AB-InBev: If you can’t beat them, buy them
Chicago’s Goose Island brewery was only the first. In its effort to expand its range of craft beer (or “crafty”) offerings, AB-InBev has agreed to buy the Blue Point Brewing Company, famous for its Toasted Lager brand. The deal was announced on 5 February 2014.
The value of the transaction between Blue Point and AB-InBev was not disclosed, but we at BRAUWELT International estimate it would have been around USD 30 million.
When AB-InBev in 2011 bought the similarly sized Goose Island brewery they paid USD 38.8 million.
Blue Point Brewing, based in Patchogue, N.Y., since its founding 15 years ago, will continue to operate there, according to the announcement. The deal will give it capital to expand its operational ability and “enhance the consumer experience,” the announcement said.
As could be expected, it sparked some controversy among U.S. craft beer consumers. On the website “gothamist.com” you can find the usual resigned “Well, there’s another beer I can add to my list of ‘do not drink’. A shame, too” and the more outraged “F*** F*** F***. How many beers will InBev destroy? You murdered Beck’s, you ass*****! imported from the NJ Turnpike!”
But on the whole, it seems that the deal caused less of a scandal than the one between AB-InBev and Goose Island. Although the wagging finger moralists could be heard loudest, many craft beer lovers on the blogosphere appear to have come to terms with the fact that craft beer is a business and not, as they would like it to be, a labour of love. Besides, it takes two to tango. It takes one willing to buy and another one willing to sell.
Blue Point’s founders, Mark Burford and Peter Cotter, have not given any reasons yet as to why they have sold their company. Most likely, they lacked the funds to expand their business.
Blue Point Brewing ranks 36th largest craft beer brewer in the U.S. and sold about 70,000 hl last year, with half of the volume attributable to its flagship Toasted Lager beer. Its brands also include Hoptical Illusion, Sour Cherry Imperial Stout, Blueberry Ale, Toxic Sludge (a dark, hoppy ale) and various seasonal beers.
