The truest characters of ignorance are vanity and pride and arrogance.

o-CRAFT-BREWERIES-570The culture of Gambrinus began to shift dramatically in the mid-1990s when the company was awarded the importing rights to Moosehead. This occurrence coincided with the dramatic growth of Corona and the grown of Shiner, also held by Gambrinus, outside of the Texas market.  Remember the importer had recently purchased Pete’s and would soon acquire Bridgeport Brewing in Portland.

Gambrinus’ demands on their employees created massive turnover, even to the point that employees celebrating a one year anniversary became an anomaly.  Staff began to feel they were nothing more than disposable assets.  Prospective employees would learn of the culture, often believing they could handle the pressure, however, within six months of hiring on with the company I would often hear: “I had no idea that it is this demanding!”

In the last several months, many longtime beer managers have been terminated by their craft/importing company without cause.  Most have 20+ years of experience in sales, marketing and chains.  Each helped their respective companies with dramatic growth and expansion.  Many of these managers believed they were used by their respective employers, and when the employer felt there was no additional value the manager could provide, they were terminated.

Even more recently, a former national director of chains, now representing brands as a hired gun, was interviewing with an east coast craft that had just expanded into Texas.  Once the company learned she had upcoming appointments with HEB and a large c-store chain, they actually approached her with the promise of a job offer if she could get their beer authorized by both retailers!  Obviously, she declined to do so.

It is puzzling why these companies continue to operate in such a fashion given the growth of crafts and the high demand for qualified key employees.  A cursory look at industry job websites, including Bevforce, reveals how many industry positions are available.

One of the individuals mentioned earlier was hired some years ago by an importer after he, and seven other prospective employees, were called to Washington DC for interviews.  All were given a case study and asked to create a chain presentation in one night.  Each gave their presentation the following morning and this particular individual clearly exhibited the most creativity and experience. The company recognized this individual’s capabilities, hired him and less than two year later, and released him without cause. What will they do now?

The explosion of crafts has created a paradigm in the industry.  This segments growth has two major issues:  quality of the liquid, and quality of the employees these breweries hire.

At some point in the future the craft segment will slow, stop expanding, and the breweries who have either compromised their quality or hired less qualified employees will find themselves in trouble.  Not unlike the Gambrinus castoffs, many of whom of went on to become successful leaders for other beer companies, these people will also move on to greatness.

The truest characteristics of ignorance are vanity, pride and arrogance!

 

 


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One response to “The truest characters of ignorance are vanity and pride and arrogance.”

  1. Brian Brophy Avatar
    Brian Brophy

    Your comments about Gambrinus are dead-on. I was recruited to open the Southeast Division Office in Atlanta in 1994. I was originally charged with managing 14 states, managing distributors that were already in place, opening the new office location in Atlanta, recruiting and hiring staff and field managers for the rapidly expanding Groupo Modello Brands. Because of the growth,new divisions were later created and the Atlanta Division was brought under control to a 6 state region.
    Many of the distributors that I inherited were of poor quality, because of expedient bad decisions made early on when Carlos Alverez when he established the network after he realized that he couldn’t handle the Corona Distribution through his distributorship “Circus” Distributing.
    During my tenure I was able to move the Gambrinus portfolio of brands to better distributors in select territories. I recruited and excellent staff of Distributor Reps that collectively worked together and worked hard to achieve the greatness that we did by overtaking the number 1 import brand Heineken. We were able to take a fragmented group of distributors and get them to work together presenting price promotions that were chain wide for the retail chains. This led to much greater chain wide price promotion, product and package placement, and and display activity
    By the year 2000, the Southeast Division led the Gambrinus company in all measurable categories on and off-premise – sales by brand and package, distribution by brand and package chain wide price promotion display participation by brand and package,
    I was proud of the success that we generated, proud of the field and staff personnel that I hired and proud of the participation fragmented the distributor network.
    In August of 2000, I was asked to resign, for no apparent reason. On a positive note they did offer me a one year severance package that included health care coverage.
    The truest characteristics of Carlos Alverez were vanity, pride and an over abundance of arrogance.

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