When should a brewery expand into new markets?

I am in San Diego therefore FFF, Founders, and Bells should immediately move operations here.

 

Wanna throw in Surly while yer at it? Mmm, Pounder cans...

 

How could I forget!

 

Maybe it's the desire for more revenue that drives the brewery to expand it's market. It's fundamental: grow, then expand. Too bad ambition doesn't get the best of more of us.

 

That's awesome! When is Founders coming here?

 

I think a brewery should do whatever they please, and whatever fills their plan for success. Just because a brewery fed first its local surroundings doesn't mean that local region can support their growing business. Imagine a brewery as a band, and then ask yourself, assuming you were in that band, would you be content being a local success, or do you want people all of the country listening to your music (eating your beer).

 

It's the same as stocks - diversify. When Apple is doing good you don't make it 100% of your portfolio.

 

Are the Founders main-line beer hard to come by? I don't think the supply of special release beers should be the measuring stick. If they can keep their year-round beers on the shelves throughout their distro area, that's really all that matters imho--heck, go with a two-tiered plan, with undersupplied beers limited to a smaller distro area. Here in Boston, there seems to be no shortage of Centennial, Porter, Red's Rye, etc.

 

To answer your question; No. There is the scenario in which their current markets are underperforming, so they explore new territory. Let's say sales are weak in NJ... do they give up? No, they ship less here and ship some to new markets. This much I am sure of.

 

Founders has never been able to satisfy their own states needs on seasonal or special releases especially on the SE side of Michigan but continues to stretch further out. This is exactly why I'll take a Dark Horse or Bells over Founders any day of the week. They may make good beer but I have never believed they gave two shits about their customers once they grew. Of course just my opinion but thankfully the only one I am concerned with when choosing where to spend my money.

 

Now I get it, you want ALL the Founders for yourself !!! Why didn't you just say so?!?

I can't say that I blame you one bit!

 

A brewery needs to do what makes the most business sense. Ideally that will coincide with satisfying local demand before expanding, but if for some reason it doesn't, the brewery needs to act in its own self-interest. Better to have not enough Founders beer getting to everyone who wants it than no Founders beer getting to anyone because of bad business decisions.

 

Is Founder's able to satisfy demand for their year round regulars in their current markets?
Is so, it's time to expand.

 

From what I hear the NJ distributor backorders and rations the year round beers quite often, and the Porter is a very rare commodity by me.

 

Bah, there goes all the extra KBS that was 'spose to be around next year. I knew it, knew it, knew it!