What Did Anheiser Busch Buy Blue Point Brewery for

Thread Status:: Not open for further replies.

Page 2 of 7

^Almost pulled directly from my head. Its a tough world.

sunnrider and hopley like this.
It should be mentioned that maybe In-Bev actually did their homework here. Walk into any bar in NY/NYC and you will see toasted lager is probably the #1 replacement for Bud for bars who don't serve swill. I could see them trying to push Toasted Lager across the country asap as a nice gateway beer.
For the record, this means that they are building a new brewery on Long Island, and probably won't be contracting upstate anymore. That is the key. They've needed a new brewery for sooooo long. And employees are staying. This is much different than Goose... beer isn't going to be brewed by AB employees/brew teams at AB plants. It's much more of an investment for them to be a much larger regional brewery on the East Coast.
Agreed, as Toasted is VERY close to outselling BL on Long Island and NYC...
Another one bites the dust!
I don't think that's the case, but c'mon, it's business. In the end it's about money, so if they wanted to sell, so be it, it's their right. It's just another example of the "big" companies buying up smaller guys. Good for BP that they are doing well enough to be bought, but there is so much that those big guys do that prevent smaller companies from really making an impact, I can only feel negative about the situation.
guinness77 Poo-Bah (2,088) Jan 6, 2014 New York
Society

Been going to the brewery for 15 years now every couple months, I said it earlier, they make nothing crappy, nothing outstanding. IMO the Mosaic, Toxic Sludge and the Sour Imperial Cherry Stout are the only beers that are anything above average.
JackHorzempa Poo-Bah (5,499) Dec 15, 2005 Pennsylvania
Society

"Still, for a company which wants to be seen as the premier brewer in the world you would think that they would have the confidence in their own brewing and marketing abilities to put something out there that is their own. This seems like somewhat of an admission of failure."
Patrik, I am not a beer industry guy but based upon my reading of BA posts, breweries like AB have a BIG challenge selling their beer to BAs (and other craft beer drinkers). It is entirely possible that AB could make a world class IPA, PA, etc. but a significant number of BAs (and other craft beer drinkers) would refuse to purchase the beer if it is labeled as being a BMC beer. I have no knowledge of the Goose Island beer sales volumes (before and after acquisition) but it is my guess that Goose Island is selling more beer under the AB umbrella then they did before. In other words, I do not think AB ownership of Goose Island has diminished sales but you could argue it has increased sales.

An example where AB made a high quality (craft type) beer in the past was Pacific Ridge Pale Ale (an APA on the lines of SNPA). By all reports it was a tasty beer (only distributed on the West Coast, I think) but I am guessing that it didn't sell well since it was discontinued.

It seems to me that the business guys at AB decided that the 'best' way for them to obtain some craft beer dollars is via acquisition of craft breweries and that may indeed be the 'best' business decision.

BAs (and other craft beer drinkers) can be challenging people to sell beer to.

Cheers!
HighLowJack Disciple (373) Jun 5, 2013 Massachusetts
Trader
2Xmd Initiate (0) Apr 19, 2013 New York

Is that confirmed about a new brewery?
JackHorzempa Poo-Bah (5,499) Dec 15, 2005 Pennsylvania
Society

"Anheuser-Busch also plans to invest in the brewery to grow its operational capabilities and enhance the consumer experience over the next few years."
Do you have any specific information beyond what is mentioned above? I truly hope that all Blue Point beers would be brewed at an expanded brewery on Long Island. As regards Goose Island Brewing, AB brews the more 'mainstream' GI beers (e.g., Honker's Ale) at AB breweries (Baldwinsville, NY I believe).

Cheers!
Crusader Disciple (363) Feb 4, 2011 Sweden

I'd say that part of their goal is to be seen as the premier brewer of the world, as part of their branding and maketing efforts, even if BA's are completely uninterested in the marketing of the big guys. Prestige is a factor for the big four. Additionally their business models are geared towards premiumization and trading up, even as they also seek to dominate the lower rungs of the value pyramid with their budget brands. Craft beer has come to represent the highest rung (i.e the most expensive) in that value pyramid for these companies and they obviously want a slice of that pie as you said. It used to be that ABInbev could "create" a super premium (more expensive) category by themselves with Michelob and charge top dollar for it (although I'm not sure whether some imports were always the most expensive in the US market), a category which the other major brewers tried to enter with their own products. Nowadays it seems as though the highest rung on the value pyramid is unaccessible for the big brewers, and that's what I consider, from their point of view, as a failure. They're no longer in control of the top rung.
Then again, with the fractioned state of craft beer, and the emphasis on small, local and independent (the antithesis of the big brewers) it is only natural that there are barriers to entry for the big brewers. And in order for them to enter it, they have to buy their way in by buying an independent brewer.

I just think it's an interesting dynamic from a business standpoint.
guinness77 Poo-Bah (2,088) Jan 6, 2014 New York
Society

I find it really ironic that AB-In Bev is "investing" in a brewery primarily known for its lager.
Alright.
I have had a few Blue Point beers and they were alright, but they can kiss my ass now.
See ya later, Blue Point. I like Toxic Sludge but once you sell to AB-Inbev, bye-bye.
Correction:
"We want to remain a small, local, independently-owned and operated microbrewery with absolutely no corporate ties" until someone offers up $24 million.
Remember: Everyone has their price.
And only another 2.300+ to go!
I only tried a little of the Toasted Lager that my wife ordered in a bar in Ann Arbor. It was a Diacetyl buttery mess of a beer. Is this normal, or could I chalk it up to dirty lines?
2700+, maybe more at the rate they are opening.
Providence Crusader (798) Feb 24, 2010 Rhode Island
Trader

Do you refuse to buy all Goose Island products as well? Just curious.
Honestly, it seemed like a matter of time before this happened. I suspect their sales growth is directly connected with more potential buyers since the industry has grown about ten fold in the past five years. Years ago, when IPAs were helping this industry boom, Blue Point's Hoptical Illusion was something to chase after and because it lived up to all the hype surrounding it people would try other recipes such as their ESB, Blueberry Ale, and Toasted Lager. Blue Point became a company that we all trusted. Unfortunately, ever since RastafarRye came out they've been just hanging on to the end of the rope. They're not making anything interesting and their bottle art just reeks of big business's shitty attempt at looking craft. Blue Point doesn't have the lure that they once did. They needed this.
Crusader Disciple (363) Feb 4, 2011 Sweden

Well it is interesting to consider the apparent paradox here. On the one hand they made a high quality beer which was apparently comparable to a well regarded craft beer, yet it failed in the market. On the other hand they are able to buy an already existing brewery and their brands, and are able to propell the sales of those brands via increased distribution. To me this would seem like a failure from their point of view, of not being able to sell a good product that they themselves created, of having to buy into someone else's successful brand. But it does have an explanation in the preferences of craft beer drinkers for a product made by a small and independent company, something ABInbev cannot live up to. And I agree that craft beer drinkers appear to be a challenging group of people to sell beer to.
Too bad, so sad, but that's business for ya. Hoptical was something I looked forward to during trips to LI. It can be hard to find fresh Upstate. That's about to change, so will the quality.
Yeah, I thought so too but I wasn't sure and wanted to err on the low side.
adhuntr Initiate (0) Nov 16, 2012 New York
epk Initiate (163) Jun 10, 2008 New Jersey

Quality-wise, I agree. And of course it could now have massive marketing efforts behind it, which may actually turn some macro drinkers to craft beer.
On the other hand, I guess a possible repercussion is Blue Point will now be pushed down the throats of the retailers, taking up more shelf space and taps (in areas where it does not already have such a following) that may have gone to one of the other guys. Potentially less revenue for them.
rozzom Meyvn (1,055) Jan 22, 2011 New York
Trader

I hear rumours that ABI will turn Bluepoint into a BCBCS factory
What is their expansion plans? Double, triple production?
Providence Crusader (798) Feb 24, 2010 Rhode Island
Trader

Would you buy if it you saw it?
does anyone have any accounts of the bmc shitheads offering money to a craft brewery and them turning it down? would love to hear a story about that
JackHorzempa Poo-Bah (5,499) Dec 15, 2005 Pennsylvania
Society

"To me this would seem like a failure from their point of view, of not being able to sell a good product that they themselves created,…" Needless to say that I can't speak for the AB InBev Management Team but I highly suspect that their number 1 metric for success is financial performance (increased sales, increased revenue and increased profits).
I can only rationalize that money is the primary (sole?) motivator based upon product introductions like Bud Light Lime-A-Rita, Bud Light Straw-Ber-Rita, Bud Light Cran-Ber-Rita, ….

Cheers!
Blue Point is like most breweries, they make some very good stuff, some just ok offerings ( Toasted Lager), some shitty brews (Rastafa Rye)!
Pete and Mark would be fools not to take the money!
abkayak Initiate (0) Jan 8, 2013 New York

Toasted is if nothing else nonoffensive...im going dirty lines
and i admit to liking old howling bastard....my first barleywine
RKP1967 Disciple (308) Sep 26, 2010 Virginia

A gateway beer to what? Non-Inbev products?
RKP1967 Disciple (308) Sep 26, 2010 Virginia
thats too awesome...good for them go lagunitas