A Leinenkugel at the helm

[rlibkind]

Article in today's Wall Street Journal (I don't believe it's behind the subscriber wall, so try this link) discusses how the big three aren't identifying themselves on the label as manufacturers of "faux craft brews" they make and market, i.e., Blue Moon, Leinenkugel's.

Some small craft brewers think it's deceitful on the part of the big brewers. The biggies respond, hey, if Kellogg's doesn't promote its ownership of Kashi and Toyota its Lexus, what's the problem? The article finishes by quoting one craft brewer as believing that, while the big guys may cut in to the small guys' market share, they are expanding the entire category to the benefit of all brewers, big and small.

The fact I found most interesting, if largely irrelevant, is that Jake and Dick Leinenkugel, the fifth generation of the founders, manage their beer and brand for SABMiller. But while Leinie's doesn't mention its owner on the packaging, the Leinie's website tackles the issue head-on.

PS: My wife thinks your basic Leinie's tastes pretty much the same as it did when she was in Madison in the 1960s and 70s; the family sold out to Miller in 1988. But then, your basic Leinie's was never considered a craft beer until SABMiller started expanding the brand a couple of years ago; before that, even under the big guy's ownership, it was just considered a decent quality cheap brewski.

[budrichard]

When attending the UW Madison on the 1960's Leini's was about $2/case and I agree that it basically tastes the same today.

But when 'Pig's Fly' is when I believe that Miller has no say in what Leini brews and markets!

Before Miller purchased Leini's it was about $6/case, now Miller overhead has made it $12.99/12 pack.-Dick

[jesskidden]

Before Miller purchased Leini's it was about $6/case, now Miller overhead has made it $12.99/12 pack.-Dick

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Well, some of that rise in price is based on twenty years of creeping beer prices in general (Miller bought Leinie's in the late 80's IIRC)- altho', if one trusts those "Inflation adjuster" websites, beer is still a lot cheaper than it was even 50 years ago (stats available on request ).

And, for the handful of pre-craft era breweries left, few can survive today by trying to compete with the Big 3 (A-B, Miller and Coors) by underselling them on price anymore (their economies of scale are just so overwhelming), so most of those successful post-Prohibition-era brewers left around (Yuengling, Matts/Saranac, Spoetzl/Shiner, Genesee/High Falls, etc) have adjusted their beer styles and beer prices to move most of their production into the "specialty beer" category and contract brewing for "craft" brewers. So it makes sense for Miller to use the Leinenkugel brands the same way.

Edited December 10, 2007 by jesskidden (log)