AB acquires Four Peaks, looks to New Belgium next

I heard the same thing in the 90's.

Jim Koch and Boston Brewing were about the only "anti-establishment" brewers who understood distribution. Sierra Nevada were there, too, but way behind.

Thousands of others have failed miserably. Jim Koch/Sam Adams and MillerCoors Blue Moon have done more to advance Craft Beer and convert new beer drinkers than all the "craft breweries" you're saluting combined.

I'm not knocking craft brewers - exactly the opposite - I love craft beers.

I'm sipping a Green Flash as I type this, ruminating on what it will be like when craft beer turns AB's mono-culture brewing on it's head from the inside.

And I like Budweiser (on draft). It's a good American Lager. And well known.

How great will it be when normal non-beer-educated people understand that's just ONE kind of beer... and that there are dozens, even hundreds of others?

If one AB customer in ten switches to craft offerings from their favorite company, craft brew will more than double.

Best news the Beer Industry has heard in years.

 

^That^ (two back) has been lurking in the back of my brain pan when AB started this buy-out strategy. It's definitely not benign activity, and the fact that the bigs can control distributors seems to have made hash out of the whole three-tier paradigm.

Taken to the extreme, the result could be a plethora of very small brew pub style outlets - ie: micros - hunkered down in their limited markets while the behemoths roll over the larger independents. Home brewers will always fend for themselves, and those fortunate to have micros in the vicinity would have options, otherwise there'll be a hella lot of rendering unto Caesar going on...

Cheers?

 

I agree with this, but you haven't taken it to it's end - which is the repeal of the ridiculous Medieval Guild-based three tier system.

Once all Brewers can sell their beer to the public, we'll see the true spectrum of beers represented.

 

This is just my opinion, but all these buyouts are really really about dominating shelf space and tap handles. (What others sum up as distribution). When ONE giant conglomerate can influence (and control) shelf space in a huge majority of liquor stores, their competition loses. Thus, you'll see more and more, and then mostly, ABInbev products at your local store. Less and less Sam Adams or Sierra Nevada, Bells, etc. And when SN and other big boys are on the ropes, THAT is not good for craft brewing.

Same thing will happen at your local tap room. There will only be a couple choices for "craft" beers when you go out to drink.

On top of that think of how one conglomerate can better control access to hop crops and get better contracts for the best hops, etc.

Good for craft beer in the short term? Maybe. Good for craft beer in the long run? No way. Their end goal is simply dominating and controlling the market. Their end goal is NOT making the best beer. So let's be clear: any of these breweries who have sold out, you can say all you want "good for them", but who they are at their core has changed.

 

IF my local tap house put an In-bev product on tap they would be publicly shamed on Facebook, Instagram and Twitter by the bearded hipsters (God love em') who are pouring money into that place.

For every mediocre brand that In-bev pulls into their portfolio we will have 5-10 new breweries doing innovative things and being supported by our local bottle shops, bars and liquor stores.

In-bev wants get more shelf space at the local mega-mart or another tap handle at CrappleBee's? All the more power to them. That's not where I spend my beer money.

 

I agree, but I think the issue is that we are in a minority. When the majority spend their money at these other places that are dominated by conglomerates, then the small guys lose in the end. MANY bottle shops and bars that support craft breweries depend heavily on income from people that spend money on BMC. And when that business goes elsewhere then those shops close down.

 

Maybe we are talking about different things. What I consider a good bottle shop or bar isn't serving BMC, nor any brand that would likely be considered an acquisition target for In-Bev. Around here, you buy your BMC at the grocery store not at a store/bar that support craft beer.

 

True, but the median and above have the most votes and get to make the decision.

 

That's pretty much the way it was when the whole craft beer movement got started. It made travel more interesting, looking for great beers you couldn't get at home.

 

AB bought Blue Point Brewing 10 minutes from my house for an estimated $24 million. Two local guys doin what they love and cashin in...God bless em'. Its every entrepreneurs dream to start a company and get bought out for miilions..So good for them.Breckenridge is laughing all the way to the bank.

 

Funny you should mention Blue Point. They were having some management issues so AB sent one of it's assistant brew master's there to help organize things. The guy they sent is my arch nemesis in the AB Home Brew Group's annual brewing competition. He's one heluva home brewer and uprooted his family to move to Long Island for this job. He told me it was his dream job. I'm sure the quality from that brewery will not be lacking!

Many of you are fans of Goose Island, most notably their Bourbon County Stouts! I've talked to the brew master there and he has told me that AB pretty much leaves them alone to do their thing. AB does produce the big sellers like Honkers Ale and GI IPA so that the smaller brewery can concentrate on new product and more exotic brews that take more care and time to make.

My point is that even though AB is buying these breweries, they are not going in and changing everything, like the recipes etc. They recognize that the only market that's growing is the craft beer market and it makes sense to buy up good craft breweries that already have a following than to produce these types of beers and start from scratch with no following at all.

So is AB Inbev a giant monster trying to take over the brewing world? Well, yes they are! It's just good business, you can't blame a company for wanting to grow! We have anti trust laws in this country to keep out monopolies, so I'm sure at some point they will have to slow down but until then they will continue to grow.

 

I think people are disappointed because this was "our" thing and big business is kind of taking that feeling away.

It just doesn't feel like a club anymore and is now stocks, profits, and market share, etc.

No doubt Goose Island puts out solid stuff (Boulevard is in the same boat), but it's like when your favorite band sells out.

 

That might not be where you spend your money but that is where most beer drinkers spend their money. Thus that is where the real money is being made. Now I love the romanticism of small breweries brewing innovative beers. But what happens when they cannot sell enough of their beer via distribution to turn a decent profit? You can not run a business based on having a few tap handles and a few places carrying your bombers. Tap rooms are great but how much beer can they get to flow through their own taps? A brewery can't grow without that distribution.

 

Another point: so many brew masters got into this business because they like the idea of craft brewing and small batches, Etc. These are people that more than likely just won't thrive in a corporate environment. So say what you want about the big boys not touching the recipes and such, but when the Brewers and assistant Brewers leave because they aren't comfortable being paid by a conglomerate, or they disagree when 3 years from now that the conglomerate forces them to add 10% corn to the grist and THEN they walk away, that's when the beer and brewery change. GI IPA brewed by ABInbev will at some point (maybe already) not be the same beer as it once was. Same can be said for BCBS, it already is a different beer due to the packaging. Not long before the beer inside the new large bottles also changes.

 

Of course the recipes change. They HAVE to change.

Look, a big brewer like AB-Inbev buys a small craft brewer with the intention of ramping up production so they can maximize their distribution network, benefit from economies of scale, and increase profit. That means ultimately, they need that craft brewer to start producing A LOT more beer. They can't do that on the craft brewer's equipment, because they're very likely already operating at almost full capacity. So they need bigger equipment, or to brew it at AB-InBev's facilities.

If I take one of my house beer recipes over to your setup and we brew it on your equipment, using your process, it's not going to be anywhere near the same beer. Maybe I batch sparge, but you fly sparge. Maybe I just vorlauf a couple gallons with a pitcher, but you have a HERMs setup. You have higher efficiency than me. You brew electric, I brew gas. You're on city water, I'm on well water.

Now add in scaling issues (I brew 5 gallon batches, but you've got a 35 gallon setup), and variation in ingredients (I brew mine with a stash of 2012 Simcoe hops, but you've got the 2014 crop with lower AA%), and it's not going to be the same beer. AT ALL. Same recipe, vastly different beer.

So what do we do? What's more important? Staying faithful to the recipe and producing a wildly different beer? Or altering the recipe to take all those factors into account in an attempt to reproduce the character of the beer as closely as possible?

So we adjust the recipe. We tweak it to take all those things into account, and voila! We've got a beer that's pretty damn close to the one I was brewing on my smaller system.

But, purists scream, "They changed the recipe!"

Yep. So what? Do you like the beer or not?

 

It's not AB-InBev - it's the ridiculous, anachronistic 3-tier system you have with that absurd "Distribution" layer. As long as it exists, this problem is going to exist. AB-InBev is simply acting rationally within the framework of the system in which it exists. OF COURSE it's going to try and control/manipulate that middle layer. Why shouldn't they? That layer shouldn't exist at all.

Eliminate that silly "Distributor" layer, and put everyone on an equal playing field. Don't blame MegaCorp for taking an advantage that is handed to it on a silver platter.

 

You might want to print the list out and keep it in your wallet. It's a little long to memorize.

 

I guess we should have a similar list for SABMiller too as they look as though they will soon be the same company

 

I go to a pub see what they have on tap, then pick something I've already had or what seems the most interesting. I'm paying $5-8, it better be a good pint. Don't give a rat's a*s who brewed it or if some big corporation is in control. If the beer sucks, I usually remember and don't buy it again. BudInBev knows their share of taps are decreasing in certain areas. Old drinkers die off, new drinkers have different tastes. I'm kind of surprised we haven't seen a Budweiser IPA, Stout or Pale Ale yet. InBev doesn't want to lower prices, although the scale that they produce beer would enable them to do so. So they are going to maintain the current prices and diversify their offerings for now. If Bud made an IPA and sold it for 30% less a six pack (and it was good) they could send the craft beer market into the toilet. For now, I don't see that happening.

 

Norff London is a target too:

http://www.theguardian.com/lifeandstyle/2015/dec/23/why-camden-town-brewery-sale-craft-beer

 

I'm not going to stop drinking those beers.

 

I am. It might hurt a little, but I am.

 

You know, I'm not against Big Beer per se, even if I don't care for some of their products What I'm against, is bullying tactics, such as buying out distributors, paying bonuses to distributors to only push their products etc. I also don't like that AB-Inbev bad mouths or belittles craft brewers, while buying up craft breweries left and right. IMHO, they use their size and money to create an unfair marketplace. Sounds to me like monopolistic practices.

 

AB-Inbev also just bought Breckenridge Brewery.
http://www.craftbrewingbusiness.com/business-marketing/anheuser-busch-buys-breckenridge-brewery-reports-indicate-they-may-just-buy-everything/?utm_source=Craft+Brewing+Business+Newsletter&utm_campaign=3b541bc3e8-CBBNews_20151223&utm_medium=email&utm_term=0_1e143189ee-3b541bc3e8-79389033

 

You don't remember this?

 

I heard on one of Jamil's podcasts a while back about an AB InBev or SAB representative telling students in the brew program at UC Davis that they shouldn't kid themselves. Budweiser could make an IPA just as good as anyone else, they just don't know how to market it.

 

I do. It actually wasn't terrible. Though there were/are so many better options out there I don't think I ever bought more than a sixer or two of it.

 

Nope, never saw it. Maybe they didn't market it around here. But I still think ABInBev could make a decent IPA if they wanted to and if they priced it aggressively people would try it and they could win back some of their market share. Pricing usually comes into play in a competitive marketplace, but with craft beer, it just hasn't happened yet. Its more likely the Goose Island IPA will be their
"flagship" craft beer offering and they won't cut prices. I do look for a price war to happen eventually, as production meets or exceeds demand and breweries have massive debt to pay off.

 

Michelob made a Pale Ale awhile ago....

But here's the thing, Budweiser's demographics don't want IPA's, Imperial Stouts, etc....

They've tried that with Bud Ale, Michelob Pale, etc....

They're smart and realized they way to maintain market share and to expand profits really to buy up successful breweries, not to try to internally expand their product line.

Besides why would they, when their line of bud light lime, and various -Rita's still hold (probably) a bigger overall market share than all craft beer combined.

 

I was on one of the taste panels for Budweiser Ale and the first rendition was amazing! The aroma and flavor was better than any hoppy ale I've ever had, and that's quite a few! I told them right then that if they would sell this beer they will out sell all other pale ales on the market, it was that good. Unfortunately, they dumbed it down and I was no longer a fan. It was "ok" but that word they love to use, "drinkability", got in the way once again. Trust me, they can brew anything they want, it's always a fight with marketing.
Back in the 80's they were making Anheuser Marzen and Pilsner. The Pilsner was better than any of the German Pils and all the old Germans that I worked with loved it but when it came time to market one of them they chose the Marzen because of it's trendy name, not because it was a better beer. That was a real shame. The Marzen was good but the Pils was excellent!

 

I believe it. Their head brewers are still brewers, if we can do it so can they. Plus if they can't they have the cash to go out and hire the best brewers to make one. But why bother when they can just buy craft breweries with established fan bases.

 

You mean like this article. http://m.motherjones.com/tom-philpott/2015/12/big-beer-wants-take-away-your-craft-beer

 

The weirdest thing about this thread is the whole, "Those guys are artist/craftsmen who do the best of everything to make beer! Nothing should ever change!"

Those "Artist/Craftsmen" change things every year as Malt, crops, and hops change.

But once those breweries go big, if they change a dang thing, they're a bunch of sell-out jerks.

Reminds me of Metallica, or Sublime, Nirvana, Ozzy, and a million other bands. "They're awesome and independent. They better never change a thing or any lyrics or style or tempo of any song ever, or ever be successful and get popular/major distribution or they suck and are loser sell-outs and I've always hated them!"

 

I think the point is more: what is the motivator of the change? I wouldn't assume that people here are unaware of yearly/seasonal changes that happen to recipes at small breweries. But when the brewer makes a change in a recipe in order to keep the quality the same or better than last year, well that's a much much different thing than a brewer changing a recipe because they are motivated more by profits than the quality of the beer. And in a way that's one of the main differentiators between craft and micro. So it's not really surprising at all to hear people on HBT be critical of it.

 

It's certainly not a surprise, just out of touch.

The difference between craft and micro is how much you sell. If it's too much, more than 15,000 barrels/year IIRC, it's not micro.

If you make the exact same beer, and it's great and everyone loves it and you sell truckloads of it you are suddenly not micro anymore, you can actually make your livings as a brewery full of employees, the hipsters turn on you on the internet, and you're big enough to attract the attention of investors.

Blue Moon is just as "craft" as the 1,000 tiny breweries brewing the same style. And even the beloved Dogfish will sell Malt Liquor in a brown paper bag, and thousands of "micro" "craft" breweries are brewing cream ales and adjunct lagers.

I think AB/Inbev is just now doing what they should have done 40 years ago- getting into the business of converting non-beer drinkers into beer drinkers.

And they're not going to do that with 50-100+ year old brands and products everyone already knows.

 

It's not at all out of touch, but that's just my opinion.

Some people think there's more than just volume to differentiate craft beer from macro. You clearly don't so there's not much more to discuss. But I get it, you dislike hipsters turning on successful breweries when they get to big.

Blue Moon has never been a craft beer btw. One clever guy even sued them for pretending to be. I'm sure he was a hipster though.

 

Yeah they're part of the MillerCoors thing.

He wasn't a hipster, but a douche nonetheless.

 

Sandlot was making award winning Belgian styles, Bitters, Ambers, and a ton of other decidedly non-macro beers 20 years ago, in a 10 barrel brewery in a basement, but they don't count as "craft"?

Must be because they were so successful they actually got well known, and major distribution.

So I guess "craft" = "not very popular"? That's the weird bias of this whole thing.

 

I'm in!!

 

Do you have information about Sandlot starting in a basement? All the information I've seen says that they started at the stadium and were always just an offshoot of Coors. Coors tries to obscure this fact, though, to make Blue Moon seem more like "craft":

http://www.westword.com/restaurants...ut-the-sandlot-brewery-at-coors-field-5733550

http://www.bluemoonbrewingcompany.com/OurStory