[Steve Ruch]

Here we go again....

Cue Elysian haters in 4...3...2...

I'm not an Elysian hater or a hater of anyone who makes a business decision that he feels is best for him or his company, but Elysian now drops to the bottom of my list of breweries to buy from.

[HoosierBrew]

I'm not an Elysian hater or a hater of anyone who makes a business decision that he feels is best for him or his company, but Elysian now drops to the bottom of my list of breweries to buy from.

That's how I feel. Good for Elysian and their families. But I won't support BMC by buying it afterward.

[duboman]

Personally I don't get all the hub bub about this or any of the others that have "sold out"

Everyone said the same thing here in Chicago when Goose Island sold out but yet they are still brewing great beer and people are still buying barrels of it!  In addition the sheer power they now have has allowed them to do some really great things in their distribution and barrel aging program as well.

There are so many new breweries opening all over the country right now and there will be more that prove successful and eventually decide to sell as well.

I get the whole small, local, kindred spirit thing but just because an owner seeks greener pastures doesn't mean they're selling out. No one ever really knows the whole story that determines the reasons.

If the beer is good, I'll drink it and I'll buy it. Do those that state they will never buy it again do it simply out of principal since its now owned by a multinational company? Personally if these types of things mean that I can now buy beer here that prior I couldn't get, and the beer is the same, I'm winning, not losing as a consumer.

How would people feel if Sierra Nevada or Anchor or Boulevard or Boston Beer were the big boy buying them or someone else, would it still be considered selling out?

[Thirsty_Monk]

The more I think about it the more I can't find the downside to these deals. The brewer, all the investors that helped them build, all get a nice return on their time and it opens up space in the market at the bottom for more new breweries. After all, there is no way that ABI is going to continue to maintain hundreds of tiny operations with all the overhead associated with that. They still don't seem to get that the consumer wants to buy from a small independent guy just as much as they want to buy xyz brand of beer.

It is a brewpub. Is AB getting into a food business? Good luck.

[morticaixavier]

The more I think about it the more I can't find the downside to these deals. The brewer, all the investors that helped them build, all get a nice return on their time and it opens up space in the market at the bottom for more new breweries. After all, there is no way that ABI is going to continue to maintain hundreds of tiny operations with all the overhead associated with that. They still don't seem to get that the consumer wants to buy from a small independent guy just as much as they want to buy xyz brand of beer.

It is a brewpub. Is AB getting into a food business? Good luck.

exactly! on comparitive scale it doesn't even matter if the profit margin is through the roof the actual net profit is a drop in the bucket to AB. It's just not going to be worth it to them to maintain the tiny separate operation.

[hopfenundmalz]

The more I think about it the more I can't find the downside to these deals. The brewer, all the investors that helped them build, all get a nice return on their time and it opens up space in the market at the bottom for more new breweries. After all, there is no way that ABI is going to continue to maintain hundreds of tiny operations with all the overhead associated with that. They still don't seem to get that the consumer wants to buy from a small independent guy just as much as they want to buy xyz brand of beer.

It is a brewpub. Is AB getting into a food business? Good luck.

exactly! on comparitive scale it doesn't even matter if the profit margin is through the roof the actual net profit is a drop in the bucket to AB. It's just not going to be worth it to them to maintain the tiny separate operation.

4 brewpubs and a semi-large production facility, total around 50K bbls.

[Thirsty_Monk]

The more I think about it the more I can't find the downside to these deals. The brewer, all the investors that helped them build, all get a nice return on their time and it opens up space in the market at the bottom for more new breweries. After all, there is no way that ABI is going to continue to maintain hundreds of tiny operations with all the overhead associated with that. They still don't seem to get that the consumer wants to buy from a small independent guy just as much as they want to buy xyz brand of beer.

It is a brewpub. Is AB getting into a food business? Good luck.

exactly! on comparitive scale it doesn't even matter if the profit margin is through the roof the actual net profit is a drop in the bucket to AB. It's just not going to be worth it to them to maintain the tiny separate operation.

4 brewpubs and a semi-large production facility, total around 50K bbls.

Interesting because money is in the brewpubs and not in production facilities. Just my opinion.

[erockrph]

He should start working on the sequel to his book: "Selling Your Own Brewery". I don't know if the BA will distribute it in light of the current situation, however.

http://www.brewerspublications.com/books/the-brewers-associations-guide-to-starting-your-own-brewery/

But seriously, good for everyone who got to profit on their own work. I don't care who makes the beer as long as it tastes good. If you don't like it, vote with your dollar. And so on.

Pretty soon this type of thing won't be news when it happens any more...

[pete b]

I agree with the assertion that this practice makes room for new microbreweries and hope we're right. I think another big factor in why the big corporations can't maintain the quality is that they cannot use the same high quality ingredients in the same amounts and make the necessary profit. I think a small brewer starts with a great beer, prices and markets accordingly, tries to get a bit more effecient where possible and then holds their breathe. A big corp knows how much profit a given product needs to make and works backwards from there.

[HoosierBrew]

I agree with the assertion that this practice makes room for new microbreweries and hope we're right. I think another big factor in why the big corporations can't maintain the quality is that they cannot use the same high quality ingredients in the same amounts and make the necessary profit. I think a small brewer starts with a great beer, prices and markets accordingly, tries to get a bit more effecient where possible and then holds their breathe. A big corp knows how much profit a given product needs to make and works backwards from there.

+1

[klickitat jim]

I was bsing with a brewer at Deschutes yesterday. The word on the street is Cantwell remains on scene running the operation. I imagine if he leaves, there is a lengthy non compete. The folks at Deschutes seemed to be fine with the deal, yet glad they are still family and employee owned.

[hopfenundmalz]

Some information and thinking points here.
http://brianyaeger.com/

[denny]

I believe they're going to need to rethink the slogan on their Loser Pale Ale.....

http://beerpulse.com/2011/03/elysian-brewing-sub-pop-records-team-up-on-loser-pale-ale-again/

Story in our local paper today says they're keeping it as it is.

[denny]

Here we go again....

Cue Elysian haters in 4...3...2...

I'm not an Elysian hater or a hater of anyone who makes a business decision that he feels is best for him or his company, but Elysian now drops to the bottom of my list of breweries to buy from.

Personally, I'm looking forward to wider distribution so I can buy their products more often.

[denny]

Interesting because money is in the brewpubs and not in production facilities. Just my opinion.

Maybe not if you have distribution through AB's network, though.  I think that the brewery is making at least as much money as the brewpubs.