Membership questions? Log in issues? Email info@brewersassociation.org

Author Topic: Did NB sell out?  (Read 12938 times)

Offline FlipMasterFlash

  • 1st Kit
  • *
  • Posts: 19
Re: Did NB sell out?
« Reply #15 on: October 14, 2016, 07:20:13 am »
A monopoly and good prices never go together.
Until AB picks up a bunch of homebrew supply places I don't think you could call it a monopoly.  :o  Currently still plenty of choices on where to spend your homebrew dollar.  Guess I just don't care that much about the news until they are doing things that are anti-competitive and looking at the complaints so far pricing competitors out of the market isn't a tactic they have pursued so far.  NB is a business and if they want cash out on what they built or need access to more capital to grow that is up to them.

Just my opinion but if NB was able to slash prices to well below what competitors are charging most homebrewers would buy there en mass. 

Offline hopfenundmalz

  • Global Moderator
  • I must live here
  • *****
  • Posts: 10689
  • Milford, MI
Re: Did NB sell out?
« Reply #16 on: October 14, 2016, 07:21:13 am »
I feel the same, Jesse. I buy elsewhere anyway normally, but I won't buy from them again. Secondly, I just don't get it. Strange buyout to me, especially with homebrewing supposedly leveling off.
Other than it being beer related, I don't see the logic. If there is a long term plan, we will have to see it unfold.
Jeff Rankert
AHA Lifetime Member
BJCP National
Ann Arbor Brewers Guild
Home-brewing, not just a hobby, it is a lifestyle!

Offline Stevie

  • Official Poobah of No Life. (I Got Ban Hammered by Drew)
  • *********
  • Posts: 6858
Re: Did NB sell out?
« Reply #17 on: October 14, 2016, 07:45:26 am »
A monopoly and good prices never go together.
Until AB picks up a bunch of homebrew supply places I don't think you could call it a monopoly.  :o  Currently still plenty of choices on where to spend your homebrew dollar.  Guess I just don't care that much about the news until they are doing things that are anti-competitive and looking at the complaints so far pricing competitors out of the market isn't a tactic they have pursued so far.  NB is a business and if they want cash out on what they built or need access to more capital to grow that is up to them.

Just my opinion but if NB was able to slash prices to well below what competitors are charging most homebrewers would buy there en mass.
Basically how I feel. Maybe I'd be upset if I ordered from the frequently, but I have a ver "y'all need to calm down" attitude right now.

Offline Phil_M

  • Senior Brewmaster
  • ******
  • Posts: 1760
  • Southern Maryland
Re: Did NB sell out?
« Reply #18 on: October 14, 2016, 08:24:47 am »
Whelp, that makes the decision between a Blichmann BeerGun and NB's Last Straw a whole lot easier...
Corn is a fine adjunct in beer.

And don't buy stale beer.

Offline reverseapachemaster

  • Official Poobah of No Life. (I Got Ban Hammered by Drew)
  • *********
  • Posts: 3794
    • Brain Sparging on Brewing
Re: Did NB sell out?
« Reply #19 on: October 14, 2016, 09:33:07 am »
If true, I suspect one plan is to use the shops as another marketing arm. Now that they have several craft(y) brands and a large number of import brands they can package clone kits for sale not only in those shops but everywhere ABI products are sold. The kits advertise the beers and homebrewers brewing the beers become marketers for ABI beers. The shops can run homebrewing festivals where they pour ABI products and have competitions for brewing the kits.

The shops are also another data point on popular styles and ingredients. They can see what styles are selling the most in kits and what hops are most popular. They'll even be able to track by geography what's popular. Then they can dictate new products and where to release products based upon that data in combination with other market data.
Heck yeah I blog about homebrewing: Brain Sparging on Brewing

Offline Stevie

  • Official Poobah of No Life. (I Got Ban Hammered by Drew)
  • *********
  • Posts: 6858
Re: Did NB sell out?
« Reply #20 on: October 14, 2016, 09:37:52 am »
If true, I suspect one plan is to use the shops as another marketing arm. Now that they have several craft(y) brands and a large number of import brands they can package clone kits for sale not only in those shops but everywhere ABI products are sold. The kits advertise the beers and homebrewers brewing the beers become marketers for ABI beers. The shops can run homebrewing festivals where they pour ABI products and have competitions for brewing the kits.

The shops are also another data point on popular styles and ingredients. They can see what styles are selling the most in kits and what hops are most popular. They'll even be able to track by geography what's popular. Then they can dictate new products and where to release products based upon that data in combination with other market data.
The clone kits was one thought I had as well. I didn't think about the data they could gather. That's smart.

Offline HoosierBrew

  • I must live here
  • **********
  • Posts: 13031
  • Indianapolis,IN
Re: Did NB sell out?
« Reply #21 on: October 14, 2016, 09:44:21 am »
If true, I suspect one plan is to use the shops as another marketing arm. Now that they have several craft(y) brands and a large number of import brands they can package clone kits for sale not only in those shops but everywhere ABI products are sold. The kits advertise the beers and homebrewers brewing the beers become marketers for ABI beers. The shops can run homebrewing festivals where they pour ABI products and have competitions for brewing the kits.

The shops are also another data point on popular styles and ingredients. They can see what styles are selling the most in kits and what hops are most popular. They'll even be able to track by geography what's popular. Then they can dictate new products and where to release products based upon that data in combination with other market data.


That makes sense - I didn't think deviously enough. 
Jon H.

Offline Philbrew

  • Brewmaster
  • *****
  • Posts: 867
Re: Did NB sell out?
« Reply #22 on: October 14, 2016, 10:20:57 am »
I feel the same, Jesse. I buy elsewhere anyway normally, but I won't buy from them again. Secondly, I just don't get it. Strange buyout to me, especially with homebrewing supposedly leveling off.
Maybe their crystal ball says the leveling off is only temporary.  They may see a big market expansion coming from "homebrew machines".  Pico, Grainfather, Whirlpool, etc. and others in the works that they have inside info on.  These things could be the "in" Christmas gift for dad in 2017-2018.
Many of us would be on a strict liquid diet if it weren't for pretzels.

Offline FlipMasterFlash

  • 1st Kit
  • *
  • Posts: 19
Re: Did NB sell out?
« Reply #23 on: October 14, 2016, 12:13:32 pm »
Hard to say exactly what their super long term plans are but I'd hazard a guess AB is sitting on a pile of cash, pretty clear investments in more domestic beer isn't going to go anywhere so they funded a venture capital arm to look for investments that will get them some return.  For what ever reason they think an investment in a place like NB can yield some return.  I most certainly love the homebrewing community but we're drop in the bucket of the overall beer drinking pie.  Even if AB could somehow convert all of us homebrewers into AB drinkers it wouldn't make it into the significant digits of their financial statement.

I'm just going to continue on my merry way brewing beers I like and trying to get better at doing so.

narvin

  • Guest
Re: Did NB sell out?
« Reply #24 on: October 14, 2016, 12:39:32 pm »
Maybe they're going to shut them down, forcing future aspiring homebrewers to drink craft-y beer instead.

The first step to control is limiting education.

Offline ynotbrusum

  • Official Poobah of No Life. (I Got Ban Hammered by Drew)
  • *********
  • Posts: 4896
Re: Did NB sell out?
« Reply #25 on: October 14, 2016, 02:25:29 pm »
My fear is that they try to corner the market on certain ingredients (think Hunt brothers in the silver market) and run the small LHBS's out of business.  That didn't work yet on the craft beer market, but they still haven't finished acquiring either....
Hodge Garage Brewing: "Brew with a glad heart!"

Offline denny

  • Administrator
  • Retired with too much time on my hands
  • *****
  • Posts: 27165
  • Noti OR [1991.4, 287.6deg] AR
    • Dennybrew
Re: Did NB sell out?
« Reply #26 on: October 14, 2016, 03:01:12 pm »
My fear is that they try to corner the market on certain ingredients (think Hunt brothers in the silver market) and run the small LHBS's out of business.  That didn't work yet on the craft beer market, but they still haven't finished acquiring either....

What ingredients could they corner the market on?
Life begins at 60.....1.060, that is!

www.dennybrew.com

The best, sharpest, funniest, weirdest and most knowledgable minds in home brewing contribute on the AHA forum. - Alewyfe

"The whole problem with the world is that fools and fanatics are always so certain of themselves, and wiser people so full of doubts." - Bertrand Russell

Offline ynotbrusum

  • Official Poobah of No Life. (I Got Ban Hammered by Drew)
  • *********
  • Posts: 4896
Re: Did NB sell out?
« Reply #27 on: October 14, 2016, 03:21:56 pm »
Yeast - perhaps - or at least its distribution to homebrewers.

Hops - enough to create a shortage or price increase for certain types.

With the right regulations... who knows what limitations could arise.

Maybe I am "tilting at windmills", but I am just skeptical enough to think that when In-Bev enters a market, it wants to exert a measure of control over it to the detriment of its competition.  That means the market suffers - especially if it is a market that is subject to heavy regulation (alcohol).  How far the wake casts its ripple, I can't say, but this acquisition is closer to my concerns than the craft beers it bought.
Hodge Garage Brewing: "Brew with a glad heart!"

Offline denny

  • Administrator
  • Retired with too much time on my hands
  • *****
  • Posts: 27165
  • Noti OR [1991.4, 287.6deg] AR
    • Dennybrew
Re: Did NB sell out?
« Reply #28 on: October 14, 2016, 03:23:19 pm »
Yeast - perhaps - or at least its distribution to homebrewers.

Hops - enough to create a shortage or price increase for certain types.

With the right regulations... who knows what limitations could arise.

Maybe I am "tilting at windmills", but I am just skeptical enough to think that when In-Bev enters a market, it wants to exert a measure of control over it to the detriment of its competition.  That means the market suffers - especially if it is a market that is subject to heavy regulation (alcohol).  How far the wake casts its ripple, I can't say, but this acquisition is closer to my concerns than the craft beers it bought.

No offense, but why would any yeast company settle for only a single retailer?  I think you are way off base in your understanding of how things work.  Or maybe I am.
Life begins at 60.....1.060, that is!

www.dennybrew.com

The best, sharpest, funniest, weirdest and most knowledgable minds in home brewing contribute on the AHA forum. - Alewyfe

"The whole problem with the world is that fools and fanatics are always so certain of themselves, and wiser people so full of doubts." - Bertrand Russell

Offline Stevie

  • Official Poobah of No Life. (I Got Ban Hammered by Drew)
  • *********
  • Posts: 6858
Re: Did NB sell out?
« Reply #29 on: October 14, 2016, 03:25:01 pm »
NB is a retailer, not a supplier. They could use buying power to slash prices, under cut the comp and then raise their prices, but that's a long con to say the least.