Victory Dirt Wolf - Why 4-packs??

"DUCY?" NOPE!

Cheers!

 

I would suggest that 4 packs versus 6 packs would result in an overall decrease in the number of bottles of beer sold by a brewery. Thinking about our shared market (PA), if a customer walks into Whole Foods to buy a "six pack" of beer and sees a 4 pack of DirtWolf, then they are going to most likely buy a single 4 pack and likely will not buy a second 4 pack. It take 6 consumers to buy a case (in 4 packs) versus 4 consumers to buy a case (in 6 packs). More variables and decisions enter the equation for the consumer.

Again being PA specific, I would further suggest that Victory may actually lose sales due to the 4 pack format. I could not personally pay $9.99 for a 4 pack of DirtWolf when I could get a 4 pack of Double Simcoe for $9.99. The case price of Double Simcoe is a good bit higher than DirtWold, thus the 4 pack average unit cost is closer to the case price creating a perceived value in my mind.

I do wonder if Victory (an other breweries) have a different wholesale cost for cases which do not contain the 4 pack holders? When I get a case of DirtWolf at a distributor it has those 24 bottles separated by cheap cardboard dividers versus actual 4 pack holders. Clearly the cost for Victory would be marginally (very marginally) less expensive for the case dividers versus 4 pack holders. I wonder if the "packaged for individual resell" costs stores more?

 

What does it matter if it comes in 4PK or 6PK?! If you're that concerned about maybe paying an extra 50 cents a bottle, perhaps you'd be better served purchasing a 40 of O.E. 800.

 

There are additional taxes levied on take-out beer sales above the excise and sales taxes you list above, and there is no differentiation made between take-out beer sold at a bar, and take-out beer sold at a bottle shop. In Philadelphia, the tax rate is 17%, which retailers smartly figure into the price of the beer, rather than hit you with 25%+ in taxes at the register. An additional 17% tax is quite a bit higher than any rates in NJ, no?

 

Yeah, now you just need the new wifey to let you out of the house!!!

 

Dirt Wolf is $8.99 a 4 pack everywhere here. It is more or less in line with Hop Wallop's price (~$12-13 a 6 pack)

 

Like Jack said the Wegman's in King of Prussia sells them for $9.99 a four pack...that's about $20 higher than our case price (fyi we are lower than the $43.99 price mentioned above-shameless plug)...grab some buddies and split a case wherever you can get one...well worth it...Dirt Wolf is amazing!

 

There is in fact a difference in wholesale case prices between cases divided into six packs (higher) or not...usually a few dollars. But FYI...I will tell you in PA many bottle shops operate at 50% or higher margin on individual craft beer bottles and six packs...get your friends together and buy cases and then split them up amongst yourselves...much cheaper

 

My understanding of the Johnstown Flood Tax is that it only applies to liquor or wine. Does anybody know differently (for a fact)?

“What is the Johnstown Flood Tax?
The Johnstown Flood Tax is an 18% tax on all wine and liquor sales in the state of Pennsylvania. It is a "hidden" tax that is not printed on any receipt of purchase.”

Above is from:http://johnstownfloodtax.com/

Cheers!

 

Great link...thanks Jack

 

The Johnstown Flood Tax does apply only to liquor and wine. The sales tax imposed on take-home beer purchases is a different thing.

 

Hopefully somebody well versed in the PA sales tax code will chime in. I did a web search of “PA sales tax imposed on take-home beer purchases” and I was unable to come up with details.

Cheers!

 

This tax is new to me...I can tell you it's not levied on us when we buy it wholesale...nor do we add any other taxes other than the mandated 6%...it could be Philly thing? But Philly prices are around the same prices as out here...I know a few guys who run bottle shops and they have never mentioned these taxes...

 

I agree with that sentiment exactly however I believe it applies to many distributorships as well. They are ok with razor thin margins on Bud Lite, however a lot of them will mark up craft beer by 50%. As a case distributor, what do you think will happen with overall beer prices is/should the "Sheetz" legislation get through? While I don't agree with current PA distro laws I do believe that this potential change will drive the cost of cases up while decreasing full case availability. That part I would not look forward to.

 

The margins on BMC aren't necessarily razor thin...those breweries often mark down the price of their beer to wholesale distributors who then often pass that on to the retail stores...that is why they are frequently on sale. As far as craft beer...yes many retail case stores greatly exaggerate their mark ups...I have not seen 50% mind you...but I have seen damn close. Especially on limited release beers like Mad Elf, Hopslam, etc... I suggest shopping around and be willing to drive if you live in area where there isn't a lot of retail case stores.

As far as the law is concerned...it's so hard to say what that will look like in its final iteration...in general though increased competition usually means savings for the consumer...in fact depending how that law ends up...you could make out better as a consumer ironically it could destroy your local case stores like ours if Sams Club starts selling cases. Or it could also be a boon to us if we can start to sell sixers and bottles because we could operate on smaller margins and triple our customer base. Long story short who knows?

I will say that the current three tier system effects beer prices the most. The brewer sells to a wholesale distributor who has EXCLUSIVE rights to a territory, and then retail stores like us sell it to you. For example brewery sells it to wholesaler for $1, and wholesalers sells it to us for ?... $1.50? $2.00? $5.00? Then we have to mark up on top of that markup. Typical business kind of thing right? Well here is where it gets funky. Wholesale distributor A sells a particular beer to his retail distributor clients (us) for $2 but Wholesale distributor B may sell it to his retail clients for $1.50...but I can't buy it from the cheaper wholesaler because they do not have the rights to sell it in our county. That gives the wholesaler a lot of influence over the price of a beer.

I do not believe any of my wholesalers are gouging or unscrupulous...but some competition within that process would certainly effect prices for the better for you the consumer.

 

I would be happier to see more of it here in MI, regardless of packaging.

 

Thanks for you industry insights on that matter, KOP_Beer_OUtlet.

 

No problem there, its work and everything else. Sure wish I could go for black friday with you guys, looks like 4- elf is out too