Goose Island brewery acquired by Anheuser Busch

Goose Island, a Chicago based microbrewer, has been ordered out by megalithic beverage corporation Anheuser Busch, the company that makes the Budweiser family of beverages. During the past few years, huge beverage companies like Anheuser, SABMiller and Molson Coors, have been getting out little breweries, which some people aren’t amused with. Macrobreweries dominate the industry for beer, prompting cynics to claim corporate The United States is out to spoil everyone's fun.

Buying a microbrewery for the macrobrewing company

About $38 million will be paid by Anheuser-Busch to get the Chicago Goose Island brewery, reports USA Today. Anheuser-Busch is the Budweiser beer macrobrewing family. A partnership between Anheuser and Fulton Street Brewery which makes Goose Island beers was already in existence although now the Goose Island line will be an in-house brewery. Craft Brewers Alliance sold 42 percent of shares to Anheuser while 52 percent of Goose Island's shares were ordered by Anheuser outright. There are lots of small brew houses put together with Craft Brewers Alliance, states BizJournal. The business was merged together in 2008 by Widmer Brothers and Redhook. Anheuser-Busch, which was ordered several years ago by global beverage titan InBev, owns 32.5 percent of Craft Brewers Alliance Inc.

Big corporations get distribution decisions

The Chicago Sun Times explained that Anheuser was given Goose Island control on reason. This was so that more beer could possibly be made to meet demand that is going up. Since it’s well known that brewers, distillers and vintners all need a distribution company to sell the beer being made to different businesses, this makes sense. To be able to keep up with demand, because law mandates the distribution system, small businesses for instance Goose Island will often sell themselves to corporations for instance Anheuser Busch/InBev, SABMiller and Molson-Coors that have controlling interests in distribution. Reuters explains that in 2009, hardly any microbrewers sold beer. It only accounted for five percent of sales in beer.

Getting help by simply being a small brewer

The U.S. U.S. Senate currently has a bill before it called the Brewer’s Employment and Excise Relief Act, which would cut the excise tax on the first 60,000 barrels of beer produced by breweries in half, according to Reuters. Breweries that make less than six million barrels a year wouldn’t have to pay as much of an excise tax. While producing beer, the first 60,000 barrels have a $7 excise tax currently. It jumps to $18 a barrel if more than that is made. Businesses that stay under 6 million barrels a year will only have to pay $16 a barrel. This will benefit small businesses but not corporations. The House of Representatives will be seeing another version soon. A bill of this sort would help to lower the price of craft beer, making it easier for those who enjoy craft brewed beer to do so.

Information from

USA Today

usatoday.com/money/industries/food/2011-03-28-anheuser-busch-goose-island.htm

Chicago Sun Times

newssun.suntimes.com/business/4552383-420/goose-island-brewery-sold-to-anheuser-busch.html

Biz journals

bizjournals.com/portland/news/2011/03/28/craft-brewers-sells-goose-island-stake.html

Reuters

reuters.com/article/2011/03/19/us-breweries-idUSTRE72I3E620110319?pageNumber=1