Brewery, Retail Store, or Both?

Exactly! There are so many new beers on the market these days that you couldn't possibly drink them all. Even if money was no issue, even if you had a liver the size of a gorilla's, there's just no way - and a lot of those beers are just as good or better than what you have to wait in line for.

Personally I've only waited in line for beer once and it was an accident, I just happened to show up on a release day not knowing it - and guess what, the beer wasn't that good!

I usually shop at retail stores just because I don't have the time to get around to different breweries, but even then I can't usually buy just one can or bottle of each, it's either 4-packs or 6-packs or growlers. I will go for crowlers though, but that's still a lot of beer just to try something, and crowlers at a lot of breweries are getting expensive! Beer to go should be cheaper than it is at the bar but it's not anymore. In fact, at one brewery near me a 32 oz. crowler costs more than just buying 2 pints yet people still do it.

 

I make a majority of my purchases direct at breweries. Not a ton of retail stores that are close to me. Occasionally I will pick up some Heady Topper or SoS at retail stores.

I also get a lot via trade partners.

Probably buy less than 5% from retail stores at this point. But if I lived somewhere less rural that would probably change. If I am going to drive 45 minutes to a beer store, I may as well drive an extra few minutes and hit up the breweries in that range.

 

In general, breweries don't want to compete with stores that carry their products.

 

Yep. This is why I buy almost all of my packaged beer at retail outlets. I can drive 15 minutes to a liquor store after work and pick up a mixed six pack of 6 different beers from 6 different breweries that I have been wanting to try. If they don't have what I want, there's another good store right on my way home that gives me the same ability. Used to be, thus only worked for shelf beers, but now we're seeing lots of one off brews from local or regional places that don't see a lot of canned distribution (read, mostly hazy IPAs).

I rarely buy four packs at breweries because, not only will they not sell singles, they won't even let you buy a mixed four pack! Sorry, but I'll take my business elsewhere, even if I do have to pay the retail markup. AZ Wilderness for example won't sell singles or mixed packs, and their beer rarely sees distribution outside of the brewery. Therefore I consume the majority of their beer on premise, and rarely take it home.

Also, to your first point, agreed. Phoenix is so big and traffic can be so bad that it doesn't make sense for me to run to the other side of town for a four pack of beer after work. I'd rather wait and see if it hits retail channels, which it usually does as long as the beer doesn't sell out in a week or so at the brewery. When it does hit my local store, I'll show up and buy one can.

 

Both, situationally dependent.

 

Not true for all, my local guys sell cheaper at the brewery than at retail. Retail is 20-30% more for me on same items. I guess it boils down to location and politics involved with local retail people.

 

Check out GCM in Gilbert, they are one of the few that get to carry AZ Wild due to long time friendship. Price is higher than brewery but they have to get a cut.

 

I roll with a mix of both. Like the above posts my main reason for retail is variety. I can go and snag numerous singles I want to sample and its a one stop deal. With breweries you have to drive all over town and also have get get 4 packs (No Mixed). I am fine with the breweries not doing mixed packs but it does suck because I enjoy more of a mix than same items over and over. I guess it all depends on my mood and what I am doing, I have to say on the brewery side I really enjoy the setting and music, fun to have a few and chat with staff on new stuff.
Cheers

 

A few years back I spoke w one of the folks at North Coast about the beer being more expensive there than in a local store. His reply was that they did not want to hurt the local retailers by underselling them. Makes perfect sense to me.

 

“Retail store,” no contest.

If you gather up every beer I ever bought from a brewery in a to-go container, that entire group would look like what I normally take home from a beer store in just one visit.

 

I personally find a few good liquor stores that know me from years of business. They can get some really coveted craft brew. Keep putting brewery trip off. Carton is actually in my county.

 

If I could buy every thing, especially IPAs, right from the brewery that would be great but its just not practical to do so. The pro of going right to the source is definitely freshness and well, who doesn't like going to breweries?

 

I never agreed with this from a business standpoint. If I owned a brewery I would want people to come into my brewery to eat, drink and spend money. If my price was cheaper than the local store it would result in more revenue to me, the owner. Making it fair for retail in my humble view is silly since it drives away sales from you to them. How much money do you lose from food, etc.
Anyway, I know its how it works but if I owned a place my price would be best in town, retail can figure it out on their own lol.
Cheers

 

5 years ago I’d say 99% retail. Now I’d say 80% brewery. The reasons are that:

1. In that time my local brewery (Other Half) has started selling canned beers, and at this point in time has scaled up production to the point that I don’t need to ever wait in line (as long as I’m ok with missing out on the odd very hyped collab; which I am) - which is important to me. Like you OP I rarely (I’d be able to say never if I hadn’t visited HF) wait in line for beer.

2. My favourite walking-distance beer store closed down.

3. I moved a bit further south in my neighborhood and my other favourite store is now twice the distance that OH is.

What’s important to me is being able to buy quality beer conveniently. And due to the above reasons that means mostly going to a brewery direct these days (listed all the reasons cos otherwise it would seem like I’m a haze ho haha)

 

I don’t own a brewery or a beer store. If you can sell everything you produce direct from the brewery, then I agree with you. If, best case, you can only sell say, a quarter of your output from the brewery, and are reliant on retail for the rest - then it makes absolute sense not to undercut them no?

 

You'd also be relying on the success of your product in the retail environment... which can be far more important to your business than what you make from selling bottled and canned beer from your own location.

EDIT - beat by "woody" @rozzom

 

That would only works for a small brewery that can sell most of what you brew in your brewery. Otherwise your main source of income will be from wholesaling it out to retailers who you would not want to anger by underselling them.
Late to the fight see post 17 & 18.

 

I always felt undercutting is a harsh word. If you make the product then in my own mind you should get the best price on it when it comes to sales. The reason I feel this way is that I want local folks to come to my brewery. If they can drive 3 min down the road to a store I lose that opportunity to sell them lunch, more beers, etc. I also feel that there is a mutual benefit to retail that is not always dollars, it is the draw of my beer? If I have beer people wait in line for that drives folks to your store, in turn they buy other items and you make money. So yes I understand not hurting retail because they are key to your success but there is a lot in play more than $$. I feel that the best solution is brewery has best price and retail is a few dollars more, in the end its your baby, you brewed it. Just my two cents.