Getting in Shape for Takeover

Reading tea leaves in a cup.

Without insider intelligence it’s impossible to say with any certainty whether a brewery is about to be taken over by a larger national or multi-national but we reckon there are a few things to look out for.

First comes a shift from purism to pragmatism. Smallness, independence and provenance, once both sacred values and selling points, get dropped.

There might be surprising partnerships with ‘evil’ companies; there may be contracts to supply supermarkets; or plans to have beer produced under contract, with more or less transparency.

This kind of thing usually comes with a rush of blurb explaining how, actually, this way is even crafter because it widens access to the product, challenges the status quo, and so on, and so forth. But what it also happens to do is send a signal like animal hormones in mating season: we’ve grown up now; we understand how it works in the real world; we’re people you can do business with.

The tying off of loose ends is another thing to watch out for, e.g. the sudden settling of legal disputes, which few potential buyers will want to acquire as part of any bundle. Camden settled their dispute with Redwell over the trademark for Hells, for example, at around the time of its takeover by AB-InBev. (We understand that reporting of this news came much later than the settlement itself, though it’s possible we’ve got the wrong end of the stick.)

Along the same lines, one might read something into the winding up of fun but marginal parts of the business.

The emergence of a dominant beer in the portfolio might be the biggest red flag of all. (Or green, depending on your point of view.) Big multinational firms are drawn to lagers, pale ales, wheat beers and increasingly, we’ve observed, session IPAs. These are products with mainstream appeal, that people can and will drink for an entire session or buy by the six-pack, and which fill a gap in their portfolios of Craft Brands. If they’re already in supermarkets and chain pubs (see above) all the better.

All of this is a roundabout way of saying that, thinking back on the trajectories of Meantime, Sharp’s, Camden and others, we’d put money on Beavertown being bought up before too long.

Of course Beavertown says this:

Twitter conversation: a takeover is not going to happen, says Beavertown.

But that doesn’t change our gut instincts. After all, the one indicator of an impending takeover you can guarantee you’ll never get is any explicit announcement of intent before a deal has been finalised.

News, Nuggets & Longreads 23 April 2016 — Takeovers, Spruce, Helles

Here’s what’s grabbed our attention in beer news and writing in the last week, from spruce beer to brewery takeovers, via brewery takeovers and, er, more brewery takeovers…

→ Let’s get AB-InBev’s acquisition spree out of the way first: Italian website Cronache di Birra broke the news yesterday that the global giant as acquired Birra del Borgo. Here’s the most incisive commentary so far:

→ Related: remember when we pondered what it must feel like to sell your brewery? Well, we’ve now been treated to two substantial pieces in which the founders of breweries absorbed by AB-InBev reflect on the experience. First, Jasper Cuppaidge of Camden Town was interviewed by Susannah Butter for the Evening Standard, perhaps expressing more insecurity than he intended or realised:

“Everyone has their opinions. We’re more craft than ever because that gives us the ability to brew more beer ourselves. The beer tastes as good as last week, if not better. Some people want to remain independent but it’s like, Mike there wears Converse, I like Vans. Everyone has their cool thing.”

Continue reading “News, Nuggets & Longreads 23 April 2016 — Takeovers, Spruce, Helles”

Bar well and truly raised

Ten years ago, with the range of beers they offer today, the Red Lion in Leytonstone or the Bull in Highgate would have been among the best pubs in London. Now, while certainly way better than run-of-the-mill, they merely count as friendly neighbourhood craft beer bars.

That’s right: every neighbourhood in London now seems to have a craft beer bar and many (like the Bull) are also brewing. Everywhere you look, there are enamel signs advertising Orval and glowing neon Brooklyn Brewery logos. These days, you’re never more than a bus ride from a pint of Dark Star or a Camden Helles.

These kinds of places seem (thank God) to be replacing the kind of ‘style bars’ or ersatz ‘gastropubs’ which were everywhere until recently and which had snobbery without the saving grace of exciting beer. They were the kinds of places where you would be charged a fiver for a pint of stale Erdinger wheat beer or four quid for a pint of UK-brewed San Miguel; now, for that money, you get beers that are (arguably) worth the asking price.

There’s more detail on each of these pubs to follow in subsequent posts. Suffice to say we liked them all the more for their localness: drinking in them didn’t feel like a trip to Beerworld, Britain’s newest theme park.