Flash Mob at Rec League Hockey Game

For all the heartache we like to give the Galactic Empire that is ABInBev, we have to tip our hat when they do good. We understand that it's a commercial and is as much marketing for Budweiser as anything else but it's a great reminder that sports is not about being in the pro leagues.



h/t theCHIVE

Laying A Big, Fat Egg

We're just over 4 minutes into the second period of the Blackhawks-Red Wings game and for the first time since Chicago drafted Patrick Kane we find ourselves rooting for the Wings. We're Eastern Conference-centric so most nights this game could end in a tie and we could live with it. A fair number of people believe in the prowess of the Western Conference but while they have Hockeytown we have Hockey Heaven (admittedly under construction).

The real reason for our Windy City animosity this evening is the disappointing news that the Goose Island Beer Company (aka Fulton Street Brewery, LLC) is selling out to Anheuser-Busch (aka Anheuser-Bush InBev). In a blog post sent to us by our Midwest Correspondents, CEO John Hall explains that it's primarily about increasing capacity, innovation, protecting the future of Goose Island, yadayadayada. Said Hall, "[t]oday's agreement...will provide us with the best resources available to continue along our path of growth and innovation."

Forgive our skepticism but this smacks of selling out the way your favorite punk band goes pop rock for the coin. The big brewers have been forcing their way into the craft segment for the past few years and it makes good business sense. It's likely hard for AB to be half of a global brewing conglomerate and open a startup craft brewing company both logistically and from a public relations perspective. Besides, you have to do something when sales of your flagship brand have been stagnant for years.

The real reason for skepticism is Mr. Hall's talk of innovation when the agreement includes news that Brewmaster Greg Hall is stepping down. According to Chicago Breaking Business, AB is pumping $1.3 million into increasing capacity but losing your head brewer is no small matter. One also wonders why not go small before going big? The same CBB article notes that Dog Fish Head recently pulled out of four states because they didn't have the brewing capacity.

It could be worse - AB could have hired Gilbert Gottfried as the new voice over for Goose Island commercials. For those keeping score at home, Chicago's leading 201 with 16:30 gone in the second period. We're going to grab a Bell's.

Budweiser is Going Green

We routinely rail on Anheuser-Bush InBev (ABIB) for anything negative that might come out of their shop. Sometimes, you have to recognize that the big boys can go a long way to setting positive precedent in the industry. So, today we give a slight tip of our hat to ABIB for announcing its green initiative.

Sure, many micro brewers went green on day 1 and there are many leaders at the micro level when it comes to environmentally friendly operations. ABIB brings scale to the game. A promise to cut water consumption by 30 percent* means a lot when you have 130,000 employees in 30 countries. ABIB boasts that they will save enough water to fill 25,000 Olympic size swimming pools. The ABIB press release states other goals including achieving a 99 percent recycle/reuse rate and a 10 percent reduction in carbon dioxide output.

Of course, there are two sides to every story so ABIB may still be the Evil Empire. The New York Times reports that the Securities and Exchange Commission (SEC) requires companies to disclose their environmental risks, including water supply issues. "Water conflicts and risks are already coming to a head in expanding beer and beverage markets in the developing world, regions where 1.1 billion people still lack clean drinking water access and the agriculture sector demands its fare share." For example, China and Brazil are two large growth markets for ABIB and the two countries also have water quality and supply issues.





*30 percent reduction of 2007 water consumption levels.

"Pink Slips" - It's A Bit More Upscale

Empire Bleeding Budweiser Red

Apparently evil empires are just as likely to suffer the effects of the current global recession as the rest of us. Yesterday Anheuser-Busch InBev announced that it is slashing corporate bonuses and dividends while rolling out a new marketing blitz for it's leading seller Bud Light. Marketwatch said revenue surged 35 percent mainly due to taking over Anheuser-Busch. When adjusted for volume, revenue increased closer to 5 percent but even this is attributed more to price increases than anything else. The end result is that 4th quarter profits for the behemoth were down 40 percent and Goldman Sachs downgraded ABIB from neutral to sell.

A related story...
In a move to that will surely endear ABIB to the hearts of US beer drinkers, the giant squelched a rumor that the company was considering a move of corporate headquarters. ABIB is opening a New York office and will start reporting financials in US dollars (which led to the rumor).
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“Leuven is and will remain home to our global headquarters, center of strategic decision making and primary office,” wrote A-B InBev spokeswoman Marianne Amssoms in an e-mail to the [St. Louis] Business Journal.
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Thus ensuring most American beer drinkers are not tempted to upgrade ABIB to neutral.

We really hope Steven Spielberg doesn't sue us.

Cheers All Around for Labatt Blue

As part of the big agreement to purchase Anhieser-Busch, InBev was required to sell off some of its other brewing interests. Way back in November 2008, InBev announced that it would sell Labatt USA to make the folks at the Department of Justice happy.

Yesterday came word that the buyer is KPS Capital Partners, a private equity firm out of New York City (what Cerbus Capital is to Chrysler) with the added bonus that the US headquarters will remain in our beloved Buffalo, NY. In what is a rare upstate-downstate partnership KPS reportedly hopes to increase the number of jobs in the company (Editor's note: this is a promise oft made to Buffalo residents. See Adelphia case study).

So, one of our favorite Canadian brews will remain safely in the hands of upstate New York - for the time being.
Cheers!

Cass Ice Light

The storm of the year is hitting here in the nation's capital. In honor of the first measurable snowfall of the winter we bring you this delightful, and somewhat befuddling, Cass Ice Light Commercial.



Seriously, InBev own's Cass too?