US - Southwest BREAKING: Anheuser-Busch InBev in final talks to buy a Texas Brewery

Discussion in 'Beer Travel, Events and Releases' started by beernerds, Nov 3, 2016.

  1. beernerds

    beernerds

    Joined:
    Jan 28, 2014
    http://houstonbeerguide.com/breaking-anheuser-busch-inbev-in-final-talks-to-buy-a-texas-brewery/

    BREAKING: Anheuser-Busch InBev in final talks to buy a Texas Brewery
    Nathan Miller | Nov 3, 2016

    This story will be updated throughout the day, please check back for updates. We will also tweet updates from @HoustonBeer.

    Rumors are swirling that a Texas brewery is on the verge of being acquired by global beer behemoth Anheuser-Busch InBev. Houston Beer Guide has been unable to confirm on-the-record the identity of the acquired brewery, but has received media confirmation that the announcement will be made today, around 9:45am. Similar rumors have surfaced in the past, but they appear to be louder, more consistent, and more concentrated than ever before, and the media source confirms fears we’ve had for a while: ABI’s next “High End” purchase will be in Texas. While we continue to chase this story, we’d like to briefly discuss why we think this is has the potential to be a huge moment.

    The brewery would presumably join ABI’s High End division, which also includes prior acquisitions such as Goose Island, Elysian, Four Peaks, and Breckenridge. The five breweries ABI has acquired since January 2015 have produced, on average, about 60,000 barrels annually each. Recent acquisitions and public acquisition targets have fallen in the around 30-100k barrel range, so any local acquisition will likely follow suit. Similarly, it’s reasonable to rule out some of the more rural breweries that dot Texas’ countryside, as past acquisitions have shown that ABI prefers urban breweries with taprooms. These characteristics fit a small handful of Texas breweries, so the rumors, as one may expect, are fairly focused, though, again, not confirmable at this time by HBG.

    In general, ABI’s acquisitions have followed a fairly constant market penetration goal, with expansion that has covered the Midwest, Northeast, Northwest, Southwest, and mid-Atlantic. ABI has shown a propensity to only target breweries in states where they do not already have a High End presence. An acquisition in Texas would make sense in this context, allowing further map coverage. In addition, Texas has a very strong network of ABI-centric distributors, such as Silver Eagle in Houston, Ben E. Keith in Dallas, and Brown in Austin. Since ABI already has a large macro brewery in Houston, established ties and relationships here would provide even greater leverage for their craft acquisition strategies.

    Needless to say, such an acquisition would be heartbreaking to craft lovers. While many drinkers view such acquisitions with a “meh” attitude, the realities of the destruction caused by ABI’s purchases are real. There should be no doubt that ABI’s desire to own all beer production globally represents an anti-competitive and dangerous goal. There are countless examples (some examples linked below) of ABI using its influence to stagnate the growth of craft, including by buying distributors or leveraging their influence with distributors to hurt craft, by influencing legislation or, through their acquisitions and subsequent price-cutting or pay-for-play, by a “Trojan horse” strategy of acquiring more shelf space and a greater number of tap lines.

    The best indicator of a free market is choice. When consolidation occurs, it benefits the consolidated – ABI would increase their already massive foothold in Texas, and the purchased brewery would see, as has already been the case for the other High End brands, their name everywhere. Soon, the brewery’s name would be known by casual drinkers not only in Texas, but also in stadiums and concert halls all over, wherever a “Craft Beer” sign can be placed over a set of tap handles all pouring from the same company. But when consolidation occurs, it hurts the consumer. When choice is decreased, the consumer has to “settle” rather than opt for his or her first choice. For some, this means nothing. For some, this means sacrificing a connection to a local brand that is no longer local.

    It is worth stating that not all consolidation is the same, and ownership matters. When one starts a business, they do so to make money. However, in craft beer, we all like to think there’s something more noble in the intentions as well. After all, there’s more than one way to make money, and taking a payday from the most vicious anti-craft macrobrewery is only one option. As in the past, we have no choice but to wish the acquired brewery the best of luck in their future endeavors, but we won’t settle, and won’t drink another drop of their beers, regardless of how good they are. This is a sad story for Texas beer.
     
  2. Kasher

    Kasher

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    Long Island, NY
    I may still drink their beers.

    #yolo
     
    lambandtunaphish likes this.
  3. gregkoko

    gregkoko

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    NJ/NYC
    Going to assume St. Arnolds?

    tl;dr
     
  4. Ryan_G

    Ryan_G

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    Location:
    Yes
    It's Jester King.

    [​IMG]

    i hav no idea
     
  5. ABI getting their lambic (sorry, methode geuze) program up and running in style
     
  6. Hookemhops13

    Hookemhops13

    Joined:
    Jun 27, 2014
    Doubt it. Feel like Brock is too tied to the craft community and actually cares about that stuff. Most likely guess would be Karbach who has mainly been about ramping up production and getting as big as possible. Less niche stuff.

    Oh and it's Saint Arnold not Saint Arnold's;). It's also Kroger and not Krogers. Bite my tongue on a daily basis on these....
     
  7. drinkypoo

    drinkypoo Previously FEUO

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    So was the guy from Elysian, right?
     
    SaltyMalty, gregkoko and beernerds like this.
  8. nathanmiller

    nathanmiller

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    Where Brooklyn At
    #ShipleyNotShipleys
     
  9. BadJustin

    BadJustin

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    State of Confusion
    BREAKING: We don't really care all that much.
     
    mwbbq, Five28 hz, Photekut and 6 others like this.
  10. SirDickButts

    SirDickButts

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    Bet 5 dollars it's Karbach.
     
  11. nathanmiller

    nathanmiller

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    Where Brooklyn At
  12. SirDickButts

    SirDickButts

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    HAAAAAAAAAAA!!!
     
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  13. Lutter

    Lutter

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    Location:
    Austin, Texas
    The Karbach rumors have been flying around for at least a year.

    Good for them.

    Also, could the Hay Merchant be any more douchey about stuff like this?



    Kevin Floyd is the literal worst.
     
    SirDickButts likes this.
  14. SirDickButts

    SirDickButts

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    Alotta Houston peeps have a bad case of homerism. I get it....it's just not my steez and I don't knock others for it.
     
  15. Lutter

    Lutter

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    Austin, Texas
    Tell them to be even bigger homers and stop coming to every single Austin beer release. ;)
     
    SirDickButts likes this.
  16. SirDickButts

    SirDickButts

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    Lmao. Which also means...there's room for a solid farmhouse brewery to set up shop in Houston. Who's gonna do it? That's the question...
     
    BusinessSloth, mwbbq and wiingman like this.
  17. Lutter

    Lutter

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    Austin, Texas
    "Ah yes, I can taste the terroir of oil and nuclear waste"