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Greg Hall talks about Goose Island and Anheuser-Busch

Posted in Consume blog by Heather Shouse on Mar 28, 2011 at 12:37pm

Greg Hall, the outgoing brewmaster at Goose Island.

Photo: Lindsay Gallup

Minutes after Goose Island sent out the press release about being acquired by Anheuser-Busch, my inbox was flooded with e-mails of concern from people—not food media mind you, but normal everyman Chicagoans expressing dismay at their local beer company getting swallowed up by a brewing giant. Greg Hall knew this would be the natural reaction, so he called me to try to set the record straight.

Respond to the idea that you guys “sold out.”

People said we sold our souls in 2006 when we signed a distribution deal with AB but look at what’s happened since then. We are still craft brewers. That year we had just brought out Matilda as a seasonal and were eventually able to make it year-round. We introduced Bourbon County Stout and since then we were able to add variations on it, as well as add Sofie, Fleur, Juliet, Madame Rose, Pepe Nero and Nightstalker. That kind of innovation and dedication to producing craft beers is what drew AB to us.

So how did the deal go down?

About six months ago we hired an investment banker to find money to help build a new brewery to keep up with demand. I mean, last year we had to kill three brands—Nut Brown, Oatmeal and Christmas—because we just couldn’t keep up with demand for everything. But as we found people who had the money to help us, they all wanted control and we didn’t want to give up control for obvious reasons. Then our friends at Anheuser-Busch, who’ve done a great job helping build our brand, called and said "Let's talk." We said "Before we talk, we want to make sure you know we want to keep brewing in Chicago, management in Chicago, decision-making in Chicago and we want to grow brands and add capacity." And they said "Great, that works for us." They’ve told us they’re committed to us because of who we are. I sat across the table from Dave Peacock [president of AB USA] and said "Why Goose and not Sam Adams or someone like that?" and he said "We like your beers, brands and innovations, what you’re doing and want to do with beer and food and we like that you’re in Chicago."

Now what changes?

I hate to say nothing changes. Miguel, a brewer who has worked for us for 20 years, walked in to my office and asked the same thing: Is it going to change? And I said "Miguel, when’s the last year that nothing changed?" and he said "Things change every year." Exactly. So we’ll continue to evolve by introducing new brands. Like, we’re about to release Big John, because with AB helping us add capacity it will enable us to add new stuff and keep up with the growth of brands like Matilda, which has grown 100 percent in each of the last three years. [As for] immediate change, they’re going to help us buy a bunch of new outside 400-barrel tanks so we can make more beer. Other than that, probably the biggest difference in the short term is we’ll have even better distribution. We’re not adding new markets because we expect we’ll get better distribution in existing markets.

And what about long term?

Well, we’ll see how the short-term capacity fix works and then it might be time to look toward a new, bigger brewery. And for me personally, I’m going to be here until April 30 in a brewmaster capacity then after that I’ll be on board as an advisor on beers, branding and strategy, working a minimum of three or four days a month.

So you’ll just sail off into the sunset on the deal?

This was my ray of sunshine through the clouds. When you think about this, my father had worked for Container Corporation of America since his early ‘20s and had seen it grow while his influence with that company grew. And in the late '80s his company was sold and he had the opportunity to stay on but he had two kids in school so he hung it up and started his own thing, starting Goose when he was 45. Well, I’m 45, I have two kids in school and I’ve worked with same company since my twenties. So this is perfect timing. It gives me money to start something new and a little bit of flexibility. I can’t really talk about what I’ll be doing for another month or so but it won’t be beer. Think about it—if Goose Island was my Mt. Everest, climbing Mt. McKinley would be boring. I’ve already done the beer stuff. I’ve created a new style in bourbon stout, I’ve brought wild fermentation beers to a food community and the masses, and there’s gotta be at least a dozen Goose brewers working as head brewers around the country and I’m terrifically proud of that. Now it’s time for something else.

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03/28/2011
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Well, at least his plans to do "something else" should be very well-funded. I'm sure the owners at Anheuser Busch have nothing but the very best intentions for making great craft beer through Goose Island. I mean, that's what AB is known for, right? Making great craft beer?
By Kid Carboy Jr. (not verified) on 3/28/2011 at 1:58 pm
Carboy, I have to say that us one of the best comments I gave seen on this topic!
By Zymurgy (not verified) on 3/28/2011 at 3:59 pm
"best intentions for making great craft beer through Goose Island. I mean, that's what AB is known for, right? Making great craft beer?" We can always trust AB-Inbev to do what is in the best interest of the company they buy. History shows that's what they have always done. Looked out for the company they buy......
By Anonymous (not verified) on 3/29/2011 at 7:37 am
Way to rationalize the sell out to the biggest bully in the beer industry. Take the money and run!
By Bobby (not verified) on 3/29/2011 at 11:02 am
All sounds good till the end. Yep, corporate America is known for doing the right thing.... Once Hall is gone: "And for me personally, I’m going to be here until April 30 in a brewmaster capacity then after that I’ll be on board as an advisor on beers, branding and strategy, working a minimum of three or four days a month." You can bet that AB will NOT be doing the right thing, sad news for Goose and for Chicago.
By Anonymous (not verified) on 3/29/2011 at 1:08 pm
Good for Hall, can not blame someone for taking a $38M buyout and enjoying life. But bad for fans of Goose. Perhaps his next venture will be beer commercials for Goose, alla Koch & Sam Adams, where he tries to convince the world that Goose REALLY IS still a craft beer. But like the swill produced by Sam Adams, Goose will suffer longterm and the U.S. dollars will be sent to A-B mother company, Begian InBev. Thank goodness for Three Floyds, their superb brews and their commitment to not sell out.
By Anonymous (not verified) on 3/30/2011 at 12:55 pm
Yeah, Greg sold out - so what? He built it, he can do what he wants with it. I admire him for that. If AB-InBev wants to destroy Goose Island thereby throwing away their 38 million dollars - so what again? If they're smart, they'll leave them alone to brew the beers we like. That would be a win for beer in America. Imagine the marketing power of AB-InBev encouraging consumers to branch out and try Bourbon County Stout or even an IPA. Also imagine being able to buy Goose Island beers wherever Bud is sold. "It's not about the beer. It's about the beer!" Think Three Floyds would turn down $38 million? Ha!
By BrewTa2 (not verified) on 3/30/2011 at 11:28 pm
Three Floyds can't even meet the demand of half the state. Sam Adams is not "swill" either. Craft beer would not beer where it is not if not for Boston Beer Company. The snobbery of geer geeks rivals is just baffling. So Goose Island turns to their distribution partner to help expand, so that their beer can reach more people. What's wrong with that? It sounds like AB is a silent partner, and the contract will be written up to leave Goose Island in control. The end result is increased access to their beers. Works for me. It does stink that Greg is stepping down, but I have three kids and can totally understand.
By Smitty (not verified) on 3/31/2011 at 8:39 am
If they maintain the recipes for Bourbon County Brand Stout, and keep up with new variations on that, AND expand the production of those, I will be very happy. It would be nice for by far THE best beer made in Chicago (Goose Island Bourbon County Brand Stout) to be actually available to more than just the extreme beerhounds.
By Lanyard (not verified) on 3/31/2011 at 2:05 pm
Greg can make any decision he wants for his family life; however, like many others have mentioned, AB "says" they are just the financial backing and plan to let GI run the show. We'll see how that plan goes. Another big company, Google, pulled the same crap with their original plan. They said one thing in the beginning then decided you have to play by their rules or hit the road. I worry that AB lets them run the show for a while then decides that they want to take over. Who is GI to say otherwise to the deep-pocketed company that bought them out? AB will put a pull chain on GI; they act out of "line" and they will just yank the chain. So much for small-time brewers that are big-thinkers in the world. Think of it teaching a kid to ride a bike. Yeah -- eventually you will let go and they'll pedal on their own; however, they always take a fall. Someone has to help them back on the bike. AB won't do that--- they'll opt for the easier way out-- why put the effort forth to be original? it is easier to succumb to the norm, be bland, and rich, right?
By Veronica in VA (not verified) on 3/31/2011 at 2:56 pm
Bye, Bye GI. It was nice tasting you when you were good. Your creativity will be missed down the road when AB swoops in and destroys your brand.
By Anonymous (not verified) on 3/31/2011 at 3:06 pm
Let's just hope this doesn't become the same scenario as the Kraft buyout of Cadbury. They said they wouldn't close factories, etc. before they bought Cadbury but soon after purchase, went against their word and made cuts. Whether or not they were good business decisions, I don't know...but don't say one thing and then do another!
By Anonymous (not verified) on 3/31/2011 at 3:43 pm
AB doesn't care about craft breweries, all they care about is market share and profit. What's better to grow market share by buying up small companies? AB is losing profits to craft brew so it's the only thing they can do. AB is evil and only has one thing in mind, and that's profit.
By Anonymous (not verified) on 3/31/2011 at 4:45 pm
This is all about money. Greg gets his golden parachute (well deserved) and AB/InBev gets market share. Things will change tho. They may keep a token brewery in Chicago, but I bet in 5 years 90% of Goose Island is "contract brewed" at the AB plants. When the accountants get done, the qualtity of ingredients will go down hill too. At least we can move to Half-Acre....
By Anonymous (not verified) on 4/01/2011 at 9:10 pm
Like how AB knocked the show Brew Masters off the air or they would pull all their advertising. Heard that one yet ? This will not be good in the end for craft brew.
By oh jeez (not verified) on 4/07/2011 at 12:10 pm
What a sellout, honestly. It will not bring about any "big changes" according to him, right? Says the brewer that pissed in beer glasses--
By Matthew (not verified) on 3/14/2012 at 5:40 pm
Have an Opinion? Let's hear it