Anheuser-Busch InBev Acquires Northern Brewer & Midwest Supplies

The rumors started days ago have ended in the last 48 hours with confirmation direct from Northern Brewer and Midwest Supplies today that indeed, they were acquired by Anheuser-Busch InBev, the multi-national super conglomerate that owns Budweiser and Miller. More precise the deal was announced as being completed by 'ZX Ventures', the disruptive growth unit of AB InBev. Anheuser-Busch InBev now has market share of 70% of beer sales in the United States after getting Justice Department approval of a merger.

​

Northern Brewer opted for Chris Farley, the listed 'Founder' and not the Northern Brewer President to confirm the announcement today.
Many of you have seen the news that we’ve closed a deal to be acquired by ZX Ventures, the global Disruptive Growth Unit of Anheuser-Busch InBev.

Why would AB InBev Bother with a Homebrew Supply Shop Like Northern Brewer?

Northern Brewer & Midwest Supplies were likely a sought after purchase due to a reported annual revenue of at least $50,000,000. Some worry this acquisition along with their deep capital could allow them to pivot into the wholesale market in an attempt to gain massive control of the homebrew industry in a vertical growth move.
Many on Homebrew Talk and reddit have speculated on exactly what disruptive growth means to the small and tight-knit homebrew community. Only time will tell what impact they will have on the hobby and smaller retailers that help grow and teach the industry.

​

 

[j-d]

I agree, rkadish, twice a year Midwest & n.b. have excellent buy 3 for the price of? and usually I get a heckava deal! No one has these specials! I hope they dnt vanish!

 

[Scott May]

Seconded that motion (or, thirded...)

 

[seefish]

No, I don't think that it is. They had a massive barrel expansion, props to them for not pasteurizing.

 

[seefish]

Don't know what the big deal is...NB got sold to big money a couple years ago. People just starting to notice now because it is the big bad wolf AB-Inbev. NB lost their soul to me when Chip, Keeler, and Dawson got pushed out with the last buyout.

 

[psymonkey]

This is so disturbing. I will certainly never purchase another product from Midwest or NB. The thing that gets me is that AB had a MASSIVE role in how terrible beer got in this country, and has tried really hard to keep it that way. They've been selling and marketing a **** product for decades, so for NB to sell to them of all people removes all respect I had for the company instantly. They have been the enemy of good beer for my entire life, literally. I've always shopped primarily at my LHBS, but hit NB up for good sales on hardware and other odds and ends from time to time.

 

[psymonkey]

I didn't know that..

 

[jensek]

Wouldn't everyone just buy from someone priced lower?

 

[jensek]

No. NB's products are sold for US dollars. So those dollars will be spent in the US eventually.

 

[jensek]

that explains why there are more breweries than ever in the United States.

 

[Kris]

You forgot a step...
You'd need to chill it first

 

[ethan]

These posts evidence a lot of emotion and less common business sense. First, growth in the homebrew market (i.e., selling of equipment and supplies to homebrewers) has more or less leveled out. Consolidation is occurring not only among equipment and supply distributors, but also among ingredient makers. You'd be surprised to find out how much of your grains, hops and various adjuncts are really made and then distributed at the wholesale level by so few players, many corporate owned. How many of your sacred low-cost kettles are really made in one, maybe two Chinese factories, with different labels slapped on. Second, most of the innovation in "toys" has pretty much leveled off. You can achieve a boil, transfer your liquids, saturate wort with hops, etc. only in so many different ways. And you can only buy so many of these toys before you realize you need to brew beer. It's called market saturation. Think of it as we've reached the end of the 60 minute hop boil, and the market is ready to cool down for yeast addition. (Don't forget the American-made wort chiller).
So what's an owner to do when growth isn't there and someone comes along with deep pockets and [Marlo Brando speech] makes you an offer you can't refuse? It's the time-honored conservative American tradition: sell and move into your gated Florida community. In truth, the industry changes with time, as do consumer needs and market demands. (Don't forget other factors such as interest rates, capital expenditures, health costs, etc.). InBev and the other beer-making behemoths are not stupid, and they may be making the rational medium-range decision in trying to figure out small to medium size market changes and how to make money out of it. It's what their investors and shareholders demand of their company in order to stay relevant.
The good news is that there is still a lot of competition and alternative vendors to choose from (e.g., Adventures in Homebrewing, More Beer, etc.), but there's change in the industry. Owners get old, have kids to put through school, and wish to retire. Perhaps LD Carlson, which is a large wholesale distributor, will begin to move into the retail or direct sales market. So, after you all have cooled down, had a beer, you'll realize you'll still be able to buy your made-in-china toys and your grain and hops from the usual sources. Just be ready to change your browser's bookmarks.
Cheers!

 

[steinsandvines]

well sed sir

 

[rmarshall100]

Busch Gardens was not sold for revenue reasons. Busch Gardens, SeaWorld, etc. were pet projects of the Busch family. When InBev took over they chose to get rid of businesses outside of their core business area, BEER! At the time, and currently, SeaWorld entertainment is quite profitable.

 

[Tcombob]

Just told NB to close my account, as if anyone actually does that any more. Can't stomach the InBev AKA Bland Bev merger, like so much these days anything can be bought with money. LHB or a smaller on-line store will get my future business. So long NB.

 

[brewcat]

Every time you have by-passed your Local Homebrew Supply Store, to shop elsewhere they have suffered. Northern Brewer's prices are actually more expensive than some or most of your local suppliers have been. I say have been because while you were shopping, many of your local homebrew supply stores have gone out of business. If you want to keep your local homebrew supply store alive and in the neighborhood, go by today and shop with them and most likely they will tell you how much they appreciate your business.

 

[Kathryn Vallish]

Support your Local Homebrew Supply Store!
Each and every local homebrew supply store in this country depends on you in order to just stay in business. Please consider this a wake up call to go see our local supplier today. One way for your local shops to be able to be able to lower their prices is if they have enough business to buy grains and hops in bulk. That takes having a greater quantity of brewers frequenting their stores.
I owned The Brewing Station in West Virginia in the 90's and opened Barley & Vine in Stockbridge, GA in 2009. Operating a Local Homebrew Supply store has always been a labor of love. Most of these storeowners are not even looking to make a profit, they just want to break even.
I know some of you don't have a store in your town. Please find the closest store that you can get supplies from. Most can and will ship.
Support your local Homebrew Supply Store!

 

[poorboy5]

I'm taking a wait and see approach to the NB/MW acquisition. I never bought anything from them anyway, so it wouldn't be a big loss to them if I didn't shop there. I do, however, have a problem with a company running a commercial that ridicules fans of craft beer (and I think most if not all homebrewers fall into that category) while at the same time buying craft breweries that sell (or sold?) to this same crowd. To me, this looked like a reactive move by a large company that saw craft beer taking a chunk of it's profits, then tried to stem the bleeding and protect their market share. The NB/MW acquisition seems to have the same logic behind it. They figure that most homebrewers, being fans of craft beer, probably aren't going to spend much if at all on macro beer, so they'll try and recover some of that loss by having a fairly large presence in the homebrew supply market. Stem the bleeding, protect your market share. Maintain shareholder value, if not increase it. Work towards having a controlling share in homebrewing supplies. As far as any changes to NB/MW, good or bad, due to the acquisition, time will tell and the devil is always in the details.
Just my thoughts, however crazy they may be.
I'm fortunate enough to have a LHBS, so if I have to vote with my wallet, I'll continue to keep it local and support the guys and gals at my LHBS. That way, the next time I bump into them at the grocery store, pub, etc., I can go in the knowledge that my business and that of others helped make that trip possible. I've owned a small business before, so I know firsthand that small business owners really appreciate each and every customer and sale they get, and they don't take it for granted.
Failing all this, I know that homebrewers, being a crafty and resourceful bunch, will find a way to work around any difficulties imposed by this acquisition. As a hobby & craft, it's grown from essentially nothing to where it is now, and I'm sure it would again if need arose. I hope & pray it doesn't come to that.

 

[MatthewDLW]

Well I shopped for years and spent thousands of dollars ordering from Northern Brewer/Midwest Supplies and recommending them to countless people. It's sad that I can no longer recommend them and will no longer purchase anything associated with them. Anheiser Busch is a corrupt, unethical, and disgusting company and it's a sad day that another craft/independent/and self sufficiency company has fallen victim to large corporate monopolization of another industry! Anyone who enjoys craft beer or is a home brewer should stop ordering from these companies immediately! If you purchase any products from Anheiser Busch you are digging the grave for an independent and a great craft industry!

 

[limulus]

This whole thing is a result of the deal that ABI had to make with the Feds to acquire Miller. They had to agree to stop trying to snuff out craft beer. This is a way around that. I saw a post where someone used the term grass roots and this could be their way of cutting the legs out from under the entire movement. It could also be a power move for them to control it. One thing is for sure, ABI has purchasing power. If that transfers to NB/NW, then some things could become a lot less expensive. If you need bottles, ABI definitely have buying power there. I suppose you may also start seeing sankey kegs for sale at a decent price both new and used. It could also be a very underhanded way for ABI to get a greater share of the hops market under their control and we know that has been a struggle recently in the craft beer world.

 

[Skydog60]

Boycott NB

 

[psymonkey]

Even if the have the buying power to purchase things cheaper, that savings will be passed on to their shareholders in the form of a higher margin. I don't see them dropping prices for homebrewers.

 

[clint w]

Screw inbev. Screw Monsanto too.

 

[kkramer56]

Me too!

 

[Ricka182]

Well, just another reason to keep buying local only. I would grow my own everything before I buy anything from either of those places again.

 

[mdransfi]

I sent a comment to NB via their website's comment page saying, "You've been acquired by a company that mocks craft brewing. What's up with that?" and got a canned reply from a Craig B:
"Our partnership with ZX Ventures is about growing Northern Brewer and providing brewers with unparalleled opportunities. This deal will make us stronger and able to pursue our passion with even greater focus, better tools, and ingredients.
Any changes you notice will be in place to deliver a better beer experience
We will continue to support you and your fermentations, and help our industry innovate.
Our culture will remain as it is today: we are dedicated to our mission and to our customers as we always have been.
We know that not everyone will be happy with this deal, but it is great for our business and the growth of homebrewing!
Please let me know if you have any other questions.
Cheers!
Craig B"
As much as I want to be righteously indignant, my lhbs (20 minute drive) is owned and staffed by folks who seem either condescending or couldn't care less about discussing homebrewing. Their main business is "brew on premises" and the supply side is treated like an afterthought. The next-nearest place is 45 minutes away, and although supplies are their main business, they're not very knowledgeable, yet are condescending. Before I took a year off of brewing, the NB folks would answer questions and if I came back with "yeah, but what about x?", they'd consider it and explain further without being ******-y about it. I don't think that will change, at least in the short-term. The longer view might be less positive.
I'll likely go back to lhbs but will ask my questions to forums like this or the reddit homebrew sub.

 

[Yeastieboy]

Wouldn't that be crazy if they acquired HBT? I bet this entire forum would go 100% silent overnight. That would be awesome... for like a day, until I immediately started missing it!

 

[gusmaojoao]

they are flooding brazils market with goose island ipa and hoonkers, setting the price really low even for local brewerys

 

[Puddlethumper]

Yes. Couldn't have said it better.

 

[redwolf5514]

Bourbon county massive recalls, the beer in large isn't made in Chicago anymore (and quite frankly doesn't taste the same)

 

[Schlenkerla]

All the more reason to support the little guy, buy local, buy grain, and grow your own hops. F'em. I won't be worried until they try create a monopoly on water.

 

[David schaal]

All you guys say that the solution is to buy from your local Homebrew store.
Great! I live in Minneapolis, Northern Brewer IS my local store.

 

[DCM5150]

"Some worry this acquisition along with their deep capital could allow them to pivot into the wholesale market in an attempt to gain massive control of the homebrew industry in a vertical growth move."
I think I got Buzzword Bingo in one sentence

 

[rinedesign]

I second that. Goose Island isn't the same beer any more. I call BS on this comment, too!

 

[brett]

Word.

 

[TulsaTax]

Ethan, a clinical analysis. Perhaps In Bev is merely conceding the hobby production is here to stay. Perhaps the negative emotion is the realization that the 30 year home brewing movement is no longer hipster, but main stream. Had my first home brew 30 years ago and it was terrible. Ten years latter had my second home brew and knew right then and there change is coming....the swill will no longer be. Did extract for 10 years because I could not stomach all that work, DIY stuff, and equipment for all grain. Building a 100 square foot brewery in my basement based on the Braumeister because now all grain is easy because it is now mainstream.

 

[sanguine]

Any brand that InBEV acquires they ruin. They change the hops, the barley, and every other ingredient and destroy the quality. They even destroyed the quality of Budweiser (hard to do) when they purchased them..

 

[matthew prestine]

Never bought anything from NB. I get all my stuff from ritebrew.com which is local to me, best guy and prices ever.

 

[Brandon]

That explains why Goose Island is suddenly available as a kit on NB.

 

[flyingweasel]

This is crazy! What's a world without high gravity craft beer? This is what's happening, us home brewers won't be outdone by the big guys!

 

[kencarman]

I think your assessment that they have no reason to mess with a good thing may be temporarily right, but in long term wrong. The object, I believe, to to have as much control over all things beer so, when dire situations like a depression, or just shifts in the industry, will give them the ability to throttle the industry down to the tight control they once had: even over what we can buy, style-wise.