GOOSE ISLAND IS COOKED BY ANHEUSER BUSCH

Well, it happened. Some of the people living in and around Chicago would have  told you that it was only a matter of time until Goose Island allowed itself to be bought out, but now Anheuser Busch has gone and done it, for around $38 million dollars. Not too shabby for the shareholders.

Thus ends the long stretch of independence for Chicago’s oldest “microbrewery.” Founded in 1988 by CEO and owner John Hall, the two Goose Island brewpubs have been Chicago staples for a long, long time as far as craft beer is concerned. Personally, I’ve never been to one, as the Goose always came off to me as the big boy in town, and not a place one actually had to visit. Still, this is a sign of the times.

Might as well itemize the changes that people should expect:

  • Greg Hall, John’s son, will be stepping down as brewmaster. Why? I have no clue. Head Brewer Brett Porter takes over. By the way–if I ran a brewery, the person with the job title of “brewmaster” would do whatever duties the “head brewer” does, and we would have fewer grand pooh-bah titles.
  • Not much else will change. John Hall stays on as CEO, the brewpubs remain open, and AB sinks in a million bucks or so to expand production at one.

That’s about all you really need to know as far as “what is happening?” What’s important at this time, and will be increasingly important going forward, is to realize the impact of this move on the craft beer community, and what a true “craft beer fan” ought to do about it.

Ask yourself–if you’re a craft beer fan and don’t drink AB products, what is your reason for not doing so? Is it only because they produce products that taste like piss? If that’s the case, then this move really doesn’t mean that much to you. Now AB will likely be producing products that don’t taste like piss, under the Goose Island name.

But if your beef with AB goes deeper–if you abhor their business practices and ideology, and view them as the Evil Empire that so many of us do, well then, this is a blow if you also like Goose Island products. Because if you feel that AB is the enemy, you can’t rationally keep purchasing Goose Island beers. Realize what this buyout means–as majority shareholders, that means Anheuser Busch “owns” Goose Island–they will be the ones profiting from future success, not the people who built Goose Island into what it is today. You know, the people who gave up on their business to take the buyout. They allowed AB to go from only partial to majority ownership, effectively taking the future of the brewery out of their hands. Currently, AB has no announced plans for sweeping changes, but they now have to power to do just that on a whim.

I personally can’t see myself buying more Goose Island, knowing that AB will be pulling the strings. And that’s okay, really, because I never drank that much of it anyway. There are so many other breweries in Chicago now that are pushing the envelope in the same way that Goose Island did 10 years ago. I just ran a two-part series a few weeks ago extolling the virtues of breweries like Half Acre, Metropolitan, Piece, Revolution Brewing, Haymarket Brewing, Finch’s Beer Company, and Pipeworks Brewing. Those breweries are ALL LOCATED WITHIN CHICAGO. So please understand that this decision will not impact your ability, dear readers, to get great beer within the city limits if you stop purchasing Goose Island.

Goose Island's drinkability is on the rise.

So yes. Realize that this means you’ll soon be seeing Goose Island commercials during the Super Bowl, and realize that suddenly Goose Island will be showing up on draft in formerly craft beer-less bars throughout Chicagoland. Honker’s Ale will be rebranded as the Windy City’s most drinkable brew. Oh it’s real. It’s DAMN real.

The buyout is indicative of something I’ve noticed in these regional brewers that have long-passed the “microbrewer” level–they never, ever seem to want to stop expanding. These companies are never happy to plateau and then have to find a way to continue expanding on their own, through the strength of their product. Instead, brewers like Goose Island or Kona in Hawaii decide they MUST keep growing and seek strategic partnerships with even bigger players to keep the bubble expanding.

I ask you–would it be so awful to not keep growing and expanding into other markets? Perhaps this is the most naieve business question ever posed, but is there a point at which expansion is no longer worth it, if it means partnering with Beezlebub to install a new production facility? Honestly.

Something that craft beer geeks and Goose Island defenders will surely point out about the move is that new brewmaster Brett Porter does have an awfully good pedigree–he was head brewer at Deschutes from 2005-2010 and was directly responsible for a lot of their great brews. Forgive me, though, if that doesn’t get me excited. Anheuser Busch has always hired technically skilled brewers–that doesn’t mean they get to work on producing great beers. It’s often been said that the best technical brewers in the game are those working on Bud, Miller and Coors, as those beers have a very small margin of error in production–do something wrong, and they might actually have a perceivable flavor. More than anything, I think the correct emotion you should feel for Porter is sad. He’s taking over a large craft brewer, will probably be held back by his owner, and will have even his good efforts shunned by people who hate his corporate masters. That’s a lose-lose situation. Good luck, dude.

So here we are. I can’t claim to feel actually “upset” about this news; “disappointed” is much more accurate. All you Aleheads out there–this is your time to get the word out, so please let everyone know about the changing of the guard in Goose Island’s ownership. The last thing we would want is people still buying the beer, thinking it was produced by owners with souls. As Brother Barley pointed out so many times during the recent Northern Brewer debacle, there are around 1,700 breweries in America, now, and there are so many independent ones. We are blessed to be living in a time where it’s completely unnecessary to have to support a company like Goose Island in order to have access to world-class brews.

UPDATE: In a Chicago Tribune online poll, 86% of responders say the deal is “bad news”  for Chicago beer drinkers, 10% say it “won’t make a difference,” and a measly 4% think it’s “good news.”

UPDATE: Take a look at this letter to Goose Island fans from John Hall. I just don’t understand how he could stand there and say that this deal “will provide us with the best resources available to continue along our path of growth and innovation” with that shit-eating grin on his face. That is what complete and utter contempt for your key demographic looks like, people. He stands there and is practically PRAISING Anheuser Busch, the company he started his own beer company to combat, the company he’s gone toe-to-toe with in the Chicago market for years, the company that finally got so tired of trying to destroy him that it figured owning him would be easier. And not only is he here to tell you that he’s happy about it–he wants YOU to be happy about it too!

“Remember that enemy I’ve been fighting for most of the past two decades? Well we’re friends now! Come embrace him! He’s your new stepfather! I’m sure you’ll grow to like him just as much as you once liked me.”

UPDATE: Metropolitan Brewing posted on its Facebook wall that it will “always be independent, family-owned and operated.” Atta’ boys. Meanwhile, Pipeworks Brewing called the news “shocking.” At the same time, the vitriol on Goose Island’s page is shockingly intense. It’s at least 10 to 1, angry people vs. supporters. It’s going to be very interesting to see how this PR situation plays out. A Facebook group has also been started for people angry about the fallout.

UPDATE: There’s an interview with Greg Hall that just went up on Time Out Chicago (which is one of my favorite magazines and web sites, by the way), where he explains what he can about the decision. He also touches very briefly on his own departure, and the fact that he’ll be staying around in an “advisor”-type role for now, “a minimum of three or four days a month.” Is he aware that most months have 28 days or more? Anyway, he essentially says that at age 45 he figures he’s “already done the beer stuff” (his words), and plans to do other stuff. You know, with his new big pile of money.

About these ads

20 comments

  1. Greg is John’s son, not his brother.

    EDIT: Fixed, thanks.

  2. inBev bought Anheuser-Busch for about $52 billion. Pretty rough when they can buy one of the bigger players in the craft beer industry for less than 0.1 percent of that ($39 million total). With that kind of mismatch, the only way to make sure your favorite brewery doesn’t get gobbled up by the big boys is to brew it yourself. FIDY!

  3. I think it’s important to note that even before the full buy out of today, AB was a minority owner… so actually, you’ve been serving the man this whole time.

    You know I support micro, but I still think that to stop supporting them just because of the acquisition is short sided. If, for example, AB investing all GI profits back into GI, would it make a difference to you? I think that there needs to be less gut reactions to this story, and more people waiting to make judgments until the dust has fallen and we see what AB is planning to do. Right now, it just sounds like you’re yelling “Sellout!” at the band who finally got a record contract, making assertions not knowing if they will happen.

  4. Paige: You’re correct, except in this case “the band” (Goose Island) signed a record contract with “the label” (Anheuser Busch) that had been trying to dominate the entire industry and destroy the underground “music scene” (craft beer) for as long as it has existed.

    But other than that, correct.

  5. Kid Carboy Jr. made me realize that Goose Island is the Black Eyed Peas of microbreweries. Yes, Fergie is AB.

  6. +1 Kid…..I will pass on all Goose Island beers from here on out, in my opinion AB is winning if you continue to support GI.

  7. Dr. Neato: On one hand, I’m kind of curious what your metaphor means. But on the other hand, I’m glad to not know enough about the Black Eyed Peas to undersand.

  8. Ok. Stop supporting Goose Island. Oh, but wait, you wanted JOBS in Chicago, right? You want a vibrant economy in Chicago, right?

    Well, stop supporting Goose Island and suddenly you’re helping put 100+ qualified employees out of work. Qualified employees who will strive to produce a top notch product and don’t compromise on quality. The shortsightedness and disregard for the reality of the situation just boggles my mind. It’s natural to be a bit disappointed at the events of today, but the fact is that this could be a small boon for the city, especially if the new infusion of capital allows for financing and a new brewery in the city.

    As consumers, we have the power to either put the Goose Island brand out of business–and its employees out on the street–or you can continue on as normal or even buy less Goose because, frankly, there are a lot of great beer options in Chicago. The point of this deal from the GI perspective is to be able to make their beer available in greater quantities in more markets. If the beer quality–irrespective of ownership–stays the same or even gets better, then should the hardworking brewers making the beer find themselves jobless because misinformed consumers think the product has diminished or been watered down? Quality is quality. Support it. If Goose Island starts to suck, then by all means stop buying it because the brewers and management would no longer be doing their jobs to the high standard they have set. But if the beer stays the same or improves and you punish them for it, then you’re just as evil as you claim AB to be.

  9. Garden: I suppose we need to support all businesses within Chicago city limits, regardless of what they do or who they’re owned by, on account of their geographic location and the fact that human beings are employed there? Hmmmmm…

    I honestly don’t get it. Craft beer fans who, when they read an editorial like the one above, leap onto their horse to defend an indefensible corporation like Anheuser Busch, of all things. A company that has waged active war against craft beer throughout its entire existence, doing its best to fight “public intoxication” through the ban of any beers of higher alcohol content than the brews it produces itself. A company that then produces inferior fascimiles of better-known craft brews and then acts as if it’s reinvented the wheel–“Hey look! We’ve created ‘American Ale’!”

    What do you get out of defending your own enemy? Don’t mistake it–if it were up to the owners of Anheuser Busch, Goose Island WOULD NOT EXIST, and it would still be 1970, and nearly 100% of the domestic U.S. beer gross would be controlled by three companies. The only reason Anheuser Busch humors the likes of Goose Island is because today it HAS to, because we don’t live in the 1970s anymore, and craft beer is growing every year. That doesn’t mean, as you suggest, that we have to actively support Anheuser Busch co-opting our own beloved niche and trying to turn it into its own product.

    But no, Garden. I’m sure you’re right. After all, Anheuser has such a good track record of producing great craft beers from companies it owns. I mean, that’s what you think of when you think of “Anheuser Busch,” right? Great craft beer? …right?

  10. [...] Carboy eloquently and concisely summed up the story for us yesterday. He’s a Chicago-area guy so the news has more of a direct impact on him. Hell, I [...]

  11. Ok, the black eyed peas of beer really made me laugh.

    I was happy to see that the brewpubs are remaining independent. I thought Greg Hall did a really nice job in the interview yesterday.

  12. I’ve heard this argument from a few people now. If the quality of the beer remains the same, it would be foolish not to support the brewery. That argument is based on the idea that the product is all that matters, not the ideology or mission of the company producing it. But craft beer enthusiasts ROUNDLY reject this hypothesis. The brewers and breweries that make our favorite beers are as important to us as the suds they sling. That’s why we’re perturbed when our craft brew heroes engage in shady legal shenanigans or act like tools on reality television shows. Goose Island has turned their back on the craft beer movement by selling to Anheuser Busch. They’re welcome to cash in, of course, but we certainly don’t have to support their decision.

    If you buy Goose Island products now, the profit goes to InBev’s coffers. You’d be supporting a corporation who would like nothing more than to see the craft beer movement snuffed out. The quality of Goose’s products are immaterial. Your hard-earned dollars would be going to a company that is actively trying to destroy something you love by propping up a former craft brewery as a puppet.

    As for the “putting Chicagoans out of jobs” hypothesis, that’s bullshit. If you want to support the local economy, support locally-owned breweries like Piece, Metropolitan, Half-Acre and Revolution. If you give your patronage to those breweries and help them grow, the benefits to the Chicago economy will be ten times what it would be if you keep buying Goose Island products. In fact, by supporting Goose Island, you’re actively opposing the other Chicago craft breweries since AB is NOTORIOUS for pushing other companies’ beers off of package store shelves and local taps. It might “look” better to see more Goose Island beers on the shelves, but not at the expense of the other breweries in the local market. And those “out-of-work” Goose Island staffers? If you keep supporting the other local breweries and allow them to grow, there will be more than enough new brewery jobs for those former Goose Island employees to snag.

  13. I’m not a big fan of AB-InBev; they’re notorious for killing off beer they don’t personally produce, and that has garnered a lot of animosity towards them over here in the Rocky Mountains. As it stands now, they only offer us three of GI beers- Sophie, Matilda, & Pere Jacques, and if we’re lucky *snort* Bourbon County Stout, which I have yet to find actually available. You’d think that we’d get more GI beers now that they’re owned by AB, but I highly doubt that happens. I’m still pissed that the only Widmer they offer is the Hefe-Weizen, and they killed the Red Hook. I get asked all the time for other Widmer & Red Hook beers, and it shames me to have to tell my customers that AB won’t make them available. For the love of beer! AB just ain’t got it.

  14. [...] inevitable…after AB InBev announced their “stunning” (ie: completely predictable) purchase of Goose Island, another brewery has decided to counter InBev by making their own blockbuster deal. Only this time, [...]

  15. [...] a recent Podcast, Slouch and I talked for a bit about Redhook. The formerly decent brewery went the Goose Island route a number of years ago and sold a chunk of their company to Anheuser-Busch. Since then, their [...]

  16. [...] Barley, Slouch Sixpack and Herr Hordeum posted an All Beers Considered finally putting to bed the Goose Island buyout by Anheuser Busch, the Goose explodes into the news again. Except this time, it’s in a much weirder [...]

  17. [...] few months back, Kid Carboy told our readers about the sale of Chicago’s own Goose Island brewery to Anheuser-Busch InBev, perennial punching-bag of Aleheads [...]

  18. [...] what happened when InBev bought a piece of Goose Island and then eventually…inevitably…snapped up the entire company. Now, when you buy a Terrapin product, you’re supporting MillerCoors. When you buy a [...]

  19. [...] things about Goose Island Beer and the awards they’ve won over the years, (and a couple of not-so-flattering articles about their acquisition by big beer). I’ve also been a long time fan of Tom Waits, and his soulful version of Waltzing Matilda, [...]

Follow

Get every new post delivered to your Inbox.

Join 3,841 other followers

%d bloggers like this: