Do you mind when breweries refuse to grow or expand?

Discussion in 'Beer Talk' started by brewbetter, Jul 10, 2012.

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  1. brewbetter

    brewbetter Initiate (0) Jun 2, 2012 Nauru

    It really bothers me that some breweries refuse to expand in spite of excessive demand. Some people like it when breweries only release locally, but I think that's just selfish.
     
  2. jesskidden

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

    Have you tried cutting a multi-million dollar check to give or loan (at or better than current rates) these breweries for new equipment, increased capacity space, additional employees and land so they can expand? I'm sure many (but, granted, not all) would jump at the chance.
     
  3. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania
    In Memoriam

    Can you give us examples of breweries that "refuse to expand?" Thanks.

    Edit: Leaving off your list those who don't have access to the resources mentioned by jesskidden...
     
  4. Steeeve

    Steeeve Initiate (0) Nov 16, 2010 Pennsylvania

    I only get mad when it's a brewery whose beer I want but is not currently available in my market.
     
  5. brewbetter

    brewbetter Initiate (0) Jun 2, 2012 Nauru

    Well, if they only distribute within their state or their region, they either don't want to expand, they don't think there is demand, or they cant keep up with the growth, right? So are you trying to tell me that these decent sized breweries are incapable of growing or growing fast enough? That seems hard to believe.

    For some examples Russian River has said they will not expand. New Glarus says they are expanding, but clearly they don't care to expand faster to allow themselves to distribute out of state. If you are not distributing to major states, then you are leaving growth on the table.
     
  6. Mavajo

    Mavajo Initiate (0) Feb 10, 2007 Georgia

    Yes. Russian River immediately comes to mind.
     
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  7. mychalg9

    mychalg9 Pooh-Bah (2,123) Apr 8, 2010 Illinois
    Pooh-Bah

    If they are comfortable doing it the way they are doing it, why would they want/need to change? It seems like there would be a lot of stress and effort involved in expanding, and I'm sure not everyone is up to the challenge.
     
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  8. Sneers

    Sneers Initiate (0) Dec 27, 2009 Pennsylvania

    "El Bulli should have had a drive-thru!"

    I don't mind at all. I don't understand why a brewery is somehow obliged to expand just because the demand is there. If a brewery has hit its stride under a certain operation, what's wrong with them just being content with that? Furthermore, I don't really see some selfish benefit conferred by the brewery by doing so.
     
  9. coreyfmcdonald

    coreyfmcdonald Initiate (0) Nov 13, 2008 Georgia

    Seriously - how selfish of them to not put millions of dollars into expansion of their brewery at a pace you deem appropriate to expand to a size that you deem appropriate.
     
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  10. brewbetter

    brewbetter Initiate (0) Jun 2, 2012 Nauru

    Yes, it is selfish. I never said they had to expand, but choosing not to is selfish.
     
  11. mondegreen

    mondegreen Savant (1,013) Nov 4, 2009 Georgia

    Part of Russian River's recipe for success is their limited footprint. By that, I mean that they are able to more reliably ensure freshness of beers like Pliny. If they started shipping Pliny nationwide, they would lose that edge and be very similar to breweries like Lagunitas (IMO). After all, Hop Stoopid and Pliny aren't that far off in terms of quality & price, but finding fresh Hop Stoopid can be quite a chore.
     
  12. brewbetter

    brewbetter Initiate (0) Jun 2, 2012 Nauru

    I'm more interested in their sours, which would hold up very well over time. If they are so worried about fresh Pliny bottles, then distributing to Washington doesn't make that much sense. I saw old bottles when I was there.
     
  13. Kinsman

    Kinsman Maven (1,457) Aug 26, 2009 Nevada

    Have you ever owned a brewery (or any business for that matter)? There could be anyone of a million different reasons as to why a successful brewery owner would choose not to expand his/her operation so to call them selfish without really knowing why just isn't right.
     
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  14. woosterbill

    woosterbill Pooh-Bah (2,807) Apr 6, 2009 Kentucky
    Pooh-Bah

    Do you know what you're asking for in terms of expansion in the case of New Glarus? This year they are on pace to sell 108,000 barrels in Wisconsin alone - about a barrel for every 53 people in the state. Extrapolate those numbers to the whole country, and they'd have to be about three times the size of freaking Sam Adams. Even if they only expanded to Illinois, delivering the same market saturation there would force them to become the fourth-largest craft brewery in the country.

    Face it: New Glarus has been expanding as rapidly as any brewery in the country. They recently moved into a brand new, much larger brewery, and they've already announced plans to add on in order to expand capacity by almost 50%. They're as growth-oriented as anyone else; they just happen to be located in a very, very thirsty state.
     
  15. Mavajo

    Mavajo Initiate (0) Feb 10, 2007 Georgia

    Russian River should expand. They don't have to become The Bruery or Stone, but their current distribution is just silly. They could pick a few choice markets that would have broad regional appeal. For example, Atlanta. By distributing to a handful of the better stores in Atlanta (Greens, Hop City, Ale Yeah and Tower), they could theoretically reach the entire south-eastern market while only needing to supply 4-6 stores. Atlanta's airport is the busiest in the world and Atlanta itself is a major hub in the South.
     
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  16. azorie

    azorie Pooh-Bah (2,471) Mar 18, 2006 Florida
    Pooh-Bah

    You could just write them a letter or email and ask them all this, your not going to get an answer from BA members you want any way. Put yourself in their shoes. They are happy with things as it is. Maybe they know about their market better than you do?

    Long ago I knew if I wanted something but I could not get it,
    A: do without
    B: go to where it is.
    C: trade for it
    D: bitch and whine
    E: try to find it for sell online
    F: do nothing

    Which one gets you the beer?:wink:
     
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  17. Sneers

    Sneers Initiate (0) Dec 27, 2009 Pennsylvania

    Care to elaborate on the way in which not expanding is selfish?
     
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  18. Jnorton00

    Jnorton00 Maven (1,338) Apr 13, 2007 Massachusetts

    Because he can't get their beer without trading possible... How dare them inconvenience him like that!
     
  19. woosterbill

    woosterbill Pooh-Bah (2,807) Apr 6, 2009 Kentucky
    Pooh-Bah

    Isn't it obvious? Every beer geek is entitled to have easy access to every sought-after beer, and breweries that are too lazy to make it easy for us are being selfish jerk-faced jerks. :stuck_out_tongue:
     
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  20. Msquared2

    Msquared2 Initiate (0) Jul 28, 2011 North Carolina

    Yes. But it is clearly outrageously expensive to expand. New Belgium's new brewery in Asheville is projected to cost well over 100 million dollars. Although most breweries aren't as big, it still costs a great deal of money. They key to this is- they probably don't have hundreds of thousands to millions of dollars laying around in cash. So this means they have to take out loans and pay interest as well as possibly lose a percentage of their company to investors. For many breweries, who are already doing what they love while financially staying afloat, it is just too much of a hassle.
     
    BBThunderbolt likes this.
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