Anheuser-Busch InBev Acquires Northern Brewer & Midwest Supplies

[ford2110]

More on this subject from an owner of a HBS. 3 ways the acquisition could go. http://brulosophy.com/2016/10/20/the-industry-speaks-a-homebrew-shop-owners-thoughts-on-the-acquisition-of-northern-brewer-by-ab-inbev/

 

[Jessiegaddy]

I just cancelled my account at NB and will make the hour drive to the LHBS in another state because this is going to ruin NB as a company. This also explains why it took 12 days to get some corks and bottle caps from them a couple weeks ago.

 

[impur]

2 years of having to issue refunds for their beer is not a sign of declining quality?

 

[Bob]

I agree.

 

[Chris]

I actually stopped shopping at both Northern and Midwest years ago, I really like the more exotic recipe's over at Jasper's www.BoomChugALug.com. I swear I'm not affiliated, and I don't know how big they are, or if they are just some LHBS with a website. Prices are decent, the ingredients are definitely more fresh. They say they don't package your order until you order it. I don't have time / patience for all grain, and I'm not very creative, and they are. So I really like just brewing their extract recipes and having a cold 5 gallon keg of it near me at all times! I recommend them if that fits your level of brewing.

 

[bagels]

It's a principle thing. They control the distribution networks, the manufacturing, the sales, and now even the grass-roots starting point for people getting into the game of homebrewing. It's natural to assume that they'll begin recommending their own products to compliment the homebrew experience. It won't be long before they start buying interests in homebrewing supply manufacturing and then brewery supply manufacturing. They'll try to control the entire market. It's not a real company with values, it's a giant financial machine that preys on our society.
Northern Brewer company will live on, and may thrive with expanded marketing capabilities, but what they stood for and what their customers stood for is dead. All we wanted was to have fun, make something of our own, connect with like-minded people, and feel like we weren't supporting the monster. We got sold out. All of your purchase history and information is now fueling the machine to figure out how to get in front of the next little guy.

 

[dwhite60]

I emailed AB about a six pack of Bass ale I'd bought. I had not had a BASS is quite a few years but, I was shocked by how bland a recent six-pack was. First swallow and I was thinking "Where's the flavor?". They said same recipe it's always been. I told them BS and I would NOT be buying more. Might as well just had a BMC.

 

[Arty76]

That's simple, go down to your nearest farm , wait for a horse to take a leak, and add some lime concentrate

 

[PartsRep]

312 from Baldwinsville, NY is NOT the same beer that it used to be.
I call BS on this comment.

 

[Kelly]

This makes me sad. While miller lite is my go to 'if nothing else' beer, I happen to live about 10 minutes from their St. Paul location. I buy most of my grain from them in bulk. I know that much of their domestic bulk is also local, so maybe I find a way to bypass them? End result will for sure be higher prices.

 

[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