Another one swallowed by the larger fish

[Ize]

Story Courtesy of the AP...

ST. LOUIS — Anheuser-Busch Cos. (BUD), which brews Budweiser and Bud Light, said Friday it bought the Rolling Rock beer brand from InBev USA, the U.S. subsidiary of Belgian-Brazilian brewer InBev SA, for $82 million.

Under the agreement announced by the two companies, Anheuser-Busch will use the brand to expand its portfolio of products and begin brewing Rolling Rock and Rock Green Light in August.

Meanwhile, InBev said it will sell its brewery in Latrobe, Pa., to focus its U.S. business on imported beers and is currently in discussion with potential buyers.

"The decision to sell the Rolling Rock brands was based on InBev's strategic approach to the U.S. market, which is to focus on the high-growth import brands in our portfolio," said Doug Corbett, president of InBev USA.

InBev USA, which is headquartered in Norwalk, Conn., imports beer including Stella Artois and Beck's.

Shares of Anheuser-Busch gained 29 cents to $46.48 on the New York Stock Exchange.

Kind of sucks. And this after hearing yesterday the Goose Island deal is almost a given...


Ize

 

[Lou]

the dissolution (or transfer, i guess) of the rolling rock brand doesn't really bother me at all...
what's the goose island deal???

 

[mrkrispy]

"The decision to sell the Rolling Rock brands was based on InBev's strategic approach to the U.S. market, which is to focus on the high-growth import brands in our portfolio,"

hahaha after all the losses the big breweries have been taken, they buy up a beer that is just more of the same. Good sell by InBev.

 

[Dude]

That Goose Island thing really bugs me.

Not because the Goose Island people are protecting themselves by securing a future financially, but because now A-B can go and use this as more strong-arming to make themselves look good. Now they can say they care about craft brewers blah-blah-blah, whatever, whatever. To top it off, the more assets of craft brewing that they own, essentially it takes away craft brewing sales numbers because now those Goose Island numbers will be associated with A-Bs end of year stats.

I wish A-B would just go away.

 

[Ize]

Courtesy of the Milwaukee Business Journal

The announcement comes a day after the Chicago Tribune reported that Anheuser-Busch was close to a deal to acquire a significant share of Chicago's Goose Island Beer Co., producer of Honker's Ale. That deal would give the St. Louis-based brewery a 35 percent stake in Goose Island and distribution rights for the growing beer company's brands, according to the Tribune.

I think what bothers me is that we saw this in the 70's and 80's when BMC absorbed most of the smaller brewers. I'm sure it will help on distribution... but it seems there's an awful big "BUT" hanging out there.


Ize

 

[Ize]

That Goose Island thing really bugs me.

Not because the Goose Island people are protecting themselves by securing a future financially, but because now A-B can go and use this as more strong-arming to make themselves look good. Now they can say they care about craft brewers blah-blah-blah, whatever, whatever. To top it off, the more assets of craft brewing that they own, essentially it takes away craft brewing sales numbers because now those Goose Island numbers will be associated with A-Bs end of year stats.

I wish A-B would just go away.

I agree with you on that. I don't necessarily want them to go away, but leave the craft brewers alone and come up with your own.... I'm sure it won't hurt their profits....


Ize

 

[Dude]

You guys should read THIS book sometime. It has a chapter in it that delves into the strong-arming and shady business practices that A-B has done over the years. It is a fascinating chapter. The rest of the book is pretty great too, but that chapter made my blood boil with the white hot fire of 10,000 suns.




I did a review on the book HERE, BTW.

 

[God Emporer BillyBrew]

I know that the Goose Island thing is probably an overall bad thing. However, I can't help but think of it as a positive, I can't get their beers here and I want to! I bet this deal will make that happen.

 

[Rhoobarb]

I know that the Goose Island thing is probably an overall bad thing. However, I can't help but think of it as a positive, I can't get their beers here and I want to! I bet this deal will make that happen.

Goose is one of my favorites and carries a lot of Chicago-area pride, so I'm taking a wait and see attitude.

The Gosse Island deal won't bother me, so long as A-B doesn't buy 100% of it. Miller did a similar deal with Leinenkugel's several years ago and, IMHO, Leinie's is no worse for it. In fact, after the deal went through, Leinies slowly began releasing a lot of newer beers, such as their Creamy Dark, Apple, Big Butt, etc. I hope the same is true with Goose.

As for Rolling Rock, I can't recall the last time I had one. Maybe when The Deer Hunter was in theaters?

 

[Cheesefood]

Chicago is one of the only regions where Bud isn't the most popular beer. We're more of a Miller town in terms of Macrobrewed beer.

Now, why the hell won't Budweiser buy 22 Miles Brewery?

 

[Bernie Brewer]

It might be ok- I mean Miller bought out Leinenkeugel's a few years ago and Leinie's hasn't changed any. And their Chippewa Fall brewery is still in operation. If the beer doesn't change, then who cares who owns it?

 

[Ize]

It might be ok- I mean Miller bought out Leinenkeugel's a few years ago and Leinie's hasn't changed any. And their Chippewa Fall brewery is still in operation. If the beer doesn't change, then who cares who owns it?

Yeah but wasn't Leinie emergent nationally AFTER the big 3 (and others) swallowed up all of the other smaller breweries in the 70's and 80's? Weren't they really successful because they put out a decent product that was DIFFERENT from what BMC had been churning out and people recognized that only because 1 brand out of hundreds had the marketing behind it? That taste actually MATTERS when it comes to beer? I bet we'd all be truly amazed how many truly great beers in this country were wiped out of existence because of prohibition and then the seizing of one style of beer by a couple of major brewers and then touting then as the only "REAL" form of beer to the gullible masses.

In my mind the big brewers have won. No matter what, in this country, the masses will only see "cold filtered lagers with a born on date" as the only true form of beer. Only those in a small minority will see the wildly varying styles of beer that truly exist, and then only a small number will truly sample them.

It's insecurity on the Big Boys part. It all boils down to the buck which is why so many great breweries were absorbed over the years and no longer exist. Much like Europe, it used to be a regional thing. No longer. And to me, that's a damn shame. And now, when we see small sparks of that regional individuality showing up, one of the big brewers throw a lot of money their way to "Help".

I'm skeptical of their help. I think in the end it boils down to controlling a share of the market. They could give a damn less about what we as consumers want, as long as we buy their product. Which massive numbers of sheep will....

My apologies for the rant.... I blame beer.

Ize

 

[Bernie Brewer]

Yeah but wasn't Leinie emergent nationally AFTER the big 3 (and others) swallowed up all of the other smaller breweries in the 70's and 80's? Weren't they really successful because they put out a decent product that was DIFFERENT from what BMC had been churning out and people recognized that only because 1 brand out of hundreds had the marketing behind it? That taste actually MATTERS when it comes to beer? I bet we'd all be truly amazed how many truly great beers in this country were wiped out of existence because of prohibition and then the seizing of one style of beer by a couple of major brewers and then touting then as the only "REAL" form of beer to the gullible masses.

In my mind the big brewers have won. No matter what, in this country, the masses will only see "cold filtered lagers with a born on date" as the only true form of beer. Only those in a small minority will see the wildly varying styles of beer that truly exist, and then only a small number will truly sample them.

It's insecurity on the Big Boys part. It all boils down to the buck which is why so many great breweries were absorbed over the years and no longer exist. Much like Europe, it used to be a regional thing. No longer. And to me, that's a damn shame. And now, when we see small sparks of that regional individuality showing up, one of the big brewers throw a lot of money their way to "Help".

I'm skeptical of their help. I think in the end it boils down to controlling a share of the market. They could give a damn less about what we as consumers want, as long as we buy their product. Which massive numbers of sheep will....

My apologies for the rant.... I blame beer.

Ize

No apology needed for the rant- I do it too. It is true that prohibition killed of all but the biggest breweries. When prohibition first ended there was a limit to the amount of alcohol allowed in the beer sold in the U.S. Thus the style that we were given and then got used to, so it was the GOVENMENT, not the big breweries that touted this beer to the gullible masses. After the restriction was lifted, the beer was market-driven again. the macros are not some evil empire that is forcing us to drink swill, they make it because that's what most people want. If Rolling Rock and Goose Island didn't want to sell, they wouldn't.
The biggies are not winning. If you think so, come to Wisconsin. I went out to eat last night and sat in the bar while waiting our turn. They had Blue Moon, Sprecher, Spotted Cow, Spaten, and about four other craft beers that I couldn't quite see- all on tap. Oh and one tap of Miller Lite and one Bud Lite. I think the little guys are doing just fine. If not, it's no one's fault, it's just business.

See look, now I'M ranting. Sorry.

 

[Ize]

No apology needed for the rant- I do it too. It is true that prohibition killed of all but the biggest breweries. When prohibition first ended there was a limit to the amount of alcohol allowed in the beer sold in the U.S. Thus the style that we were given and then got used to, so it was the GOVENMENT, not the big breweries that touted this beer to the gullible masses. After the restriction was lifted, the beer was market-driven again. the macros are not some evil empire that is forcing us to drink swill, they make it because that's what most people want. If Rolling Rock and Goose Island didn't want to sell, they wouldn't.
The biggies are not winning. If you think so, come to Wisconsin. I went out to eat last night and sat in the bar while waiting our turn. They had Blue Moon, Sprecher, Spotted Cow, Spaten, and about four other craft beers that I couldn't quite see- all on tap. Oh and one tap of Miller Lite and one Bud Lite. I think the little guys are doing just fine. If not, it's no one's fault, it's just business.

See look, now I'M ranting. Sorry.

No, you're absolutely right. The problem in my neck of the woods is that there is very little availability of the smaller brews on tap. I can get a pretty decent variety of beers in the town where I work, but it's 30 miles from home, so that makes it tougher on weekends. I envy you guys and other areas of the country that have easier access to the smaller brewers, so maybe that's why I react the way I do when I see a giant like AB acquiring something that, to an outside observer like me, they don't really need. The other question remains now is what becomes of Latrobe? Maybe one of the smaller brewers will acquire it. According to the paper today, they have about 2 months before shutdown unless someone buys it...

Ize

 

[mrkrispy]

We got a first hand look at the strong arm tactics in San Diego back in the 90s. We had a great period when you could get a ton of craft beers in any grochery store. The big guys made it so most of the craft beers couldn't get any distribution.
I remember the news story about AB or miller trying to buy the entire hop farm that supplied all of the hops to Sam Adams....they failed of course.

I don't know why they just don't try to make a good beer, seems like it would be easier and cheaper considering their buying power.

 

[1ill_Biscuit]

If Dick Yuengling sells out I'm putting a roadside bomb in his driveway. I'll miss my favorite guilty pleasure...