A question regarding "boutique" beers/breweries

Discussion in 'Beer Talk' started by pmlondrigan, Mar 14, 2014.

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  1. pmlondrigan

    pmlondrigan Initiate (0) Feb 4, 2010 New York

    So I’ve been thinking….why don’t some breweries focus solely and only on boutique beers? For instance, it seems to me that if a brewery like Cigar City or Firestone Walker decided to stop brewing beers like Jai Alai, Florida Cracker, Pivo Pils, Double Barrel Ale, respectively, they could focus more on producing beers like Marshal Zhukov and Sucaba. Perhaps if they did this a once a year beer that causes great hype and insanity could become a twice a year, or even quarterly beer that is reasonably accessible for the beer loving public. Over the last decade there has been a plethora of new breweries popping up in everyone’s backyard, many are mediocre, but I think these days most people have access to a good local brewery (I think). I guess the ultimate question is whether a brewery could remain profitable utilizing this model. And I clearly don’t have that answer. But, I believe this is a far better model for the beer industry in general. Certain breweries focusing on the production of boutique beers while other smaller local breweries service the general needs of the beer loving population. Thoughts?
     
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  2. BoldRulerVT

    BoldRulerVT Initiate (0) Oct 2, 2013 Vermont

    You can't start out producing a type of beer that isn't going to be accessible to the average beer fan. New breweries are fighting for tap lines at bars and attracting new people to their brewery. You want to be as accessible as possible, and currently that style is very much IPA, double IPA etc...
     
  3. JohnSnowNW

    JohnSnowNW Initiate (0) Feb 6, 2013 Minnesota

    From a homebrewing perspective...it's because that would boring.
     
  4. BKBassist

    BKBassist Initiate (0) Jan 24, 2013 New York

    Your "far better model" is pretty much exactly the model that is currently in place. With the addition of the "regional/national brewery that has a core line up and special releases" bridging the gap between "boutique" and "local" (also limited or no distribution beers from "local" breweries are often the most sought after, "boutique" if you well, as well as being highly regarded).

    "Boutique" w/distro - Bruery, Eclipse etc
    Wide distro w/sought after limited releases - Founders, Stone, New Belgium etc
     
    Roguer likes this.
  5. pmlondrigan

    pmlondrigan Initiate (0) Feb 4, 2010 New York

    True, I agree with you. However that doesn't mean an established brewery can't change their model.
     
  6. Prince_Casual

    Prince_Casual Savant (1,236) Nov 3, 2012 District of Columbia
    Trader

    The most efficient mix of margins and turnover.... IPAs are much cheaper+quicker to make, and people also buy->drink->repeat on IPAs at a much higher rate.

    I know people on BA act like they'd buy a 12x22oz of parabola to get them through the average week, but really, they wouldn't. Who buys a case of dragon's milk a week?
     
  7. Chibeerguy1

    Chibeerguy1 Pundit (818) Jul 7, 2013 Illinois
    Trader

    I think we are seeing this already. The Bruery, the Rare Barrel, Cascade, Side Project, Perennial, and Almanac are all breweries that are dedicated to producing high quality beers (most of which are barrel aged) instead of focusing on the standard Pales, Wheats, Porters, or otherwise your regular drinkers. I believe the reason for breweries like firestone and cigar city still focus on core offerings is because that's what made them successful to begin with, and im sure its just as profitable as the "boutique" beers they produce. For the up and coming brewery, I think focusing on specialty beers is a great way to make a name for yourself, but probably has tons more startup costs involved, and you cannot produce beers in a reasonable amount of time to keep cash flow going. If all your beer has to age in barrels for years, you cannot quickly produce a product to sell. Also, "boutique" beers such as barrel aged and sour beers have a much higher chance of failure due to infections and other conditions in aging, which means labs and other sophisticated equipment many start-ups may not be able to afford. Just my opinion from a business standpoint.
     
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  8. nickfl

    nickfl Initiate (0) Mar 7, 2006 Florida

    Ever heard of Hair Of the Dog?
     
  9. pmlondrigan

    pmlondrigan Initiate (0) Feb 4, 2010 New York

    Well put, especially from a business standpoint. I had totally forgot about the threat of failure, infection, bad batches and bad barrels when I posted. But on the time aspect I disagree. There are thousands of wine producers all over the world that manage to create a product, age it in a barrel for an extended period of time and sell it for a profit without worrying too much about how time keeps cash bound up, right?
     
  10. CurtFromHershey

    CurtFromHershey Initiate (0) Oct 4, 2012 Minnesota

  11. Providence

    Providence Pooh-Bah (2,652) Feb 24, 2010 Rhode Island
    Pooh-Bah Trader

    Isn't this what the Bruery does?
     
    #11 Providence, Mar 14, 2014
    Last edited: Mar 14, 2014
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  12. Immortale25

    Immortale25 Grand Pooh-Bah (3,775) May 13, 2011 North Carolina
    Pooh-Bah Trader

    A thread title, perhaps vague?
     
  13. pmlondrigan

    pmlondrigan Initiate (0) Feb 4, 2010 New York

    Well put, especially from a business standpoint. I had totally forgot about the threat of failure, infection, bad batches and bad barrels when I posted. But on the time aspect I disagree. There are thousands of wine producers all over the world that manage to create a product, age it in a barrel for an extended period of time and sell it for a profit without worrying too much about how time keeps cash bound up, right?
    Yes this is what The Bruery does. But The Bruery is not the only brewery. My arguement is for more breweries to follow this model.
     
  14. cestlavie

    cestlavie Initiate (0) Oct 27, 2011 New York

    The Rare Barrel. end thread.
     
  15. Mikecap

    Mikecap Pooh-Bah (2,098) May 18, 2012 Massachusetts
    Pooh-Bah Trader

    If Cigar City stopped making Jai Alai I think they'd lose a lot of fans
     
  16. Sponan

    Sponan Initiate (0) Jan 20, 2008 Tennessee

    Often times the profit margin on these rare "hyped" beers is much smaller given the time required to age them.
    Also, if they were more readily available, the hype and ratings would drop. Which would make it that much more difficult to sell them at the high prices needed to make a profit. The market for $35 750ml bottles is pretty limited.
     
  17. RPH2327

    RPH2327 Initiate (0) Dec 5, 2010 Pennsylvania

    Put your beer down and walk away from this tread, sir.
     
  18. Providence

    Providence Pooh-Bah (2,652) Feb 24, 2010 Rhode Island
    Pooh-Bah Trader

    I wish the opposite really. More sessionable six packs, less big boutique brews.
     
  19. doppletheGOAT

    doppletheGOAT Initiate (0) Nov 27, 2012 Texas

    I like the idea of sticking to high quality only but that also limits your market. Not everyone is willing to pay top dollar for the latest barrel aged beer or whatever you're making.
     
  20. SteveB24

    SteveB24 Initiate (0) Aug 29, 2013 New York

    to this not unreasonable question i would propose that even if a product made by a company isnt their best seller, carrying a variety of goods can increase all around sales, a first time craft beer drinker wouldnt pick up lagunitas sucks if that was the only beer on the shelf, and other brewers had four or five beers. you figure out what you like by trying lots of beers, and to do that you need variety. so its possible, for example, that sierra nevada breaks even or makes a low profit on Narwhal, flipside and bigfoot barley wine, but that wide variety makes their better movers gain exponentially more traction, increasing their overall net profits, but this is just speculation.
     
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