Side Project / Shared (2020)

And the official announcement for TWCP DBD
https://blog.wineandcheeseplace.com/2020/08/side-project-twcp-2020-derivation.html

https://www.instagram.com/p/CECbdo9DQJu/

 

Bad timing on moving away so I can't keep up my BRC...

 

Am I the only one? Sulla Terra is one of my favorite bottles. I love the label and green wax on that one.

 

I'm more pumped for this than Rye BBT. Excellent beer

 

anyone know if it’s the same blend of barrels this year?

 

Wouldn't you, an economist, argue to increase supply to the point where the secondary market is eliminated and capture more value through selling to more consumers and generating more revenue through sales of other products by bringing more consumers to the product? What you are proposing is increasing the price to secondary levels and their generating revenue from a fraction of their current customer base.

 

No not at all, I was responding to the "they should charge $650" comment I should have quoted it sorry for the confusion.

I am a member, I gladly pay the 65, 75 to support them during the pandemic and I make everyone I proxy for tip every time I pickup for them.

 

What's the description on Sulla Terra anyway. I don't see it listed in their "beer" section and don't know anything about this beer. Have they posted about it anywhere?

 

Increasing supply is a long-term problem on a long-term timeline, especially for a barrel aging only brewery. For someone that obsesses about the details and quality as much as CK, you're likely talking about an even longer process due to the requirements to maintain quality.

I understand the question you're getting at, though. It's the question of a monopolist. Can you decrease price (and assuming supply is not an issue) supply enough that your total revenue (and profit) will be higher by doing so than by artificially limiting supply (since an increase in supply hypothetically should result in a decrease in price). For a company that is so in demand and with so few true substitutes that are in the "same league," the answer is probably yes if you could snap your fingers and increase supply, you could leave the price unchanged (or even perhaps increase modestly). This doesn't take into account the long-term effects on hype and total sales, and those long-term effects on the success of SP. You'd expect, though, that if you could arbitrarily increase supply, that, yes, in this case you'd increase total revenue and total profit.

This is just an armchair comparative static exercise that doesn't take into account the actual process, costs, and problems associated with increasing supply.

 

scope description here: https://www.beeradvocate.com/beer/profile/47799/430246/

 

2 Candles, hands down. 1 Coffee Candle was liquid fudge and a close second.

 

More boat rentals for you!

 

Apologies for the long post - good stuff here, and good discussion. Clearly, the current situation and limited space is a very large mitigating factor toward increasing supply in the short-term. When Goose Island scaled, what did they have to do? (Setting aside the ABI connect of course). They had to buy a warehouse the size of a city block to stack the barrels and scale in order to capture the additional demand out in the marketplace (resulting in BCS regular being on shelves year-round now, when just 5 short years ago, this was not the case).

Looking around the country at other breweries that barrel age that are (or were) in similar demand on a premium level sees a common theme - Russian River, Toppling Goliath, heck, even Three Floyds are all somewhat early craft beer examples of starting small, generating a cult-like following for barrel aging and being recognized for having a superior limited product - they all had to expand in some way to eventually scale to meet demand with a significant capital investment (be it through acquisition of an existing building or simply starting from scratch). What that did was open up new revenue streams through more or expanded production of product, and yes, some would argue the scaling lead to some shortfalls on the quality side. What happened from a secondary market perspective, however, is up for debate - I believe KBBS is just as sought after than ever(?) and prices are still pretty high out there, and TG still raised the base price on the product - clearly demand is not yet met in that space.

Bringing that back to SP, there has always been talk of expansion, but it would be incredibly difficult to meet the enormous demand for the product due to a lack of substitutes in the marketplace. Ultimately, there really is no true solution to the secondary issue, especially in the current environment where on-site only bottles are simply not possible. The illegal black market is strong and very difficult to stop. You plug up a couple bad actors and there is a rush to fill the space at current. Once we get back to some semblance of normalcy, it would be nice to see something like lower prices (comparably speaking) for on-site bottles for those of us who want to drink them, with to-go prices through the roof to supplement accordingly (yes, I know this is not going to happen, it is simply a thought experiment). Anything to get good beer into more hands without losing revenue and scale is a win-win. You can always make the argument that SP is 'losing' money on having cheaper bottles on-site, but you could also argue that if you're buying a cheaper bottle, there is a higher likelihood that same person might have an extra pint here and there to supplement. Just a thought, no true answer or solution, but in the end, like I said, an interesting thought experiment to work out a very difficult issue.

 

BdP inventory dropped by about 1,100. Seems like there were about 350 bottles of BBT today if that correlation is accurate.

 

yep that's about right.

 

An enjoyable post for sure. This is the type of discussion I'd love to sit down at the bar, order a couple bottles, and really talk about for awhile. Hit me up if you ever want to chat.

 

Achromatic Vibes on Shared's IG.