Category Archives: internet

The Goose Island Sale: Another Reason to Go Local

Like many others, I was none too pleased to hear of Anheuser-Busch/InBev’s purchase of Goose Island. However, I was less concerned with Goose Island’s motivations than I was with AB/InBev’s. As far as Goose Island goes, Greg and John Hall were understandably weary from running the day-to-day operations of a business for as long as they had. They wanted the company to grow and needed an infusion of capital. No problems there.

However, knowing what I know of AB/InBev’s sales strategies, I will likely stop buying what little Goose Island product I already did. My previous purchases consisted entirely of Bourbon County Stout, Sofie, Pere Jacques and Juliet so I won’t put much of a dent in the bottom line, but I will miss those products. What are the motivations behind my new shopping strategy? Well, as far as I can tell, AB/InBev bought Goose Island for two reasons. Firstly, Goose Island is an attractive, profitable commodity with lots of room for growth. It’s a great addition to AB/InBev’s portfolio. Secondly, AB/InBev seems to be trying to shore up its slipping market share by snatching up one of the companies that put a decent-sized dent into that market share in the Midwest.

In other words, if I buy a Goose Island product now, the profits go into AB/InBev’s coffers (to at least some degree). I cannot abide such an outcome. Go to the supermarket beer section and you’ll find out why. See that giant wall of Bud Light products? How many different formats do you count? Ten? Twelve? Fifteen? The “wall of product” sales strategy is despicable. Glass bottles, aluminum bottles, aluminum cans, all of various sizes, all in boxes and packs of different quantity, all limiting consumer choice (taking shelf space from competitors) by flooding the market with a load of different formats that all contain THE SAME PRODUCT! It makes me a little sick to my stomach.

But I’m not all that worried that I won’t buy Goose Island products anymore. Surely some in the Midwest, for whom Goose Island is a regular purchase, will experience greater difficulty. In my case though, I will simply continue to focus on the plethora of world-class, local products readily available for my consumption. I need only look a couple hours to South to San Diego to find Port Brewing/The Lost Abbey, Stone, Ballast Point, AleSmith, etc, etc, ad infinitum. One can likely make the same argument in the Midwest. There is no shortage of non-AB/InBev-owned breweries in the middle of the country turning out well-made, readily available craft beer.

My point, then, is simple. In the short term, the sale of Goose Island is really much ado about nothing. As long as those who care about where their money goes keep themselves educated, they can make informed purchases. If you don’t care about AB/InBev’s sales strategies, then you needn’t change a thing. If you do care about those sales strategies, and they make you a little queasy, then don’t buy beer from companies in which AB/InBev holds a stake.

In the long term, I suppose we’ll see whether AB/InBev tries to use Goose Island as a means to muscle smaller beer producers out of the market. If they do, I am confident that there will be a strong consumer pushback. There are few, if any, consumer bases that are better or more informed than the craft beer-drinking public. And their ranks are growing every day. People care more than ever about where their purchases are coming from and where their money is going because it’s easier to find out than ever before. The internet, and the ready availability of relatively reliable information is the great equalizer for smaller companies whose focus is quality and integrity. Let’s hope those companies continue to leverage the internet and social media to get their message out and keep the public well (and accurately) informed.

Photo Credit: AB/InBev Goose Mock-Up: Girl’s Guide to Beer

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Yours Truly on New Brew Thursday at Library Alehouse! (Video)

Check out the video, where we drink Kern River Brewing Citra DIPA and pair it with some wonderful Alehouse food. I think it’s pretty rad. Be sure to click the links on the right to New Brew Thursday and Library Alehouse.

More Information. Smarter Consumers. Better Beer.

In this article, Budweiser is quoted as attempting to re-attract the under-30 crowd through the offer of free beer. They even have a catchy slogan: “Grab some Buds.” Perhaps this is meant to evoke a feeling of camaraderie in the consumer. It seems Bud wishes to create some sort of Pavlovian response which tells the drinker that it must be a good time with friends if one is drinking a Bud.

Foolish attempts at image marketing are something I’ve recently discussed at great length with close friends. Granted, these friends share a great number of my opinions, but they’re also very smart and are also members of the under-30 set (for the most part). We’ve come to an interesting consensus.

Those of us in the target age range have basically had the internet at our fingertips for our entire adult lives. Over that time, we have learned to use the internet as an informational resource. Further, we have learned to avoid the pitfalls of sourcing one’s information from the web. As a result of the availability of at least quasi-accurate information, our bullshit meters have gotten a lot more sensitive.

We look for products that appeal to us due to their quality and value, not due to the image their marketing projects. It is this writer’s opinion that this phenomenon stems largely from the fact that looking for such products is far easier than it used to be. I loathe the term “crowd-sourcing”, but it has allowed younger and older folk alike to find the opinions of like-minded people and base their purchasing decisions on those same opinions.

The availability of information also democratizes the marketplace to a higher degree. People need no longer be satisfied with the products thrust in front of them by ad men who work for the highest bidder. Easy information means it’s easy to find alternatives to mass-produced, mass-marketed, low-quality goods.

And so it is with beer. There are few industries that have used the internet more effectively to raise awareness than the craft beer industry. Just look at the Monster Energy fight with Rock Art Brewery a little while back. The beer geeks of the world rose up against a large corporation and beat them back with an e-stick. People are increasingly aware that there is something better than [insert industrial macro-lager here] because it is easier to tell them so and it is easier for them to find out.

Since more people know that there are vastly more flavorful and higher-value alternatives to products like Bud, Bud’s advertising has become increasingly more offensive to the intelligence of the under-30 consumer-with-disposable-income that they’re going after. When people are buying for taste and value, image matters less and less. While the ads are very clever and even enjoyable at times, they have become less effective at driving sales. Yet Budweiser continues to sell an image, rather than a product. And Budweiser market share continues to ebb, because people want to buy something from a producer that cares about what they make.

Nowhere is the difference more palpable than in beer. When one sips an artfully crafted beer such as Victory’s Prima Pils next to something like MGD, there is no contest. The former is clean, spicy, crackery and delightfully bitter. The latter tastes like carbonated urine (or at least what I imagine that would taste like). This comparison is precisely why I think Bud’s free beer “strategy” will ultimately fail.

Offering a free taste of something fundamentally untasty seems like a poor business decision to me. Just because you hand me stale bread for free doesn’t mean I’ll suddenly become hooked on it. I assume that is why Bud needed a snappy title such as “Grab some Buds” in order to sell the “event.” More and more people are finding out that, in terms of advertising and product quality, Bud and its ilk are the McDonald’s of beer. You drink it when you don’t care about flavor or quality. So here’s to Bud’s ad strategy continuing to fall flat on its face. Further, here’s to the internet providing easy self-education and thereby spreading greater consumer intelligence, higher-value products and allowing people to avoid a massive…