Saturation Dept: Craft Brewing - due for a shakeout?

The problem with beer was that it wouldn't survive a long voyage, ergo rum and other distilled spirits. Still, beer later became a wondrous thing, with each community having its own unique brewery and style. We were loyal! That changed, but of late, Craft Brewing appeared and gone mad - with over 3000 of the buggers and 100's of weekly new releases, ergo a blood, er beerbath is in the offing. Until then - this section...
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Capn Jimbo
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Saturation Dept: Craft Brewing - due for a shakeout?

Post by Capn Jimbo »

Remember Beer Wars (the movie)?


This one was all about the fight for taps and shelf space and how the Big Three of Beer reacted by creating Potemkin "craft" brands, and in every way possible making it difficult for craft brewers to grow. Their tactics make the Mafia look like pussycats.

I also spoke of Sam Calagione's (Dogfish Head) prediction that there was a falling out coming. It's starting...

"It had to happen. This month has seen two US craft brewers take investment from private equity firms as they look to steal a march in the still, fast-expanding sub-category.

Utah's Uinta Brewing Co has agreed a deal with The Riverside Co, while last week it emerged that New York state's Southern Tier Brewing Co has sold a chunk of the business to Ulysses Management.

Some in the craft beer community will regard Unita's and Southern Tier's moves as an unforgiveable dance with the devil. Larry Bell, founder of Bell's Brewery, told Bloomberg last year: “Do you really want to sell ... to some private equity people that are just there to make a bunch of money and flip it?

But, with private equity coming to the US craft beer party, what does this tell us? Is it a sign that some small producers fear market saturation and want to get ahead of their rivals?"
Sound familiar? Do the words Chip Tate mean anything to you. Equity money is a turkey shoot. Craft brewers and distillers may know how to make spirits and suds, but cutting the right deal isn't at all that simple. Sam did well, Tate not so much. It may well be that some forward thinking and successful craft brewers see the bloodbath coming and want to get above the fray.

You heard it here...




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Beer Wars can be viewed - free - and is a must see. An engaging and VERY educational documentary by a small brewer (female) who fights to establish her brand:
http://rumproject.com/rumforum//viewtopic.php?t=1236
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