A local craft brewer announced recently that they’re being bought out by Anheuser Busch (BUD) and at first I thought, ‘Cool. Good for those guys.’ But then there was a fairly large customer backlash that got me thinking a bit more about it. Why does everyone get pissed when a company like this “sells out”?
The 10 Barrel guys say they sold because AB gives them opportunities they wouldn’t otherwise have. They obviously get better distribution but they also get access to used brewing equipment and ingredients that are hard to come by in today’s booming craft beer market.
That’s all fine but every company goes through these sort of growing pains. Surely Deschutes Brewery and Sam Adams went through these very same problems as they grew from small town craft brewers into two of the largest in the country. They managed to overcome these very same hurdles without selling out.
Ultimately, it’s easier to solve these problems by selling to a buyer like AB or even just to any buyer and then letting them figure it all out. But is it the right thing to do for your brand, for your customers, for the long-term health and vibrancy of your business?
I think the main reason people get pissed is because when a company sells out it shows that profits were their top priority, more than their “brand.”
Look at the companies that have the greatest brand loyalty. Why do people love them so much? Apple, Twitter, Amazon. And smaller companies, like Ben & Jerry’s, In-N-Out Burger, Patagonia. What makes their customers so loyal?
It comes down to the company’s mission. I know Twitter got some flack for the their mission statement last week but it’s precisely because the company puts their users first that they remain loyal. It’s simple, really. A company has to stand for something more than just profits for it to engender any sort of loyalty.
Apple has consistently told Wall Street that their top priority is creating amazing products. Period. Profits are an afterthought. Amazon clearly prioritizes their customers over profits. I don’t think they’ve made a dime of profit over the past decade. Ben & Jerry’s and Patagonia are both about doing social good while you sell top quality products. In-N-Out sells fresh, quality burgers at low prices.
