Did Northern Brewer Purchase Austin Homebrew AND/OR Adventures in Brewing?

[Yesfan]

I went by AHS today to spend the rest of my gift cards. The last day the storefront will be open is tomorrow. Been driving To their store for supplies since 2007. It’s a real shame . AHS website will still be active but it is just a front for Northern, as all will ship from their warehouse up north (All left over inventory from AHS will also be packed up and sent to Northerns warehouse ). The building should be vacant by the 31st but they built it and own it so who knows how big of a hurry they are in to get out.

Maybe that's that "new warehouse" AiH was telling me about in their recent reply to me. That's pretty sh*tty, if merchandise from AiH and AHS is really coming from the stores in Northern. Seems it would be easier to just let those stores keep running as they are and avoid any layoff. Customers in those areas would get their orders received a lot quicker.

 

[Gus_13]

It sucks to see them closing storefronts. I definitely have used them in the past. I do still like NB as they have a large selection and I don't have anyone close for a LHBS. Weird to see that so many people hate NB when it's the holdings company that is doing this and not actual NB from what I can tell. NB was my go to when I first started and their videos gave me a lots of knowledge back in the day. I appreciate the free shipping at $49 as well. Sucks to see anyone lose their jobs though especially if it was done that way.

 

[doogster]

Missouri Malt in Fenton, Missouri (actually, southwest St Louis area) for malt, hops, yeast and other ingredients including flour for baking! Although I live south of Cincinnati (Listermann and Paradise Brewing) I visit St Louis often enough to stock up on ingredients. I do buy local to fill in holes when I run out. Rarely purchase ingredients online...

Grew up in South St. Louis... on my trip to visit dad this past December I stopped in at Missouri Malt and picked up a few harder to find hops and hauled them back to Cleveland. Nice guy, and a good selection.

 

[kartracer2]

Yeah I don't quite understand the hate for NB/MS buying AIH/AHS. Maybe be because they were sort-of involved with the "evil AB/Inbev" at one time.
The way I see it those stores, store front biz, might not have been making enough in sales to make bail. Online sales probably kept them alive and doing well. The owners probably got a nice check for selling and washing their hands. Yes is sucks for the employees though but it does happen all the time in other biz.
Now with all that said, I am going to re-evaluate my buying habits. I have been getting a lot of my stuff from the MS side of NB/MS. MS has a slightly lower cost but a higher minimum for free shipping but I usually have no problem achieving that. I might add that I get my stuff the next day after processed.
Now though, their prices have really gone up. On one particular extract kit that I have bought regularly, in the last 6 months has gone from $30.00 (9/21) to the last one @ $37.00. (3/22) Now I can buy those same ingredients ala-cart from RiteBrew for $35.00 and have a pound of DME left over. ( just a FYI, same kit from NB is now $43.00).
Another point I might bring up is I wonder if maybe some sellers are ahead of price increases more than others. When you look at the prices that vary for extract as they do, it makes me think a bit. Lot's of moving parts and pieces in this puzzle.
So what does all this blathering really mean? As always you gotta keep your pencil sharp in today's market and if you are lucky enough to have a LHBS, shop the store front if you want to keep it.
As always, Cheers,
Joel B.

 

[Dancy]

@ kart racer — All well said. I think it is easy to think poorly of a company when employees are laid off but that’s business everywhere when there are acquisitions. Employees working in a retail store no longer needed can’t be kept on in other roles just to be nice and to be frank, an employee working at the retail level is not (hopefully!) looking at that job as a long term career move. As a young man, I worked retail sales in a camera store and also men’s suits, luggage and shoes; however, in the early and mid 1980s those paid commission so you could make a better living than today. Commission is why we received better service in those days.

 

[tracer bullet]

Maybe that's that "new warehouse" AiH was telling me about in their recent reply to me. That's pretty sh*tty, if merchandise from AiH and AHS is really coming from the stores in Northern. Seems it would be easier to just let those stores keep running as they are and avoid any layoff. Customers in those areas would get their orders received a lot quicker.

NB has a HUGE warehouse about a mile from where I live. I wouldn't be surprised to see future web orders for those companies being shipped from MN.

I do find it odd NB would bother, to an extent. I wonder if they actually paid very much. Let the store close, fire the employees of course, and send the web orders to themselves. I get that, but the difference in that and doing nothing and just getting those online orders anyhow... Doesn't seem like a huge difference. Especially after everyone figures out what's up anyhow.

I cross show NB and Midwest and at first appearances they seem like different places but if your'e really comparing items you'll start seeing the overlap pretty easily. Midwest's store has both brands on packages on the shelf. They're both here near me.

NB is funny that their store is tiny, and their warehouse is like a city block in size. Midwest, however, is pretty big for a LHBS and is even bigger when you see that they've got a boatload of inventory off to the side in another room as well. How that overlaps w/ NB's warehouse I haven't yet figured out.

 

[ElTacoLoco]

Ever since my brother and I first decided to get into homebrewing 15 years ago, I have been incredibly fortunate to be able to have Austin Homebrew Supply as my LHBS. At that time they were a small storefront off Burnet Rd. Walking into the store with little knowledge, the salesperson walked us through the brew process and sent us off with the starter equipment kit and our first recipe, an oatmeal stout, as well as a number to call if we had any questions. Throughout the years as I learned and adapted my processes I always had the benefit of quick access to a fully stocked LHBS with knowledgeable staff, with the added throughput of internet sales I could also always rely on them to have the freshest ingredients. Everything for me could be purchased the day before brew day, and I never had to worry about shipping. No internet sale or discount could ever match the convenience of walking into the AHS grain room and measuring out the exact amount of grain needed for recipes. If a last minute change meant I was going to brew 15 instead of 10 gallons, it was a quick trip to run down and get the missing grain to match the adjusted recipe.

Not knowing what the future will hold, today I went in and used all the remain gift certificates and rewards points I had sitting around to overstock on bulk grain and items I know I can't beat with internet pricing. I witnessed a couple purchasing a homebrew equipment starter kit and getting the same level of personal service that started me on the venture years ago.

Hands down this sucks. It sucks for me who has lost a local resource that was unmatched anywhere else. However, even more the story behind this is bad for everyone. I don’t believe this was an unprofitable storefront (don't tell me that the oldest and most prolific HBS in Austin, Texas was failing). This is story of acquisition, and Blackstreet Capital Holdings deciding that the storefronts are not profitable enough for their shareholders.

 

[kartracer2]

I don’t believe this was an unprofitable storefront (don't tell me that the oldest and most prolific HBS in Austin, Texas was failing

Then I guess it begs to question why someone local didn't buy it. Better question yet, why was it sold in the first place. If it was so profitable you would think someone in the great state of Texas would jump at the chance to buy it instead of some outfit from Minnesota.

This is story of acquisition, and Blackstreet Capital Holdings deciding that the storefronts are not profitable enough for their shareholders.

Capitalism, you got to love it!. (or not) Like I said, it sucks for the local people and employees involved. I'm sure there is way more to this story that what we will ever know. I can say this though, when all said and done, it gets down to money or lack there of, it always does. I'm not defending any one but Biz is Biz.

Cheers,
Joel B.

(edit) Blackstreet Capital is actualy out of Bethesda, MD .

 

[Dancy]

I started brewing in 1994 and did it for 5-6 years until a divorce then came back to it a few years ago. I’ve lived in Mpls/St. Paul the entire time. Back then it was NB, Midwest Supplies, Brew&Grow, and some place in Bloomington (suburb). That’s it, as far as I can remember. Now the last two are gone. The Twin City area was/is 3mil+ people and we weren’t ordering off the Internet like we are now. That is not many retailers for a hobby in a metro area this large. As a group of hobbyists, I’m thinking we aren’t that large compared to many. If you want to continue to experience the warm fuzzies of conversing with fellow brewers at your local shop, maybe joining a brew club has to be it —Or getting together with a buddy to brew — something many of you already do. I do neither but really appreciate HBT as a resource because I’ve not sought much advice at the shop anyway. I miss brick and mortar stores for a lot of things but frankly, I have blame myself to some degree for mail ordering instead.

 

[matt_m]

I could care less about AIH/AHS selling. I just went through that last year with my employer when the majority owner decided to retire. I knew something was going to happen someday but it came as a surprise. A lot has changed, a lot hasn't.

What I care about is that NB sucks as an online supplier. For equipment it seems like everything they carry is a house brand and its all overpriced for what it is. For ingredients they are significantly overpriced, slow to ship, and have poor customer service.

 

[MikeCo]

Back then it was NB, Midwest Supplies, Brew&Grow, and some place in Bloomington (suburb). That’s it, as far as I can remember. Now the last two are gone.

There's also Beer Meister in Plymouth (suburb). By the way NB had both a Minneapolis and St. Paul location up until about 3 years ago when the Minneapolis location closed.

I'm concerened the owners will close the retail locations of MWS/NB next.

 

[eyedrink]

Then I guess it begs to question why someone local didn't buy it. Better question yet, why was it sold in the first place.

It is a specialized business with high overhead and low margins. When it was a small shop run by the owner and a couple of low paid employees with no benefits, it is manageable.

We went through the same thing here in Houston with Defalco's . I started brewing back in 88 while in college. We would drive 2 hrs to pick up supplies and hit up a few bars for our monthly supplies. It was in an old strip center mini-mart. Late 90's and the new owner, a dear friend of mine moved to another small site and I worked part time there. We had a healthy mail order business with phone orders ( no internet). Early 2000's, shop moved again to a larger strip enter and got internet presence and healthy mail order. .... The nail in the coffin was a move to a huge space which had been a grocery store which coincided with a downturn in homebrewing. We still have a good small shop , Farmboy Homebrew, that I get most of my ingredients from.

 

[T Murph]

Looking forward it's only gonna get worse. And that is way I'm planting barley this year. Started a hop garden last year and expect a bountiful harvest this year. By fall I'll be harvesting and storing yeast also. So let the shi```` hit the fan, I'll be brewing and drinking beer.

 

[Dancy]

By the way NB had both a Minneapolis and St. Paul location up until about 3 years ago when the Minneapolis location closed.

Yes, that was a bummer as it took me 5 minutes max to drive there. We can all ***** about NB or any store we don’t like, but when you live real close to one, you’ll put up with it.

 

[D.B.Moody]

Missouri Malt in Fenton, Missouri (actually, southwest St Louis area) for malt, hops, yeast and other ingredients including flour for baking! Although I live south of Cincinnati (Listermann and Paradise Brewing) I visit St Louis often enough to stock up on ingredients. I do buy local to fill in holes when I run out. Rarely purchase ingredients online...

Grew up in South St. Louis... on my trip to visit dad this past December I stopped in at Missouri Malt and picked up a few harder to find hops and hauled them back to Cleveland. Nice guy, and a good selection.

My order for my next 9 brews will be split among Rite Brew and Label Peelers on line and Missouri Malt, my local. I was there today and I mentioned that a guy from Kentucky gave his shop kudos on HBT. He was appreciative.
He also implied that you had people picking up your stuff and delivering it to you. I want in on that!

 

[Brooothru]

I usually buy a lot of stuff from Atlantic Brew Supply in Raleigh. They have good prices and fast shipping. Since you’re in NC you’d probably get your order in a day.

^^^All true^^^

 

[Dancy]

AND Atlantic will double crush your grain.

 

[Yesfan]

Guess my next purchase will be from Atlantic...............

 

[Big_D]

I’m in Georgia.. Atlantic Brew Supply has been my primary supply since I started last year. They’re great folks to deal with, shipping is fast, and prices are good. Unfortunately, I have no LHBS options within an hour drive, so I rely on online retailers. ABS has provided stellar service!

I’ve placed a couple orders on Thursday which would arrive on Saturday. Each time, they’ve called me to verify if I want to risk the Saturday delivery or wait until the following week since the orders included liquid yeast. The orders have always made it on time and the yeast is packed in thermal bubble wrap with ice packs at no additional charge.

 

[magno]

I'm beyond disgruntled about AHS closing down, and the way they did it, without much forewarning or any publication is a real PITA for locals on the north side of town (like me) who could just drop in on a whim. I will not be buying anything from the mail-order outfit. As ElTacoLoco mentioned - I don't believe that the storefront was unprofitable... it seems like they got too big for their britches trying to compete in the online market, and decided to chase the $$$ instead of continue providing excellent service and support to the local crowd.

I'd been a loyal customer from 2006 until a few years ago when SoCo Homebrew started up, and after AHB moved from Burnet to Metric. Since then, I'd found that the folks at SoCo HB are more friendly and knowledgeable than the recent AHS staff, but it had been nice having a homebrew store so local...

SoCo Homebrew is still open and busy... I was in there just earlier today.

 

[Dancy]

I'm beyond disgruntled about AHS closing down, and the way they did it, without much forewarning or any publication is a real PITA for locals on the north side of town (like me) who could just drop in on a whim. I will not be buying anything from the mail-order outfit. As ElTacoLoco mentioned - I don't believe that the storefront was unprofitable... it seems like they got too big for their britches trying to compete in the online market, and decided to chase the $$$ instead of continue providing excellent service and support to the local crowd

I can understand why your disgruntled. FWIW, I live in Minneapolis and a short drive to Midwest Supplies. Physically a big store, a lot of merchandise. And rarely busy when I go in there on a Saturday or Sunday. Yet they and NB do a big online business. I am not a small — or big — business expert, but it appears to me a lot of online businesses in general have been hurting brick and mortar stores for a long time now — more than hurting in many cases. As home brewers, we may need to accept the fact of diminishing local homebrew shops. I’ll take whatever is offered to do the hobby.

 

[GoodTruble]

Logged in to AIH today, and it looks like my Rewards Points were wiped out. It was only worth about $20, but some forewarning would have been nice (though I definitely saved more than that off that insane clearance sale they just had =c) ).

 

[matt_m]

Man they really know how to take care of their customers.

 

[Draft Master Flash]

I had placed an order last week and it didn't ship. After contacting them they stated they were moving to a warehouse to consolidate their inventory and gave me the option to wait till sometime this week or they would refund and close order. I opted to just wait . Also the rewards are just temporarily unavailable. Once they resume shipping you should be able to see them on their website and redeem. That's all the info I was able to get for now.

DMF

 

[Ren06]

This is exactly why it's imperative to support your local HBS if it hasn't went out of business yet. I understand if ones not close to you but please support your LHBS even if you have to pay a little more. Brew on!

I got a LHBS 3 mins walking from my home. The prices are decent and they have a great selection of hops and malts. They don’t have everything but they have more than enough for me to support them happily .

 

[Homebrew Harry]

I got a LHBS 3 mins walking from my home. The prices are decent and they have a great selection of hops and malts. They don’t have everything but they have more than enough for me to support them happily .

I'm jealous. I was happy when I found out I had one 2 hours away in another state. Fortunately I visit family nearby. Hobby Homebrew in Carbondale IL has darn near everything in stock and they have an online store plus ebay sales. They are also very competitive. Since finding HH I haven't ordered anything online.

 

[brew_mama]

I'm beyond disgruntled about AHS closing down, and the way they did it, without much forewarning or any publication is a real PITA for locals on the north side of town (like me) who could just drop in on a whim. I will not be buying anything from the mail-order outfit. As ElTacoLoco mentioned - I don't believe that the storefront was unprofitable... it seems like they got too big for their britches trying to compete in the online market, and decided to chase the $$$ instead of continue providing excellent service and support to the local crowd.

I'd been a loyal customer from 2006 until a few years ago when SoCo Homebrew started up, and after AHB moved from Burnet to Metric. Since then, I'd found that the folks at SoCo HB are more friendly and knowledgeable than the recent AHS staff, but it had been nice having a homebrew store so local...

SoCo Homebrew is still open and busy... I was in there just earlier today.

I didn't even realize that there was a home-brew store in south Austin. I'm way up north and gong down there would be a drive, but I might check them out every once in a while.

 

[shetc]

Well, bummer. I've been very satisfied with AIH as my primary online retailer. They were helpful and prompt. Haven't used NB in many years.

 

[Teufelhunde]

i don’t work in the brewing industry but I have been through 2 mergers and sales
In the last 2 years. Each time the benefits get worse…. At least I never lost my job. Best of luck to those that have.

I have an AIH gift card, hope it is still valid.

I am retired now, but when I was working (in the autobody business), I went through four mergers/buyouts. Every single time, the customer service, employee working conditions, and compensation got worse. The bigger the corporation, the harder they squeeze the working folks so the the CEO's, CFO's and shareholders can get theirs......

 

[Teufelhunde]

I got a LHBS 3 mins walking from my home. The prices are decent and they have a great selection of hops and malts. They don’t have everything but they have more than enough for me to support them happily .

I am jealous AF. I have to drive 70 f'in miles into Phoenix........

 

[Yesfan]

I am jealous AF. I have to drive 70 f'in miles into Phoenix........

I have to drive an hour to hour and a half to get to my nearest "LHBS". They're more a world beer store that carries select homebrew ingredients then a true LHBS. Great store.

But yeah......jealous AF as well for me.

 

[stodds]

My LHBS also has an online storefront. They have a very healthy supply of ingredients and equipment with very quick turnaround from order to shipping. Hop Craft Supply Co. | Beer & Wine Making Supplies

Just bought a couple batches worth of ingredients from Hop Craft due to my excellent customer service experience with them in the past. My wife bought me a really nice kettle that I wanted from them online. Long story short, I didn't need the kettle. Not wanting to foot the very large bill to ship back to Hop Craft, I talked to them. They sent me a shipping label, took the cost off my refund -- which was at their GREATLY reduced shipping rate. The guy I worked with was super nice.

I don't forget those kinds of things. Plus, I was getting frustrated with the AHS site when it comes to ordering fractions of a pound. Used to be able to. And frankly, I'm pretty upset that they just blew out of town. Sure, send me all the emails selling me stuff. But not even a courtesy email telling me that they're leaving? I did like their storefront. Though it seems that most of the good workers left around the time of being acquired by AiH.

 

[Draft Master Flash]

I finally just canceled my order at AIH after too many emails stroking me along. Although they promptly refunded me it's bothersome that they keep sending out these other 15% offers when they can't even keep up with orders placed weeks ago. I'm done with them. I've since found a few other vendors that have proven trustworthy and pretty reasonably priced. Though like some others I'll miss those used corny kegs AIH sold cheap.

DMF

 

[Yesfan]

I think my last set of cornys came from AiH.

 

[hout17]

I think my last set of cornys came from AiH.

Yup, they had great deals on Cornys especially used ones.

 

[Draft Master Flash]

I think my last set of cornys came from AiH.

The couple cornies I previously purchased from AIH were in immaculate shape and that's one thing I will miss.. Another corny I have that was purchased from a keg store located in Comanche, TX was P.O.S and even cost more. Besides the numerous dents inside the worst thing was the lip where the lid sealed was gouged pretty bad and is barely usable. Not what I would expect from a store that supposedly specializes in kegging!

DMF

 

[kevin58]

Just bought a couple batches worth of ingredients from Hop Craft due to my excellent customer service experience with them in the past. My wife bought me a really nice kettle that I wanted from them online. Long story short, I didn't need the kettle. Not wanting to foot the very large bill to ship back to Hop Craft, I talked to them. They sent me a shipping label, took the cost off my refund -- which was at their GREATLY reduced shipping rate. The guy I worked with was super nice.

I don't forget those kinds of things. Plus, I was getting frustrated with the AHS site when it comes to ordering fractions of a pound. Used to be able to. And frankly, I'm pretty upset that they just blew out of town. Sure, send me all the emails selling me stuff. But not even a courtesy email telling me that they're leaving? I did like their storefront. Though it seems that most of the good workers left around the time of being acquired by AiH.

Mike and Brandon are great at taking care of their customers. I was just in today to get ingredients for my next brew and mentioned that I was interested in the Tapcooler counter pressure bottle filler but wasn't sure which model faucets I had and Mike says just take it home with you and see if it works. There aren't many shop owners willing to do that these days.

 

[Nextech]

I really wish I saw this thread before I placed my order a couple weeks ago. I've been a long-time supporter of AIH. Over the years, I have found them to have great products, reasonable pricing, and most importantly - exceptional customer service. I thought it was bizarre when I attempted to place my order that I needed to re-register a new account on their website, but didn't think too much about it as communication from the company hadn't changed. I am now regretting the decision not to look into it further.

After not receiving my order for nearly 2 weeks (usually their orders shipped same day or next day), I checked the website to see if the order status had been updated. Nothing, it just states "unfulfilled." I never received any email or anything indicating a problem with the order, so I decided to call. Instead of being greeted by the friendly and familiar voices at AIH, the phone was answered by a guy who clearly doesn't like his job and responds to customers as if they are a nuisance. Before I could even explain the situation he abruptly told me that "online orders can take up to 5 days to arrive once shipped so you'll just need to wait." Every time I attempted to talk, he would quickly interrupt me with some canned response about order shipping times, etc. I kept trying to explain to him that I don't believe the order had even shipped yet, until he finally acknowledged me and rudely stated "Well you need to give me the order number before I can do anything about that." Yeah guy, if you didn't interrupt me ever time I tried to explain to you and give you the order number, you'd have that information.

Long story short, he basically told me that it is not unusual for orders to take 10 business days to process and that I should receive an email when the order ships (it has already been more than 10 business days). I asked if there was a change to their business practices or if they were bought, because at this point I was becoming very suspicious. Also keep in mind that they still advertise Fast & Free Shipping for all orders over $59 on their website. I have NEVER had this experience with AIH staff nor any delayed shipping without proper communication. I always received all my orders within 3-4 days from the time the order was placed, they were extremely fast. He responded and told me that they were recently acquired by another corporation but that online sales remain the same. He wouldn't elaborate on who bought them or when, but did confirm all retail sales were no longer available and it was now an online only operation. Had he told me who they had been acquired by, I would have immediately cancelled my order.

A quick search online revealed that AIH and AHS were bought out by Blackstreet Capital (Northern Brewer) which is extremely sad but now explains why they have such terrible business practices and poor customer service. I rechecked their website and sure enough, they have updated the address to the MN location. Then I found the threads that outline how this all went down. So yeah, they bought AIH, flipped it upside down, fired all their employees without adequate notice, robbed the customers of their rewards points, changed their order processing and shipping practices without updating their shipping policy on the website, ran a bunch of sales to generate orders that would be immediately billed but unable to be fulfilled, and never once sent an email to loyal AIH customers to let them know anything was changing. Is all of this perfectly acceptable from a business standpoint in the realm of capitalism? I guess. But this is not the type of business I will spend money at ever again.

RIP Adventures in Homebrewing

 

[Draft Master Flash]

I had an order that never arrived so I finally contacted AIH to cancel and was given a prompt refund. This was in late March. After about a month I realized how much I missed their used corny kegs. So I figured I'd give AIH another chance hoping they were all caught up with their back orders. Well, this time it was shipped out immediately and was the same as before in great shape. So who knows what direction they'll go from here.

DMF.

 

[kartracer2]

@Nextech Welcome to HBT.
Sad that your first two posts have to be about AIH selling out. (this one and it's twin on another thread).
First,

A quick search online revealed that AIH and AHS were bought out by Blackstreet Capital (Northern Brewer) which is extremely sad but now explains why they have such terrible business practices and poor customer service

I'll see your one bad experience with NB/MS and raise you 8 totally satisfied transactions with them. (almost $1300 worth). 7 out of those were filled with in 24 hrs and safely in my hands a day or two later. The outlier was probably my fault, it was made during the x-mas rush, it cost me a whole day more.
Also, I thought I had read in this thread or the other thread you posted in that the "MB/MS/AIH" were going to honor those rewards points, I might be wrong though. I would look into it if I had any of them.
I still have to ask the question why AIH/AHS had to run in the dark of night in the first place. Every one speaks so highly of them (AIH) yet they chose to sell out this way.
My guess?,

Is all of this perfectly acceptable from a business standpoint in the realm of capitalism? I guess.

Yes, the AIH/AHS owners took the money and ran, it looks like to me they are the capitalists. I'm sure they are happy with the results ($$$) I've yet to see any evidence that AIH is the saint and MB is the sinner here.
Just my humble opinion.
Cheers,
Joel B.