A question regarding "boutique" beers/breweries

I too, as a homebrewer, have contemplated this while also contemplating opening a nano brewery. I actually discussed this with a friend last night (he approached the idea) why can't you just make a few specialty barrel aged beers and that is the focus. I think it is doable but one would actually have to dive in to see if the results are promising. Yes the Ale Apothecary is doing it and doing it well. I believe they would be the best example so far.

 

Fine, replace "national" with "across several large regions of the nation encompassing tens of millions of people." I don't think pedantry makes for much of a counterpoint. These brands grew in large part because they established themselves in many places before there was a decent local alternative. I think a large percentage of beer drinkers will choose to drink local if given a good local alternative, and far more of those alternatives will exist in the future.

 

I think the reason that a KBS or a Hopslam sells out is the "have to buy it now" aspect of the beers in that if you wait you'll miss out. Whereas something like Brooklyn Lager is plentiful and people don't have to wait in a line for it.

 

What i hope isn't lost is that Paul from Ale Apothecary spent a long time brewing for Deschuttes where he was given the freedom to experiment on another organizations dime. Much less risk when you have that opportunity.

 

It may have been pedantic, but it was correct.

Many of the small local places don't make excellent beer with quality assurance. There are the exceptions. Around here I do try the small locals, and often go back to a regional for better beer.

 

It's also not incorrect to say that Bell's and Founders are national brands. They have a national following among craft beer drinkers, even if they don't distribute to every state in the nation.

As for inferior local breweries - that's now. 10 or 20 years from now, it seems very likely to me that many more places will have local breweries supplying local markets with product every bit as good as the staples from places like Bell's and Founders, considering that hundreds of new breweries are opening every year. I mean, let's be honest - there's nothing special about Oberon or All Day IPA. These may not be beers you regularly drink, but they make up a large portion of sales for those 2 breweries. As more local breweries around their distribution footprints start making quality pale ales and wheat beers that are accessible, the sales of those two beers will go down. Maybe not enough to bankrupt them, but surely enough to make them rethink how much of those beers they produce. In fact, a true accounting of beer sales vs. production now would probably reveal this is already happening, judging by the stupid amount of out-of-market beer that rots on the shelves of mega-retailers.

I think there will be a lot of loser locals who open up only to close down, but the cream will rise as it always does, and I think it is being proven time and time again all over the country that a local brewery making quality beer is a sustainable business, even if it doesn't expand beyond local distribution. That spells big trouble for all the mid-size brewers. I think they know it, too. It would certainly explain everyone's rush to make a "session IPA." Might as well grab more money by selling people more of a beer that is cheaper to make at the same price. Try to corner that market and make the cash flow last longer than it will for your competitors.

 

While this guy's brewery is awesome, his concept is killer, and I hear his beer is out of this world, it will be very hard for him to expand his business I think. How big is the market for $25 bottles of Wild Ale? What are his margins? His capacity when aging all his beers for so long in oak? Then again, this may be his vision for his brewery and he may want exactly this and to not ever be bigger. And that's fine too, but most people want to expand their business to increase revenue and profits.

 

Grain to glass days = $

How many pours of a huge RIS will someone drink at the bar? Me, one tops. How many Pale ales? Sometimes I'll have 3-4 of the same pale ale, lager, IPA, mild, etc if it's good.

IPA, pale ale, wheat ales, etc are the money makers that allow breweries to do cool shit like BBA Imperial Stouts.

 

I will let @jesskidden state the definition of a national brewery.

 

I think he is happy where he is - and the market for 25 dollar wild ales is increasing. I am not sure if you are aware of the boutique/craft culture that takes place in Oregon but MANY people here pay top dollar for things that take special skills, use top ingredients, are fair trade, organic, etc... We see it in coffee, food, fabric as well as beer. (PDX has like 10 specialty yarn stores!) That's why PDX is one of the top cities in the world for these industries. I think that can only exist in a place that takes serious pride in quality over quantity, and a do it yourself attitude.

The Ale Apothecary (and other breweries in this region, i.e. Cascade, De Garde, Logdson) epitomize this Oregon mentality. With not a very large population, PDX sustains 53 breweries, including all organic breweries and 3 Gluten-free specific breweries (THREE!) I am not saying that other places couldn't sustain these types of places, but they thrive in this state.

Breweries are all about selling not only a beer but a story and a process.

And i have stepped off of the shoe box.

 

Also, I think is the part where i say I have Ale Apothecary bottles, who wants trade me all their whalez.

 

I cant think of a better dime to practice on, in my opinion Deschutes knocks it out of the park 99% of the time.

 

I abstain!

Yeah, I can't think of ever reading of an authoritative industry definition, but it was generally applied to those brewers with at least coast-to-coast distribution even if it left out some isolated/restrictive/underpopulated states [a WV, ND, HI or MS - sorry residents of that states]. So, at least 40 to 45 states I'd say. Today, Spoetzl's Shiner is everywhere but New England and the PNW, IIRC, --- I'd still call them "near national".

In the era of nationally distributed general interest magazines and only broadcast network TV shows, it would have been the brewers who would advertise in those media - since it would be cost prohibitive for a big ad in LIFE if 1/3 of the subscribers couldn't buy your beer (well, bad example 'cause I think LIFE actually had "regional" editions for just that reason, but you get the idea). So, in the 40s, Miller was "nationally advertised" and probably in many more states than a F. & M. Schaefer out of Brooklyn. Even so, the regional Schaefer sold 2.5 times as much beer as Miller - so "national" didn't always mean "largest".

In summary, therefore...uh, what was the question

 

Haven't you heard? Sessionable beers are "in" now! Who wants those old heavy barleywines and Double IPAs and imperial stouts when you can have something under 5% ABV?

I'm especially disappointed in Firestone Walker, pushing 805 and Pivo and no longer producing Walker's Reserve Porter. Still, I'm glad they make DDBA, Sucaba, Parabola, anniversary, Sticky Monkee, Union Jack, Wookey Jack, Double Jack, Opal, etc etc etc... so they get a pass.

Another example to ponder is Hangar 24. They make the Barrel Roll series, including some very impressive beers (Chandelle and Pugachev's Cobra come to mind). But I'm willing to bet they make most of their profit from their Orange Wheat ale, which is often the ONLY craft handle I see when I go to a non-beer-centric food destination.

I don't drink their standard brews at all, but I drive 100 miles for their special release parties and buy up to the limits sometimes. But how much money could they make if that were their ONLY business? And why would they even want to change what seems like a very successful business plan as-is?

 

The market for expensive beer is still very, very small compared to cheaper, accessible stuff that is always available. Most people still drink light lagers and ale styles that are anywhere close are generally not too crazy or expensive. Limited release beers seem very popular because they are limited and talked about, but the BA forums are actually a very poor reflection of the beer market in general. There is probably still more room for growth for some high end styles, but I can't see it outpacing all beer from small brewers in general. The shift is toward any beer with more flavor, not to limited, expensive beers. That growth is just a side effect are more people get interested in beer and are willing to try those beers out of curiosity. Very few people would repeatedly drink very high end beer if it were always available.

 

I don't get why you're being sarcastic about this. I love a nice barleywine, DIPA and impy stout when the time is right, but I'm not going to drink mass quantitates of the stuff if I'm at an event where lots of drinking is happening (cookout, concert, tailgating, beach day, etc.). In such cases, I don't want Bud Light, I want kick ass craft that I can drink lots of. Breweries are responding to what folks like myself want.

 

I want you to get why I'm being sarcastic about this: I'm a sarcastic person. :-)

Personally, I only drink once in a while and I want it to be something special. Since I don't drink at concerts, don't take beach days, don't tailgate and don't go to many cookouts, the whole session thing doesn't appeal to me.

And I think breweries, more than responding to what craft beer people want (they already have us ensnared), are looking for volume leaders that appeal to people outside their already-staked-out territory. These are the people who used to drink Corona or Bud but heard that craft beer was better and so are putting baby toes into the pool. Aspirationals, they're called in ad-agency lingo.

 

Hence microbrews are being canned and even Anchor is canning their California Lager.

 

Fair enough, but I still think you're underestimating how much craft lovers truly do want sessionable beers.

 

THANK YOU! Thank you for saying that.