2023 will be a tough year for craft breweries?

Discussion in 'Beer Talk' started by JackHorzempa, Jun 12, 2023.

?

Have you been buying more economically priced beers this year?

  1. Yes

    56 vote(s)
    42.4%
  2. No

    76 vote(s)
    57.6%
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  1. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
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    “Anheuser-Busch InBev and Molson Coors Beverage are set to gain market share from craft beer makers in the United States this year as cost-conscious consumers are opting for cheaper six-packs, according to analysts and industry experts.”

    "Most cost-conscious consumers are still buying the same volume of beer, but in the less expensive category of beer," said Neil Reid, professor of geography at the University of Toledo, who has researched the beer industry.”

    https://www.yahoo.com/finance/news/ab-inbev-molson-coors-dent-100002008.html

    It will be interesting to read the statistics that the Brewers Association annually produces for 2023 to see how much craft breweries were impacted due to inflation.

    Cheers!

    P.S. I recently purchased a 12-pack of Yuengling Lord Chesterfield for $13.99. I enjoy drinking this beer in the summer.
     
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  2. jageraholic

    jageraholic Pooh-Bah (1,632) Sep 16, 2009 Massachusetts
    Pooh-Bah Trader

    I voted no. I think my buying habits have been fairly consistent over the years with a mix of cheaper craft 6 and 12 packs mixed with the more expensive 4 packs of 16oz cans. I still avoid the cheapest beers (macro) as well as the most expensive 4 packs (over $18 is essentially a no go for me most occasions). I dont think they'll change this year as costs seem to be coming down a bit (bought a dozen eggs for 1.40 last week!) and I've been fortunate in my career.
     
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  3. LesDewitt4beer

    LesDewitt4beer Grand High Pooh-Bah (6,315) Jan 25, 2021 Minnesota
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    Sort of echoing the 2nd paragraph, my budget hasn't changed but beer prices have shot up. So I'm left with feeling the need to get the most out of less expensive beer. My last 12 pk of SN Pale Ale was $13.99. Quite acceptable.
     
  4. Peach63

    Peach63 Pooh-Bah (2,442) Jul 17, 2019 New York
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    What the heck is "economically priced beers" I'm too stupid to buy cheap beer. :smiley:
     
  5. LeRose

    LeRose Grand Pooh-Bah (4,423) Nov 24, 2011 Massachusetts
    BA4LYFE Society Pooh-Bah Trader

    I voted no. Other than vacations, we typically drink two or three beers a week each, so Iwe don't worry too much about the beer budget. Not to say I don't feel a bit guilty when I buy a $16 Allagash wild ale, but I kinda forget about that part when I enjoy it.

    So it's no for now, but we will be retiring soon and that will undoubtedly change the scenario. Then I may have time and can create space to home brew again, but if we drink at the rate we do now, have to wonder if its truly worth it.

    My main concern, which is at least loosely related, is buying too many at once which leads to a stockpile. Even if we buy six and drink four, thats two sitting un-consumed and it doesn't take long to fill the cupboard. I've gotten better. Drank a few, dumped a few, and most of what's left stashed in the house are high ABV stouts and wild ales/sours which hopefully don't suffer much before I get to them. I'm as guilty of pursuing the "new shiney"as anybody!
     
  6. JBogan

    JBogan Pooh-Bah (1,871) Jul 15, 2007 California
    Society Pooh-Bah Trader

    I voted yes. For an example recently there was a pils I'd heard good things about here and wanted to try. When I saw it at one of the beer stores near my work it was priced $22 for a 4 pack. I passed on it, and instead purchased a 12 pack of Fan Favorites sampler from Sierra Nevada for $18. I enjoyed each and every one of the beers in that 12 pack, and felt it was a good bargain.

    Then a few days ago I noticed that the beer store with the $22 pils had broken up the 4 packs and started selling singles. Perhaps I wasn't the only one balking at paying that much for a 4 pack. I ended up purchasing a single, it was a very good beer indeed, but after drinking it I asked myself if I had purchased a 4 pack for $22 would I have felt that I had gotten a bargain and the answer was no.

    It's a question that I've been asking myself more and more lately, and one that plays a larger and larger determining factor in what beer I buy these days.
     
  7. mrmattosgood

    mrmattosgood Maven (1,301) Nov 6, 2010 Canada (BC)

    Yes. "Craft beer" has begun to price me out.

    There is still great beer for a great price on the shelf that falls under that stupid term. Allagash comes to mind. Even Sacred Profane with their $25 12-packs is far better than $20 four-packs of homogenous NEIPA. I found Urquell for $12.99 12-packs. Pacifico and Modelo are $16-17 for 12.

    The BS 4-packs for $15+ aren't coming home with me anymore and they haven't for a long time (for the most part).
     
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  8. jonphisher

    jonphisher Grand Pooh-Bah (3,850) Aug 9, 2015 New Jersey
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    I voted yes, I haven't purchased a premium priced beer in quite some time now, with only maybe one or two exceptions. This is both to save money but more just personal choice and decision, "you live and you learn" type deal and shift in purchasing over the past few years.

    I stopped going out of my way for beer, I go to a total of 3 stores these days and that is it. The other thing those beers, you have to seek or pay extra for are never worth the extra money they cost.

    I will use premium price lagers as an example they usually run $15-16 dollars around here. I never find them to bring that much extra enjoyment to me, to the contrary the cheaper bigger regional breweries' examples are better made in my opinion. I will admit though the one thing those smaller premium places have is unique variety, that does bring the once in a while exception purchase, but those are few and far in between now.

    I've wondered if others are shifting as well and if this will result in some of these pricier breweries struggling or finding new means of distro, which we have seen recently.
     
  9. jonphisher

    jonphisher Grand Pooh-Bah (3,850) Aug 9, 2015 New Jersey
    Society Pooh-Bah Trader

    That is not bad for a 12 pack from them, I would've assumed it would be a lot more than that given the smaller brewery and limited distro, from what I've read. Still more than your average, for here ~$18-20, but I would purchase their beer to try at that price if I came across it.
     
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  10. mrmattosgood

    mrmattosgood Maven (1,301) Nov 6, 2010 Canada (BC)

    $2/beer is how I calculate it. But, honestly, you've got an extremely well-crafted beer made from specially-sourced raw materials that's triple-decocted, open fermentation, horizontally-lagered by two of the best brewers in the country. Think of the time and money it takes to make that beer (I'm honestly really eager to investigate why these beers don't cost more than a NEIPA based on time alone). It seems like a bargain at $25.
     
  11. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
    Society Pooh-Bah

    Last weekend I attended the Logjammin’ lager beer festival in Philly. One of the breweries in attendance was New Trail Brewing and they had cans of their Crisp Lager. It was late in the event (read: I already had lots of beers at this point). While drinking that pour I spoke to the New Trail guy. I have seen cases (24 cans) of New Trail at my local beer stores for $24.99 (an equivalent of $12.50 for a 12-pack) but I told him I would like to buy a six-pack first to see if I like this beer. He responded they had no plans to package this beer as a six-pack. I thought this was a ‘different’ marketing decision.

    I wonder if other craft breweries will decide to only package their economical brands in the case (i.e., 24 cans/bottles) format?

    Cheers!

    [​IMG]
     
  12. mrmattosgood

    mrmattosgood Maven (1,301) Nov 6, 2010 Canada (BC)

    I just think we're going to see a ton of brewery closings. From conversations with people in the industry, it's beginning to look untenable. Very few places are making on premise money these days and if your distribution output isn't where it needs to be (i.e. you can't make enough to satisfy demand), you're going to be unable to pay your bills.
     
  13. bubseymour

    bubseymour Grand Pooh-Bah (4,800) Oct 30, 2010 Maryland
    Pooh-Bah Trader

    Mark me down for the same (No plus same explanation as @jageraholic ). However my new beers rated and reviewed is dropping. Less bottle shares, less flights and less mixed singles with more same 4 packs, mixed 12 packs and 1/2 pours or full pours of just 1-2 beers at breweries.
     
  14. Harrison8

    Harrison8 Grand High Pooh-Bah (6,285) Dec 6, 2015 Missouri
    Pooh-Bah Trader

    Asking this in summer may skew my answer, as I do tend to shift to things like Sierra Nevada's Pale Ale or Coors Banquet during the hot months.

    Over the past twelve to eighteen months, I have been reducing the number of local breweries I visit and sticking to the ones that I think make the best product. Nearly all my craft beer money these days is funneling into the handful of local craft breweries I really enjoy. This behavior was already taking shape before the big hit of inflation as an subconscious decision to save more money, but continue enjoying the products and people I really enjoy.

    Not to say I don't buy new stuff or branch out from the three local breweries I really enjoy, but it happens much less frequently than it has a year or two ago.
     
  15. jonphisher

    jonphisher Grand Pooh-Bah (3,850) Aug 9, 2015 New Jersey
    Society Pooh-Bah Trader

    I assumed this may be the case, thank you sharing. We have seen a slew of mergers here in the mid-atlantic in the past few months. Now that our forums are split again maybe you had not seen but maybe you have given your occupation:

    1. Cape May acquired Flying Fish
    2. FX Matt acquired Flying Dog
    3. River Horse acquired Duclaw

    Wonder if we'll see more of this happening, given what you have said.
     
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  16. Harrison8

    Harrison8 Grand High Pooh-Bah (6,285) Dec 6, 2015 Missouri
    Pooh-Bah Trader

    Kansas Territory Brewing sells Life Coach in a number of formats, but notably in a 30 can pack. IIRC, it's priced similar to BMC brands. Unlike Crisp Lager, it is also available in smaller packs (again, similar formats to BMC.)

    [​IMG]

    The intent is to be a competitor to BMC options on shelves, with Life Coach being a similar price point, but produced by an independent craft brewery. It's been around for awhile (2019?), so not a direct response to inflation. I'd be curious to know how Life Coach sales are doing these days.
     
  17. ramseye4

    ramseye4 Maven (1,392) May 14, 2010 Virginia

    I’ve always gravitated towards a compromise between price and quality, but it’s become more evident lately with the rise of 15 dollar 4 packs.

    unless your beer is truly exceptional im not paying that when I can get a six pack of zombie dust which is probably better than the beer in the 4 pack for 13 bucks, or a 12 pack of SN for 18.

    I don’t blame people for buying the four packs at all, but just me personally having three kids my disposable income is more limited and I have to look harder at the bang for the buck
     
  18. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
    Society Pooh-Bah

    The post by @ramseye4 above (i.e., “with the rise of 15 dollar 4 packs”) reminded me of:

    About a month ago I was beer shopping at my local Retail Beer Distributor I went I into the cold room and noticed there were several four-packs of Heady Topper (for around 20 bucks). I actually pulled one four-pack off the shelf with the intention of buying one but I put it back with the thought: let’s shop around first. I saw, for the first time ever, there were 12-packs (12 ounce cans) of Fiddlehead IPA (we only got four packs of Fiddlehead before). That 12-pack was 20 bucks so that is what I purchased instead of the Heady Topper. I was very happy here!

    Cheers!
     
  19. DavyJonesXXX

    DavyJonesXXX Pooh-Bah (2,848) Aug 6, 2021 Texas
    Pooh-Bah Trader

    Iv been buying more budget friendly options in-between the more expensive brews but that's nothing new. Higher $ beer is still moving at a quick rate at all my favorite breweries and bottle shops so I doubt they'll have any problems unless something stupid happens on the world circus that will impact the beer market.
     
  20. Resistance88

    Resistance88 Grand Pooh-Bah (3,462) Apr 9, 2015 California
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    4 packs surpassing 20 dollars may as well not even exist in my world.
    1) I've been drinkin more Wild Turkey 101

    2) I don't really visit the bottle shops i would be excited for anymore.

    3) Not many breweries making anything i care for lately.

    4) Boutique Breweries needa go away
     
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