AB InBev Sells Northern Brewer

[TKWoody]

Interesting news

https://www.marketwatch.com/press-r...thern-brewer-llc-2019-07-11?mod=mw_quote_news

 

[MaxStout]

Just heard that last night from a friend who attended a little shindig at Midwest.

The VC (Blackstreet) that acquired NB has an interesting mission: "seeks investments in the debt and equity of lower middle market businesses, corporate orphans in out-of-favor industries, and businesses undergoing some form of transition."

 

[homebrewfinds]

Great news

 

[kh54s10]

Will have to watch and see what happens. I started with Northern Brewer, but they haven't been on my list for quite a while. I can find most items less expensive elsewhere. Even before InBev...

 

[brownni5]

I'll get excited when their prices drop by 50%. In the meantime, I'll continue breathing.

 

[OnePlate]

I live literally down the street from their Minneapolis store, so I hope their business doesn't get messed with and results in their closure (probably would never happen, but still). Awesome store, great grain selection/prices/crush when I need it. Midwest is also really awesome, although I only pop in there when going on a Costco run and I really need something.

 

[SteveH aka shetc]

https://www.thecrimson.com/article/1992/4/14/mba-student-allegedly-rigs-b-school-club/

 

[brewbama]

https://www.thecrimson.com/article/1992/4/14/mba-student-allegedly-rigs-b-school-club/

Class act. [emoji849]

 

[dlettow]

Sweet! They are the best LHBS I know of in the Milwaukee area. There is another I know of, but it is so far off the beaten path I felt I might get mugged going into the store, so I stick with NB for immediate needs. Most purchases are from Ritebrew though, with is only a short distance away so shipping is often less than $3. Far less than the 60 miles worth of gas, much less time, would cost me.

 

[day_trippr]

That was a pretty short love affair, left wondering whether AB Inbev saw writing on the wall that told them to cut their losses...

Cheers!

 

[RPh_Guy]

Does this include Midwest?

 

[singybrue]

Does this include Midwest?

Yes, Midwest is part of NB

 

[Northern_Brewer]

That was a pretty short love affair, left wondering whether AB Inbev saw writing on the wall that told them to cut their losses...

Cheers!

I suspect it's more a question of changing priorities within ABI - there's been some comment recently about changes at their pseudo-private-equity-arm (which owned NB) which means more focus on the quarterly P&L and less emphasis on long-term strategic investing. They could bring some cute synergies, like selling NB stuff through their newly-acquired UK online beer retailer, but it always felt like at best they were just trying to get a bit of an insight into the market through what homebrew geeks were into rather than any great love of homebrew.

[usual disclaimer - I'm nothing to do with US homebrewing companies!!!!]

 

[SteveH aka shetc]

I never understood why they bought NB. I just attended Homebrew Con. Assuming the conference attendees were a reasonable representation of the home brewing population then we are still a low key bunch of nerds. I don't even think NB had a booth there.

 

[blubrewbbq]

I hope they keep the free shipping on 50# bags of grain

 

[VirginiaHops1]

My biggest issue with them was how expensive they were, not so much InBev although I do shy away from supporting Bud. Practically everything I need is cheaper at morebeer.com and I can easily hit their higher free shipping threshold even though it's higher than NB/Midwest. I do love free shipping

 

[mashpaddled]

Homebrewing has declined from the mid-2010s peak when ABI acquired NB. They probably saw the writing on the P&L statement and decided to cut it loose. Likely nothing more to the story.

Acquisition by venture capital with a mission to buy undervalued assets usually means they plan on cutting the business down and then reselling at profit. Probably not great for the business or its employees.

 

[BrewnWKopperKat]

web search current news: ab inbev debt ipo

 

[grampamark]

web search current news: ab inbev debt ipo

I’m guessing that the sale of NB amounts to a rounding error in the amount of debt that AB InBev is carrying (more than $100 billion). Buying out your biggest competitor with borrowed money might make you feel like a winner-until it’s time to pay the mortgage.

 

[Northern_Brewer]

As I said above, it's mainly about changing priorities at their venture capital arm - which is ultimately driven by the debt, but it's not a question directly of selling it to pay off debt.

 

[mongoose33]

Homebrewing has declined from the mid-2010s peak when ABI acquired NB.

I thought they did that only a couple years ago.

 

[kh54s10]

I thought they did that only a couple years ago.

It was in 2016.

The sale of Nothern Brewer and Midwest is chump change in InBev's financials.....

 

[grampamark]

As I said above, it's mainly about changing priorities at their venture capital arm - which is ultimately driven by the debt, but it's not a question directly of selling it to pay off debt.

It’s about reducing debt. The American bond rating companies have downgraded ABI’s bonds and one, Moody’s, has stated that if the company doesn’t get it’s debt below 4x earnings by the end of next year it will rate the bonds as junk.

Just a few days ago, ABI sold it’s Austrailian operations to Asahi Group for $11 billion USD.
https://markets.businessinsider.com...usiness-sale-to-asahi-group-2019-7-1028367944

 

[NeoBrew]

Was away for the weekend. I came back to some emails that Brew & Grow in Minneapolis/St. Paul was closing it's doors. It was the only alternative to NB/Midwest in the Minneapolis/St. Paul area, we have a population of 3.2 million. I hope that whatever happens to them they stay a viable homebrew store. I have boycotted them since the buyout, but I will now have no choice but to shop there again.

 

[MaxStout]

Was away for the weekend. I came back to some emails that Brew & Grow in Minneapolis/St. Paul was closing it's doors. It was the only alternative to NB/Midwest in the Minneapolis/St. Paul area, we have a population of 3.2 million. I hope that whatever happens to them they stay a viable homebrew store. I have boycotted them since the buyout, but I will now have no choice but to shop there again.

I'm just 4 miles from Brew & Grow, so its closing will create a big void for me. The owner is a great guy, and I get it that he wants to wrap up the business and enjoy life. But I got spoiled being able to jump in the car and make a half hour round trip run for supplies. And I could ask the owner for a fresh pack of Wyeast or WL, he'd add one to his weekly order and call me when it came in.

It's a 50 mile round trip to Midwest or Northern. I'll probably shift to more online purchases from Morebeer, William's, etc., and only run to MW/NB for liquid yeast.

 

[Noob_Brewer]

Wow thats a shame with no other local places in Minneapolis. Always thought it was odd from a purely sentimental/beer enthusiast point of view that a Belgium company (InBEv) from a country known for bitchin beers would have even bought Budweidser in the first place. Also odd that a japanese company now owns Fosters Lager. lol. Its just proof that this is a business, plain and simple. Its kind of like when sports fans get angry when their favorite team trades a famous player OR that famous player ditches the team in free agency - theres no loyalty because it is a business first and foremost.

 

[SteveH aka shetc]

a Belgium company (InBEv) from a country known for bitchin beers would have even bought Budweidser in the first place.

Look closer, InBev is run mostly by Brazilians, in particular, Carlos Brito. A real piece of work.

 

[bracconiere]

I have boycotted them since the buyout, but I will now have no choice but to shop there again.

i started malting my own when they bought miller too......managed to survive the maltacalypse....

more time, but i saved a few bucks too!

 

[shoengine]

Wow thats a shame with no other local places in Minneapolis. Always thought it was odd from a purely sentimental/beer enthusiast point of view that a Belgium company (InBEv) from a country known for bitchin beers would have even bought Budweidser in the first place. Also odd that a japanese company now owns Fosters Lager. lol. Its just proof that this is a business, plain and simple. Its kind of like when sports fans get angry when their favorite team trades a famous player OR that famous player ditches the team in free agency - theres no loyalty because it is a business first and foremost.

For what it's worth, pretty much every (ie: both) Japanese beers I've had taste like Bud. Haven't had a Fosters, but would'nt surprise me if it is in that same vein.

 

[Northern_Brewer]

Wow thats a shame with no other local places in Minneapolis. Always thought it was odd from a purely sentimental/beer enthusiast point of view that a Belgium company (InBEv) from a country known for bitchin beers would have even bought Budweidser in the first place.

Beware the distortions of distance - the number one Belgian beer by a mile is a very ordinary Eurolager, Jupiler with around 40% of the market. Even Stella only has 6-7% of the market. On average, Belgian beer is Eurolager, same as everywhere else.

And as has been mentioned, although ABI is notionally headquartered in Leuven and run from New York, it's very much the Brazilians of AmBev in charge. Frankly what happens in Belgium, Europe and the US is almost a distraction, they've created a company to dominate the sale of Eurolager to developing countries in Asia and Africa.