Article on Creemore Takeover by Molson

Uncle Bobby · Post by **Uncle Bobby** » Tue Jun 06, 2006 3:14 pm

In the new (June 5-18, 2006) issue of Canadian Business, cover story, "Traffic and How to Beat It".

Article on p. 62, "Tale of Two Brews". I haven't read the whole article yet but it appears to highlight the benefits of the takeover to both organizations. Could be subtitled, "How to be bought out and still be your own boss". The article makes a point of repeatedly contrasting the size of the two breweries.

Definitely an article dealing with the business end of the brewing industry.

Regards,

Uncle Bobby

lister · Post by **lister** » Tue Jun 06, 2006 3:23 pm

The article is online here.

flip · Post by **flip** » Tue Jun 06, 2006 4:10 pm

This is a fairly interesting article about the dynamics between Creemore and their parent company. It would appear that Creemore is a pretty autonomous unit, just that it's under different ownership.

I found this section in particular very interesting:

One such example was when brewmaster Gordon Fuller switched one of the hops for its seasonal Urbock beer, a column in the bimonthly Great Lakes Brewing News suspected Molson Coors was forcing Fuller to use cheaper ingredients. Turns out, says Amirault, the original hop was no longer available. Fuller searched far and wide to find an alternative. But the perception that Molson Coors was behind the switch in ingredients is the kind of battle Amirault has been fighting for the past year.

I did a quick search the change in taste was actually noticed by bartowlers (pootz mentioned it in a post, I'll figure out the proper link later). I'd be the first to admit that I'm biased and I personally chalked up the change in quality as interference by Molson. I guess wasn't the case here...

Uncle Bobby · Post by **Uncle Bobby** » Tue Jun 06, 2006 4:35 pm

Some things, of course, have changed. Creemore's beloved 500-millilitre bottle is gone, done in by industry regulations. The smaller 341-ml bottle got a makeover, and a 473-ml can was introduced this spring--a big hit if initial sales are any indication.

Was the bottle done in by "industry regulation" or by the Beer Store fee for "non-standard" bottles? "Industry regulation" would make it sound as though the strictures and fees against anything other than a 341ml bottle were a result of a government decision.

I always was given to understand that many of these decisions were made purely to accommodate the convenience and priorities of the Beer Store's primary shareholders.

-Uncle Bobby

flip · Post by **flip** » Tue Jun 06, 2006 4:49 pm

Uncle Bobby wrote:
Some things, of course, have changed. Creemore's beloved 500-millilitre bottle is gone, done in by industry regulations. The smaller 341-ml bottle got a makeover, and a 473-ml can was introduced this spring--a big hit if initial sales are any indication.
Was the bottle done in by "industry regulation" or by the Beer Store fee for "non-standard" bottles? "Industry regulation" would make it sound as though the strictures and fees against anything other than a 341ml bottle were a result of a government decision.

I always was given to understand that many of these decisions were made purely to accommodate the convenience and priorities of the Beer Store's primary shareholders.

-Uncle Bobby

Given the difficulty Brick had re-introducing the Stubby into The Beer Store system, I assume that "industry regulations" is synonymous with "The Beer Store Regulations"

Feeding into "Molson influencing Creemore" mind set, I wouldn't be surprised if there was pressure from Molson to adopt standard bottle sizes given Molson's huge stake in The Beer Store, as you allude to. The fact that Molson is Creemore's distributor to lends further credence to that. If expanding distribution and production is one of Molson's goals then they probably want to be able to distribute as easily as possible. After all, why do anything that could possibly differentiate your product?

JerCraigs · Post by **JerCraigs** » Tue Jun 06, 2006 8:54 pm

Uncle Bobby wrote:
Some things, of course, have changed. Creemore's beloved 500-millilitre bottle is gone, done in by industry regulations. The smaller 341-ml bottle got a makeover, and a 473-ml can was introduced this spring--a big hit if initial sales are any indication.
Was the bottle done in by "industry regulation" or by the Beer Store fee for "non-standard" bottles? "Industry regulation" would make it sound as though the strictures and fees against anything other than a 341ml bottle were a result of a government decision.

I always was given to understand that many of these decisions were made purely to accommodate the convenience and priorities of the Beer Store's primary shareholders.

Are they using an ISB now or the same custom 341mLs they had before? Those are still subject to TBS sorting fees (as are stubbies, Sleeman bottles, etc.)

I think the Creemore guy (im blanking on his name) was on here at the time talking about the shift? I expect many factors contributed but ultimately the 500 mL probably died simply because 341s are more popular.

Berliner Weisse · Post by **Berliner Weisse** » Tue Jun 06, 2006 9:13 pm

I believe the switch to the ISB was indeed a result of the parent companies agreement with-in the industry. The industry aggreement did not allow for the 500 to continue in service, though the industry did allow for a 600 ml as I understand it. I think that the sales of the 500,[ though still a significant % of total bottles produced], were low enough that delisting was soon to possibly happen.

Just my thoughts,.................BW

Rob Creighton · Post by **Rob Creighton** » Tue Jun 06, 2006 10:49 pm

Interesting article. Molsons required adherence to the industry standard bottle (and 473ml can) goes against the exact trends that they seem to be trying to grab by getting Creemore. Part of the success of Steamwhistle and Mill Street and formerly Creemore is the independent, stand alone 'Cool' factor of being seen with something that stands out. It has without question caused a few regulars to question the future.

The thing to look for is not the package or distribution though. It is when they have a member of QA join them to help 'improve' or clean-up some of their long term practices. You know how it goes..."we picked up this flavour in taste panels in the Toronto plant and we have some suggestions to help make the product better". That is where Gord has to bar the door. Good intentions can be fatal.

The effects of chain business will also be interesting to see. The Boston Pizza's/Applebees of the world are about to have a decent beer on for a change.

Mother G · Post by **Mother G** » Wed Jun 07, 2006 3:04 am

Another interesting fact is that Peter Amirault who was instrumental in getting the deal done has left Molson / Creemore.

He was spending a lot of time in Golden on Special Projects and he decided that it was hurting his family.

I wonder what this means to the ongoing Management of the Creemore brewery. He was the person who was adamant that Creemore would be left alone.

I have to believe that they have plans to do "more" with Creemore.