In case you haven’t heard, this was the news that most of the beer world woke up to:
What a turn of events. The deal is for $38.8 million split up between AB buying 58% for $22.5 million and Craft Brewers Alliance selling its 42% stake in the company for $16.3 million.
The initial reaction around Twitter was fairly swift and predictable. Personally, I tend to disagree with many of these opinions and here’s why.
To understand this deal I think you need to understand Goose Island and what the brad was as of Sunday, the day before we all got the news.
On Sunday, Goose Island was a brewery that was well respected within the brewing industry. Beer geeks adored many of their beers. I remember the excitement we felt here in the Bay Area when we discovered we would be getting Matilda, Sofie and Peres Jacques shipped to out shelves. Bourbon County Stout, for many, defined the style of a bourbon barrel aged imperial stout. The company was seen as a leader in terms of innovation for brewing styles as well as sustainability techniques. In short, it was good to be Goose Island.
But Goose Island had a secret. Goose Island was partially owned by Anheuser-Busch money. The Craft Brewer’s Alliance owned 42 percent of Goose Island (aka the Fulton Street Brewery LLC). The Craft Brewer’s Alliance is partially owned by Anheuser-Busch (32.25%). As of Sunday, Anheuser-Busch essentially held a 13.5% stake in Goose Island.
Here’s the thing, it wasn’t a secret. In fact, most people knew about the Craft Brewer’s Alliance and the interest of Anheuser-Busch. In fact, it was just a few months before this that the CBA pulled a similar move and bought out the remaining interest in Kona Brewing, a brewery that was in Goose Island’s shoes just a few months prior. The CBA has been using the Anheuser-Busch distribution channels and the new deal only enhances that agreement.
Today is Monday. Goose Island has announced that financially, the brewery will be in the hands of Anheuser-Busch. Greg Hall, former brewmaster of Goose Island, will be stepping down, John Hall, former owner of Goose Island, will now be CEO and former head brewer Brett Porter will be the new brewmaster.
With the same people in place and managing the brand, I find it hard to believe Anheuser-Busch will make significant changes, especially with regards to the craft beer world and the beers we love so much. Most importantly, I doubt Greg Hall would stand by and watch the brand he created and nurtured be turned into a glorified version of Shock Top. The important players with Goose Island staying in the mix says a lot about where the company plans to go.
Correction - John Hall, former owner will be the new CEO and Greg Hall is simply stepping down. Regardless of this little piece of misinformation, I stand by my opinion regarding the continuity within the new company that will give hope for the future.
When it comes down to it though, we can’t judge this deal for at least another year. I love craft beer because it tastes great. If Anheuser-Busch were to produce great tasting beer, I would have no problems with that. If Goose Island continues to brew the same beer it has brewed before today, shouldn’t we love it the same?
The idea of ownership changing a beer is ridiculous in my mind. Yes, owners can change the process. Yes, owners can gut the product in the name of efficiency and profit. Unless we see this actually happen with Goose Island, I don’t think it’s fair to start personal boycotts on the brand.
In a couple weeks, it will be official and Anheuser-Busch will own Goose Island. Haters will point to this as their reason, ignoring the fact that Anheuser-Busch has been the one serving them Goose Island for years. These same haters will sit down at a craft brewery and drink down their beer without the slightest idea of whose pocket they be lining. Do we know where the money that funds our craft brewery has come from? Can we make these judgements based on ownership of one brewery when we don’t know even the slightest about others?
Goose Island made their name brewing excellent beer. Tomorrow, the same people that brewed that beer will go into the Fulton Street Brewery and continue to brew, bottle, package, ship and deliver that same beer. As time moves on, we should continue to judge Goose Island based on what we experience in our pint glass.
Well said.
Thank you for being a rational point of view. We’re talking about this on our podcast tomorrow night and I’m definitely in the same corner of the debate as you are.
Cheers!
It’s not surprising, like you said, since AB has that CBA stake. But it’s a very nerve-wracking move for us craft beer consumers. I don’t want to see my Honker go macro.
As you mentioned, so long as the head brewers keep brewing and AB doesn’t have the guts to pull corporate on Goose Island beers, I’m cautiously optimistic.
I agree with Mario. After tasting a wide variety of Goose Island beers at last year’s Craft Brewers Conference in Chicago, I was very impressed with their brewer’s art across the board. Maybe this new financial arrangement will help expand their distribution footprint so more of us can get these great beers on a regular basis.
I have a few problems with ABI, most of which I learned from Beer Wars. I cannot support a company that uses everything from legal (which is usually okay) to gray-area to illegal practices to push out competitors. Not to mention frivolous lawsuits. Maybe such lawsuits as Dogfish Head experienced had no ground but the small brewer has to sink thousands of dollars, which may or may not affect the bottom line, to defend themselves.
It’s the principle of the matter. Goose Island is good beer. ABI is a bad company. When faced with alternative choices, I will not drink Goose Island beer.
FYI, John Hall will continue to be CEO of Goose Island, not Greg Hall. Greg Hall is John’s son and has been the Goose Island brewmaster. Greg is reportedly stepping down from this role but will continue to be involved in some way.
Yeah, same thing was said about leinenkugel when they began to “partner” with Miller. Now it’s made in Milwaukee just like the rest of the crap Miller produces. I won’t be drinking Goose Island anymore!
What happens when they decide to increase distribution and start brewing the beer outside of their current brewery, just like they did with KONA. Majority of the KONA was being brewed in Portland at the Widmer brewery. Goose Island will start brewing outside of their current location very soon to meet distributions demands.
Author says:
“Haters will point to this as their reason, ignoring the fact that Anheuser-Busch has been the one serving them Goose Island for years. These same haters will sit down at a craft brewery and drink down their beer without the slightest idea of whose pocket they be lining.”
ORLY? Thats quite a negative generalization…
Most real craft beer fans I know were very rightly leery since AB was involved with GI considering the shady business practices AB has shown over the years to squash competition on their very real quest for world domination.
That reason alone is heart breaking that our local beer now just sold all the way and is an excellent stand alone reason why there is a backlash.
I stand with many in refusing to buy GI beer anymore. With so many other excellent independent craft breweries out there I have no reason to support this new complete addition to the BMC Monster.
That said, GI will surely grow thanks to the casual fan finding the beer more often in their local liquor store/grocery/convenience mart etc. InBevs national/international take over of shelf space via clout and shady practices (especially here in Corrupt Chicago) continues on as business as usual.
I also do wonder what the label will reflect after all is said and done since everyone knows knowledge is power. I’m guessing it won’t tell the full truth like many owned by these giants as they love deceiving the gen pop/casual drinker.
Just another Blue Moon…labeled as “Blue Moon Brewing Company” but made by Miller/Coors.
“The idea of ownership changing a beer is ridiculous in my mind.”
Tell that to the people who worked at Rolling Rock in Latrobe. Yeah, there’s a chance that AB will allow Goose Island to continue brewing and operating as it has the way CBA did, but AB isn’t a brewer, it’s a corporation. It cares way less about what you or any beer wonks think of the product and way more about maximizing profits. Profitability over “drinkability.” All we can do is wait and hope.
I am quite leary of this change. It’s a big difference between having a stake in a company vs controlling ownership. AB’s track record is one of slash & burn. They want the highest margins in the industry & since Inbev acquired them, the push to this has been even more aggressive.
AB’s announcement about the merger wasn’t exactly comforting. They also intend a double-digit increase in advertising for Shock Top, Stella Artois, & Landshark Lager. If only instead, they would put that money into making beer better by improving the quality & taste.
Let’s start off by closely watching how the new Goose takes care of their good employees. Do they cut them or string them along before cutting them? AB’s prior record indicates they may indeed toss them aside to “increase efficiency” & improve margins. Time will tell. I hope I’m wrong. But history suggests I’m not.
In regard to the beer itself, the taste will be an indicator. Does the quality of their premium brands continue to be sustained? The beer will ultimately speak the truth to us through taste in a way PR & marketing cannot.
Will it change the beer? Not necessarily…and good beer is good beer…there is no denying that. But, I agree with David above that InBev’s shady distribution practices are NOT GOOD FOR SMALL CRAFT BREWERS.
So, while good beer is good beer. I will choose not to buy beer from a company whose sole mission is to hack away at the meager 5% market that good craft beer has earned over the course of three decades…thank you very much!
Buy local craft beer and support your community!
[...] Mario Rubio: “Unless we see this actually happen with Goose Island, I don’t think it’s fair to start personal boycotts on the brand.” [...]
Fair enough, on the surface. And as long as the ownership is common public knowledge, the public can make an informed choice. But how many people really know these hidden ‘public” facts anyway? The bigger issue for me is the “WalMart-ization” of craft brews, along with most everything else in this country. Years ago when microbreweries first came on the scene, they weren’t considered much of a threat to the big corporate breweries, who made more beer in a day than all these Mom-and-Pops together made in a year. But as soon as the mega-brews saw there was an emerging market, they started to feed on it like parasites. Killian’s Irish Red was one of the first stealth “craft beers.” Microbrew in packaging only. Sure, consider this to be a completely separate issue, but I don’t like the corporate hand getting controlling interest in these breweries that were conceived as a labor of love and are serving as unique local and regional businesses. There are sure to be creeping changes based solely on the shareholders’ quarterly report.