Small Indiana craft breweries over pricing their product?

Drink what you want to drink.

Breweries that ship tens of thousands of barrels of product around the US can often do so at a lower price per ounce than those who are not making/shipping that volume of beer.

 

I didn't realize that Palm Reader is being distributed outside of Michigan (according to Founders website it is not)???

 

I have to agree with you. I haven't purchased anything from Burn 'Em, Bare Hands or any of the higher priced 18th St. I don't see the value in a $16 sixer of a Pale Ale. Some will say drink what you like, but I don't see how these guys are going to stay in business if canning/bottles leaving the brewery are just going to sit on shelves.

 

They don't sit on shelves though. That's the point. Brewers charge distributors (if they need one) a price that nets them an amount of money they feel is fair, while allowing the distributor room to charge their customer (retail) in the same manner. Retail, again, prices accordingly. That's simple economics. Responsible brewers and bottle shops do not price product at a level which inhibits the ability to move product. Remember: the retailer bought that beer. If they don't sell it, it's sunk cost.

Folks should pay what they consider a fair price for the product they're looking for. If OP thinks the local brewery's 6 pack is too expensive and chooses to buy some a tried and true sixer instead, that's fine. Someone else that's more into the local scene and maybe just got paid will come in and buy the local 6 pack later.

 

And thus the customer is getting ripped off on every beer.

 

The easy answer is they can, but it is really complex too. Sunday laws and liquor store laws are part of the reason too. The third tier is charging a much higher price. Easy example is Upland. I can buy a sixer of Upland in a Binny's in downtown Chicago cheaper than I can in Indianapolis 50 miles from the brewery. Beers available here are also higher priced vs. other states. Every time I go to Chicago or Ohio I tend to buy beer there. It's cheaper for the same beer I get here. You see why the liquor store lobby fights that so hard. Good beer comes at a premium, but our beer is always $1-$3 more per six and four pack vs. other states for the same beer.

Sun King also came in at a very high price point. $11 bucks for cream ale 7 years ago. People bought it like crazy and every brewer since then has followed suit. The market is supporting it though.

 

{shrug} I buy what I want, including the occasional can from local breweries likely falling within OP's concern. But I rarely buy a full sixer of local stuff at a price-point above similar brews from the bigger craft brewers. And the Upland I buy usually is at one of its outlets or as a 12-pack at Costco. Sun King is limited to $6 growlers and one of their special brews every once in a while.

Seems you can get a lot of beer for a price not too different from Ohio or Chicago if you are choosy and wait for the good deal. But very few brewers are selling at a volume that means the local craft can sell at Lagunitas or Sierra Nevada prices. Which may be why I buy a fair amount of each, particularly Sierra Nevada.

I wouldn't worry too much about it. Local is fine when it is worth it. But high prices require high quality, so you've got to be picky.

 

I don't think its a profit margin issue. The small craft guys know that they can't afford to charge more than $12 for a six pack, otherwise they lose to one of the more established brewers

I think you could say the same for Ballast Point Sculpin. Don't get me wrong I do think its a good beer, but at anywhere from $13-15, I don't see the value.

 

I've been wondering for a while now where these price points are coming from and how on earth they can/will be sustainable. The prices on the 22's especially (12ish dollars for some random pale ale?) is well beyond anything I'm willing to pay to try a new players offerings.

If people are buying them obviously that's one thing, and perhaps they're selling a lot better than I think they are from the bottles/cans I see sit around our local shops for a LONG time...and if it's working out for them, more power to them. I'm perfectly happy continuing to buy what I believe to be solid products more reasonable prices from well established breweries.

But I also want to buy local, want more Indiana breweries to grow and become successful, but I just don't see how some of these guys are going to survive given the prices we are seeing. It will work itself out I guess...

 

I hate the premise of not naming names here. This is akin to making the whole class stay late because of a few kids.

 

These three are the more notable breweries that have higher priced items, especially Bare Hands on their 4pks ($25/4pk of Honey Badger? hahaha).

I've also noticed that $13/14 is starting to be the 'norm' for Indiana breweries to price their 4pk/6pks (most of them being in the IPA realm) for some reason.

 

Particularly in NWI, the market is getting saturated by small breweries. FFF has pretty much proven they can barrel age feces and people will pretty much drop $50. They are immune to the market. Them aside, I think the market is going to start weeding out some of the overpriced weaklings. I am not prepared to name names, but I know there are a couple that are allegedly in trouble.

 

Palm Reader is available now, but in Michigan only

 

I have a pretty good understanding of retail margins and a retailer or distributor having to work through the process. It's been my field of work for almost 20 years. However what I don't understand is how these brewers feel like they are going to gain a loyal or at least consistent customer base. I picked up a six pack of Cascade Trip from Bare Hands and I think it was $15 or $16 bucks for a 4 pack of Talls. This is a 5.5% Pale Ale with Cascade as the hop. I chuckled when the price came up, told the manager I was going to pass and she said she didn't blame me. They called their corporate office to confirm pricing when it came in. With that said, I picked up a 4 pack of Talls of Hoosier Brewing Hoopa, which is a 5.5% Pale Ale for $10 today and it's pretty damn good.

 

Did I not make that point well enough?

 

So you hate the premise of not naming names but given the chance you won't call anyone out? 18th Street, St John Malt Brothers....

 

you mean like the countless bombers of devils trumpet and St John Malt Bros at the local liquor store collecting dust? The worst offender is 18th Street. their prices are pretty insane, other than their canned pales and IPAs when purchased at the brewery.

 

I didn't open the vague thread, I just added.

 

As long as we are naming names, St John Malt Bros might be the worst brewery in NWI.