Merger with Gordon Biersch Could Prove Bad Outcome for Rock Bottom Craft Brewers
|You may have heard that recently Rock Bottom (including Old Chicago) and Gordon Biersch have merged to become CraftWorks Restaurants and Breweries, Inc. This joining of brewery forces results in the United State’s largest operator of brewpubs and craft-beer focused restaurants with almost 200 locations across the country. While the initial idea behind the merger was to simply combine two powerhouse chains into one without any change in the way each operates, new information has lead us to understand that the move could have crippling effects on the creativity and innovation put forth by Rock Bottom.
The merger was the outcome of a $150 million investment spearheaded by Centerbridge Capital Partners, a $12 billion money management outfit that now holds a majority share of the combined companies. From the start of the whole deal there was much inference about how the business dealing would impact individual brewpub locations and the beer produced at each since each is quite unique to one another. According to new company’s board, the move was about building the capacity for both companies to grow and customers should expect to see no real impact on existing locations. Rock Bottom brewers, despite some misconceptions of the chain, have been allowed considerable autonomy from one another in creating one-off and seasonal beers that vary from one brewpub to the next. On the other hand, Gordon Biersch brewers have been bound to predominantly rigid German styles and are required to provide samples to their corporate laboratories to ensure across-the-board consistency.
Centerbridge Capital Partners new company board chairmen, Allen Corey and Frank Day, initially indicated that the move was simply about expanding capacity for each company’s growth and that loyal customers should not expect to witness any real impact on the respected craft brewing climates of each. However, in contradiction to the understanding of what the RB-GB merger might initially unveil, insiders at Rock Bottom have presented a very different perspective on what might become of the respected brewery that is currently a top destination for craft beer enthusiasts.
A source associated with Rock Bottom’s brewing department, who asked to remain confidential, tells us that it now looks like things with the RB-GB merger “aren’t going the way (the most of brewers) had hoped” telling Brewpublic “We’re less than a month into this thing and the new CEO has decided to start making changes to our beer program. He wants us to standardize at least four, and possibly up to six of our beers across the entire company.” This is a divergence from uniqueness would certainly be to the dismay of those, like us, who have thoroughly benefited from Rock Bottom’s spirit of individuality exhibited at each of its brewpubs. “We’ve never had ANY standardized beers in the history of the company.” says one Rock Bottom employee. “Most of us think (the homogenization of branding) is a terrible idea for a number of reasons, and it most likely signals the beginning of the demise of Rock Bottom to complete irrelevance in the craft brewing world – a la Gordon Biersch.”
Another insider tells us that “the new CEO has shown decisively that he doesn’t care about anyone’s opinion but his own (even in the face of beer sales numbers in terms of both dollars and barrels). We at Brewpublic endorse the continuation of Rock Bottom’s craft beer ambiance right down to the last specialty brew, and seriously hope that the powers that be realize that augmenting a very successful beer program in terms of reputation, dollars and profit is a bad business idea.
Brewpublic hopes that especially in great beer cities like Portland, San Diego, Seattle, Boston, Chicago, and Denver that the outcome of the RB-GB merger will not be that of glut-driven bland mass production. So far, no treadmill recipes have been imposed by the suits, and no threadbare beers have been brewed, so there may still be time to save one the artistic brew chain. We plead to CraftWorks and Centerbridge Capital Partners that if the word of said sameness from one establishment to the next is true that they seriously rethink such a malevolent swing. Would one who appreciates distinct regional beer styles bother to step foot in a Rock Bottom in another town if the offerings were to just mirror that of their local watering hole? Afterall with such a great influence upon America’s burgeoning craft beer landscape, now seems like a better time than ever for Centerbridge Capital Partners to lead the way in offering choice and variety injecting a bit of personality into the beers instead of reverting backwards to cookie cutter uniformity.
Save Rock Bottom from the throes of drabness! Spread the word! Stop the homogeneity of doltish beer options and cast your vote for allowing creative brewers’ skills to shine. If not, craft beer lovers like us, might be disposing of our Mug Club cards and taking our business elsewhere, especially considering that more and more options are being made available as the modern craft beer revolution continues to unfold.
Great reporting Angelo.
+1
This is a big step backward if they decide to do it, not to mention it will do little to inspire the brewers’ confidence in them.
I have only tried Portland’s Rock Bottom beers, but if the other locations are producing as excellent a product as Van is, the CEO’s need to let them keep doing their thing. If there are quality issues at other locations, then address them at the specific location. Quality won’t rise because standardized recipes are set in place. It will rise when good brewing and fermentation protocols are set in place.
I’m not at all surprised that the anonymous source claiming Gordon Biersch to be “irrevevant in the craft brewing world” makes his comment anonymously…because it has to be one of the dumbest statements I’ve ever heard.
The various Gordon Biersch products are miles above a LOT of the stuff out there in the “craft” world, and proof that great beer doesn’t have to be an over the top, palate numbing experience.
I like Rock Bottom too, and it’s too bad they are in danger of losing part of their identity. But to call Biersch irrelevant is just plain silly. Their quality makes them very relevant.
Gordon Biersch is irrelevant and you can quote that shit direct from my mouth. Personally I would put Rock Bottom in the same category. These places are like the TGIFridays or Red Robin of breweries. In two years they will all look like every Hollywood Video. A giant empty building.
I agree that Gordon Biersch makes some great brews. They often-times do not get the credit that they deserve in the craft beer scene. I would drink most of their beers happily on any given day and I think if more beer geeks brewed lagers, they would more greatly appreciate the subtlety and complexity of what GB is producing.
As a long ago brewer for rb, i sure hope this does not play out. the rb brewers ave a long history of fighting the standardization in the company and hopefully they can continue to be successful. Great article
As a fellow Mug Club member, I too am disheartened by this news. However, I don’t feel a standardization of four beers would be the complete demise of the brand. The majority of brewers do not change their core line-up of beers once it has been established. Once those core beers are dialed in, they simply become a matter of production scheduling. This change, limited to a core four beers, would likely not affect the day to day lives of Rock Bottom brewers once implemented.
Rock Bottom has won many awards for beers that would compliment most any brewpubs line-up. A well selected and branded core four made consistently at every location may well bolster many of their locations line-ups. Allowing local selection and design of seasonals (the favorite brew of beer geeks anyway) and locally inspired specialty beers would allow Rock Bottom to remain relevant both in the local and national beer scenes.
I strongly believe in the role of brewpubs as local institutions that should provide unique offerings. However, I understand that a company now responsible for around 80,000 Bbls of beer per year (with plans to grow), must, like other large brewing companies, find ways to maximize the use of its resources. That said, more than 4 beers standardized across the company is a non-starter for me and shall also lead to me opting for other establishments,
However, to look at this abstractly: What is the inherent difference in the quality of an individual beer (if it is a well made and designed product), if it was produced by 5 brewers in a 100 Bbl system 3,000 miles away or 50 brewers in 10 Bbl systems scattered throughout the US? I know the latter is likely fresher. I also know very few people in either situation have creative control. Either way, before making decisions, I hope the new suits look at how Rock Bottoms barrelage numbers have held up in comparison to revenue at their restaurants over the past few years (which I’m sure took a hit like most restaurants during the downturn). Despite a brewery closing in Cleveland (a former haunt of mine long ago) they haven’t made that much less beer according to the BA. Whereas the Gordon Biersch production brewery is one of the few large micros to have been losing barrelage for 3 years running. Good beer but consistent German lagers aren’t what people are gravitating towards now. I guess we’ll see what happens.
I worked for Rock Bottom as a brewer for several years. We all made our own beer, for our own people. The most difficult thing to overcome was the standardization, the crappy artwork, and a corporate office full of wine drinking ‘marketers’. Nice to see a step in the ‘wronger’ direction. Total failure to see what is right.
SAVE THE ALES!
I like how Pliny says “and you can quote me,” and yet doesn’t sign his/her real name.
I’m taking a wait and see here. Writing of GB as irrelevant is silly and stinks of new craft-beer lovers who love whatever’s hip and/or boozy/hoppy.
Given the different approaches the two breweries have adopted while independent, it’s hardly surprising that they are going to have issues when they merge. I agree with the comments that this is a worrying development. It’s less about the specifics of 3-4 house beers, and more about what appears to be a concerted attempt to shift power from the brewers to the marketers.
All good points but at the end of the day, we are all consumers and we vote with our pocketbook(mugs). If you like the flavor and experience then go there, if you don’t – then don’t. The market will determine whether this business model survives or not. It is hard to imagine that it will survive here given all of our fantastic choices, but who knows about other cities. I have to tell you. In some of my travels I would have died for a homogenized Rock Bottom or Gordon Biersch as an alternative to Coors, Bud Light and Budweiser. It’s not like we live in a one brewery town! Creativity and freedom to brew and consume abounds. Go out here and get em!
Went to our local Rock Bottom last week. Changes already. They now charge $1 for each “taster” (which are now very slightly larger). Our waitress was not happy. She said they planned to completely change to menu to make it more like Gordon-Biersch’s. I find Gordon-Biersch’s menu pretty boring and their beers mostly mainstream.
My local RB – Bellevue, WA – moved to new Gordon Biersch style menu last week. Shows standard RB lineup will be 5 brews: Kolsch, Wit, Red, IPA, Dark + 1 rotating seasonal (out of 6). All local house brews are being offered “while they last”. Bellevue’s award-winning Hop Bomb IPA is being dropped. My blog has more.
I am a mug club member. 185 visits. I am very disturbed about the change in beer. I tried the new IPA, and Red beer. Couldn’t hardly finish them. I wont be going there as often. Also the happy hour isn’t so happy anymore. $1 off the beer,,,, big deal.
The Scottsdale Rock Bottom was closed in April. I was informed last night that the Ahwatukee Rock Bottom is closing June 25th. What the hell is going on?? Phoenix is being stripped of the few breweries that we have!! We need more breweries!! (I still miss Rio Salado. Tim Gossack, where are you?)
Who cares if these guys want to merge, just makes it all the more important to support the local guys, not the corporations.
Great question: where is Tim Gossack? I still dream of his brewing wonders at Rio Salado Brewing. I was just discussing Tim’s Kolsch with a guy at 4Peaks last night, it sure puts Sunbrew to shame. How can you forget Tim’s Helles Bock…. Tim, where are you, itching to start brewing in Phoenix again???
Speaking of Local, check out the new Nimbus Scottsdale branch – a lot more “scottsdalish” than the brewery in Tucson, but the $3 happy hour pints can’t be beat.