Elysian's Buyout

So, some big news: Anheuser-Busch Inbev announced earlier this week that they've acquired Seattle-based Elysian Brewing. There aren't a whole lot of details available at the moment, but my reaction is much the same as when 10 Barrel sold to them last fall. 

I'm aware that AB has in the past used its clout and size to lobby for legislation that would benefit it to the detriment of smaller breweries. But this largely hasn't worked - and the craft market's grown faster, if anything. The execs at AB aren't fools - their light lagers are stagnant or losing sales every year. Small wonder, then, that they've been buying out breweries at an increasing rate, in order to make up for the slowdown elsewhere.

It's becoming clear that AB is targeting a very specific type of brewery: mid-sized, regional, critically acclaimed, and quickly expanding. With the craft segment of the beer marketplace still growing at an astonishing rate, Goose Island, 10 Barrel, and Elysian are very safe investments for a massive conglomerate like AB looking to get a piece of that growth. 

I have no doubt that AB has the people, resources, and money to launch their own full-craft brands. It would take time, effort, and might backfire if the ownership ended up mattering to enough people. Far easier, then, to buy outright some great breweries that already have established brands with hugely devoted fans.

From Elysian's end, this sale makes perfect sense. The owners were likely offered a great deal, allowing them to expand not only production volume, but also to distribute outside the Pacific NW (and rightly so - Elysian makes some really good beer, and it deserves to have as wide an audience as possible). It's looking like all the same brewers and other employees will be allowed to stay on, as was also the case with 10 Barrel's buyout.

As I said when 10 Barrel was bought last year, what really matters to me is the quality of the product. Who owns it isn't ultimately nearly as important.