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Future of Craft Beer
Posted on 5/15/19 at 6:41 pm
Posted on 5/15/19 at 6:41 pm
Breweries that depend on a "flagship" beer(s) are struggling. The future seems to be in smaller, more nimble breweries. The conventional wisdom is that the "flagship" beer pays the bills and is necessary for the long term success of breweries. Now, it seems that the flagship beer can turn from a moneymaker to a dead weight as beers evolve and the flagship beer becomes outdated.
Craft Beer Bubble
Basically, craft beer is still growing in terms of market share and total beer sold and the number of breweries is still growing. However, the breweries that are going out of business are the larger, more established breweries, not just the crappy local breweries that never figured out how to make good beer.
quote:
"There are definitely challenges breweries are facing now that they didn't have to 10 years ago," Alworth said. "There's a real challenge in trying to maintain interest in a brand over a period of time." He said when some of the original Portland breweries got their start, it was all about the flagship brand: one beer that would make a name for the brewery. "When craft beer started, everything was about building the flagship brand. Widmer Hefe, MacTarnahan's Amber, Full Sail Amber Ale, Deschutes Black Butte Porter," he explained. "Now, we have one of the most educated consumer bases in the world and they know what all these different beers are. They know what a porter is, they know what an IPA is, they know what a saison is and they're not looking for something familiar, they're looking for what's new. If you're a brewery? You've spent all this time trying to build the flagship, and they don't want the flagship."
Craft Beer Bubble
Basically, craft beer is still growing in terms of market share and total beer sold and the number of breweries is still growing. However, the breweries that are going out of business are the larger, more established breweries, not just the crappy local breweries that never figured out how to make good beer.
This post was edited on 5/15/19 at 6:44 pm
Posted on 5/15/19 at 6:42 pm to Jax-Tiger
quote:
Breweries that depend on a "flagship" beer(s) are struggling
This sums up where the beer industry is right now. If you are not able to pump out new, exciting things on a regular basis, you're pretty much screwed
Posted on 5/15/19 at 6:44 pm to Jax-Tiger
Nah just DDH the flagship, baw.
But it makes sense. So many places are putting out great beer so you need new and different as much as possible.
But it makes sense. So many places are putting out great beer so you need new and different as much as possible.
Posted on 5/15/19 at 8:30 pm to LSUcdro
quote:
. If you are not able to pump out new, exciting things on a regular basis, you're pretty much screwed
Sums up most consumer based business categories. There is a old saying....Innovate or die. If Apple was still selling the iPhone 3 they would be dead.
This post was edited on 5/15/19 at 8:32 pm
Posted on 5/15/19 at 9:41 pm to Zappas Stache
quote:
There is a old saying....Innovate or die
"Any company that's not growing is in slow motion liquidation."
Ed Bastian, Delta CEO
This post was edited on 5/15/19 at 9:43 pm
Posted on 5/15/19 at 9:57 pm to Jax-Tiger
quote:
Deschutes
Are they doing okay?
Posted on 5/15/19 at 10:15 pm to GentleJackJones
quote:
quote:
Deschutes
Are they doing okay?
I don't know how they are doing. Deschutes is old school, and doesn't get a lot of love from the local taprooms. It will be interesting to see if they have to adjust to stay in business.
Having said that, Deschutes is much more innovative than Widmer and Bridgeport were. They always have some good one off beers on tap at their brewpubs. I know that doesn't make it to the rest of the 37 or so states they distribute to.
Posted on 5/15/19 at 11:19 pm to Jax-Tiger
The future is smaller neighborhood breweries that do light distribution or none at all plus the regional giants like a Parish, Gnarley Barley, etc
Every time I go to the grocery or liquor store I can’t help but notice the massive amount of shelf turds around. I can’t imagine that’s profitable long term
Every time I go to the grocery or liquor store I can’t help but notice the massive amount of shelf turds around. I can’t imagine that’s profitable long term
Posted on 5/16/19 at 7:46 am to NIH
quote:
The future is smaller neighborhood breweries that do light distribution or none at all plus the regional giants like a Parish, Gnarley Barley, etc
This is where its going. My favorite brewery is Fischer Brewery in Salt Lake City, UT. They have no distribution. None. It is a local watering hole that happens to make their own water. It was packed every night we went. The owner wanted it to be exactly what it is: a community gathering place (an American beer garden). They had an outdoor meeting space that was free to any group needing the space. Taps always rotated, but they had one or two anchor brews.
Posted on 5/16/19 at 7:56 am to LSUcdro
quote:
If you are not able to pump out the same generic hazy IPA on a regular basis, you're pretty much screwed
Ohhh, but this IPA has Motueka hops and the last one had Mosaic. So much difference.
Posted on 5/16/19 at 8:31 am to LSUcdro
quote:yea but people will always have their go to drinking beer.
If you are not able to pump out new, exciting things on a regular basis, you're pretty much screwed
I love all different styles but I think the fad of trying to put everything under the sun will subside at some point.
Posted on 5/16/19 at 8:43 am to GentleJackJones
quote:
Deschutes
Are they doing okay?
I'm from Oregon, but now live on the East Coast and am always looking for Oregon beers. Deschutes has expanded their distribution here significantly. I see it regularly around the DC area and they opened up a brewery and distrubiton facility in Roanoke VA.
I think there will be a lot of consolidation in midsized breweries like that, however.
This post was edited on 5/16/19 at 8:44 am
Posted on 5/16/19 at 10:00 am to Aubie Spr96
quote:
This is where its going. My favorite brewery is Fischer Brewery in Salt Lake City, UT. They have no distribution. None. It is a local watering hole that happens to make their own water. It was packed every night we went. The owner wanted it to be exactly what it is: a community gathering place (an American beer garden). They had an outdoor meeting space that was free to any group needing the space. Taps always rotated, but they had one or two anchor brews.
This is what we've been saying for a couple of years. The market for breweries to explode on the scene and make tons of money is dwindling, I suspect. But the market for American beer garden/pub concepts is steady. It helps that there are so many of these in places where everyday bars and pubs were not a historic mainstay in a community (southeast, Texas, west).
Posted on 5/16/19 at 2:57 pm to NIH
quote:
Every time I go to the grocery or liquor store I can’t help but notice the massive amount of shelf turds around. I can’t imagine that’s profitable long term
You aren’t lying about that, especially in the land of the Bud Light drinkers. Last week I saw two six packs of Holy Roller at Winn Dixie with a 2018 date.
Posted on 5/16/19 at 3:16 pm to gizmothepug
quote:
You aren’t lying about that, especially in the land of the Bud Light drinkers. Last week I saw two six packs of Holy Roller at Winn Dixie with a 2018 date.
Yeah, but that’s crafts market share. They are chipping away at the macros, and now it seems the smaller micros are chipping away from the larger craft guys. It’ll stabilize one day but it will take awhile.
Posted on 5/16/19 at 3:19 pm to BugAC
quote:
It’ll stabilize one day but it will take awhile.
I don’t disagree with you. I’ve just heard this same exact thing since 2011. You have to wonder at one point is a while?
Posted on 5/16/19 at 3:23 pm to Jax-Tiger
The craft beer world is definitely a what have you done for me lately world. I try not to get too caught up in that aspect, but still do. Two Hearted Ale is, IMO, the most perfect beer ever made, but I'll go months without buying any because I get into the trap of buying newer, small batch beers.
Posted on 5/16/19 at 3:25 pm to LSUcdro
quote:Tell that to parish. Unless it's a $30 collab, they havent put out anything new in over a year. Double dry hopping an existing beer does not count.
This sums up where the beer industry is right now. If you are not able to pump out new, exciting things on a regular basis, you're pretty much screwed
Posted on 5/16/19 at 6:19 pm to Aubie Spr96
quote:
My favorite brewery is Fischer Brewery in Salt Lake City, UT. They have no distribution. None. It is a local watering hole that happens to make their own water.
It's so easy to can these days, but there are some really successful breweries out here that don't package their beer, but distribute kegs (Boneyard, Barley Brown's). There are also some that don't regularly distribute, but do can beers for takeout (Great Notion, McMenamin's).
I think both of those models work well at getting the beer in the hands of the customers, because you won't get stuff sitting on the shelves at Trader Joe's for a year and a half.
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