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.

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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.

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[joebrandt]

Actually that would probably put the 'little guy" large enough to be on the corporate radar and be bought up as well. A vicious cycle with no way out.

 

[Zane]

Awesome! Now I can finally get some beechwood for my aging!!!

 

[Jeff Olson]

As bad as NB and Midwest are in the shipping department maybe this will be good. But until I see a change I still won't be doing business with them, 10-14 days on an order is too long, And not only that, their UPS rates are through the roof compared to other suppliers that are equally far away that use usps and fed ex that are about 1/2 and the shipping time is 5 days on the long side, usually 1-2 days coming from over 1k miles away to my remote rocky mountain location.

 

[Nosybear]

AB InBev's values and mine do not coincide. I've already requested my name and address be removed from Northern Brewer's mailing list. I was never on Midwest Supply's. Fortunately I have the largest homebrew shop in my state not far from home. All rants aside, the best tactic in this case is simply to not shop either of the two AB InBev "homebrew" shops.

 

[Crucial-BBQ]

I dunno. I have two LHBSs to choose from. Both are a little more expensive, sure, but the fact that I can walk into either one of them, purchase my goods, and be brewing in that same day is worth the few extra dollars and time saved by not waiting for the shipment to arrive.
What I really see as the issue here is this: some, but not all, small breweries (namely nano's, brewpubs, etc.) who do not have a robust distributor, if one at all, gets some, or sometimes all, of their ingredients from an LHBS. What I see potentially happening here is that InBev is looking to control what these nano's have access to, if not outright making it difficult for them to operate.
MWS and NB were purchased by InBev's disruptive growth arm. In any market, for any particular product, there typically exists a high-end (luxury) and a low-end (budget). Disrupters enter into the low-end segment and offer products that are only good enough. After time, once they have a solid foothold, they are then in a position to take market share away from the high-end by improving on their "good-enough" and even by creating their own high-end. Toyota is a good example of this. They entered the U.S. market in the 1960s, established a strong foothold during the 70s, they surpassed the Big 3 when manufacturing was sent to Mexico and Toyota still building in America. Then, they created Lexus to compete with the luxury cars. OnePlus, ZTE, Huawei are other examples. Google Docs vs MS Word, and cell phones vs long-distance calling/Skype vs International calling, are others. And of course, WalMart.
So, in going with that, my guess is that InBev wants to use this as a first step in flooding the market with cheap but decent "craft" beer. They won't have to buy anyone out only to close doors, which was their old strategy. What they will do in the future is flood the market with beer that is passable, yet, $3-4 less a sixpack.
Don't forget that Budweiser changed their flavor to match the changing tastes and diets of Americans, not the other way around. I don't care of InBev, I wish they would go away, but you don't have to look far to see that it is in their best interests (that is, $$$$$) to get their hands into producing "real" instead of simply trying to shut everyone down.
With that, MidWest used to be my LHBS when I was still living in Minneapolis. haven't purchased from them in nearly a decade now, so what is another ten years if ever again at all?

 

[KPatton]

I tend to vote with my wallet. I've spent hundreds through N. Brewer in the past, but will have to forego doing business with them in the future. If you read anything about the strategy espoused by the CEO of ABInbev, you understand that the man wants to control the commercial beer market. If megabeer sales are flat then the only segment left is craft brews. I did the math the other day while having a beer with my wife. Today's craft brews go for $6-7 a pint. I can make 5 gallons of IPA for not much more than the cost of five or six pints, say $35. That 5 gallons is equal to 40 pints, or $260. I am sure that the cost savings is not lost on ABInbev. So it figures that any way they can make money off of the homebrew segment is just more money they have to buy up independent craft breweries. I refuse to aid and abet anything that will destroy what homebrewers have helped build. My money will stay local and in the small HBS shops.

 

[yesman74]

It's really easy to clone it. Just use your tap water and a clean glass.

 

[Coinspinner]

So Scott's Miracle Gro buys GH, Botanicare, and Gavita and AB does this. If you can't beat 'em......supply em!!

 

[HarkinBanks]

Sure the homebrew supply side is a nice pickup for AB/Inbev, but NB supplies A LOT of stuff to the craft industry on the commercial side. Russian River, Stone, big craft breweries, they buy from NB. I think that is a much bigger deal here than the homebrew side.....

 

[MyCarHasAbs]

Been supporting MyLHBS within the last few months over ordering online. It is now quite clear to me I'll be continuing that trend. I will also most absolutely be unsubscribing from their emails and giving a specific reason why.

 

[jerbone]

Wow, even the statement from the founder was exactly the same as every AB brewery that has been bought out.
"We are excited about all the new resources that will help our customers and nothing will ever change....

 

[Jayred]

F those guys anyway. Support your local brew store. I only shop at Brewers Connection and What Ales Yah here in Phoenix, AZ. If you don't have a local brew shop then start one! These local shops around the country have very strong home brew communities and are doing great. Northern brewer kinda went down hill after Chip, Dawson, and those original guys left anyway.

 

[DrCoug]

There is nothing stopping InBev from boosting prices to make products prohibitive to the home brewers who may some day open their own brewery and compete against them!
It is one thing for NB to sell and make a profit, but what they have done on a grand scale is to negatively impact the ones who kept them in business and handed over more power to InBev who doesn't give a damn about craft beer except as a competitor. If you can't beat them, buy them! Which ends up controlling the craft beer industry and thwarts the growth and quality of REAL BEER!

 

[jbenguinn]

Interesting to see nods to "quality" and "Walmart". Seems a little conflicting. Definitely agree about LHBS>suppliers relationships. Those will be saving graces.

 

[Dutchman52]

Bigger is not better, new you have a walmart situation. Get rid of the little guy...... Your local vendor

 

[Yeastieboy]

It's all HomebrewSupply.com and MoreBeer.com for me now. Amen.

 

[goodsuds]

I'm not an AB fanboy, but growing up in STL I saw AB as a local icon and a symbol of prosperity. After seeing them slash their workforce and hearing the horror stories from people who worked their before and after the acquisition, I have no interest in giving them any of my money. I'll be taking my business elsewhere.

 

[JasonEgan]

I like the way you think!! George would deff not like the county he helped start that is now "For big business, by big business, of big business."
Everybody that worked for Bud before they got sold has said that InBev treats everybody like dirt and trash that can be disposed of when they don't need them. Not a good company.
I will not be using NB any more, for sure!

 

[Video360]

With the acquisition of SABMiller in 2015, AB InBev does indeed own both Miller and Coors brands.

 

[Video360]

Nevermind - I take that back. AB InBev sold the SABMiller stake to Molson.

 

[jmm888]

Agree with you Nibbles, It's my LHBS so not sure I'm ready to convert to only internet ordering. They folks at NB are great and I still think they deserve my support.

 

[MisterGreen]

Never again will I buy anything from those companies.

 

[William]

Selling out is the goal of any small business. Either sell it or grow it to be a competitive enterprise. It sucks for us consumers, but if my LHBS decides to sell their business to InBev, I'm happy for them getting the money.

 

[vampdee]

I won't be using either of them anymore after this acquisition. Part of the reason I homebrew is I don't like supporting the huge giants. That said, I have a friend in Grayson, GA that runs a pretty good LHBS... OperationHomebrew. I will be sure to give him all of my business now, where in the past, I would go to NHB or Midwest for equipment (just out of laziness).

 

[raybird]

Why does any corporation buy its rival? Could it have anything to do with suppressing competition?

 

[Arty76]

You really want recipes for the beers they make?

 

[hlmbrwng]

The fact that Anheuser-Busch made a Super Bowl commercial bashing Craft Beer is the main reason this pisses me off. They are not for craft beer, and therefore, they are not for home brewing. What a slap in the face. If they are trying to crush craft beer by spending all of that money on a Super Bowl commercial, just think of what their plans are. To think that they are doing this just to own the company and reap the profits is foolish. They will likely be doing more than that.
https://youtu.be/rF711XAtrVg
Seriously? SERIOUSLY!?!?!? Now you buy the biggest sellers of home brew supplies? That's absurd.
I will be buying as much product as I can from my LHBS.

 

[Grainpaw]

Speaking as owner of a small LHBS in business for 25 years, I guarantee that we need your money a lot worse than AB-InBev does. I serve not only the mainstream homebrewers who join the clubs and read the magazines, etc, but people who are casual brewers just keeping themselves satisfied, people out in the boonies without internet, and old-timers doing it Prohibition-style. I'm the one who holds the hands of beginners who panic and think nothing is happening because the airlock isn't bubbling, when they just have an air leak. I'm the one who repeatedly explains proper grain mashing to moonshiners, who have heard they need malt, but don't have a clue what it is or how to use it. I'm the one who talks people out of using Chlorox to sanitize. I'm the one who goes to festivals, talks myself hoarse, hands out free samples, listens to exploding bottle stories until I want to charge for the service, and barely makes gas and lunch money. I'm the one who tries to solve everyone's problems and barely makes minimum wage and expenses doing it. People who don't love doing this don't last long. It would be encouraging to have some new regular customers.

 

[Volcanobrew]

Eric, I had that same argument with a group of people on FaceBook and a number of NB employees jumped in to crap on me. They began spewing hatred and saying I was a conspiracy theorist questioning everything else I posted negative about how AB InBev operates and requested verifiable sources for my rants. After I posted 5 articles from websites like Bloomberg and Forbe's Magazine they got all silent. I guess they saw the 1400 job lay offs that happened after Carlos Brito took the helm of AB and they were busy sending out resumes.

 

[GPP33]

It's funny seeing all these people ***** about the big bad corp and they are just now going to start supporting their LHBS. Where was your support for the little guy before this happened?
I suspect that in 6 months 95% of the posters bitching will forget about who owns what and once again purchase based on price alone while the little guy down the road who's there for you and willing to help you with or ideas or problems struggles.
This sucks for those who these businesses are their LHBS. For those who have no LHBS there are plenty of other online options, for those of us who have a LHBS (assuming it doesn't suck) you should have been shopping all along!

 

[Terek]

i will NEVER buy from them again. This is bull, and we should all boycott them. Tell them that they cannot bully there way into our hobby, by making northern brewer go bankrupt. If no one buys, they wont make money. It will send a clear message and they might leave us alone.
For those of you that dont think this is a big deal, and will continue to support them, do some research. Look into some documentaries and such about this company, and what they do. It is a very evil company that does not care about you, or your hobby. They only care about taking every dime they can from you. This will affect the quality of the product you get from them for sure. But they are just strait up evil. Dont support this. Dont buy from them. Shut this crap down.

 

[Terek]

I only buy from my LHBS. Do you buy food online and have it shipped? Then why your brewing ingredients? I guess if you have no LHBS, then yes, but there are oodles of other online shops not owned by this terrible company. But because of this, i wont even think about buying, or even visiting the websites of these two companies now.

 

[PIEHOLEBREWINGCO]

THEY JUST LOST A CUSTOMER

 

[ford2110]

Just unsubscribed from both.

 

[Domenico]

we all think about Busch had Acquries Northern Brewer &Midwest was it for the site the area where it is in or the people that buy from them there could be many things but what I don't want to is for people to loose there jobs they should keep them for what they all know and what they do to make people come in and buy from them I;am from Canada Toronto Ontario the company they buy was a small one they are the ones that kick butt and make any one come in make them feel good and they know what they have to do

 

[Induction2766]

I'm sure that nothing will change... or not much. I for one will stop purchasing from Northern Brewer and Midwest Supply. I guess that's one very minimal thing that will change I suppose.
This, I fear, is the beginning of the end of the home brew movement. Corporate America owns us all. It's inevitable I'm afraid. People tend to shop with the huge corporate shops. Wal-Mart, AT&T, Home Depot, Dicks Sporting Goods, Best Buy, Etc... I see no reason to believe that they'll stop with this. Sheep led to slaughter I suppose.
I'll shop the independent sites and shops while they're still available. I'm sure that at some point we'll all be brewing Bud Light because there will be no other ingredients available to us.
What a shame.

 

[Denbo]

Surely a sign of the apocalypse

 

[Onkel_Udo]

OK, I do order specialty food items online while residing in the US and did a lot more of it while residing overseas. So I do find you view incredibly narrow.
I also order specialty items from from Northern Brewery, Austin Homebrew Supply, Adventures in Homebrewing, Morebeer, etc. I also buy kegs from multiple sources online.
Will I stop ordering from NB/Midwest...kind of already did. Would this cause me to stop as I am also a fan of buy local when reasonable. My LHBS has way to long a lag time for items not on the self when AiH is a 2-days shipping away, cheaper and awesome to deal with.

 

[Wduncan1983]

I won't be shopping at either .... I'd rather pay more than support them.

 

[TrickyDick]

I have been increasingly moving AWAY from the "big guys" though in past have had excellent service when things were wrong. I haven't made many purchases through Midwest, but in the past 10 years have bought many kits and stuff from NB. In the past 3-4 years, I've been moving to buying from the new and only LHBS (which has awesome service, but the hops and dry yeast aren't the best storage-wise) and have been migrating to online retailers like Farmhouse and Hops Shack and of course, MoreBeer! for the rest. Mostly my shift in buying has been driven by shipping costs, but sadly will now be a political matter. I do not wish to support InBev in ANY manner, and now that I have been informed, I am free to do so.
TD