About Budweiser

[texasliam]

We have all heard about bud being bought out, and previous to that, microbreweries being bought out by bud and other mega brewers. Now if bud can be bought, what's stopping our favorite microbrewers from being bought by Europian, Japanese, or chinese interests, or for that matter by corona.
If Hops werent already getting scarce...
Liam

[wortchillergoal]

What is stopping that is the micros' small market share.

[jesskidden]

Now if bud can be bought, what's stopping our favorite microbrewers from being bought by Europian, Japanese, or chinese interests, or for that matter by corona.



Most craft breweries are privately owned, so what's "stopping" them from being bought is the refusal to sell by their owners.

In A-B's case, they were a publicly traded company and the Busch family owned only a very small fraction of the stock (3-4%, IIRC). Boston Beer Company, for one, IS also a public corporation but Koch and his family still control the majority of the stock.

[steveh]

Is there any case of a micro truly being bought out by a macro? There have been many investments of certain share holding, and some larger breweries have starrted labels that appear to be micro-like, but I don't know if there's any actual case of BMC "buying out" a micro.

S.

[jesskidden]

Is there any case of a micro truly being bought out by a macro? There have been many investments of certain share holding, and some larger breweries have starrted labels that appear to be micro-like, but I don't know if there's any actual case of BMC "buying out" a micro.



The most notable case was Celis which was purchased (and then closed) by Miller. IIRC, Miller bought into both Shipyard and Celis around the same time (mid-1990's) and there was a clause that the brewers could either buy the Miller share back OR make Miller buy the remainder of the company. Pierre Celis chose the latter, Shipyard the former.

Other than that, yeah, it's mostly been a matter of A-B buying "into" the craft breweries or a brewery buying the labels of brands when a craft folded - didn't Stevens Point pick up a label or two that way? Matt also bought their old contracted brew New Amsterdam after that company folded.

[steveh]

Yeah, I guess Cellis could rightfully be considered a micro. Thing is, Miller didn't get rights to his name -- can't remember which Michigan micro is brewing the Wit with his approval now.

I think Point only picked up Augsburger from Huber, not completely sure -- but Point is considered a regional, as is Schell and Leinenkugel.

S.

[beerking]

Yeah, I guess Cellis could rightfully be considered a micro. Thing is, Miller didn't get rights to his name -- can't remember which Michigan micro is brewing the Wit with his approval now.S.

Celis beers are being brewed by Michigan Brewing Co, and they are making the Wit, the Pale Bock and the Raspberry.

[jesskidden]

Yeah, I guess Cellis could rightfully be considered a micro. Thing is, Miller didn't get rights to his name -- can't remember which Michigan micro is brewing the Wit with his approval now.


Miller *tried* to sell the brewery and brands before closing it. Don't really remember who that Michigan micro bought the brand (and, IIRC, some equipment) from, tho', but certainly Celis himself was somewhat involved in their start-up of the beer.

Edit- Oh, here it is...Celis Brewery finds a home (http://www.realbeer.com/library/beerbreak/archives/beerbreak20020314.php)



I think Point only picked up Augsburger from Huber, not completely sure -- but Point is considered a regional, as is Schell and Leinenkugel.

S.

Yeah, I guess I still think in terms of "Macro *or* Micro" and I consider any pre-craft era brewery that once brewed primarily in the "American adjunct light lager" style as "macro". But, either way, didn't Point pick up a Minnesota craft label. Page something?

OTOH, Augsburger would have been picked up from Pabst, who got it from Stroh, who bought it from Huber during that temporary period when the Huber family sold out to the former Pabst execs (only to later buy it back and finally sell out again to that Canadian "cheap beer" kid :) ).

"Augie" was one of my favorite US brewed lagers back in the early craft days- we even got them (Lager, Bock and Dark, IIRC) in NJ.

[steveh]

Yeah, I guess I still think in terms of "Macro *or* Micro" and I consider any pre-craft era brewery that once brewed primarily in the "American adjunct light lager" style as "macro". But, either way, didn't Point pick up a Minnesota craft label. Page something?


Yeah, I can see that distinction, OTOH -- Point is actually making some decent stuff these days; their Wit is pretty good, as is their APA.

And yeah, that other label is James Page... but was it ever actually a brewery? For some reason I thought it was home-brew supplies and Point developed the name into beer? Dunno, too much water under the bridge.

S.

[Mad Scientist]

Boston Beer Company, for one, IS also a public corporation but Koch and his family still control the majority of the stock.

If Koch & family did not own a majority of the stock, they would have been bought out long ago.

One that you guys missed: Redhook is owned by Miller (SABMiller)

[steveh]

Redhook is owned by Miller (SABMiller)

A-B owns a minority share of Redhook (as it does Widmer and a couple others), which allows Redhook piggyback rights to the huge A-B distributorship, but there's no "ownership." It'd be a sort of coup if Miller was involved!

OTOH -- Miller owns Leinenkugel (I believe outright), but Leinie's is considered a regional brewer, not a micr.

S.

[Mad Scientist]

Umm...oops...wrong macro....

[jonlouisville77]

Do you guys think that the A B takeover is a sign of greater desire by foreign companies to buy into US markets, or perhaps a plan to use their existing infrastructure in Europe to increase A B product sales overthere? Maybe neither, but it seems unlikely that such a big move wouldn't result in some fairly drastic changes.

[Mad Scientist]

Actually, I think that they were buying the single biggest brand out there...which makes the move buy economic only

[beerking]

I think with the week dollar compared to the Euro these days, it was just to good a bargain for a Borg-machine like InBev to pass up.

[chazwicke]

There has been much speculation locally that AB/Inbev will probably divest itself of those craft brewerys that they have partial ownership in. Many here think that they will sell their interest in Old Dominion. It seems that craft brewing does not really fit into their plans.

[Mad Scientist]

Well, the have Boddingtons, and other UK brands that would be more of a mirco....

[cul8rv8]

I'm still wondering if Sea World and Busch Gardens will be around. I like my free tickets for them since my dad is a retired A-B employee. :)

[Otis_The_Drunk]

I hardly think that INBEV is going to cut jobs since Budwieser is the biggest selling product world wide (for reasons I can't understand) (it's tasteless fizzy yellow water).
Personally I think that the Belgians can only improve the flavor of the product as it can't get any worse. If anyone knows about Belgian beers, they are the Disneyland of the beer world.
They put out some of the best beers in the world with the exception of Stella Artois lager.
Many will say that I'm a beer snob and they would be correct. I think that the acquisition of Anheuser Busch will ultimately be a good thing in the long run. This would give them the leverage to diversify their product line, as Anheuser Busch has been stuck in a rut for years. Even their Micro-like products have that familiar tasteless quality to them. Where as Coors is starting to see the handwriting on the wall and has started to diversify their product line.
Examples would be Killian's Red (which has been around for years) Blue Moon Belgian Wit and Harvest Moon Seasonal Pumpkin Ale. Many here don't know that Miller and Coors have merged.
Look at Products like Samuel Adams, the reason that they have made it so well in the beer market is because of diversification. They Boast over 18 beers to their product line and is adding more all the time.