Beavertown sells to Heineken

[marshbrewer]

You guys know that Brewdog sold 22% of itself to a private equity company, yes? Probably explains their silence.

 

[Beersort]

You guys know that Brewdog sold 22% of itself to a private equity company, yes? Probably explains their silence.

Very well known. Without trying to justify anything they didn't sell to a company who wants to destroy independent breweries like beavertown did.

James watt has been on his personal Twitter talking about it actually

 

[Sadfield]

The long term issue is then those specialist shops disappear and the supermarkets can put the squeeze on the breweries to make the beer cheaper and quality and variety go out the window.

Typical British insular way of looking at it. It's quite possible the increased production will be pushed out to global markets. Even if sales stay in the UK, it doesn't necessarily mean the same outlets, they could push out to untapped markets, offering craft beer to restaurant chains, hotel, leisure outlets that ordinarily take Heinekens standard offering.

 

[MickDundee]

Very well known. Without trying to justify anything they didn't sell to a company who wants to destroy independent breweries like beavertown did.

I might be naive but i don’t think that’s Heineken’s plan. Of the big breweries, they seem to be the ones embracing the smaller breweries (albeit as a way to make more money). Beerwulf is owned by Heineken for example.

 

[Pope]

You guys know that Brewdog sold 22% of itself to a private equity company, yes? Probably explains their silence.

They haven't been silent.

 

[prog99]

They own Caledonian brewery here in Edinburgh too (when they bought S & N or whatever they called themselves a few years ago)

 

[-Bezza-]

It would seem there is a huge amount of misconception about what private equity or investment by a big company means or why a small business might go down this route.

 

[Llamaman]

It seems strange that people would refuse to purchase a decent product because the manufacturers have sold a minority stake to another, bigger brewer... but have no qualms about a similar brewer obtaining finance from a bank or private equity firm who destroy whole economies.
Perhaps Beavertown should put some pseudo-anarchist claptrap on their labels to keep people happy.

 

[-Bezza-]

private equity firm who destroy whole economies.

It would seem there is a huge amount of misconception about what private equity or investment by a big company means or why a small business might go down this route.

 

[Clint]

Don't mind some of Caledonia breweries beers..Deuchars IPA isn't bad as was their version of devils backbone..Marston's also done DBB but I thought the Caledonia was better.
Carlsberg Tetley did however buy Wrexham lager brewery...and shut it...

 

[Llamaman]

Banks - 2008
PE - Austin Reed, BHS, Phones4U, Maplin, Toys R Us, etc
Legion d' dishonour: RBS for managing to make both lists - simultaneously helping to crash the world economy AND asset-stripping its clients. Bravo, boys.

(Allegedly.)

 

[-Bezza-]

Banks - 2008
PE - Austin Reed, BHS, Phones4U, Maplin, Toys R Us, etc
Legion d' dishonour: RBS for managing to make both lists - simultaneously helping to crash the world economy AND asset-stripping its clients. Bravo, boys.

(Allegedly.)

Bank I agree with to an extent. I still think they became the scapegoats of 2008 as it was easy for the public to blame them. They were partly to blame but you could similarly point your finger at regulators, people who took out mortgages they couldn't afford etc etc. I am absolutely not going to defend RBS - that business is an absolute shambles and if it wasn't for Lehman's collapsing, the government bailing EVERYONE out because they couldn't risk another bank going under and now being so under the water they might as well let the business run on for a bit, they would have gone a long time ago.

The PE ones are a bit unjust though and, again, likely to be the case that it's easy to point blame to PE because Joe Public doesn't get what they do. I don't know enough about the history of these businesses to comment for sure but would be interesting to know whether PE got involved because they thought they would be able to turn around an already-failing business. The ones you cite are all retail, which is a dodgy sector to be in at the moment. That aside, there will be so many more examples of businesses that are PE-backed and their success is attributable to the funding and guidance PE firms provided to support an owners good ideas. Wagamama, Hilton Hotels, Hozelock, Samsonite, Dell, Deliveroo, Airbnb, RAC, AA. Again, the mess with BHS is indefensible.

Back to Beavertown, I agree with your point you are making. Here's the conversation that didn't happen:

Heineken: I'll give you £40m which you can use to expand the business and create 150 new jobs.
Beavertown: Nah, I'll pass on that. We'll get trolled on the internet by selling out.
Heineken: We'll not interfere too much. You'll still have control. We just want a fair return on the investment.
Beavertown: Still no. You know what the internet is like these days.
Heineken: Are you sure?
Beavertown: Yeah. I'm not in this to earn a crust. I want everyone to get a warm, snuggly feeling when they drink their beer, knowing they're supporting a small, independent brewer who is just trying to make his way in life.
Heineken: Erm, hang on...
Beavertown: [Cutting Heineken off] Don't mention my father.

 

[Tom Parsons]

Beavertown beer has been sold in Waitrose for a couple of months now. I really appreciate being able to buy decent beers in the supermarkets these days.

I am very happy to drink beer produced by any sized brewery as long as it tastes good.

 

[alsch890]

Probably going to get ripped into for this but it happens to be true so... As msot of you probably know the UK is not the only country where Heineken has targetd smaller breweries. There are a bunch over here in Prague that are now owned by Heineken. I reacted in much the same way as most posters here but I must admit, its true to say, that one of the brands has improved exponentially since the takeover. Krusovice used to be one of the worst crappy pilsners here, you'd actively avoid a Krusovice pub (most Czech pubs not free houses so you get beers from one brewery only - usually their 10 degree and 12 degree pilsner (beer here measured by plato not abv) and maybe a dark lager (or in the case of Pilsner Urquell brands from their group so Urquell, Gambrinus and Kozel for instance). Anyway, I digress. One of the breweries that came under heineken was Krusovice and nowadays I thoroughly enjoy it, especially their 11 degree unfiltered. Some pubs have "tank" 10 degree as well which is great. So putting the ideological perspective aside and focussing bleary eyed on the beer, not always a bad thing.

Difference being I suppose that the improvement is much along the lines of consistency and perhaps ensuring pubs don't screw it up. I guess they don't have as much experience in the "craft beer" market.

 

[Clint]

Fair comment!

 

[Slid]

The long term issue is then those specialist shops disappear and the supermarkets can put the squeeze on the breweries to make the beer cheaper and quality and variety go out the window.

I think that is reason for making our own beer, mate.

If you remember Austin, he once wrote something rather profound. It went something like the following:

"American beer is unique, in the sense that it is crap. If we want anything worth drinking, we have to make it ourselves."

Good guy, I always thought, was Austin.

 

[Leon103]

I see the argument for the 'it will effect the bottle shops'. If they go into the bigger supermarkets then they will be expected to sell for a lot less and therefore recipes will be changed.

But I have seen that bottle shops don't help themselves. I have a small bottlesbop/ bar near work. Does a great range at decent beers. Went to another bottle shop today, much bigger range but some of the prices were £2-3 more a bottle

 

[krispn]

The vacuum which will be left by Beavertown from fellow ‘craft’ breweries boycotting them, punters disowning them and independent retailers banishing them will be quickly filled by other young, independent and ambitious brewers who will eventually have ideas of expansions and growth which will require investment by private equity or some big brand beer conglomerate. Inevitably the current darlings of 2017/2018 will be the Brewdogs and Beavertowns of 2020.

Why get so worked up? It’s beer! If the quality is unaffected and it still tastes good then enjoy it. If the quality suffers go buy a Deya, NMBCo Cloudwater or support the next wave of brewers. Use the energy on something positive and let the likes of Logan Plant and his wife decide what’s good for them and their business and their family.

 

[Druncan]

Did whey back not Hynyican give us the yeast we all now brew with? from their research labs?,,,,
So, FYI, Is it not still their football pitch you are playing on? go with it and take the shot,,
(from someone far more removed than most from the FB insanity that is the mainland)
And now I have wild yeast in my beers is it bad or better?
Want another beer? Wanna buy me oot?

 

[foxbat]

Me:

Tries to make sense of Druncan's post
Notes time of post.
Uh huh........