Whales Eating Fish: Duvel Buys Boulevard

Jason Behler
On October 23, 2013

Earlier this week it was announced that Belgian-based craft brewery Duvel would combine their American operations with Kansas City-based Boulevard Brewing.

A) Can this be compared at all the the AB-InBev purchase of Goose Island

B) Do you like this move, hate it, or are you ambivalent towards it?

C) Are these brewery unions positive for craft beer?

Marie – I am going to just say what we’re all thinking: No buy out! Sure Goose Island still tastes great but how do I know it’s special if I don’t have to travel far distances and scour the earth to find it? Is that elitist and total hipster mentality? Sure. But this is beer we’re talking about, so I’m okay with it and I will wear my Obscurist Badge with pride. But in all seriousness. scaling up may make it more accessible and perhaps even more affordable, but it will take away the special-ness of it. Plus, corporate culture is bound to have somewhat of a negative effect on the overall brand ethos.

Justin – In my opinion, these 2 situations aren’t comparable at all. The InBev take-over of Goose Island is a move of corporate greed. A huge conglomerate moving into another market that they want to dominate because their original product is tanking. Duvel purchasing Boulevard was a move of combined interest. From what I heard, the owners of Boulevard are in their sixties & wanting to retire, but they didn’t want the business to end or fall into the hands of another corporate giant. Duvel has been looking to expand its place in the American craft beer market.

Nate – I’m all for it. The point of business is to make an awesome product, get it to as many people as possible, and make a metric shit-ton of money. Right? If I could go to my local eatery, watch a Broncos game, and drink a pint of Gumballhead or Pliny the Elder or Wisconsin Belgian Red, I’d be in heaven! How can we not love that as avid beer drinkers? As long as the quality does not slip, why should I care? If the not-so-microbrew can continue to churn out solid product with its new found fame and glory, huzzah! More great beer for the masses.

Phil – I have high hopes for the new Duvel ownership. They own Ommegang, who continues to operate independently and make great beers. As Justin suggested, Duvel has interest in US market and it may even provide the opportunity for Duvel to brew some of Boulevard’s American styles across the pond for markets that are becoming increasingly interested in American and hop-forward styles. As with anything, time will tell.

Katherine – Here’s my question. Do we have previous large + small, small + small brewery acquisition/mergers that have data associated? Things like distribution, brand perception, quality, taste etc. We could be very objective and make a prediction model based on previous data. I worry about any boutique brand damaging its image by appearing to “corporatize”. Just my nerdy two cents.

Drew Davis – I’m probably going to catch some grief for this, but I wasn’t against the ABInbev purchase of Goose Island as long as the brewery retains is autonomy and the suits don’t water down the inovation and ingenuity there. If they can utilize the increased capital to just do more of what they do well and make it more widely available, I’m all for it. But that’s a big IF. By the way, Goose Island’s most widely available beer, 312, is miserable, but some of their more creative beers are phenomenal.

A) I think there are some parallels to the ABInbev-Goose Island takeover to the Duvel-Boulevard acquisition, but more contrasts than comparisons. Mainly because Duvel is much smaller and more nimble than AB. It’s a family operated brewery that’s located in the best brewing country in the world. Not up for debate. Belgium wins. I think any cooperation and collaboartion between a true Belgian Brewery (Inbev is Belgian only by location of it’s home office. What they’ve become is anything but a true Belgian brewery) and an American Craft Brewery can be an absolutely synergistic relationship. It will depend on the execution though. Using the Ommegang takeover as an example, it appears that Duvel knows how to allow the smaller brewery to continue to operate as they had previously.

B) Like the Duvel-Boulevard combo, for the aforementioned reasons. As long as Boulevard maintains autononomy, this is good.

C) Yes, this can be a union that is good for craft beer as long as collaboration takes place, not full-on takeover of operations.

Erin – I agree with Drew – as long as the Goose Island beers maintain their integrity, I have no problem with it. This kind of merger is inevitable and this one will not be the last we see in craft beer; this is merely the beginning.

Acquisitions of small operations by larger companies as an industry grows is a natural progression. Many Bourbon distilleries that were once family operations are now owned by conglomerates like Sazerac and Kirin. However, the integrity of their core product and identity has been largely unchanged. Though I like to see independent craft brewers thrive and exude so much creativity, we just have to hope that we will always have good produced and available, regardless of how large the parent organizations become. If the emphasis does not stray from quality, I hold no opposition to any more of these alliances and merges. It’s just the way things will eventually go.

Cory – A) I believe that this move was very different than the move we saw over at Goose Island. This partnership is only going to help Duvel’s portfolio and will greatly improve Boulevard’s ability to reach more folks.

B) I am super stoked about this move. Love Duvel, love what they’ve done with Ommegang, love Boulevard, and believe that the symbiosis and suds pouring from this partnership will continue to be ‘craft’ worthy.

C) These brewery unions are really the two sides of the same coin. Yes, we know that it means that Boulevard can now open that footprint up. But isn’t what makes Boulevard and it’s limited release artisinal ales so coveted the fact that Love Child CAN be difficult to track down. If it becomes more readily available, will we will still look forward to when it comes out or will it fill up shelve space for other exciting newer breweries? Only time can tell. (*Disclaimer: I love ‘Love Child’ and would most definitely not-mind seeing more of it).

Chase – Like most of you, I’d agree that as long as they continue to make great beer and have some form of corporate social responsibility, I really don’t care who the parent company is. Another thing I was thinking about – it seems we agree that the major benefits of a buy-out include increased capital meaning an ability to increase production, expand to new markets, possible access to new resources, etc. Would you rather have your favorite larger microbrewery (i.e. New Belgium, Sierra Nevada, Dogfish Head, etc.) go public as Boston Beer and Redhook did in the mid-90s to raise capital or be bought out by one of the giants? I don’t think there’s been a microbrew IPO since the two I mentioned (and I’m not exactly sure the reason for that other than the overall economic recession), so not much empirical data to go on, but what do you all think?

Phil – Chase, I think you’re an accountant. I think you pose a great question though… why not open it up to public shareholders? My only concern would be that most shareholders in publicly traded companies only care about the bottom line; dividends or growth. Boston beer makes money predominantly one one beer and the only beer I know from Redhook is their ESB, so maybe a similar situation. One thing that I love about craft is the diversity of beers

available, especially by great breweries like Boulevard. I would hate to see them reduce production of smaller-run beers in favor of their unfiltered wheat beer because its expandable to the most markets.

Jason – If the beer maintains its original integrity then I have no problem with it. I usually prefer the little guy because he is in it for love. However, more money for brewers with integrity means more good beer. NO?