Founder's Expanding Yet Again

Discussion in 'Beer News' started by archiebunkerjr, Jul 2, 2014.

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  1. Tex_hex

    Tex_hex Initiate (0) Apr 26, 2014 Illinois

    " grr32
    The squeeze will come from mid-size breweries expanding into new markets seeking growth. Founders has done a little of that but I'm told Michigan is growing at 60% for them so they needed to expand just to satisfy their home market."

    I'm not sure what their numbers are exactly for Chicago but I know they're expanding here too. Seems like every bar I go to these days has at least two or three founders selections. Also, the seasonals fly off the shelves here. Expansion will be great for them and for all that appreciate what they do. And I think their everyday product is quality enough to sustain it.
     
  2. FatBoyGotSwagger

    FatBoyGotSwagger Grand Pooh-Bah (3,999) Apr 4, 2009 Pennsylvania
    BA4LYFE Society Pooh-Bah Trader

    They increase the amount of beer but spread it over a larger area. Same thing happened last year with NY/New England expansion, they made more KBS but it was much harder to find. I can only see the same thing happening with westward expansion.
     
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  3. kdb150

    kdb150 Initiate (0) Mar 8, 2012 Pennsylvania

    "Everybody outside the state of Michigan?" Does that include people in CA, who don't even get Founders? What about people who can also by many of the other "session IPAs" on the market? Not to mention the hundreds of other IPAs that sit on shelves next to Centennial, where in just about every place besides Grand Rapids, at least one of those choices is made closer to home. Here in PA, I have hundreds of other IPAs to choose from that come from closer by.

    I don't doubt the marketing acumen of the folks at Founders, I'm just curious as to what they think the market is going to look like in 5 or 10 years. I think most people would agree it will look very different from how it does now, and how likely is it that the market will support a dozen or more rapidly expanding mid-size brewers, when small breweries are popping up everywhere these days, seemingly overnight? Also, how are things going to shake out when competition for market share among these breweries really heats up, and will that turn consumers off?
     
  4. jivex5k

    jivex5k Initiate (0) Apr 13, 2011 Florida

    Not surprising. The arrival of Founders in my state has significantly improved my beer selection.
    Imperial Stout, Breakfast Stout, Backwoods Bastard and Curmudgeon are all top notch.
     
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  5. mmmbeerNY

    mmmbeerNY Maven (1,369) Mar 5, 2014 New York

    More KBS and Harvest please! Would be great if we did not have to "hunt" for the best beers out there, but agree with some people there are already a ton of standard IPAs (and maybe few other styles) to choose from so eventually if some of the mid-size breweries grow and local small breweries keep forming there is going to be some places left with too much supply.
     
  6. Jaay7

    Jaay7 Initiate (0) Feb 26, 2013 Indiana

    are people buying all day ipa because it tastes good or are they buying it because ipa's are the new trend now though.me personally i dont know,ive tried ipa's(the samuel adams ones) and thought they were gross and would rather stick with beer so it makes me wonder if there is a difference between a good ipa and a bad one

    although it is like 4 percent abv.i generally like the higher alcohol stuff like dirty bastard and double trouble
     
    #26 Jaay7, Jul 2, 2014
    Last edited: Jul 2, 2014
  7. tylerstravis

    tylerstravis Pooh-Bah (2,487) Feb 14, 2014 Colorado
    Pooh-Bah

    Double Trouble is an IPA, so there you go :slight_smile: For you, a good IPA is Double Trouble and a bad one is the Sam Adams one you tried.
     
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  8. needMIbeer

    needMIbeer Pooh-Bah (2,178) Feb 5, 2014 Virginia
    Pooh-Bah Trader

    I'm obviously a bit biased when it comes to MI beer but I think there is definitely room to grow as long as quality doesn't go with it. I know many people who would love to be able to buy Founders beers in Maryland and not have to drive down to DC/NoVa.
     
  9. beatenbyjacks

    beatenbyjacks Savant (1,151) Apr 17, 2011 Colorado

    Taking out cash reserves and financing with some debt huh? Why not create a Founders Reserve where the interest payments are cases/ bottles of beer? I would be in!
     
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  10. CassinoNorth

    CassinoNorth Initiate (0) Apr 5, 2013 New Jersey

    Tired Hands/F&M/and a ton of PA distro. Most people out west don't hold Parabola for a king's ransom.
     
  11. beerjerk666

    beerjerk666 Grand Pooh-Bah (5,155) Aug 22, 2010 Florida
    Pooh-Bah Trader

    Sounds like a smart business move to me. What's the worst that could happen? As long as the quality doesn't drop off I'm all for it as I haven't had a bad beer from Founders, yet!
    Plus a new Black IPA Dark Penance? I'M ALL IN!!
     
  12. JDM44

    JDM44 Initiate (0) Mar 11, 2013 Texas

    They need to make FBS a year round beer.
     
  13. gillagorilla

    gillagorilla Pooh-Bah (2,691) Feb 27, 2013 Maryland
    Pooh-Bah

    The fact that they have said they are coming here twice since 2012 pisses me off, but I've heard that it is the fault of the VA distributor for why we don't have it here.
     
  14. DollarBila

    DollarBila Devotee (381) Jan 19, 2008 Michigan
    Society

    As the article says, the expansion will be "at its downtown facility or in another location around the Grand Rapids area".

    This may be irrational, but I personally feel that there is just something about being in the taproom and knowing all the beer was produced right there.

    I have tons of respect for the pioneering Bell's Brewery and their fine products. But moving much of the production to sterile suburbs or rural farmland just hits me wrong. It feels like a departure from a lot of what is cool about craft beer. Like drinking quality Western USA beers made in the East or Guinness brewed outside of Dublin. The accountants are starting to have too much influence.

    As mentioned, it may be irrational, but I feel it.

    Here's to the expansion being at the downtown facility!
     
  15. archiebunkerjr

    archiebunkerjr Pundit (910) Oct 25, 2010 Michigan
    Trader

    @DollarBilla. Yeah, I see your point. But specific to Founder's, I see a few things in play and there is probably more. The first thing I consider is that if Founder's expands their existing brewery, it will swallow their parking lot in the back. No problems there but then they have absolutely zero room for any expansion after that at their existing facility. And based on the volume growth numbers detailed in the article, I have no doubt in my mind that they will be expanding yet again in another few years after this recently announced expansion.

    One other issue that I thought of is that Founder's executives are attempting to negotiate tax breaks/incentives (in addition to the possible off-site acquisition) for themselves. I couldn't help but think the two week timetable to make a decision on where to expand was a tool to assist them in negotiations.

    One last point, I would hate to see them lose that back parking lot. It's all they have. If that lot goes, the only parking is on the streets and that is very limited as well - at least if you want to park within a reasonable distance.

    Oh yeah, btw, I add these comments while nursing a KBS to celebrate the beginning of my 17 day vacation. Bitchin'
     
  16. Geuzedad

    Geuzedad Initiate (0) Nov 14, 2010 Arizona

    Finally got them here in AZ. Love it!
     
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  17. Geuzedad

    Geuzedad Initiate (0) Nov 14, 2010 Arizona

    I got all you want here in AZ. Wanna trade for some Alpine and RR?
     
  18. Caveworm

    Caveworm Maven (1,275) Feb 26, 2014 Ohio

    hahaha YES, further making MCB shake in their little booties. makes me proud to be a craft enthusiast!
     
  19. basics

    basics Initiate (0) Oct 27, 2011 North Carolina

    I'm the opposite I can't think of another brewery where I'll buy at least some of most of their seasonal/special releases. Rubaeus, Double Trouble, Harvest Ale, KBS, Breakfast Stout, Backwoods, Curmudgeon, Impy Stout, Devil Dancer I will always get at least one bottle of each year, and KBS/Backwoods/Harvest I get as much as possible. And of course I will periodically pick up some of their Porter or Dirty Bastard. Founder's is my, 'if I was stuck on a desert island with only one breweries beer' brewery.
     
    #39 basics, Jul 12, 2014
    Last edited: Jul 12, 2014
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  20. nate-henry

    nate-henry Initiate (0) Jun 16, 2014 Michigan

    i feel much better spending my money on bells, shorts, dark horse, new holland, arcadia; etc. i just have a gut feeling founders is going to sell out like goose island. can't find a kbs, backwoods bastard, or a devil dancer to save my life and i live an hour from the brewery. appears founders is more concerned pumping out 15 packs of mediocre all day ipa than promoting itself as one of the best craft breweries in the world
     
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