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Message
re: Future of Craft Beer
Posted on 5/16/19 at 8:34 pm to Jax-Tiger
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.
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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 9:38 am to Johnpettigrew
quote:
Just don’t know how long people will be wanting to pay $14 a 4 pack
In a year or so folks will be wishing for $14 4 packs.
Luckily we don't get gouged as much in the PAC NW.
This post was edited on 5/17/19 at 9:39 am
Posted on 5/17/19 at 9:46 am to Hulkklogan
quote:
So more breweries need to adopt an Urban South model, then.. they are constantly pumping out new beers
This isn't the Urban SOuth model... This has been going on in other parts of the country for a while now.
NOLA has been doing it as of late too
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 10:58 am to Hulkklogan
quote:
So more breweries need to adopt an Urban South model, then.. they are constantly pumping out new beers
I am torn on this.
I love trying new things but lately I've overpaid for some Urban 4-packs that have been flat out average. It irks me how expensive they are.
Then when I buy a 4 or 6-pack that I really like, and is worth the cost, I may not see that beer again for 6 months.
Posted on 5/17/19 at 11:13 am to LSUrme
Can't remember the last time I even considered buying a six pack of Fat Tire, Abita Amber, Shiner Bock, or even Parish Canebrake.
Posted on 5/17/19 at 11:19 am to LSUintheNW
quote:
In a year or so folks will be wishing for $14 4 packs.
Luckily we don't get gouged as much in the PAC NW.
We have a lot more competition. Breweries that aren't putting out new and interesting stuff are the ones hurting - that includes the big boys who are contractually obligated to make x amount of outdated styles of beer. There is so much new and interesting stuff that unless you are Great Notion (most of their distro gets traded out of state), then $14 is about what you pay for top tier DIPA.
I think this is a case for self distro. You would probably see a lot more business in the local taprooms in markets that have self distro where a brewer can send their extra kegs to local taprooms that love to get different beers rotating through on tap. It is good for the brewers, good for the taprooms, and good for the beer consumers.
Wiltz, I agree with your assessment on breweries depending 90% on packaging distro. I spoke with a local brewer about this subject, exactly. That is why so many local breweries do not package their beers and sign with a distrbutor. They brew and sell as much as they can in the brewpub and then self distribute what they can't sell.
Posted on 5/17/19 at 11:23 am to BugAC
quote:
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.
This.
It is slowly transforming into 3 tiers
- Large macro-brewery with distro across entire regions of the country, some across the entire country.
- Craft breweries with state-wide distro plus some. Main revenue source is distro, but still small enough to have brewery-only release stuff.
- True micro-breweries. Sales are almost 100% on-site with the exception of sending some kegs to bars in the area.... Except I get the feeling LA laws are preventing the smallest tier from existing here.
Posted on 5/17/19 at 11:31 am to LSUrme
quote:
I love trying new things but lately I've overpaid for some Urban 4-packs that have been flat out average. It irks me how expensive they are. Then when I buy a 4 or 6-pack that I really like, and is worth the cost, I may not see that beer again for 6 months.
For a while, I liked everything Urban South put out but due to all the variety there are plenty of their beers that are just not my thing. Now I generally swing by Urban South, NOLA and other places directly, try their beer with a taste at the bar and then buy 4 packs or crowlers of just what I like a lot. Too much good beer to just grab a 4 or 6 pack blind from the grocery store. My normal, grass cutting or pool floating beer is Holy Roller or Jucifer. Everything else in the fridge is beer I was looking for or has just been released at the brewery. I am spoiled, but I also spend A LOT more on beer than I did 5 years ago.
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 12:26 pm to Johnpettigrew
quote:
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.
Indeed they are, and I agree with the second part of this statement. I used to trade a lot and had to cut back after looking at a few months of beer purchases and FedEx costs. Plus, we just started getting way better beer regularly in Louisiana.
However, now I feel like I'm seeing prices go even higher. The SoPro Thank You I got was $16.89 plus tax. Two years ago I would have bought a half-case, but now I'm seeing myself just splitting 4 and 6 packs just try try with friends.
The game also changes when beers like Jucifer are readily available at $8.99 a 6-pack.
Posted on 5/17/19 at 12:28 pm to Loungefly85
My co-workers and I were JUST discussing South Coast yesterday. I'm not sure I've ever seen anyone ordering one at a bar or holding one in a grocery store.
Posted on 5/17/19 at 12:29 pm to LSUrme
Constant new beers means changing small subtle ingredients in the older beers that are not out at the moment. Then coming up with a new creative quirky name and label design. This is how they sell 90% of product
Posted on 5/17/19 at 12:32 pm to LSUrme
As long as Eureka Heights keeps putting fresh Mini Bawce on the shelves, I’m happy. That’s been my go-to. $10.49 for a 6 pack.
Just need them or someone else to start putting out a DIPA version of that out at my neighborhood grocier. Unless the local breweries start opening at Noon during the workweek, I honestly just don’t have time on weekends to mess with going there to pick up 4 and 6 packs.
Just need them or someone else to start putting out a DIPA version of that out at my neighborhood grocier. Unless the local breweries start opening at Noon during the workweek, I honestly just don’t have time on weekends to mess with going there to pick up 4 and 6 packs.
Posted on 5/17/19 at 1:21 pm to LSUcdro
quote:
This isn't the Urban SOuth model... This has been going on in other parts of the country for a while now.
NOLA has been doing it as of late too
I wasn't trying to literally credit Urban South as the inventor of this model, but just calling it the Urban South model because I don't have a real name for it.
Posted on 5/17/19 at 1:34 pm to LSUrme
quote:
The game also changes when beers like Jucifer are readily available at $8.99 a 6-pack.
Where are you shopping that Jucifer is $9/6-pack?
Posted on 5/17/19 at 1:53 pm to LSUrme
quote:
South Coast
Had to look this up since I'm in Alabama and see it's an Amber Ale. Was going to compare it to one of the local beers - Cahaba Brewing's Blonde Ale. It's the top selling craft beer in Bham, and I rarely, if ever, seen anyone drinking it. But it's popular because it's the most accessible of the Bham craft beers to people that don't like the hoppy IPAs or big stouts. Amber Ales have their niche, so I'd be curious how it ranks in Parish Brewing's sales.
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