"In a wide-ranging interview, company owner and President Dick Yuengling Jr. said he intends to keep growing the seven-beer brand. Sales could approach 3 million barrels by year’s end. To keep growing, it’s all but inevitable that Yuengling will have to build another brewery, perhaps within two years. “We feel very fortunate, and we just want to keep growing,” Yuengling said. . . . Yuengling said he doubts he will build the brewery in Pennsylvania... he declined to cite any states he might be considering for the brewery." http://www.pennlive.com/midstate/index.ssf/2012/10/yuengling_new_brewery.html
"And while he didn’t directly criticize any Pennsylvania administration, past or present, he said he can never be certain which way the state is leaning in terms of its tax and business policies." Going to have to go out of state, eh? Interesting since the last brewery Yuengling built was in-state. Guess he doesn't have as much control over PA politics and laws as some folks have suggested.
The article specifically refers to that -"The company remedied the situation, if only temporarily, by building the brewery near Pottsville and purchasing a former Stroh’s brewery in Tampa, Fla., around the same time" which was over 13 years ago now.
When Yuengling opened in Florida they opened new markets by both going south and north. It would make sense for them to build it further out west, maybe in Illinois. That way the could grow in four directions.
I'd be interested to read any detail you may have on suggestions of Yuengling's control over PA politics. I know Yuengling has been vocal in it's support of the existing laws in PA over the years. And there's a fairly old ~article on how they have taken advantage of the laws (Protectionist Beer Mongers). I've read mention of some being upset about Y's asking for financial support for the rail system at the Mill Creek brewery, but I couldn't find any detail on that. I realize this is business and they can build where they want. But, the often sited comment from Dick about the laws helping them survive seems to really just be about them. Not about other small brewers, and not about the PA consumer who may want to buy/try something other than a case of Yuengling.
Well, in the Yuengling quote I cited in another case law-related thread*, he did say "The 16-oz. returnable was also a big package in this state, and the big guys didn't want to bother with it. That package kept a lot of small breweries alive." It's not difficult to find many other instances of PA's pre-craft-era (< note the emphasis) breweries benefiting from the case law. At the start of the craft era, PA still had eleven local/regional (no nationals) breweries - so, over 20% of all the breweries in the country. Those breweries had a much larger percentage of their barrelage sold as draught and in deposit bottles, particular the 16 oz. longneck returnable, which saved them (and consumers) money. Jones (Stoney's) was selling over 100k bbl/yr within a 100 mile radius (85% within 50 mi.) - most of today's 100k craft brewers have to distribute coast to coast to sell that much beer. Straub sold 30% of their beer by the case from their own attached retail outlet. Pittsburgh's Iron City was the #1 beer and light beer in western PA. Much of the rest of Yuengling's comments in the OP link (discussing the "state’s business climate" and not being certain "which way the state is leaning in terms of its tax and business policies") should be read understanding that his political power lies within the Republican Party in PA. * Also noted in the other thread is a quote from the head of the PA Brewers Assoc. in which he called them "favorable laws" and even claimed the brewers helped write them.
Ok, I guess the big question to me is who is buying all their beer? Let's assume the PA market sales is fairly steady. They've been a know commodity in our area for some time now and I would think sales in this area is fairly stagnant. So, sales out of the area/state must be growing rapidly? Seriously, who is clamoring for their beer? Lager is a solid but far from spectacular and it's still a mass produced macro style lager.......so what's the allure? Yuengling became popular in this area because they were local and they were "different" than BMC. The Lager brand was built as better than BMC, but still drinkable to the BMC crowd with it's fairly bland flavor, but again people also bought it because it was "local". So who is driving the growth? I know they are really pushing Light Lager right now, so is that part of it? Is that replacing Light BMC in areas outside of PA?
This is all just assumptions so bear with me: I think in PA Yuengling is a gateway beer for most just turned 21 drinkers. If you go to any neighborhood bar you're almost guaranteed a Yuengling Lager. It's cheaper than a case of craft made in PA but more expensive than a case of BMC yet tastes better than the BMC. It also has a somewhat hipster-ish attraction in some areas (kind of like Pabst) since it's cheap and isn't "Fizzy yellow beer." I grew up with my brother and Uncle drinking Yuengling and I'm sure many others like my self have. It's got that "dad's beer" stigma to it.
Well, Yuengling Premium was "Dad's beer", Yuengling Lager is the "hip" beer. So Lager must be "hip" in other states too if growth is that large. It also must be that Light Lager is gaining footing and probably contributing to some of that sales growth. Why? That's beyond me.
Keith, I am not a beer marketing expert (and I am not a huge fan of Yuengling beer since I prefer craft beer) but I think that ‘allure’ for Yuengling has been pretty much detailed by previous posters: · Similar in taste level but with some ‘more’ taste than a BMC type beer · It has somewhat of a differentiating appeal; I don’t know that “hipster” is appropriate but it does seem to make the beer drinker ‘feel’ different. · It is reasonably priced in the ‘sweet spot’ between BMC type beers and craft beer Yuengling expanded in Ohio in the last year (or so) and it is selling extremely well. See some quotes below. While I am not a huge fan of Yuengling beers sine they are too bland for my palate I do like the fact that as a company they are doing well. Cheers! Jack “The Pennsylvania beer, which entered central Ohio in early October, is already among the top three beers requested by the restaurant chain’s area customers. “We knew it was going to be a huge success for us,” said Steve Weis, vice president of operations for Max & Erma’s. “It’s not as expensive as other craft beers are, which makes it more accessible, and it is very flavorful, colorful and drinkable.” It’s been 10 weeks since Yuengling & Son Inc., America’s oldest brewery, made its way to Ohio. And so far, sales of three of the brand’s brews — Traditional Lager, Light Lager and Black & Tan — have made for one of the strongest entries into a market ever for the company, said Dave Casinelli, chief operating officer for Yuengling. The demand for the beer in northeast and central Ohio has been so strong that the company had to delay its full entrance to the southern half of the state by two weeks to give the brewery more time to get more beer into the state, he said. “The volume demand was so strong it put a strain on the brewery so that we were only able to get draft beer in some areas because the demand was so strong in other areas,” Casinelli said. “It put a strain on us, but it’s a good problem for us to have.” Above from: http://www.dispatch.com/content/stories/business/2011/12/23/hopping-fad.html
I think they have chosen wisely in the timing of some of their distribution expansion. Here in WV, they popped up on shelves right about the time that our 6% cap was lifted and other new beers started slowly showing up. Suddenly there is this 'better' beer that is not very different in price from BMC. They pretty much took this state by storm. Not that WV accounts for much in the larger scheme of national sales, but it was clever timing. They basically rode someone else's horse into town.
A loooooong time ago, when Coors wasn't distributed East of the Mississippi, people would go to great lengths to bring cases of it back to their home state. It's the same with Lager. Not that it's good, but it's better than BMC and most importantly, different. Now with respect to the "business climate", that's just Dick trying to squeeze more money/incentives out of PA or whatever state offers him the most to build the brewery. Who knows, maybe there's space next to Sierra Nevada and New Belgium in Ashland. I'll stick with Victory either way. ::steps off high horse::
I love the ISO posts where people have moved out of state to a place where it's not distributed and they NEED to trade for it because they miss it so badly. Don't get that at all.
Ok I meant disproportionately based on the quality of their beer. I feel like there is a new Yuengling thread everyday and to me they are slightly worse than Leinenkugels (for example) who barely get mentioned even with their decent big eddy stuff. I guess I just don't get the draw to such a mediocre brewery. Yea yea history, tradition, blah blah...
