It all comes down to the almighty dollar

Discussion in 'Beer Talk' started by otispdriftwood, Sep 14, 2012.

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  1. otispdriftwood

    otispdriftwood Initiate (0) Dec 9, 2011 Colorado

    And that's why the craft beer segment will grow but at a relatively slow rate. In general, most people will go for price as the main selling point for a product. Convincing the BMC drinker who pays less than $10 for a twelve pack to hand over that amount of money for 1/2 of the beer isn't an easy sell. After all, there are dozens of premium vodkas out there but the cheap rotgut vodka still sells. So what may happen when the macros actually brew their own craft beers? It may not be pretty. If they can undercut the established craft brewers with a comparable product, I don't think many current craft drinkers would be inclined to switch, even if the price is less. However, it will take new craft converts away and stunt the growth of the current craft brewing sector since new converts will be steered to the macro's craft offerings based on the price. In fact, it could drive up the price of current craft beers due to shortages of ingredients that have been scapped up by the macros.
    InBev is the Wal-Mart of beer.
     
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  2. mtlasley

    mtlasley Initiate (0) Mar 27, 2012 Illinois

    What's the point here?
     
  3. Hanzo

    Hanzo Initiate (0) Feb 27, 2012 Virginia

    The only caveat to that is Sam Adams, Sierra Nevada and New Belgium. I think they have the ability through growth to keep their prices low enough to be attractive to budget consious BMC drinkers. Couple that with approachable beers and they really are the ambassador trifecta of the craft industry.

    What's the price difference in say a six pack of Fat Tire and a six pack of BMC "craft"?
     
  4. mychalg9

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

    I agree with your premise, BUT...the macro brewers can only put out so many different "craft" beers, so I would think that the stolen converts would eventually tire of the choices they have and come on over to the comfy side of the bed anyways.
     
  5. herrburgess

    herrburgess Grand Pooh-Bah (3,077) Nov 4, 2009 South Carolina
    Pooh-Bah

    There's the rub. What will the general consumer (i.e. the one holding the majority of said dollars) tire of first? A smaller number of high-quality offerings at a lower price, or attempting to find the rare world-class beer among an ever growing variety of offerings at a much higher price?
     
  6. mychalg9

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

    LOL @ "The all ighty ollar"
     
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  7. FUNKPhD

    FUNKPhD Initiate (0) Apr 13, 2010 Texas

    So, you're saying that the only people that buy "expensive" beers are those who drink non-BMC craft beer, and those who drink less expensive BMC beers would only buy less expensive BMC craft beers, thus hurting craft breweries?
     
  8. 5thOhio

    5thOhio Pooh-Bah (1,571) May 13, 2007 South Carolina
    Pooh-Bah

    Interesting theory, but it ignores the supply side of the equation. If big brewers start buying up different barleys and hops than what they buy now, growers will have an incentive to expand their output.
     
  9. tjensen3618

    tjensen3618 Maven (1,391) Mar 23, 2008 California

    People like getting drunk. You'd be surprised how many times I've heard "I love (insert high abv DIPA), I only have to drink 4 and I'm wasted!!!"

    I'm pretty sure that's how a lot of people converted into actually enjoying the taste of craft beer.
     
  10. stupac2

    stupac2 Pooh-Bah (2,031) Feb 22, 2011 California
    Pooh-Bah

    Really good question, especially because they're actively trying this (Shock Top, Blue Moon, etc) and not succeeding in stopping the growth of craft at all.
     
  11. Orca

    Orca Grand Pooh-Bah (4,710) Sep 18, 2010 Washington
    Pooh-Bah Trader

    I'm not sure we know this for sure. For every case of Blue Moon or Shock Top sold, if that beer wasn't available would the consumer have gone for the BMC or "true craft" instead? Yes craft beer is growing every year, but maybe it would be growing even faster if not for BMC's inroads.
     
  12. stupac2

    stupac2 Pooh-Bah (2,031) Feb 22, 2011 California
    Pooh-Bah

    That would be important if I said "and not slowing the growth of craft", but I didn't. I tend to think that those work more as a gateway than anything, but you're right, we can't know.

    To some extent it doesn't really matter. My problem with ABI is that their beer sucks. If they're making good beer then what's the issue? It's not like they can destroy all the brewpubs etc.
     
  13. herrburgess

    herrburgess Grand Pooh-Bah (3,077) Nov 4, 2009 South Carolina
    Pooh-Bah

    But that ignores the issue of how the macros would likely buy in huge bulk, pressuring the growers to sell at lower and lower prices. (That is what is happening currently in Germany at least, and it's leading many barley growers to plant corn -- to sell to ethanol producers -- instead.)
     
  14. Providence

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

    Is this going to be on the test?
     
  15. herrburgess

    herrburgess Grand Pooh-Bah (3,077) Nov 4, 2009 South Carolina
    Pooh-Bah

    What about the notion that, say, a big, bold craft beer works as a "gateway" in that a BMC drinker may try it, be turned off...but then sufficiently curious to accept a more "moderate" craft beer?
     
  16. BeerKangaroo

    BeerKangaroo Initiate (0) May 30, 2011 Alaska

    , yeah, just wondering if you're thinkin' too much about it, dude.
     
  17. azorie

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

    But Blue moon outsells allot of them, and is still growing. Not to mention I don't care if its "craft" or what name you it or who makes it we drink it allot.
     
  18. alexipa

    alexipa Initiate (0) Oct 7, 2011 Colorado

    If macros start brewing craft, and it is as good as the micros (that seems to be your premise)... I see no downside to this. I'll buy the best beer I can at the best price! More competition is always good for the consumer.
     
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  19. stupac2

    stupac2 Pooh-Bah (2,031) Feb 22, 2011 California
    Pooh-Bah

    First, "allot" is a verb, you're looking for "a lot". Second, what does that have to do with what I said?
     
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  20. jmw

    jmw Initiate (0) Feb 4, 2009 North Carolina

    I'm seeing this as a need to start your own thread about a topic that's already active in 2 different places on the front page. Did you not like those conversations anymore? Anyway, comments applicable there are also applicable here.

    Quoting cavedave from here: If ABInBev markets an all malt great IPA what the hell is the problem with calling it a craft beer? Do large fermenters somehow disqualify as craft beer pure ingredients put into them by brewers capable of brewing a great IPA? Is Hop Stoopid a craft beer? I think it is. And I know that Lagunitas uses hop extract. I plan on buying BCS if I can. Is that beer also no longer craft?
    Don't get this message wrong, I know you are trying to say that it is the smaller brewer versus the Goliath. My point is that if Goliath starts brewing kick ass beer and sells it for cheaper, guess what, we the consumer win the battle.

    and then Longstaff from here: Eh, I don't think craft beer has anything to worry about here with this niche of a niche product. When they start making flavorful Lagers, IPA's, pale ales, porters, etc. have better control over freshness than craft brewers, and can offer a better value, then craft brewers need to start shaking in their boots.

    I realize these don't apply word for word to your parallel thought train, but close enough that this one could have been a part of one of those threads. No?
     
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