Discussion:
Midwest and Northern acquired by InBev
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Joerg
2016-10-20 23:35:26 UTC
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Folks,

In the longterm this may not bode well for us:

http://www.homebrewtalk.com/anheuser-busch-inbev-acquires-northern-brewer-midwest-supplies.html
--
Regards, Joerg

http://www.analogconsultants.com/
Tom Biasi
2016-10-20 23:55:13 UTC
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Post by Joerg
Folks,
http://www.homebrewtalk.com/anheuser-busch-inbev-acquires-northern-brewer-midwest-supplies.html
Maybe grain and hop prices will go down. Who knows.
baloonon
2016-10-21 00:18:59 UTC
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Post by Tom Biasi
Post by Joerg
Folks,
http://www.homebrewtalk.com/anheuser-busch-inbev-acquires-northern-
brewer-midwest-supplies.html
Post by Tom Biasi
Maybe grain and hop prices will go down. Who knows.
I think in the short term, it won't make much difference. In the longer
run, it's harder to predict.

I think one big risk when big companies take over much smaller ones
which aren't part of the core business is the institution of corporate
edicts which don't mesh well with the outlying units.

So if an airline takes over a small bus company, you might have rules
about training imposed on the bus drivers which only make sense for
pilots, and the bus managers are so far down the totem pole that they
can't get anyone at the corporate HQ to listen why it's a mistake.

You run the risk that someday some marketing VP at the brewing business
sees a chance to get the homebrewing business to push Limearita beer and
starts throwing his weight around to make it happen.

Another risk is that one CFO backs a big expansion plan for the
homebrewing supply side, but one year into the plan a new CFO takes
over, and suddenly everything is cut because the new CFO is focused on
cutting headcount and makes some arbitrary decisions to eliminate jobs
which aren't immediately associate with a revenue stream.

It's possible none of this happens, of course. Sometimes relatively
small units within a corporation are so out of the mainstream that
nobody at corporate HQ even really notices they're out there, and
autonomy is preserved. And sometimes there's freedom from struggles to
raise capital that make the small unit really thrive. I will say it's
an pretty unexpected move, in my opinion.
Ecnerwal
2016-10-21 16:56:31 UTC
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If I was thinking about starting an online brew supply company, I'd be
cackling in glee. It will probably take some time for it to be screwed
up, but if, as expected (by my gut), it is ultimately screwed up by
corporate buffoons, there's an opportunity for someone to take over the
niche, properly.
--
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baloonon
2016-10-21 17:17:49 UTC
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Post by Ecnerwal
If I was thinking about starting an online brew supply company, I'd be
cackling in glee. It will probably take some time for it to be screwed
up, but if, as expected (by my gut), it is ultimately screwed up by
corporate buffoons, there's an opportunity for someone to take over the
niche, properly.
I was recently reading about the collapse of Kodak, despite having some
incredibly smart, creative people working for them. They had a big head
start on digital imaging, but the leadership of the company was so
committed to film that they couldn't get their heads around becoming a more
diversified company.

It's not inevitable -- Fuji, who was Kodak's main competitor in the film
industry, was able to survive the changes in the industry much better. But
they seemed to approach change from an organic, cohesive process, while
this seems to be billed as a "disruptive" change from people spouting a lot
of buzz words. Maybe they've got the business chops to make this work,
though.

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