As was reported last week in various places (yup, I am not Mr. Breaking News these days…) Molson has set up a separate branch to mess around in the craft beer segment (or maybe more appropriately, the pseudo-craft segment). Their new operation, Six Pints, will take control of Granville Island and Creemore, and in the future will sell other “craft” and import products. No, they are not a brewery. They are a beer marketing company. But, according to Molson, they are devoted to pushing craft beer.
Okay.
What does this mean? I think there are three significant elements in this announcement. First, this is the most overt acknowledgment from the big boys that craft beer is a serious threat to their profits. We all know that it is the only growing part of the beer market, but this decision suggests that Molson’s prediction gurus have done the projections and realize that growth ain’t going anywhere. So this is their attempt to muscle in. That is quite obvious.
Second, and more positively, I think this is a legitimate admission that the only way Molson can appropriately deal with their two craft brands is to keep them at arms length from the rest of the operation. Molson has had a good track record with Creemore, for the most part not messing with the quality of their beer. But how long can that last when the marketing boys are in charge (can you spell Molson M?)? So in that respect, I think giving the craft brands their own division is a good thing, as I believe it offers some assurance that the character of the beer won’t be disturbed. To this end I note they didn’t move Rickards over to the new division – hinting that they know it is not a real craft beer.
Finally I am worried that this announcement is something of a declaration of war. Nothing the big boys have done to date has curtailed the growth of craft beer. And that worries them. So, I suspect that Six Pints is an escalation in their attempt to take over the craft segment. I realize the announcement is beyond vague, and that we are not really sure what their plans are. But allow me a prediction. I suspect the portfolio will quickly fill up with mid-sized imports, a variety of faux craft brands and test beer designed to measure market reaction to new products. And to what end? To push out the one or two taps that real craft brewers get in better pubs. If they can force out a Half Pints, a Central City, a Propeller and replace it with their import that vaguely resembles that microbrew, more sales for them and fewer taps for real craft beer. And that, my friends, is the real threat from this initiative.
To be honest, I don’t think the effort will succeed. I predict it will quietly disappear in a couple/few years. Yet, its underlying motivations make me nervous. When the big boys get focused, it is not good for real purveyors of craft beer.
So keep your eyes peeled for faux craft beer from Six Pints.
June 7, 2011 at 9:56 AM
Love the term “faux craft beers”…
June 7, 2011 at 5:04 PM
Like you, I am a bit worried about this foray into the world of craft beer. I take some heart in the fact that after Sleemans bought Unibroue they left it alone to do what they do best, produce world class Belgian style ales.
I can only hope the Molson learned from that.
What worries me most is that I expect to see a spate of acquisitions such as would make E.P.Taylor proud, all at the expense of Canadian Craft Beer Drinkers. A craft brewery grows and becomes a target and when you are struggling to break even and pay the rent it becomes an awfully tempting offer.
June 7, 2011 at 7:39 PM
Yeah, a re-creation of EP Taylor would be a bad thing. Here is hoping our great craft brewers realize a short term cash buyout at the expense of the adulteration of their fine product is not a bargain.
Long live independent craft brewers!
Jason
June 8, 2011 at 12:47 AM
The indy the small breweries don’t have capacity that the bigs want. Really who do they buy next in Canada. Russell/Fort Garry, nobody in Canada has the capacity the bigs are interested in. You have to be pushing 100 thousand hecs for the bigs to be interested in you.
June 13, 2011 at 6:28 PM
See, the bigs aren’t interested in a breweries capacity, there will close down their physical brewery anyway. All they want is the name and customer base. A craft brewery who makes a good product and has a wide following becomes a target.