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Author Topic: Did NB sell out?  (Read 12937 times)

Offline guido

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Re: Did NB sell out?
« Reply #30 on: October 14, 2016, 04:21:50 pm »
Really curious how this will affect NB's presence at next years conference.
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Offline Stevie

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Re: Did NB sell out?
« Reply #31 on: October 14, 2016, 04:37:14 pm »
Really curious how this will affect NB's presence at next years conference.
Interesting thought. I imagine no change, but who knows.

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Re: Did NB sell out?
« Reply #32 on: October 14, 2016, 04:45:46 pm »
I don't think they have any short term plan.  I don't expect to see many changes.  But they've already kind of become the "big company".  I see a lot of unnecessary branding and some knock offs of existing products that compete directly with their suppliers.

Offline tommymorris

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Did NB sell out?
« Reply #33 on: October 15, 2016, 05:47:21 am »
Here is a blogpost from NB discussing being acquired by ZX (Anheuser-Busch InBev).

http://www.northernbrewer.com/learn/farleys-feature-brewing-exciting-future/

Offline ynotbrusum

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Re: Did NB sell out?
« Reply #34 on: October 15, 2016, 06:00:44 am »
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.

 See your point, Denny, but think a bit larger - what if it bought the yeast companies....again, this is probably not ever going to happen.  I'm just a tad concerned about the market in a global sense - any centralization means control that is best left to market forces, rather than individual company manipulation.
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Offline BrewingRover

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Re: Did NB sell out?
« Reply #35 on: October 15, 2016, 06:57:02 am »
Northern Brewer has been owned by a private equity fund since 2013. I don't know the structure of the company now, but I imagine Chris Farley didn't have final say on this sale.

It's such a fine line between stupid and clever.

Offline Stevie

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Did NB sell out?
« Reply #36 on: October 15, 2016, 07:38:15 am »
Cool to get it straight from the source. I don't care that it wasn't heard from them first, publicly traded companies have a responsibility to be quiet about this stuff. I'm sure they were under a heavy NDA.

Offline Brew Cat

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Re: Did NB sell out?
« Reply #37 on: October 15, 2016, 07:49:34 am »
I'm lucky enough to have two locally owned places near me that I buy most of my stuff. NB never has the best prices online for those that need to mail order. I've always had good luck at AIH
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Offline ynotbrusum

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Re: Did NB sell out?
« Reply #38 on: October 15, 2016, 07:51:26 am »
Cool to get it straight from the source. I don't care that it wasn't heard from them first, publicly traded companies have a responsibility to be quiet about this stuff. I'm sure they were under a heavy NDA.

You can be sure that Chris Farley's statement was thoroughly vetted.

I hope for the best and will remain open minded, but then again, I buy locally whenever possible.
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Offline hopfenundmalz

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Re: Did NB sell out?
« Reply #39 on: October 15, 2016, 08:12:24 am »
Cool to get it straight from the source. I don't care that it wasn't heard from them first, publicly traded companies have a responsibility to be quiet about this stuff. I'm sure they were under a heavy NDA.

You can be sure that Chris Farley's statement was thoroughly vetted.

I hope for the best and will remain open minded, but then again, I buy locally whenever possible.
I thought the statement read similar to what the breweries bought by ABInbev released.

As for ABInbev buying suppliers and cornering the market? Well they already buy malt, as they only make some that they use in house, why buy maltsters now? Hops, they have the Elk Mountain farm in Idaho, but they buy a lot of hops. Yeast, there have been new companies popping up everywhere, they might buy one of the big suppliers, but there might be backlash from breweries that use those suppliers.

There has to be a strategy here, but it is not apparent to me.
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Offline denny

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Re: Did NB sell out?
« Reply #40 on: October 15, 2016, 10:16:33 am »
Really curious how this will affect NB's presence at next years conference.

Believe me, there's a BIG discussion about that!
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Offline denny

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Re: Did NB sell out?
« Reply #41 on: October 15, 2016, 10:17:18 am »
See your point, Denny, but think a bit larger - what if it bought the yeast companies....again, this is probably not ever going to happen.  I'm just a tad concerned about the market in a global sense - any centralization means control that is best left to market forces, rather than individual company manipulation.

And what if pigs could fly....;)
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Offline denny

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Re: Did NB sell out?
« Reply #42 on: October 15, 2016, 10:18:44 am »
There has to be a strategy here, but it is not apparent to me.

Exactly where I'm at.  AB doesn't do things without a reason, but I can't fathom the reason here.
Life begins at 60.....1.060, that is!

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Offline ynotbrusum

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Re: Did NB sell out?
« Reply #43 on: October 15, 2016, 12:08:44 pm »
See your point, Denny, but think a bit larger - what if it bought the yeast companies....again, this is probably not ever going to happen.  I'm just a tad concerned about the market in a global sense - any centralization means control that is best left to market forces, rather than individual company manipulation.

And what if pigs could fly....;)

InBev would buy them, too.  Admittedly, the antitrust laws would kick in at some point to prevent monopolization.  I do fear for the LHBS's, though.  They could be hurt further by an even larger marketing presence that NB will undoubtedly now exert.  But that's progress, I guess.....
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Offline tommymorris

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Re: Did NB sell out?
« Reply #44 on: October 15, 2016, 12:54:21 pm »
I think the strategy may be more benign. ZX is a venture capital fund. They need to invest and make a return to impress the InBev bosses.

In the NB case, this could be as simple as an investment that the fund manager thinks will make a good return overtime. One possible strategy could be to combine NB with other businesses (more HBS or distribution businesses maybe) to make a larger venture worth more together than in pieces.  My guess is such a conglomerate would be of no real interest to InBev except as an investment they can sell for a nice return.

This could be more of a sign that the HBS market is now large enough for institutional investors to want a stake.