Just saw This
article today, found it very interesting. Wonder if this one makes it through legislative red tape and antitrust regulation.
:cheers:
Rad
Either way, I’m glad I know how to make decent beer on my own.
I’m just curious how the two big boys merging benefits either of them. They discuss in the article facing increasing competition from craft and diminishing sales. The irony of it is the article discusses giving one company too much power in one market and possibly raising prices. If they did that, they would be shooting themselves in the foot and driving even more people to craft beer over Macro.
:cheers:
Rad
What they would gain from the consolidation would be efficiency, which is necessary since they are profusely bleeding market share.
I also saw this article, which is likely true. I was always of the opinion of “I would drink a Bud if someone offered me one”, but this disgusts me and that opinion may change as a result.
http://www.reuters.com/article/2015/10/ ... 3R20151012I agree with that sentiment. I hardly buy any ‘craft’ beer either, preferring homebrew to the vast majority of them.
The big players in this story are catering to a different audience anyway. If they manage to turn out the occasional ‘craft’ worthy product (which the bigs are beginning to do, and in some cases doing it exceedingly well), all the better if it means more good beer that’s readily available. If it just means more yellow fizz water, there’s still plenty of good beer on the shelves from the little guys, who, in the end are more in competition with themselves than with the bigs anyway.
But it will certainly be interesting to see what kind of changes unfold in the coming years in that regard.
[quote=“Radagast”]I’m just curious how the two big boys merging benefits either of them. They discuss in the article facing increasing competition from craft and diminishing sales. The irony of it is the article discusses giving one company too much power in one market and possibly raising prices. If they did that, they would be shooting themselves in the foot and driving even more people to craft beer over Macro.
:cheers:
Rad[/quote]
By buying one they eliminate the lost profits to each other. If I, for example, own the only 2 fruit stands in town with different names it doesn’t matter where you buy that orange as it still lines my coffer.
[quote=“Pietro”]What they would gain from the consolidation would be efficiency, which is necessary since they are profusely bleeding market share.
I also saw this article, which is likely true. I was always of the opinion of “I would drink a Bud if someone offered me one”, but this disgusts me and that opinion may change as a result.
http://www.reuters.com/article/2015/10/ ... 3R20151012[/quote]I don’t get this. It’s been happening for years. Ever see the documentary ‘Beer Wars?’ It talked about AB pushing distributors into their products as well as limiting shelf space at stores. It’s getting better now but I remember going to stores and all other beers were either really high or really low on shelves. Sometimes other products were in remote locations.
My hope is that thru all these power plays the big boys are doing, that it pushes the people into another home brew revolution. The one way they can get to us though, is If somehow they can manipulate the prices of our craft goods. Lets keep our eyes and ears open as always…Brew On!!
It’s weird. The three tier system only seems to apply to the small guys. Big beer wants to buy distribution chains and manipulate retailers? Nothing wrong with that (sarcasm font). A brewpub wants to maybe distribute a few cases? That’s a travesty (again, sarcasm font).
wut
Unfortunately, that isn’t anything special to the beer business. The big guys make the rules, and have the lawyers to find the loopholes they can exploit. Happens everywhere, in every industry.
[quote=“Loopie Beer”][quote=“Pietro”]What they would gain from the consolidation would be efficiency, which is necessary since they are profusely bleeding market share.
I also saw this article, which is likely true. I was always of the opinion of “I would drink a Bud if someone offered me one”, but this disgusts me and that opinion may change as a result.
http://www.reuters.com/article/2015/10/ ... 3R20151012[/quote]I don’t get this. It’s been happening for years. Ever see the documentary ‘Beer Wars?’ It talked about AB pushing distributors into their products as well as limiting shelf space at stores. It’s getting better now but I remember going to stores and all other beers were either really high or really low on shelves. Sometimes other products were in remote locations.[/quote]
Loopie, you make a great point, but I also really appreciate Uber’s point, that the three-tier system is essentially not applicable to Big Beer.
Have distributors and Big Beer reps been playing golf, fly-fishing and having steak lunches for years? Yes. Have they been manipulating draft and shelf real estate through purchasing of draft systems for retailers and literally having reps go into stores and change shelf placement of non-big-beer brands? Yes. Have they been caught SWITCHING OUT KEGS OF CRAFT FOR KEGS OF CRAFTY UNBEKNOWNST TO THE BAR PATRON!? Yes.
Everyone I know in the beer business says its dirty and slimy. Except for everyone I’ve met in the craft segment. This may change with thousands of breweries opening per year.
I just think the whole system needs to evolve, which the article actually mentions (getting rid of distributors altogether). Until then, like anything else in the country, the change will come from the consumer. I’ll buy Genny, I’ll buy PBR (maybe), but nothing from AB/MC, maybe an occasional Blue/Blue Light. As they say in The Wire, “they gots to fall”.
Curious if the merger passes antitrust regulation. I am sure they will wiggle around it somehow but seriously?! 90% of every place with beer carries either INBEV or SAB with maybe one “craft” tap that is likely also an INBEV brand. That’s like Pepsi and Coke merging to me.
I am happy to see more talk about distributors. These guys are slime balls doing the stuff not INBEV etc… I seriously hope self distribution gains momentum. INBEV/SAB is surely going to do what it can to make sure it doesn’t happen tho.
In the meantime, I hope the craft movement starts crafting yellow fizz to add to their repertoire. There is a market but they have lots to learn.
Speaking of distribution issues, I was down in Houston, Texas for work recently and found a local craft bar called Hop Scholar. We spent three nights there, had a great time. They fill crowlers there, which is a great idea that I hadn’t seen before but I understand is gaining some momentum. Interestingly enough, they were told by the TABC to cease and desist filling crowlers within 60 days because it was a form of distribution. Regular growler fills are fine but heaven forbid you seal a can in your bar. The bartender had a countdown of days left and said at the end they were going to send it to a local brewery. Wonder if this is going to be pushed for elsewhere by distribution. Here
is an article describing the decision. I don’t know that ABinBev would be involved in pushing for this or not, just found it odd.
:cheers:
Rad
If the three-tier system was abolished, and breweries were allowed to sell directly to outlets, I wonder if that would help or hurt craft breweries in the long run. It certainly wouldn’t hurt the big boys - they simply fold the existing distribution companies they already own more closely into their corporate structure. But if distributors basically disappear, then the craft guys would be stuck only selling to local stores or spending a fortune to develop their own distribution networks.
That’s sort of how it works over here now. Breweries need to do the distribution themselves, which is fine by the big players Sinebrychoff (Carlsberg), Hartwell (Heineken) and Olvi (amazingly, still locally owned). In fact, the craft brewers would have been pretty much cut out if Olvi hadn’t decided to open up their distribution network to the small guys and make money off the craft revolution. Smart move on their part; I wonder if Sam Adams or other second tier players would do the same thing?
Here’s an interesting take on things by an industry insider. There’s no doubt they would need to spin off brands in the US, but the deal is more about Africa and India.
http://goodbeerhunting.com/blog/2015/10 ... in-history^ GREAT find and good read.
That was a good read. The scary part is there is no telling the impact this will have on independent breweries.
Funny thing about these brewery acquisitions and one change you can count on… The flavor of your favorite beer WILL change. Read about it years ago with Pete’s Wicked Ale and people said “bull$hit… Didn’t change.” Read about it with Bass when they stopped importing it and brewing here. I WITNESSED it with Kona beers. Went to Hawaii when they were independant and loved their beers. (Bought by Craft Brew Alliance, which ABI owns 30+%). When I got back I checked online and created a recipe from what they had listed. Finally they started distributing to OH and I thought it tasted different. Went back online and noticed the grist changed drastically as well as ALL hop additions. Don’t tell me those recipes don’t change!
Unfortunately the discerning beer taster is the minority. Alot of people think any label they don’t recognize is craft beer, crafty marketing is more like it.The niche for the craft brewer is sell local. That’s how it used to be up untill maybe the 70s. Never going to compete with those big guys, just not going to happen. That’s why I try to drink local stuff starting in my basement.
This is a tragedy in the making. We don’t have much of a voice in the political scheme any more, and now, big money will put the foot down on the brew end too? I can’t see any good coming down the road, first, which big shooter brews you could get, next, how about our home brewed supplies? I am going to do more of the “old way” of enjoying brews, if you drank, it was made locally. I was curious, a few years ago, there was a deal that Russia wasn’t able to use any capital to buy anything, anywhere after the fiasco in Ukraine. Well, they bought PBR, and some other assorted breweries during that time. Who’s going to stop the big money machine? Some where, or how, we need to get a voice for us itty bitty peeps, where you could spread our craft legally, kinda like the farmers market does around here, Independent beer runners of America! I wonder if any lawyer, local politician would dare to help start a grass roots movement and let a new choice be available, nationally and un fettered! :roll: Sneezles61
