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  • Why We Hate It When Craft Breweries Become Successful

    • 10/05/2015
    • ADB
    • 0 Comments

    It has been a very interesting month for the craft beer industry.  Three of the larger craft breweries in California have been bought out or received significant funding from larger breweries.  Golden Road Brewing in Los Angeles, Lagunitas Brewing in Petaluma and St. Archer in San Diego have been bought out by Anheuser Busch, Heineken and Miller/Coors respectively. 

     

    I found this to be somewhat disconcerting, because on a number of instances where smaller breweries were bought out by the big dogs, the product suffered.  Back in the 1980’s, I remember drinking an unknown Texas beer called Shiner Bock.  It was inexpensive and even better, tasted great.   I left the area for a while and was shocked how popular it had become when I returned.  It not only was popular in Texas, but throughout the country.  For a long time it was my go-to beer.  I liked that it was an independent beer.  However, as with many things, they sold out to Anheuser Busch.  It has never tasted the same since. 

     

    I had a similar experience with Red Hook, which started out as an independent brewery in Seattle. This is why I was concerned about the sale of three breweries that I enjoyed.

     

    The sad reality is that if something is good, whether it music, movies, and even beer, at some point it will be co-opted.  Corporate America is not known for setting trends.  It is easier for them to buy into them and create their version, which often destroys the product.  Larger companies are interested in quantity, not quality.  This flies in the face of the craft brewing industry.    I was recently complaining about this to a Southern California brewer and he actually had an interesting take.  He pointed out that breweries such as Fulton Street Brewery (Goose Island) sold their interest to Anheuser Busch and InBev, and the Goose Island brand is as strong as ever.

     

    The truth is, we don’t like it when our thing becomes everyone’s thing.  When you find a cool band that nobody knows about, it becomes a very personal thing.  It makes you feel like you are a part of it in some small way.  When that band becomes popular, you feel betrayed because it is no longer only your thing.  The craft beer industry is very similar in many ways.  The product is still good, just not as personal as it was before. 

     

    It is unfair to accuse any of these breweries of selling out.  They have been successful and they get to reap the benefits of their success.  When you have a business that is growing, it doesn’t mean that they are making money hand over fist.  Your expenses for raw materials increase, you have to buy more equipment and larger spaces.  Whether through selling partial or complete interest, it allows the product and brand to grow and reach a wider audience.   We get mad when indie bands sign to major labels, when sports figures change teams through free agency and when our favorite breweries sell their interests to larger companies.

     

    The irony is that for most people, the opportunity to make more money by changing jobs is a no-brainer.  Someone is going to pay you more money to do your job, sign me up.  I think the word that comes to mind is hypocrisy. 

     

    There are a lot of great craft breweries out there making really good beer.  As the industry continues to grow, there will be others that will cash in on their hard work.  That doesn't always mean that the product will suffer.  Do we think the beers change because they are not being produced with the care they were previously given, or because it is no longer just "our thing".  Regardless, at the end of the day, we will all still be able to find good beer. 

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Why We Hate It When Craft Breweries Become Successful

It has been a very interesting month for the craft beer industry.  Three of the larger craft breweries in California have been bought out or received significant funding from larger breweries.  Golden Road Brewing in Los Angeles, Lagunitas Brewing in Petaluma and St. Archer in San Diego have been bought out by Anheuser Busch, Heineken and Miller/Coors respectively. 

 

I found this to be somewhat disconcerting, because on a number of instances where smaller breweries were bought out by the big dogs, the product suffered.  Back in the 1980’s, I remember drinking an unknown Texas beer called Shiner Bock.  It was inexpensive and even better, tasted great.   I left the area for a while and was shocked how popular it had become when I returned.  It not only was popular in Texas, but throughout the country.  For a long time it was my go-to beer.  I liked that it was an independent beer.  However, as with many things, they sold out to Anheuser Busch.  It has never tasted the same since. 

 

I had a similar experience with Red Hook, which started out as an independent brewery in Seattle. This is why I was concerned about the sale of three breweries that I enjoyed.

 

The sad reality is that if something is good, whether it music, movies, and even beer, at some point it will be co-opted.  Corporate America is not known for setting trends.  It is easier for them to buy into them and create their version, which often destroys the product.  Larger companies are interested in quantity, not quality.  This flies in the face of the craft brewing industry.    I was recently complaining about this to a Southern California brewer and he actually had an interesting take.  He pointed out that breweries such as Fulton Street Brewery (Goose Island) sold their interest to Anheuser Busch and InBev, and the Goose Island brand is as strong as ever.

 

The truth is, we don’t like it when our thing becomes everyone’s thing.  When you find a cool band that nobody knows about, it becomes a very personal thing.  It makes you feel like you are a part of it in some small way.  When that band becomes popular, you feel betrayed because it is no longer only your thing.  The craft beer industry is very similar in many ways.  The product is still good, just not as personal as it was before. 

 

It is unfair to accuse any of these breweries of selling out.  They have been successful and they get to reap the benefits of their success.  When you have a business that is growing, it doesn’t mean that they are making money hand over fist.  Your expenses for raw materials increase, you have to buy more equipment and larger spaces.  Whether through selling partial or complete interest, it allows the product and brand to grow and reach a wider audience.   We get mad when indie bands sign to major labels, when sports figures change teams through free agency and when our favorite breweries sell their interests to larger companies.

 

The irony is that for most people, the opportunity to make more money by changing jobs is a no-brainer.  Someone is going to pay you more money to do your job, sign me up.  I think the word that comes to mind is hypocrisy. 

 

There are a lot of great craft breweries out there making really good beer.  As the industry continues to grow, there will be others that will cash in on their hard work.  That doesn't always mean that the product will suffer.  Do we think the beers change because they are not being produced with the care they were previously given, or because it is no longer just "our thing".  Regardless, at the end of the day, we will all still be able to find good beer. 

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