AB just bought Elysian, thoughts?

Reads 25534 • Replies 395 • Started Friday, January 23, 2015 11:28:57 AM CT

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Reid
beers 3533 º places 95 º 09:19 Sat 1/24/2015

Originally posted by Erlangernick
Meh. Dick deserves a comfortable retirement.


I have seen from people in the "know" that it wasnt his choice.

 
Reid
beers 3533 º places 95 º 09:26 Sat 1/24/2015

Originally posted by BBB63
Come on folks, ultimately is about the bottom line
If a brand sells it make them money, if it just becomes a shelf turd then it does not. Initially Elysian will be a big deal when it hits new markets for this I am sure. However once the hype and novelty wares off then what? We are seeing this already occurring with the Goose Island brand (minus BCBS) where bottles of Matilda and Sofie are not moving. Then you have 312, Honkers and IPA becoming grocery store turds, gathering dust and aging to the point of becoming even more undrinkable. Somewhere there are hundreds of kegs too getting the same treatment. Soon the bottom line will force InBev/AB hand into changing the visibility of the Goose lineup.

And those who claim that the quality of the lineup has not changed post acquisition must not have tasted those bottles coming out of New York. Again going back to my point about the bottom line (and maximum profitability), they bean counters will always be looking for ways to make an extra penny. Lesser quality ingredients at a cost saving will make lesser quality beer. Sure the changes may be minor at first but over time the product diminishes. History tells us that. It happened with Redhook, Widmer and by those who drank/drink Kona Brewing regularly told me they seen a change in them too.

It will happen again and again... a few months from now this same discussion will occur as another "craft" brewer will be sold to one of the mega corporations, Inbev/AB, SABMiller, or even Moortgat or Carlsberg. (yeah I fully expect the Carlsberg Group to make a play at a large American brewery soon)





Oh man the Goose Island keg fiasco was the talk of the community up here last year.
They tried to muscle other players out by selling kegs of Goose Island for around $40..
Of course bar owners are gonna go for that. It still didnt sell .
I thought AB were financial and industry experts?
Maybe they dont understand regional loyalty?

 
Naven
beers 1000 º places 109 º 09:46 Sat 1/24/2015

Originally posted by after4ever
Originally posted by poisoneddwarf
Originally posted by jackl
It may be way too late to get this thread back on track, but I’ll give it a shot.

I saw Carlos Brito speak last month in a relatively intimate setting in front of a pretty conservative, pro-business crowd. He was asked about AB Inbev’s recent acquisitions of craft breweries and gave a pretty lengthy summary of their strategy.

In short, he said that buying craft breweries like 10 Barrel (and Elysian) are cheap ways to learn more about the craft market. When they buy a craft brewery, they generally do so on the condition that the talent stays for a few years and helps consult etc. These breweries aren’t seen as profit generators or as tools to muscle out smaller breweries. They’re a way for ABI to experiment and learn more about a growing part of the market. The more AB InBev can learn, the better they can respond to market changes and stay profitable in the future.

Also, I think a bit of perspective is needed here. The cost of acquiring Elysian is nothing to AB InBev. Elysian’s earnings will be a rounding error on AB InBev’s income statement. AB InBev made a strategic acquisition last year in South Korea that dwarfed the cost of buying Elysian, but no one bothered to mention it on this site at all.


I find it really hard to believe anything Carlos Brito says. He’s the Sam Walton of beer.

The whole point of doing this is the squeeze for shelf space and tap handles. Nothing else. It won’t hurt Elysian; it consolidates breweries that were already in AB’s distro network and allows them to demand blocks of retail slots at once.

It won’t change anything about the beer--it’s all about manipulating retail.


Bingo.

 
Reid
beers 3533 º places 95 º 09:52 Sat 1/24/2015

Originally posted by after4ever
Originally posted by poisoneddwarf
Originally posted by jackl
It may be way too late to get this thread back on track, but I’ll give it a shot.

I saw Carlos Brito speak last month in a relatively intimate setting in front of a pretty conservative, pro-business crowd. He was asked about AB Inbev’s recent acquisitions of craft breweries and gave a pretty lengthy summary of their strategy.

In short, he said that buying craft breweries like 10 Barrel (and Elysian) are cheap ways to learn more about the craft market. When they buy a craft brewery, they generally do so on the condition that the talent stays for a few years and helps consult etc. These breweries aren’t seen as profit generators or as tools to muscle out smaller breweries. They’re a way for ABI to experiment and learn more about a growing part of the market. The more AB InBev can learn, the better they can respond to market changes and stay profitable in the future.

Also, I think a bit of perspective is needed here. The cost of acquiring Elysian is nothing to AB InBev. Elysian’s earnings will be a rounding error on AB InBev’s income statement. AB InBev made a strategic acquisition last year in South Korea that dwarfed the cost of buying Elysian, but no one bothered to mention it on this site at all.


I find it really hard to believe anything Carlos Brito says. He’s the Sam Walton of beer.

The whole point of doing this is the squeeze for shelf space and tap handles. Nothing else. It won’t hurt Elysian; it consolidates breweries that were already in AB’s distro network and allows them to demand blocks of retail slots at once.

It won’t change anything about the beer--it’s all about manipulating retail.

It would be amusing to see 10 Barrel and Elysian beers stocked with the Bud Light etc in grocery stores

 
miketd
beers 5 º places 125 º 10:29 Sat 1/24/2015

Sheesh, this place never changes.

Only thing I can contribute is that I have met Hair, and he is a cool dude. I like Reid, too... at least he’s not a dbag and fun to talk to.

 
Reid
beers 3533 º places 95 º 10:40 Sat 1/24/2015

Originally posted by miketd
Sheesh, this place never changes.

Only thing I can contribute is that I have met Hair, and he is a cool dude. I like Reid, too... at least he’s not a dbag and fun to talk to.

Hey im hoping to hit Fat Heads PDX later today.....get some of that delicious IPA.

 
miketd
beers 5 º places 125 º 10:46 Sat 1/24/2015

Originally posted by Reid
Originally posted by miketd
Sheesh, this place never changes.

Only thing I can contribute is that I have met Hair, and he is a cool dude. I like Reid, too... at least he’s not a dbag and fun to talk to.

Hey im hoping to hit Fat Heads PDX later today.....get some of that delicious IPA.



I may go to the brewery too, later.

 
sthlm
beers 790 º places 147 º 11:04 Sat 1/24/2015

Originally posted by pepsican
What an odd way to decide on a purchase. Is it like that with all products in the area? Can you purchase imported beers in the PNW?

Buying locally made products is odd? Maybe if you don’t know anybody in your community or don’t care about your money going to those people.

 
sthlm
beers 790 º places 147 º 11:12 Sat 1/24/2015

Originally posted by CLevar
So who here would drink a sub-par caramel malt IPA brewed by the local place over a much better IPA brewed by a brewery owned by AB?

Honestly, if you would pick the former, you are why I and so many people have to wade through crap just to find something decent, and why I will buy a product that I KNOW I will enjoy rather than taking a risk on something that may very well be terrible.

Quit rewarding shitty brewers just because they are "local". Sure, I love the idea of it, but I also really love drinking good beer.

That depends on the degree of difference. If the beer made at the brewpub in my town is enjoyable, but only slightly worse than the stuff from the AB brewery, then I am going to buy locally. If the difference is large enough, then I will look elsewhere for a better product. I don’t think this issue should be looked at as if you either buy solely based on quality, or you buy solely based on proximity. You can buy primarily based on quality, but still factor proximity into your purchasing decisions.

 
Reid
beers 3533 º places 95 º 11:20 Sat 1/24/2015

I still cant think of a bad beer from a local brewer up here that is so bad i would take say Honkers Ale instead.
Then i again id did have a bad experience last few days with bottled De Garde product..and this is a solid brewery.
I have had average beers certainly but would take an average local over an average beer thats been trucked in from 2000 miles away