34 replies to this topic

[3rd party JKor]

you need to look at the bajillion small breweries out there.  most of them never make it big and a lot of them never make it period.

 

 

This.  There are over 3,000 craft breweries in the US.  Most people have never even heard of more than a handful, 20? 30? 

 

You can say you're in it for the craft, but when you're running a 50,000BBL brewery you're probably spending 99% of your time dealing with stuff besides the craft.  I can see how a big buyout would appeal to someone in that situation.

 

That being said, I'd have a hard time saying no to $12M dangling in front of my nose. It's almost #### you money.

 

Almost?!

[SchwanzBrewer]

This.  There are over 3,000 craft breweries in the US.  Most people have never even heard of more than a handful, 20? 30? 

 

You can say you're in it for the craft, but when you're running a 50,000BBL brewery you're probably spending 99% of your time dealing with stuff besides the craft.  I can see how a big buyout would appeal to someone in that situation.

 

 

Yup. Some people aren't cut out to be managers. They are artists and they do it to create. 

 

 

Almost?!

 

Depends. Lets say you've been brewing for 6 years, you're wildly successful, but you're only 34-36 years old. $12M is a lot, but it's not #### you money. You could live comfortably for the rest of your life if you were careful, but odds are your job will become managing that money to make it grow or sustain itself. If that means real estate, stock market, or whatever, it's not guaranteed to last for the next 50 years. In any case, it will make you do work. Joey Redner at Cigar City comes to mind in this scenario. 

 

In Cantwell's case, he's 56 years old. He probably already has some money, but this buy out is enough so he could retire very comfortably.

[BlKtRe]

typically a non-compete would go beyond that in other industries. 

 

So brewers moving from one brewery to another or brewers leaving to open their own business are just screwed. I have yet to see a non compete in the brew business. 

[matt6150]

Yup. Some people aren't cut out to be managers. They are artists and they do it to create. 

 

 

Depends. Lets say you've been brewing for 6 years, you're wildly successful, but you're only 34-36 years old. $12M is a lot, but it's not #### you money. You could live comfortably for the rest of your life if you were careful, but odds are your job will become managing that money to make it grow or sustain itself. If that means real estate, stock market, or whatever, it's not guaranteed to last for the next 50 years. In any case, it will make you do work. Joey Redner at Cigar City comes to mind in this scenario. 

 

In Cantwell's case, he's 56 years old. He probably already has some money, but this buy out is enough so he could retire very comfortably.

Dude $12M over the next 50 years is $240K a year. I could live very comfortably off of that without having to be all that careful and not make me do any work managing it. But that's me I am simple like that. I mean I would still have plenty of fun but I wouldn't be buying up jets and islands or anything.

[neddles]

Dude $12M over the next 50 years is $240K a year. I could live very comfortably off of that without having to be all that careful and not make me do any work managing it. But that's me I am simple like that. I mean I would still have plenty of fun but I wouldn't be buying up jets and islands or anything.

Yep. Not sure what Schwanz's tastes are or his investing prowess, but 12M is definitely #### you money around here.

[SchwanzBrewer]

Yep. Not sure what Schwanz's tastes are or his investing prowess, but 12M is definitely #### you money around here.

 

I only get the finest hookers and blow. 

[positiveContact]

So brewers moving from one brewery to another or brewers leaving to open their own business are just screwed. I have yet to see a non compete in the brew business. 

 

depends if they signed a non-compete.  i wouldn't want to go up against inbev's lawyers.

[3rd party JKor]

So brewers moving from one brewery to another or brewers leaving to open their own business are just screwed. I have yet to see a non compete in the brew business. 

 

 

I think he's referring to one brewery purchasing another brewery, not just moving to another brewery.  Non-compete as it relates to mergers and acquisitions is a whole different ball of wax than an condition-of-employment non-compete.

[positiveContact]

I think he's referring to one brewery purchasing another brewery, not just moving to another brewery.  Non-compete as it relates to mergers and acquisitions is a whole different ball of wax than an condition-of-employment non-compete.

 

yeup.

[denny]

So brewers moving from one brewery to another or brewers leaving to open their own business are just screwed. I have yet to see a non compete in the brew business. 

 

No, that's a different matter.  They're not the owner.  And despite the fact that you've never seen one, they are quite common.

[brewguy]

Is there a site that tracks this? I have a hard time believing this is anything more than a shelf space game. The local Safeway does not have a huge section of craft 22s, and 10 Barrel and Elysian both take up multiple spots of the limited space. I stopped buying 10 Barrel, and I'll add Elysian to the list, but it's harder and harder to pick out the BMC from the rest of them.

[SchwanzBrewer]

Is there a site that tracks this? I have a hard time believing this is anything more than a shelf space game. The local Safeway does not have a huge section of craft 22s, and 10 Barrel and Elysian both take up multiple spots of the limited space. I stopped buying 10 Barrel, and I'll add Elysian to the list, but it's harder and harder to pick out the BMC from the rest of them.

 

Article I read the other day summed it up pretty good. The products will remain the same. They will still be innovative. But, more than likely they'll get better distribution and also a couple core brands that aren't so edgy will go national, much like Goose Island did with their 312 pale ale and Honkers. Those will go in the shelf space you talked about. 

[brewguy]

Article I read the other day summed it up pretty good. The products will remain the same. They will still be innovative. But, more than likely they'll get better distribution and also a couple core brands that aren't so edgy will go national, much like Goose Island did with their 312 pale ale and Honkers. Those will go in the shelf space you talked about. 

 

Even if the product remains the same, I'm still going to avoid 10 Barrel and Elysian. As more and more of the smaller breweries get bought up, I would like a good resource to figure out who doesn't fall under the BMC umbrella.

[3rd party JKor]

I would like a good resource to figure out who doesn't fall under the BMC umbrella.

 

 

Here ya go:  Drink good beer. 

[brewguy]

Here ya go:  Drink good beer. 

 

Both 10 Barrel and Elysian have good beer choices. My problem with the buyouts is that I do not agree with their owners' business practices. They no longer have to compete on product quality. They can use their influence with distributors and retailers to win business against someone who is trying to compete on product. This isn't a problem if I'm picking up beer from Belmont Station, where there is no lack of shelf space, but it does limit the choices at Safeway.