They just don't get it....
Posted: Fri Nov 07, 2014 2:40 pm
http://allaboutbeer.com/10-barrel-brewi ... ser-busch/
I dont doubt InBev or other biggies can buy a craft brewery and keep quality. If the brewery was profitable from the beginning, with InBev's massive purchasing power they can make it even more profitable and can grow the brand via their distribution network. This is not a "crafty beer" scenario. As the one brewer noted, he loves that he will now have near unlimited resources.
Where the problem comes in is the massive scale similar to mom & pop appliance stores competing with Best Buy and the internet. See any of those around anymore? InBev has such massive purchasing power they get huge discounts, making it difficult for the little guys to play. And who's to stop them from going to Hops Union and saying "yes, we want ALL of your Cascade," leaving everyone else out in the cold or paying top dollar? This would not be good for us home brewers either, as anyone who can remember the hop shortage can contest. Luckily, the hops production in Michigan is really taking off, and we tend to sell to Michigan breweries so hopefully that wont affect us all too much.
Other major problem is their distribution network. What is to prevent them from claiming more and more shelf space by threatening not to sell them Bud and saying the same thing to the bars? Yes, there are some craft-only bars, but the majority of the bars make their money on BMC so of course they would give in, as they too are competing with "Liquor Lotto" across the street.
SWMBO and I make it a point to support Michigan beers seeing as that is where we hang our hats (we also have some good beer), and augment with some of the ones touted on the Borg, etc. to broaden our horizons. But we are the minority as well as working to start a local business so can understand what is happening unlike the +95% of the demographics. It would kill me if InB came in and bought Founders, Bells, or Shorts amongst others as it would further make obvious what these giants are doing to the industry. Then again, I still drink Leinies so I guess that sort of makes me a hypocrite.
I dont doubt InBev or other biggies can buy a craft brewery and keep quality. If the brewery was profitable from the beginning, with InBev's massive purchasing power they can make it even more profitable and can grow the brand via their distribution network. This is not a "crafty beer" scenario. As the one brewer noted, he loves that he will now have near unlimited resources.
Where the problem comes in is the massive scale similar to mom & pop appliance stores competing with Best Buy and the internet. See any of those around anymore? InBev has such massive purchasing power they get huge discounts, making it difficult for the little guys to play. And who's to stop them from going to Hops Union and saying "yes, we want ALL of your Cascade," leaving everyone else out in the cold or paying top dollar? This would not be good for us home brewers either, as anyone who can remember the hop shortage can contest. Luckily, the hops production in Michigan is really taking off, and we tend to sell to Michigan breweries so hopefully that wont affect us all too much.
Other major problem is their distribution network. What is to prevent them from claiming more and more shelf space by threatening not to sell them Bud and saying the same thing to the bars? Yes, there are some craft-only bars, but the majority of the bars make their money on BMC so of course they would give in, as they too are competing with "Liquor Lotto" across the street.
SWMBO and I make it a point to support Michigan beers seeing as that is where we hang our hats (we also have some good beer), and augment with some of the ones touted on the Borg, etc. to broaden our horizons. But we are the minority as well as working to start a local business so can understand what is happening unlike the +95% of the demographics. It would kill me if InB came in and bought Founders, Bells, or Shorts amongst others as it would further make obvious what these giants are doing to the industry. Then again, I still drink Leinies so I guess that sort of makes me a hypocrite.