Lagunitas bashes the Macros

I don't think that they will eliminate all of the competition. However, they will make it harder and harder for craft brewers to be in your local shop. They are already squeezing other craft brewers out of shelf space in my area by installing Goose Island displays that quadruple GI's shelf space.

If their Goose Island experiment works, they will acquire other craft brewers. Each acquisition will result in the elimination of shelf space for other brewers.

 

They won't "eliminate" competition... they'll just buy them out. AB Inbev has specifically stated that to be one of their goals. And once they own enough of the "craft" breweries... well, you a fan of Shock Top and Blue Moon?

And yet they still only get about 6% market share. I wonder if shelf space and distribution has anything to do with that?

To rephrase your initial comment... there seems to be a small group on these forums, mainly people who like BCBS, who think that AB Inbev buyouts of breweries poses no thread to craft beer and consumer choice. If those people think AB Inbev doesn't want to monopolize the beer market and dumb down beers to increase their bottom line... they don't know much about business.

 

Also worth noting that Lagunitas... is about as large, capacity wise, as craft brewers get. Two 250bbl systems, counting the under-construction Chicago facility? At capacity, according to BeerPulse, that's more than one million barrels a year.

 

Very Well Said Sir!!!

 

Those talking about the GI and not liking their buyout. To my understanding part of the agreement was if AB changed or tweeked ANY of the recipes GI would take it back and get to keep the $$.

Also..positives we have seen...312 in cans...take or or leave it...

They also bought John another warehouse to expand the barrel aging program....ummm...WIN!

 

I think I'll have buy some New Dogtown this weekend in honor of these guys...I love to have an outspoken advocate for craft beer in the industry even if they do ruffle some feathers sometimes. And their beer kicks ass.

 

312 in cans, additional warehouse space= more money in the AB-InBev coffers
That is a win for AB-InBev and a loss for craft beer drinkers.

 

How is it "a loss for craft beer drinkers" if he enjoys drinking 312 in cans? The big boys have a helluva long way to go if they're going to be crowding out any craft beer at the places I buy it.

 

They can't buy them out unless the breweries are willing to sell.

Which has grown each year. I mean, seriously, if it was possible to destroy the competition with buyouts and shelf space, don't you think Coke and Pepsi would have done that by now? Of course, InBev wants to expand its market share and buyout smaller firms. What do you expect them to say, that they happy with a stagnant market share?

I repeat, the reality of the situation with craft beer growth is the direct opposite of what you are saying will happen. The Big Beers aren't going to eliminate your favorites as long as retailers can make money selling craft, anymore than Micky D's is going to eliminate local hamburger stands.

In fact, throughout the food and beverage industry, small artisan operations are increasing. Back when Big Beer was king in the 60s it was almost impossible to find an artisan bakery unless you traveled to a major city like New York or LA. Now they're in every city of decent size. Ditto good coffee shops.

The local Total Wine has steadily expanded its shelf space for craft beer while keeping the space for Big Beer virtually the same. They are even enlarging their growler station from 6 taps to 24. Do you think all those are going to be Bud, Bud Light, Miller, Miller Lite, yadayadayada...?

If BA is still around 50 years from now, I confidently predict that some participants will still be worrying about the elimination of craft by Big Beer sometime in the ominous future.

 

You're using Coke and Pepsi as an example NOT completely dominating markets??



OK. Point proven.

 

Don't know where you live, but I can find plenty of non-Coke/Pepsi products in the soda aisle. Plus, there have been an abundance of "craft sodas" appear in recent years: Virgil's, Jones, Izzle, Sioux City, Stewart's and others I could look up if you really want the info. So, yeah, I'm using Cole & Pepsi as that example.

 

When you go to a grocery store, sure, you can probably find other options. When you go to any restaurant or fast food place, 95% or more of your beverage options are going to be from coke or pepsi.

 

Ah, now we have a caveat. At any rate, you need to go to other restaurants. I can find the same options when I dine out. Craft sodas are getting quite popular there too. Slowly, like craft beer, but it's happening.

Yeah, if you go to Mickey D's, you're only going to find Coke---or is it Pepsi? (Don't know since I never eat there.) And if you only buy beer at convenience stores, you'll probably only find SAB or InBev options. But if you shop elsewhere you can find plenty of brands. That's the wonderful thing about capitalism: choices.

 

ohhhhhman! someone called someone out on the tweeter!
What did Justice Beaver have to say about it?!

 

That for posting this, I am now following Tony on twitter.

 

Goose Island has a small market share of craft soda....

Side note too, again from what I understand, the two brewpubs in Chicago, are run independantly from AB and brew their own beer. Likewise with the specialties like BCBS and other rarities...I really wonder what % cut AB gets from those...there may be more available and its expensive...but its made in smaller batches and cost more to make. Really interested in what the profit margin is on BCBS coming in at $22 a 4 pack.

 

Did you see his rant about another NorCal brewery calling themselves by a name that was too close to the name of one of Lagunitas' beers? Epic.

 

But that's the part that's threatened by the situation with AB Inbev and Miller Coors. When they dominate so much of the market- including distribution- those two companies have a major influence on what choices you have access to. Not necessarily what choices EXIST, but the access to those that do.

You very accurately mention, in your soda analogy, that one does have choices. But within that tiny segment of the supermarket aisles, and the few restaurants that serve "craft" sodas- it's not like its anywhere near as easy to get those choices as it is to get Coke or Pepsi brands.

We- you, me, the people on this site- are obviously willing to go to the effort of searching out, finding, and purchasing craft beer. And likely other "craft" products as well. But for the larger picture... average craft consumers, "average" bars that carry some craft options... the current trend re: AB Inbev and Miller Coors does not bode well.

Quality discussion though. Whatever side one is on, I think it's something that at least us craft consumers need- NEED- to be aware of.

 

Beer.

By the way- I (and likely others reading) enjoy the fact that you're discussing the whole picture and the implications. Not just posting "Yay, I can get more BCBS! Who cares about anything else!"

Cheers!