A Bell Ringing in Belgium

I haven’t had to weigh in with comment on the business side of brewing for quite a bit but yesterday breaking news arrived that Bell’s Beer was joining New Belgium which itself is part of Lion (aka Kirin).

I know that is a bit of a complicated flow chart but it boils down to the two iconic breweries becoming siblings of a sort.

And it doesn’t strike me as a bad thing. Then again, I am non-plussed when it comes to good breweries banding together. Sometimes it won’t work but it can produce a bigger company that can then do more.

My usual advice stands. Monitor both breweries beers and if the nothing changes, don’t worry, be happy.

SamDog

Just when you thought it was over, the shuffling begins anew.  This time biggest of the craft beer guys (since the Brewers Association keeps raising the cap), Samuel Adams is merging with Dogfish Head.

You can read about the dollar amounts and the shares owned by whom on other sites and you can head to Twitter for the semi-comedic hot takes but I want to focus on questions I have for the combined brewing group in the future.

First, the aforementioned cap raising will need to be raised once again, maybe not this year but even with the smaller amount that Dogfish produces they will more than likely be pushing up to the line sooner rather than later.  If the Brewers Association was loathe to kick Boston Beer out of the club, they sure as heck ain’t gonna kick out Boston Beer and beloved icon Sam Calagione in one fell swoop.  Each time Boston Beer is snuck in it seems to raise more consternation amongst the members about what and who the Brewers Association stands for, expect it to be a thorny issue again.  It probably won’t lead to a rival band of brewers in their own group but you might see an internal split with larger members on one side and smaller in their own group.

The next agenda item is what the mixing of the companies will be.  Operated separately just under the same umbrella?  Sharing some resources but brewing kept separate?  Boston Beer is tilted to the non-beer side just a skosh in recent years with ciders and seltzers and hard this and hard that.  How does that affect the brewing philosophy in Rehoboth Beach?  The slightest deviations are going to be analyzed by beer fandom.

How does this affect the future of Jim Koch and the Calagiones and how will that affect the street cred of both?  More interestingly, what happens when both retire off to a remote island, what do the two brands stand for then?  It is not bad to have a CEO from another beverage company in charge but who is the totem for fans to latch onto when the names on the back of jersey change?

I am sure that this merger will be a topic of conversation and re-evaluation for years to come.

Rock Bottom + Gordon Biersch =

It seems consolidation and ownership changes are once again roiling the craft beer world. Anchor and Anderson Valley change hands and we all hope the quality stays high. But with the merger of Rock Bottom and Gordon Biersch, more complicated concerns arise.

Both Rock Bottom and Gordon Biersch have a place in the craft community. On the outside looking in due to a general disdain for chains from a consumer base that really values individuality. Their beers are absolutely fine (I would take GB’s over RB but that is because I have not been to Rock Bottom in a long, long time) but they are obviously aiming for the mid-range food eater first. Not a bad thing in a world of much crappier beer and TGI Friday’s. But they have chosen to stay in a comfortable place of above average while other breweries have focused on expanding palates and beer culture.

What I will be watching for in the coming year is how they stay separately branded. Do they combine their recipes? Do they make all the beer in San Jose? Because they dilute the beer world when they make GB the same as RB. We aren’t choosing one over the other because of the garlic fries. My hope is that the brewing operations stay separate and maybe expand to allow brewers the chance to experiment and come up with great new beers. Maybe even a new flagship brew will come out of the mind of someone given the opportunity to test and fail.

That is my first worry. That the beers will be the same in both chains. That would not be good. Not good for the brewers working there and not good for the new to beer crowd. Places like GB, RB and BJ’s are great incubators for brewers and customers. This is the front door to the land of beer with flavor and hops and if that door becomes homogenized it is bad for both parties.

I won’t feel much in the short term but I would like more blog readers and more craft beer consumers which would open up beer job opportunities. Both are not helped by gateways that become corporate.

My message to Gordon Biersch and Rock Bottom is to use the strength of the combined companies to create MORE not go into a safe shell.

UPDATE: I finished writing this and after checking a Blazer score read that Van Havig of Portland’s Rock Bottom got sacked for making comments about the merger and consolidation of beer menus. His came with more knowledge of the situation though. It pains me to see a company toss aside a great brewer. Poor form corporate!

UPDATE 2
It appears that the GB / RB owner CraftWorks has begun a defense of both the Gordon and Van Havig situations. First claiming that Oskar Blues was in the wrong for breaching an agreement. Which I can’t comment on since I have not seen the document and am not a lawyer and probably couldn’t read it anyway.

Three issues on their defense of the new, larger company scare me though. They have employed the Merger Defense. You know the drill. Two companies merge and someone in PR says that it is hard to combine two separate companies and that problems can arise. Standard boilerplate stuff to assuage fears. Seems very Dilbert to me

Second they have gone on the attack of some bloggers for reporting what they knew. Very snarkily to me, “Like beer, information is best when it is obtained fresh at its source. So let them chatter all they want…” That is poor form. Comment on the post. Blog your side but don’t passive-aggressive bloggers.

Third, they say don’t take it out on our talented brewers as if it was “our duty” to keep their business afloat. “I implore you to keep on open mind about what “Craft Beer” is and who defines it. We have 68 hard working brewers whose livelihoods and families depend on the wisdom of beer connoisseurs…”. Sounds like someone wrote this while still stewing about previous posts.

All in all, seems a little too defensive to me.