Why Don't More Large Craft Breweries Have Small Distro?

Discussion in 'Beer Talk' started by blivingston1985, Apr 11, 2013.

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  1. hopfenunmaltz

    hopfenunmaltz Pooh-Bah (2,647) Jun 8, 2005 Michigan
    Pooh-Bah

    You are correct.
     
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  2. BeastLU

    BeastLU Initiate (0) Dec 20, 2012 Virginia

    Money, cash, hoes.
     
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  3. tommyz

    tommyz Initiate (0) May 28, 2007 Michigan

    I can make the argument because you used FFF as something that "does it right" when that is not close to being accurate..
     
  4. willbm3

    willbm3 Initiate (0) Feb 19, 2010 Massachusetts

    Yes, but there's a difference between raking in profits hand over fist while cutting corners wherever possible and distributing your product at a profit margin that enables you business to grow and affords you a comfortable living. Not commenting on anyone's business practices...just pointing out that people who brew, whether it be homebrewers or commercial brewers want people to drink their beer. It's just that commercial brewers have the added incentive of making money off that
     
  5. kzoobrew

    kzoobrew Initiate (0) May 8, 2006 Michigan

    Agreed, but to your first point I do not think it is fair to say all brewers get into the business to expand their business as far as possible. There are many who prefer to stay more regionalized, still get their beer into the hands of many drinkers and not worry about this manifest destiny business model.
     
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  6. willbm3

    willbm3 Initiate (0) Feb 19, 2010 Massachusetts

    Didn't mean to imply expand as far as possible, but certainly to expand their base of customers. I think it's safe to say that most would like to at least get their product into a different state at some point. Of course everyone has their opinions about what's "regionalized." Is it 5 states? 10? 15?
     
  7. hopfenunmaltz

    hopfenunmaltz Pooh-Bah (2,647) Jun 8, 2005 Michigan
    Pooh-Bah

    I am a homebrewer that like it when folks drink my beer and like it, If I were to open a brewery it would be to make money. That would be by making as much beer as possible, vs. start up investment, cash flow, etc. I would not cut corners, my template would be a brewery like Sierra Nevada. You are correct that some are good with making a living at it, but I know guys who had to close because they did not make a profit.
     
  8. SFACRKnight

    SFACRKnight Grand Pooh-Bah (3,348) Jan 20, 2012 Colorado
    Pooh-Bah Trader

    Odell does this. They are an amazing brewery, and you can find their beers everywhere in their distro area. A limited release came out last Saturday and is already on most store shelves here locally.
    New belgium on the other hand, has expanded nationally. We have had issues here in denver where NB new releases are on the shelves out of state before they get distro locally because they use a two tier sku for LOF brews. Coloradans were waiting forever for super ipa to hit shelves because the sku they were using for super ipa was also the sku for the previously released brett beer. They have since fixed the issue, but it was pretty infuriating at the time.
    Goose Island burned us in CO as well, we were promised the entire GI lineup including BCBS and all its variants. Well they somehow underestimated the demand for their brews and CO got f'ed. Somehow thhat god forsaken idaho got BCBS though...
     
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  9. willbm3

    willbm3 Initiate (0) Feb 19, 2010 Massachusetts

    I imagine that happens to alot of people. It's a pretty crowded industry which is precisely why I don't think people get into the craft business for the purpose of raking in the profits. People get into it because they have a passion for beer and think they can make a living doing that. But yes, no matter how much you love beer, you can't run a brewery that doesn't make money.
     
  10. phillybeer7779

    phillybeer7779 Initiate (0) May 31, 2010 Pennsylvania

    New Glarus is a major exception. Their sales are almost completely driven by one beer (Spotted Cow) that most people on this site would turn their nose up to, but is a regional favorite. People on this site completely overrate the importance of "special" releases and their overall importance to the craft beer industry. Just because we obsess over them does not make us representative of the average craft beer drinker.
     
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  11. blivingston1985

    blivingston1985 Initiate (0) Jan 7, 2010 North Carolina

    Clearly you've never experienced a distributor refusing to release a beer because they still have a bunch of stock of the previous release. And are you saying a beer at and/or directly around one brewery on one cost will taste exactly the same as it will on another coast after being passed from brewery to truck to distributor warehouse to another truck to retailer on another coast? Fat Tire is my favorite example. I know it's not on anybody's top ten list, but I have had this out west. Here in NC it is a pale shadow of itself... Until the new brewery opens.
     
  12. LivingWeapon

    LivingWeapon Initiate (0) Oct 29, 2012 Illinois

    Weird...I live 30 minutes south of Chicago and any of the little liquor stores I go to tend to have a nice supply of Three Floyds (artic panzer wolf, alpha king, robert the bruce, rye da tiger, pride and joy, and whatever seasonal is out at the time is available all the time within walking distance). Guess I am lucky. And as for zombie dust I would never expect to see that as it is hard for them to keep around at the brewery.
     
  13. blivingston1985

    blivingston1985 Initiate (0) Jan 7, 2010 North Carolina

    Very good point.
     
  14. yemenmocha

    yemenmocha Grand Pooh-Bah (4,116) Jun 18, 2002 Arizona
    Pooh-Bah

    Right on that one. If we only had locals, I'd be happier in Utah FFS.
     
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  15. yemenmocha

    yemenmocha Grand Pooh-Bah (4,116) Jun 18, 2002 Arizona
    Pooh-Bah

    When Idaho gets a beer you don't, it's pretty much the middle finger...
     
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  16. cmoody91

    cmoody91 Initiate (0) Mar 21, 2010 Illinois

    Dear god. I wish you would use punctuation.
     
  17. blivingston1985

    blivingston1985 Initiate (0) Jan 7, 2010 North Carolina

    I am also happy that breweries distribute into other states. I don't know what I would do without my $12 twelve-pack of SN Torpedo or Pale. I just question why MORE breweries don't focus on saturating the markets they are in instead of expanding their range of distro as soon as they up their production.
     
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  18. Longstaff

    Longstaff Initiate (0) May 23, 2002 Massachusetts

    I've always wondered what drives privately owned businesses to want to keep expanding after they get to a certain level of success that provides them and their family with the life they want to live. Only thing I can think of is that its an ego thing.
     
  19. Longstaff

    Longstaff Initiate (0) May 23, 2002 Massachusetts

    Or those who can't sell even 7 bbls per batch in their home market that bring on a new state for distribution every few months. I guess we can only conclude that it is much easier to spread yourself thin over many markets than to really penetrate your home market. Is it sustainable over the long term though?
     
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  20. Stevedore

    Stevedore Grand Pooh-Bah (5,096) Nov 16, 2012 Oregon
    Pooh-Bah Trader

    In most cases (there are obvious exceptions), if you don't keep moving forward, you're moving backwards in relation to your competitors.
     
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