Duck, Duck, Goose Island

Beer drinkers cringed at the news of a buyout of Goose Island Brewery by Anheuser-Busch. The details of the deal, worth approximately $39 million (a small fee for the internationally successful beverage company Anheuser-Busch Inbev), hit wires in late March. Some beer fans care more than others, but Chicago natives and residents fear for the continuity of a treasured Chicago craft.

Could this negative sentiment be due to the fast-fading amount of prominent local goods and companies? Lately, Chicagoans have lost staple companies and products to outsourcing, buy-outs and mergers such as Marshall Field's, Frango Mints, First National Bank and now Goose Island.

"I think people will soon forget about it [the buy-out], comparable to what happened when Macy's bought Marshall Field's…no one cares anymore," said DePaul student Kevin McCarthy.

The only immediate comfort provided for Goose Island fans came directly from the orchestrators of the deal. Anheuser-Busch President Dave Peacock said in an interview, "You don't want to change what's working… It would be crazy to change the taste of their products."

Contrary to local and popular belief, there is much more to be optimistic about as a result of Anheuser-Busch's financial stature.

Lisa Carlson, manager at Goose Island's Clybourn Avenue Pub, said she had no previous knowledge of this deal until it hit Facebook and e-mail threads. She also explained that senior management at Goose Island has assured the brewery and pub staff, "Nothing is going to change. Anheuser-Busch wants us to continue doing what we're good at."

Starting as a small-time brewery, Goose Island founder John Hall started making the hoppy magic happen in 1988 at his Fulton Street Brew House. His son Greg Hall has served as the head brew master but is said to be stepping down at the close of the deal (expected to be finalized by the end of the second fiscal quarter of 2011).

There are many reasons why this sale to the big guns can be a positive thing for Goose Island. History has shown that four of the top 20 craft brewers in the U.S. beer market have sold out to larger companies, only to see huge gains in distribution and revenue. Goose Island is now the fifth mass-production, craft brewer to sell out to a larger company in the last calendar year.

"312 is one of my favorite beers. I'll keep buying it as long as those recipes don't change. I don't think mass-distribution is bad, maybe it'll be better and they'll lower their prices." said Goose Island patron Dennis Wilson.

Peacock has also publicly stated that they plan to spend a minimum of $1.3 million to expand Goose Island's Fulton Street Brewery. This will not only allow for more production, but also a larger area of distribution. Founder and standing CEO of Goose Island, John Hall, stated that certain ales have had to be retired because of a lack of revenue and resources for constant production. This situation will take a 180-degree turnaround toward creating more boutique ales, more experimentation and a larger range of distribution. More experimentation with "pilot brews" will not only get the current fans more excited, but will attract new drinkers to Goose Island's products.

The locally owned and operated Goose Island Pubs will see an influx of business, which could potentially call for more locations. Lisa Carlson emphasized that customer flow at the Clybourn Pub has noticeably increased. "We're seeing new customers; some have even asked if we'll be carrying Bud and Bud Light."

Anheuser-Busch has immense marketing capabilities and will be able to take Goose Island's 50 "craft beers" outside of a distribution range of just 18 states and four locations outside the U.S. After all, distribution rights are the main reason for this sale. Anheuser-Busch's press release names itself as Goose Island's "Partner…for Growth Strategy."

Goose Island has been outsourcing production and distribution through entities owned and operated by Anheuser-Busch since 2006 and has now given both their shares owned by the Craft Brewers Alliance and those held independently by Goose Holdings Inc. to Anheuser-Busch. Motivations for this deal on Anheuser-Busch's side include tapping into the craft beer market, which they have not successfully done to-date.