When is "big" Too Big?

Discussion in 'Beer Talk' started by mattfitz, Feb 28, 2012.

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  1. mattfitz

    mattfitz Initiate (0) Jan 26, 2009 Connecticut

    I'm a free market capatalist, but I can't help but cringe a little bit when I hear about expansion. I was reading about the 15th anniversary of Stillwater. 95000 barrels per year isn't enough? Can one really call it "craft beer" at that point? Would regional brewing locations be better as a way to increase output? I realize water plays a major role in the brewing process, though I assume they correct for pH and minerality as part of their brewing process.

    I don't mean to pick on Stillwater, nor suggest their beer will suffer due to expansion. I'm curious what others think about brewery expansion; the definition and limits of craft brewing; anything else related?

    Cheers
     
  2. kzoobrew

    kzoobrew Initiate (0) May 8, 2006 Michigan

    Why should we be against success? There are many breweries who are content staying small, why should we have an issue with those whose goal is to grow and expand? I say good for them. I would prefer to see the craft segment grow rather than become stagnant. Once breweries stop growing that is when we know that we are in trouble.
     
  3. jesskidden

    jesskidden Grand Pooh-Bah (3,145) Aug 10, 2005 New Jersey
    Society Pooh-Bah Trader

    Stillwater in Baltimore is a gypsy brewer. It sounds as if you're discussing SweetWater's press release.

    The US industry definition (via the craft brewers organization, the Brewers Association) of "craft brewer" puts the limit at 6 million barrels. Not everyone agrees, and people are free to create their own definition - but it does make discussions difficult.
     
  4. xnicknj

    xnicknj Initiate (0) May 25, 2009 Pennsylvania

    thank you for clarifying. my mind was blown for a second thinking that stillwater was producing that much.
     
  5. ShanePB

    ShanePB Initiate (0) Sep 6, 2010 Pennsylvania

    As long as their end product to the consumer remains unchanged (getting no worse), I say grow as big as you can.
     
  6. joeebbs

    joeebbs Initiate (0) Apr 29, 2009 Pennsylvania

    To answer the question in the subject line: When quality is affected.
     
    shand, happy4hoppybeer and EricCioe like this.
  7. Supes

    Supes Initiate (0) Jun 22, 2011 Arizona

    I despise the fact that some people hate when a small brewery starts to expand and get bigger, more successful and more popular(well known). Like Dogfish Head or Stone. Where some people hate on them now because they are "main stream" and you can no longer be the pretentious dick saying that "oh ya I only drink Dogfish Head, I know you havent heard of them before but just know that im better then you and way cooler for knowing about them and you dont". Its not the "cool" thing to like them because my grandpa has had a 60 minute. Its the same thing that happens when your local band is playing killer music and rocking the house, then they get noticed and start making money and getting popular and you all of a sudden hate them because they are sell outs and no longer cool. I think its a joke that some people refuse to like anything thats popular just becasue it popular. That is not a valid reason. The only valid reason to start to dislike a brewery once they have expanded is if the beer suffers in quality or they start to neuter the taste to try to be more main stream. Then I say we burn them to the ground.

    I know not all people are this way, Im not even saying the OP is, but a good number of people on this site are.
     
  8. Manoftyr

    Manoftyr Initiate (0) May 6, 2009 New York

    I'm completely with Supes, and it seems most others in the thread, on this; expansion is fine so long as quality is maintained and nothing gets watered down for teh masses so to speak.
     
  9. Grohnke

    Grohnke Initiate (0) Sep 15, 2009 Illinois

    /thread
     
  10. ChadQuest

    ChadQuest Initiate (0) Mar 4, 2009 Illinois

    When making kick ass beer becomes second to making as much money as possible.
     
  11. Gosox8787

    Gosox8787 Maven (1,254) Jan 24, 2009 New Hampshire

    Why do they have to be mutually exclusive though? A brewery should want to make awesome beer, but it is also a business that needs to make money to survive. Awesome beer should help drive profits, not have an adverse effect on them.

    In other words, making the best beer should result in maximizing profit, and there's absolutely nothing wrong with that.
     
  12. cbutova

    cbutova Grand Pooh-Bah (3,059) Oct 10, 2008 Massachusetts
    Pooh-Bah Trader

    If the quality of the beer stays the same, who cares. Oh damn, there is just way too much good beer floating around.
     
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  13. kzoobrew

    kzoobrew Initiate (0) May 8, 2006 Michigan

    I do not think anyone is saying there is anything wrong with making money but when that becomes your primary objective you begin to have problems. I am fairly certain that anyone who got into this industry to get rich has found themselves rather disappointed. The focus should always be on the quality of the product first. If you make a quality product the money should follow.
     
  14. mikecharley

    mikecharley Savant (1,214) Nov 6, 2008 Pennsylvania
    Trader

    I'll answer your question with another question: if miller made the *best* sours in the world, and utilized it's economies of scale to deliver them at about $4 a bottle, would you buy them?
     
  15. kzoobrew

    kzoobrew Initiate (0) May 8, 2006 Michigan

    I'll answer your question which was an answer to a question with another question. AB-Inbev is now "in control" of arguably the best barrel aged stouts available. Has that stopped anyone from buying them?

    Sidenote: I realize this is a hypothetical question but I do not even thing with mass production that a $4 bottle of the worlds best sours is realistic.
     
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  16. MaxSpang

    MaxSpang Initiate (0) Jan 28, 2011 Ohio
    Trader

    This.

    To hate on a brewery for getting big is ridiculous. Not to crush the romanticized view of craft brewers, but these people are in a business. They are making a living from their product. Most of these brewers took a big risk by getting into brewing, and probably didn't make any money for several years. Why should we stop liking them when they grow, because they aren't "cool" anymore?
     
  17. ChadQuest

    ChadQuest Initiate (0) Mar 4, 2009 Illinois

    I did not know that Founders makes more money then miller.

    I guess quality ingredients and doing smaller batches doesn't effect cost as much as i thought.
     
  18. FosterJM

    FosterJM Initiate (0) Nov 16, 2009 California

    To each their own. If Brewery A wants to stay small, good for them. If Brewery B wants to grow and capitalize on new and expanding markets and they can sustain supply and still create a great product good for them. It's the owners/brewers choice of how to distribute and market their beer. Our job, Drink it!!

    Cheers!
     
  19. cbutova

    cbutova Grand Pooh-Bah (3,059) Oct 10, 2008 Massachusetts
    Pooh-Bah Trader

    Big is too big when CBS is made with this:

    [​IMG]
     
  20. Gosox8787

    Gosox8787 Maven (1,254) Jan 24, 2009 New Hampshire

    It's not necessarily about absolutes in terms of profitability. Miller generates more sales but that doesn't mean they are more "profitable." I can't really speak for what those companies actually make, but Founders seems to be doing pretty well. Demand is way higher than supply on most of their products. Massachusetts, for example, has a bottle per store limit on a beer that is sold in 4 packs (KBS)

    Also, I don't really think that Miller and Founders can be put in the same "industry." Craft beer seems to function on a different plane than BMC. I know they both produce beer but the products are definitely geared toward different people and I think the growth in craft vs. the decline BMC sales this past year illustrates that. My point being comparing Founders and Miller doesn't seem completely fair.
     
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