Can Big Beer Break Into Craft Brew?

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There’s a test case for this notion in ABI’s purchase of the popular Chicago-based Goose Island Brewery. When the deal was announced in 2011, it was met with backlash from beer critics, ranging from the sadly resigned to the vitriolic. Other Chicagoland craft breweries responded by affirming their dedication to independence, and some Goose Island employees, including Goose Island brewmaster Greg Hall, son of founder John Hall, took the opportunity to leave the company.

Two years later, founder John Hall has left and been replaced as president and CEO of Goose Island by Andrew Goeler, a 33-year veteran of Anheuser-Busch who has overseen the Budweiser and Bud Lite brands, with no experience in craft brewing. Distribution of Goose Island has soared nationwide as production of some of Goose Island’s most popular brews have been outsourced to industrial Anheuser-Busch breweries in Fort Collins, Colo., Baldwinsville, N.Y., and Portsmouth, N.H. Conference calls between production facilities focus on getting the flavor of the beers brewed outside Chicago to more closely resemble that of the original. Only time will tell whether craft drinkers will eventually be turned off by inconsistency in flavor, lower-quality ingredient substitutions, or simply the brand association with a major brewer, but the big guys don’t yet have the credibility with craft brewers and drinkers to avoid disappointment when they acquire a well-loved craft brewery. But if you’re looking for a company with brewing experience, a solid cash position, and a reputation that makes acquisitions in the craft space easy, I would look instead to Boston Beer, the craft brewer behind Sam Adams, a legendary brand that helped make the craft beer revolution possible.

The article Can Big Beer Break Into Craft Brew? originally appeared on Fool.com and is written by Daniel Ferry.

Fool contributor Daniel Ferry has no position in any stocks mentioned. The Motley Fool recommends Boston Beer and Molson Coors Brewing and owns shares of Boston Beer.

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