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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seems that the flagship beer can turn from a moneymaker to a dead weight as beers evolve and the flagship beer becomes outdated.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 9:57 pm to Jax-Tiger
quote:
Deschutes
Are they doing okay?
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 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 8:34 pm to Jax-Tiger
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.
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 on 5/17/19 at 5:40 am to Jax-Tiger
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 on 5/17/19 at 6:04 am to Jax-Tiger
So more breweries need to adopt an Urban South model, then.. they are constantly pumping out new beers
Posted on 5/17/19 at 6:26 am to Jax-Tiger
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 on 5/17/19 at 9:55 am to Jax-Tiger
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 on 5/17/19 at 12:22 pm to Jax-Tiger
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".
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 on 5/17/19 at 5:47 pm to Jax-Tiger
This has been clear as day in any true taproom.
Posted on 5/17/19 at 8:23 pm to Jax-Tiger
(no message)
This post was edited on 11/7/22 at 6:37 am
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