In 2006, Maureen Ogle’s outstanding book about the history of the beer business in the US, Ambitious Brew, opens with the arrival of Germans around 1844. She writes that due to the oppression to the German speaking Europeans, many decided their future was not in Europe, but in the US, so they left their home continent.
The Germans settled in multiple locations, many of which became hot beds for beer production, including, but not limited to Cincinnati, Milwaukee, Chicago, St. Louis, and Golden, Colo. Like many nationalities that came to the US, the Germans self-segregated. Even today, in a number of American cities, German American clubs still exist, albeit they are nothing like they were originally. Along with the many German breweries and retail outlets, these clubs were the social gathering place.
At Coors in San Antonio, our territory included Comal County, one of the many German settlements from that time period. Today Comal County is still the home of the annual Wurstfest, a 10-day German carnival and celebration of sausage. As you can imagine, a lot of beer is sold!
These German families assimilated into the US, became citizens, and established roots. Budweiser, Schlitz, Coors, Miller, Pabst, and many others grew over the decades as the breweries were passed from one generation to another. The industry often refers to prohibition as the darkest days we faced and during that time, German families and their breweries had to overcome both World Wars and the German backlash. Despite such backlash against them, these German families survived and flourished for decades.
After 9/11 and the US military involvement in the Middle East, a majority of the country has come to support our troops and their efforts. This has reinvigorated a nationalism that was not prevalent during the Vietnam conflict. In fact, such patriotism was very apparent during the recent World Cup as the US team made it into the round of 16. You could also see it in last month’s Ryder Cup, held in Scotland, and, of course, there is always the US support behind the Olympic teams.
One question: how does this nationalism translate to the beer industry? Consider ABI. Bought by InBev and run by Brazilians, who recently promoted another Brazilian to head up the US operation, with a stated goal of repairing relationships with their AB wholesalers! Really!
Heineken USA is also run by non-Americans. Breweries such as Bavaria, Carlsberg, and soon Moosehead, ended US operations, went to small importers, and pulled or reduced support. All there breweries are managed from their headquarters in their home country. Warsteiner just named a new President, a German, who will run the US operation from Germany. Take a look at many of these imports and breweries. Bought, sold and/or run by foreigners.
The sales and profit numbers for Crown and Boston Beers are remarkable. The same holds true for other American owned and run breweries including Sierra Nevada, New Belgium, Founders, Laganitas, Bells, and others. The American craft industry is on fire! Could part of that growth be because they are American owned and operated?
As discussed in previous posts, Europeans and others have different business models, and growth is not their number one priority. One can argue that ABI employs many Americans, which is true, but tell that to the thousands of former American employees who have been let go by the Brazilians.
So the question is: how many Americans run Brazilian Beer companies? How many Americans run German beer companies or breweries from Holland or in Belgium or China? Finally, how many foreigners run craft breweries are in the US? Perhaps these foreign run companies should consider that if everything seems to be going well, perhaps you have obviously overlooked something!
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