NY Times: "Monopolizing Beer"

So far it seems like the more they paint themselves as the big bad wolf, the better craft beer sales grow. I am not sure they can do more than watch as their share of the beer market decreases, and their target consumer discovers better beer, wine, and spirits.

 

I own some Budweiser stock, so for my own best financial interest, I...

*Ducks the torrent of crumpled paper balls being thrown at me*

 

Thanks brother, I needed a little optimism there. Have a great day

 

Bc that is how every locavore person acts?
Even if they swear off all large beer conglomerates and just by local, and do the same w some food and other items they are making an impact not only on the local economy, but also the environment. Who cares if they are using Microsoft word or OS X? And if am I evil for buying local roasted coffee and wearing that roasters shirt, but swearig off abinbev, then so be it... Every little bit helps!

Cheers

 

I work for them, so... bomb shelter time?

 

“I am surprised the big boys aren't using more of their cash horde to go after the next level. That would be the big regional guys.”

Interesting thought.

The first questions that pops into my mind are:

· Are the regional breweries attractive acquisition targets? For example, would North American Breweries (which includes Genesee) represent a growth opportunity to AB InBev or MillerCoors (SABMiller)?

· Would a growing regional brewery like Yuengling be willing to be bought by AB InBev or MillerCoors (SABMiller)?

Hmmm?

Cheers!

 

Indeed. I wonder if the big regionals are the next ones to feel the squeeze from a market that on the whole is contracting, despite our segment of it expanding? Wouldn't surprise me if the big guys wonder the same thing.

 

“I wonder if the big regionals are the next ones to feel the squeeze from a market that on the whole is contracting, despite our segment of it expanding?”

Let me start with the caveat that I am not an expert on the US beer market. Maybe @jesskidden will chime in with his thoughts on this topic.

So, based upon my readings Yuengling is growing. I am not aware of any signs of contraction for that regional brewery.

I see lots of positive discussion about Schell’s Brewing but I am unaware of their business aspects (are they growing?).

Cheers!

 

I guess the canary in the caol mine is Goose Island. I really do not know what they were like before being taken over. I do know that I can now find it everywhere. I also see it in the hands of many coors light drinkers. Has the beer changed any? Is it a gateway for Imbev to buy more craft breweries. I could see the big boys going after DFH, Stone, New Belgium and maybe even a Sierra Nevada. Any of those 4 with an advertising budget behind them could be grown exponentially. Would they sell out? If big money comes in it is hard to say no.

This is a bit of rambling to basically say....who knows. Right now we seem to be in a beer sweet spot. I would hate to see anything upset this apple cart. I remember the 70's consolidation and shudder to think of that happening again. I also do not think the genie can be put back in the bottle.

 

I don't "loathe" the big boys. They make my cars (Ford and Toyota). They make my computer (Hewlett Packard). They make my hot sauce (Tabasco). My friends make a living distributing, selling and moving their products, and that's pretty fuckin local. If it's not ISIS brewing my beer, I couldn't care less. I ain't no damn hippie.

 

Well I have heard fine beer is about 15% of the English overall beer market. We have a way to go before reaching that here. I guess it could be we have quite a bit more growth to do in our segment? I have no idea. We certainly are in a sweet spot, as you point out. It is the golden age of fine American beer, and I cannot honestly imagine it getting any better. But we are on track for 4,000 breweries in the country. The survival of some of them does seem to depend on our market segment continuing to grow.

Would love to hear from @jesskidden , not just statistics, but to give his educated opinion on what he thinks any of this all means for us, for fine beer as a whole.

 

Firstly you asked concerning Goose Island: “Has the beer changed any?” I am not a big drinker of the Goose Island mainstream beers (e.g., Honkers, 312 Wheat, etc.) but I have not seen any BAs posting complaints about these beers which happen to be brewed at AB breweries now (e.g., Baldwinsville, NY). I do drink Goose Island beers that are brewed in Chicago (e.g., Sophie, Matilda, etc.) and those beers are still very high quality post the acquisition. The AB purchase with Goose Island was a good business move on many levels:

· AB has an excellent Marketing & Sales & Distribution team

· Mainstream Goose Island beers are brewed more economically/efficiently at existing AB breweries

· The Chicago Goose Island Brewery is permitted to concentrate on non-mainstream beers

· Etc.

“I could see the big boys going after DFH, Stone, New Belgium and maybe even a Sierra Nevada.” But would any of these particular 4 breweries actually be willing to sell?

Cheers!

 

So let's bash the big bad conglomerate non craft beer guys but are craft beer hoarders any different? People who use mules or only but to resell (or retrade) for a profit? In the end they're no different, just on a smaller scale. If you ran a company would you do it to make a profit or to position yourself for future success? Or just to be a blip on the radar that gets passed by because you couldn't make the moves to prosper?

 

“Well I have heard fine beer is about 15% of the English overall beer market.” Is that 15% as measured by sales dollars? If so, then the US craft beer market is not too far away from that figure.

Cheers!

 

Not sure, paging @marquis

 

The Federal Trade Commission (FTC) is in charge of preventing monopolistic business practices.

 

in the US it's the Department of Justice or the Federal Trade Commission

In the EU, it's the European Commission and goes through several layers of review and approval.

not sure about other jurisdictions.

 

It's probably barrelage. Remember that in this country cask ale is significantly cheaper than macro lagers (at least in the on trade) unlike in the US. Have a look at Pete Brown's report;
http://caskmatters.co.uk/wp-content/uploads/sites/4/2014/06/Cask_Ale_Report_2013_14.pdf

 

I mean, I see you point. Because clearly no one is deciding what is big enough. At least to my knowledge, unless I am missing something.