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Unread 2015-12-22, 11:26 AM   #1
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Default Anheuser-Busch making moves this week

Anheuser-Busch to acquire Breckenridge Brewery






NEW YORK and LITTLETON, Colo.—Anheuser-Busch today announced it will acquire Colorado-based Breckenridge Brewery. With this agreement, Breckenridge Brewery is the seventh craft brewery to join The High End, Anheuser-Busch’s business unit of craft and import brands.


“We’re excited about the partnership and have been encouraged to continue on our path and become more innovative moving forward,” said Todd Usry, President of Breckenridge Brewery. “I’m a believer in what The High End is focused on accomplishing and we are flattered that our team was chosen to help guide that journey. We’re looking forward to utilizing resources like decades of research and brewing expertise as we continue to create new beers.”
Available in 35 states, Breckenridge Brewery will sell approximately 70,000 barrels of beer in 2015. The new brewery and Farm House restaurant in Littleton have positioned the brewery for future growth. The brewery will continue to make its unique portfolio of beers – ranging from their Vanilla Porter, to Agave Wheat, to their core brands, seasonal specialties and barrel-aged beers.


“Breckenridge Brewery has a long history of innovation and they continue to brew new and exciting beers, from their specialty brews like the Mountain Series that celebrates the brewery’s origin as a ski town brewpub, to their planned nitro can series,” said Andy Goeler, CEO, Craft, The High End. “They are innovative and have built an amazing business that’s enabled them to get their great beers to fans across the country. We look forward to even more growth together.”


Breckenridge Brewery will join Goose Island Beer Company, Blue Point Beer Company, 10 Barrel Brewing, Elysian Brewing Company, Golden Road Brewing and Four Peaks Brewing Company as part of The High End’s craft beer portfolio.
The partnership includes the company’s new production brewery and Farm House restaurant in Littleton, and original brewpub and current innovation center in the mountain town of Breckenridge.


The current management group, Breckenridge-Wynkoop, will continue to own and operate its remaining businesses including: Ale House at Amato’s in Denver; Breckenridge Ale House in Grand Junction; Breckenridge Colorado Craft in Denver; The Cherry Cricket in Denver; Mainline in Fort Collins; Phantom Canyon Brewing Co. in Colorado Springs; and Wynkoop Brewing Company in Denver.


Anheuser-Busch’s partnership with Breckenridge Brewery is expected to close in the first quarter of 2016, subject to customary closing conditions. Terms of the agreement were not disclosed.



Anheuser-Busch to acquire London’s Camden Town Brewery







(Press Release)
LONDON—Camden Town Brewery today announced that it is partnering with Anheuser-Busch InBev (AB InBev) to pave the way for further growth and expansion. The partnership will enable Camden Town Brewery to expand its operations, bringing more of its popular canned, bottled and kegged beer to more people. The deal will see AB InBev acquire Camden Town Brewery.


Founded by Jasper Cuppaidge, the owner of The Horseshoe pub in Hampstead, Camden Town Brewery started full production in 2010. From an original staff of three people, it now employs a team of 95 and has sold 12 million pints in 2015. Their beers are available in over 1000 pubs, bars, restaurants and retailers around the UK, as well as further afield in Sweden, Australia and Japan.


The deal follows a successful bid by Camden Town Brewery to raise capital via crowd funding and will support the company’s plan to build a second brewery in London, employing 30 more people and meeting growing demand for its products. The partnership will enable Camden Town Brewery to brew more of its own distinctive beers and continue to innovate, while maintaining its focus on quality.
Jasper Cuppaidge said: “Our growth has been phenomenal. To keep up with the demand for our distinctive beers we’ve had to look at expanding our brewing capacity and team. AB InBev is going to be our strategic partner, helping us maintain the character and quality of our beers, while giving us access to the investment we need to drive Camden to being ever more successful at home and abroad.


“Opportunities like this come rarely. We believe we must have the ambition to grab this opportunity and turn Camden Town Brewery, and the quality it stands for, from being an outstanding London brewer to being a world famous one.”
Iain Newell, European Director of Specialities & Craft, AB InBev, said: “We have a passion for great beer. Camden Town is a creative business with a great range of brands that will complement our existing portfolio. We will support their ambitious plans for the future, using our expertise and global distribution network to help them get their great beer to more people.”


The deal is expected to close by 7th January 2016, following which Camden Town Brewery will become a wholly-owned subsidiary of AB InBev. Terms of the agreement are not being disclosed.


Anheuser-Busch to acquire Four Peaks Brewing Company








NEW YORK and TEMPE, Ariz.—Today, Anheuser-Busch announced an agreement to acquire Four Peaks Brewing Company, the leading craft brewer in the state of Arizona. Four Peaks will represent the sixth operation to join the growing list of innovative and progressive craft breweries within The High End, the company’s business unit providing unique craft and import brands.


“For 20 years we’ve had more amazing experiences than I can count doing what we love to do most – brewing great beer and sharing it with a growing craft community in Arizona that has supported us from day one,” said Andy Ingram, Four Peaks co-founder. “We’re excited to join the enthusiastic team and tap into their resources to expand our footprint and share our beer with even more people moving forward.”


Four Peaks, which opened its doors in 1996, expects to sell approximately 70,000 barrels of beer in 2015. The brewery will continue to brew their award-winning beers, including their flagship beer, Kilt Lifter, a Scottish-Style Ale that accounts for more than 60 percent of the brewery’s sales. Four Peaks also produces popular limited releases like cask versions of its mainstay beers and its four-time World Beer Cup-medaling Hopsquatch Barleywine. In addition to strong mainstay beers and limited releases, Four Peaks has seen great success with newer brews like its Pumpkin Porter, which grew more than 150 percent last year.


“As the leading craft brewery in Arizona, we’re proud of what we’ve built and of our brewing heritage. We’re excited to build on that success with The High End,” said Jim Scussel, Four Peaks co-founder. “Arizona has a rapidly-growing fan base for craft beer and we look forward to more opportunities to share what Four Peaks is about within our local community, and beyond,” added Randy Schultz, Four Peaks co-founder.


Four Peaks will join Goose Island Beer Company, Blue Point Brewing Company, 10 Barrel Brewing, Elysian Brewing Company and Golden Road Brewing as part of the growing portfolio of exceptional craft beers within The High End.
“It’s exciting to partner with another group of passionate craft beer founders, this time in the great state of Arizona,” said Andy Goeler, CEO, Craft, The High End. “What Andy, Jim, Randy and the team have been able to accomplish is remarkable and a testament to their culture and portfolio of great beers. We look forward to learning from each other and bringing more Four Peaks beers to craft lovers in the Southwest.”


The partnership includes the company’s three primary locations: the 8th Street Brewery & Pub in Tempe; the Wilson Street Brewery & Tasting Room in Tempe; and the Grill & Tap in Scottsdale, in addition to continuing their partnership at the Sky Harbor Airport facility. Anheuser-Busch’s acquisition of Four Peaks is expected to close during the first quarter of 2016. Terms of the agreement were not disclosed.


First Beverage Group acted as financial advisor to Four Peaks, and Spencer Fane Britt & Browne provided legal counsel.


About Four Peaks
Four Peaks Brewing Company, based in Tempe, Ariz., was founded in 1996 and is commonly regarded as a local brewery and restaurant that provides consistent high-quality beer, food and service in a community atmosphere. Since the day they opened their doors at the 8th Street Brewery & Pub in Tempe – their first location – Four Peaks Brewing Company has been committed to crafting exceptional beers that they can share with others. The brewery currently distributes its brands in the state of Arizona. For more information, visit

http://www.fourpeaks.com or be social at fb.com/fourpeaksbrew and @fourpeaksbrew on Instagram and Twitter.



About Anheuser-Busch
For more than 160 years, Anheuser-Busch and its world-class brewmasters have carried on a legacy of brewing America’s most-popular beers. Starting with the finest ingredients sourced from Anheuser-Busch’s family of growers, every batch is crafted using the same exacting standards and time-honored traditions passed down through generations of proud Anheuser-Busch brewmasters and employees. Best known for its fine American-style lagers, Budweiser and Bud Light, the company’s beers lead numerous beer segments. Budweiser and Bud Light Lime Lime-A-Rita were named Brands of the Year for the Beer and the Spirits, Malt Beverages and Wine categories, respectively, by Ace Metrix® in 2014. Anheuser-Busch is the U.S. arm of Anheuser-Busch InBev and operates 17 local breweries, 21 distributorships and 23 agricultural and packaging facilities across the United States. Its flagship brewery remains in St. Louis, Mo., and is among the global company’s largest and most technologically capable breweries. Visitor and special beermaster tours are available at its St. Louis and five other Anheuser-Busch breweries. For more information, visit www.anheuser-busch.com.


About The High End
The High End is a business unit of Anheuser-Busch, created to provide its unique craft and European import brands with autonomy and support for growth, while fostering a collaborative environment for the brightest brewers in the beer community. The High End brings dedicated resources to support the growth of its brands, create successful partnerships and deliver more variety to consumers.



Established now, The High End includes brands such as Stella Artois and Shock Top, along with craft breweries Goose Island, Blue Point, 10 Barrel, Elysian and Golden Road.
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Unread 2015-12-22, 12:06 PM   #2
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Lame.
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Unread 2015-12-22, 01:33 PM   #3
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FUCK YOU SO HARD A-B!!! You have ruined so many damned good beers, this year alone.

Goose Island, Elysian, now Breckenridge? Goddamnit.
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Unread 2015-12-22, 01:39 PM   #4
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Not just about ruining good beers...as I don't think they will ultimately take over the brewery and destroy their ability to make craft beer choices...but this is a strategic move to push out the other craft breweries. Have enough leverage with liquor stores to incentivize pushing their own breweries, you push out the other guys, then you can begin phasing back the production levels of the craft market.

Good ol capitalism at work.
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Unread 2015-12-22, 01:57 PM   #5
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unless you believe that A-B is enacting a master plan like the one Scooby outlines above, I don't know that i understand how A-B is supposedly ruining these beers. I may have missed reports of changes to production/ingredients/etc but I've yet to hear that A-B will be doing much more than owning the companies and giving them greater distribution channels, increased access to research, etc.

A-B will most likely fuck with their employees by making it less fun to work there in the endless pursuit of efficiency but A-B is out to make money. these breweries are presumably profitable if they're doing good work so why fuck with that much if you're A-B? the brewers took the risk and put in the hours necessary to build their business and then took a payday when A-B came calling.

again, unless your view is that this is some kind of master plan to ruin craft brewing/push them out of the market, why does it matter who owns the brewery if the beer is/stays good?
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Unread 2015-12-22, 02:02 PM   #6
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At least for Goose Island and Elysian, brewers for both of those breweries have said that since the AB take over, they have changed the recipes and began using lower quality products in the beers to cut costs.

Goose Island isn't even made in Chicago anymore. It is now made in an AB brewery in New York.

EDIT: And also, some is made in Canada, now.

Also, as to why fuck with it? That is extremely easy to answer. profit margins and stock holder interest. Just like literally every single other corporation ever.

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Unread 2015-12-22, 02:20 PM   #7
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Originally Posted by phreakdna View Post
unless you believe that A-B is enacting a master plan like the one Scooby outlines above, I don't know that i understand how A-B is supposedly ruining these beers. I may have missed reports of changes to production/ingredients/etc but I've yet to hear that A-B will be doing much more than owning the companies and giving them greater distribution channels, increased access to research, etc.

A-B will most likely fuck with their employees by making it less fun to work there in the endless pursuit of efficiency but A-B is out to make money. these breweries are presumably profitable if they're doing good work so why fuck with that much if you're A-B? the brewers took the risk and put in the hours necessary to build their business and then took a payday when A-B came calling.

again, unless your view is that this is some kind of master plan to ruin craft brewing/push them out of the market, why does it matter who owns the brewery if the beer is/stays good?
It's not a matter of believing it or not...it's what they are doing.

http://www.wsj.com/articles/craft-br...lan-1449227668

Quote:
Anheuser-Busch InBev NV’s new plan to reverse declining volumes in the U.S.—by rewarding distributors who focus on brands like Budweiser and Bud Light—is raising alarm among craft brewers who worry it will make it harder to get shelf space for their IPAs and porters.

The world’s largest brewer last month introduced a new incentive program that could offer some independent distributors in the U.S. annual reimbursements of as much as $1.5 million if 98% of the beers they sell are AB InBev brands, according to two distributors who requested confidentiality because they were asked not to discuss the plan. Distributors whose sales volumes are 95% made up of AB InBev brands would be eligible to have the brewer cover as much as half of their contractual marketing support for those brands, which includes retail promotion and display costs.

AB InBev, which introduced the plan at a meeting of distributors in St. Louis, estimates participating distributors would receive an average annual benefit of $200,000 each.

RELATED

SABMiller Deal Still Faces Hurdles (Nov. 11)
AB InBev, SABMiller Merger Could Offer Rivals Opportunities (Oct. 13)
Anheuser: Regulators Have Questioned Pending Distributor Buyouts (Oct. 12)
Beer Giants Cultivate Their Crafty Side (December 2014)
The company, which has more than 500 distributors nationwide, said the incentive program is part of a three-year plan to restore growth in AB InBev’s most profitable market. It includes additional marketing and sales commitments of about $150 million next year.

Since acquiring Anheuser-Busch Cos. in 2008, the brewer’s production has fallen by 11 million barrels and its market share has declined to 45% from 49%, according to industry researcher Beer Marketer’s Insights.

“We are focused on improving our offerings for consumers, and our new voluntary incentive program better equips wholesalers to compete in the future,” said Ricardo Melo, Anheuser-Busch vice president of sales strategy and wholesaler development, in a statement.

The new plan is being unveiled while the company seeks Justice Department approval of its approximate $108 billion takeover of SABMiller PLC. To avoid antitrust problems, AB InBev already agreed to sell SABMiller’s stake in U.S.-based MillerCoors LLC to Molson Coors Brewing Co. AB InBev Chief Executive Carlos Brito is scheduled to discuss the merger’s impact on consumers and craft brewers Tuesday before a Senate judiciary subcommittee on antitrust.

That acquisition and other AB InBev moves have stirred up competition concerns. The California Attorney General and Justice Department are investigating AB InBev’s recent acquisition of two California distributors to determine if those acquisitions make it harder for craft brewers to get beer on shelves, The Wall Street Journal previously reported. The brewer also came under fire last month from Senators Angus King (I., Maine) and Jeff Merkley (D., Ore.) who wrote the Justice Department, urging it to ensure AB InBev doesn’t “squeeze out America’s craft brewing industry” and “constrain beer distribution.”

Craft brewers fear AB InBev’s new incentive program could do just that. They say the program encourages AB InBev distributors around the country to drop competing brewers and discourages them from stocking new brewers. They added it could make it impossible to get distribution from some of the nation’s strongest distributors.

The U.S. has a three-tier distribution system in which brewers must sell beer to distributors who then sell it to retailers. The bulk of the nation’s beer distribution is handled by distributors with agreements to sell either AB InBev or MillerCoors beers, according to the National Beer Wholesalers Association.

AB InBev told its distributor network that they could qualify for the incentive program if craft brewers they carry produce less than 15,000 barrels or sell beer only in one state. But Lagunitas Brewing Co. founder Tony Magee said the cap could curb distributors’ motivation to increase craft-beer sales because rising demand could push production beyond the 15,000-barrel threshold.

“It’s a very Machiavellian lever they’re pulling,” said Mr. Magee, who recently sold a 50% stake in his company to Heineken NV.

Mr. Melo said the program is voluntary and nothing “prevents distribution of other brands.” He said distributors could sell 93% of “small craft brewers’ products” and be eligible for rewards. Most of the 4,000-plus craft brewers produce less than 15,000 barrels.

ENLARGE
At least one distributor has dropped a craft brewer as a result of the incentive program. Deschutes Brewery President Michael Lalonde said Grey Eagle Distributing of St. Louis last week decided it will drop the Oregon brewery behind Mirror Pond Pale Ale because it “had to make a choice to go with the incentive program or stay with craft.”

Grey Eagle Distributing didn’t return calls for comment.

Adding to craft brewers’ concern is AB InBev’s acquisition of five craft breweries. The Belgian-based brewer now can offer distributors AB InBev beers from formerly independent brewers like Los Angeles’ Golden Road and Chicago’s Goose Island.

Ninkasi Brewing Co. founder Nikos Ridge said between those acquisitions and the incentive program AB InBev is “basically saying, ‘We would like to shut down a massive pillar of the United States distribution system to craft.’”

In 1997, another Anheuser-Busch incentive system drew a Justice Department investigation. The so-called “100% Share of Mind” program included incentives and restrictions to dissuade distributors from carrying smaller brands. The probe ended without legal action. Craft brewers have tripled their market share since then to more than 9%, according to Beer Marketer’s Insights.

AB InBev has offered incentive programs since then, but distributor participation has fallen to around 38%, according to the company. It aims to double participation in three years behind the new rewards plan.

“It is a competitive marketplace, and enhancing our incentive program can help drive growth for our distributors and us,” Mr. Melo said.
They can't change what their customers want, so they have to go around them, buy up what they can in the craft beer market, give the distributors the option to still be able to sell craft brews (AB brands) at 98% and for huge incentives which then pushes out the other guys.

It's fairly easy to see what they are doing.
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Unread 2015-12-22, 02:26 PM   #8
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Same model Intel used to fuck AMD out of the processor game. Works alarmingly well.
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Unread 2015-12-22, 02:47 PM   #9
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Originally Posted by Keboh View Post
At least for Goose Island and Elysian, brewers for both of those breweries have said that since the AB take over, they have changed the recipes and began using lower quality products in the beers to cut costs.

Goose Island isn't even made in Chicago anymore. It is now made in an AB brewery in New York.

EDIT: And also, some is made in Canada, now.
where is this stated? I've not found any of those quotes.
and again, why do you give a shit if a beer is brewed in Chicago vs New York. is a beer brewed in 200gal tanks necessarily better than beer brewed in 2500gal tanks? do you believe that you could taste the difference between the two (pre purchase vs now) and say that the pre-AB beer is better for either?
Quote:
Also, as to why fuck with it? That is extremely easy to answer. profit margins and stock holder interest. Just like literally every single other corporation ever.
so do you not think that the previous owners made changes based on profitability?
if AB makes a change that makes the beer noticeably worse, do you not think that affects profitability?

believe me, I'm all for running down Carlos Brito with a truck in the street (based primarily on the fucking of my friends and in-laws in StL) but imo, is the negative changes - to employees and products - that deserve condemnation, not just the standard ebb and flow of capitalism.
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Unread 2015-12-22, 03:01 PM   #10
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It's not a matter of believing it or not...it's what they are doing.

http://www.wsj.com/articles/craft-br...lan-1449227668

They can't change what their customers want, so they have to go around them, buy up what they can in the craft beer market, give the distributors the option to still be able to sell craft brews (AB brands) at 98% and for huge incentives which then pushes out the other guys.

It's fairly easy to see what they are doing.
I'm still a bit fuzzy on why AB buying those breweries is being connected to their admittedly 'strong-arm' tactics with the distributors... those breweries' products would presumably be included as part of the % of AB-InBev family of products for those distributors so they wouldn't see declining availability as a result - in fact they may well see the opposite as distributors are incentivized to carry them so they are distributing more than Bud, Bud Light, etc.

its clearly a fiscal move to push distributors to carry AB products almost exclusively but that's a market move for their company in general, not a plan to buy GI, Elysian, etc and then strangle them by lowering quality, etc.

*also its slightly ironic to have the Lagunitas CEO complain when he sold to Heinekein
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Unread 2015-12-22, 03:07 PM   #11
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where is this stated? I've not found any of those quotes.
and again, why do you give a shit if a beer is brewed in Chicago vs New York. is a beer brewed in 200gal tanks necessarily better than beer brewed in 2500gal tanks? do you believe that you could taste the difference between the two (pre purchase vs now) and say that the pre-AB beer is better for either?
You are kinda missing the whole reason people like craft beers. Part of the appeal is the fact these beers are typically brewed in small, local breweries where you can go and get to know the people who actually brew the beer and support them one tasty ounce at a time.
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Unread 2015-12-22, 03:27 PM   #12
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I'm still a bit fuzzy on why AB buying those breweries is being connected to their admittedly 'strong-arm' tactics with the distributors... those breweries' products would presumably be included as part of the % of AB-InBev family of products for those distributors so they wouldn't see declining availability as a result - in fact they may well see the opposite as distributors are incentivized to carry them so they are distributing more than Bud, Bud Light, etc.

its clearly a fiscal move to push distributors to carry AB products almost exclusively but that's a market move for their company in general, not a plan to buy GI, Elysian, etc and then strangle them by lowering quality, etc.

*also its slightly ironic to have the Lagunitas CEO complain when he sold to Heinekein
AB is threatened by the craft beer market.

Macro beer sales decline as Micro beer sales increase, but while craft beer has a strong presence, the overall volume isn't that high in comparison to what AB is able to move in large quantities...for now.

Buying the micro breweries allows them to incentivize the distributors to drop some of the other craft breweries to keep the total % of AB brands high.

AB cannot buy all the micros, and they can't change the demand for the micros, but if they can incentivize distributors to lower their volume of non-AB owned micros in favor of AB brands, then they can better control the market, and the growth of those non-AB micros.

A + B - C = AB
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Unread 2015-12-22, 03:56 PM   #13
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AB is threatened by the craft beer market.

Macro beer sales decline as Micro beer sales increase, but while craft beer has a strong presence, the overall volume isn't that high in comparison to what AB is able to move in large quantities...for now.

Buying the micro breweries allows them to incentivize the distributors to drop some of the other craft breweries to keep the total % of AB brands high.

AB cannot buy all the micros, and they can't change the demand for the micros, but if they can incentivize distributors to lower their volume of non-AB owned micros in favor of AB brands, then they can better control the market, and the growth of those non-AB micros.

A + B - C = AB

AB can do as they please, but as long as there are places like us that will pay for the beers we want on our menu, there will be a distributor that is willing to sell them to us.
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Unread 2015-12-22, 04:35 PM   #14
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You are kinda missing the whole reason people like craft beers. Part of the appeal is the fact these beers are typically brewed in small, local breweries where you can go and get to know the people who actually brew the beer and support them one tasty ounce at a time.
I guess you're right... I can't wrap my head around the idea of drinking a product for a reason other than it tastes better than others/its the taste I want to drink.

I thought the reason people liked craft beers is because they liked the taste of them more than they liked the taste of other products - I didn't realize that it was more about supporting small businesses than it was about taste.

sarcasm/snide aside:
I get the concept of supporting businesses in your local economy, the concept of supporting small businesses but imo, all of that is subservient to taste. if a product tastes better than another, I'm going to drink it. if they taste essentially the same to me? then I consider outside factors but I'm not going to drink Row Hard root beer just because its made in Columbia despite thinking it tastes like jock-strap flavored malt liquor... I don't personally know who owns the brewery that makes Row Hard and them making $2 off of me doesn't do me anymore good than the people I don't personally know that own Coney Island making that same $2 off of me. I don't even drink beer but I've been on dozens of brewery tours because I like the chemistry and the passion of the people doing it, that being said when it comes time to put down money, so long as the company I'm supporting isn't clubbing baby seals or raping villagers? its about what tastes good.
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Unread 2015-12-22, 04:46 PM   #15
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AB can do as they please, but as long as there are places like us that will pay for the beers we want on our menu, there will be a distributor that is willing to sell them to us.
exactly. AB can try to manipulate the market as much as it wants but people are going to drink what they want/find a place that will cater to that desire.

and that demand will guarantee that there is a revenue stream for a distributor to exist in our capitalist market. is AB trying to make it harder for new brewers to get into the market? of fucking course they are. that's their responsibility to investors and to their own employees. its the same reason they made those (still funny) commercials tying craft brewers and consumers to ridiculous hipsters... regardless of the truth of it, they are trying to keep customers from trying products other than theirs/make it harder for that to happen.

its easy enough to argue that AB is grasping tightly to a dying market share by continuing to push substandard products on the market but in the age of the internet and places like Yard House, etc that wasn't working... so what are they doing instead? trying to figure out what other people are doing that they aren't and its simply cheaper to acquire those properties/breweries than it is to build a brand from scratch of their own. that's capitalism. and those same hardworking brewers that 77Nova wants to meet decided that they were either A. ready to cash in and said 'fuck you' to their customers B. duped by AB into giving them control of their companies C. enticed by what AB was offering in terms of personal gain and potential improvement of process/distribution/research/marketing/etc for their company.
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Unread 2015-12-22, 04:49 PM   #16
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there's a documentary on Netflix about this very thing from someone that was number 2 at Boston Brewing Co. that set off on her own, and she explains the bullshit from AB
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Unread 2015-12-22, 05:08 PM   #17
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I guess you're right... I can't wrap my head around the idea of drinking a product for a reason other than it tastes better than others/its the taste I want to drink.

I thought the reason people liked craft beers is because they liked the taste of them more than they liked the taste of other products - I didn't realize that it was more about supporting small businesses than it was about taste.
It is for most but there's alot of people out there that won't drink a product solely because its owned by macro. Even if the recipes are unchanged and it still tastes great. Almost all craft brewers do it for the love of the beer, and not money specifically. So when a brewery is bought it changes the mindset for some.

I don't buy AB or Corona products, but I will drink the shit out of some Ballast Point
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Unread 2015-12-22, 05:10 PM   #18
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exactly. AB can try to manipulate the market as much as it wants but people are going to drink what they want/find a place that will cater to that desire.

and that demand will guarantee that there is a revenue stream for a distributor to exist in our capitalist market. is AB trying to make it harder for new brewers to get into the market? of fucking course they are. that's their responsibility to investors and to their own employees. its the same reason they made those (still funny) commercials tying craft brewers and consumers to ridiculous hipsters... regardless of the truth of it, they are trying to keep customers from trying products other than theirs/make it harder for that to happen.

its easy enough to argue that AB is grasping tightly to a dying market share by continuing to push substandard products on the market but in the age of the internet and places like Yard House, etc that wasn't working... so what are they doing instead? trying to figure out what other people are doing that they aren't and its simply cheaper to acquire those properties/breweries than it is to build a brand from scratch of their own. that's capitalism. and those same hardworking brewers that 77Nova wants to meet decided that they were either A. ready to cash in and said 'fuck you' to their customers B. duped by AB into giving them control of their companies C. enticed by what AB was offering in terms of personal gain and potential improvement of process/distribution/research/marketing/etc for their company.
Supply and Demand doesn't work if you force distributors into dropping other breweries through strategic purchasing and high dollar incentives to keep volume restricted for non-AB brands.

If small breweries trying to enter the market can't get distributors to take their product because they've already allocated their 2% non-AB volume, they can't reach enough markets to expand demand to be high enough to make it financially viable for distributors to drop their big bonus from AB.

AB is working around laws to create a virtual market monopoly...and you apparently being okay with that is...odd to me, given your political positioning.
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Unread 2015-12-22, 05:13 PM   #19
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I'm still a bit fuzzy on why AB buying those breweries is being connected to their admittedly 'strong-arm' tactics with the distributors... those breweries' products would presumably be included as part of the % of AB-InBev family of products for those distributors so they wouldn't see declining availability as a result - in fact they may well see the opposite as distributors are incentivized to carry them so they are distributing more than Bud, Bud Light, etc.

its clearly a fiscal move to push distributors to carry AB products almost exclusively but that's a market move for their company in general, not a plan to buy GI, Elysian, etc and then strangle them by lowering quality, etc.

*also its slightly ironic to have the Lagunitas CEO complain when he sold to Heinekein
Supply and Demand doesn't work if you force distributors into dropping other breweries through strategic purchasing and high dollar incentives to keep volume restricted for non-AB brands.

If small breweries trying to enter the market can't get distributors to take their product because they've already allocated their 2% non-AB volume, they can't reach enough markets to expand demand to be high enough to make it financially viable for distributors to drop their big bonus from AB.

AB is working around laws to create a virtual market monopoly...and you apparently being okay with that is...odd to me, given your political positioning.
That is what I was thinking. Of all people, Phreak is in this thread arguing for laissez faire capitalism

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Unread 2015-12-22, 05:16 PM   #20
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The Three Tier System is great guys!!!!

A-B is doing what they have done successfully in the past which is to squash competition by creating and implementing a strategy to force the hand of markets with their massive buying power.

It's nothing new.
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Unread 2015-12-22, 05:25 PM   #21
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Supply and Demand doesn't work if you force distributors into dropping other breweries through strategic purchasing and high dollar incentives to keep volume restricted for non-AB brands.

If small breweries trying to enter the market can't get distributors to take their product because they've already allocated their 2% non-AB volume, they can't reach enough markets to expand demand to be high enough to make it financially viable for distributors to drop their big bonus from AB.

AB is working around laws to create a virtual market monopoly...and you apparently being okay with that is...odd to me, given your political positioning.
I'm all for changing the antiquated distribution laws to get rid of this, but its still up to the individual distributors to take the deal or not. even in your article, it was pointed out that there are incentives to go as low as 93% - and the current craft market is 9% (aka 91% for a distributor if they carried everything of what people are actually drinking). the reason I'm okay with it is that its a just business tactic and I don't even think its a very good one for major markets. a number of craft beer drinkers (as tim pointed out) won't drink macro on principle (even if that principle is somewhat hypocritical given that most craft brewers got into the business to make a better product than macro and craft drinkers wanted a better product than macro and now the customers refuse to drink what may well be a better product because who owns the shares)... those craft drinkers are happily paying exorbitant prices for a product - hence there will be a market space for a distributor to fill that demand. I don't like what AB is doing but I'm not really concerned about it because I have confidence that craft drinkers wanting their $12-20/6-packs will find products on the shelves. its a shitty move by AB but I'm just not that concerned about it.
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Unread 2015-12-23, 03:08 PM   #22
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There’s a less obvious reason why AB InBev is buying up craft breweries



Beer giant Anheuser Busch-InBev yesterday (Dec. 22) acquired Breckenridge Brewery, a move that strategically situates the company in the heart of Colorado craft brew country.


Breckenridge marks the seventh craft brewery that AB InBev has purchased in the last three years, and the third in the last week. On Dec. 21 it bought UK-based Camden Town Brewery, and on Dec. 18 it acquired Arizona-based Four Peaks Brewing.


The moves make sense for two obvious reasons: AB InBev has watched sales of its lagers decrease for 15 years. Meanwhile, the craft beer business has boomed, contributing as much as $55.7 billion to the US economy in 2014, according to the Brewers Association. Buying up successful craft breweries allows the company to diversify its offerings and tap into a strong consumer trend.
But there’s a third reason AB InBev stands to gain: by getting more control of beer distribution networks.
Think of it from a distributor’s perspective. If a distributor is making good money working with craft brewers, there’s less incentive to carry AB InBev’s beers, some of which are on the decline. But if AB InBev buys up the craft breweries, distributors may find themselves in a position in which they have to take on more AB InBev products.




The company also recently rolled out a new program for distributors, giving them a financial incentive to focus primarily on AB InBev products. Under the program, AB InBev will reimburse distributors for marketing expenses based on the amount of AB InBev product they distribute. Ricardo Melo, the company’s vice president of sales strategy, told The Wall Street Journal the plan will improve AB InBev offerings for consumers and better equip wholesalers to compete.




This could become a concerning situation for craft breweries looking to make headway in a market already rich in consumer choices. If distributors have a disincentive to push non-AB InBev products, it could limit a small-time brewer’s chance to gain a foothold in the local market.
In many markets there’s only one distributor It doesn’t help that the number of beer distributors—excluding the very small brewers who’ve acquired self-distribution licenses—have been decreasing for the last two decades, typically through consolidation, said Bart Watson, chief economist for The Brewers Association.
The AB InBev incentives program puzzled some people, including the National Beer Wholesalers Association, which represents distributors. That group said it understands why AB InBev would want to buy up a successful brewery, but said the roll-out of the incentive program left a lot of people scratching their heads, especially in light of AB InBev’s impending mega-merger with SABMiller, which is subject to an anti-trust review. A lot of questions remain about whether smaller operations will be edged out of the market, or never given the chance to compete at all.
“In many markets there’s only one distributor,” said Kathleen Joyce, NBWA spokeswoman.
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Unread 2015-12-23, 03:39 PM   #23
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There’s a less obvious reason why AB InBev is buying up craft breweries



Beer giant Anheuser Busch-InBev yesterday (Dec. 22) acquired Breckenridge Brewery, a move that strategically situates the company in the heart of Colorado craft brew country.


Breckenridge marks the seventh craft brewery that AB InBev has purchased in the last three years, and the third in the last week. On Dec. 21 it bought UK-based Camden Town Brewery, and on Dec. 18 it acquired Arizona-based Four Peaks Brewing.


The moves make sense for two obvious reasons: AB InBev has watched sales of its lagers decrease for 15 years. Meanwhile, the craft beer business has boomed, contributing as much as $55.7 billion to the US economy in 2014, according to the Brewers Association. Buying up successful craft breweries allows the company to diversify its offerings and tap into a strong consumer trend.
But there’s a third reason AB InBev stands to gain: by getting more control of beer distribution networks.
Think of it from a distributor’s perspective. If a distributor is making good money working with craft brewers, there’s less incentive to carry AB InBev’s beers, some of which are on the decline. But if AB InBev buys up the craft breweries, distributors may find themselves in a position in which they have to take on more AB InBev products.




The company also recently rolled out a new program for distributors, giving them a financial incentive to focus primarily on AB InBev products. Under the program, AB InBev will reimburse distributors for marketing expenses based on the amount of AB InBev product they distribute. Ricardo Melo, the company’s vice president of sales strategy, told The Wall Street Journal the plan will improve AB InBev offerings for consumers and better equip wholesalers to compete.




This could become a concerning situation for craft breweries looking to make headway in a market already rich in consumer choices. If distributors have a disincentive to push non-AB InBev products, it could limit a small-time brewer’s chance to gain a foothold in the local market.
In many markets there’s only one distributor It doesn’t help that the number of beer distributors—excluding the very small brewers who’ve acquired self-distribution licenses—have been decreasing for the last two decades, typically through consolidation, said Bart Watson, chief economist for The Brewers Association.
The AB InBev incentives program puzzled some people, including the National Beer Wholesalers Association, which represents distributors. That group said it understands why AB InBev would want to buy up a successful brewery, but said the roll-out of the incentive program left a lot of people scratching their heads, especially in light of AB InBev’s impending mega-merger with SABMiller, which is subject to an anti-trust review. A lot of questions remain about whether smaller operations will be edged out of the market, or never given the chance to compete at all.
“In many markets there’s only one distributor,” said Kathleen Joyce, NBWA spokeswoman.
Whoever wrote this article if a brilliant, brilliant man.
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Unread 2015-12-23, 04:27 PM   #24
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By "in many markets", they are just playing on words.


10 can mean "many"


We operate 63 restaurants across the country, and not one of them is subject to the restrictions of only having one distributor.


The vast majority of markets, and any major city, will never be impacted by this.

Small town USA, maybe.

I have six distributors just in KCMO.


It's really a non-issue.
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Unread 2015-12-23, 04:32 PM   #25
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To add to that, the AB distributors are not owned by AB. They are independent businesses, hence the need for AB to have to incentivize them vs just laying down the law.


They are here to make money.


My AB distributor in KCK brings in anything we want. They sell us more non-AB products than they do AB products, and have never tried to be pushy or muscle us in any way as what we bring in sells, and they make money off of those sales.
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