Deschutes delays Eastern expansion

I also think they have a solid lineup but think it may be best to stand pat right now.

 

Smart move, in my opinion. Absolutely love Deschutes, but expansion doesn't seem to be a safe bet in the current climate. We don't get them in NJ, but I'd rather continue like that than not see them anywhere if things were to go south due to the expansion.

 

As per brewbound Deschutes declined 5.6% in dollar sales in 2017 and through the first three months of 2018 are down 15% in dollar sales. In such a situation I would say that it seems prudent to step on the breaks when it comes to an expensive expansion of capacity.

 

I'm wondering if (my home state) Virginia will emerge out of this with a somewhat tainted craft beer expansion reputation... first Green Flash, then Deschutes pulls back, etc.

 

As someone living in Roanoke I always felt this deal was strange. From the incentives laid out from the state and local government, the timing, and the changing beer market. All of it never added up to me. This is not shocking by any means. Hopefully they can work out something on a smaller scale that will satisfy the local community and not drive the company down the Green Flash path.

However, I am very glad to have Ballast Point beautiful East Coast operation just 30min down the road. Always great beer, food, and the views are some of the best in the region.

 

Agreed with everyone above... it's a bad time to build a new production brewery. Tap the brakes.

However, Deschutes could probably do really well with a brewpub, assuming they find a good location. I've been to their brewpub in Portland and it's is awesome, so they know how to do it right. Brewpubs seem like a safer path for regional breweries to expand with local relevance. Like recently Victory opening in Charlotte, NC, and Goose Island in Philadelphia, and there are brewers who have always had the brewpub experience a major part of their business model like Stone, Brewdog, Iron Hill, Appalachian, etc.

 

Gotta say that Lagunitas snuck into IL at the right time. If they tried doing that now, things could have been really different.

 

I love Abyss, but around here (Houston) it's gotten to be ~$18 a bottle for the regular. $25 for variants. As such, I must all of my will power and often pass.

 

It's $18/25 at the Portland, OR brewpub too.

I do think Deschutes could benefit from dropping the price. I feel it's been shelf-turding the last few years because of that (and stiffer competition).

 

Smart move by Deschutes. With single digit growth and with little mark-up for distribution brew pub is the way to go.

 

I don't think it is a Virginia issue that these beer companies estimated the market incorrectly and paid the price.

 

The "Green Flash Paradox" should be a wake-up call to all breweries at the moment. As said before, even a brewer such as Deschutes with a solid profile, could suffer the same thing as GF. The numbers are leaning towards down sales again.. and (probably) not because the beer isn't good.. the whole playing field is over-saturated. Best to take a step back and reevaluate in a year or two.. after things play out a bit.

Nothing wrong in doing it the smart way.

[side note: I have to go into PA to get Deschutes. While delicious, a lot of their beer is OLD so I'm not buying them. Some are higher priced as well. Who's to fault.. the brewer, the distributor, or both? I also saw the same thing with GF at my local stores.]

 

They are all higher priced at my local beer retailers.

If you can figure out why beers are higher priced in PA vs. other (surrounding) states please let me know. I have asked this question many times on BA threads. I figured that some BA who is in the beer industry would be able to answer this question but so far no luck. I can tell you that the answer is not due to PA excise taxes on alcoholic beverages.

I have not purchased any Deschutes beers in years since they are overpriced here in PA IMO.

Cheers!

 

I don't buy them a lot, but do try the variants when I can find them. Recently bought the rum and tequila variants. I loved rum barrel stouts so expected to love that one, and I barfed tequila through my nose in college, so didn't expect to like that one. The opposite was true, the tequila was much better, and no flashbacks to college! Sure would like to see Abyss in 4x12oz packs, and would buy several at $15-$17 a 4-pack.

 

I went to buy an assortment yesterday at TW. Mirrorpond had best by 3/30/18, inversion 5/26/18, and fresh squeezed not so bad at 6/20/18. I'm sure the porter and stout would've been fine. But out of principle alone, I walked with other brands in my cart.

If their distributor doesn't care, why should I?

 

I have no clue. I've never thought it was a state reason, more the brewery, or the distributor, or the store.

One of my favorite low ABV beers is Against The Grain - The Brown Note. A 16oz 4pack goes for $12.99 at 1 store. At another store 3 miles away, it goes for $13.99. I would think the distributor is the same, since both stores are in the same state, and footprint. I haven't bought a 4pack lately.