So, I decided since this is a blog all about beer, it wouldn't hurt to comment on beer news I garner through the grapevine from time to time. We could be talking about new breweries, expansions, or industry shake-ups.
This post is dedicated to Tony Magee (@lagunitasT on Twitter), who was recently very active in support of his own company/employees, but small breweries everywhere. Plus, Chicago and the brewery formerly known as Goose Island got in there too, which makes me happy Tony still has love for his original city. Before we go any further, well done Tony, well done indeed.
So, according to his Twitter posts, some executive, the one that captured the contract with Goose Island, from AB-InBev began a process of wining & dining Tony. This was not the first time a decent sized craft brewery has been approached by one of the dreaded "Big 3," and it certainly won't be the last. Hell, it wasn't that long ago Sam from Dogfish Head had to turn someone down from another conglomerate.
Well, Tony's responses on Twitter were not only hilarious, but they proved a point that all brewers must respond to at some point: to sell or not to sell. While some will make the decision to give the reigns over to some faceless company that has to focus on investors and their returns, the ones that remain strong are the ones we need to thank for moving the craft beer industry to a point where the "Big 3" have to consider these moves more and more often. Why? They are losing business to the little guy, and that is seen as a problem. Why do you think we see more and more of the big guys joining up in the last 10-15 years? This trend will continue until there is an equilibrium, more or less, in the industry, or craft wins/loses totally to the "Big 3".
So, does that mean I'm upset when some craft brewery makes the decision to sell? Not necessarily, but the game that is being played is a simple one. The "Big 3" control so much revenue, and therefore have a lot of sway in the way the overall industry is directed. When they capture a craft label, it is to add another feather in their cap for additional revenue for the investors. If that stream begins to underperform, you will see it either be cut in quantity, quality, or just removed altogether. This is very plainly on display for the consumer that is savvy enough to see it with Goose Island; look at the bottle next time, because they are no longer brewed in Chicago or by the watchful eye of a GI brewmaster. The various offerings they have generated lately seem to be less and less underpinned with the goal of quality, sacrificing some ingredients for cheaper ones. And how the hell is 312 Urban Wheat if it isn't even coming from the 312 area code?!
Some breweries are taking a different approach to this issue by going to an local or employee-owned system. Schlafly in St. Louis recently took that stance, and not only are they thriving, they are showing strong everywhere you look, even expanding into new markets. So, selling, so to speak, can be done in a way that helps in terms of cash as well as perserving the atmosphere of the brewery when it first opened.
I guess the overall thing to take away from Tony & Lagunitas being able to stand up and say no should mean that in this industry tipped highly in the favor of the "Big 3" there are still beacons of hope. Hope in the original purpose of a brewery to be in it for the beer first, the money and glory all come in a distant second. So, tonight, raise a glass and say thanks to Tony and the other small local guys that you support; they are not alone!
As always, drink well and be merry. Slainte!
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