Nice article on how AB InBev is trying to destroy good beer for higher profits

[Krovitz]

They got Franziskaner?!? Nooooo!

 

[motobrewer]

Third - I said I googled It. Its made at AB in Baldwinsville, NY.

This is true. AB made a big deal about how "goose island will not be brewed in st. louis!!"

.....it took them all of 6 months to move most of the core lineup production to NY.

 

[Xpertskir]

Did anyone else catch the ' Imperial Pale Ale'? Is this a typo for India Pale Ale, or is this an actual style?

Actually 312 is a wit....


Inbev is clearly not taking into account that beer purchases are for most people(for craft and BMC people alike) an emotional decision. With the BMC crowd its a tradition of drinking it, and all the things that happened while they enjoyed a beer. With us craft people its more about singular experiences we had while enjoying a specific beer(IE a visit to a brewery and drinking the stout on cask, or sharing one of those IPAs with an old friend, a particularly memorable meal, or that one beer that converted you to "real beer" ect) I'm sure for some of the connoisseur types this emotional connection may be hard to admit, as it undermines your mechanical tasting ability.

You can run the business as efficiently as possible but if you destroy the mystique of the beer that gets people to open their wallets it doesn't really matter.

I think AB always understood this and their marketing is proof. The bud Clydesdale's, Bush: Head for the mountains, even the general tone of their commercials. They helped solicit an emotional response and memory about the last time you enjoyed one of their beers and who you enjoyed it with.


Anyways, I think this is bad for the guys at the top and the middle. The small producers, who lets face it, most of us buy the majority of our beer from will be unaffected. The breweries that should be most concerned about this are the Sierra Nevada's, Sam Adam's, Rogues, and New Beligiums of the world.

 

[Nightshade]

I agree with Xpertskir, AB understood tradition and even if I am not a fan of their style of beer I do respect holding traditions and recipes on high as a very important part of brewing. Degrading your product and ingredients for the sake of profit will be the undoing of the company and the emergence of a budding "crafter" to fill the space left.

The consumer notices these things, especially if they have been brand loyal for a number of years, just look at what happened with Coca Cola when they tried to change the formula. They ended up brewing Coke Classic and found the new formula wassn't selling compared to the "Classic" formula so they mostly abandoned the new formula and if I remember right it was a very costly mistake for Coca Cola as well.

 

[Mongrel]

The consumer notices these things, especially if they have been brand loyal for a number of years, just look at what happened with Coca Cola when they tried to change the formula. They ended up brewing Coke Classic and found the new formula wassn't selling compared to the "Classic" formula so they mostly abandoned the new formula and if I remember right it was a very costly mistake for Coca Cola as well.

Actually, the whole New Coke debacle turned out to be one of the best financial moves Coke ever did, but they were very lucky with that one.

 

[cheezydemon3]

Actually, the whole New Coke debacle turned out to be one of the best financial moves Coke ever did, but they were very lucky with that one.

That was absolutely fascinating.

Completely unintended.

 

[Wynne-R]

http://www.beerconnoisseur.com/the-fall-of-schlitz

This whole sordid affair reminds me of what happened to Schlitz. Here’s a link for people too young to remember. The kicker is that AB bought the old Schlitz brewery in Baldwinsville NY.

The scary part is that it took 20 years of cutting corners to really sink the brand.

 

[dbrewski]

I have to say I read the article and agree with all of you in principle that cheapening a recipe for profit is wrong, especially if you are going to continue to charge the same $$$ for it...but here's my experience.

I used to drink at Goose Island in the late 80's, the first brewpub. I have heard the news of them being purchased. Last month, I was out in eastern PA and at a hotel when I asked them what they had on tap. They reeled off a few things (pretty good selection actually) and one of them was a Goose Island IPA. I said I'd take one of those. It was delicious, very good, and like all of us I've had quite a few craft IPA's. It tasted homebrew fresh, not months old. I told the bartender "wow this tastes fresh!" and he said "yeah, we just tapped that keg". But I didn't realize at the time it probably wasn't brewed in Chicago.

Regardless, it was damn good beer. In fact, as good or better than any I'd had at Goose Island. Firsthand experience that all InBev beer does not taste like sh*t.

 

[EllisTX]

Maybe it's because I live in the roughneck/hillbilly armpit of the world, but I don't think AbInbev is going anywhere. The people who drink the mass produced light lagers can't tell the difference between broke or whole rice. Most of the country drinks BMC to socially drink and to get drunk. The price is right and the commercials make it look awesome.

Even the guy in the article who thought his Becks tasted more bland probably just bought an older six pack and it didn't taste just right or he was simply full of crap. I'd bet that most of the complaints on his BookFace page are from people who are emotionally hurt by their brand being brewed by someone or someplace different, and not because the beer tastes different. Find me a BMC drinker that sticks his nose in his glass as soon as he pours his beer then sips it and lets it coat his tongue before he swallows. Doesn't happen.

Sure the article seems awful and evil. It's nothing more than capitalism at its finest.

 

[Xpertskir]

Maybe it's because I live in the roughneck/hillbilly armpit of the world, but I don't think AbInbev is going anywhere. The people who drink the mass produced light lagers can't tell the difference between broke or whole rice. Most of the country drinks BMC to socially drink and to get drunk. The price is right and the commercials make it look awesome.

Even the guy in the article who thought his Becks tasted more bland probably just bought an older six pack and it didn't taste just right or he was simply full of crap. I'd bet that most of the complaints on his BookFace page are from people who are emotionally hurt by their brand being brewed by someone or someplace different, and not because the beer tastes different. Find me a BMC drinker that sticks his nose in his glass as soon as he pours his beer then sips it and lets it coat his tongue before he swallows. Doesn't happen.

Sure the article seems awful and evil. It's nothing more than capitalism at its finest.

I'll one up you on the becks guy. I'll bet the reason it tasted "bad" is because since it was brewed in the US, it didnt get skunked on the trip over here from Europe. The taste he is missing is skunk.

 

[fosgate]

Most complete list I could find courtesy of Wikipedia.
The brands

Absolut Cut (Sweden)
Alexander Keith's (Canada)
Keith's White
Keith's Dark
Keith's Red
Keith's Light
Keith's Regular
Andes (Argentina)
Antarctica (Brazil)
Apatinska pivara (Serbia)
Jelen pivo
Pils Light
Aqua Fratelli Vita (Brazil)
AstikA (Bulgaria)
Baisha (China)
BagBier (Russia)
BagBier
BagBier Classicheskoye
BagBier Krepkoye
BagBier Nashe
Bass (United Kingdom)
Baviera (Paraguay)
Beck's (Germany)
Beck's Dark
Beck's Oktoberfest
Beck's Premier Light
Belle-Vue (Belgium)
Belle-Vue Kriek
Belle-Vue Kriek Extra
Belle-Vue Framboise
Belle-Vue Gueuze
Bergenbier (Romania)
Blue Star (Canada)
Boddingtons (United Kingdom)
Bohemia (Brazil)
Bohemia Pilsen
Bohemia Escura
Bohemia Weiss
Bohemia Royal Ale
Bohemia Confraria
Bohemia Oaken
Borsodi (Hungary)
Borsodi Bivaly
Borsodi Polo
Borsodi Sör
Borostyán (Hungary)
Boomerang (France)
Brahma (Global)
Breda (The Channel Islands) Still Available
Budweiser
Budweiser Chelada
Bud Dry
Bud Extra
Bud Ice
Bud Ice Light
Budweiser Select
Budweiser Select 55
Bud Light
Bud Light Chelada
Bud Light Lime
Busch
Busch Light
Cafri (South Korea)
Caracu (Brazil)
Cass (South Korea)
Cass Fresh
Cass Light
Cass Red
Cass Lemon
Castlemaine XXXX (owned by Castlemaine Perkins Pty Ltd.)
Chernihivske (Ukraine)
Chernihivske Svitle
Chernihivske Premium
Chernihivske Mitsne
Chernihivske Temne
Chernihivske Bile
Chernihivske Bila Nich
Chernihivske Bagryane
Chernihivske Fitness+
Diebels (Germany)
Diekirch (Luxembourg)
Diekirch Grand Cru
Diekirch Grande Réserve
Diekirch Exclusive
Dimix (Germany)
Dommelsch (Netherlands)
Dommelsch Pilsener
Dommelsch Ice
Dommelsch Dominator
Double Deer (China)
E-Generation
Premium Light
Dry Beer
Dutch Gold (Netherlands)
Eiken Artois
Franziskaner Weissbier (Germany)
Franziskaner Hefe-Weissbier
Franziskaner Hefe-Weissbier Alkoholfrei
Franziskaner Hefe-Weissbier Dunkel
Franziskaner Hefe-Weissbier Leicht
Franziskaner Weissbier Kristallklar
Gilde Ratskeller (Germany)
Goose Island Brewery
Guaraná Antarctica (Brazil)
Guaraná Brahma (Brazil)
GuoGuang (China)
Haake-Beck (Germany)
Hasseröder (Germany)
Harbin (China)
Hertog Jan (Netherlands)
Primator
Oud Bruin
Grand Prestige
Tripel
Dubbel
Winterbier
Bockbier
Meibock
Hoegaarden (Belgium)
Hop Hound Amber Wheat
Hougaerdse Das (Belgium)
Jinlin (China)
Jinlongquan (China)
Draft
Refreshing
Julius (Belgium)
Jupiler (Belgium)
Jupiler N.A.
Jupiler Blue
Jupiler Tauro
KK (China)
Kamenitza (Bulgaria)
Klinskoye (Russia)
Klinskoye Svetloye
Klinskoye Zolotoye
Klinskoye Lux
Klinskoye Redkoye
Klinskoye Arriva
Klinskoye Samurai
Kokanee (Canada)
Kokanee
Kokanee Gold
Kokanee Light
Kokanee Frost
La Bécasse (France)
La Bécasse Kriek
La Bécasse Raspberry
La Bécasse Gueuze
Labatt Family (Canada) Acquired in 1995
Labatt Blue
Labatt Blue Light
Labatt .5
Labatt Lite
Labatt 50
John Labatt Classic
Labatt Genuine
Labatt Extra Dry Lager
Labatt Wildcat
Labatt Ice
Labatt Sterling
Lakeport Family (Canada) Acquired in 2007
Lakeport Pilsener
Lakeport Honey Lager
Lakeport Strong
Lakeport Ice
Lakeport Ale
Lakeport Light
Lakeport Red
Steeler
Brava
Wee Willy
Leffe (Belgium)
Leffe Brown
Leffe Blonde
Leffe Ruby
Leffe Printemps
Liber (Brazil)
Löwenbräu (Germany)
Löwenbräu Alkoholfrei
Löwenbräu Dunkel
Löwenbräu Löwen Weisse
Löwenbräu Original
Löwenbräu Oktoberfestbier
Löwenbräu Premium Pils
Löwenbräu Radler
Löwenbräu Schwarze Weisse
Löwenbräu Triumphator
Löwenbräu Urtyp
Marathon (Brazil)
Michelob
Michelob Light
Michelob AmberBock
Michelob Dunkel Weisse
Michelob Honey Lager
Michelob Honey Wheat
Michelob Irish Red Ale
Michelob Marzen
Michelob Pale Ale
Michelob Porter
Michelob Ultra
Michelob Ultra Amber
Michelob Ultra Lime Cactus
Michelob Ultra Pomegranate Raspberry
Michelob Ultra Tuscan Orange Grapefruit
Michelob Golden Draft
Michelob Golden Draft Light
Mousel (Luxembourg)
Natural Light
Pivara Trebjesa (Montenegro)
Nik Cool
Nik Gold
Nikšicko pivo
Nikšicko tamno
Noroc (Romania)
Oland Export Ale (Canada)
OB (South Korea)
Oranjeboom (Netherlands)
Oranjeboom Premium Pilsener
Oranjeboom Oud Bruin
Oranjeboom Premish Malt
Original (Brasil)
Peeterman Artois
Permskoye Gubernskoye (Russia)
Permskoye Gubernskoye Svetloye
Paceña (Bolivia)
Paceña Pico de Oro
Paceña Pico de Plata
Huari
Bock
Ducal
Piedboeuf (Belgium)
Piedboeuf Blond
Piedboeuf Brown
Piedboeuf Triple
Pilsen (Uruguay)
Quilmes (Argentina)
Red Bridge
Red Shiliang (China)
Rifey (Russia)
Rohan (Ukraine)
Rohan Lehke
Rohan Tradytsiyne
Rohan Monastyrske Temne
Rohan Veselyi Monach
Rohan Bezalkoholne
Rohan Kampai
Rohan Arriva
Rolling Rock
Rock Light
Safir (Belgium)
Santai (China)
Schooner Lager (Canada)
Sedrin (China)
Shock Top Beligian White
Sibirskaya Korona (Siberian Crown)(Russia)
Skol (Brazil)
Spaten (Germany)
Spaten Alkoholfrei
Spaten Diät-Pils
Spaten Münchner Hell
Spaten Oktoberfestbier
Spaten Pils
St. Pauli Girl (Germany)
St. Pauli Girl Lager
St. Pauli Girl Special Dark
St. Pauli Girl Non-Alcoholic
Staropramen (Czech Republic)
Stella Artois (Global)
Artois Bock
Peeterman Artois
Stone Mill Pale Ale
Sukita (Brazil)
Taller (Ukraine)
Tinkov Russian Lager (Russia)
Tolstiak (Russia)
Tolstiak Dobroye
Tolstiak Svetloye
Tolstiak Zaboristoye
Tolstiak Krepkoye
Tolstiak Grechisnoye
Vieux Temps (Belgium)
Wild Blue
Wolters (Germany)
Whitbread (United Kingdom) (purchased from Whitbread Group plc in 2001)
Yali (China)
Yantar (Ukraine)
Zagrebacka pivovara (Croatia)
Božicno Pivo
Ožujsko Pivo
Ožujsko Cool
Ožujsko Izzy
Ožujsko Strong
Fresssh by Ožujsko
Tomislav
ZiegenBock
Zizhulin (China)
Zhujiang (China)
Zenda (Perú)

 

[Gameface]

So not too many, really.

 

[Mongrel]

Paceña (Bolivia)

This one makes me sad, but I'm still going to be drinking lots of it in a couple weeks.

 

[ktblunden]

Hmm, didn't know they own Spaten and Leffe also. I'll just avoid those from now on. On general principle I choose not to support this company with my money. There are plenty of other brands out there I'd rather support.

 

[kombat]

I don't buy their beer, but I own their stock (seriously).

 

[cheezydemon3]

I don't buy their beer, but I own their stock (seriously).

Invest with your mind, not your heart. I salute you.

I believe them to be on a bubble, however.

 

[Trokair]

I don't agree with their decisions or their seeming lack of respect for tradition. That said I believe that free market is already changing this. A few years ago I could see 5 different brands of beer in an average grocery store. Just off of the top of my head I'm sure that there at least 20 different brands of beer in the nearest store, 10 of which are rotating choices. Many of my friends took trips to local brewerys as an event this year where previously I don't think that really registered. Mr. Beer kits seem to be running rampant and I can count at least 5 people that I have talked to in the past few months that are looking to brew their own.

If you cut corners and make a boring product, people change their habits. Whether conciously or unconciously I see more and more people turning away from beers that are made cheaper.

 

[b-boy]

Mr. Beer kits seem to be running rampant and I can count at least 5 people that I have talked to in the past few months that are looking to brew their own.

I was in a Rite Aid Pharmacy yesterday. They had a Mr Beer display right in the middle of the store. Complete kits and extra ingredients.

 

[b-boy]

Most complete list I could find courtesy of Wikipedia.
The brands

Absolut Cut (Sweden)
Alexander Keith's (Canada)
Keith's White
Keith's Dark
Keith's Red
Keith's Light
Keith's Regular
......

Yikes - After seeing this list I'm wondering...Does anyone other than AB InBev even make beer in Germany anymore?

 

[CodyA]

Yikes... Guess we can just hope that we don't move backwards and the lobbyists get the law makers to put home brewing in the same class as home distilling... ILLEGAL. At least we still have our local micro breweries and Sam Adams when we run out of home brew... At least for now.

 

[Beerrific]

The brewers are not the ones making the decisions, career executives with no background in the actual brewing process are.

This is exactly what is going on. Go look at InBev's corporate "Who's Who" (http://www.ab-inbev.com/go/about_abinbev/management_structure/who_is_who.cfm) and find one person there that has brewing education. The closest you will find is the Chief Supply Officer.


It is not like this makes me want to boycott InBev. They are a company trying to make money. So what? But, I will not simply buy their product due to some loyalty or nostalgia. If it tastes good and continues to taste good, I will buy it. If not, not. In capitalism, that is the role and the right of the consumer. If people stop buying, you fix the problem or die.

 

[cheezydemon3]

Oh man!!!!!!


Inbev is like the empire!!

Glad to be part of the Rebel Alliance, and I am absolutely THRILLED to have something much more vile and disgusting than AB (the company, not the beer) to actively and passionately HATE..

 

[Skelator]

Same thing for Magic Hat. Their beer has become less than what it was... and I can only imagine what will happen now considering NAB was sold.

 

[Beef_Supreme]

Same thing for Magic Hat. Their beer has become less than what it was... and I can only imagine what will happen now considering NAB was sold.

Magic Hat to me was always like the red-headed stepchild of micro brews.

 

[Darwin18]

What does it take to make an anti-trust case these days?

 

[RmikeVT]

Which part of the Constitution does this?

If you look back to the late 1800s and early 1900's good ole' America was built on Monopolies and squeezing every ounce of productivity out of as little workforce as possible in often very hazardous conditions. Anti-Trust laws were put in place later down the road to prevent these types of monopolies as they are inefficient on a Macro scale and create a large dead weight loss to society. We are seeing this with InBev. And this is more of an Oligopoly rather than a monopoly, but just through conversations posted on this board we can see the loss to society from an economic standpoint. InBev, MillerCoors, etc are able to make a lower costing product, sell at higher prices, and employ less people. This is to the benefit of shareholders, but overall loss to society. Monopolies/Oligopolies are very vulnerable to diversification, as they are typically very good at providing one type of product. When demand for other products and complimentary goods grows they suffer losses. You can see this in the article, with demand for InBev products dropping. Rational people will not continue to pay premium prices for a sub-premium product. In fact we can thank InBev (and our local gov't, in the form of alcohol tax) for the craft beer explosion and homebrew explosion.

 

[Homercidal]

Brewing the Goose Island mainstays elsewhere allows for them to brew more of the special edition beers. Picked up a 4-pack of the Bourbon County Stout 2 weeks ago. Never had a chance of trying it before this year.

Not bad, but lots less roasty than I expected. 15% alcohol.

I don't care much what happens to InBev etc. I normally buy Michigan made craft beer and I can't imagine every one of them will be swept up by the big guys. Probably Bells though. I fully expect Larry Bell to sell out at some point when he's had enough of the BS you have to go through to make and sell beer nationally.

 

[AMonkey]

What does it take to make an anti-trust case these days?

Got this off a website:

Sherman Act doesn't regulate how big a company may get unless company continues to buy up other companies in such a way as to:

substantially lessen competition; and
tend to create a monopoly.

With as many micros as there are now with more popping up everyday they will never be considered a monoply, and there will always be competition. Unless the small breweries keep selling to the point there isn't much competition.

 

[b-boy]

Got this off a website:

Sherman Act doesn't regulate how big a company may get unless company continues to buy up other companies in such a way as to:

substantially lessen competition; and
tend to create a monopoly.

With as many micros as there are now with more popping up everyday they will never be considered a monoply, and there will always be competition. Unless the small breweries keep selling to the point there isn't much competition.

This is true. A good example of this is Microsoft. When Apple was struggling in the 90's Microsoft loaned them $150 Million to keep them afloat. If Apple went under Microsoft would be the only game in town and a huge target for anti-trust legislators. It was a good plan at the time, but they probably regret it now.

InBev will leave enough competitors around to keep them out of trouble with the Anti-trust people.

 

[ktblunden]

Got this off a website:

Sherman Act doesn't regulate how big a company may get unless company continues to buy up other companies in such a way as to:

substantially lessen competition; and
tend to create a monopoly.

With as many micros as there are now with more popping up everyday they will never be considered a monoply, and there will always be competition. Unless the small breweries keep selling to the point there isn't much competition.

"Substantially" is the operative word there. If craft beers represent 5% of the market and AB-InBev is on a path to control the other 95%, I think you could make an argument that they will have substantially lessened competition.