Sunday, January 25, 2015

Sell-out or “Crafty” Business Deal? - Industry Class

This past Friday, I saw on Facebook (Thanks BeerWrangler) and heard from a respected member of the Alberta craft beer scene (Thanks Hoperella) that Elysian was bought out by Anheuser-Busch. Check it out here.

There is a fair amount of hubbub about this but this isn't the first time a larger brewing conglomerate has purchased/indoctrinated/financially acquired a craft brewery. Here's an example

And just in case you need one more example. This one has some interesting twists. Ok, now I'm sure you're done with all that reading but bear with...hell, grab a beer if you want but come back. I'll just play this music while I'm waiting for you to get your tasty beverage. 

Hey! Welcome back! I know some beer enthusiasts out that are seriously cheesed off and are boycotting Elysian and getting the word out with social media. I've already been asked a few times: What’s my take on this whole situation? 

Well here we go with my ever favorite and convenient list o' reasons:

Consider the source – Elysian now joins the morass of other breweries out there that the average beer consumer has no idea that they have “big brother” owners. I still get a kick out of telling people, particularly my relatives back east, that their favorite domestic brand may not brewed in the country or the region that they think it is. This list of breweries is extensive (future blog post perhaps?) I confess that I get a perverse pleasure telling people that a certain Winter Ale named after a jungle cat isn't made in that small brewery anymore and is owned by a bigger company. After I inform them of such, does that deter them from drinking that beer? Nope. And that’s fine, if they like it, then who am I to judge? I just can’t handle the amount of vanilla that is in that Winter Ale nowadays – it’s just too much. (On a different note, that brewery does make some seasonal brews that I certainly respect, admire, and enjoy!)

I’ll probably still drink their new releases –  Speaking of seasonals and new releases, I have the same attitude about Goose Island Beer Company. I haven’t tried many of that brewery's beers but I’d like to. Will I go seek them out? Not likely, considering all the choice out there. Will I turn down the chance to try a sampler or split a bomber of Goose Island or Elysian that I haven’t had yet? Not likely. Does that make me a hypocrite? I don’t know…maybe? (cringe) Can’t a guy just try new beers without judgment? I know I’m going to try.

Speaking of hypocrites – Here is a jaded press release about Elysian Brewing's Loser Pale Ale.


If you look closely it says "Corporate Beer Still Sucks" and not even in psychedelic distracting colors.
As you can see in the picture above, it’s hard to miss the motto “Corporate Beer Still Sucks”. To me, that’s a sizable "#$%& you!" to the “Big 3” if I ever saw one. I didn't know that the label was in honor of an independent record label in Seattle until recently. I wouldn't be surprised if the average beer consuming customer (craft beer or otherwise) doesn't know that either. So what is the message being sent by a craft brewery that flips the bird with one hand to “Corporate Beer” then shakes hands with them with the other?

The one article above states by Dick Cantwell, Elysian co-founder and head brewer:

 "Cantwell acknowledges that now the joke has another layer, but says the Elysian will keep brewing Loser Pale Ale after the acquisition is complete"

I feel like I'm missing the joke here because I’m not getting the punchline. Is this American capitalist humour that this Canadian may never get?  If Elysian didn't have this product, then I highly doubt I'd be this uncomfortable about the whole situation. All I know is that it leaves a bad taste in my mouth much like the domestic light lagers out there that tout the use of colder temperatures to move their product. 

It was bound to happen – I’m pretty sure there are a ton of successful craft breweries that are in the sniper sights of the “Big 3” to financially acquire. Everyone has their price. (Yes, even me but good luck being able to pay up.) 

Don't let that adorable face fool you - your favorite craft brewery might be next. 

Would I look down upon one of my favorite craft breweries if they were bought up by one of the massive Brew-glomerates? I could go either way but it really depends on the situation which leads to my next point.

What are the real reasons? – Do you honestly think the owners and brewmasters of any financially acquisitioned craft brewery are going to tell the general public the true reasons what went on? If you think such then I have a bridge to sell you. Money talks, we all know that. But maybe, just maybe, that money from the acquisition will somehow help with charity? Better environmental initiatives and research? (One of my profs would go crazy over that!) One can hope right?

Cantwell also says "We have some loyal fans that are questioning it, but we are hoping they will take a breath ... and see that what is still in the glass is amazing,"  That’s fair, as long as they don’t start making their beer with extra vanilla to appeal to the already rotten North American sweet tooth, then I’ll reserve any further judgment as best I can.

Obviously brewmasters are going to join up with larger companies if it means better distribution, stronger market reach, access to greater advertising budgets and a myriad of other financial advantages that their brewery may not reach. 

So what does this bode for the rest of the craft beer industry? Will craft breweries be eventually swallowed up by large brewing conglomerates? Or will craft breweries unite and form their own alliances and confederates in order to somewhat protect themselves? 

I do know that even non-brewing conglomerates buy into other industries. A certain big company comes to mind, with a certain mouse as its mascot, that made a hockey team a few years back (a favorite of one my fellow brew colleagues actually). Since this mouse obviously likes beer (as you can see in this photo) don’t be surprised if you start seeing his face in the brewing industry. I wonder what kind of operation he'd run? :P



As always, thanks for reading.

BL

PS: How was that beer you were having? If you like, please tell me about it in the comments below. 

Disclaimer: As always, these latest blog posts are merely my thoughts, musings, and viewpoints. These posts are from me alone and don’t represent anyone, any business, company, institution, or alien star system. Unfortunately, I have limited time to conduct extensive research on all the topics due to my course load and would enjoy to hear from you, the reader, as to what you've found regarding any of the topics I touch on. It’s about learning right?  

1 comment:

  1. I seem to recall about two years ago we were discussing this. I said that the craft beer explosion could only go one way: hundreds of new breweries would pop up, they'd become the Next Big Thing, then the big boys would notice and either 1) start making a slightly better beer under a new Astroturfed label or 2) buy up a craft brewery or two. After that the amalgamations would happen because frankly advertising sells and advertising costs a lot.

    The news that Bud is now drunk less than craft beer? You're still setting a single beer up against a thousand. So the craft breweries will start merging - giving them an economy of scale to compete - or growing rapidly with an investor or group of investors- giving them that same power. Alternatively they can be big fish in little pond, focusing on the local market and perhaps slightly around it - and that can be enough to keep moving on and making a living. And the last option is closing - which sucks, but is a fact of life, especially at the end of the expansion and beginnings of consolidation of an industry.

    There are a few ways of looking at it. You can be focused on the label and who owns it, or you can be focused on the product. If Anheuser-Busch made a beer that tasted good I'd probably drink it. I love Alaskan, I find they make a good beer that's pretty much exactly what I like. I love their story as the scrappy underdog trying to build a craft brewery in Juneau. But the thing is that the thing that keeps me buying isn't their story, but their beer. If they got bought out and the quality stayed the same or got better then I'd keep buying. If the quality went down I'd stop.

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