Quote:
Originally Posted by Flabbibulin
For sure I would be willing to have an industry insider convince me otherwise and that these big companies are in fact beer lovers first and foremost, going around tasting at local breweries. I would speculate that the more likely scenario is that Labatt could just as easily have made this purchase without tasting a single Banded Peak beer, consulting a single online review, or having any interest in how good the beer is regarded by beer drinkers. All about numbers and the marketability of the beer. When you look at the micro breweries that are purchased, it is often not the breweries that are regarded by beer fans as the best. I am fan of Banded Peak and their beer, but perhaps the last local brewery purchase is good testament to this (fighting words perhaps).
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So for Labatt and Molson they're looking for three key things.
One: A following. They're not going to buy something that is poorly thought of or not well followed. What's the point? They don't need additional production space. They're looking for a product that offers them an ability to take back some of the market share they're losing as local breweries become a much bigger chunk of the pie in each region.
Two: A national presence. One of the reasons they purchased Mill Street is that it's already distributed across the country. There is little to no leg work on Labatt's part, they just make the switch over to the BDL/Beer Store delivery service and off they go.
Three: A good product. It's anecdotal ofcourse, but I've sat with merchandisers, reps, managers, VPs from Molson and Labatt and talked shop. They know the local market well. They have too. They know what's good and they know what's working. Do I think the CEO tried Banded Peak? No. But I guarantee you that local Labatt's employees know it, tried it and got consulted and said it was a good get. I am sure Labatt asked for the best, but if the best isn't willing to sell then you take what you can.
They found a brewery that was liked, and willing to sell.