All I can say is “Holy Poor Public Image, Batman!” to this bit of news. Today the blog Canadian Beer News reports (apparently getting it from the Toronto Star) that Labatt brands destined for the U.S. market will from now on be brewed at Molson plants in Toronto and Montreal (here is a link to the CBN post).
I could go the cheap route and crack a line like – well, it only means switching the labels on the bottling line, anyway – or some other reference to how the two companies make beer that tastes the same. But there is something substantive in this decision that needs remarking.
The storyline is summarized well by CBN – it is fallout from the AB-Inbev merger a couple years ago and is an attempt to remain onside with U.S. Anti-Trust legislation. And the ludicrousness of making your product in your main competitor’s factory is bizarre enough to be a Seinfeld episode.
But this is why it interests me: I think it is a potent symbol for AB-Inbev’s long term corporate strategy with Labatt products. The Labatt brand is being slowly choked to death. The company is spending the bulk of its resources on its sales monster, Budweiser, and on its “premium” brands, like Stella Artois, Alexander Keith’s and Kokanee – at the expense of Blue and other Labatt mainstays. Think about it. When was the last time you saw a Labatt Blue TV ad?
I think the name Labatt is being phased out, ever so slowly. And by allowing it to be brewed at Molson breweries, they are sending a signal that they don’t really care about that line anymore. They would NEVER let Stella be brewed at a Molson plant! I fear that in a few years time, the name Labatt will fade away, which, despite what you may think of their beer today, will be the death of a hugely important chunk of Canadian beer history. Labatt’s came into existence in 1846 and has become a Canadian icon. The name matters.
I realize the decision to brew at Molson was not AB-Inbev’s – as they had sold Labatt USA. But even that decision is noteworthy for its lack of commitment to the brand. Plus who gives up ownership over the flagship brands, even in foreign markets? There were other ways to address the U.S. government’s concerns.
I may be wrong, but fear I am spot on the money. This decision only deepens my suspicions.
August 20, 2010 at 2:33 PM
Jason – one important thing to note here is that InBev-AB/Labatt actually had nothing to do with this decision. They had to cede ownership of Labatt USA when the merger took place, so this is purely a deal between North American Breweries (who now own Labatt USA) and Molson.
That’s not to say that your speculation about InBev-AB wanting to phase out Labatt is incorrect. The fact that they were willing to sell off Labatt USA to a competitor rather than shutting it down is pretty telling, and Labatt Canada often seems more interested in pushing brands like Stella and Keith’s over their core Labatt brands. Something to keep an eye on to be sure.
August 20, 2010 at 3:54 PM
Greg,
True enough. I am aware of that, but I guess in the interests of brevity I took a shortcut (an error in hindsight) and didn’t spell that part out explicitly. Thanks for adding it.
Jason
August 21, 2010 at 8:19 AM
They can all continue to choke and die. Why should Canadians in this day and age care what happens to Molson or Labatts? Continual mergers with foreign companies, closure of breweries, and awful beer (I suppose the ONLY exception would be Molson-owned Creemore).
And then to top it off, Molson still uses the “I AM CANADIAN” slogan to drum up national pride and support. It is insulting.
August 21, 2010 at 12:06 PM
You know, the first beer I ever legally bought was an IPA from Labatts. They haven’t even made that in 30 years or so (and it actually tasted like an IPA, if my memories aren’t too distorted by time). It will be a shame to see the Labatt name disappear from the Canadian beer scene but It’s just following the trend started by Edward Plunkett Taylor so many years ago. Wish he had stuck to horses.
On another note, reading the comments from Josh Rubin’s Star article can be a bit depressing. Too many Canadians don’t seem to even know what beer should taste like anymore.
October 3, 2013 at 9:32 AM
Labatts IPA & Molson stock wre my drink of choice in ontario, in quebec it was DOW ALE! along with champlain portere, boy do i miss them, anyhow wish somone with a brain would re-issue them , they were legit, moslaons sexbeer, or Ex Passable but good, 40 from Labatts, another standby, but have to go to ontario to get stock ale & IPA…was trying at best, anyhow the micros, well made ones are to be enjoyed… the multinationals…who needs them, let them go…
April 20, 2017 at 12:35 PM
I like labatt blue Dry 6.1 and Molson canadian 5% AND Molson Export with a nice Rib steak. But my favorite beer is Guiness Stout and The Belgian Leffe beers. I also like the macro beers by unibroue.