#craftbeerindustry Archives – PorchDrinking.com
Shifting Lanes: How Craft Breweries Are Changing Business Structures
July 8, 2024 | Julie Rhodes
Times are tough for craft beer. Once the darling of the tap walls and shelf sets, double-digit sales growth and taprooms springing up on every street corner like that green and white coffee giant. Things seemed like good times would never end, but every party has a pooper, and 2024 is looking like one of the most brutal years so far for craft brewery brands since 2020.
Highs and Lows of the 2024 Craft Brewers Conference
May 7, 2024 | Julie Rhodes
With more curves than a Bart Watson data chart, the 2024 Craft Brewers Conference in Las Vegas did not disappoint for the 9,000-plus attendees who braved the lights and sounds of The Venetian Expo Center and cacophony of Phish fans pouring into The Sphere. (Talk about fantastic people watching!) The conference provided a sanctuary for industry professionals to discuss the myriad challenges and emerging opportunities within the craft brewing world.
Distribution Dilemma: Is It Worth the Risk?
December 21, 2023 | Julie Rhodes
Craft brewery expansion plans are not what they used to be. Traditional paths to profitability usually go something like this: open a taproom, start selling beer to a few neighboring businesses (if that’s legal in your state), buy a packaging line, grow your footprint locally, sign a distribution contract with a wholesaler, expand to new markets and enjoy copious amounts of revenue. But this isn’t 2013 anymore.
Rough Draft: Challenges In On-Premise Craft Beer Sales
October 4, 2023 | Julie Rhodes
Amongst the revelry of craft beer fans that descended upon Denver in late September for the annual Great American Beer Festival, a smaller group of beer enthusiasts gathered at Cervantes Masterpiece in Five Points for the last Brewbound BrewTalks industry event of 2023. While GABF is mainly a consumer-facing event, there are a small number of industry insider, business-focused events that occur that same week and BrewTalks is one of them.
Together Is Not Always Better: How Consolidation In the Middle Tier Is Impacting The Future of Craft Beer Brands
April 28, 2023 | Julie Rhodes 1
For most craft breweries, the trajectory of brand growth follows a somewhat traditional path – starting with taproom sales, progressing to selling in the wholesale channel, and then alignment with a beer wholesaler to grow the distribution footprint. Sounds simple enough on paper, but if you drill down into the nuances of selling beer wholesale, things get complicated very quickly. The US is unlike any other country in the world when it comes to the three-tier alcohol distribution system. Some states do not allow suppliers to self-distribute (sell directly) their products to licensed retail accounts, yielding asinine practices like selling beer to yourself for your own taproom. Some states are also dubbed “franchise” law states where if your brand aligns with a distributor you must endure a contractual arrangement that makes changing distributor partners harder than selling beachfront property in Arizona. And we haven’t even begun to address the large big beer elephant in the room and how many large beer distribution houses are aligned with one of two big players in the US beer market. For many craft brands that are just getting started or fall into the category of small to medium-sized producers, strategizing how to enter the wholesale channel is a formidable challenge, including contending with a host of other legislative, litigious, and anti-competitive issues in the middle tier that have surfaced over the past few decades. As if growing craft beer producers didn’t have enough to contend with these days in the form of rising costs of goods, labor shortages, inflation, and the squeeze from alternative beverage choices in the marketplace, woes like wholesaler consolidation, unfair trade practices, and antiquated beverage alcohol regulations are making the middle tier the next big battleground for craft beer brands.
No Big Deal: Why Craft Brewery M&A’s Have Lost Their Shock Value
April 5, 2023 | Julie Rhodes 1
Goose Island, Bluepoint, Boulevard, Sweetwater, Founders, Wicked Weed, Anchor, Oskar Blues, Lagunitas, Dogfish Head, Ballast Point, Cigar City, Modern Times, Stone, Bell’s, and most recently Avery Brewing – not a comprehensive list by any means, but just a sampling of formerly independent craft breweries that merged with or were acquired by larger parent companies over roughly the past decade. The difference between now and then is that craft brewery M&A’s are just not that big of a deal anymore. Back then, craft beer drinkers and superfans would be up in arms over a buyout or partnership deal of any size – suggesting boycotts, bashing brands online, and protesting festivals where “sellout” breweries would be pouring their liquid. Today, that’s not quite the case, with deals like the Bell’s and New Belgium merger or the acquisition of Avery Brewing by import giant Mahou San Miguel barely sparking a peep of controversy online. So what’s changed – the craft beer fan or the business of craft beer?
You Can’t Spell Union Without U and I
January 27, 2023 | Julie Rhodes
On January 17th, 2023, the nearly 100 current employees of Creature Comforts Brewing in Athens, GA filed a petition with the National Labor Relations Board (NLRB) to unionize under a brand new independent labor banner — BUG or the Brewery Union of Georgia. This does not mean that Creature Comforts has officially unionized their labor force, as a formal election process amongst employees must take place to solidify the new structure and then head to the bargaining table, but BUG organizers are optimistic about the vote. The discussion about unionization began earlier last summer and progressed quickly as many employees cited feeling neglected, overburdened, and unsupported by upper management, who have been busy planning the expansion of a new Creature Comforts facility in Los Angeles. BUG also believes that unionization embraces Creature Comforts’ overarching company values such as ‘“existing to foster human connection” and “building a balanced team of authentic and professional individuals.”
The ROI of the Great American Beer Festival
October 10, 2022 | Julie Rhodes
The 40th anniversary of the Great American Beer Festival marks the first time the event has been held in person and open to the public since 2019. To say that brewers and craft beer fans are excited is an extreme understatement. While participation and attendance were limited this year due to renovations to the Colorado Convention Center, the exhibitor floor was still packed with over 200 suppliers and drew over 10,000 fans to the event.
Is Craft Beer Recession-Proof?
August 15, 2022 | Julie Rhodes
Yes, but also no. How’s that for a definitive answer? The intricacies of why craft beer dances between recession-proof and recession-resistant are many, but the first step in answering this complex question is to analyze the underbelly of what a recession actually is, how it affects the alcohol industry overall, and what that means for craft brewery owners and operators. Taking a look at factors like consumer behavior, unemployment rates, gas prices, syndicated retail sales data, beer supply, and market seasonality all contribute to how craft beer will fare during times of economic duress. Earning its chops as a multi-billion dollar consumer packaged goods industry over the past decade, craft beer can simply not afford to overlook a downturned economy as something that will not affect bottom lines.
Sold! Sapporo USA Buys Stone Brewing
June 24, 2022 | Julie Rhodes
Friday, June 24th, 2022 will forever go down in the craft beer history tomes as the day that the fiercely independent, “loud and proud” antithesis to “fizzy yellow beer,” Stone Brewing, was purchased in its entirety by the internationally famous for “fizzy yellow beer” conglomerate, Sapporo USA. As malt enthusiasts rose from their slumber and checked their social media feeds, widespread media coverage of the buyout hit the wires at about 3:00 am on this morning. For anyone who has followed the business side of the craft beer industry for the last couple of decades, this was no surprise.
The BA Publishes the 2021 Craft Beer Industry Review
June 1, 2022 | Julie Rhodes
Every year, the Brewers Association publishes its Industry Review issue of The New Brewer magazine, which gives craft beer industry members a snapshot of how each brewery segment of the industry has performed over the past year in terms of production and sales levels. This edition never fails to disappoint with a plethora of juicy statistics for beer data nerds to chew on and brewery ownership to postulate about the future of the craft beer market landscape. This year was not without its share of surprises, with the likes of a non-alcoholic beer brand entering the mix and even more appearances by well-known breweries now functioning as “beverage” companies enjoying success with products that go beyond the typical ale or lager. And while that sexy 8% overall segment growth rate gets industry folks all excited, it’s not without some fine print. It’s one thing to take these rankings on the nose and pass judgment on where the craft beer industry is heading, but there are some really interesting finds in this data if you learn to read between the lines.
The Return on Investment of CBC 2022
May 24, 2022 | Julie Rhodes
For a vast number of current and aspiring beer professionals, the annual Craft Brewers Conference hosted by the Brewers Association is THE go-to industry conference for all things beer-related. It’s four full days of seminars, workshops, and social networking events, plus a seemingly endless trade show floor ripe with vendors enthusiastically waiting to sell you everything from gaskets and exotic hops to insurance and glycol systems. Most attendees return home with swag bags full of branded goodies and heads full of ideas. But what’s the true return on investment (ROI) of attending the Craft Brewers Conference when it comes to growing the bottom line of your brewery business? If you or your team didn’t attend the conference, this will give you some insight into what was missed and for those that did attend, some ideas for how to revisit sessions and take advantage of all that was offered to help you optimize the business side of your brewery.
State of the Craft Beer Industry Report
April 13, 2022 | Julie Rhodes
After surviving a dismal Q1 of 2022, the craft beer industry can finally breathe a sigh of relief and look forward to more sunny skies for the remainder of 2022. A recent smattering of craft beer industry updates from trade associations, allied trade partners, and data aggregates are providing craft breweries more light at the end of their pandemic market tunnel. The general consensus is optimistic, whether it’s Bart Watson from the Brewers Association relaying his confidence about 2022 for craft brewers or 76% of craft brewers themselves waxing positive about sales growth this year in the 2022 Brewing Growth Trends Report from Arryved. It’s time to break out your sunglasses beer folks, let’s take a look at the brighter state of the craft beer industry (with some occasional clouds) heading into the remainder of 2022.
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