Pick Six for Tilray

The purge continues!  Not to say that I told you so but any brewery selling to SABInBev had to know that it was not a marriage of love but rather financial convenience.  And when the money flow trickled, well as ‘N Sync would say, “Bye, bye bye”.

And now Tilray Brands and their CBD, THC, Kush, weed money has peeled off six breweries and one cidery from SABInBev. Shock Top, Breckenridge, Blue Point (the first purchased brewery if I am not too mistaken), 10 Barrel, Redhook, Widmer and Square Mile Cider.  

They will join the power conference of SweetWater, Montauk, Green Flash, Alpine and the new Good Supply Lager which I did not even know existed.

Before rejoices are sung. I do not know if this is a good change or not. These breweries all have different strengths and weaknesses and need investment and most importantly patience. I am cautiously pessimistic because one company can’t have all the tools to help this disparate group.

But at least they are out from the thumb of Bud.

Maybe Tilray can buy the four remaining Pac- 12 schools next

TTB v AB

When people ask me why I am not fond of SABInBev, I do mention that the beer is the equivalent of tacos to Taco Bell but that primarily they seem to enjoy being the bully.

Sometimes bullies get popped on the nose though. Case in point the $5 million compromise fine levied by the TTB.

The payment is for alleged violations of the Federal Alcohol Administration (FAA) Act occurred way back in time between July 1, 2016, and December 31, 2018. Most involving stadium and arena concessions which they sure aren’t making 5 million on right now.

Shitty little actions such as giving sponsorships but only if they can be the sole vendor, providing equipment in exchange for sales, paying for new draft systems, giving product for less than market value, hiding behind a third party to do the same.

Now, this fine is not much to SABInBev. But they do need to be reminded, like bullies everywhere, that they have to toe a least “a line”.

The Firkin for July 2018


There had been a consolidation lull. That was broken in June/July with Beavertown Brewing landing with Heineken and Three Weavers joining the CANarchy Collective. Those moves didn’t rankle me much but it did get me to thinking about the Grand Acquisitionor (is that a word?) and how they could revitalize their “high end – domestic” or whatever it is being named or how it is being organized this week.

Here are two roads for them to take that could gain them points:
1. No explicit or implicit quotas for distributors
This move would go a long way toward some amity with the #independent squad as long as it is true and transparent. Plus it would give opportunity for a distributor to grow their bottom line with a higher margin, niche product without having to always be looking behind them at angry Belgian/Brazilian Dad. Personally, I think it would grow the overall beer market too if a variety of beers were finding their way to shelves where more customers could see them.

2. Rebrand the not-so Golden Road and more than 10 Barrel(s) outposts as AB Beer Gardens
I would go so far as to use them for R&D and as the outward face of the company. Send your best brewers to Denver, San Diego, Oakland and Sacramento and have them spread their wings. Again, be transparent. Instead of hiding behind a former craft brand, create a St. Louis style beer garden. Go full accordion music on it. Have Missouri style BBQ. You are not a local brand. Golden Road is not Sacramento, heck, it ain’t even in the L.A. consideration so ditch it. Denver doesn’t need 10 Barrel but it sure would hit Miller to have your beer in their backyard.

Just a couple friendly suggestions for the overlords at SABInBev HQ. I accept Venmo or a simple check in payment if used.

Hoarders

Whether you believe that South African hops are important or not will color your response to the “re-allocation” of hops from the non-traditional hop growing region.

In their SAB addition, ABInBev picked up an R&D hop operation and due to low yields (which also happened to Nelson Sauvin in New Zealand), they have made the decision to keep the hops in house for their South African brewery brand, Castle with the rest going to their “high end”.

Could the hops be better used if spread out to craft breweries? The answer is an obvious yes. Are they hops owned by SABInBev to parcel out as they wish? Again, very much yes. One more, just one more question. Are the optics really bad? Ummm, yeah.

The PR people at SABInBev must be on a year long sabbatical. Why they did not postpone the Wicked Weed sale until after the Funkatorium fest is beyond me. The “high end” and their new “partners” in crime seem bewildered each and every time that someone responds negatively.

Then to follow that up by not proactively spreading the news about the hop supply seems slow on the uptake as well. For a company that is mostly distribution focused with marketing not far behind, you would think they would master the press and social media.

We in the U.S. will lose a few special beers but we are not short of IPA’s, so maybe this is a long term good thing for style diversity. Not to mention, every time SABInBev goes full on Darth Sidious it riles the base of craft beer to action. Sometimes that is good energy to have.