Rumors-did AB/InBev buy Northern Brewer and Midwest?

Vent, Rant, Chat or just talk about whatever is on your mind! Keep it civil though!

Moderators: BlackDuck, Beer-lord, LouieMacGoo, philm00x, gwcr

User avatar
SomeGuyBrewing
Brew Fool
Brew Fool
Posts: 146
Joined: Tue Sep 17, 2013 6:21 pm
Location: Southern California

Re: Rumors-did AB/InBev buy Northern Brewer and Midwest?

Post by SomeGuyBrewing »

Here's an interesting article that was on BrewDog's blog last December. It includes this quote from the owner of a brewery that was bought out. From the Blog:

Nøgne Ø

Within months of selling to a mega beer corporation, Nøgne Ø founder and former CEO Kjetil Jikiun posted this message on Facebook. He said the new buyers had ensured "Nøgne Ø The Uncompromising Brewery was changing into Grey Ø The Average Brewery" and the new values introduced were "Good Enough. Mediocre. Average." Kjetil left, obviously distressed as to what became of the brewery he loved. At the time of the acquisition both Kjetil and Hansa (the buyer) insisted nothing would change. It obviously did, and quickly.

There are also other interesting tidbits from the Elysian, Lagunitas, and Goose Island purchases.(NB1403)
The article you posted is very much in line with a conversation I had with an exec of Budweiser at a charity event.
He basically said when AB/InBev buys a craft brewery they initially allow the brewery to retain control over recipes and process (seems to be the statement everyone makes when they are first bought out), but as time goes on they gradually take more and more control over the decisions being made at the brewery, and he flat out told me the end game was to "phase them out"

How much of that is legit and straight up or just some exec talking to be talking...I don't know.

I also had a conversation with the Head Brewer at the Van Nuys location. They are going to start brewing Golden Road's 329 Lager there. And he told me he hates that he has to brew their recipe and as soon as they let him he is going to change the recipe because he doesn't like using specialty malts. In fact they don't use them at all there and he doesn't want to deal with storage issues of having a specific place just for those specialty malts.

Again, this is all stuff in an informal discussion, so its to be taken with a grain of salt. But for me, coming from who it came from, there is at least a smidgen of validity.
“Good things happen to those who hustle.” - Chuck Noll
See what SomeGuy is brewing
Drinking:
Drago - FES
Fool's Gold Pale Ale
Maple Apple Cider
Wheats The Deal With Hops?
The Blonde One


Bottled/Kegged/Conditioning:

Fermenting:
Honey Crisp IPA

On Deck:
Golden Stout, Recipe inspired by Aztec Brewery

Competitions:
The Blonde One - Silver Medal - Thirsty Classic 2016

Never Forget
Amber Alert, Drunkin Pumpkin 2013, Tryin' To Get A Nut - Brown Ale, Wheat You Talkin' Bout Willis?, Good Twin, Blacker the Berry the Sweeter the Porter, New World...Altbier, Smoked Sour(ish), Oh YEAAH!!! - Orange Wheat, Evil Twin, Hanger 12 - OITNB, The Gose & The Darkness, First Harvest, Ghost Pumpkin, Grapefruit IPA, Murphy Brown Porter, Thanksgiving Blonde
bpgreen
Brew Guru
Brew Guru
Posts: 2014
Joined: Wed Aug 05, 2015 9:50 pm

Re: Rumors-did AB/InBev buy Northern Brewer and Midwest?

Post by bpgreen »

Apparently, it's true.

click here
User avatar
Beer-lord
Moderator
Moderator
Posts: 9635
Joined: Mon Aug 05, 2013 2:48 pm
Location: Burbs of the Big Easy

Re: Rumors-did AB/InBev buy Northern Brewer and Midwest?

Post by Beer-lord »

bpgreen wrote:Apparently, it's true.

click here
Awww crap!
PABs Brewing
Planning
Brew good beer and live a hoppy life
Fermenting

Drinking
Disfucted
Smelly Hops
(split batch) A Many Stringed Bow
Up Next
Men In Black
User avatar
BlackDuck
Moderator
Moderator
Posts: 5156
Joined: Wed Aug 07, 2013 7:49 am
Location: Canal Winchester, Ohio

Re: Rumors-did AB/InBev buy Northern Brewer and Midwest?

Post by BlackDuck »

Crap is right. I just ordered some stuff from Adventures in Homebrewing, guess I'll keep my online business to them and a few others that are still small.
ANTLER BREWING
Drinking
#93 - Gerst Amber Ale
Conditioning and Carbing

Fermenting

On Deck
User avatar
Inkleg
Brew Guru
Brew Guru
Posts: 4582
Joined: Sun Aug 11, 2013 5:44 pm
Location: Lilburn, GA

Re: Rumors-did AB/InBev buy Northern Brewer and Midwest?

Post by Inkleg »

Judging by NBs Facebook page a lot of folks will take their business elsewhere.
Naked Cat Brewery On Tap
Yazoo Sue Smoked Porter
Octoberfest
Le Petite Saison
Czech Pale Lager
A Toast to Big Fuzzy Russian Imperial Stout at 10%
Belgian Blond
Flower Power IPA
4 Kilts Clueless Belgian Strong
One Wort Two Yeast with Wyeast 2206
One Wort Two Yeast with WLP940
Shipwreck Saison
User avatar
mashani
mashani
mashani
Posts: 6765
Joined: Sat Aug 10, 2013 11:57 pm

Re: Rumors-did AB/InBev buy Northern Brewer and Midwest?

Post by mashani »

I use MoreBeer mostly. Mostly have used Northern when they do things like 3 kits for 17.76, or 14.92 each.
User avatar
BlackDuck
Moderator
Moderator
Posts: 5156
Joined: Wed Aug 07, 2013 7:49 am
Location: Canal Winchester, Ohio

Rumors-did AB/InBev buy Northern Brewer and Midwest?

Post by BlackDuck »

Wow, those facebook comments are amazing, and well deserved. And his letter announcing the purchase is a bunch of shit. If he thinks nothing will change, he's blind, but I'm sure he knows it will change, he just has to sign his name to the letter that was drafted for him by AB Inbev. If a company has a division called the Global Disruptive Growth Unit, their entire existence is to bring about change.

I get their magazines, I think I should call them and request that I be permanently removed from their mailing list. But really, it's too late, AB Inbev already has my info. I'm sure they were provided all that info during thier discovery phase of the purchase.
ANTLER BREWING
Drinking
#93 - Gerst Amber Ale
Conditioning and Carbing

Fermenting

On Deck
User avatar
Beer-lord
Moderator
Moderator
Posts: 9635
Joined: Mon Aug 05, 2013 2:48 pm
Location: Burbs of the Big Easy

Re: Rumors-did AB/InBev buy Northern Brewer and Midwest?

Post by Beer-lord »

I like Morebeer and Rebel Brewing for my online orders.
Yea, those comments are brutal but made me laugh.
PABs Brewing
Planning
Brew good beer and live a hoppy life
Fermenting

Drinking
Disfucted
Smelly Hops
(split batch) A Many Stringed Bow
Up Next
Men In Black
User avatar
MrBandGuy
Fully Fermented
Fully Fermented
Posts: 355
Joined: Thu Aug 06, 2015 6:36 pm
Location: Southern Indiana

Re: Rumors-did AB/InBev buy Northern Brewer and Midwest?

Post by MrBandGuy »

I kinda liked Midwest's Beer.Simply Beer kits too. The two I tweaked were winners. Oh well.

At least I have my LHBS and Great Fermentations.
User avatar
RickBeer
Brew Guru
Brew Guru
Posts: 3099
Joined: Thu Aug 08, 2013 1:21 pm
Location: Ann Arbor, Michigan (Go Blue!)

Re: Rumors-did AB/InBev buy Northern Brewer and Midwest?

Post by RickBeer »

Most of the commenters were clueless that Farley sold out years ago to private equity and that is who sold to InBev.
I have over 9,000 posts on "another forum", which means absolutely nothing. Mr. Beer January 2014 Brewer of the Month with all the pomp and circumstance that comes with it...

Certificate in Brewing and Distillation Technology

Sites to find beer making supplies: Adventures in Homebrewing - Mr. Beer - MoreBeer
My Beer - click to reveal
Currently using 6 LBKs.

Beers I regularly brew:
Bell's Best Brown clone
Irish Hills Red - I call this "Ann Arbor Red"
Mackinac Island Red - I call this "Michigan Red"
Oatmeal Stout - I call this Not Fat, Stout - Oatmeal Stout

Bottled 5 gallons of Ann Arbor Red on 4/18/17. Bottled 5 gallons of Michigan Red on 5/8/17.

Brewed in 2017 - 22.13 gallons (19.91 in 2012, 48.06 in 2013, 61.39 in 2014, 84.26 in 2015,46.39 in 2016)
Brewed in lifetime - 282.14 gallons
Drinkable beer on hand -  13.58 cases, with 6.11 cases ready in May and early June.
Average cost per 12 pack through all beer brewed - $6.27(ingredients only)
User avatar
FedoraDave
FedoraDave
FedoraDave
Posts: 4209
Joined: Fri Aug 09, 2013 5:52 pm
Location: North and west of the city
Contact:

Re: Rumors-did AB/InBev buy Northern Brewer and Midwest?

Post by FedoraDave »

SomeGuyBrewing wrote:The article you posted is very much in line with a conversation I had with an exec of Budweiser at a charity event.
He basically said when AB/InBev buys a craft brewery they initially allow the brewery to retain control over recipes and process (seems to be the statement everyone makes when they are first bought out), but as time goes on they gradually take more and more control over the decisions being made at the brewery, and he flat out told me the end game was to "phase them out"

How much of that is legit and straight up or just some exec talking to be talking...I don't know.
While I don't understand business or economics, it seems to me that when this trend of buying out a company and then phasing them out would become obvious after a while, and the strategy would have to change somehow.

That being said, if a big guy comes up to a small guy and offers him a wad of money, the temptation may be too great for the small guy. After working incessantly for years, he can recoup his investment and then some with just a stroke of a pen. So maybe this strategy is viable even in the long term.
Obey The Hat!

http://www.homebrew-with-the-hat.com

Some regard me as a Sensei of Brewing
Fedora Brauhaus
Up Next:
2Daves Irish Red
Fermenting/Conditioning
Ladybug Lager
Drinking:
FedoraDave's American Ale -- Schöenwald Schwarzbier -- Littlejohn's Ale -- King Duncan's Porter
User avatar
RickBeer
Brew Guru
Brew Guru
Posts: 3099
Joined: Thu Aug 08, 2013 1:21 pm
Location: Ann Arbor, Michigan (Go Blue!)

Re: Rumors-did AB/InBev buy Northern Brewer and Midwest?

Post by RickBeer »

You won't see a "buy and phase out" strategy here. AB InBev is getting closer to the end consumer by this move. They will invest in the business, probably dramatically increasing their ecommerce presence, and I would expect that they'd slowly explore rolling out retail locations.
I have over 9,000 posts on "another forum", which means absolutely nothing. Mr. Beer January 2014 Brewer of the Month with all the pomp and circumstance that comes with it...

Certificate in Brewing and Distillation Technology

Sites to find beer making supplies: Adventures in Homebrewing - Mr. Beer - MoreBeer
My Beer - click to reveal
Currently using 6 LBKs.

Beers I regularly brew:
Bell's Best Brown clone
Irish Hills Red - I call this "Ann Arbor Red"
Mackinac Island Red - I call this "Michigan Red"
Oatmeal Stout - I call this Not Fat, Stout - Oatmeal Stout

Bottled 5 gallons of Ann Arbor Red on 4/18/17. Bottled 5 gallons of Michigan Red on 5/8/17.

Brewed in 2017 - 22.13 gallons (19.91 in 2012, 48.06 in 2013, 61.39 in 2014, 84.26 in 2015,46.39 in 2016)
Brewed in lifetime - 282.14 gallons
Drinkable beer on hand -  13.58 cases, with 6.11 cases ready in May and early June.
Average cost per 12 pack through all beer brewed - $6.27(ingredients only)
User avatar
TonyKZ1
Brew Master
Brew Master
Posts: 678
Joined: Fri Feb 20, 2015 12:19 pm
Location: Marble Hill, MO.

Re: Rumors-did AB/InBev buy Northern Brewer and Midwest?

Post by TonyKZ1 »

I haven't done much business with NB, I have bought some equipment and recipes from them. I do most of my online ordering from Jasper's Homebrewing (multiple 1 & 5G recipes) and Midwest Supplies - the simply.beer 5G recipes of which I've brewed all 6 of them now and they all turned out good. I missed out on the NB $14.92 Sale, probably should have ordered at least 3 of them. I just bought some ingredients from the semi-local home brew store Saturday and that went well.
Bailey's Billy Goat Brews
User avatar
evily
Brew Fool
Brew Fool
Posts: 212
Joined: Wed Aug 21, 2013 9:11 am
Location: Mil-ee-wah-kay

Re: Rumors-did AB/InBev buy Northern Brewer and Midwest?

Post by evily »

RickBeer wrote:You won't see a "buy and phase out" strategy here. AB InBev is getting closer to the end consumer by this move. They will invest in the business, probably dramatically increasing their ecommerce presence, and I would expect that they'd slowly explore rolling out retail locations.
THIS. This is exactly their strategy. E-commerce in the beer industry is going to grow by leaps and bounds in the coming years. The closer ABI can get to people who are already buying beer-related stuff online, the better they are positioning themselves for future e-commerce growth.
~*~*~I like big beers and I cannot lie!~*~*~
User avatar
RickBeer
Brew Guru
Brew Guru
Posts: 3099
Joined: Thu Aug 08, 2013 1:21 pm
Location: Ann Arbor, Michigan (Go Blue!)

Re: Rumors-did AB/InBev buy Northern Brewer and Midwest?

Post by RickBeer »

Well if Evily agrees with me, I must be right! :lol:
I have over 9,000 posts on "another forum", which means absolutely nothing. Mr. Beer January 2014 Brewer of the Month with all the pomp and circumstance that comes with it...

Certificate in Brewing and Distillation Technology

Sites to find beer making supplies: Adventures in Homebrewing - Mr. Beer - MoreBeer
My Beer - click to reveal
Currently using 6 LBKs.

Beers I regularly brew:
Bell's Best Brown clone
Irish Hills Red - I call this "Ann Arbor Red"
Mackinac Island Red - I call this "Michigan Red"
Oatmeal Stout - I call this Not Fat, Stout - Oatmeal Stout

Bottled 5 gallons of Ann Arbor Red on 4/18/17. Bottled 5 gallons of Michigan Red on 5/8/17.

Brewed in 2017 - 22.13 gallons (19.91 in 2012, 48.06 in 2013, 61.39 in 2014, 84.26 in 2015,46.39 in 2016)
Brewed in lifetime - 282.14 gallons
Drinkable beer on hand -  13.58 cases, with 6.11 cases ready in May and early June.
Average cost per 12 pack through all beer brewed - $6.27(ingredients only)
Post Reply