Monthly Archives: January 2016

What happens when the immovable object meets the irresistible force?  It is the age-old question and may never be totally solved.  However we get to witness just such a battle going on for the taste buds and wallets of the alcoholic beverage market.

The immovable object is the huge corporate behemoths trying to shape the way we enjoy our beverages.  The irresistible force is the ever-present need for human beings to innovate and keep pressing for new horizons.

The needs of Wall Street and financial markets around the world constantly need huge growth and Corporate M&A to feed the beast.  Huge mergers are happening around the world whether in pharmaceuticals, energy, commodities or even in the beverage business.  In the past few years we have seen American icons like Budweiser, Jim Beam, Robert Mondavi, and more swallowed up by the whims and desires of huge multi-national companies.

Remember when we thought Anheuser Busch and Budweiser was the biggest beer company in the world?  We were amazed at the reach and fortunes of the August Busch family.  But when Belgian beverage giant InBev swallowed the All-American icon we realized just how big the world is. Mighty Budweiser was merely a regional brand that was one piece in the worldwide puzzle being created by corporate titans.

Now a mere 6 years since Bud was eaten up by a foreign company, the beer business was rocked when word of the impending merger between SAB Miller and AB-InBev was announced recently.  Many people thought how is this possible?  How big can a company get?  How will it affect us beer drinkers?  Won’t they have a monopoly on the market?  Where is the American fairness?  Where are the trustbusters of lore?  We have to remember that the USA is only a small part of the global market.  Local number one sellers like Bud Light, Miller Lite and Coors light pale in sales comparisons to brands like Snow (China), Brahma(Brazil) and Heineken.   There are no competitive issues on a worldwide basis.

This is the immovable object.  Corporate America will always push to grow, strive to dominate and struggle to appease Wall Street.  This is not a good thing for us beer lovers.  As the Corporate giants consolidate their holdings, they will invariably push for cost savings and efficiencies. It will become only about rising profits and the love of the business will disappear.  Soon all the beer will taste alike if the corporate behemoths get their way.  It has happened already as former imported brands like Becks, St Pauli Girl, Fosters, etc. have been homogenized and brewed locally here in North America for purely economic reasons.  The Beer is not the same, the taste is different and they are merely marketing vessels used to take up shelf space for the same beer and flavors.  This isn’t good and it won’t get better.

Luckily the irresistible force wont be denied!  Human nature is to explore, create and innovate.  There are thousands of new breweries and distilleries opening on a daily basis.  These entrepreneurs brave the odds and have given us hope for new flavors and local tastes.  Here in Minnesota alone the last few years have seen dozens of new breweries, wineries and distilleries open up.  These companies like Fulton’s Brewery, Salem Glen Winery, and Panther distilling embrace the localvore movement.  They use local ingredients, hire local people and bring a level of authenticity that the huge international companies cannot hope to match.

The big companies are constantly trying to limit distribution options, they try to use their corporate muscle and money to buy shelf space, overwhelm our senses with over the top marketing and bully smaller companies out of business.  Anheuser Busch is well known for giving huge incentives for local wholesalers to carry only their brands and ignore local options.  This is one way for them to defeat the local business.  Not illegal—but definitely not putting the interests of consumers first.  A lack of choice is never good for us!  Giants like Anheuser Busch and Miller Coors don’t care about local economics—it is only about feeding the corporate beast.

As venerable family scions reach retirement age, the lure of quick cash is often too much.  Look at venerable brands and family icons like Ravenswood, Mondavi, Goose Island, Red Hook, and more.  All these former family business have been taken over and changed not for the better by heartless corporate machines.

I am not an expert on economics or even on liquor, beer, or wine.  I love new tastes and am enamored by the constant innovation of local entrepreneurs.   As consumers we need to embrace local business and support our small business.  Homogenization is never a good idea.  Find the small family business that cares about what they do, lives the business and strives to bring new and great things to market against overwhelming odds!  Know what you drink, don’t be swayed by advertising and marketing.  Drink Local and discover true innovation and great flavors!!

This is the best of times and worst of times.  The struggle between huge multi-national and small entrepreneurs has never been fiercer.  Discover everything the world has to offer!  Cheers and always enjoy in moderation!