Mahou-San Miguel Group to acquire majority stake in Founders Brewing

Discussion in 'Beer News & Releases' started by TomCat11, Aug 29, 2019.

  1. TomCat11

    TomCat11 Devotee (490) Jul 21, 2012 Virginia
    rozzom, Roguer and tillmac62 like this.
  2. JLaw55

    JLaw55 Meyvn (1,376) Jul 10, 2014 Missouri

    Well, there goes the neighborhood.
  3. FBarber

    FBarber Poo-Bah (2,854) Mar 5, 2016 Illinois
    Society Trader

    Wow, thats really interesting. Quite the change from 30% to 90%.
    yakc130, Beer_Economicus and Junior like this.
  4. ypsifly

    ypsifly Meyvn (1,062) Sep 22, 2004 Michigan

    LOTS of pissed off MI craft drinkers today. I could care less Obla Di Obla Da....
    beersampler6 and mkh012 like this.

    REVZEB Poo-Bah (5,417) Mar 28, 2013 Illinois

    NO!!! Another one bites the dust. So much for "brewed for us"....
    Roguer and Junior like this.
  6. FatBoyGotSwagger

    FatBoyGotSwagger Meyvn (1,343) Apr 4, 2009 Pennsylvania

    Doesn't bother me one bit. Looking to pick up some of that barrel aged Sumatra brown if I see it today.
  7. rgordon

    rgordon Savant (966) Apr 26, 2012 North Carolina

    This is no surprise to me. Owners don't kill businesses huge corporate amalgams do. At least in my book.
  8. BeardedWalrus

    BeardedWalrus Disciple (316) Jun 5, 2018 North Carolina

    Looking forward to the threads arguing that pre buyout KBS/CBS is superior to the future editions.
  9. flat_lander

    flat_lander Zealot (546) May 11, 2016 Illinois
    Society Trader

    This was literally my exact thought.
  10. beertunes

    beertunes Poo-Bah (6,228) Sep 24, 2007 Northern Mariana Islands

    Another one bites the dust.

    No real effect on me, don't buy their stuff anyway.
    TrojanRB likes this.
  11. deadwolfbones

    deadwolfbones Initiate (116) Jun 21, 2014 Oregon

    How much less could you care? :wink:
  12. Giantspace

    Giantspace Crusader (717) Dec 22, 2011 Pennsylvania

    Maybe breakfast stout won’t be $60 a case now.

    FLBeerGuy likes this.
  13. FBarber

    FBarber Poo-Bah (2,854) Mar 5, 2016 Illinois
    Society Trader

    Please, they've already been going on since KBS/CBS became readily available. Anytime a brewery removes scarcity from the recipe, you can taste the change ...

    What I'd really love to know is how this buyout will affect the diversity initiative Founders recently started given their recent, um, "troubles".
    Kemosabe, rozzom, cgwami and 14 others like this.
  14. Alexmc2

    Alexmc2 Zealot (534) Jul 29, 2006 Massachusetts

    So, I know this requires some contextual analysis that might get lost amongst the "there goes another one" sentiment that is inevitable with these purchases. However, it appears that San Miguel bought out a number of minority owners giving them an exit and additional control. The 'primary' ownership team is still in place with their minority stake (10%?).

    Personally - I've enjoyed Founders beer for a long time, and will continue to do so. They're a standard for me along with Sierra Nevada. Their reps always seemed pretty above board to me and I have a couple friends who currently work there; all seem happy.
  15. Mebuzzard

    Mebuzzard Poo-Bah (3,553) May 19, 2005 Colorado

    What a shocker. Is anyone surprised?
  16. chipawayboy

    chipawayboy Devotee (430) Oct 26, 2007 Massachusetts

    As Mike said - it’s the American Dream come true for a couple of home brewers. I’m happy for them....and if the beer goes to shit — well to that I sag all things must pass.
  17. sculls65

    sculls65 Aspirant (236) Dec 15, 2008 Michigan

    I'm sad I'm not one of the earliest investors getting a nice return hopefully. I knew they were money they first time I had one of their beers.
  18. alucard6679

    alucard6679 Aspirant (222) Jul 29, 2012 Arizona


    I'll still buy their beer, at least the ones I like. If it goes against your principles I can respect that, but I don't personally care all that much

  19. FatBoyGotSwagger

    FatBoyGotSwagger Meyvn (1,343) Apr 4, 2009 Pennsylvania

    Nope, once I see a brewery take a loan to expand or maintain I know it is only a matter of time before they sell. For me 20% ownership might as well be a majority stake. Like I already mentioned I have given up worrying who owns what and just drinking the beer.
  20. JackHorzempa

    JackHorzempa Poo-Bah (4,128) Dec 15, 2005 Pennsylvania

    Victory 'sold out' to ABV over two years ago and those beers still taste good to me.

    I will continue to support Founders as long as they continue to produce beers I enjoy drinking. This reminds me that I have one bottle of KBS left. Maybe drink that beer this evening as a tribute to Founders!?!

    waldo711, yakc130, redeemer and 14 others like this.
  21. bbtkd

    bbtkd Poo-Bah (2,661) Sep 20, 2015 South Dakota
    Society Trader

    Worry not, "nothing will change" :rolling_eyes:

    They always say that, and it always changes. Why in the world would one company buy another in the same industry and not either merge them or make "improvements"? As a business, they are obliged to increase profits for their owners/stakeholders.
  22. heesu

    heesu Initiate (59) Jul 2, 2012 Michigan

    Brewed for us *
  23. Samlover55

    Samlover55 Savant (955) Oct 8, 2015 New York
    Society Trader

    A lot of hate on this thread, can anyone please explain the difference in quality and taste between 30% & 90% ownership? Being that Mahou has had 30% stock since 2014.
    Lonestar9, waldo711, yakc130 and 7 others like this.
  24. Bitterbill

    Bitterbill Poo-Bah (6,783) Sep 14, 2002 Wyoming
    Society Trader

    I'm getting used to this. Mahou-San Miguel also owns a minority share in Avery. I wonder if that will change as well down the road.
  25. grandrapidian

    grandrapidian Initiate (11) Nov 21, 2016

    Mike mentioned in a talk to my class that at one point that their ownership stake was diluted down to < 1% during the turbulent years. All things aside, this is likely the case with the need to buyout individual investors as the market begins to mature. Their only real growth industry is international at this point, job well done.

    Edit: I'm sure they had greater than 1% at time of acquisition as they've likely received stock based performance comp over the years. That being said, it's hard to imagine them having retained meaningful (voting power) equity through all of this.
  26. waltari

    waltari Initiate (65) Jan 28, 2016 Georgia

    Speaking of Avery, I wish their price point on special releases would go down.
  27. Bitterbill

    Bitterbill Poo-Bah (6,783) Sep 14, 2002 Wyoming
    Society Trader

    So, I have a question. In situations like this, is it usual or unusual for there to be a change in distributor?
    gopens44 and officerbill like this.
  28. jesskidden

    jesskidden Poo-Bah (1,838) Aug 10, 2005 New Jersey

    It can go either way. Constellation, for instance, spent time and money moving Ballast Point to their "Gold" network of Corona/Modelo distributors while Heineken, after buying Lagunitas, said they were keeping distribution as it was. AB typically always moves their "captured craft" brands to AB houses, having to pay or even sue the previous wholesalers.

    In this case, Mahou-San Miguel doesn't really have a "network" as such in the US, compared to Founders well-established now 50 state distribution. I imagine it's working the other way for them, adding/offering the Mahou beers to the existing Founders' distributors portfolio.
    jmdrpi, meefmoff, hopsputin and 9 others like this.
  29. Bitterbill

    Bitterbill Poo-Bah (6,783) Sep 14, 2002 Wyoming
    Society Trader

    Thanks a bunch, S.
  30. nc41

    nc41 Poo-Bah (1,913) Sep 25, 2008 North Carolina

    I can’t blame the owners for cashing out for millions plus still retaining a 5% stake each. The money is vast, hell I bet everyone here with that carrot dangled under the nose would do the same thing. I’d sell it, and move to the Bahamas.
  31. Samlover55

    Samlover55 Savant (955) Oct 8, 2015 New York
    Society Trader

    Foyle and Bitterbill like this.
  32. Bitterbill

    Bitterbill Poo-Bah (6,783) Sep 14, 2002 Wyoming
    Society Trader

    Samlover55 likes this.
  33. hoagzzz

    hoagzzz Initiate (187) Feb 28, 2014 Pennsylvania

    I looked, couldn’t find it!
    officerbill likes this.
  34. ssimpson89

    ssimpson89 Defender (625) Jul 24, 2009 Illinois

    Good for the “founders”. They built a good business with blood, sweat, and tears. They are getting up in years and are reaping the reward of all their hard work. It’s the American dream. Good for them. If the quality remains I’ll continue to buy. If they ruin it ala ABInbev with Goose Island, I’ll move on. Plenty of other good options out there.
    yakc130, nc41, craigo19 and 2 others like this.
  35. Junior

    Junior Defender (617) May 23, 2015 Michigan
    Society Trader

    Weren’t they already living the American dream?
    bigalspangler likes this.
  36. ZebulonXZogg

    ZebulonXZogg Crusader (744) May 5, 2015 Illinois

    People go into business to make money, not keep craft beer drinkers happy. I assume these guys have been successful beyond there wildest dreams, and I'm happy for them.
  37. meanmutt

    meanmutt Meyvn (1,127) Feb 6, 2012 Ohio
    Society Trader

    Haven't bought much Founders beer since they decided to stick us with large format bottles of CBS, but sent 4 packs elsewhere...that one really ticked me off. I know they are doing 4 packs for us this time...but I hold a grudge :stuck_out_tongue:

    I'll probably continue to not buy much Founders.
    Lone_Freighter likes this.
  38. FatBoyGotSwagger

    FatBoyGotSwagger Meyvn (1,343) Apr 4, 2009 Pennsylvania

    As did I looking like next week. New Jersey got it last week. The weather should be more appropriate for it next week.
  39. Junior

    Junior Defender (617) May 23, 2015 Michigan
    Society Trader

    Surprised by this. In the long run, it won't really matter much as there are so many other local options out there. I will still buy the barrel aged stuff (KBS, CBS and Backwoods Bastard are fantastic). I'm sorry, but others just can't complete on price/quality today. We will see what happens with those. Other purchases and visits will be limited. I stopped buying Lagunitas, Ballast Point and Shorts when they were bought out. Those were pretty easy as I didn't buy a bunch of any of them.I, for one, do care who owns what.