What Does It Mean When Big Breweries Go ‘Small’?

For years, craft breweries have played off the myth and ethos of being small, whether a single person creating one-barrel batches at a time or a national powerhouse like Sam Adams. This has become more evident in recent weeks with the creation of the Brewers Association “independent” seal, meant to convey the ideals of the trade group in a literal way.

Non-AB InBev of Molson Coors breweries are now “small and independent,” two words tied together, not necessarily “craft.” But what some of these businesses are finding is that “small” in theme doesn’t mean the same in practice.

On Aug. 10, New Belgium bought California’s Magnolia Brewing along with minority investments from Belgium’s Oud Beersel and former Elysian co-owner Dick Cantwell. The move saved the business from closure after a series of financial issues.

This was replicated in a similar fashion just a week later when San Diego’s Green Flash, which already owns Alpine Beer Co. in addition to a production facility in Virginia Beach, announced it was opening another space – in Lincoln, Nebraska.

“Up to now, we sold about 40 percent of our beer in our home state, about a third of our beer on the East Coast — and that’s actually increasing faster and might be approaching 40 percent,” Green Flash co-founder Mike Hinkley told Brewbound. “But in all of the big, wide-open spaces of the Midwest, we’ve sold very little beer at all. This will help us to compete in those areas.”

The kicker here is how they’re doing it. Like New Belgium, Green Flash is entering the market through another distressed business in Ploughshare Brewing.

Continue reading

Advertisements

Some Details Forgotten in Latest AB InBev Buy

bosteels-ab-inbev-logos

Whenever one beer company takes over another, there is always reflection. Especially if it’s by someone like AB InBev.

What will happen to Brewery X? How will this impact their beer? Should I care about them any more?

From my American point of view, it’s been an interesting case trying to track the recent purchase of Belgium’s Bosteels by AB InBev, which was announced earlier this month. Bosteels, maker of Kwak, Karmeliet and Deus, is a 225-year old brewery.

Immediately after the announcement, people seemed to ask: but how much of the “family” aspect will be left?

During this week’s discussion on The Beer Temple, I got to chat with host Chris Quinn and others about the purchase. As is often the case, there’s plenty beyond the top-level assumptions or quick reactions.

Continue reading