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Future of Craft Beer

Posted on 5/15/19 at 6:41 pm
Posted by Jax-Tiger
Port Saint Lucie, FL
Member since Jan 2005
24926 posts
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seems that the flagship beer can turn from a moneymaker to a dead weight as beers evolve and the flagship beer becomes outdated.

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 by LSUcdro
Republic of West Florida
Member since Sep 2009
11176 posts
Posted on 5/15/19 at 6:42 pm to
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 by TH03
Mogadishu
Member since Dec 2008
171114 posts
Posted on 5/15/19 at 6:44 pm to
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.
Posted by GentleJackJones
Member since Mar 2019
4240 posts
Posted on 5/15/19 at 9:57 pm to
quote:

Deschutes


Are they doing okay?
Posted by NIH
Member since Aug 2008
112943 posts
Posted on 5/15/19 at 11:19 pm to
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
Posted by The Spleen
Member since Dec 2010
38865 posts
Posted on 5/16/19 at 3:23 pm to
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 by wiltznucs
Apollo Beach, FL
Member since Sep 2005
8978 posts
Posted on 5/16/19 at 8:34 pm to
There are certainly some alarming signs in craft; but, it does seem to be a bit regional. The most crowded markets seem to be bearing the brunt of it.

Here in FL fighting it out for shelf space is fierce. We also know some distributors and retailers are looking to reduce their craft beer selections. One major retailer has gone on the record and said they’ll reduce their craft beer section by 50% by years end. It’s not uncommon to see dusty bottles that are 3-5 years old on the shelf. No business wants to sit on a depreciating asset. Really no surprise.

If you are a Brewery doing 90% of your sales via distro this seems like a potential death knell.

What I find most interesting is how the consumer has impacted things. It would appear the customer is a bit fickle. The ticker phenomenon perhaps. As an example, recently Maine IPA hit the shelves here in FL. A great beer by most accounts. Not that long ago, people clamored for those cans. Fast forward a few years and they sat for a while before selling out. It would seem in some cases that the consumer is more interested in new experiences, even if the new beer is inferior to the first.
Posted by Johnpettigrew
Louisiana
Member since Sep 2017
1633 posts
Posted on 5/17/19 at 5:40 am to
Explains why So Pro is killing it at the moment. New beers every month. Just don’t know how long people will be wanting to pay $14 a 4 pack or $9 a pint at a bar.
Posted by Hulkklogan
Baton Rouge, LA
Member since Oct 2010
43317 posts
Posted on 5/17/19 at 6:04 am to
So more breweries need to adopt an Urban South model, then.. they are constantly pumping out new beers
Posted by LSU fan 246
Member since Oct 2005
90567 posts
Posted on 5/17/19 at 6:26 am to
quote:



Craft Beer Bubble


It's happening as we speak.

The amount of beer that sits on shelves is getting out of hand. One small aspect of this might be that the turds are turning away potential new customers. Some guy wants to try craft beer, grabs Art Car from 9 months ago, and thinks it tastes like shite. Back to Ultra
Posted by SUB
Member since Jan 2001
Member since Jan 2009
21104 posts
Posted on 5/17/19 at 9:55 am to
I honestly don't understand how most of these breweries are making money. We went from a few craft breweries to too many to choose from. Who is drinking all their beer to keep them afloat?
Posted by Loungefly85
Lafayette
Member since Jul 2016
7930 posts
Posted on 5/17/19 at 12:22 pm to
Does anybody drink, or know anybody who drinks, South Coast?

I've seen people drink Canebreak fairly regularly and it has its fans for some reason, but I've never seen anybody be like "aw man, gotta get that South Coast for tonight".
Posted by ThanosIsADemocrat
The Garden
Member since May 2018
9395 posts
Posted on 5/17/19 at 5:47 pm to
This has been clear as day in any true taproom.
Posted by jivy26
Member since Nov 2008
2769 posts
Posted on 5/17/19 at 8:23 pm to
(no message)
This post was edited on 11/7/22 at 6:37 am
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