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Craft beer buyouts: It’s the quality of the brew that ultimately counts

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By Rachel Arthur+

04-Nov-2015
Last updated on 04-Nov-2015 at 15:33 GMT2015-11-04T15:33:29Z

Craft beer: What are consumers looking for?
Craft beer: What are consumers looking for?

When large multinational brewers buy small independent craft brewers, it often prompts an outcry among beer fans. But do consumers really care who owns their favourite beer brands?

The reality is that most consumers – save for a few dedicated drinkers – don't know or care who produces craft brands, according to a Mintel analyst.  

Far more importantly, consumers are looking for the quality of the brew.

However, identifying the strengths and weaknesses of both parties is crucial for the success of the craft beer brand after a takeover.

‘They want quality beer’

Craft beers are often built on their local, authentic credentials. A takeover from a multinational brewer can, therefore, prompt a highly critical backlash. But this comes from a small vocal group, Jonny Forsyth, global drinks analyst, Mintel, told BeverageDaily.

“The hard core craft beer drinker is bothered. But they’re a small proportion. There really aren’t many people like that. The majority of people don’t know, the person on the street doesn’t know. What our research shows is that the majority of people don’t care.

“People want the major brewers to produce more craft beer, and they want the quality beer. It doesn’t have to be about being small; it’s about good quality beer.”

Craft beer acquisitions from the largest multinational brewers have gathered plenty of attention. AB InBev bought Chicago craft beer Goose Island in 2011;  followed by subsequent craft additions to its portfolio such as Los Angeles’ Golden Road Brewing in September .   

SABMiller entered the craft beer scene with the acquisition of London-based Meantime Brewing Company in May this year; while Heineken purchased of a 50% stake in Lagunitas Brewing Co in September.  

So how should a big brewer approach a craft brand it has recently added to its portfolio?

“The most important thing is to let the craft beer carry on being entrepreneurial,” said Forsyth. “It’s the whole entrepreneurialism that leads to the experimentation. I think you can help with marketing, but be top lead by them as well.

“The more commercial side is where [the buyer] really needs to come in. How to scale-up, sell lots of beer all over the world. Craft brewers know a lot about beer, the local consumer, but not so much about the world consumer. They don’t know so much about long term growth or distribution.”

2 comments (Comments are now closed)

But does it still matter?

Consumer opinions obviously matter. People want great beer, but is understanding how beer choices came to be being lost in giving so much credence to polling? I'm not an economist, but I think I know enough to understand that scaling up production may have an impact on the quality of the beer that many brand fans have come to love. Ingredients are scarce and production for mass consumption has more specific requirements for meeting consistency standards, both of which are factors that could change the makeup of the original beer.

Here's a thread on BA with many thoughts on the topic http://www.beeradvocate.com/community/threads/quality-vs-quantity.284608/

And here's a poll taken right after the Lagunitas selloff, where Forsyth's assertion is supported www.wearebrewstuds.com/uncategorized/polls/craft-beer-poll-lagunitas-gets-more-than-a-little-sumpin-from-heineken-how-will-drinkers-react/

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Posted by Bryan
06 November 2015 | 19h332015-11-06T19:33:40Z

Citation needed

This is great, and I certainly agree, but do we get to find out what the research actually was instead of just having it mentioned in the quote?

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Posted by Bryan
05 November 2015 | 20h552015-11-05T20:55:12Z

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