Poll: Would you sell out?

Seriously? Oh hell yes I would without any hesitation whatsoever. So would anyone else if they named the right price. I just wish someone would give me the opportunity to be a sell-out.

 

Don't you mean...conditions required to "buy in?"

It really is a double-edged sword isn't it? Some owners are so entwined in their business that they could never sell their company (either a portion or whole) because they would somehow lose a part of the "baby" they created. Others are so entwined that they see that true success only lies in the ability to "sell out" in order to springboard the brand (their "baby')...leaps and bounds ahead of others. Its all how you define: "success."

It always boils down to money. One way or another. Anyone who doesn't think so is fooling themselves....one way or another. Everyone has their price.

Lets face it. Sometimes people want to sit at the "big boys" table. There is nothing wrong with that. Sometimes the "cost" is too high...or the "price" isn't high enough.

Anyway, so how much for my imaginary brewery?





Make me an offer.

(Just remember, the first guy to talk talk money loses.)

 

You should have not used the word sell out because I bet you the poll would be different if you had put " would you accept large payment under circumstances"

 

Since maybe was not an option, I went with yes. The yes has many caveats though. One being if the amount of money was too ridiculous to turn down obviously, but the most important, which was touched on in one of the first replies, if there was nobody to carry on my vision. I am speaking pretty first hand as a small/private business owner/operator. My great grandfather started our business over 8 decades ago, and my father was approached and received a significant offer from a larger corporation some time ago that my family turned down because they wanted the opportunity to be there for the future generations. What if the day comes when nobody in those subsequent generations is interested though? Do we just close the doors and walk away from it? The bottom line is there are too many factors to make a broad sweeping judgment on what companies do to secure their financial futures. Many include the impact to your community, especially if a small one like mine, that has supported you/enabled you to get to that position.

 

Yes, if I was able to get a substantial amount over fair market value I would 100% "sell out." If not, I would pass it on to my kids at fair market value.

I know many of you are saying you would take the payout and start another brewery, but do you think AB-Inbev, Heineken, ect makes these guys sign a no compete clause?

 

Above is why I answered no. Very well put.

This whole ordeal reminds me of George Costanza and his, "It's not a lie if you believe it."

I'm sure this point has been made, but it's a valid one: It's not selling out if the goal is to sell out. Or I guess technically it is still selling out by definition, but the point is that some breweries are built to sell out. Karbach springs to mind -- Karbach's sole purpose for existence looked like the pursuit of money years ago. They expanded quickly, then continued to expand, then expanded even more, and the expansion rate seemed so fast as to be unsustainable. From Day 1 it appeared that Karbach's owners envisioned selling out to AB-In Bev or, if they had to settle for second prize, MillerCoors.

They did. So they win. They win the Sell Out of the Year award.

The people who think that's great for the industry might be right. We won't know until 2050 or 2070 or 3000, when we're either back to two breweries in the U.S. (or two corporations accounting for all the beer brewed here) or we're at 20,000 breweries and growing or we're somewhere in that vast middle.

 

I voted yes but the circumstances ($$) would have to be right. One example posted said your in business for 10 years, your 40 years old making 30m a year. They offer 600m...I am running away with that deal no matter what. If I am offered enough to live comfortably well into my 70s I am gone.
Oddly I have ran across people who HAVE to work to enjoy life or feel useful. I can enjoy myself traveling, walking, going for a drive, watching TV or simply enjoying a sunrise/sunset. Some people get no satisfaction out of those things and find them a waste of time, to each their own.
I like what I do but would leave/quit/sell out tomorrow if the financial opportunity existed where I can enjoy myself for life not working. No matter how much you like what you do, it's still a business each way. If you stop showing up, they will stop paying you. If they stop paying you, you will stop showing up.

 

I voted yes but a lot would depend on why I was selling the brewery in the first place.

 

100% I would sell out. Work hard, build up the brand, and sell out for a huge payday. Then, I would just open my own brewery away from the one I sold and within the parameters of the buyout agreement.

 

Without additional context, info, or "game scenario" (no offense, OP), each one of us is answering given our own age, inclination, etc. So, what the hell:
For the next 15-20 years, I'd be all "hell no I won't sell... why would I sell out to the man..?" and as I approached retirement or wanted to do another capital-intensive project with...I don't know... friends, then I would sell out. The good news to every sell-out: there's always another brewery or nano-brewer in the making every time there's a sell-out to a larger brand.
Cheers... regardless of your position.

 

I'm 33 years old. I live a comfortable life but am not rich. Let's say I spent the last five or ten years of my life building a brewery from the ground up. Securing start up capital and loans, running feasibility reports, constructing the building, cultivating my brand, trying to get distribution, etc. I was totally passionate about this for years, it was my baby. Then along comes Giant Evil Souless Corporation (who just happens to employ tens of thousands of people across the country) and they offer me millions of dollars for my brand. Of course I'm taking the money. I'm 33, millions (if not upon millions) of dollars would have me set for life. Especially in this weak economy. I invested my time, money, and sweat equity into this company for years and then people have the nerve to accuse me of selling out when it all finally pays off big? GTFO. Take your self-righteous holier-than-you turned up nose and stick it up your ass. What I'd more than likely do is take some of the money and in turn open up a super small, yet super well funded microbrewery specializing in the couple styles I'm truly passionate about. I'd source the best ingredients I could and make the best and most experimental beers I wanted to completely at my own discretion.

Wtf is wrong with all these crazy craft fan boys screaming about selling out? This is a business for fuck's sake. Then there are whiny bitches like Jed S. Holmes who creates WickedWeedSoldOut.com so he can talk about how empty and greedy WW is and how enlightened and caring he is. His whole letter reeks of idealized naivete. The fact of the matter is that there is a repulsive elitism staining the modern craft scene. And it's getting old. If you want to drink so that you feel superior then subscribe to Wine Spectator.

 

Well, this site is clearly not CraftBeerAdvocate.

 

Well, since there's no widely accepted definition of Craft Beer (as opposed to the BA definition of Craft Brewery) I don't find that surprising. :-)

 

A lot of folks are saying that they'd take the money and open another brewery. No, no you wouldn't. You would sign a non-compete clause in your contract for that fat check. You would brew for that company or you don't brew, for the period of time specified in that contract. Look at Dick Cantwell, formerly of Elysian; his two partners voted to sell, he didn't want to. He still can't brew commercially, which is why he's taken various other jobs in the industry.

There's an old saying: if you lie down with dogs, you wake up with fleas.

 

Someone mentioned this in a previous thread on this topic. The difference is, very few people have a passionate love of software, unlike a specialty item like beer. Sure folks have the interests, and skills to create that software, but how many are getting into that industry out of love of software? Sure, some folks start a brewery with the intent to sell out at the first chance (Golden Road? Ten Barrel?), but most breweries are started folks with at least a deep interest in the creative side of the beer industry.

How many tech workers spend their free time visiting other tech companies, and looking at their systems? Plenty of brewers go to other breweries, try the beers, and see how the other guy does things. Tech and beer, and any industry really, has room for both approaches, but beer seems to have fewer who seem to be in it for a cash grab.

 

Hi Todd, big fan of the site.
IMO, a lot of the users of this site have already established that they are unbelievable smart and possess extensive business savvy, etc.
In that case, the question implies we know what is involved with "selling out" and the OP asked us to provide context around the vote. Also, it's already implied that "selling out" is unholy and all of the negative aspects are assumed. At the same time, I understand your point.
As we can see by the responses, people want to analyze the question to death, rather than answer the question and provide context around why or why they wouldn't "sell out".

I voted yes. In my scenario, I'm a successful and responsible business owner who cares about his employees, community and other stakeholders. I've put in the research and thought behind the offer and potential impacts of "selling out". I've considered the impact it would have on all stakeholders and the potential future(s) of the company after "selling out".
If the consumers loved my beer and company and loved my passion for brewing, as soon as I decide to accept a deal, why is it automatically assumed that I didn't sign a contract that allows me to be rewarded for my efforts and success, while at the same time be responsible and respectful of my stakeholders? This may not always be the case, but it may not always be a take the money and run situation either.

 

There are a bunch of good points in here. Got me thinking:
Does a brewery selling out really hurt small breweries? Selling out to big beer causes many craft beer drinkers to stop drinking that beer. Wouldn't that actually help other local small breweries?
Why do we care if a brewery sells out? For all the people that bash an instance of selling out, do they actually care about the impacts of that sellout (other than that beer might not be as good and they enjoy that beer)? My guess would be no.
Why does the justification of the sellout matter? Why does a business person need to get into the thought behind their decision? If you really care about that, then find out why they are in business BEFORE you start drinking their beer. Also, brewers don't ask you to justify why you are drinking other beers or why you stop drinking their beers or talk junk if you do?
We as beer consumers have become so entitled with what we expect of the entire industry.
The market will correct itself. If everybody stops drinking brands bought by big beer, maybe they would stop snatching up successful breweries. When all else fails, drink what you want, don't drink what you don't want.
Lastly, it's not selling out. It's a business decision and a business deal. Beer is business...some beer is "big beer", some is "local craft".
Don't hate the player, hate the game.

 

Ultimately and unfortunately happiness does depend on finances. However I don't mean you have to be rich to be happy. You just have to have enough money to live and have a reasonable amount of financial security. If you live in a 500/mo apartment with expenses paid this may be as little as 20k take home a year. So the amount of money needed is dependent on lifestyle. Which leads me to the actual point: once someone realizes this reality, if selling out is a required step in achieving it, then they will sell out. Add on the factor of family (wife wants nice things, grandparents need medical care, kids need college paid, etc) and selling out in one way or another is probably a factor in everyone's life, no matter what they say. I work in a field where I work with a lot of elderly patients and I can say for sure that ones who didn't "sell out", a.k.a. planning for a more prosperous duture, are almost unanimously less happy than their sell out counterparts. That's why i did sell out by choosing to go to school instead of pursuing music, gave up homebrewing and hopes of one day starting my own brewery, and just recently changed my new job contract to one that will pay me more for less work (seems like an obvious answer but it wasn't at first). Before you stand by your values you have to make a real assessment of whether we're talking about things like "don't lie" and "don't steal", versus things like "hey, someone just offered to buy my brewery for millions of dollars, which will make me comfortable for life if I play my cards right, maybe it's time to cash out..."

 

Generally non competes aren't for too long. In general the duration is probably about how long it would take you to build the business plan, find a location, obtain proper licenses, obtain permits, build the facilities, etc.. Non compete laws are also different depending on the state. I'm not sure you could create a non compete that would bar being a brewer commercially in its entirety even for a short duration. You might not be able to distribute beer commercially through distributors but you can probably self distribute or sell at a brewpub (I'm no lawyer so I can't say for certain). Interestingly as well I don't believe the beer recipes are protected, only the beer names.

 

Because small breweries can't afford to do this: http://www.bostonglobe.com/business...4GlD6BTUTSkpQwMuP4uN/story.html?event=event25

Every Goose Island, Ten Barrel, Elysian, Lagunitas, Golden Road, Wicked Weed, et al we buy, just gives the big brewers more weapons to use against small brewers.