Stout Sells Out: How Big Beer ‘Goosed’ Sales

The Wall Street Journal: “The popular image of the brewing industry is of a war between Craft and Big Beer. It’s small, independently owned breweries facing off against multi-billion-dollar corporations hawking bland-tasting beer with outsize control over the global market. These terms are useful for drawing battle lines in the beer world, but as Josh Noel explains in ‘Barrel-Aged Stout and Selling Out,’ the reality is slightly more complicated … Mr. Noel’s book recounts the rise of Chicago-based Goose Island Brewery, a vanguard name in craft brewing that was purchased in 2011 by Anheuser-Busch InBev, the biggest and baddest beer maker on the planet.”

Goose Island was founded in 1988 by John Hall, a box-company executive with a taste for European beers … Big Beer could not afford to ignore upstarts like Goose. Anheuser responded to the craft-beer boom by developing its own artisanal styles and buying stakes in a number of small breweries. But the threat to Big Beer seemingly abated when craft’s swift advance suddenly skidded to a halt … That downturn was one factor that led it to agree, in 2006, to the sale of a large minority stake—to a brewing company partially owned by Anheuser.”

“Goose sales spiked 60% within a year. In 2004 Goose had produced 50,000 barrels of beer; in 2011 that number had tripled. But its success became its own obstacle: Goose couldn’t brew enough beer to meet insatiable demand. So it ‘sold out’—agreeing in March 2011 to a 100% sale to Anheuser for $38.8 million … There’s a contradiction at play in the relationship between craft beer and big business. On the one hand, as Mr. Noel spells out, craft won the war by forcing the world’s largest brewer to change. On the other, it lost by being commandeered by that very same company.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Your Thoughts?

This site uses Akismet to reduce spam. Learn how your comment data is processed.