Goose Island Sold

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The Goose Isn't Cooked, Yet - More with Greg & John Hall from Goose Island


John and Greg Hall called me yesterday regarding the selling of Goose Island to Anheuser-Busch ( http://beeradvocate.com/forum/read/3645461 ). Both calls were quick and occurred immediately after the news broke. As a result I wasn't fully prepared, but I thought I'd share some of my initial thoughts anyway.

A Solid Business Move

Personally, I'm not surprised by the announcement. As Greg explained, his father John Hall is 68 and the brewery needs to expand. This wasn't an easy decision and apparently options were few; go into debt or look into selling were mentioned. John opted to sell and partner with someone they already had a relationship with (Anheuser-Busch) and in doing so secure their immediate need to expand. Now they'll not only have better access to market, but numerous other resources required for any plans of major growth. From a purely objective point of view, this was a solid business move for them in my opinion.

Restoring Confidence

However reaction from the beer geeks would suggest otherwise, ranging from confusion to outrage. The mob mentality is actually quite absurd, but not at all surprising given the medium (online) and the fact that many beer geeks have been programmed to hate A-B and the like; ourselves included. It's just the latest episode of: "When 'Craft Beer' Zombies Attack!" in which it's easier to yell "Brains!" and rip flesh from bone then think.

That said, the collective message shouldn't be ignored. Goose Island will need to continue to prove itself through its beer in order to restore confidence. If they can't some consumers will simply move on to other options.

Currently Goose Island brews several beers that rank in our Top 100 Beer lists ( http://beeradvocate.com/lists/popular ). I brought this up to John who replied with "proof is in the pudding." He's a straight shooter, so I take that as a genuine challenge to consumers who are being too quick in calling the Goose cooked.

"We're the first."

At this level for sure, and I agree with Greg when he also stated that they'll not be the last. We've been predicting this for years now, and those who can't separate the beer from the business will be in for a very rude awakening over the next 5-10 years as the industry continues to mature and the natural evolution of business comes to play. There will be more more buyouts and mergers. The so-called craft beer industry is not immune. Beer is business.

Freedom to Brew

Thankfully Goose Island will remain a product of Chicago. Our friend Harry Schuhmacher at Beer Business Daily ( http://www.beernet.com ) confirmed that A-B's CEO Dave Peacock stated that they will not brew Goose Island beers in St. Louis. They'll be expanding capacity and brewing in Chicago.

And Greg stated that under the agreement Goose Island will retain its autonomy, that is they'll apparently have the freedom to brew independently and to continue to innovate. Of course this can only be proven over time, and few things in business are ever set in stone. This entire deal is proof of that.

Speaking of Change

In these situations some form of change is inevitable. Even though John remains at the wheel as CEO, Greg stepping aside as Brewmaster ( http://beeradvocate.com/forum/read/3646046 ) will no doubt impact the company's culture. In fact, after talking with staff yesterday John mentioned internal reactions ranged from shocked to supportive.

What's next for Greg? Sources have reported that his next project will not involve brewing beer, which has added more salt to the wound for some. The way I look at it is that very few of us have the opportunity to what we love for a living, and even fewer the chance to possibly do it twice. So I've gotta raise my pint to Greg on this one.

And John conveyed how proud he is to have watched his son become successful in the business that he built, that he's supportive of Greg's desire to move on, and thankful that he'll remain partially involved with Goose Island on a consulting basis.

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I also had the chance to follow-up with Greg and John to address some additional questions.

Greg Hall
Brewmaster, Goose Island

Some might say you're needed more than ever right now. Why move on now?

In 1988, when my father opened Goose Island, he had just finished a career in finance at CCA, where he started working in his early 20s. After 20+ years there, CCA was bought and he was offered the opportunity to stay on with the new, bigger enterprise. Despite having 2 kids in school and no experience in brewing other than a love of great beer, he opened Goose Island at age 45. I am 45, with 2 kids in school and 23 years at Goose. This is my golden opportunity to do my own thing, call all the shots and follow my father's inspiring footsteps. Brett Porter is the right man to lead Goose Island Brewing into the the next chapter. I'm certain Brett and his team with continue to brew excellent, innovative beers.

John mentioned you'll be consulting for Goose Island. At what capacity?

We haven't finalized details, but I expect I will work with Brett and the Brewing team developing beers, the Marketing team on branding and with my father and Anheuser-Busch InBev on strategy. I'll strongly recommend we immediately start work on a brett Porter.

What are you going to miss most about working at Goose Island?

I have enormous pride in what we have accomplished, and I can say I was responsible for a pretty big chunk of everything Goose Island has done up to now. It's kind of like walking your daughter down the aisle, you couldn't be more proud, but you'll miss her every day. She's now someone's wife, but she'll always be your girl. Heck, Sofie is even named after my daughter. I'll miss the brewery and the brewers and the pride of seeing my beers in stores, bars and restaurants. Good news is I can start reviewing beers on BA!

As a soon to be ex-brewmaster, do you have any parting words for the beer geeks of the world?

I want to say thank you. To all my friends who first drank Honker's Ale at the brewpub in the 80's, those who kept us alive through the dark days in the early 90's, made Goose Island Chicago's beer when we opened our Fulton Street Brewery in 95, matured with us as we started playing with brett and barrel aging in the 00's, and to those who inspired me by always asking "what's next?". I toast all our drinkers, our many talented brewers, the tremendous support I've received from the retail trade, the very kind beer press and most of all thank you to my father, for opening a brewery in 1988 and giving me the opportunity of a lifetime. Cheers to all of you.

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John Hall
President, Goose Island

Many are saying that Goose Island is as good as dead now. How do you plan on convincing them otherwise?

Many had the same fears in 2006 when we did our distribution deal with A-B. Since then we produced some very highly acclaimed beers; Sofie, Fleur, Pepe Nero, Madame Rose, Lolita, Juliet, Night Stalker, Bourbon County Brand Coffee Stout, Bourbon County Brand Vanilla Stout, and Rare Bourbon County Stout. We plan to convince people by focusing on making these beers more widely available while making more new exciting beers.

How will the brewpubs be impacted by this deal?

The brewpubs will still bear the Goose Island name and will continue to be a big part of our brand. We innovate there daily, and it's where we get immediate feedback from beer drinkers. We have a tremendous amount of brewing talent at the brewpubs and we'll support them in continuing the same small batch experimentations they have always focused on.

After things settle, what can we expect next from Goose Island?

As brewers, more of the same innovation and commitment to great beer that drinkers have come to expect from Goose Island. In April we're releasing a new imperial stout, Big John, and we will begin making Fleur four packs available year round. In the latter half of 2011 we have plans to release a new Bramble Rye Bourbon County Stout along with King Henry, a bourbon barrel-aged Barleywine named in honor of my grandson. We also plan to bring our Christmas Ale back out of retirement for 2011. As a business, we'll continue to support community organizations focused on improving the cultural and environmental life of the city of Chicago.

Where do you see Goose Island in 5 years?

Our priority is to grow in an organized way. That means first working to fill the demand in our current markets, that will take time. After that we'll look at strategically expanding into new states. On the beer side of things I'm looking forward to new and exciting beers year after year. By the end of the five years my dream is to have a new brewery here in Chicago to complement our operations at the Fulton Street Brewery.

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For more, checkout http://gooseisland.com or follow them on Twitter http://twitter.com/gooseisland , where they've been actively answering questions.

[ Filed under: Beer News ]

What is f*&k?

i say get night stalker now before they have time to f*&k it up!

One thing came to mind when I read this. If the "big guys" can't beat craft beer at their own game, they'll simply buy the quality they can't reproduce and any market share that goes along with it. Though it may not be the same with all breweries out there, they are ultimately a business first and beer isn't always the number one priority. Notice how it was mentioned first that this will be a good decision for the stakeholders, then the employees and finally the customers. Maybe that's reading too much into things, but it's worth bearing in mind. In any case, I'm curious to see what the repercussions will be.

We've lost another one to the dark side

THIS IS A SAD DAY FOR CRAFT BEER!

Chicago Small Brewer, Craft Brewers Alliance to Sell Stakes in Goose Island; Expansion of Chicago Brewery Planned

CHICAGO (March 28, 2011) - Chicago-based Goose Island, one of the nation's most‑respected and fastest-growing small brewers with sales concentrated throughout the Midwest, today announced it had agreed to be acquired by Anheuser‑Busch, its current distribution partner, in a move that will bring additional capital into Goose Island's operations to meet growing consumer demand for its brands and deepen its Chicago and Midwest distribution.

Goose Island's legal name is Fulton Street Brewery LLC (FSB). Anheuser-Busch reached an agreement to purchase the majority (58 percent) equity stake in FSB from its founders and investors, held in Goose Holdings Inc. (GHI), for $22.5 million. Craft Brewers Alliance Inc. (CBA), an independent, publicly traded brewer based in Portland, Ore., that operates Widmer Brothers, Redhook and Kona breweries, owns the remaining 42 percent of FSB and reached an agreement in principle to sell its stake in FSB to Anheuser-Busch for $16.3 million in cash. Anheuser‑Busch holds a minority stake (32.25 percent) in CBA.

Goose Island sold approximately 127,000 barrels of Honkers Ale, 312 Urban Wheat Ale, Matilda and other brands in 2010. To help meet immediate demand, an additional $1.3 million will be invested to increase Goose Island's Chicago Fulton Street brewery's production as early as this summer.

"Demand for our beers has grown beyond our capacity to serve our wholesale partners, retailers, and beer lovers," said Goose Island founder and president John Hall, who will continue as Goose Island chief executive officer. "This partnership between our extraordinary artisanal brewing team and one of the best brewers in the world in Anheuser-Busch will bring resources to brew more beer here in Chicago to reach more beer drinkers, while continuing our development of new beer styles. This agreement helps us achieve our goals with an ideal partner who helped fuel our growth, appreciates our products and supports their success."

Hall will continue to be responsible for Goose Island beer production and the expansion of Goose Island's Chicago brewery, where production will continue and its business will still be based.

"The new structure will preserve the qualities that make Goose Island's beers unique, strictly maintain our recipes and brewing processes," Hall said. "We had several options, but we decided to go with Anheuser‑Busch because it was the best. The transaction is good for our stakeholders, employees and customers."

Anheuser-Busch has distributed Goose Island brands since 2006 as part of an agreement with Widmer Brothers Brewing Co. of Portland, Ore., a co-founder of CBA, that provides Goose Island access to the network of independent wholesalers that distribute Anheuser-Busch beers. Anheuser‑Busch also provides logistical support to all Anheuser‑Busch wholesalers distributing Goose Island and CBA beers as part of that agreement.

Wholesalers currently servicing retailers with Goose Island beers will continue to do so with no disruption in service.

"These critically acclaimed beers are the hometown pride of Chicagoans," said Dave Peacock, president of Anheuser-Busch, Inc. "We are very committed to expanding in the high‑end beer segment, and this deal expands our portfolio of brands with high-quality, regional beers. As we share ideas and bring our different strengths and experiences together, we can accelerate the growth of these brands."

Anheuser-Busch's purchase of FSB is subject to customary closing conditions, including obtaining required regulatory approvals. The transaction is expected to close in the second quarter of 2011.

The two Goose Island brew pubs are not part of the deal, but will continue in operation, offering consumers an opportunity to sample Goose Island's award-winning specialty beers and food selections.

As part of CBA's agreement to sell its 42 percent block in FSB to Anheuser-Busch, in addition to cash, Anheuser-Busch will provide enhanced retail selling support for CBA brands, will reduce distribution fees payable by CBA to Anheuser‑Busch and will provide CBA additional flexibility with respect to future acquisitions and divestitures.

Founded by John Hall in 1988, Goose Island Beer Company is one of the Midwest's first small breweries. Located at 1800 W. Fulton St., Chicago, 312-226-1119, http://www.gooseisland.com , Goose Island is acclaimed for creating world-class ales, including 312 Urban Wheat Ale, Honkers Ale, India Pale Ale, Matilda, Pere Jacques, Sofie and a wide variety of seasonal draft only and barrel-aged releases, including Bourbon County Stout, the original bourbon barrel-aged beer.

Based in St. Louis, Anheuser-Busch is the leading American brewer, holding a 48.3 percent share of U.S. beer sales to retailers. The company brews the world's largest-selling beers, Budweiser and Bud Light. Anheuser-Busch also owns a 50 percent share in Grupo Modelo, Mexico's leading brewer. Anheuser-Busch is a major manufacturer of aluminum cans and has been a leading aluminum recycler for more than 30 years. The company is a wholly-owned subsidiary of Anheuser-Busch InBev, the leading global brewer, and continues to operate under the Anheuser-Busch name and logo. For more information, visit http://www.anheuser‑busch.com

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This is a repost from beeradvocate.com

Just passing on the word for anyone interested.

More information regarding changes at Goose Island:

http://www.gooseisland.com/pages/p ... 11/216.php

Goose Island Beer Company Announces New Brewmaster Brett Porter

Goose Island Beer Company is excited to announce the appointment of Brett Porter as Brewmaster of the company's Fulton Street brewery, effective May 1, 2011. Taking over the reins from long-term Brewmaster Greg Hall, Porter will oversee the creative and technical development of Goose Island's award-winning portfolio of beers.

Before joining Goose Island as Head Brewer in May 2010, Porter worked from 2005 to 2010 as Head Brewer at Deschutes Brewery in Bend, Ore., where his beers earned more than 150 awards. Previously, Porter was Head Brewer of Portland Brewing, a position he held from 1993 to 2005. His resume also includes brewing apprenticeships in England at Bunces Brewery and Holden's Brewery.

Porter graduated with a B.A. from University of Oregon in 1988, continuing on to do graduate work in biology, chemistry and English. A lifelong student of beer, Porter studied brewing at University of California at Davis and has served as Secretary/Treasurer of District Northwest Master Brewers Association of America from 2008 to 2010.

Renowned in beer circles for his technical mastery, Porter's experience at Goose Island has allowed him to focus on creativity and innovation. He says, "Goose Island has somehow retained an approach to beer that you often only find at brewpubs, an ultimate respect for the craft of brewing. John Hall is always encouraging brewers to first do what is best for the beer. It is the kind of environment where a brewer can focus on the craft and be creative to explore."

In taking over the reins from Greg Hall, Porter says he intends to carry on Hall's open-mindedness and innovative spirit. "When it comes to creative ideas, I have not heard Greg say 'no' even once. It is a philosophy that inspires a brewing team to think anything is possible, and I can tell you from experience that it makes for some pretty exciting discoveries." Porter also admires Hall's culinary connections in the Chicago community. "Greg is an integral and respected member of the great food town that is Chicago. The best way to tell you my desire to carry on this tradition is: I am hungry."

Greg Hall is excited that Brett Porter will continue Goose Island's legacy of innovation and growth. "Brett is a fantastic brewer," Hall says. "His years brewing in the Northwest made him a perfect choice for Head Brewer last year and a natural choice for the next Goose Island Brewmaster. I'm certain under Brett's watch, Goose Island will continue to brew outstanding, innovative beers." Hall will serve as Consultant to the company, advising Goose Island on strategic direction, beer styles, marketing and brand positioning.

Founded by John Hall in 1988, Goose Island Beer Company is one of the Midwest's first craft breweries. Goose Island is acclaimed for creating world-class ales including 312 Urban Wheat Ale, Honker's Ale, India Pale Ale, Matilda, Pere Jacques, Sofie, and a wide variety of seasonal, draft-only and barrel-aged releases including Bourbon County Brand Stout, the original bourbon barrel-aged beer. Located at 1800 W. Fulton St., Chicago, Ill., 312-226-1119, http://www.gooseisland.com

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