Craft Brewing Sales & Acquisitions: The New Normal?

In case you hadn’t heard, some big news went down yesterday with Anheuser-Busch purchasing 10 Barrel Brewing based in Bend, Oregon and we couldn’t help but notice some serious frustration on the part of craft beer lovers across the country. When the news hit around 9 AM Pacific, there was so much wailing and gnashing of teeth over yet another craft brewer seemly being overrun by the largest brewer in world, we felt it was time for some introspection on what it all means.

Unpacking this big change requires us to look at the landscape that’s brought us to where we are:

August 2008 – Widmer Brothers Brewery and Redhook Ale Brewery merge and later enlist Kona Brewing in 2010 to officially become the Craft Brewers Alliance.

January 2011 – Brewers Association adjusts its bylaws to allow for a larger production ceiling, enabling the Boston Beer Company, of Samuel Adams fame, to remain a “craft brewery.”

March 2011 – Goose Island Beer Company sells their controlling stake to Anheuser Busch.

December 2012 – Oskar Blues Brewing opens East Coast operations in Brevard, North Carolina.

January 2013 – AB-InBev purchases 32.2% of Craft Brewers Alliance.

October 2013 – Duvel Moortgat Brewery purchases Boulevard Brewing.

July 2014 – Sam Calagione of Dogfish Head posits to Bon Appétit that “we’re heading into an incredibly competitive era of craft brewing. There’s a bloodbath coming.”

2015 and Beyond – New Belgium Brewing, Sierra Nevada Brewing and Stone Brewing are all slated to open East Coast breweries, with Stone planning a brewery in Berlin, Germany as well.

It’s awfully clear that the biggest in the craft beer world are growing even bigger, whether it be on their own, with private investment or even going public. So it only makes sense that a few will even be snatched up by the biggest brewers ever known to man, yet demand is still growing and experimentation continues, even at those brewers who’ve supposedly “sold out.” And what about those brewers above who’ve already taken the plunge? Are their beers worse as a result? 

Right now we’re all witnessing the explosive and almost miraculous rebirth of real beer being brewed by Americans again. It’s a beautiful thing that we must never take for granted and it’s for this reason that the purchase of 10 Barrel is a bit disconcerting. Sure, it’s a win for AB-InBev and for these brewers who’re just trying to meet demand while taking on all the issues that come with operations and distribution, yet what’s the precedent being set? How many little guys will the biggest brewers take under their wing before we’re back to 3 to 5 large national brewers making homogenous beers?

And while it seems clear to us that most brewers would never open their door if Budweiser came a-knocking, for those who do, they need to be wary of today’s craft beer consumer changing their allegiance. While a move like this is unlikely to put a brand out of business and those that’ve done it before have yet to be harmed, the beer snobs are growing in number and they’re a little pissed off right now.

What’s shocking to everyone is that this smaller regional chain of brewpubs and perennial favorite at the Great American Beer Festival would jump in with both feet. It’s their business and if they feel this was their best chance to survive and accomplish their goals, then hey, more power to them. Does it make the smaller brewers, those struggling to remain relevant, even more nervous and put them at future risk? Maybe so, yet increasing competition in this unique, mostly communal industry breeds ingenuity, a co-operation between brewers and a strengthening of the bonds that tie them together. We don’t see 10 Barrel changing much about who they are as a brewery just yet and they seem pretty happy about their decision, as seen below. We’ll just have to wait and see for ourselves…

 

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