If Boston Beer Co. (Sam Adams, etc.) gets acquired, does it matter?

Discussion in 'Beer Talk' started by SCW, Sep 26, 2017.

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  1. SCW

    SCW Initiate (0) Jul 25, 2004 New York

    The topic has come up before, but now the rumor mill is circling.

    https://www.bloomberg.com/news/arti...s-on-takeover-speculation-and-non-beer-growth

    Of course, there is no official "news" yet, and if and when that happens, it would go in the "Beer News and Releases" forum.

    What are your thoughts on this? Removing Boston Beer Co. from the Brewer's Association would have a huge impact on the industry side of things. Does it represent a major turning point for craft?

    @JackHorzempa @drtth @TongoRad @jmdrpi @Kadonny
     
  2. Squire

    Squire Grand Pooh-Bah (4,385) Jul 16, 2015 Mississippi
    BA4LYFE Society Pooh-Bah Trader

    My only concern is whether this will raise the prices.
     
  3. bubseymour

    bubseymour Grand Pooh-Bah (4,800) Oct 30, 2010 Maryland
    Pooh-Bah Trader

    Thanks for sharing. This is interesting and sad from a nostalgia standpoint for me if this goes down. Please educate me Sixpoint. What would be the huge impact if BBC was removed frm the Brewer's Association?
     
  4. SCW

    SCW Initiate (0) Jul 25, 2004 New York

    The annual membership fees for breweries to be in the BA is based upon barrelage. The more you make, the higher your fees are.

    You see the moral hazard here right?

    Maybe that's why the definition of "craft" continues to "evolve" :-)

    @JackHorzempa
     
  5. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
    Society Pooh-Bah

    “Removing Boston Beer Co. from the Brewer's Association would have a huge impact on the industry side of things.”

    I am very much starting to think that the Brewer’s Association definition of a craft brewery is just nonsense from a beer customer perspective. I recognize that as a trade organization they feel it is their charter to ‘represent’ the interests of independent craft breweries but the machinations they go through plus the fact that non-independent breweries (e.g., AB, MillerCoors, Constellation, etc.) are also members of the Brewer’s Association just makes things look screwy from my point of view.

    “Does it represent a major turning point for craft?”

    Not in my opinion. If MolsonCoors were to purchase Boston Beer Company that wouldn’t really change the facts of the products; the beers will still be craft beer.

    I would suggest that there are more important matters for the Brewer’s Association to work on vs. the whole definition of what constitutes a craft brewery. Permit me to suggest that ensuring there are quality beers available for purchase at my local beer retailers for example. I walk into my local beer retailers and there is just too many old beers on their shelves (and floors). I recognize that this is a complicated problem due to the three tier system (Brewery -> Wholesale Distributor -> Retailer) but it seems to me that the Brewer’s Association can play a very useful role here and ultimately their members (distributing breweries) are directly impacted if consumers such as myself stop purchasing their products. It seems to me that one of the allures for the drink local movement is that by purchasing beer directly from small, local breweries we consumers are assured of drinking fresh beer.

    Cheers!
     
  6. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
    Society Pooh-Bah

    Shane, I already expressed my views on the definition of craft brewery and the Brewer's Association in my above post.

    I also opined that "craft beer" is "craft beer" regardless of whether BIG BEER purchases a brewery.

    Cheers!
     
    LuskusDelph likes this.
  7. SCW

    SCW Initiate (0) Jul 25, 2004 New York

    Jack,

    Based upon your beliefs, do you feel that the BA "independent seal" then is also just a bunch of nonsense, and misleading for consumers?
     
  8. MostlyNorwegian

    MostlyNorwegian Pooh-Bah (2,236) Feb 5, 2013 Illinois
    Pooh-Bah

    From a consumer perspective. No. Sam Adams sort of checked into its own category before a lot of this current thing was even a thing.
    BA has its own issues to work out with what it means when it implies something means something. Playing nicely, and willing to go along with the upper side of its hand in these newer uncertain waters where the line blurs to the point of being erased is part of that.
     
    TongoRad likes this.
  9. bubseymour

    bubseymour Grand Pooh-Bah (4,800) Oct 30, 2010 Maryland
    Pooh-Bah Trader

    What are the pros and cons of a brewer to be a member (or not) of the brewer's association?
     
  10. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
    Society Pooh-Bah

    It is "nonsense" for me since the overriding factor for me is the product - if there is quality ('craft') beer in the bottle/can I am willing to drink it. I will not stop drinking beers from Ballast Point simply because there is no seal on those bottles/cans.
    There are some consumers who prefer to not purchase beer that is owned by BIG BEER. I would suggest that for them the "independent seal" has a benefit.

    I would suggest that for all beer consumers drinking quality, as in non-old, beer is something that is of interest to all of us consumers.

    Cheers!
     
    Raime, LuskusDelph, wspscott and 7 others like this.
  11. SCW

    SCW Initiate (0) Jul 25, 2004 New York

  12. bubseymour

    bubseymour Grand Pooh-Bah (4,800) Oct 30, 2010 Maryland
    Pooh-Bah Trader

    Agree 100%. IMO, the thing that needs figured out in the industry is how can distributors get a smaller quantity of beer "x" fresh to retail shops without reducing variety of beers in the stores and able to replenishing stock frequently so there are minimal "out of stock" timeperiods of products and beer is always fresh. As a consumer, I'd take a little less variety for improved freshness if there had to be a give and take.
     
    Leebo, dennis3951 and sharpski like this.
  13. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania
    In Memoriam

    Interesting speculations in the article.

    Basically Koch is the only one who has any say in whether the company gets sold since he holds all the voting shares. So it would probably depend in part on whether he's willing to "fight the good fight" yet again at his age or whether he chooses to cash in and move on to other things.

    I don't think it would have a major impact on the Brewer's Association outside of removing the BBC barrelage from their stats, etc. and barrage is only one way of keeping a score card. The BA's basic mission is still going to be a professional organization and "support group" for independently owned breweries and I don't see that changing nor would I think any "loss of dues" would would put such a dent in the BA budget as to seriously hamper their efforts.

    As for the "turning point," for Craft I'd say that turning point has already been passed about the time that ABInBev bought Goose Island. The sleeping giants have awakened and aren't going back to sleep anytime soon.
     
  14. ovaltine

    ovaltine Grand High Pooh-Bah (6,787) Apr 6, 2010 Indiana
    BA4LYFE Society Pooh-Bah Trader

    If a beer is "good" (whatever your definition of "good" is), I'll drink it. I do a decent amount of research to ensure I drink "good" beer, regardless of the seal on the label.

    BTW, I drink your beers whenever I can (pun intended) because you brew a lot of really good beers.
     
    cavedave, SammyJaxxxx and SCW like this.
  15. Squire

    Squire Grand Pooh-Bah (4,385) Jul 16, 2015 Mississippi
    BA4LYFE Society Pooh-Bah Trader

    It seems to me those who are adamant against Big Beer are already doing their own fact checking and the independent brewer stamp will have little impact on their decision.
     
    LuskusDelph, NCGreg, yossle and 3 others like this.
  16. Squire

    Squire Grand Pooh-Bah (4,385) Jul 16, 2015 Mississippi
    BA4LYFE Society Pooh-Bah Trader

    Some might say sleeping dogs but your point carries.
     
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  17. JuicesFlowing

    JuicesFlowing Initiate (0) Jul 5, 2009 Kansas

    Depends. If you drink certain brands because of sentiment, it does not matter at all, otherwise yes.
     
  18. hopfenunmaltz

    hopfenunmaltz Pooh-Bah (2,647) Jun 8, 2005 Michigan
    Pooh-Bah

    When is Jim Koch's BA Board of Directors term up? I don't think he would sell until he is off the BoD. Then again, what do I know?

    Edit - I just looked, he is 68, and the clock is ticking. He is not the only one in that age group.
     
    Bitterbill likes this.
  19. jmdrpi

    jmdrpi Grand High Pooh-Bah (8,989) Dec 11, 2008 Pennsylvania
    BA4LYFE Society Pooh-Bah

    No, as unfortunately they lost their craft beer street cred long ago with Twisted Tea and Angry Orchard.

    This was covered quite nicely in an article in last month's BA magazine, about how the craft beer pioneering breweries no longer are held in high esteem by newer craft beer drinkers:
    https://www.beeradvocate.com/articles/16369/old-dogs-and-new-tricks/
     
  20. SCW

    SCW Initiate (0) Jul 25, 2004 New York

    Just to give you an idea - he is older than both of my parents.
     
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