PLEASE let the Northern Brewer buy-out be a hoax!

[ericbw]

It doesn't matter about who owns it. Home Brewers like to think they are independent and have indie cred. Bud Light is the antithesis of that. Thus, anything associated with it is bad.

Note how beer tastes better when it's made by a small independent brewery. Preferably by a guy with a beard. If a big company buys them out, the beer tastes worse.

Meaning: it didn't matter that he sold out to an investment firm. It only matters that eventually there is a connection to Bud Light. None of the angst is actually applicable.

 

[shellsbells]

It doesn't matter about who owns it. Home Brewers like to think they are independent and have indie cred. Bud Light is the antithesis of that. Thus, anything associated with it is bad.

Note how beer tastes better when it's made by a small independent brewery. Preferably by a guy with a beard. If a big company buys them out, the beer tastes worse.

Meaning: it didn't matter that he sold out to an investment firm. It only matters that eventually there is a connection to Bud Light. None of the angst is actually applicable.

Sometimes I really wish this site had a dislike button

 

[Murphys_Law]

Note how beer tastes better when it's made by a small independent brewery. Preferably by a guy with a beard. If a big company buys them out, the beer tastes worse.

This raises a question: does the indie brewer have to shave his beard after a buy out?

 

[ericbw]

Sometimes I really wish this site had a dislike button

Me, too!!

 

[bob1852]

Huh? lol

I do have a question, after reading every post in this thread over the last few days. Can someone please try to explain exactly what happened in terms of ownership, etc.

Terms were undisclosed.

So, of course we immediately start grabbing torches/pitchforks and throwing around terms like "sell-out", etc.

 

[jammin]

Terms were undisclosed.

So, of course we immediately start grabbing torches/pitchforks and throwing around terms like "sell-out", etc.

Is it not the textbook, pop-culture definition of sell-out though?

 

[UncleLankyFrank]

Woke up to a new story in the Growler Magazine, who broke the Northern Brewer acquisition story locally and was the credited source for many of the national news outlets who are now all over it:

Indeed Brewing pulls homebrew kits from Northern Brewer’s shelves



Indeed Brewing is a young Minnesota company and one of the most popular local craft brands. This is an unexpected but satisfying response from the industry. I had not thought about the ramifications of InBev having access to craft beer clones, but this seems like a logical reaction. It will be interesting to see if others follow suit.

 

[WaltStarr]

Woke up to a new story in the Growler Magazine, who broke the Northern Brewer acquisition story locally and was the credited source for many of the national news outlets who are now all over it:

Indeed Brewing pulls homebrew kits from Northern Brewer’s shelves



Indeed Brewing is a young Minnesota company and one of the most popular local craft brands. This is an unexpected but satisfying response from the industry. I had not thought about the ramifications of InBev having access to craft beer clones, but this seems like a logical reaction. It will be interesting to see if others follow suit.

I love that they put up the recipes for the kits.

I plan on Midnight Ryder being my next batch. I love Black IPAs.

 

[bob1852]

Is it not the textbook, pop-culture definition of sell-out though?

What if the terms were a pure equity deal, with NB went to Zx and said "if I had 5 million in cash, we could do 'xyz'', and Zx said 'prefect, we'll give you 5 million for 10% equity in your company with repayment terms of 'abc'."

Not all business deals are about complete buy outs, shifting business practices, etc....

Sometimes it's just that a venture company has cash to invest and a business needs that influx of cash for growth.

 

[jammin]

What if the terms were a pure equity deal, with NB went to Zx and said "if I had 5 million in cash, we could do 'xyz'', and Zx said 'prefect, we'll give you 5 million for 10% equity in your company with repayment terms of 'abc'."

Not all business deals are about complete buy outs, shifting business practices, etc....

Sometimes it's just that a venture company has cash to invest and a business needs that influx of cash for growth.

Occam's razor bro haha

Seriously though - you can what if anything to death but it's quite obvious at surface glance this appears to be a "sell-out". I personally could care less and would probably do the same. I'll take cash over "street cred" any day.

 

[WaltStarr]

Occam's razor bro haha

Seriously though - you can what if anything to death but it's quite obvious at surface glance this appears to be a "sell-out". I personally could care less and would probably do the same. I'll take cash over "street cred" any day.

If I had been in Chris Farley's shoes, I would have definitely sold.

I wasn't in his shoes nor will I ever be in a similar situation, so I am free to choose with whom I will do business.

 

[PADave]

If I had been in Chris Farley's shoes, I would have definitely sold.

I wasn't in his shoes nor will I ever be in a similar situation, so I am free to choose with whom I will do business.

I would have sold too. But who they sold to is a company that as a consumer I choose to not do business with, ever.

 

[ericbw]

Woke up to a new story in the Growler Magazine, who broke the Northern Brewer acquisition story locally and was the credited source for many of the national news outlets who are now all over it:

Indeed Brewing pulls homebrew kits from Northern Brewer’s shelves



Indeed Brewing is a young Minnesota company and one of the most popular local craft brands. This is an unexpected but satisfying response from the industry. I had not thought about the ramifications of InBev having access to craft beer clones, but this seems like a logical reaction. It will be interesting to see if others follow suit.

Is this the brewery that posted their recipes? Now the Dark Side has access to their recipes.

From a home brew perspective, recipes are hard to figure out. Is that true from a commercial perspective? Do big breweries wonder how to make a Black IPA?

 

[day_trippr]

[...]Do big breweries wonder how to make a Black IPA?

Given the plethora of vetted recipes available on the Interwebs, should anyone actually wonder any more about pretty much any beer style?

Aside from the epic scaling process big breweries must account for, along with whatever water chemistry they have to deal with, I doubt they really have much of a leg up on any reasonably accomplished home brewer these days...

Cheers!

 

[Yeastieboy]

Who cares.

 

[UncleLankyFrank]

Soon, driverless trucks will offload cheap homebrew ingredients directly into your brew system, which them brews it to the overlord's exacting specifications. All will be integrated.

OK, this didn't creep me out until I got that nagging feeling and YouTubed This is How a Driverless Truck Works, from Bloomberg, yo... so you know it's legit.

 

[ericbw]

Given the plethora of vetted recipes available on the Interwebs, should anyone actually wonder any more about pretty much any beer style?



Aside from the epic scaling process big breweries must account for, along with whatever water chemistry they have to deal with, I doubt they really have much of a leg up on any reasonably accomplished home brewer these days...



Cheers!

Right, i just mean that if I wanted to make a black IPA, I would have to do some research. Or I might have to ask some questions. A brewery with multiple accomplished Brewers would have that knowledge in house.

 

[UncleLankyFrank]

Was this the final gauntlet thrown in the Budweiser/Craft Brewing pissing contest?

Craft Beer vs. Budweiser: How Small Brewers Are Winning Back the Neighborhood Mar 02, 2016 article by A.C. Shilton in Yes! Magazine


The accompanying illustration by Jennifer Luxton is equally inflammatory and hilarious. You know if Budweiser was a drunk dude at a bar, this would have drawn the first punch!

 

[Paps]

Shouldn't the guy holding the chair be wearing a flannel shirt instead?

 

[ericbw]

Shouldn't the guy holding the chair be wearing a flannel shirt instead?

Yes, but he does have a man-bun, so it is close.

 

[ericbw]

I missed something in that article. In the beginning, she says that Sierra Nevada crossed Asheville off its list of places to put a brewery, because it would be too close to other craft brewers. But then there is a picture that says they opened a location in downtown Asheville.

Do they have a brewery in Asheville? Is it close to other craft brewers? It just seemed like a strange disconnect it the article.

 

[Brewenstein]

From the article:

"Likewise, Sierra Nevada did end up expanding to Asheville, but only after the company met with the local brewers association and all the members voted to welcome it to the neighborhood. Now, Sierra Nevada brings trainloads of malt and grain to Asheville and allows smaller competitors to buy from it. Before, the local brewers had to buy grain in bags (a trainload of grain is more than the average small brewer can afford). Now they can buy at wholesale prices. Grossman said savings are often as much as 50 percent."

 

[ericbw]

Ok, thanks!

It seems like a larger company is helpful because they can save money and work together. As long as they aren't too big.

A large small company.

 

[bob1852]

Ok, thanks!

It seems like a larger company is helpful because they can save money and work together. As long as they aren't too big.

A large small company.

Or just do what the Brewer's Association has done many times - change the definition of "big".

 

[soccerdad]

I think somone chaged the definition of trainload as well

 

[Yeastieboy]

I have been quite enjoying not receiving all those NB emails since they forced me to unsubscribe and stop ordering from them.

 

[dallasdb]

I have been quite enjoying not receiving all those NB emails since they forced me to unsubscribe and stop ordering from them.

 

[WaltStarr]

I have been quite enjoying not receiving all those NB emails since they forced me to unsubscribe and stop ordering from them.

I don't miss 'em even a tiny bit. My options are nearly boundless, so it's pretty easy to never purchase a thing from AB InBev.

 

[dallasdb]

it's pretty easy to never purchase a thing from AB InBev.

Until you get a craving for an ice cold Budweiser

 

[WaltStarr]

Until you get a craving for an ice cold Budweiser

 

[dallasdb]

Walt.... you don't like the taste of freedom?

Budweiser = 'Murica

 

[Lefou]

OK, this didn't creep me out until I got that nagging feeling and YouTubed This is How a Driverless Truck Works, from Bloomberg, yo... so you know it's legit.

You know, this leads into something else that feeds into the undercurrent of anger against companies. The integration of technology for a better profit margin displaces people and the owners/ managers of such companies give off the impression their people can be expendable for a better bottom line.
This is exactly why big financially-driven corps get the hate. Some of them deserve it.

The Budweiser "America" concept? To me, it's a big marketing campaign that twists things and irritates me. Did they really buy America?
No, purchasing someone else's work or buying intellectual rights isn't the real meaning of creative innovation. People take pride in creating personalized things and I can see where the angst comes from.

 

[dallasdb]

For you WaltStarr!!!



I know it's a crappy photo but... 'MURICA :rockin:

 

[day_trippr]

I know it's a crappy photo but...

Seems appropriate...

Cheers!

 

[UncleLankyFrank]

From the article:

"Likewise, Sierra Nevada did end up expanding... [snip] ...and all the members voted to welcome it..."

First of all, respect. Unlike certain Belio-Brazil-Afrikkans businesses, Sierra Nevada want to be where they are wanted.

[side note] A representative from a large local brewery recently told me of an industry hob-knob event he attended. One of the the notables at the table was a corporate mucky-muck from SouthAfriakanBrewing. He said the guy was rather cavalier in his description of strong arm tactics SAB would pull on small businesses. Seems like InBev has absorbed this chromosome, as they have become increasingly predatory and invasive since absorbing SAB/Miller(Coors).

Now, Sierra Nevada brings trainloads of malt and grain to Asheville and allows smaller competitors to buy from it."

Again, the rising tide floats all boats! Sierra Nevada are master collaborators! I'd drink Ovila Abbey ales just on principal. They remind me of Summit Brewing in Minnesota. A big fish in a growing pond who gives all the little fish plenty of room to grow and has never sought to quash competition.

That, my friends, is American business.

:rockin:

 

[bonecitybrewco]

Interesting, they have launched a Canadian site now as well. To be honest, they will likely mop the Floor with local places and sites like OBK and TorontoBrewing are likely going to have to fight real hard to stay afloat. I'd be sad to see those places close.

 

[flars]

Interesting, they have launched a Canadian site now as well. To be honest, they will likely mop the Floor with local places and sites like OBK and TorontoBrewing are likely going to have to fight real hard to stay afloat. I'd be sad to see those places close.

NB won't be able to compete very well with the additional cost of shipping across the border. Dead Ringer extract kit is $79.99 in Canada.

 

[bonecitybrewco]

NB won't be able to compete very well with the additional cost of shipping across the border. Dead Ringer extract kit is $79.99 in Canada.

With the resources of ABI behind them I will bet money on them setting up warehouses and becoming Canadian side distribution, nullifying the shipping cross border.

 

[Murphys_Law]

Interesting, they have launched a Canadian site now as well. To be honest, they will likely mop the Floor with local places and sites like OBK and TorontoBrewing are likely going to have to fight real hard to stay afloat. I'd be sad to see those places close.

Only if you all stop buying from them!

 

[OBK]

Interesting, they have launched a Canadian site now as well. To be honest, they will likely mop the Floor with local places and sites like OBK and TorontoBrewing are likely going to have to fight real hard to stay afloat. I'd be sad to see those places close.

As an industry insider. Think it is going to be hard for NB to mop the floor up in Canada.

1) Pricing is very high compared to Canada. Take into account the exchange rate and it is a huge premium.

2) NB uses way too many low end house brands compared to Canada. The housebrand regulator used in kits C20PO is 80USD. Compared to the Taprite model sold predominately in Canada for 57USD.

3) Canada gets hit hard with brokerage and duties. It gets even worse at the 200 CAD point. (152USD).

4) They only stand to gain an additional 9% in market share. Canadians can gain 835% by shipping into the USA.

5) The NB brand is currently in public relations distress.


That is just off the top of my head. Long story short NB should be more worried about Canada then Canada about AB.

Cheers
Patrick