InBev Strikes Again

[TexasDroughtBrewery]

This one hurts, I really enjoy Karbach beers.

http://www.chron.com/business/retai...-acquired-by-Anheuser-BuschInBev-10590579.php

 

[Rockn_M]

That's a bummer.

 

[EDF713]

NOOOO!!!! I just saw this and was about to post it. I guess we need to get used to it, Karbach has been a favorite since they started. I thought they might stay indie for a while since they've done so well on their own. I always wondered why they had such great distribution, then I read this and the owners were distributors before brewers, duh.

 

[GilaMinumBeer]

"existing management and brewers will remain in place and the company will retain much of its independence while also gaining access to the resources that will help it continue to grow."

Seems to me they still get to be Karbach. But with AbInbev resources and distribution. I fail to understand why this is bad.

 

[WrQth]

Does their beer taste different when they get a new owner?

 

[TexasDroughtBrewery]

NOOOO!!!! I just saw this and was about to post it. I guess we need to get used to it, Karbach has been a favorite since they started. I thought they might stay indie for a while since they've done so well on their own. I always wondered why they had such great distribution, then I read this and the owners were distributors before brewers, duh.

Yeah... the owner said "The financial piece wasn't that important at the end of the day," Goodman said. "It was the resources."

But I don't believe it they were doing REALLY well with great distribution it was absolutely the money.

 

[WrQth]

"existing management and brewers will remain in place and the company will retain much of its independence while also gaining access to the resources that will help it continue to grow."

Seems to me they still get to be Karbach. But with AbInbev resources and distribution. I fail to understand why this is bad.

It's the same reason people are looking for alternatives to NorthernBrewer.com. I however don't like NorthernBrewer.com because their order processing and shipment timing sucks (at least in my experience) whereas I could care less who owns them.

 

[GilaMinumBeer]

Yeah... the owner said "The financial piece wasn't that important at the end of the day," Goodman said. "It was the resources."

But I don't believe it they were doing REALLY well with great distribution it was absolutely the money.

I am more curious to know if this deal was struck before the antitrust regulations stipulated in the SAB deal or if this was approved by antitrust comission as required.

 

[EDF713]

Yeah... the owner said "The financial piece wasn't that important at the end of the day," Goodman said. "It was the resources."

But I don't believe it they were doing REALLY well with great distribution it was absolutely the money.

I guess they wanted to be bigger, and this is the easiest way to do it. They certainly do well with market share in the Houston area, and I've seen them around the state a bunch. Let's hope they can still be Karbach and not push others off the shelves.

 

[Kent88]

I don't know much about the business, but this reeks to me of them having trouble making money and staying competitive. Sucks that they couldn't find a different investor to help them out.

"existing management and brewers will remain in place and the company will retain much of its independence", wonder how long that lasts. There are ways to make the new culture intolerable for certain people in management, and old positions can be cut entirely while new ones form just months later. The word "much" in that quote also leaves some wiggle room, AB InBev will issue a few suggestions in addition to the orders they send that way, and these people will want to please their new bosses.

Best of luck to the employees at Karbach.

 

[Murphys_Law]

Does their beer taste different when they get a new owner?

No, but they had to shave their beards and wear polo shirts.

 

[JWBC]

No, but they had to shave their beards and wear polo shirts.

Is there no mercy!

 

[madscientist451]

This one hurts, I really enjoy Karbach beers.

I'm thinking of moving to IRAQ, the elected officials there just decreed no more alcoholic beverages are allowed, so I won't have to worry about ABInBev ruining my life.

 

[WaltStarr]

Literally hundreds of other choices out there makes these buyouts moot. They would go bankrupt if they tried to buyout everybody.

 

[jerbrew]

What really sucks is what these craft breweries start doing once they've been purchased and start getting pressure to make and sell more beer.

Example: Saint Archer sells a majority share to Coors. This didn't surprise or bother me since they opened with a lot of production ability and were in stores before I knew I worked a mile from them..= However, since they were purchased they have expanded pushing out businesses in the building that were in their way. Most recently, my rock climbing gym announced, quite suddenly and after doing major renovations, that they were going to shut down in 6 weeks because Saint Archer was taking over their space, essentially pushing them out. Now I'm all for growth and I still had a beer at Saint Archer after climbing since they gave a 15% discount for gym member (good neighbor discount huh?) and produced some solid beers. But there are tons of options besides waving your giant commercial beer stick around for growth that don't require bullying thriving small businesses out of their homes.

I'll spare y'all my Ballast Point Rant (let's just say their spreading the infrastructure of the area quite thin)

When It's in your back yard I think it's easier to get a little pissed. I understand it's business but it doesn't mean it can't piss you off a little.

 

[Upthewazzu]

80,000 barrels of beer in their 5th year of existence? That's insane.

 

[jensek]

Pretty sure they aren't being pushed out. According to the County Treasurer your rock climbing gym owned the building outright. Chances are they were offered a fair payout.

 

[EDF713]

80,000 barrels of beer in their 5th year of existence? That's insane.

I've thought the same. They have good beer, but somehow they came on the scene and immediately you could find their beer everywhere in Houston. 5 years ago, St Arnolds was the only local craft you could find in grocery stores, then Karbach starts up and they were on the shelves everywhere. Now it's the go-to local for a lot of folks around here, and it's everywhere in Dallas, too. Besides being started by distributors, there had to be a significant investment. Without knowing the financials, I think it's safe to say it's paid off.

 

[jensek]

I've thought the same. They have good beer, but somehow they came on the scene and immediately you could find their beer everywhere in Houston. 5 years ago, St Arnolds was the only local craft you could find in grocery stores, then Karbach starts up and they were on the shelves everywhere. Now it's the go-to local for a lot of folks around here, and it's everywhere in Dallas, too. Besides being started by distributors, there had to be a significant investment. Without knowing the financials, I think it's safe to say it's paid off.

Was surprised at how business minded one of our local breweries was in regards to it's startup. I thought it was a homebrewer who started the business. Instead it was local business men and women who liked beer and created a start up....conceived from the ground up with expansion as one of their goals.

I don't care. They make good beer.

 

[GilaMinumBeer]

What really sucks is what these craft breweries start doing once they've been purchased and start getting pressure to make and sell more beer.

Example: Saint Archer sells a majority share to Coors. This didn't surprise or bother me since they opened with a lot of production ability and were in stores before I knew I worked a mile from them..= However, since they were purchased they have expanded pushing out businesses in the building that were in their way. Most recently, my rock climbing gym announced, quite suddenly and after doing major renovations, that they were going to shut down in 6 weeks because Saint Archer was taking over their space, essentially pushing them out. Now I'm all for growth and I still had a beer at Saint Archer after climbing since they gave a 15% discount for gym member (good neighbor discount huh?) and produced some solid beers. But there are tons of options besides waving your giant commercial beer stick around for growth that don't require bullying thriving small businesses out of their homes.

I'll spare y'all my Ballast Point Rant (let's just say their spreading the infrastructure of the area quite thin)

When It's in your back yard I think it's easier to get a little pissed. I understand it's business but it doesn't mean it can't piss you off a little.

I can't even begin to speculate about what tactics they used but, I can attest that it is way easier for a climbing gym to relocate than for a brewery. The current location is already zoned for the use, that is HUGE hurdle. These building are reviewed against code for he most restrictive use/occupancy. Chances are the current building has already passed code for fire area limitations, size, and construction type. That is another HUGE hurdle. And if that is in fact the case, then the permit for the brewery to expand into the rest of the building is little more than a formality of public record.

 

[TexasDroughtBrewery]

I'm thinking of moving to IRAQ, the elected officials there just decreed no more alcoholic beverages are allowed, so I won't have to worry about ABInBev ruining my life.

Its always good to have a plan B.

 

[Upthewazzu]

I've thought the same. They have good beer, but somehow they came on the scene and immediately you could find their beer everywhere in Houston. 5 years ago, St Arnolds was the only local craft you could find in grocery stores, then Karbach starts up and they were on the shelves everywhere. Now it's the go-to local for a lot of folks around here, and it's everywhere in Dallas, too. Besides being started by distributors, there had to be a significant investment. Without knowing the financials, I think it's safe to say it's paid off.

Very true, sounds like they have a distribution advantage aside from being one of the only available options in the area. But 80k is massive, and they have plans for 150k. They obviously built incredible levels of growth into their business model.

 

[jerbrew]

I can't even begin to speculate about what tactics they used but, I can attest that it is way easier for a climbing gym to relocate than for a brewery. The current location is already zoned for the use, that is HUGE hurdle. These building are reviewed against code for he most restrictive use/occupancy. Chances are the current building has already passed code for fire area limitations, size, and construction type. That is another HUGE hurdle. And if that is in fact the case, then the permit for the brewery to expand into the rest of the building is little more than a formality of public record.

True. And I get it. But the truth remains that Saint Archer has a really big facility for how young they are. And there really isn't a need besides profit to expand and distribute more. They have a ton of 300 gallon fermenters and being owned by coors their beer can be brewed and distributed anywhere you find coors. They are expanding in order to store their barrels and i'm guessing brewing supplies. San Diego has some really friendly brewing laws i'm guessing since there are 100+ breweries and brewing tasting rooms in the county. Especially in the area of saint archer (14 I can think of within a mile or two). It's an industrial park that's apparently zoned for it. A climbing gym (that's been there longer) also can't be an easy thing to move. You have to build it out and get all the insurance thumbs up. Make sure you're in an area that services your clientele still and do that while not making any money on membership with about 2 months notice.

Again, I get it and they have to do for them what's best. But my point still stands. I don't like what seems to happen as a result of corporate investment. But what can I do but complain right?

 

[mredge73]

I am disgusted by this news, I love me some Karbach. It isn't a team up like they are spinning it; it is a straight up acquisition.
They are already all over town, if they wanted wider distribution why wouldn't they have teamed up with silver eagle?
Shiner can be found in almost every state, there is no need to sell out for distribution.
I am sure the owners are happy counting their money; after AB strips the "craft" out of their brewery and puts a halt to innovation, Karbach will be nothing more than a meaningless label.

 

[Tribe Fan]

Consolidation is a sign of saturation.

 

[day_trippr]

I think consolidation in the macro market segment is the direct result of negative growth.
And acquisitions by the mega macros outside of their traditional core business is another sign of the same basic problem.

One could claim "saturation", but it's specific to the segment...

Cheers!

 

[TX_Brewing]

Hones toy their beer is been average at best, not the best pickup of AB IMHO.

 

[AZCoolerBrewer]

Does their beer taste different when they get a new owner?

Yes, with the new owner comes change. AB bought Four Peaks here in Phoenix. I can only speculate as to why, but Kiltlifter is not the same beer it once was (worse). Neither is Hop Knot. Although I think Hop Knot is better now. I definitely call shenanigans on AB. I think they have an ace up their sleeve and these buy outs are part of a greater plan that will not be good for craft beer.

 

[jensek]

True. And I get it. But the truth remains that Saint Archer has a really big facility for how young they are. And there really isn't a need besides profit to expand and distribute more. They have a ton of 300 gallon fermenters and being owned by coors their beer can be brewed and distributed anywhere you find coors. They are expanding in order to store their barrels and i'm guessing brewing supplies. San Diego has some really friendly brewing laws i'm guessing since there are 100+ breweries and brewing tasting rooms in the county. Especially in the area of saint archer (14 I can think of within a mile or two). It's an industrial park that's apparently zoned for it. A climbing gym (that's been there longer) also can't be an easy thing to move. You have to build it out and get all the insurance thumbs up. Make sure you're in an area that services your clientele still and do that while not making any money on membership with about 2 months notice.

Again, I get it and they have to do for them what's best. But my point still stands. I don't like what seems to happen as a result of corporate investment. But what can I do but complain right?

Looks like from their facebook post it was the right decision for them to take the offer. Either they were offered enough that they think they can setup a better shop somewhere else or the offer was worth more than what the current business can generate.

Good for them either way.

 

[TX_Brewing]

I've thought the same. They have good beer, but somehow they came on the scene and immediately you could find their beer everywhere in Houston. 5 years ago, St Arnolds was the only local craft you could find in grocery stores, then Karbach starts up and they were on the shelves everywhere. Now it's the go-to local for a lot of folks around here, and it's everywhere in Dallas, too. Besides being started by distributors, there had to be a significant investment. Without knowing the financials, I think it's safe to say it's paid off.

The figure I heard is that they had and/or raise 20 million to start karbach.