Old 12-21-2011, 12:52 AM   #8
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Craft beer has no legal definition to my knowledge. All beer could be considered craft...

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Old 12-21-2011, 12:55 AM   #9
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93% of the market and BMC can't stand that other small companies are making a living. All of the money in this country apparently is supposed to be in the hands of a dozen or so people...This is why I don't support their evil empires.

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Old 12-21-2011, 12:55 AM   #10
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Quote:
Originally Posted by Montanaandy View Post
From The Wall Street Journal:

"The craft beer industry continues to enjoy considerable growth and U.S. mega-brewers are devoting more attention to a segment that still only owns just 7 percent of the entire beer market.

In an interview with the Wall Street Journal, MillerCoors President Tom Long said his company is a ‘big player in craft,’ citing the Blue Moon and Leinenkugel’s brands as examples.

Long said he plans to grow the company’s craft portfolio 60 percent over the next three years through its craft beer division in Tenth and Blake.

According to Long, craft is an area MillerCoors is most interested – and for good reason. Recent SIG data puts the craft segment up 13.8 percent in volume growth and 17.7 percent in dollar growth for the 52 week period ending November 27th.

When asked about his strategy with respect to craft, Long said he hopes to ‘play really hard in the fastest sector right now, which is craft.’

But what can a large company like MillerCoors have to offer craft brewers? Distribution, among other things, according to Long. He also cited an ‘enormous amount of assets in brewing processes, technology procurement and a back office’ that many craft brewers aren’t fortunate enough to have due to financial limitations.

MillerCoors recently purchased a minority stake (less than 25 percent) in the GA-based craft brewer Terrapin and Long hinted that similar acquisitions could be on the way, telling the WSJ that MillerCoors is ‘in dialogue with lots of companies.’

Long also said he expects to see the overall beer industry down another 1 or 2 percent in 2012."
The distribution piece is the annoying piece for those small craft breweries trying to get their beer on the shelf. While craft beers are on tap in more and more places, I also see plenty of places with 10 taps, and 8 of them are BMC, with 2 for Sam Adams and Sam Seasonal (in Boston). Blue Moon, Shock Top, Bud, BL, ML, Coors, etc etc etc.

Getting shelf/tap space, to get craft beer to the consumer, will be tough. Thankfully there are also stores opening and being more dedicated to real craft brew.
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