Northern Brewer Replacement

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GilaMinumBeer said:
Except that former management will have their payout and move on. Not buying from NB will effect them in zero ways. New management hasn't done anything and yet are being blamed by association only. So, yeah, right now it is on the customer.
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You're doing capitalism wrong. Customers owe NOTHING to the businesses.
 
https://www.homebrewery.com

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GilaMinumBeer said:
Except that former management will have their payout and move on. Not buying from NB will effect them in zero ways. New management hasn't done anything and yet are being blamed by association only. So, yeah, right now it is on the customer.
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Isn't "new management" InBev, the people who we actually have a problem with? Many of them living and paying taxes, if not in other countries, at least outside of the midwest?

I'm sure there are great people who have worked in InBev management for a long time, and bless them, I hope they live fulfilling lives, but I would rather not have it be with money that (indirectly) came from me. I doubt any existing InBev management will lose their jobs in the next 6 months because of this buyout or the sales in that time.

"New Management" (InBev) will likely be restructuring the personnel of the NB offices in Minnesota and Wisconsin, meaning middle management there will probably be let go regardless of sales.
 
Unfortunately, Midwest Supplies is/was my LHBS. I never much cared for the Northern Brewer brick-and-mortar store (and wasn't too thrilled with the merger), but I liked Midwest. But I never dealt with either of them online. But I've gotten virtually all of my hardware and equipment through Homebrewing.org, and have been really pleased with them. So they'll probably start getting more of my business. As for locally, I used to deal with Brew n Grow back before I switched over to Midwest (and back when I worked on that side of town). I'll have to go check them out again, at least for those short-notice emergency supply runs. I'm not yet convinced I'll be abandoning Midwest Supplies, but I'm not too happy with what's transpired.
 
http://homebrew4less.com/ Chambersburg PA, is my LHBS and he sells on line. Its a true one man operation with maybe a helper now and then.
If you want to help the "little guy" this is one to check out, he raised prices recently but I still think he's less than Northern Brewer and many others listed in this thread.
 
I have been using Adventures in Homebrewing and More Beer exclusively for years. AIH is always my first choice as their customer service is always top notch.
 
I started my brewing with NB equipment and extract kits. Since I started building my own recipes, I have not used them. I shop around for what I need and NB is always looked at but has not met with my needs.

If they have what I need at the best price, I will buy there. But, since it has not happened in the last 4 years.....

I will be watching to see what comes of this merger.
 
DemonsRun said:
If you have not seen it, a nice write up on the buyout from a homebrew shop owner (love2brew).

http://brulosophy.com/2016/10/20/th...e-acquisition-of-northern-brewer-by-ab-inbev/
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Nice article. Mostly because it does consider all perspectives.

We are all familiar with the disruptive approach. See it way too often on the beer shelves. Will certainly be good for homebrewers. Not so much for competitive shops.

Too soon to tell where this will go. I'll hold off lighting the torch and keep the pitchfork on the ground until the "boogeyman" shows his true colors.
 
Interesting article. I do wonder how any huge company can compete with selling grain online in any sizable quantity. Shipping is still a killer for 50 pound bags. Even at $35, the shipping would make it in line with most local sources.

Unless they open franchise locations, I don't see how disruptive they can be. Yes, they will be cheaper, just like NB was cheaper because they're bigger. But they have to open a store near me to really make it make sense.

I am pretty certain that they are not looking to see what grains people buy and then make a beer to sell commercially that will satisfy them. There is not a market for a commercial beer that is yeasty, under-attenuated, over-hopped, and oxidized like your homebrew (and by "your" I mean any homebrewer).

I suspect that home brewers could learn more from commercial brewers than the other way around. Just saying.
 
ericbw said:
I am pretty certain that they are not looking to see what grains people buy and then make a beer to sell commercially that will satisfy them.
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I believe that data is big incentive to AbInbev.

One of the many incentives to homebrewers is the ability to make what they can't get locally (usually because of macro). Knowing what kits, grain combos, and hop varieties sell the most could prove very useful to them for R&D on new products.
 
GilaMinumBeer said:
So, the solution to the AbInbev buyout of NB & MWB is to use someone else and potentially put 100's to "maybe" a 1000+ employees out of work?
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Yes. Americans complain about big business screwing the small guy. If AB-InBev isn't the poster-child for big business in the Beer industry, I don't know who is. It's time for American consumers to put up of shut up about the evils of corporate greed and "disruptive", some may say dishonest, business practices.
GilaMinumBeer said:
I believe that data is big incentive to AbInbev.

One of the many incentives to homebrewers is the ability to make what they can't get locally (usually because of macro). Knowing what kits, grain combos, and hop varieties sell the most could prove very useful to them for R&D on new products.
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Unlikely.
 
If you're actually going to look to change suppliers, unsubscribe from Northern Brewer's mailing list. Be the change you want to be in the world and believe in what Martin Niemöller experienced.


The purchase by AB-InBev has led me to shop elsewhere. The anti-craft and anti-small business leanings of AB-InBev in the past commercials as well as the attempts by AB-InBev to force small brewers off store shelves through incentives to distributors and stores is distasteful and I will not support those actions even in purchasing supplies from them or business associated with AB-InBev.

Americans, especially in this election, have complained bitterly about large corporations and dishonest business practices but have done little to affect change and do not modify their purchasing decisions.

I wish Northern Brewer luck in future business. I have been a long time customer and shared Northern Brewer catalogs with students when teaching Intro to Brewing courses for a College Community Education program and my decision was not arrived at as a knee jerk response to the buyout news.

Thank you,
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NB comment unsubscribe.JPG
 
I saw txbrewing.com mentioned here. I've purchased online orders for recipes a couple times and its been fast shipping and delivery (of course I live within an hour of the place). They are offering a 12.5% discount with coupon code NEVERAB through 10-21. I've been really impressed with their ingredient selection. Usually you get a discount card in the box to use next time which helps to offset the shipping. I think its a great place to shop.
 
mmb said:
Yes. Americans complain about big business screwing the small guy. If AB-InBev isn't the poster-child for big business in the Beer industry, I don't know who is. It's time for American consumers to put up of shut up about the evils of corporate greed and "disruptive", some may say dishonest, business practices.

Unlikely.
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Can't tell if this is sarcastic or not? Evils of corporate greed? That's what America is based on. How many people out there want a good paying jobs with benefits like paid time off, health insurance and a pension? You think you are going to get that working for a small "non greedy" business?
Corporate "greed" is part of the fabric of US politics and the economy.
Some things you just have to accept. If some Mega corporation makes gasoline, beer, pretzels, ammunition, personal lubricants or any of the other thousands of things people want, need and desire at a reasonable price, they are going to stay in business and make mega profits. If the product sucks or is too expensive they either find a better way or are finished.
RANT NOW OVER, I'm going out to check on my cider apple trees so I can avoid buying anything from greedy corporate cider producers/importers/retailers.
 
madscientist451 said:
Can't tell if this is sarcastic or not? Evils of corporate greed? That's what America is based on. How many people out there want a good paying jobs with benefits like paid time off, health insurance and a pension? You think you are going to get that working for a small "non greedy" business?
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Yes. Ask all your Walmart employees who are simply thriving while working for one of the most profitable, largest companies in America.

Oh, wait. They're encouraged by Walmart to sign up for food stamps. Corporations are for maximizing profits at almost any cost. Small business is about succeeding in the community they live and work in.
 
GilaMinumBeer said:
Nice article. Mostly because it does consider all perspectives.

We are all familiar with the disruptive approach. See it way too often on the beer shelves. Will certainly be good for homebrewers. Not so much for competitive shops.

Too soon to tell where this will go. I'll hold off lighting the torch and keep the pitchfork on the ground until the "boogeyman" shows his true colors.
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That's not how it will work.

If they cut deep into margins and price out other retailers, it will be a slow bleed. Start with maybe 10% of assortment and keep scaling. There will not be enough buzz to make any effect in the industry if they execute this strategy.

It's my most executed guess This is not a data play, This is purchase the largest homebrewing company, use their immense buying power & capital to lower prices, price out other retailers, start whole distribution. Then once they have even more dominant market share and a distribution network in place, raise prices.

It's what happens, very common MO. Standard Oil did it and that's why finally broke up their monopoly. Undercut prices in certain areas to kill business, then swoop up assets and raise prices.
 
mmb said:
Yes. Americans complain about big business screwing the small guy.
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Except most American's vote with their wallets -- aka, how much something costs...

There's hundreds of threads alone on HBT about "where can I get the cheapest bulk grain shipped to my house??"

Unfortunately, the small guy is having to get by on less and less, so they are more inclined to look for cheaper products. It's a race to the bottom....and we're almost there! :(
 
iioan said:
That's not how it will work.

If they cut deep into margins and price out other retailers, it will be a slow bleed. Start with maybe 10% of assortment and keep scaling. There will not be enough buzz to make any effect in the industry if they execute this strategy.

It's my most executed guess This is not a data play, This is purchase the largest homebrewing company, use their immense buying power & capital to lower prices, price out other retailers, start whole distribution. Then once they have even more dominant market share and a distribution network in place, raise prices.

It's what happens, very common MO. Standard Oil did it and that's why finally broke up their monopoly. Undercut prices in certain areas to kill business, then swoop up assets and raise prices.
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Same thing I said. I just said it in fewer words.

Good for homebrewers. Bad for competitors.

I also did not suggest that the "data play" was the only incentive. Just a big one.
 
www.BrewMagic.com - Made in the USA, high quality, sanitary, commercial grade supplies for all levels of brewing, from home brewing to those ready for the next level. Check us out. Free freight on systems through the end of the month. Cheers.


dustinthompson85 said:
So looking for opinions in whi will be your online supplier for those no longer using NB. Some people are not lucky enough to have a local shop to visit. Would love to know who the community frequents that is trusted / reliable. Thanks!
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iioan said:
That's not how it will work.

If they cut deep into margins and price out other retailers, it will be a slow bleed. Start with maybe 10% of assortment and keep scaling. There will not be enough buzz to make any effect in the industry if they execute this strategy.

It's my most executed guess This is not a data play, This is purchase the largest homebrewing company, use their immense buying power & capital to lower prices, price out other retailers, start whole distribution. Then once they have even more dominant market share and a distribution network in place, raise prices.

It's what happens, very common MO. Standard Oil did it and that's why finally broke up their monopoly. Undercut prices in certain areas to kill business, then swoop up assets and raise prices.
Click to expand...

I think people will be surprised at how hard it will be for InBev and NB to actually realize the efficiencies of "buying power" in this deal. And even if they do lower the price to kill competition and then raise price as they become more monopolistic...that price increase will create a disruption/vacuum which will be filled by some savvy entrepreneur looking to expand their on-line home brew presence.

I think "water will find it's own level" here and the market will dictate the price points, not InBev.
 
Murphys_Law said:
I think people will be surprised at how hard it will be for InBev and NB to actually realize the efficiencies of "buying power" in this deal. And even if they do lower the price to kill competition and then raise price as they become more monopolistic...that price increase will create a disruption/vacuum which will be filled by some savvy entrepreneur looking to expand their on-line home brew presence.

I think "water will find it's own level" here and the market will dictate the price points, not InBev.
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AB already has the purchasing power to lower prices on Malt and hops, that's the competitive advantage for craft breweries to gain access to the AB supply chain. Adding Northern Brewer to that is fairly easy, just drop off malt to NB instead of "insert gobbled up craft brewer here."

It also gives AB a toe into the market of supplying HB shops to maybe threaten LD Carlson and some of the smaller malt suppliers like BSG Handcraft. Making Northern Brewer into more than an online retailer but a distributor as well. AB already has a distribution market in place, one of the best around that knows how to get the lowest to the retailer door.
 
mmb said:
AB already has the purchasing power to lower prices on Malt and hops, that's the competitive advantage for craft breweries to gain access to the AB supply chain. Adding Northern Brewer to that is fairly easy, just drop off malt to NB instead of "insert gobbled up craft brewer here."

It also gives AB a toe into the market of supplying HB shops to maybe threaten LD Carlson and some of the smaller malt suppliers like BSG Handcraft. Making Northern Brewer into more than an online retailer but a distributor as well. AB already has a distribution market in place, one of the best around that knows how to get the lowest to the retailer door.
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And "lowest to the door" can be good for consumers, no? I guess my post was addressing the second half of the equation people seem afraid of - lower price, put people our business, raise price and kill craft and home brew.

I don't foresee that happening. Sure, they are going for a market grab (disruption) but to have market share you need a robust market worth fighting for. I don't view this as a move to kill a market (competitors maybe) but to leverage and grow the market (i.e. revenues and profits).
 
I live in Ohio so Label Peelers is often a place I'll order from when they run 30%+ sales, which is frequently. Both my LHBS and Label Peelers are supplied by LD Carlson so I'll also use MoreBeer which has 2 day, free shipping for orders over $59.
 
Murphys_Law said:
And "lowest to the door" can be good for consumers, no? I guess my post was addressing the second half of the equation people seem afraid of - lower price, put people our business, raise price and kill craft and home brew.

I don't foresee that happening. Sure, they are going for a market grab (disruption) but to have market share you need a robust market worth fighting for. I don't view this as a move to kill a market (competitors maybe) but to leverage and grow the market (i.e. revenues and profits).
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The fewer choices available to consumers the more profit there is to be had. Less overhead, less stocking of "loser" products, less variability in the supply line, less products to stock. Time will tell, of course, but the fewer SKUs you have the more you profit, if the consumer is buying that product.

I don't believe AB wants to kill craft and homebrew. I do believe they want to see a contraction of choice to leverage their ability to provide low cost SKUs. Why have 14 types of 2 row when AB 2 Row is $10 a 50lb sack? As the other malts have less demand, price increases to compensate for less turnover as per item production cost increases. It's standard micro economics.

So no, lowest price isn't always best for consumers, short or long term.
 
mmb said:
It also gives AB a toe into the market of supplying HB shops to maybe threaten LD Carlson and some of the smaller malt suppliers like BSG Handcraft.
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This makes the most sense to me. Being the end retailer seems too "small time" for this conglomerate. Psuedo-monopolizing the distribution chain of raw material could be the real "big picture" here.
 
mmb said:
I don't believe AB wants to kill craft and homebrew.
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No, this was probably a decision by some bean counter acquisitions manager to "diversify" their portfolio. They want to profit from homebrew, not kill it. Just hedging their bets.
 
I'm sure they won't be turning over your purchase records to government authorities. I never come close to 80 gallons per year, but people about to turn pro might.
 

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