The future of craft brewing?

I think Sam’s strategy is sound for small/new brewers. Have one primary site and then set up some low cost/low overhead satellite taprooms and keep all of your profits with no middleman charges (from retail or bars/restaurants). And your beer should always be fresh as well.

 

Not 100% sure on # of satellites but Vanish brewery in Northern VA just opened a satellite taproom joined in with a pizza shop in Frederick MD, so I guess it’s allowable under MD law.

 

Minnesota allows one taproom per brewing company. Surly had to close their original taproom in Brooklyn Center when they opened their production brewery/brew hall in Minneapolis. Other Minnesota breweries like Lift Bridge have opened taprooms across the river in Wisconsin to be able to expand and get around the limit.

 

Sam's plan sounds a lot like Tree House. Just replace all the words "small" with "huge".

 

Not sure if it's still this way, but at one point Oklahoma required BJ's restaurant, which brewed in most of their locations, to sell their own beer to a distributor then buy it back to sell in their own house. Oklahoma has fixed a lot of their bizarre laws as regards retail sale of beer, but they still seem to be behind the curve. I live in Texas, but have family in the OkC area (my nephew is a serious beer nerd, my BiL is a chef).

 

Huh. Didn't know this. Does this still apply if you open a satellite in another state? Off the top of my head I can't think of a PA brewery that has done that. There are two breweries in my area that have opened or plan to open satellite locations (in state).

 

https://www.voodoobrewery.com/locations

VooDoo has five locations in Pennsylvania, perhaps the have multiple licenses filed with the state. They also franchise locations and own two out of state locations, the second a newly opened taproom in Las Vegas the Arts District which I plan to visit next month.

In Illinois, breweries are allowed up to 0-3 brewpub / taproom locations depending on which of the three brewery licenses they hold. In Wisconsin breweries are limited to two locations. Not sure of Indiana laws, but 18th Street has two locations (Gary & Hammond).

 

He left out:
"Just sell out to one of the largest multi-million barrel Hard Seltzer/FMB/Ice Tea/(Some)Beer companies in the country."

 

From a combination of experience as an employee, and observation in NOT, and listening to a very similar complaint from a number of perspectives.
Wide and shallow never worked for breweries. It guaranteed turnover at the most vital link necessary. Expanding still will need to be done organically. And prudently, without money being irresponsibly tied up in expenses that can't be managed. If you can self distribute. That's a whole lot money being saved, and a stronger relationship being built. If you can manage to generate most of your sales IN-HOUSE on top of that. Be smart, and don't get any funny ideas that a better more profitable market is out there. Breweries aren't portable. Taproom experiences aren't either. The most important customers an owner can have is the neighborhood the taproom is located in.

 

Omni got partially around it simply by opening a whole-ass winery and selling their draft beer there. So many easy options available.

 

Generally, I think that Sam's advice is sound. I'm finding that I'm buying less of the SN and FW size breweries and more of "local" breweries.

 

In the future I wonder if the New England Patriots owner might start Kraft Brewing.

 

That would be considered an adjunct.

 

Also, start your brewery on the early 90s when the market isn't so saturated.

 

Problem is that you've been slaving away for 30 years, and now the value of your "sweat equity" has evaporated. There is nowhere to hide.